WisconsinAB6512025-2026 Wisconsin Legislature (Biennial Session)HouseWALLET

An Act to repeal 102.01 (2) (ar); to renumber 102.15 (1) (a); to renumber and amend 102.16 (1), 102.17 (4) (a), 102.17 (9) (a) 1., 102.44 (1) (ag), 102.44 (1) (am) and 102.44 (1) (b); to amend 20.445 (1) (sm), 40.65 (2) (a), 102.11 (1) (intro.), 102.125 (2), 102.125 (3), 102.15 (2), 102.16 (4), 102.17 (1) (d) 1., 102.17 (1) (d) 2., 102.17 (1) (d) 3., 102.17 (4) (b), 102.17 (9) (b) (intro.), 102.18 (1) (a), 102.18 (1) (bp), 102.27 (2) (a), 102.32 (6m) (a), 102.42 (title), 102.44 (1) (c) 1., 102.59 (1), 102.61 (1m) (c), 102.75 (1g) (a), 102.75 (1g) (c), 102.81 (2), 102.82 (2) (a) (intro.), 102.82 (2) (am), 102.82 (2) (ar) and 102.82 (2) (b); to repeal and recreate 102.85 (1) and 102.85 (2); to create 102.125 (1m), 102.16 (1) (e), 102.17 (1) (a) 1m., 102.17 (1) (a) 5., 102.17 (1) (i), 102.17 (4) (a) 1., 102.17 (9) (a) 1e., 102.17 (9) (a) 1g., 102.42 (10), 102.44 (4o), 102.59 (4), 102.82 (2) (ab), 102.82 (2) (ad) and 943.395 (1) (e) of the statutes; to affect 2023 Wisconsin Act 213, section 25; Relating to: various changes to the worker’s compensation law, granting rule-making authority, making an appropriation, and providing a penalty. (FE)

Sponsored By: Committee on Workforce Development

Became Law

EmploymentFinesFire departmentForfeitureFraudLegislature -- Criminal PenaltiesJoint Review Committee onMedical service -- OccupationsMental healthPersons with disabilitiesWorker's compensationWorkforce DevelopmentDepartment of

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Bill Overview

Analyzed Economic Effects

17 provisions identified: 9 benefits, 1 costs, 7 mixed.

Bigger checks for long‑term total disability

If your injury was before January 1, 2020 and you are still totally disabled more than 24 months later, you get a weekly supplement starting January 1, 2026. If you were at the max when injured, your total weekly pay is first brought to $669; each January 1 after that, it rises to match the then‑current maximum. If you were below the max, your total pay is raised to keep the same share of the current maximum as before. These supplemental payments are paid from the fund named in state law.

Bigger penalties for bad‑faith claim delays

Starting January 1, 2026, if an employer or insurer acts with malice or bad faith by stopping, delaying, or not reporting payment, the division can add a penalty to your award. The penalty per event is the lesser of 200% of compensation due or $30,000. If this penalty is applied, no extra late‑payment increase or interest is also added for that same event. The penalty can be charged to the employer, the insurer, or both.

Stiffer penalties and narrow waivers for uninsured employers

Starting January 1, 2026, payments ordered are due within 30 days; unpaid amounts earn 1% interest per month. For not carrying coverage, forfeitures rise by repeat count: the larger of $1,000 or the premium (first), $2,000 or 2× premium (second), $3,000 or 3× premium (third), and $4,000 or 4× premium (fourth+). A third uninsured finding also triggers the greater of triple the calculated unpaid premium or $3,000; a fourth or more triggers quadruple or $4,000. Giving false coverage info or failing to notify a contracting person of cancellation is banned, with $100–$1,000 penalties; a third is $3,000 and a fourth is $4,000. The department may waive payments only if you were covered solely by election or your noncompliance was solely due to agent fraud or gross negligence.

Advances and retraining costs now covered

Starting January 1, 2026, the department can order up to three advances per year from your future permanent disability or death benefits if this is in your best interest. When an advance is ordered, the employer or insurer gets a 5% interest credit. If a private rehab counselor finds training is needed, your employer or insurer must pay for tuition, fees, books, maintenance, and travel at state rates. Training programs of up to 80 weeks are presumed reasonable, and longer programs can be approved.

Higher partial‑disability pay and fair ratings

The law sets a $30 minimum weekly earnings for partial disability. It also updates the maximum average weekly earnings by injury date, such as $645 (max comp $430) for Jan 1, 2023–Mar 23, 2024; $657 (max comp $438) for Mar 24–Dec 31, 2024; $669 (max comp $446) for 2025 until Jan 1, 2026; $681 (max comp $454) from Jan 1, 2026 to Dec 31, 2026; and $693 (max comp $462) on or after Jan 1, 2027. If you have the same surgery again on the same limb, your rating is set under the standard method and cannot be lower than your first rating.

More time and retro rules for claims

Filing an application for a hearing now pauses the filing deadline until the case is finished. There is no time limit to file for certain severe injuries or for occupational disease. If benefits come due more than 12 years after an occupational disease or more than 6 years after a listed traumatic injury, payment comes from the state supplemental fund. Some traumatic‑injury timing rules differ for injuries before April 1, 2006. Starting January 1, 2026, several timing and decision rules apply no matter when your injury happened.

Stronger crackdown on workers’ comp fraud

Starting January 1, 2026, it is a crime to file a false or fraudulent workers’ comp insurance application, including misclassifying employees. The workforce department can ask the justice department for help on investigations and must refer cases for prosecution when there is a reasonable basis to believe a crime occurred. Insurers must report suspected fraud or misclassification and, if required, investigate and report results.

Faster closure after workers’ comp settlements

All compensation disputes go to the department. The department can review or change a compromise for up to one year after it is filed or awarded. When a compromise is approved, the pending hearing is dismissed and the case is closed. Lump‑sum settlement money can be paid directly to you without requiring a bank deposit. These changes start January 1, 2026.

Old benefit applications keep appeal rights

If you first applied for benefits before May 3, 1988, the department uses the old rules to decide eligibility and monthly salary. You can appeal under the listed appeal process, and still working does not block your right to review. The department may set rules to run this process.

PTSD coverage for first responders expands

Law enforcement officers, emergency medical responders, EMS practitioners, and firefighters can get workers’ comp for a non‑physical mental injury that results in a PTSD diagnosis. This applies under the workers’ comp rules starting January 1, 2026.

More funding for workers' comp administration

The law adds money to the Department of Workforce Development to run workers' compensation. Beginning January 1, 2026, it adds $834,700 for the 2025–26 budget year and $941,800 for 2026–27. These are one-time increases tied to those two fiscal years.

Access for case managers in hospital discharges

For inpatient stays, providers cannot block employer or insurer case managers from records access or discharge planning when needed to ensure housing and transportation for an injured worker. Case managers still cannot direct medical care. This rule starts January 1, 2026.

New evidence and hearing rules for claims

Certified medical and expert reports, including audiologists, can be used as prima facie evidence. Hospital records can also count if properly certified. Reports and key records must be filed and served at least 15 days before the hearing, unless there is good cause. The agency can set rules on when transcripts are provided. If there is no real dispute, the department must dismiss the application without prejudice.

Stronger payment protections and assignment rules

The department can order employers to repay illegal wage deductions or amounts paid in violation of the law. Employers who break the rule owe the reasonable value of necessary services to the injured worker, even if the worker did not pay that amount. The law also clarifies when workers’ comp benefits can be assigned under other state statutes, such as certain debt or family‑law orders.

Repeal of outdated workers’ comp text

The law removes a specific subsection from the workers’ compensation statutes starting January 1, 2026. The repeal itself does not state changes to payments or eligibility in this summary.

State can hire help for uninsured claims

Starting January 1, 2026, the state fund for uninsured employers can make required payments and buy reinsurance once a required certificate is filed, with spending allowed after the first July 1 following the filing. The department may hire insurers or service firms to process and pay claims, buy stop‑loss coverage, and retain attorneys. Costs are paid from the fund’s appropriation.

Insurer reimbursements and shared supplemental costs

Starting January 1, 2026, carriers that pay required supplemental benefits can get reimbursed from the operations fund one year after the first payment and yearly after that, if they file within 12 months after year‑end. The state also spreads certain reimbursement costs across insurers based on each carrier’s share of indemnity paid in closed cases the prior year. The calculation excludes doubled or trebled payments and does not apply to claims for injuries on or after January 1, 2016.

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Sponsors & Cosponsors

Sponsor

  • Committee on Workforce Development

    Affiliation unavailable

Cosponsors

  • André Jacque

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 147 • No: 16

Senate vote 2/11/2026

Senate Amendment 1 rejected, Ayes 18, Noes 15

Yes: 18 • No: 15

Senate vote 2/11/2026

Read a third time and concurred in, Ayes 32, Noes 1

Yes: 32 • No: 1

House vote 1/20/2026

Read a third time and passed, Ayes 97, Noes 0

Yes: 97 • No: 0

Actions Timeline

  1. Published 3-31-2026

    3/30/2026House
  2. Report approved by the Governor on 3-30-2026. 2025 Wisconsin Act 145

    3/30/2026House
  3. Presented to the Governor on 3-26-2026

    3/26/2026House
  4. Report correctly enrolled on 2-13-2026

    2/13/2026House
  5. Received from Senate concurred in

    2/12/2026House
  6. Ordered immediately messaged

    2/11/2026Senate
  7. Read a third time and concurred in, Ayes 32, Noes 1

    2/11/2026Senate
  8. Rules suspended to give bill its third reading

    2/11/2026Senate
  9. Ordered to a third reading

    2/11/2026Senate
  10. Senate Amendment 1 rejected, Ayes 18, Noes 15

    2/11/2026Senate
  11. Read a second time

    2/11/2026Senate
  12. Senate Amendment 1 offered by Senators Smith, Carpenter, Dassler-Alfheim, Drake, Habush Sinykin, Hesselbein, L. Johnson, Keyeski, Larson, Pfaff, Ratcliff, Roys, Spreitzer, Wall and Wirch

    2/11/2026Senate
  13. Fiscal estimate received

    2/10/2026Senate
  14. Placed on calendar 2-11-2026 pursuant to Senate Rule 18(1)

    2/9/2026Senate
  15. Public hearing requirement waived by committee on Senate Organization, pursuant to Senate Rule 18 (1m), Ayes 3, Noes 2

    2/9/2026Senate
  16. Available for scheduling

    1/23/2026Senate
  17. Read first time and referred to committee on Senate Organization

    1/23/2026Senate
  18. Received from Assembly

    1/20/2026Senate
  19. Ordered immediately messaged

    1/20/2026House
  20. Read a third time and passed, Ayes 97, Noes 0

    1/20/2026House
  21. Rules suspended

    1/20/2026House
  22. Ordered to a third reading

    1/20/2026House
  23. Assembly Amendment 1 adopted

    1/20/2026House
  24. Read a second time

    1/20/2026House
  25. Placed on calendar 1-20-2026 by Committee on Rules

    1/14/2026House

Bill Text

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