Title 120 | Chapter 001 | Regulation 075


120 KAR 1:075. Attorney fee discount.

Section 1.

Employer's Calculation. For injuries occurring and disabilities arising on or after April 4, 1994, and prior to December 12, 1996, the employer or the insurance carrier making payment on behalf of the employer shall be entitled to credit for the lump sum value of any attorney's fee paid. The following formula shall be used:

(1)

Employer weeks awarded - weeks paid = R weeks.

(2)

R weeks = P weeks (present worth).

(3)

Employer share of attorney fee divided by P weeks = Y rate.

(4)

Weekly rate -Y rate = Employer reduced rate.

Section 2.

Special Fund Credit. The Education and Labor Cabinet, Department of Workers' Claims Division of Workers' Compensation Funds shall calculate its lump sum credit for attorney's fees in cases involving injuries occurring and disabilities arising on or after April 4, 1994, and prior to December 12, 1996, as follows:

(1)

Employer weeks awarded - weeks paid = R weeks.

(2)

R weeks = P weeks (present worth).

(3)

Total weeks awarded - weeks paid = total remaining (TR) weeks.

(4)

TR weeks = PW weeks (present worth).

(5)

PW weeks - P weeks = SF (Special Fund) weeks.

(6)

SF share of attorney fee divided by SF weeks = SF rate reduction.

Section 3.

Procedure. The calculations set forth in Sections 1 and 2 of this administrative regulation shall be completed by the Division of Workers' Compensation Funds and the results forwarded to the other payers, as well as to the plaintiff, when the plaintiff elects to repay an attorney's fee through the reduction of weekly benefits. Any disagreements as to the application of the formula shall be resolved by the administrative law judge upon motion by any party.

HISTORY: (120 KAR 001:075. 21 Ky.R. 2345; 2709; eff. 4-20-1995; TAm eff. 8-9-2007; 46 Ky.R. 3013; 47 Ky.R. 544; eff. 12-1-2020; TAm eff. 10-31-2022; Recodified from 803 KAR 025:075; eff. 6-29-2026.)

7-Year Expiration: 12/1/2027


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