Transferring adjudicatory functions for worker’s compensation from the Division of Hearings and Appeals in the Department of Administration to the Department of Workforce Development, the official text

2025 - 2026 LEGISLATURE
LRB-2485/2
MIM:emw

2025 ASSEMBLY BILL 232
May 2, 2025 - Introduced by Representatives Sortwell, Armstrong, Dittrich, Moses, Murphy and Sinicki, cosponsored by Senators Testin, Wanggaard, Feyen and Wall. Referred to Committee on Workforce Development, Labor, and Integrated Employment.

An Act to repeal 102.01 (2) (ad), 102.15 (1) (b), 102.18 (1) (b) 1t., 227.43 (1) (bm), 227.43 (2) (am), 227.43 (3) (bm) and 227.43 (4) (bm); to amend 40.65 (2) (b) 3., 40.65 (2) (b) 4., 102.01 (2) (dm), 102.04 (2r) (b), 102.07 (8) (c), 102.12, 102.13 (1) (c), 102.13 (1) (d) 2., 102.13 (1) (d) 3., 102.13 (1) (f), 102.13 (2) (a), 102.13 (3), 102.13 (4), 102.13 (5), 102.14 (title), 102.14 (1), 102.14 (2), 102.16 (1m) (a), 102.16 (1m) (b), 102.16 (1m) (c), 102.16 (2) (a), 102.16 (2) (b), 102.16 (2m) (a), 102.16 (2m) (b), 102.16 (4), 102.17 (1) (a) 1., 102.17 (1) (a) 2., 102.17 (1) (a) 3., 102.17 (1) (a) 4., 102.17 (1) (b), 102.17 (1) (c), 102.17 (1) (cg) 1., 102.17 (1) (cg) 2., 102.17 (1) (cg) 2m., 102.17 (1) (cg) 3., 102.17 (1) (cr), 102.17 (1) (ct), 102.17 (1) (d) 2. and 4., 102.17 (1) (e), 102.17 (1) (f) 1., 102.17 (1) (g), 102.17 (1) (h), 102.17 (2), 102.17 (2m), 102.17 (2s), 102.17 (4) (a), 102.17 (7) (b), 102.17 (7) (c), 102.17 (8), 102.175 (2), 102.175 (3) (c), 102.18 (1) (b) 1., 102.18 (1) (b) 1d., 102.18 (1) (b) 2., 102.18 (1) (b) 3., 102.18 (1) (bg) 1., 102.18 (1) (bg) 2., 102.18 (1)
(bg) 3., 102.18 (1) (bw), 102.18 (1) (c), 102.18 (1) (e), 102.18 (3), 102.18 (4) (c) 3., 102.18 (4) (d), 102.18 (5), 102.18 (6), 102.195, 102.22 (1), 102.22 (2), 102.23 (2), 102.23 (3), 102.23 (5), 102.24 (2), 102.25 (1), 102.26 (2), 102.26 (3) (b) 1., 102.26 (3) (b) 3., 102.26 (4), 102.27 (2) (b), 102.28 (3) (c), 102.28 (4) (c), 102.29 (1) (b) (intro.), 102.29 (1) (c), 102.29 (1) (d), 102.30 (7) (a), 102.32 (1m) (intro.), 102.32 (1m) (a), 102.32 (1m) (c), 102.32 (1m) (d), 102.32 (5), 102.32 (6m) (a), 102.32 (7), 102.33 (1), 102.33 (2) (a), 102.33 (2) (b) (intro.), 102.33 (2) (b) 1., 102.33 (2) (b) 2., 102.33 (2) (b) 4., 102.33 (2) (c), 102.33 (2) (d) 2., 102.35 (3), 102.42 (1m), 102.42 (6), 102.42 (8), 102.425 (4m) (a), 102.425 (4m) (b), 102.43 (5) (b), 102.44 (2), 102.44 (6) (b), 102.475 (6), 102.48 (1), 102.48 (2), 102.48 (3), 102.49 (3), 102.49 (6), 102.51 (3), 102.51 (4), 102.51 (6), 102.55 (3), 102.555 (12) (a), 102.56 (1), 102.56 (2), 102.565 (1), 102.565 (2), 102.565 (3), 102.61 (1g) (c), 102.61 (2), 102.62, 102.64 (1), 102.64 (2), 102.65 (3), 102.66 (1) and 102.75 (1); to repeal and recreate 102.16 (1) and 102.18 (2) of the statutes; relating to: transferring adjudicatory functions for worker’s compensation from the Division of Hearings and Appeals in the Department of Administration to the Department of Workforce Development.

Analysis by the Legislative Reference Bureau
Under current law, the Department of Workforce Development performs various administrative and adjudicatory functions relating to worker’s compensation, except that the adjudicatory functions of DWD relating to disputed worker’s compensation claims are performed by the Division of Hearings and Appeals in the Department of Administration. This bill transfers the adjudicatory functions of DHA relating to disputed worker’s compensation claims to DWD.
For further information see the state fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

Section 1. 40.65 (2) (b) 3. of the statutes is amended to read:
40.65 (2) (b) 3. The department shall determine whether or not the applicant is eligible for benefits under this section on the basis of the evidence in subd. 2. An applicant may appeal a determination under this subdivision to the division of hearings and appeals in the department of administration department of workforce development.
Section 2. 40.65 (2) (b) 4. of the statutes is amended to read:
40.65 (2) (b) 4. In hearing an appeal under subd. 3., the division of hearings and appeals in the department of administration department of workforce development shall follow the procedures under ss. 102.16 to 102.26.
Section 3. 102.01 (2) (ad) of the statutes is repealed.
Section 4. 102.01 (2) (dm) of the statutes is amended to read:
102.01 (2) (dm) “Order” means any decision, rule, regulation, direction, requirement, or standard of the department or the division, or any other determination arrived at or decision made by the department or the division.
Section 5. 102.04 (2r) (b) of the statutes is amended to read:
102.04 (2r) (b) The franchisor has been found by the department or the division to have exercised a type or degree of control over the franchisee or the franchisee’s employees that is not customarily exercised by a franchisor for the purpose of protecting the franchisor’s trademarks and brand.
Section 6. 102.07 (8) (c) of the statutes is amended to read:
102.07 (8) (c) The division department may not admit in evidence any state or
federal law, regulation, or document granting operating authority, or a license when determining whether an independent contractor meets the conditions specified in par. (b) 1. or 3.
Section 7. 102.12 of the statutes is amended to read:
102.12 Notice of injury, exception, laches. No claim for compensation may be maintained unless, within 30 days after the occurrence of the injury or within 30 days after the employee knew or ought to have known the nature of his or her disability and its relation to the employment, actual notice was received by the employer or by an officer, manager or designated representative of an employer. If no representative has been designated by posters placed in one or more conspicuous places where notices to employees are customarily posted, then notice received by any superior is sufficient. Absence of notice does not bar recovery if it is found that the employer was not misled by that absence. Regardless of whether notice was received, if no payment of compensation, other than medical treatment or burial expense, is made, and if no application is filed with the department within 2 years after the date of the injury or death or the date the employee or his or her dependent knew or ought to have known the nature of the disability and its relation to the employment, the right to compensation for the injury or death is barred, except that the right to compensation is not barred if the employer knew or should have known, within the 2-year period, that the employee had sustained the injury on which the claim is based. Issuance of notice of a hearing on the motion of the department or the division has the same effect for the purposes of this section as the filing of an application. This section does not affect any claim barred under s. 102.17 (4).

Section 8. 102.13 (1) (c) of the statutes is amended to read:
102.13 (1) (c) So long as the employee, after a written request of the employer or insurer that complies with par. (b), refuses to submit to or in any way obstructs the examination, the employee’s right to begin or maintain any proceeding for the collection of compensation is suspended, except as provided in sub. (4). If the employee refuses to submit to the examination after direction by the department, the division, or an examiner, or in any way obstructs the examination, the employee’s right to the weekly indemnity that accrues and becomes payable during the period of that refusal or obstruction, is barred, except as provided in sub. (4).
Section 9. 102.13 (1) (d) 2. of the statutes is amended to read:
102.13 (1) (d) 2. Any physician, chiropractor, psychologist, dentist, physician assistant, advanced practice registered nurse, or podiatrist who attended a worker’s compensation claimant for any condition or complaint reasonably related to the condition for which the claimant claims compensation may be required to testify before the division department when the division department so directs.
Section 10. 102.13 (1) (d) 3. of the statutes is amended to read:
102.13 (1) (d) 3. Notwithstanding any statutory provisions except par. (e), any physician, chiropractor, psychologist, dentist, physician assistant, advanced practice registered nurse, or podiatrist attending a worker’s compensation claimant for any condition or complaint reasonably related to the condition for which the claimant claims compensation may furnish to the employee, employer, worker’s compensation insurer, or department, or division information and reports relative related to a compensation claim.
Section 11. 102.13 (1) (f) of the statutes is amended to read:

102.13 (1) (f) If an employee claims compensation under s. 102.81 (1), the department or the division may require the employee to submit to physical or vocational examinations under this subsection.
Section 12. 102.13 (2) (a) of the statutes is amended to read:
102.13 (2) (a) An employee who reports an injury alleged to be work-related or files an application for hearing waives any physician-patient, psychologist-patient, or chiropractor-patient privilege with respect to any condition or complaint reasonably related to the condition for which the employee claims compensation. Notwithstanding ss. 51.30 and 146.82 and any other law, any physician, chiropractor, psychologist, dentist, podiatrist, physician assistant, advanced practice registered nurse, hospital, or health care provider shall, within a reasonable time after written request by the employee, employer, worker’s compensation insurer, or department, or division, or its representative, provide that person with any information or written material reasonably related to any injury for which the employee claims compensation. If the request is by a representative of a worker’s compensation insurer for a billing statement, the physician, chiropractor, psychologist, dentist, podiatrist, physician assistant, advanced practice registered nurse, hospital, or health care provider shall, within 30 days after receiving the request, provide that person with a complete copy of an itemized billing statement or a billing statement in a standard billing format recognized by the federal government.
Section 13. 102.13 (3) of the statutes is amended to read:
102.13 (3) If 2 or more physicians, chiropractors, psychologists, dentists, or podiatrists disagree as to the extent of an injured employee’s temporary disability,
the end of an employee’s healing period, an employee’s ability to return to work at suitable available employment or the necessity for further treatment or for a particular type of treatment, the department or the division may appoint another physician, chiropractor, psychologist, dentist, or podiatrist to examine the employee and render an opinion as soon as possible. The department or the division shall promptly notify the parties of this appointment. If the employee has not returned to work, payment for temporary disability shall continue until the department or the division receives the opinion. The employer or its insurance carrier, or both, shall pay for the examination and opinion. The employer or insurance carrier, or both, shall receive appropriate credit for any overpayment to the employee determined by the department or the division after receipt of the opinion.
Section 14. 102.13 (4) of the statutes is amended to read:
102.13 (4) The right of an employee to begin or maintain proceedings for the collection of compensation and to receive weekly indemnities that accrue and become payable shall not be suspended or barred under sub. (1) when an employee refuses to submit to a physical examination, upon the request of the employer or worker’s compensation insurer or at the direction of the department, the division, or an examiner, that would require the employee to travel a distance of 100 miles or more from his or her place of residence, unless the employee has claimed compensation for treatment from a practitioner whose office is located 100 miles or more from the employee’s place of residence or the department, division, or examiner determines that any other circumstances warrant the examination. If the employee has claimed compensation for treatment from a practitioner whose office
is located 100 miles or more from the employee’s place of residence, the employer or insurer may request, or the department, the division, or an examiner may direct, the employee to submit to a physical examination in the area where the employee’s treatment practitioner is located.
Section 15. 102.13 (5) of the statutes is amended to read:
102.13 (5) The department or the division may refuse to receive testimony as to conditions determined from an autopsy if it appears that the party offering the testimony had procured the autopsy and had failed to make reasonable effort to notify at least one party in adverse interest or the department or the division at least 12 hours before the autopsy of the time and place at which the autopsy would be performed, or that the autopsy was performed by or at the direction of the coroner or medical examiner or at the direction of the district attorney for purposes not authorized under ch. 979. The department or the division may withhold findings until an autopsy is held in accordance with its directions.
Section 16. 102.14 (title) of the statutes is amended to read:
102.14 (title) Jurisdiction of department and division; advisory committee council.
Section 17. 102.14 (1) of the statutes is amended to read:
102.14 (1) Except as otherwise provided, this chapter shall be administered by the department and the division.
Section 18. 102.14 (2) of the statutes is amended to read:
102.14 (2) The council on worker’s compensation shall advise the department and the division in carrying out the purposes of this chapter, shall submit its
recommendations with respect to amendments to this chapter to each regular session of the legislature, and shall report its views upon any pending bill relating to this chapter to the proper legislative committee. At the request of the chairpersons of the senate and assembly committees on labor, the department shall schedule a meeting of the council with the members of the senate and assembly committees on labor to review and discuss matters of legislative concern arising under this chapter.
Section 19. 102.15 (1) (b) of the statutes is repealed.
Section 20. 102.16 (1) of the statutes is repealed and recreated to read:
102.16 (1) Any controversy concerning compensation or a violation of sub. (3), including a controversy in which the state may be a party, shall be submitted to the department in the manner and with the effect provided in this chapter. A compromise of any claim for compensation may be reviewed and set aside, modified, or confirmed by the department within one year after the date on which the compromise is filed with the department, the date on which an award has been entered based on the compromise, or the date on which an application for the department to take any of those actions is filed with the department. Unless the word “compromise” appears in a stipulation of settlement, the settlement shall not be considered a compromise, and further claim is not barred except as provided in s. 102.17 (4) regardless of whether an award is made. The employer, insurer, or dependent under s. 102.51 (5) shall have equal rights with the employee to have a compromise or any other stipulation of settlement reviewed under this subsection.
Upon petition filed with the department under this subsection, the department may set aside the award or otherwise determine the rights of the parties.
Section 21. 102.16 (1m) (a) of the statutes is amended to read:
102.16 (1m) (a) If an insurer or self-insured employer concedes by compromise under sub. (1) or stipulation under s. 102.18 (1) (a) that the insurer or self-insured employer is liable under this chapter for any health services provided to an injured employee by a health service provider, but disputes the reasonableness of the fee charged by the health service provider, the department or the division may include in its order confirming the compromise or stipulation a determination made by the department under sub. (2) as to the reasonableness of the fee or, if such a determination has not yet been made, the department or the division may notify, or direct the insurer or self-insured employer to notify, the health service provider under sub. (2) (b) that the reasonableness of the fee is in dispute. The department or the division shall deny payment of a health service fee that the department determines under sub. (2) to be unreasonable. A health service provider and an insurer or self-insured employer that are parties to a fee dispute under this paragraph are bound by the department’s determination under sub. (2) on the reasonableness of the disputed fee, unless that determination is set aside, reversed, or modified by the department under sub. (2) (f) or is set aside on judicial review as provided in sub. (2) (f).
Section 22. 102.16 (1m) (b) of the statutes is amended to read:
102.16 (1m) (b) If an insurer or self-insured employer concedes by compromise under sub. (1) or stipulation under s. 102.18 (1) (a) that the insurer or self-insured
employer is liable under this chapter for any treatment provided to an injured employee by a health service provider, but disputes the necessity of the treatment, the department or the division may include in its order confirming the compromise or stipulation a determination made by the department under sub. (2m) as to the necessity of the treatment or, if such a determination has not yet been made, the department or the division may notify, or direct the insurer or self-insured employer to notify, the health service provider under sub. (2m) (b) that the necessity of the treatment is in dispute. Before determining under sub. (2m) the necessity of treatment provided to an injured employee, the department may, but is not required to, obtain the opinion of an expert selected by the department who is qualified as provided in sub. (2m) (c). The standards promulgated under sub. (2m) (g) shall be applied by an expert and by the department in rendering an opinion as to, and in determining, necessity of treatment under this paragraph. In cases in which no standards promulgated under sub. (2m) (g) apply, the department shall find the facts regarding necessity of treatment. The department or the division shall deny payment for any treatment that the department determines under sub. (2m) to be unnecessary. A health service provider and an insurer or self-insured employer that are parties to a dispute under this paragraph over the necessity of treatment are bound by the department’s determination under sub. (2m) on the necessity of the disputed treatment, unless that determination is set aside, reversed, or modified by the department under sub. (2m) (e) or is set aside on judicial review as provided in sub. (2m) (e).
Section 23. 102.16 (1m) (c) of the statutes is amended to read:

102.16 (1m) (c) If an insurer or self-insured employer concedes by compromise under sub. (1) or stipulation under s. 102.18 (1) (a) that the insurer or self-insured employer is liable under this chapter for the cost of a prescription drug dispensed under s. 102.425 (2) for outpatient use by an injured employee, but disputes the reasonableness of the amount charged for the prescription drug, the department or the division may include in its order confirming the compromise or stipulation a determination made by the department under s. 102.425 (4m) as to the reasonableness of the prescription drug charge or, if such a determination has not yet been made, the department or the division may notify, or direct the insurer or self-insured employer to notify, the pharmacist or practitioner dispensing the prescription drug under s. 102.425 (4m) (b) that the reasonableness of the prescription drug charge is in dispute. The department or the division shall deny payment of a prescription drug charge that the department determines under s. 102.425 (4m) to be unreasonable. A pharmacist or practitioner and an insurer or self-insured employer that are parties to a dispute under this paragraph over the reasonableness of a prescription drug charge are bound by the department’s determination under s. 102.425 (4m) on the reasonableness of the disputed prescription drug charge, unless that determination is set aside, reversed, or modified by the department under s. 102.425 (4m) (e) or is set aside on judicial review as provided in s. 102.425 (4m) (e).
Section 24. 102.16 (2) (a) of the statutes is amended to read: