By: James Panther

After input from stakeholders including management, labor, insurers, medical professionals, attorneys and the DWD, Wisconsin has enacted 2025 Wisconsin Act 145, which introduces significant procedural and substantive updates to the Worker’s Compensation Act.

The Act went into effect April 1, 2026, with specific applicability rules for pending claims.  The most notable changes are as follows:

1. Permanent Partial Disability (PPD) Rate Increases and “Stacking”

The Act continues the trend of incremental increases to the maximum PPD weekly rate.

Injury Date		Max PPD Rate
On or after Jan 1, 2025		$446
On or after April 1 , 2026		$454
On or after Jan 1, 2027		$462

The Act further eliminates “stacking” of permanent partial disability benefits for subsequent surgeries on the same limb based on minimum ratings contained in DWD § 80.32. Ratings are no longer strictly aggregated. Instead, the rating is determined by a practitioner’s opinion but cannot be lower than the rating for the first procedure. Use of the term “limb” limits the applicability of this new rule to scheduled body parts only (fingers, hands, arms, legs, etc.), and not the spine.

2. Clarity Regarding Tolling of the Statute of Limitations (SOL):

Act 145 creates a new statute that clarifies that the filing of an application for hearing tolls the statute of limitations from the date of filing until the final disposition of the case, but the statute of limitations will not be extended on the back end by the filling of a hearing application. Wis. Stat. § 102.17(4)(a)1.

1. 1. 1. “Final Disposition” as the End of the Tolling Period

The Act defines the tolling period (the time the clock is paused) as the window between the filing of the application and the final disposition of the case. Once an order of dismissal is entered, even if it is without prejudice, the case has reached a “disposition” that terminates that pause.

1. 1. 2. The Extension Cap (The Key Trap)

The most salient point for adjusters is the limitation on how much the SOL is extended. The Act specifies that tolling cannot extend the period beyond the date of final disposition or the original expiration date, whichever is later.

Example:

• Original SOL Expiration: January 1, 2026.
• Application Filed: January 1, 2025 (with 1 year remaining).
• Dismissal: January 1, 2027 (1 year after the original deadline).
• Result: Under the new Act, the “extension” ends exactly on January 1, 2027 (the date of final disposition), as this date is later than the original SOL expiration on January 1, 2026. The claimant does not get their remaining 1 year added to the back end of the dismissal. The claim is effectively barred the next day.

1. 1. 3. Does this new law apply to previous dates of injury or open claims?

Based on the text of 2025 Wisconsin Act 145 and the structural analysis of its “Initial Applicability” sections, Wis. Stat. § 102.17(4)(a)1 appears to apply prospectively only, as it is omitted from the specific list of retroactive rules in Section 20. Moreover, while Section 52 creates a new applicability section for a previous act (2023 Act 213), stating that the treatment of section 102.17(4)(a) (the overarching paragraph) applies regardless of the date of injury, section 102.17(4)(a)1 is a newly created subsection in Act 145, distinct from the (4)(a) language treated in the 2023 Act.

Adjuster Takeaway

For adjusters, this new rule means that once the Department dismisses the application, the “safety net” of the pending application is removed, and the claimant may find themselves barred from refiling by the very next day if the original statute of limitations has already run. This rule also applies to dismissals without prejudice for a “parked” or non-justiciable claim where an application was filed to simply toll the statute of limitations.  It is likely, however, that this new rule only applies to cases with dates of injury of April 1, 2026, or later, but litigation on this issue is anticipated.

3. Other Procedural Changes

Act 145 also creates the following, which apply retroactively, or regardless of the date of injury.

1. 1. 1. Undisputed Claims: The Department is now required to issue an order dismissing the Application if at any time it determines that there is no dispute or controversy for which the parties are seeking a determination. Wis. Stat. § 102.17(1)(a)5.
      2. Closing Compromised Cases: Eliminating a recent administrative hurdle for carriers, when a compromise is approved, the Department is now required to dismiss the pending Application and formally close the case. Wis. Stat. § 102.18(1)(a).
      3. Resumption after Order: Specifies that the statute of limitations continues to run on the date the order is issued approving a compromise agreement Wis. Stat. § 102.17(4)(a)2.

The rationale for this retroactivity is the administrative “housecleaning” of the Department’s docket. Thousands of applications for hearing are filed annually, but many are kept “pending” for years while the claimant undergoes medical monitoring, even if no current controversy exists. By making these rules retroactive, there is a clear and present avenue to dismiss these stagnant applications, forcing the statute of limitations to resume running and eventually providing insurers with claim closure.

4. Medical Evidence and Case Management

Several updates affect how medical evidence is presented and how carriers interact with healthcare providers.

• Expanded Practitioner Reports: WKC-16-B Reports authored by physician assistants and advanced practice registered nurses are now admissible with respect to the diagnosis, necessity of treatment and cause/extent of disability.  Audiologists are now included in the list of practitioners whose certified reports constitute prima facie evidence, and their reports are admissible for the diagnosis, necessity of treatment, and the cause/extent of hearing loss.
• DVR Records: Records from the Department of Vocational Rehabilitation are now considered prima facie evidence and “substantial evidence” if served 15 days prior to a hearing.
• Hospital Access for Case Management: Hospitals cannot restrict insurer case management personnel from accessing records or participating in discharge planning from an inpatient stay. This is specifically intended to ensure appropriate housing and transportation are arranged, and it does not grant the carrier the right to direct medical care.

5. Expanded PTSD Coverage for First Responders

The Act expands the categories of employees eligible for “mental-only” PTSD claims without the “unusual stress” requirement.

• New Eligible Classes: The definition now includes Emergency Medical Responders (EMR) and Emergency Medical Services Practitioners.
• Standard: These individuals can claim PTSD as a compensable injury if the diagnosis is made by a licensed psychiatrist or psychologist, and the conditions of liability are met, even in the absence of a physical injury.

6. Miscellaneous Provisions

• Direct Payment of Compromises: Compromise payments, including lump sums, can now be made directly to the employee without the requirement of a mandatory deposit into a restricted financial institution account.
• Bad Faith Exclusivity: The Act clarifies that the penalty for malice or bad faith (the lesser of 200% of compensation or $30,000) is the exclusive remedy. If this penalty is imposed, the Department cannot stack additional interest or increased payments under sections 102.22(1) or 628.46(1).
• Uninsured Employer Penalties: The Act implements a tiered penalty system for uninsured employers, increasing significantly for 3rd and 4th violations (up to $4,000 or 4x the premium).
• Reverse Shoulder Replacements: Added to the list of traumatic injuries that have no statute of limitations, joining hip, knee, and total shoulder replacements.

Maximizing Claim Outcomes Under Act 145

The implementation of 2025 Wisconsin Act 145 introduces significant changes to the Wisconsin worker’s compensation system.  At Lindner & Marsack, we are dedicated to helping our clients master these changes and leverage them to achieve superior claim outcomes. We invite you to contact us to discuss how we can support your organization through:

• Customized Training & Presentations: We offer in-depth training sessions for adjusters on navigating these new changes as well as other timely issues in the Wisconsin worker’s compensation insurance landscape.
• Inventory Audits and SOL Triage: We are available to audit your open inventory to identify “parked” or non-justiciable claims that may now be eligible for dismissal and the subsequent resumption of the statute of limitations.
• File-Specific Strategy: If you have questions regarding the application of these new rules or the potential “tolling trap” for a specific file, we are available for targeted legal opinions and strategy sessions.

Please reach out to Attorney James E. Panther at 414-223-3135 or jpanther@lindner-marsack.com, or any Lindner & Marsack worker’s compensation attorney with any questions, or to schedule a training presentation for your team. We look forward to partnering with you to ensure your claims handling remains strategically sound and compliant under the new law.