The Wisconsin Department of Workforce Development and state Department of Justice have reached a $200,000 agreement in the Department of Workforce Development’s claim filed in the Briggs & Stratton Corp. bankruptcy case.
The claim, which was filed in December of 2020, was for $9,981,290. According to the filing, Briggs & Stratton Corp. was self-insured for Wisconsin worker's compensation liabilities from Dec. 3, 1957 to Aug. 25, 2020. Because of their bankruptcy case, Briggs & Stratton defaulted on its self-insured worker's compensation liabilities.
According to a press release from the Department of Workforce Development, a $5 million surety bond will also be available to pay the worker's compensation claims of Briggs & Stratton Corp. A Self-Insured Employers Liability Fund (SIELF) will be used to pay out any claims if both the $200,000 and $5 million surety bond run out. The SIELF is funded by assessments on other self-insured employers when needed. All worker's compensation claims are paid directly or indirectly by employers. No taxpayer funds are used.
"Wisconsin’s worker’s compensation system provides critical security for Wisconsinites who are injured at work," said state Attorney General Josh Kaul in a statement. "This outcome will help protect the Self-Insured Employers Liability Fund and, in turn, save money for self-insured employers in Wisconsin."
Briggs & Stratton Corp. filed for Chapter 11 bankruptcy in a Missouri federal court in July of 2020. The company completed its sale to an affiliate of New York-based private equity firm KPS Capital Partnersin September of 2020.