{"data":{"id":"us-ky/krs-342.990","jurisdiction":"us-ky","citation":"KRS 342.990","heading":"Penalties -- Restitution.","body":"(1) The commissioner shall initiate enforcement of civil and criminal penalties imposed\nin this section.\n(2) When the commissioner receives information that he or she deems sufficient to\ndetermine that a violation of this chapter has occurred, he or she shall seek civil\npenalties pursuant to subsections (3) to (7) of this section, criminal penalties\npursuant to subsections (8) and (9) of this section, or both.\n(3) The commissioner shall initiate enforcement of a civil penalty by simultaneously\nciting the appropriate party for the offense and stating the civil penalty to be paid.\n(4) If, within fifteen (15) working days from the receipt of the citation, a cited party\nfails to notify the commissioner that he or she intends to contest the citation, then\nthe citation shall be deemed final.\n(5) If a cited party notifies the commissioner that he or she intends to challenge a\ncitation issued under this section, the commissioner shall cause the matter to be\nheard as soon as practicable by an administrative law judge and in accordance with\nthe provisions of KRS Chapter 13B. The burden of proof shall be upon the attorney\nrepresenting the commissioner to prove the offense stated in the citation by a\npreponderance of the evidence. The parties shall stipulate to uncontested fa cts and\nissues prior to the hearing before the administrative law judge. The administrative\nlaw judge shall issue a ruling within sixty (60) days following the hearing.\n(6) A party may appeal the ruling of the administrative law judge to the Franklin Circuit\nCourt in conformity with KRS 13B.140.\n(7) The following civil penalties shall be applicable for violations of particular\nprovisions of this chapter:\n(a) Any employer, insurer, or payment obligor subject to this chapter who fails to\nmake a report required by KRS 342.038 within fifteen (15) days from the date\nit was due, shall be fined not less than one hundred dollars ($100) nor more\nthan one thousand dollars ($1,000) for each offense;\n(b) Any employer, insurer, or payment obligor acting on behalf of an e mployer\nwho fails to make timely payment of a statement for services under KRS\n342.020(4) without having reasonable grounds to delay payment may be fined\nnot less than one hundred dollars ($100) nor more than one thousand dollars\n($1,000) for each offense;\n(c) Any person who violates KRS 342.020(12), 342.035(2), 342.040, 342.340,\n342.400, 342.420, or 342.630 shall be fined not less than one hundred dollars\n($100) nor more than one thousand dollars ($1,000) for each offense. With\nrespect to employers who fai l to maintain workers' compensation insurance\ncoverage on their employees, each employee of the employer and each day of\nviolation shall constitute a separate offense. With respect to KRS 342.040, any\nemployer's insurance carrier or other party responsible  for the payment of\nworkers' compensation benefits shall be fined for failure to notify the\ncommissioner of a failure to make payments when due if a report indicating\nthe reason payment of income benefits did not commence within twenty -one\n(21) days of the  date the employer was notified of an alleged work -related\ninjury or disease is not filed with the commissioner within twenty -one (21)\ndays of the date the employer received notice, and if the employee has not\nreturned to work within that period of time. The date of notice indicated in the\nreport filed with the department pursuant to KRS 342.038(1), shall raise a\nrebuttable presumption of the date on which the employer received notice;\n(d) Any person who violates any of the provisions of KRS 342.165(2), 342 .335,\n342.395, 342.460, 342.465, or 342.470 shall be fined not less than two\nhundred dollars ($200) nor more than two thousand dollars ($2,000) for each\noffense. With respect to KRS 342.395, each required notice of rejection form\nexecuted by an employee or  potential employee of an employer shall\nconstitute a separate offense;\n(e) Any person who fails to comply with the data reporting provisions of\nadministrative regulations promulgated by the commissioner pursuant to KRS\n342.039, or with utilization review and medical bill audit administrative\nregulations promulgated pursuant to KRS 342.035(5), shall be fined not less\nthan one hundred dollars ($100) nor more than one thousand dollars ($1,000)\nfor each violation;\n(f) Except as provided in paragraph (g) of thi s subsection, a person who violates\nany of the provisions of KRS 342.335(1) or (2) where the claim,\ncompensation, benefit, or money referred to in KRS 342.335(1) or (2) is less\nthan or equal to three hundred dollars ($300) shall be fined per occurrence not\nmore than one thousand dollars ($1,000) per individual nor five thousand\ndollars ($5,000) per corporation, or twice the amount of gain received as a\nresult of the violation, whichever is greater;\n(g) Any person who violates any of the provisions of KRS 34 2.335(1) or (2)\nwhere the claim, compensation, benefit, or money referred to in KRS\n342.335(1) or (2) exceeds three hundred dollars ($300) shall be fined per\noccurrence not more than five thousand dollars ($5,000) per individual nor ten\nthousand dollars ($ 10,000) per corporation, or twice the amount of gain\nreceived as a result of the violation, whichever is greater;\n(h) Any person who violates the employee leasing provision of this chapter shall\nbe fined not less than five hundred dollars ($500) nor more than five thousand\ndollars ($5,000) for each violation;\n(i) Any violation of the provisions of this chapter relating to self -insureds shall\nconstitute grounds for decertification of such self -insured, a fine of not less\nthan five hundred dollars ($500) nor more than five thousand dollars ($5,000)\nper occurrence, or both; and\n(j) Actions to collect the civil penalties imposed under this subsection shall be\ninstituted in the Franklin District Court and the Franklin Circuit Court.\n(8) The co mmissioner shall initiate enforcement of a criminal penalty by causing a\ncomplaint to be filed with the appropriate local prosecutor. If the prosecutor fails to\nact on the violation within twenty (20) days following the filing of the complaint,\nthe commissioner shall certify the inaction by the local prosecutor to the Attorney\nGeneral who shall initiate proceedings to prosecute the violation. The provisions of\nKRS 15.715 shall not apply to this section.\n(9) The following criminal penalties shall be applicab le for violations of particular\nprovisions of this chapter:\n(a) Any person who violates KRS 342.020(12), 342.035(2), 342.040, 342.400,\n342.420, or 342.630, shall, for each offense, be fined not less than one\nhundred dollars ($100) nor more than one thousan d dollars ($1,000), or\nimprisoned for not less than thirty (30) days nor more than one hundred eighty\n(180) days, or both;\n(b) Any person who violates any of the provisions of KRS 342.165(2), 342.335,\n342.460, 342.465, or 342.470 shall, for each offense, b e fined not less than\ntwo hundred dollars ($200) nor more than two thousand dollars ($2,000), or\nimprisoned for not less than thirty (30) days nor more than one hundred and\neighty (180) days, or both; and\n(c) Notwithstanding any other provisions of this chapter to the contrary, when any\nemployer, insurance carrier, or individual self -insured fails to comply with\nthis chapter for which a penalty is provided in subparagraphs (7), (8), and (9)\nabove, such person, if the person is an owner in the case of a sole\nproprietorship, a partner in the case of a partnership, a principal in the case of\na limited liability company, or a corporate officer in the case of a corporation,\nwho knowingly authorized, ordered, or carried out the violation, failure, or\nrefusal shall be personally and individually liable, both jointly and severally,\nfor the penalties imposed in the above cited subparagraphs. Neither the\ndissolution nor withdrawal of the corporation, partnership, or other entity from\nthe state, nor the cessation of hol ding status as a proprietor, partner, principal,\nor officer shall discharge the foregoing liability of any person.\n(10) Fines paid pursuant to KRS 342.267 and subsections (7) and (9) of this section shall\nbe paid into the self-insurance fund established in KRS 342.920.\n(11) In addition to the penalties provided in this section, the commissioner and any\nadministrative law judge or court of jurisdiction may order restitution of a benefit\nsecured through conduct proscribed by this chapter.","path":["KRS Chapter 342"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=52607","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:33Z","sha256":"16418c6bb6e017b613834fdcbb48c90a7fc847b5dfee52b10ddc7458aa20a63a","source_id":"us-ky","stale":false,"prev":"us-ky/krs-342.920","next":"us-ky/krs-343.010"},"notice":"GroundRules: Original legal text. Not legal advice."}