Wisconsin Statutes
Wis. Stat. § 102.81 (2026)
Compensation for injured employee of uninsured employer
✓ current as of July 2026
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102.81(1)(a)(a) If an employee of an uninsured employer, other than an employee who is eligible to receive alternative benefits under s. 102.28 (3), suffers an injury for which the uninsured employer is liable under s. 102.03, the department or the department’s reinsurer shall pay to or on behalf of the injured employee or to the employee’s dependents an amount equal to the compensation owed them by the uninsured employer under this chapter except penalties and interest due under ss. 102.16 (3), 102.18 (1) (b) 3. and (bp), 102.22 (1), 102.35 (3), 102.57, and 102.60.
102.81(1)(b)(b) The department shall make the payments required under par. (a) from the uninsured employers fund, except that if the department has obtained reinsurance under sub. (2) and is unable to make those payments from the uninsured employers fund, the department’s reinsurer shall make those payments according to the terms of the contract of reinsurance.
102.81(1)(c)1.1. The department shall pay a claim under par. (a) in excess of $2,000,000 from the uninsured employers fund in the first instance. If the claim is not covered by excess or stop-loss reinsurance under sub. (2), the secretary of administration shall transfer from the appropriation account under s. 20.445 (1) (ra) to the uninsured employers fund as provided in subds. 2. and 3. an amount equal to the amount by which payments from the uninsured employers fund on the claim are in excess of $2,000,000.
102.81(1)(c)2.2. Each calendar year the department shall file with the secretary of administration a certificate setting forth the number of claims in excess of $2,000,000 in the preceding year paid from the uninsured employers fund, the payments made from the uninsured employers fund on each such claim in the preceding year, and the total payments made from the uninsured employers fund on all such claims and, based on that information, the secretary of administration shall determine the amount to be transferred under subd. 1. in that calendar year.
102.81(1)(c)3.3. The maximum amount that the secretary of administration may transfer under subd. 1. in a calendar year is $500,000. If the amount determined under subd. 2. is $500,000 or less, the secretary of administration shall transfer the amount determined under subd. 2. If the amount determined under subd. 2. exceeds $500,000, the secretary of administration shall transfer $500,000 in the calendar year in which the determination is made and, subject to the maximum transfer amount of $500,000 per calendar year, shall transfer that excess in the next calendar year or in subsequent calendar years until that excess is transferred in full.
102.81(2)(2) The department may retain an insurance carrier or insurance service organization to process, investigate and pay claims under this section and may obtain excess or stop-loss reinsurance with an insurance carrier authorized to do business in this state in an amount that the secretary determines is necessary for the sound operation of the uninsured employers fund. In cases involving disputed claims, the department may retain an attorney to represent the interests of the uninsured employers fund and to make appearances on behalf of the uninsured employers fund in proceedings under ss. 102.16 to 102.29. Section 20.930 and all provisions of subch. IV of ch. 16 do not apply to an attorney hired under this subsection. The charges for the services retained under this subsection shall be paid from the appropriation under s. 20.445 (1) (sm). The cost of any reinsurance obtained under this subsection shall be paid from the appropriation under s. 20.445 (1) (sm).
102.81(3)(3) An injured employee of an uninsured employer or his or her dependents may attempt to recover from the uninsured employer, or a 3rd party under s. 102.29, while receiving or attempting to receive payment under sub. (1).
102.81(4)(4) An injured employee, or the dependent of an injured employee, who received one or more payments under sub. (1) shall do all of the following:
102.81(4)(a)(a) If the employee or dependent begins an action to recover compensation from the employee’s employer or a 3rd party liable under s. 102.29, provide to the department a copy of all papers filed by any party in the action.
102.81(4)(b)(b) If the employee or dependent receives compensation from the employee’s employer, pay to the department the lesser of the following:
102.81(4)(b)1.1. The amount after attorney fees and costs that the employee or dependent received under sub. (1).
102.81(4)(b)2.2. The amount after attorney fees and costs that the employee or dependent received from the employer.
102.81(4)(c)(c) If the employee or dependent receives compensation from a 3rd party that is liable under s. 102.29, pay to the department the proceeds as specified under s. 102.29 (1) (b).
102.81(5)(5) The department of justice may bring an action to collect a payment under sub. (4) (b) or (c).
102.81(6)(a)(a) Subject to par. (b), an employee, a dependent of an employee, an uninsured employer, a 3rd party who is liable under s. 102.29 or the department may enter into an agreement to settle liabilities under this chapter.
102.81(7)(7) This section first applies to injuries occurring on the first day of the first July beginning after the day that the secretary files a certificate under s. 102.80 (3) (a), except that if the secretary files a certificate under s. 102.80 (3) (ag) this section does not apply to claims filed on or after the date specified in that certificate.
102.81 HistoryHistory: 1989 a. 64; 1995 a. 117; 2003 a. 144; 2005 a. 172, 253, 410; 2007 a. 97; 2009 a. 206; 2015 a. 55, 180; 2021 a. 232, 267; 2023 a. 213; 2025 a. 145.
102.81 AnnotationSection 102.18 (1) (bp) does not govern the conduct of the Department of Workforce Development (DWD) or its agent and does not impose any penalty on DWD or its agent for bad faith conduct in administering the Uninsured Employers Fund. Section 102.18 (1) (bp) constitutes the exclusive remedy for the bad faith conduct of an employer or an insurance carrier. Because s. 102.18 (1) (bp) does not apply to DWD’s agent, it does not provide an exclusive remedy for the agent’s bad faith. Moreover, sub. (1) (a) exempts DWD and its agent from paying an employee the statutory penalties and interest imposed on an employer or an insurance carrier for their misdeeds, but nothing in sub. (1) (a) exempts DWD or its agent from liability for its bad faith conduct in processing claims. Aslakson v. Gallagher Bassett Services, Inc., 2007 WI 39, 300 Wis. 2d 92, 729 N.W.2d 712, 04-2588.
Notes of Decisions
Cited in 7
cases (2 in the last 5 years), 1996–2022 · leading case: Aslakson v. Gallagher Bassett Servs., Inc., 2007 WI 39 (Wis. 2007).
Aslakson v. Gallagher Bassett Servs., Inc., 2007 WI 39 (Wis. 2007). “¶ 2 The court of appeals reversed the order of the circuit court, holding that Wis. Stat. §§ 102.81 (1)(a) and 102.18(1)(bp) (2003-04) [2] and Wis.”
Acuity Mut. Ins. v. Olivas, 2007 WI 12 (Wis. 2007). “Wis. Stat. § 102.81 (1). The fund will then seek reimbursement for payments made.”
Aslakson v. Gallagher Bassett Servs., Inc., 2006 WI App 35 (Wis. Ct. App. 2006). “The fund administrator asserts that Wis. Stat. § 102.81 (l)(a) (2003-04) 2 and Wis.”
Armstrong v. Milwaukee Mut. Ins., 549 N.W.2d 723 (Wis. 1996). “Although both parties agree that Jolly is a keeper as defined by the statute, because she is not a party to this action and there are no legal issues which concern her, we will not address her involvement further. [4] The court of appeals indicated that it was undisputed that,…”
Noyce v. Aggressive Metals, Inc., 2016 WI App 58 (Wis. Ct. App. 2016). “…the Fund for payments such as the disability benefits and medical expenses that the Fund provided Noyce here. See Wis. Stat. §§ 102.81 and 101.82.”
State of Wisconsin v. Hansen (E.D. Wis. 2021). “82 (2)(a) are used to make payments to eligible claimants pursuant to Wis. Stat. §102.81 (1). The collection of the penalties benefits the State by allowing it to meet its statutory obligation to injured employees of uninsured employers.”
SK Mgmt., LLC v. Donald L. King (Wis. Ct. App. 2022). “§ 102.81 (2019- 20).1 The Fund then demanded reimbursement from SK Management.”
— Wis. Stat. § 102.81(1) — 2 cases
Aslakson v. Gallagher Bassett Servs., Inc., 2007 WI 39 (Wis. 2007). “¶ 2 The court of appeals reversed the order of the circuit court, holding that Wis. Stat. §§ 102.81 (1)(a) and 102.18(1)(bp) (2003-04) [2] and Wis.”
Acuity Mut. Ins. v. Olivas, 2007 WI 12 (Wis. 2007). “Wis. Stat. § 102.81 (1). The fund will then seek reimbursement for payments made.”
— Wis. Stat. § 102.81(1)(a) — 1 case
Aslakson v. Gallagher Bassett Servs., Inc., 2007 WI 39 (Wis. 2007). “¶ 2 The court of appeals reversed the order of the circuit court, holding that Wis. Stat. §§ 102.81 (1)(a) and 102.18(1)(bp) (2003-04) [2] and Wis.”
— Wis. Stat. § 102.81(2) — 1 case
Aslakson v. Gallagher Bassett Servs., Inc., 2007 WI 39 (Wis. 2007). “¶ 2 The court of appeals reversed the order of the circuit court, holding that Wis. Stat. §§ 102.81 (1)(a) and 102.18(1)(bp) (2003-04) [2] and Wis.”
— Wis. Stat. § 102.81(l)(a) — 1 case
Aslakson v. Gallagher Bassett Servs., Inc., 2007 WI 39 (Wis. 2007). “¶ 2 The court of appeals reversed the order of the circuit court, holding that Wis. Stat. §§ 102.81 (1)(a) and 102.18(1)(bp) (2003-04) [2] and Wis.”
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