TOPEKA — Gov. Laura Kelly signed legislation updating the state’s worker compensation system Thursday to place into law details of compromises negotiated by labor and business interests that were unanimously endorsed in the House and Senate.

The legislation substantially increased maximum compensation for injured workers or their dependents and added a cost-of-living adjustment to those benefits beginning in July 2027.

Under Senate Bill 430, the parties would exchange medical records in a timely way, limit use of independent medical examinations and could settle cases could be without a formal hearing.

The bill sent to the governor in late March would reduce the Social Security retirement offset for certain disability benefits and extend worker compensation coverage to members of the Kansas National Guard.

“This legislation is a win for our workforce, our businesses and organized labor,” Kelly said. “The reforms in this legislation will create a more just and efficient workers compensation system that increases the benefits for injured workers while creating administrative efficiencies and maintaining stability for businesses.”

Rep. Jason Probst, D-Hutchinson, said the deal followed years of erosion in basic protections for employees under the system relied upon to compensate people for injuries occurring on the job.

“This compromise package signals a shift in how we will treat and assist employees in our state who suffer a tragic workplace injury,” he said.

The Kansas Trial Lawyers Association and the Kansas Chamber took part of year-long conversations with the Kansas AFL-CIO and other interest groups about details of the legislation. Four attorneys aligned with labor interests and four attorneys with business interests took part in negotiations.

“When it comes to crafting good policy when both sides of the issue are so polarized, a lot of collaboration is needed. Thankfully, experienced, level-headed professionals on both sides of this issue were able and willing to work together,” said Rep. Sean Tarwater, a Stilwell Republican who chaired the House commerce committee. “My job was to help navigate the legislative process, and their collaboration made it easy.”

Amber Shultz, secretary of the Kansas Department of Labor, said the bill represented a positive step toward a balance between realities of the business world and workers’ needs.

“We are proud to have come together with attorneys representing business and labor organizations to address the concerns of our stakeholders and contribute to a more fair and equitable system,” she said.