Workers’ Compensation Benefits Guaranty Fund
The Alaska Workers’ Compensation Benefits Guaranty Fund (Fund) was instituted by the Alaska Legislature in 2005, and its applicability extends to injuries that occurred on or after November 7, 2005. The Fund serves the purpose of aiding workers who sustained injuries while employed by an uninsured employer—defined as an employer lacking workers’ compensation insurance at the time of injury. The revenue for the Fund is generated through civil penalties imposed on such uninsured employers.
Eligibility Criteria for Fund Benefits
To be eligible for benefits from the Fund, certain conditions must be satisfied:
- The injured individual must have been an employee of an uninsured employer when the injury occurred.
- The employee’s work for the employer must have been a significant factor in causing the injury or illness.
- Filing requirements mandate that the injured worker submit claims for benefits against both the uninsured employer and the Fund. These claims should be filed within two years of the injury or the realization that the injury or illness resulted from work-related activities.
Additional criteria include:
- The injured worker’s claim against the employer should result in an order from the Alaska Workers’ Compensation Board (Board) directing the employer to provide benefits.
- The Board must find the employer in default of the aforementioned order.
Fund Recovery and Employer Responsibilities
In cases where the Fund disburses workers’ compensation benefits to an injured worker of an uninsured employer, the Fund holds the legal right to recover those costs from the uninsured employer, encompassing associated legal expenses. Consequently, it is in the best interest of the uninsured employer to either provide benefits to the injured worker or mount a defense against the claim for benefits by the injured worker.
