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Kentucky Workers' Compensation Requirements

Required from your 1st employee

✓ Verified 2026-09-08 Source: KY Education & Labor Cabinet - Workers' Compensation ↗ See something wrong? Tell us →

At a glance

1st

employee threshold (general)

construction threshold

Private market

buy from any carrier

KY Education & Labor Cabinet - Workers' Compensation

official source (verified 2026-09-08)

The details

1+ employees (ELC official FAQ); limited exemptions; officers may exempt in some structures.

If a claim happens: benefit amounts in Kentucky

$1,277.99/wk max weekly wage-replacement benefit (66 2/3% of preinjury wage)

Waiting period: 7 days · Duration: TTD capped at 520 weeks (KY statutorily); life for certain total disabilities

2026 calendar year: max weekly indemnity for total disability $1,277.99 / min $232.36 (official KY Education & Labor Cabinet benefit schedule) Medical: No dollar cap — reasonable and necessary care for the injury. Death: Dependents up to 66-2/3% AWW capped at state max; burial $10,000+ (see schedule). Rate cycle: adjusts 07/01 each year. All states' benefit rates →

FAQ

Do I need workers' compensation in Kentucky?

Yes — Kentucky requires coverage as soon as you hire your first employee (full-time or part-time).

What about construction businesses in Kentucky?

Construction businesses follow the same 1 threshold. See details below for industry nuances.

What if I don't carry required coverage in Kentucky?

Penalties vary by state and can include per-employee per-day fines, stop-work orders, and personal liability for injury claims. Check the official source below for Kentucky's current enforcement posture.

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Official source: KY Education & Labor Cabinet - Workers' Compensation · Verified 2026-09-08 (official) · Compare all states · Construction rules · Farm rules