2. Worker's Compensation
3. Insurance Letters
4. 534

Insurance Letter 534

Purpose

To inform claims handling offices about Wisconsin Worker's Compensation Act, Chapter 102, Wis. Stats. law changes effective April 10, 2022, relating to changes in compensation rate, the method in which the average weekly wage is computed for part-time employees, authorization for employees to have an observer present during directed medical examinations, employer subjectivity, and other changes.

Background

Changes to the Wisconsin Worker's Compensation Act, Chapter 102, Wis. Stats., became effective April 10, 2022. As a result of these changes, certain rates and benefits were increased. Please reference Insurance Letter 533 for additional rate changes that took effect on January 1, 2022

The maximum weekly indemnity rate for permanent partial disability increased to $415 for injuries occurring on and after April 10, 2022 and will increase to $430 for injuries occurring on and after January 1, 2023.

Sections 102.11(1)(am) & (f)1., Wis. Stats., were repealed and § 102.11(1)(ap), Wis. Stats., was created to eliminate wage expansion for employees working part of a class. Wages will be expanded only when the injured worker is employed by another employer or worked less than full-time for less than 12 months before the date of injury. Wage expansion may be rebutted when there is evidence to show an employee chose to restrict employment to part-time. This applies to injuries occurring on and after 04/10/2022. Reference Insurance Letter 535 for detailed information regarding changes to § 102.11, Wis. Stats.

Section 102.13(1)(b), Wis. Stats., was amended to allow an employee who appears at an examination directed by employers and worker's compensation insurance carriers to have an observer present at the examination.

The definition of "employer" is amended to clarify that every person who at any time employs three (3) or more employees in Wisconsin is subject to ch. 102, Wis. Stats., (Wisconsin Worker's Compensation Act) on the day on which the person employs three (3) or more employees in this state. §§ 102.04(1)(b)1. & 2., Wis. Stats.

Farmers will have the same statutory authority to withdraw from subjectivity to ch. 102, Wis. Stats., as other employers who have had no employee in the previous two (2) years. § 102.05(3), Wis. Stats.

Action Requested

Please inform all claims handlers of these changes.

Inquiries

If you have questions, please contact us at (608) 266-1340 and ask to speak to a wage analyst or the Claims Services Section Supervisor.

If you have any questions, please contact us at (608) 266-1340.

Reference

Refer to: 2021 Wisconsin Act 232 for a text of the law changes.

Refer to: 2021 Wisconsin Act 232 Plain Language Summary for complete summary of the changes.

Refer to: Insurance Letter 535 for specific details on computing the average weekly wage for part-time employees.