Performance Details

Department of Labor and Workforce Development - Workers" Compensation

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Mission

Ensure the efficient, fair and predictable delivery of indemnity, medical and vocational rehabilitation benefits intended to enable workers to return to work at a reasonable cost to employers.

Core Services

• Ensure compliance with the Workers" Compensation Act.
• Conduct timely Workers" Compensation hearings.
• Operate a timely and efficient appeals program.
• Process Fishermen"s Fund claims timely.
• Administer a vocational rehabilitation benefits and training program for injured workers.

Mission Results	Core Services
A: All employers comply with AS 23.30, the Alaska Workers" Compensation Act. Details > TARGET #1: Maintain ratio of uninsured injuries at .01% or less of Alaska"s Workforce. TARGET #2: All uninsured employers take responsibility for uninsured injuries.	A1: Ensure compliance with the Workers" Compensation Act. Details > TARGET #1: Investigate all alleged uninsured employers. TARGET #2: Investigate all alleged Workers" Compensation Act fraud. TARGET #3: 75 percent of investigations are completed within six months. TARGET #4: Educate employers about the Workers" Compensation Act requirements.
Mission Results	Core Services
B: Improved delivery of efficient, low cost and legal informal and formal dispute resolution. Details > TARGET #1: Resolve at least 90 percent of disputed issues without a formal hearing. TARGET #2: Process open cases at the Appeals Commission within 250 days.	B1: Conduct timely Workers" Compensation hearings. Details > TARGET #1: All written decisions will be issued within 30 days of record closure. TARGET #2: Hearings will be scheduled within an average of 90 days from receipt of readiness for hearings. B2: Operate a timely and efficient appeals program. Details > TARGET #1: Issue final Workers" Compensation Appeals Commission decisions within an average of 90 days of record closure.
Mission Results	Core Services
C: More Alaskans available for jobs. Details > TARGET #1: Requests for reimbursement from the Fishermen"s Fund will be paid within 30 days of receipt. TARGET #2: 20 percent of injured workers eligible for reemployment benefits complete a viable retraining plan.	C1: Process Fishermen"s Fund claims timely. Details > TARGET #1: Keep the number of days it takes to get the Fishermen"s Fund Advisory and Appeals Council"s approval to within 90 days. C2: Administer a vocational rehabilitation benefits and training program for injured workers. Details > TARGET #1: Reduce the percentage of retraining plans that are returned to the rehabilitation specialists by 20 percent per year until no plans need to be returned. TARGET #2: Review of all pending retraining plans will be performed quarterly.

Performance Detail

A: Result -All employers comply with AS 23.30, the Alaska Workers" Compensation Act.

Target #1: Maintain ratio of uninsured injuries at .01% or less of Alaska"s Workforce. Methodology: Number of injuries is based on claims made to the Workers" Compensation Board. Workforce is the "Labor Force" determined by the Division of Research & Analysis. Percentage of Employee Injuries Uninsured Under Workers" Compensation Fiscal Year Injuries Workforce % of Workforce FY 2025 15 362,632 .004% FY 2024 24 357,637 .007% FY 2023 11 356,167 .003% FY 2022 9 359,618 .003% FY 2021 21 348,043 .006% FY 2020 20 344,159 .006% FY 2019 38 354,141 0.01% Analysis of results and challenges: During FY2025, the Special Investigations Unit (SIU) received 30 allegations of uninsured injury and fully investigated each one. Out of 30 alleged uninsured injuries, 15 were confirmed to have occurred and were uninsured. This could be due to unpaid premiums, failure to renew their policy, or failure to become insured in the first place. Eight of the alleged uninsured injured workers filed a report of injury and/or workers` compensation claim with the division against the Benefits Guaranty Fund. Target Last Modified: 11/14/2025

Target #2: All uninsured employers take responsibility for uninsured injuries. Methodology: Percentage of uninsured employers that are participating in board proceedings in the uninsured injury case, paying the compensable claim costs direct or by reimbursement to the Benefits Guaranty Fund. Also includes uninsured employers that are not doing either only because the uninsured injured worker did not file or pursue a workers" compensation claim. Analysis of results and challenges: In FY2025, out of 15 confirmed uninsured injuries, a total of eight uninsured injured workers filed claims against their uninsured employers and Benefits Guaranty Fund and 13 of the 15 filed Reports of Injury (ROI) with the division; one self-employed sole proprietor did not file an ROI and one injured worker became deceased without a ROI being filed. Target Last Modified: 11/14/2025

A1: Core Service - Ensure compliance with the Workers" Compensation Act.

Target #1: Investigate all alleged uninsured employers. Alleged Workers" Compensation Act Failure to Insure Investigated Year Total Alleged uninsured Percentage investigated 2025 6576 +42.34% 100% 2024 4620 +70.35% 100% 2023 2712 +674.86% 100% 2022 350 -4.89% 100% 2021 368 -10.68% 100% 2020 412 -30.52% 100% 2019 593 +11.05% 100% Analysis of results and challenges: The Special Investigations Unit (SIU) conducted 6,576 compliance checks and found 6,152 of those alleged uninsured employers in compliance. The remaining 424 alleged uninsured employers were referred for further investigation. SIU began FY2024 with 175 pending “failure to insure” investigations and opened or reopened another 426 cases for a total of 601 active formal investigations worked during FY2025. These investigations typically begin within two days and range from conducting simple compliance checks that do not result in opening a formal “failure to insure” investigation to completing the more complex investigations that result in issuance of warning letters, penalties agreed upon via the settlement process, and formal hearings. SIU closed 452 out of 601 active formal investigations in FY2025. Of the 452 investigations closed, 278 were resolved as investigations only (meaning that either (1) proof of coverage (POC) was found, (2) proof of coverage was no longer necessary due to business closure/no longer operating with employees, or (3) the employers coverage reinstatement resulted in a small enough lapse that pursuing a penalty would not be cost effective). Out of the 174 remaining closed investigations, 90 cases resulted in penalties assessed to employers via stipulated settlement, 10 by formal decision and order issued by the Alaska Workers" Compensation Board, 50 were issued warning letters, and 24 were closed for other reasons. In FY2025, a total of 948 employers were petitioned for “failure to insure” and 11 petitions were withdrawn due to either proof of coverage found or business closure. There were 149 remaining investigations actively pending at the end of the fiscal year. Target Last Modified: 11/14/2025

Target #2: Investigate all alleged Workers" Compensation Act fraud. Methodology: The number of Workers" Compensation Act fraud allegations is calculated by adding the total number of calls received from the public alleging criminal fraud perpetrated by a claimant, employer, care provider, insurer/claims administrator, or attorney to the total number of requests for assistance received from other law enforcement agencies. Analysis of results and challenges: The Special Investigations Unit received 126 fraud allegations in FY2025. Of the 126 fraud allegations, 15 alleged claimant fraud, 26 alleged employer fraud, three alleged care provider fraud, 81 were other agency assist requests, and one was not related to workers" compensation fraud. Target Last Modified: 11/14/2025

Target #3: 75 percent of investigations are completed within six months. Methodology: The percentage of investigations completed within six months is generated by comparing the total number of cases investigated within the fiscal year against the total number of cases investigated within the fiscal year that are closed for any reason within 180 days. Analysis of results and challenges: The Special Investigations Unit (SIU) investigated a total of 599 formal failure to insure matters, including those carried over from FY2024 and new matters opened in FY2025. Of the 465 failure to insure investigations that were closed, 375 were closed within 180 days from the actual date opened to the actual date closed. Target Last Modified: 11/14/2025

Target #4: Educate employers about the Workers" Compensation Act requirements. Methodology: The number of employers educated is generated by adding the total number of attendees at formal employer education presentations, to the total number of documented public inquiries received, to the total number of onsite visits conducted. Analysis of results and challenges: During FY2025, the Special Investigations Unit (SIU) conducted eight formal education presentations with 185 attendees, responded to 362 documented public inquiries, and conducted a total of 157 onsite visits for a total of 704 educated employers. Limited ability to travel to communities outside the regional areas continues to impact the SIU"s ability to increase its proactive public education activity during FY2025. Target Last Modified: 12/09/2025

B: Result -Improved delivery of efficient, low cost and legal informal and formal dispute resolution.

Target #1: Resolve at least 90 percent of disputed issues without a formal hearing. Methodology: Total number of claims and petitions filed, compared to the number of decisions and orders issued. Analysis of results and challenges: The Division of Workers` Compensation continues to achieve the goal to resolve at least 90 percent of all claims and petitions without a formal hearing. Less complex issues are resolved at prehearing conferences by Workers` Compensation Officers and Hearing Officers. Many of the more contentious cases with difficult parties are resolved through mediation, which saves the parties and the division hours of hearings and weeks of work of time for a Hearing Officer and board panel. For example, in FY2025, the division`s mediation program mediated 58 complex and contentious cases and 55 were resolved. The division is challenged by non-attorney representatives who attempt to assist injured workers and provide incorrect advice, miss deadlines, or complicate simple cases. The division is also challenged by self-represented claimants with mental health concerns that interfere with their ability to effectively utilize advice given on how to pursue their rights under the Workers` Compensation Act. The division will continue to advise self-represented claimants and non-attorney representatives of injured workers` rights and how to pursue them under the Workers` Compensation Act. The division`s staffing issue, including inability to attract and hire hearing officers, limits case completion rate, draft and issue decisions within 30 days of record closure, and to also mediate cases. Target Last Modified: 11/14/2025

Target #2: Process open cases at the Appeals Commission within 250 days. Methodology: The average number of days from the filing of an appeal or petition for review to the issuance of a final order or decision. Analysis of results and challenges: The Appeals Commission"s FY2025 docket contained cases filed in FY2025 and previous fiscal years, as well as cases remanded from the Alaska Supreme Court. On the FY2025 docket, the average time from filing of an appeal or petition for review to the issuance of a final order or decision in cases closed was 170 days, with 92 percent of those cases being closed in less than 360 days from the filing of the appeal or petition for review. In addition to continuing a high level of compliance with the statute, the Appeals Commission has been able to close 75 percent of cases filed within 250 days of receiving the case. Target Last Modified: 11/14/2025

B1: Core Service - Conduct timely Workers" Compensation hearings.

Target #1: All written decisions will be issued within 30 days of record closure. Analysis of results and challenges: The Alaska Workers" Compensation Board hears claims regarding disputes of entitlement to benefits under the Alaska Workers" Compensation Act. After the hearing record closes, the division has 30 days to complete its work and write a formal decision and order based on the board"s determination. Those determinations will either allow or disallow an injured worker various benefits under the Alaska Workers" Compensation Act. In FY2025, the division did not meet the 100 percent target of issuing a written decision within 30 days of a determination. The average number of days after record closure to decision issuance was 17 days, more difficult cases, typically with enormous factual records, took significantly longer. The Alaska Supreme Court requires decisions to include extensive factual findings increases the time required to write legally and factually complex decisions. The division will continue to work toward the goal of issuing all decisions within 30 days of record closure. Target Last Modified: 12/09/2025

Target #2: Hearings will be scheduled within an average of 90 days from receipt of readiness for hearings. Average Number of Days Between Request for Workers" Compensation Hearing and Hearing Date Fiscal Year Average FY 2025 66 FY 2024 86 FY 2023 73 FY 2022 96 FY 2021 124 FY 2020 92 FY 2019 81 Analysis of results and challenges: The division met and improved this target in FY2025. Once parties are ready to go to a hearing, the division offers parties requesting a hearing the first available hearing date. In most instances, it is up to the parties or their representatives whether they accept that hearing date. Frequently, one or both parties do not accept the earliest hearing date available. Previously, the second independent medical evaluation (SIME) process was used as a litigation strategy and increased the average days between a hearing request and hearing date. A recent regulatory change eliminates the unnecessary delay in SIME dispute hearings which should close this gap going forward. Target Last Modified: 12/09/2025

B2: Core Service - Operate a timely and efficient appeals program.

Target #1: Issue final Workers" Compensation Appeals Commission decisions within an average of 90 days of record closure. Methodology: The average number of days from record closure to issuance of a final decision is for published final decisions only and is not adjusted for cases with decisions on reconsideration, decisions on remand from the Alaska Supreme Court, or unpublished orders. Analysis of results and challenges: In FY2025, the Appeals Commission issued five published written final decisions on the merits of appeals, of which 100 percent were issued within 90 days of record closure. The average number of days between record closure and issuance of a final written decision on the merits of an appeal was 65 days. In FY2025, the Appeals Commission issued 60 unpublished orders in addition to the five published decisions. Target Last Modified: 11/17/2025

C: Result -More Alaskans available for jobs.

Target #1: Requests for reimbursement from the Fishermen"s Fund will be paid within 30 days of receipt. Methodology: Includes new and existing claims that have been found eligible for Fish Fund benefits and were processed. Average Number of Days to Process a Fishermen"s Fund Claim Fiscal Year # of claims paid FY 2025 137 FY 2024 145 FY 2023 208 FY 2022 150 FY 2021 143 FY 2020 197 FY 2019 230 Analysis of results and challenges: In FY2025, the number of claims received by the Fishermen"s Fund totaled 167. Of the 167 claims, 137 were approved for benefits (125 by fund administration, two by the Fishermen"s Fund Council, and 10 by Protection and Indemnity Insurer). Out of the 125 claims approved by the fund, 80 were paid within 30 days or less. There were 54 claims paid 31 days or more after receipt. The average number of days from filed petition for benefits to approval on claims approved by the fund administration was 32 days. The Fund processed benefit payments for 138 claims (including new and existing claims). A total of 489 bill payments were issued by the Fund. For FY2025, four claims were filed and approved for vessel owner reimbursement of paid deductible. Target Last Modified: 12/09/2025

Target #2: 20 percent of injured workers eligible for reemployment benefits complete a viable retraining plan. Percent of Eligible Injured Workers Who Completed a Retraining Plan Fiscal Year # Eligible # Completing Plan % Completing FY 2025 78 3 3.85% FY 2024 73 3 4.11% FY 2023 76 9 11.8% FY 2022 71 9 12.7% FY 2021 90 7 7.7% FY 2020 96 10 10.4% FY 2019 136 11 8.1% Analysis of results and challenges: The number of employees eligible for reemployment plans increased slightly in FY2025, while the number of completed plans remained consistent. As a result, the percentage of completed plans decreased. In FY2025, 26 injured workers determined eligible for reemployment benefits exited the reemployment benefits system by selecting the job dislocation benefit under AS 23.30.041(g)(2); an additional 54 injured workers found eligible settled reemployment benefits in a Compromise and Release agreement at some point after eligibility and prior to plan completion. These two factors significantly limit the number of injured workers available to participate in a retraining plan. Also, as training costs continue to rise, it becomes more difficult for rehabilitation specialists to develop retraining plans within the $13,300 statutory limit under AS 23.30.041(l). Finally, for workers that have been in the workforce for a number of years, the statutory two-year time limit on retraining plans is not always sufficient for that subset of workers. Target Last Modified: 11/17/2025

C1: Core Service - Process Fishermen"s Fund claims timely.

Target #1: Keep the number of days it takes to get the Fishermen"s Fund Advisory and Appeals Council"s approval to within 90 days. Average Number of Days to get Fishermen"s Fund Council"s Approval Fiscal Year Target YTD Total FY 2025 90 91 FY 2024 90 210 FY 2023 90 110 FY 2022 90 142 FY 2021 90 83 FY 2020 90 53 FY 2019 90 83 Analysis of results and challenges: The Fishermen"s Fund Council reviews all claims denied by the Fund Administrator, all applications for benefits that exceed the Fund Administrator"s statutory limit, and all requests to extend duration of care. The council meets twice a year. In FY2025, the Council reviewed 28 claims. Of the 28 claims, nine were appeals. The Council approved six of the appealed claims and denied three. The Council also reviewed 19 claims denied by the fund, concurred with 13 denials, and reversed six (requested information was submitted before the Council meeting). The average number of days from filed appeal petition for benefits to approval on claims approved by the Fishermen"s Fund Council was 91 days. Target Last Modified: 12/09/2025

C2: Core Service - Administer a vocational rehabilitation benefits and training program for injured workers.

Target #1: Reduce the percentage of retraining plans that are returned to the rehabilitation specialists by 20 percent per year until no plans need to be returned. Percent of Retraining Plans Returned to Rehabilitation Specialists Fiscal Year # Plans Submitted # of Plans Returned Percent Returned FY 2025 25 0 0% FY 2024 24 3 12.5% FY 2023 36 3 8.3% FY 2022 30 4 13.3% FY 2021 40 7 17.5% FY 2020 45 5 15% FY 2019 58 4 6.9% Analysis of results and challenges: In FY2025, there were slightly more plans submitted and no plans returned to rehabilitation specialists. This is primarily a function of the number of disputed plans that require Reemployment Benefits Administrator (RBA) review. Nearly all plans submitted for review by the RBA are suspended or denied because they do not meet statutory requirements. The mental and physical capacities of the injured worker can also provide barriers to developing a plan that meets the requirements of the law. Plans which neither party has concerns about are agreed to without RBA review. Target Last Modified: 11/17/2025

Target #2: Review of all pending retraining plans will be performed quarterly. Analysis of results and challenges: The Reemployment Benefits Administrator reviewed 100 percent of all pending retraining plans quarterly in FY2025 and has done so on a quarterly basis for the past seven fiscal years, except for two quarters when the position was vacant in FY2019 and FY2020. Target Last Modified: 12/09/2025

Last refreshed: 02/13/2026 05:00 pm