AK SB206

Establishes a new workers' compensation stay-at-work benefits program allowing injured employees to remain employed with their current employer while receiving rehabilitation services, available as an alternative to reemployment benefits.

Reduces the trigger for notifying employees of reemployment benefits eligibility from 45 consecutive days to 25 consecutive days of total inability to work, with employees required to elect between stay-at-work or reemployment benefits programs within 10 days.

Creates a program coordinator position within the division and requires rehabilitation specialists to develop stay-at-work plans within 60 days; stay-at-work benefits terminate two years after plan approval and cost is capped at $3,000 plus specialist fees, paid by the employer.

Defines grounds for program ineligibility including employee non-cooperation (maintaining contact with specialist, complying with plan responsibilities), failure to timely elect participation, or prior successful rehabilitation on similar claims; allows employers to terminate participation at any time before plan completion.

Reduces employer injury notice requirement from 30 days to 15 days and extends the claim filing deadline to include claims filed within two years after the last payment of stay-at-work benefits; effective January 1, 2025.