Chapter DWD 80

DWD 80.49(7)(e) (e) The self-insured employer or insurance carrier is liable for the reasonable and necessary cost of the specialist’s services and the reasonable cost of the training program recommended by the specialist provided that the employee and the specialist substantially comply with the requirements in subs. (8) to (11). Except with the prior consent of the self-insured employer or insurance carrier, the reasonable cost of any specialist’s services to the employee shall not exceed $1,000 for each date of injury as defined in s. 102.01 (2) (g), Stats. Effective on the first day of January each year after 1995, the department shall adjust the $1,000 limit by the same percentage change as the average annual percentage change in the U.S. consumer price index for all urban consumers, U.S. city average, as determined by the U.S. department of labor, for the 12 months ending on September 30 of the prior year. The department shall notify insurance carriers, self-insured employers and specialists likely to be affected by the annual change in the limit.

DWD 80.49 Note Note: To obtain a copy of all forms under this subsection, contact the Department of Workforce Development, 201 East Washington Avenue, P.O. Box 7901, Madison, Wisconsin, 53707-7901 or access forms online at http://www.dwd.wisconsin.gov.

DWD 80.49(8) (8) Employer’s duties upon receipt of permanent restrictions. Upon receiving notice that the division of vocational rehabilitation cannot serve the employee under s. 102.61 (1m), Stats., the employee or a person authorized to act on the employee’s behalf shall provide the employer with a written report from a physician, podiatrist, psychologist or chiropractor stating the employee’s permanent work restrictions. Within 60 days of receiving the practitioner’s work restrictions, the employer shall provide to the employee or the employee’s authorized representative, in writing:

DWD 80.49(8)(a) (a) An offer of suitable employment for the employee;

DWD 80.49(8)(b) (b) A statement that the employer has no suitable employment available for the employee; or,

DWD 80.49(8)(c) (c) A medical report from a physician, podiatrist, psychologist or chiropractor showing that the permanent work restrictions provided by the employee’s practitioner are in dispute, and medical or vocational documentation that the difference in work restrictions would materially affect either the employer’s ability to provide suitable employment or a specialist’s ability to recommend a retraining program. If after 30 days the employee and employer cannot resolve the dispute, either party may request a hearing before the division of hearings and appeals to determine the employee’s work restrictions. Within 30 days after the division of hearings and appeals determines the restrictions, the employer shall provide the written notice required in par. (a) or (b).

DWD 80.49(9) (9) 90-day placement effort.

DWD 80.49(9)(a) (a) If the employer fails to respond as required in sub. (8), it shall be conclusively presumed for the purposes of s. 102.61 (1m), Stats., that the employer has no suitable employment available and the employee is entitled to receive vocational rehabilitation services from a specialist.

DWD 80.49(9)(b) (b) If the employer does not make a written offer of suitable employment under sub. (8), the specialist shall determine whether there is suitable employment available for the employee in the general labor market without retraining. If suitable employment is reasonably likely to be available, the specialist shall attempt to place the employee in alternative suitable employment for at least 90 days prior to developing a retraining program. The employee shall cooperate fully in the specialist’s placement efforts and may not refuse an offer of suitable employment made within the 90-day period. In determining whether the offer is suitable the department shall consider age, education, training, previous work experience, previous earnings, present occupation and earnings, travel distance, goals of the employee, and the extent to which it would restore the employee’s preinjury earning capacity and potential.

DWD 80.49(9)(c) (c) If the employee is placed in or refuses to accept suitable employment, the self-insured employer or insurance carrier is not liable for any further costs of the specialist’s services unless that suitable employment ends within the statute of limitations in s. 102.17 (4), Stats.

DWD 80.49(10) (10) Retraining.

DWD 80.49(10)(a) (a) If, after reasonably diligent effort by the employee and the specialist, the employee does not obtain suitable employment, then there is a rebuttable presumption that the employee needs retraining. The presumption is rebuttable by evidence that:

DWD 80.49(10)(a)1. 1. No retraining program can help restore as nearly as possible the employee’s wage earning capacity;

DWD 80.49(10)(a)2. 2. The employee or the specialist did not make a reasonably diligent effort under sub. (9) (b) to obtain suitable employment for the employee; or

DWD 80.49(10)(a)3. 3. The employee or specialist withheld or misrepresented highly material facts.

DWD 80.49(10)(b) (b) A retraining program of 80 weeks or less is presumed to be reasonable and the employer shall pay the cost of the program, mileage and maintenance benefits, and temporary total disability benefits.

DWD 80.49(10)(c) (c) A retraining program more than 80 weeks may be reasonable, but there is no presumption that training over 80 weeks is required. Extension of vocational rehabilitation benefits beyond 80 weeks may not be authorized if the primary purpose of further training is to improve upon preinjury earning capacity rather than restoring it.

DWD 80.49(10)(d) (d) If the retraining program developed by the specialist is for more than 80 weeks, the self-insured employer or the insurance carrier may offer an alternative retraining program which will restore the employee’s preinjury earning capacity in less time than the retraining program developed by the specialist. An employee may not refuse a self-insured employer’s or insurance carrier’s timely, good-faith, written offer of an alternative retraining program without reasonable cause.

DWD 80.49(11) (11) Specialist’s services.

DWD 80.49(11)(a) (a) A specialist shall develop an IPE for a retraining program for the employee, and may amend it to achieve suitable employment.

DWD 80.49(11)(b) (b) A specialist shall make periodic written reports at reasonable intervals to the employee, employer and insurance carrier describing vocational rehabilitation activities which have occurred during that interval.

DWD 80.49(11)(c) (c) Within a reasonable period of time after receiving a written request from an employee, employer, worker’s compensation insurance carrier or department or their representatives, a specialist shall provide that person with any information or written material reasonably related to the specialist’s services to the employee undertaken as a result of any injury for which the employee claims compensation.

DWD 80.49 History History: Cr. Register, September, 1982, No. 321, eff. 10-1-82; emerg. am. (2), r. (3), renum. (4) to be (3), cr. (4) to (11), eff. 11-7-94, am. (2), r. (3), renum. (3) to be (4) and am., cr. (4) to (11), Register, April, 1995, No. 472, eff. 5-1-95; corrections in (2) and (5) (a) 2. made under s. 13.93 (2m) (b) 7., Stats., Register, July, 1996, No. 487; eff. 8-1-96; corrections made under s. 13.93 (2m) (b) 6., Stats., Register, December, 1997, No. 504; CR 07-019: am. (2), (7) (b) and (8), Register October 2007 No. 622, eff. 11-1-07; correction in (6) (b) 1. made under s. 13.92 (4) (b) 6., Stats., Register February 2012 No. 674; CR 15-030: am. (4) (intro.), (a), (6) (b) 1. to 3., (f), (11) (a) Register October 2015 No. 718, eff. 11-1-15; correction in (8) (c) under s. 13.92 (4) (b) 6., 35.17, Stats., Register May 2018 No. 749; EmR2212: emerg. am. (5) (a) 2., eff. 10-12-22; CR 22-072: am. (5) (a) 2., Register May 2023 No. 809, eff. 6-1-23.

DWD 80.50 DWD 80.50 Computation of permanent disabilities.

DWD 80.50(1) (1) In computing permanent partial disabilities, the number of weeks attributable to more distal disabilities shall be deducted from the number of weeks in the schedule for more proximal disabilities before applying the percentage of disability for the more proximal injury, except that:

DWD 80.50(1)(a) (a) Such a deduction shall not include multiple injury factors under s. 102.53, Stats., and the dominant hand increase under s. 102.54, Stats.; and

DWD 80.50(1)(b) (b) Such a deduction shall include preexisting disabilities.

DWD 80.50(2) (2) The number of weeks attributable to scheduled disabilities shall be deducted from 1,000 weeks before computing the number of weeks due for a non-scheduled disability resulting from the same injury. This deduction shall not include multiple injury factors under s. 102.53, Stats., and the dominant hand increase under s. 102.54, Stats.

DWD 80.50(3) (3) Multiple injury factors under s. 102.53, Stats., and the dominant hand increase under s. 102.54, Stats., do not apply to compensation for disfigurement under s. 102.56, Stats.

DWD 80.50 History History: Cr. Register, August, 1981, No. 308, eff. 9-1-81; r. and recr. Register, September, 1982, No. 321, eff. 10-1-82; CR 07-019: am. (1) (a), (2) and (3), Register October 2007 No. 622, eff. 11-1-07.

DWD 80.51 DWD 80.51 Computation of weekly wage. Pursuant to s. 102.11, Stats.

DWD 80.51(1) (1) In determining daily earnings, if the number of hours a full-time employee worked had been either decreased or increased for a period of at least 90 total days prior to the injury, then this revised schedule worked during those 90 days shall be considered to be normal full-time employment.

DWD 80.51(2) (2) When an employee furnishes his or her truck to the employer and is paid by the employer in gross to include operating expenses, one-third of that gross sum is considered as wages except as a showing is made to the contrary.

DWD 80.51(3) (3) Prisoners injured in prison industries are considered to be earning the maximum average weekly earnings under the provisions of s. 102.11, Stats., except as a showing is made to the contrary.

DWD 80.51(4) (4) The 24-hour minimum workweek under s. 102.11 (1) (f) 1., 2019 Stats., does not apply to a part-time employee unless the employee is a member of a regularly scheduled class of part-time employees. In all other cases part-time employment is on the basis of normal full-time employment in such job. However, this subsection does not apply to part-time employees described in s. 102.11 (1) (f), Stats., who restrict availability on the labor market. As to the employees so described, those wages will be expanded to the normal part-time or full-time wages unless the employer or insurance company complies with s. DWD 80.02 (2) (d). This subsection does not apply to employees who are injured on or after April 10, 2022.

DWD 80.51(5) (5) Computation of the weekly wage for an employee who is injured while employed at part-time employment shall be made pursuant to s. 102.11 (1) (ap), Stats. This subsection applies to employees who are injured on or after April 10, 2022.

DWD 80.51 History History: Cr. Register, September, 1982, No. 321, eff. 10-1-82; CR 07-019: am. (4), Register October 2007 No. 622, eff. 11-1-07; EmR2212: emerg. am. (4), cr. (5), eff. 10-15-22; CR 22-072: am. (4), cr. (5) Register May 2023 No. 809., eff. 6-1-23.

DWD 80.52 DWD 80.52 Payment of permanent disability where the degree of permanency is disputed. Where injury is conceded, but the employer or the employer’s insurer disputes the extent of permanent disability, payment of permanent disability shall begin with the later of sub. (1) or (2):

DWD 80.52(1) (1) Within 30 days of a report that provides the permanent disability rating, in the amount of the permanency set forth in the report; or

DWD 80.52(2) (2) Within 30 days after the employer or insurer receives a report from an examination performed under s. 102.13 (1) (a), Stats., in the amount of the permanent disability found as a result of that medical examination, if any. If such an examination had not previously been performed, the employer or employer’s insurer must give notice of a request for such an examination within 30 days of receiving a report that establishes the permanent disability under sub. (1). If a report from the examination is not available within 90 days of the request for the examination, the employer and insurer shall begin payment of the permanent disability set forth in the report under sub. (1).

DWD 80.52 History History: CR 03-125: cr. Register June 2004 No. 582, eff. 7-1-04.

DWD 80.60 DWD 80.60 Exemption from duty to insure (self-insurance).

DWD 80.60(1) (1) Definitions. In this section:

DWD 80.60(1)(a) (a) “Applicant” means a business entity applying for self-insurance.

DWD 80.60(1)(b) (b) “Divided-insurance” means consent to the issuance of 2 or more policies, as provided in s. 102.31 (1), Stats.

DWD 80.60(1)(c) (c) “Employer” means a business entity or its parent guaranteeing payments.

DWD 80.60(1)(d) (d) “Excess insurance” means catastrophic insurance for employers granted self-insurance, and is not full-insurance, self-insurance, partial-insurance or divided-insurance.

DWD 80.60(1)(e) (e) “Full-insurance” means the insurance of all liability by one policy, as required in s. 102.31 (1) (a), Stats.

DWD 80.60(1)(f) (f) “Partial-insurance” means self-insurance of a part of the liability and consent to the issuance of one or more policies on the remainder of the liability, as provided in ss. 102.28 (2) (b) and 102.31 (1), Stats.

DWD 80.60(1)(g) (g) “Self-insurance” means exemption from the duty to insure, as provided in s. 102.28 (2) (b), Stats.

DWD 80.60(2) (2) Excess insurance. Excess insurance may be carried without further order of the department or may be required by order of the department as set forth in sub. (4) (d) 3. and 7.

DWD 80.60(3) (3) Requirements for the state and its political subdivisions.

DWD 80.60(3)(a) (a) The state and its political subdivisions may self-insure without further order of the department, if they are not partially-insured or fully-insured, or to the extent they are not partially-insured by written order under s. 102.31 (1), Stats., under one or more policies, and if they agree to report faithfully all compensable injuries and agree to comply with ch. 102, Stats., and the rules of the department. However, any such employer desiring partial-insurance or divided-insurance must submit an application to the department and be given special consent as described in s. DWD 80.61.

DWD 80.60(3)(b) (b)

DWD 80.60(3)(b)1. 1. Any political subdivision or taxing authority of the state electing to self-insure shall notify the department in writing of the election before undertaking self-insurance, every 3 years after the initial notice, and 30 days before withdrawing from the self-insurance program.

DWD 80.60(3)(b)2. 2. The notice of election to self-insure shall be accompanied by a resolution, adopted by the governing body and signed by the elected or appointed chief executive of the applying political subdivision or taxing authority, stating its intent and agreement by the governing body to self-insure its worker’s compensation liability and an agreement to faithfully report all compensable injuries and to comply with ch. 102, Stats., and the rules of the department in accordance with s. 102.28 (2) (b) and (c), Stats.

DWD 80.60(3)(c) (c) Self-insurance granted under par. (a) is subject to revocation under s. 102.28 (2) (c), Stats. Once the privilege of self-insurance is revoked, further self-insurance may be authorized only under the procedures set forth in sub. (4).

DWD 80.60(4) (4) Requirements for other employers.

DWD 80.60(4)(a) (a) Employers other than those specified in sub. (3), but including those specified in sub. (3) (c), desiring self-insurance shall submit an application on a form available from the department. A non-refundable fee, determined by the department as described in par. (ag), per employer, shall accompany the initial application. If the application is approved, the department shall permit self-insurance by written order. Every 3 years, a self-insured employer shall submit an application to renew self-insurance at least 60 days before the expiration date specified in the department’s order. Each quarter, or more often if requested by the department, a self-insured employer shall submit the most current financial statements to the department. Each year, a self-insured employer shall report work-injury claims payments to the department and other information related to worker’s compensation liability requested by the department. A self-insured employer shall immediately report to the department in writing any change in organizational structure that differs from the information provided in the annual report submitted to the department, including mergers, acquisitions, company name changes, consolidation, sale, or divestiture of divisions or subsidiaries. After a change in organizational structure, the department may revoke or modify the exemption from the duty to insure by providing reasonable written notice to the self-insured employer. If these changes result in the creation of a new parent or subsidiary, the department may waive or modify the requirement in par. (b) 1. to submit 5 years of audited financial statements. A fee of $200, per employer, and the assessment surcharge described in par. (am) may be billed by the department at the same time as the annual assessment under s. 102.75 (1), Stats. Self-insurance shall expire on the day specified by the department in its order. Unless the context indicates otherwise, all information submitted to the department to comply with this section shall be submitted on the latest version of a department approved form.

DWD 80.60 Note Note: For information regarding forms contact the worker’s compensation division, bureau of insurance programs, 201 East Washington Avenue, P.O. Box 7901, Madison, Wisconsin 53707.

DWD 80.60(4)(ag) (ag) In addition to any fee-for-service costs under par. (ax), the department shall charge each initial applicant for self-insurance a flat fee which the department estimates is the average cost for department employees to review the application for self-insurance, including employee salary and fringe benefits, supplies services and administrative costs, and information technology charges. The department shall review and, if necessary, modify the fee at least every 2 years.

DWD 80.60(4)(am) (am) In addition to any fee-for-service costs under par. (ax), each year the department shall assess each self-insured employer except those specified in sub. (3), but including those specified in sub. (3) (c), a $200 fee and a proportionate share of the department’s remaining costs to administer the self-insurance program after deducting the total amount estimated to be collected from the $200 fees and the fees charged under par. (ag) for initial applications. The department shall determine the assessment amount under this paragraph in the same manner as costs and expenses are apportioned in s. 102.75 (1), Stats.

DWD 80.60(4)(ax) (ax) To assist the department in evaluating an initial application or a renewal application for self-insurance, the department may contract for financial, loss control or other fee-for-service expertise or it may direct the applicant to provide the necessary information. The department shall charge the applicant for self-insurance the full cost of any fee-for-service expenses which the department incurs in evaluating the application for self-insurance. If these charges are related to an application for renewal of self-insurance, the department may bill the employer at the same time as the annual assessment under s. 102.75 (1), Stats.

DWD 80.60(4)(b) (b) The minimum requirements necessary for initial consideration for self-insurance are set forth in this paragraph. References in this paragraph to “board of directors” and “stockholders of the corporation” apply only to corporations but an equivalent requirement as determined by the department shall be applied to sole proprietorships, partnerships and other forms of business ownership.

DWD 80.60(4)(b)1. 1. The applicant, when submitting an initial request for self-insurance, shall submit audited financial statements (which includes the opinion of a certified public accountant) for a minimum of the latest five. Except as authorized by the department, employers self-insured under this subsection shall submit to the department audited or unaudited financial statements each quarter and audited financial statements each year.

DWD 80.60(4)(b)2. 2. If the employer is a corporation or a partnership which is a majority or wholly owned subsidiary, it shall submit to the department a guaranty of payments by the ultimate or top parent company on a department form and a certified copy of the resolution adopted by the board of directors of the parent corporation.

DWD 80.60(4)(b)3. 3. If the employer is a corporation, it shall submit a certified copy of the resolution adopted by the board of directors authorizing the execution of the initial application:

DWD 80.60(4)(b)3.a. a. Applications by organizations other than corporations shall be signed by one or more persons possessing authority to execute such application.

DWD 80.60(4)(b)3.b. b. Partnerships must submit a consent by all the partners that all individuals executing the application have the authority to act for the applicant partnership.

DWD 80.60(4)(b)4. 4. Corporations, limited partnerships and limited liability companies shall be registered in the office of the department of financial institutions.

DWD 80.60(4)(b)5. 5. The employer shall submit a copy of its current safety and loss control plan.

DWD 80.60(4)(c) (c) The following criteria may be considered by the department in evaluating the qualifications of an applicant for the initial application or renewal of self-insurance status:

DWD 80.60(4)(c)1. 1. The financial strength and liquidity of the employer to include: profit and loss history; financial and performance ratios; characteristics and trends for the employer or the consolidated group of employers to which the employer belongs; characteristics and trends for other employers of the same or the most similar industry in which the employer or the employer’s consolidated group is involved;

DWD 80.60(4)(c)2. 2. The employer’s organizational structure, management background, kind of business, length of time in business, and any intended or newly implemented reorganization including but not limited to merger, consolidation, acquisition of new business, divesting or spinning off of assets or other changes;

DWD 80.60(4)(c)3. 3. The nature and extent of the employer’s business operations and assets in the state of Wisconsin;

DWD 80.60(4)(c)4. 4. The employer’s bond or other business ratings;

DWD 80.60(4)(c)5. 5. The number of employer’s employees, payroll and hours worked in Wisconsin;

DWD 80.60(4)(c)6. 6. The employer’s performance indicators under ch. 102, Stats., including, but not limited to, promptness or time taken in making first indemnity payments, promptness or time taken in submitting first reports, and injury and illness incidence and severity rates;

DWD 80.60(4)(c)7. 7. The existing or proposed claims administration, occupational health, safety, and loss control programs to be maintained by the employer. The department may require certification of the occupational safety and health program by state or independently qualified specialists;

DWD 80.60(4)(c)8. 8. The worker’s compensation loss history, experience modification factor, reported losses, loss reserves and worker’s compensation premium of the employer; and

DWD 80.60(4)(c)9. 9. Excess insurance, surety bond, cash deposit or pledges of the employer, guaranty by the parent company, or other guarantees or pledges acceptable to the department.

DWD 80.60(4)(d) (d) The required minimum bond, minimum amount of cash, letter of credit or securities deposits, minimum acceptable excess insurance upper limit, maximum excess insurance retention, or other security satisfactory to the department, shall be determined after the application has been reviewed and analyzed by the department. The employer and the employer’s surety or other agent providing security shall use the latest version of any forms required by the department. All surety bonds and excess policies shall be written on standard forms approved by the Wisconsin compensation rating bureau or the commissioner of insurance, or both. Any change in the language used in the approved standard form is not accepted unless the department approves it in writing. The following conditions shall also apply to self-insured employers:

DWD 80.60(4)(d)1. 1. Surety bonds shall be written by companies authorized to transact surety business in Wisconsin and acceptable to the department.

DWD 80.60(4)(d)2. 2. Cash or equivalent securities shall be deposited with banks or trust companies authorized to exercise trust powers in Wisconsin and acceptable to the department. These securities shall be negotiable and converted into cash at anytime by the depository at the request of the department.

DWD 80.60(4)(d)3. 3. If excess insurance is required by the department, it shall be procured from a licensed excess insurance carrier and written on the basis of rates and policy form filed with and approved by the state of Wisconsin commissioner of insurance. The policy for the required excess insurance shall be filed with and approved by the Wisconsin compensation rating bureau.

DWD 80.60(4)(d)4. 4. Each self-insured employer shall provide security of at least $500,000. The department may increase the minimum required security amount after considering the criteria in par. (c).

DWD 80.60(4)(d)5. 5. If the self-insured employer provides a surety bond, the surety company shall pay worker’s compensation liabilities of the employer up to the aggregate amount of the bond without deducting any of its costs for investigating, paying, defending against, or providing other services related to the worker’s compensation claims. If a self-insured employer has more than one surety bond, the surety company whose bond is in effect on the date of injury is liable for claims related to that injury.

DWD 80.60(4)(d)6. 6. If the self-insured employer provides security in any form other than a surety bond, the department shall add 30 percent to the minimum amount in subd. 4.

DWD 80.60(4)(d)7. 7. Each employer self-insured under this subsection shall obtain a specific per occurrence excess insurance policy with retention and maximum limits approved by the department and in a form approved by the Wisconsin compensation rating bureau under ch. 626, Stats. In determining the limits the department shall consider, among other things, the criteria in par. (c).