AR HB1955

Modifies Arkansas Code § 11-9-410(a)(1) to clarify that filing a workers' compensation claim does not prevent an employee from suing a third party, and requires the employer or carrier to receive reasonable notice and opportunity to join the action.

Changes the employer or carrier's lien on third-party recovery from two-thirds (2/3) to one-half (1/2) of net proceeds remaining after collection costs.

Establishes an absolute right for employers, carriers, or self-insured entities to pursue subrogation actions against third parties and guarantees the compensation beneficiary receives at least one-half (1/2) of recovered amounts (changed from one-third).

Permits employers, carriers, or self-insured entities to maintain third-party actions against uninsured or underinsured motorist coverage.

Amends Arkansas Code § 11-9-702(a)(4) to make claim dismissal mandatory (changed from permissive "may" to "shall") after six months without a bona fide hearing request, while allowing refiling within applicable limitation periods.