Wisconsin 2025 Act 145: PPD Rates Rise, Volunteer First-Responder PTSD Coverage Expands

Wisconsin has enacted 2025 Wisconsin Act 145, a package of amendments to the Worker's Compensation Act signed by Governor Tony Evers, with most provisions taking effect April 1, 2026, according to the Department of Workforce Development's plain-language summary of the act. The act raises indemnity benefit levels, extends PTSD coverage to volunteer first responders, adds new anti-fraud provisions, and makes several procedural and eligibility changes.

Permanent partial disability rate increases

The act raises the statutory maximum weekly permanent partial disability (PPD) benefit in two steps:

• $454 per week for injuries occurring on and after April 1, 2026.
• $462 per week for injuries occurring on and after January 1, 2027.

The increases directly affect claim reserves and benefit calculations on open and new PPD claims in Wisconsin, and require actuarial and system updates for any insurer or TPA with Wisconsin exposure.

PTSD coverage extended to volunteer first responders

Act 145 brings post-traumatic stress disorder coverage under the Wisconsin WC statute to all emergency medical responders, emergency medical service practitioners, and firefighters regardless of employment or volunteer status. The change mirrors the PTSD coverage framework established for law enforcement officers and full-time (paid) firefighters by 2021 Wisconsin Act 29.

Before Act 145, volunteer firefighters and volunteer EMRs generally lacked equivalent statutory WC coverage for PTSD arising out of their service. Municipal employers, counties, and fire districts that rely on volunteer departments should now expect PTSD claims from those workers to be covered under their WC policies.

Shoulder replacements added to traumatic injury no-SOL list

Shoulder replacements and reverse shoulder replacements are now classified as serious traumatic injuries for statute-of-limitations purposes, joining the existing category of injuries for which no limitation period applies. Carriers and TPAs handling Wisconsin WC claims involving shoulder surgery should update claim-handling protocols to reflect that these cases are no longer subject to a bar period.

PTD supplemental benefit eligibility broadened

The act extends permanent total disability (PTD) supplemental benefit eligibility to cover injuries occurring before January 1, 2020. Prior law limited supplemental benefits to injuries occurring before January 1, 2003. The broader window may revive or increase indemnity obligations on long-standing PTD claims. Carriers managing Wisconsin PTD caseloads should audit pre-2020 injury dates for supplemental benefit eligibility.

Compromise agreement procedures tightened

Orders approving compromise settlement agreements must now include dismissal of any pending hearing application in the same claim. Cases are to be closed when a compromise agreement is approved. The change eliminates a procedural gap in which an approved compromise could leave a hearing application technically open, creating downstream administrative and reporting uncertainty about claim finality.

New criminal insurance fraud provisions

Two new categories join the list of criminally punishable WC insurance fraud in Wisconsin under Act 145:

• Submitting false or fraudulent applications for workers' compensation insurance coverage.
• Submitting insurance applications that misclassify employees to artificially reduce premiums.

The misclassification provision targets a persistent source of market distortion — employers underreporting payroll or reclassifying workers into lower-rated classifications to avoid accurate WC premiums.