WORKERS’ COMPENSATION OVERVIEW OF NEW LAW PRESENTED BY PATRICIA “PAT” SECREST DIRECTOR...

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WORKERS’ COMPENSATION WORKERS’ COMPENSATION OVERVIEW OF NEW LAW OVERVIEW OF NEW LAW PRESENTED BY PRESENTED BY PATRICIA “PAT” SECREST PATRICIA “PAT” SECREST DIRECTOR DIRECTOR DIVISION OF WORKERS’ COMPENSATION DIVISION OF WORKERS’ COMPENSATION

Transcript of WORKERS’ COMPENSATION OVERVIEW OF NEW LAW PRESENTED BY PATRICIA “PAT” SECREST DIRECTOR...

Page 1: WORKERS’ COMPENSATION OVERVIEW OF NEW LAW PRESENTED BY PATRICIA “PAT” SECREST DIRECTOR DIVISION OF WORKERS’ COMPENSATION.

WORKERS’ COMPENSATIONWORKERS’ COMPENSATIONOVERVIEW OF NEW LAWOVERVIEW OF NEW LAW

PRESENTED BYPRESENTED BY

PATRICIA “PAT” SECRESTPATRICIA “PAT” SECREST

DIRECTORDIRECTOR

DIVISION OF WORKERS’ COMPENSATIONDIVISION OF WORKERS’ COMPENSATION

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WORKERS COMPENSATIONWORKERS COMPENSATIONOVERVIEW OF NEW LAWOVERVIEW OF NEW LAW

CHANGES PURSUANT TO SENATE BILLS 1 & CHANGES PURSUANT TO SENATE BILLS 1 & 130 SIGNED BY GOV. BLUNT MARCH 30, 2005130 SIGNED BY GOV. BLUNT MARCH 30, 2005

MOST CHANGES WILL BE EFFECTIVE ON MOST CHANGES WILL BE EFFECTIVE ON AUGUST 28, 2005AUGUST 28, 2005

CHANGES REGARDING ADMINISTRATIVE CHANGES REGARDING ADMINISTRATIVE LAW JUDGES AND LEGAL ADVISORS LAW JUDGES AND LEGAL ADVISORS EFFECTIVE JANUARY 1, 2006EFFECTIVE JANUARY 1, 2006

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WORKERS COMPENSATIONWORKERS COMPENSATIONOVERVIEW OF NEW LAWOVERVIEW OF NEW LAW

Disclaimer: Each Workers’ Disclaimer: Each Workers’ Compensation case is fact specific. The Compensation case is fact specific. The interpretation of the law and changes interpretation of the law and changes thereto will be determined by the thereto will be determined by the Administrative Law Judges, Labor & Administrative Law Judges, Labor & Industrial Relations Commission or the Industrial Relations Commission or the Appellate Courts of the State based upon Appellate Courts of the State based upon the issues and the evidence presented.the issues and the evidence presented.

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STRICT CONSTRUCTIONSTRICT CONSTRUCTION

The Labor & Industrial Relations The Labor & Industrial Relations Commission and the Division of Workers’ Commission and the Division of Workers’ Compensation, Administrative Law Compensation, Administrative Law Judges, Associate Administrative Law Judges, Associate Administrative Law Judges and reviewing courts will be Judges and reviewing courts will be required to interpret the workers’ required to interpret the workers’

compensation law compensation law strictlystrictly..

Section 287.800.1Section 287.800.1

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STRICT CONSTRUCTIONSTRICT CONSTRUCTION

The Commission, Division and The Commission, Division and the reviewing courts will strictly the reviewing courts will strictly interpret the words to further the interpret the words to further the purpose and object of the purpose and object of the statutory changes to the workers’ statutory changes to the workers’ compensation law as written by compensation law as written by the legislature.the legislature.

Section 287.800.1Section 287.800.1

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STRICT CONSTRUCTIONSTRICT CONSTRUCTION

The Administrative Law Judges The Administrative Law Judges and the Labor & Industrial and the Labor & Industrial Relations Commission shall Relations Commission shall weigh the evidence impartially weigh the evidence impartially without giving the benefit of without giving the benefit of doubt to any party when doubt to any party when resolving the factual conflicts. resolving the factual conflicts.

Section 287.800.2Section 287.800.2

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ABROGATION OF CASE LAWABROGATION OF CASE LAW

In applying the provisions of this chapter, it is In applying the provisions of this chapter, it is the intent of the legislature to reject and the intent of the legislature to reject and abrogate (abolish) certain earlier case law abrogate (abolish) certain earlier case law interpretations. This was done by the interpretations. This was done by the legislature to emphasize the importance of new legislature to emphasize the importance of new definitions and the strict interpretation of the definitions and the strict interpretation of the law by the Labor and Industrial Relations law by the Labor and Industrial Relations Commission, Division of Workers’ Commission, Division of Workers’ Compensation and the Administrative Law Compensation and the Administrative Law Judges.Judges.

Section 287.020.10Section 287.020.10

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JURISDICTION

Chapter 287 RSMo applies to all cases Chapter 287 RSMo applies to all cases within its provisions, except to those within its provisions, except to those exclusively covered by any federal law. exclusively covered by any federal law.

Section 287.110 (1)Section 287.110 (1)

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JURISDICTION CONT. Chapter 287 RSMo applies to:Chapter 287 RSMo applies to:

All injuries received and occupational diseases All injuries received and occupational diseases contracted in Missouri;contracted in Missouri;

All injuries received and occupational diseases All injuries received and occupational diseases contracted outside Missouri under contract of contracted outside Missouri under contract of employment made in the State of Missouri, unless the employment made in the State of Missouri, unless the contract of employment provides otherwise,contract of employment provides otherwise,

All injuries received and occupational diseases All injuries received and occupational diseases contracted outside of Missouri where the employee’s contracted outside of Missouri where the employee’s employment was principally localized in Missouri employment was principally localized in Missouri within thirteen calendar weeks of the injury or within thirteen calendar weeks of the injury or diagnosis of the occupational disease.diagnosis of the occupational disease.

Section 287.110 (2Section 287.110 (2))

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BURDEN OF PROOF New New §287.808 has been added.§287.808 has been added.

The burden of establishing an affirmative The burden of establishing an affirmative defense is on the employer.defense is on the employer.

The employee or dependent has the burden of The employee or dependent has the burden of proving that he is entitled to compensation proving that he is entitled to compensation under the workers’ compensation law.under the workers’ compensation law.

In asserting any claim or defense based on a In asserting any claim or defense based on a factual proposition, the party asserting such factual proposition, the party asserting such claim or defense must establish that such claim or defense must establish that such proposition is more likely to be true than not proposition is more likely to be true than not true.true.

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DEFINITION OF EMPLOYEE Does not include an individual who is:Does not include an individual who is:

The owner, as defined by The owner, as defined by §301.010 (43), and§301.010 (43), and Operator of a motor vehicle which is Operator of a motor vehicle which is Leased or contracted with a driver,Leased or contracted with a driver, To a for-hire motor carrier operating within a To a for-hire motor carrier operating within a

commercial zone or operating under a commercial zone or operating under a certificate issued by the Missouri or United certificate issued by the Missouri or United States Department of Transportation or by States Department of Transportation or by any of its sub-agencies.any of its sub-agencies.

Section 287.020 (1)Section 287.020 (1)

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DEFINITION OF EMPLOYEE CONT.

The old subsection 6 of The old subsection 6 of §287.020 has been §287.020 has been deleted. The old subsection stated that:deleted. The old subsection stated that: A person who is employed by the same A person who is employed by the same

employer for more than five and one-employer for more than five and one-half consecutive work days shall for half consecutive work days shall for the purpose of this chapter be the purpose of this chapter be considered an “employee”.considered an “employee”.

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DEFINITION OF ACCIDENTDEFINITION OF ACCIDENTCHAPTER 287.020 RSMoCHAPTER 287.020 RSMo

Unexpected traumatic event or unusual strain Unexpected traumatic event or unusual strain identifiable by time and place of occurrence.identifiable by time and place of occurrence.

Producing objective symptoms of injury caused Producing objective symptoms of injury caused by a specific event during a single work shift.by a specific event during a single work shift.

Injury is not compensable if work was a Injury is not compensable if work was a triggering or precipitating factor.triggering or precipitating factor.

Injury should arise out of and in the course Injury should arise out of and in the course of employment.of employment.

Section 287.020.2Section 287.020.2

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DEFINITION OF INJURYDEFINITION OF INJURYPREVAILING FACTOR:PREVAILING FACTOR: Formerly for an Formerly for an injury to be compensable, employment had injury to be compensable, employment had to be to be a substantiala substantial factorfactor in causing the in causing the resulting medical condition or disability.resulting medical condition or disability.

Now, to be compensable the accident must Now, to be compensable the accident must be:be:

““THE PREVAILING FACTOR IN THE PREVAILING FACTOR IN CAUSING BOTH THE RESULTING CAUSING BOTH THE RESULTING MEDICAL CONDITION AND MEDICAL CONDITION AND DISABILITY.”DISABILITY.”

Section 287.020.3Section 287.020.3

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PREVAILING FACTORPREVAILING FACTOR

Definition - The prevailing Definition - The prevailing factor is defined to be the factor is defined to be the primary factor, in relation to any primary factor, in relation to any other factor, causing both the other factor, causing both the resulting medical condition and resulting medical condition and disability. disability.

Section 287.020.3(1)Section 287.020.3(1)

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IDIOPATHIC INJURIESIDIOPATHIC INJURIES

Idiopathic Injuries are Idiopathic Injuries are notnot compensable. compensable.

An idiopathic injury is one that is innate or is a An idiopathic injury is one that is innate or is a peculiar weakness personal to the employee, peculiar weakness personal to the employee, unrelated to employment.unrelated to employment.

The event results from some cause personal to The event results from some cause personal to the individual.the individual.

Section 287.020.3 (3)Section 287.020.3 (3)

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HEART ATTACKS, ETC.HEART ATTACKS, ETC.A cardiovascular(a disease of the heart or blood A cardiovascular(a disease of the heart or blood vessels), pulmonary (relating to, or affecting the vessels), pulmonary (relating to, or affecting the lungs), respiratory (relating to, used in, or lungs), respiratory (relating to, used in, or affecting respiration), or other disease, or affecting respiration), or other disease, or cerebrovascular accident (stroke) or myocardial cerebrovascular accident (stroke) or myocardial infarction (heart attack) suffered by an employee infarction (heart attack) suffered by an employee is not compensable unless . . . . . is not compensable unless . . . . .

The employee proves that the accident was the The employee proves that the accident was the prevailing factor in causing the resulting medical prevailing factor in causing the resulting medical condition.condition.

Section 287.020.3(4)Section 287.020.3(4)

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GOING TO AND COMING GOING TO AND COMING FROM WORKFROM WORK

General Rule:General Rule:

Injuries that an employee sustains going to Injuries that an employee sustains going to and coming from the place of employment and coming from the place of employment are not compensable.are not compensable.

Recent revisions impact upon company Recent revisions impact upon company owned or subsidized cars and “extension owned or subsidized cars and “extension of premises” doctrine of premises” doctrine [mall parking lot [mall parking lot cases].cases].

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GOING TO AND COMING GOING TO AND COMING FROM WORK FROM WORK

Company Owned or Subsidized AutosCompany Owned or Subsidized Autos

Injuries, in company owned or subsidized Injuries, in company owned or subsidized automobiles, that occur while traveling automobiles, that occur while traveling from the employee’s home to the from the employee’s home to the employer’s principal place of business or employer’s principal place of business or vice versa vice versa are not compensable.are not compensable.

Section 287.020.5Section 287.020.5

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PARKING LOT CASESPARKING LOT CASES

The “extension of premises” doctrine is The “extension of premises” doctrine is abrogated (abolished) to the extent it abrogated (abolished) to the extent it extends liability for accidents that occur extends liability for accidents that occur on property not owned or controlled by on property not owned or controlled by the employer. Even if the accident occurs the employer. Even if the accident occurs on customary, approved, permitted, usual on customary, approved, permitted, usual or accepted routes used by the employee to or accepted routes used by the employee to get to and from his place of employment.get to and from his place of employment.

Section 287.020.5Section 287.020.5

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OCCUPATIONAL DISEASESOCCUPATIONAL DISEASES Last ExposureLast Exposure: The last exposure rule changes : The last exposure rule changes

which employer is liable in an occupational which employer is liable in an occupational disease case. Formerly, the employer who last disease case. Formerly, the employer who last exposed the employee to the hazard prior to the exposed the employee to the hazard prior to the claim being filed was liable. claim being filed was liable.

Now the last employer who exposed the Now the last employer who exposed the employee to the hazard, employee to the hazard, prior to evidence of prior to evidence of disability,disability, is liable, subject to the notice is liable, subject to the notice provision of provision of §287.420.§287.420.

Section 287.063.2Section 287.063.2

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OCCUPATIONAL DISEASESOCCUPATIONAL DISEASES

Statute of LimitationsStatute of Limitations: Adds that the : Adds that the statute of limitations in occupational statute of limitations in occupational disease cases shall not begin to run until disease cases shall not begin to run until it becomes reasonably discoverable and it becomes reasonably discoverable and apparent that an injury has been apparent that an injury has been sustained “related to such exposure.” sustained “related to such exposure.”

Section 287.063.3Section 287.063.3

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OCCUPATIONAL DISEASESOCCUPATIONAL DISEASESDEFINEDDEFINED

Prevailing FactorPrevailing Factor: : Occupational diseases and Occupational diseases and injuries due to repetitive motion “are injuries due to repetitive motion “are compensable only if the occupational exposure compensable only if the occupational exposure was was the prevailing factorthe prevailing factor” in causing both the ” in causing both the resulting medical condition and the disability. resulting medical condition and the disability. Section 287.067Section 287.067..22

Definition: Definition: “Prevailing Factor” is “the “Prevailing Factor” is “the primary factor, in relation to any other primary factor, in relation to any other factor, causing both the resulting medical factor, causing both the resulting medical condition and disability.” condition and disability.”

Section 287.067.2Section 287.067.2

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OCCUPATIONAL DISEASESOCCUPATIONAL DISEASES

Repetitive Motion:Repetitive Motion: Creates a new subsection 3 Creates a new subsection 3 recognizing injuries due to repetitive motion as recognizing injuries due to repetitive motion as occupational diseases.occupational diseases.

Section 287.067.3Section 287.067.3

Aging:Aging: “ “Ordinary, gradual deterioration or Ordinary, gradual deterioration or progressive degeneration of the body caused by progressive degeneration of the body caused by aging, or by the normal activities of day-to-day aging, or by the normal activities of day-to-day living living shall notshall not be compensable.” be compensable.”

Section 287.067.3Section 287.067.3

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OCCUPATIONAL DISEASESOCCUPATIONAL DISEASES Firefighters and Police Officers:Firefighters and Police Officers: Paid firefighters of a paid fire department or paid police officers of Paid firefighters of a paid fire department or paid police officers of

a paid police department certified under chapter 590, RSMo, need a paid police department certified under chapter 590, RSMo, need to establish a direct causal relationship in order to receive workers’ to establish a direct causal relationship in order to receive workers’ compensation benefits for diseases of the lungs or respiratory tract, compensation benefits for diseases of the lungs or respiratory tract, hypotension, hypertension, or diseases of the heart or hypotension, hypertension, or diseases of the heart or cardiovascular system. These diseases are defined to be a disability cardiovascular system. These diseases are defined to be a disability due to exposure to smoke, gases, carcinogens and inadequate due to exposure to smoke, gases, carcinogens and inadequate oxygen. oxygen.

Under the current law, a firefighter of a paid fire department must Under the current law, a firefighter of a paid fire department must establish a direct causal relationship in order to receive benefits for establish a direct causal relationship in order to receive benefits for psychological stress. The new law does not change this requirement. psychological stress. The new law does not change this requirement. The new law does not extend the direct causal relationship standard The new law does not extend the direct causal relationship standard for psychological stress to the paid police officers of a paid police for psychological stress to the paid police officers of a paid police department. department.

Section 287.067.6Section 287.067.6

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OCCUPATIONAL DISEASESOCCUPATIONAL DISEASES

Three Month Rule:Three Month Rule:

The three month rule regarding The three month rule regarding repetitive motionrepetitive motion injuries – is limited to injuries – is limited to going back to the “immediate prior going back to the “immediate prior employer” if work at that immediate employer” if work at that immediate prior employer was the prevailing factor prior employer was the prevailing factor in causing the injury. This specifically in causing the injury. This specifically deletes the former “the substantial deletes the former “the substantial contributing factor” language. contributing factor” language.

Section 287.067.8Section 287.067.8

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SAFETY CHANGESSAFETY CHANGES

1.1. If the employee fails to use safety If the employee fails to use safety devices provided by the employer or devices provided by the employer or fails fails to obey safety rules, to obey safety rules, compensation is compensation is reduced between reduced between twenty-five (25) and twenty-five (25) and fifty (50) percent. fifty (50) percent. Current law requires Current law requires reduction of reduction of 15%.15%.

2. 2. The employee’s failure to use safety The employee’s failure to use safety devices no longer has to be willful. In devices no longer has to be willful. In addition an employer is required to addition an employer is required to make make a “reasonable” effort to cause a “reasonable” effort to cause employees employees to follow the safety to follow the safety rules.rules.

Section Section 287.120.5287.120.5

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SAFETY CHANGES CONT.SAFETY CHANGES CONT.

Changes will place greater emphasis on safety and make employees and employers more conscious of the impact safety has on injury reduction.

Page 29: WORKERS’ COMPENSATION OVERVIEW OF NEW LAW PRESENTED BY PATRICIA “PAT” SECREST DIRECTOR DIVISION OF WORKERS’ COMPENSATION.

DRUG AND ALCOHOL CHANGESDRUG AND ALCOHOL CHANGES

The effect of the new statutory changes The effect of the new statutory changes will be to reduce benefits in those will be to reduce benefits in those circumstances where drugs or alcohol circumstances where drugs or alcohol were the proximate cause of the injury. were the proximate cause of the injury. It allows employers to control the use of It allows employers to control the use of drugs and alcohol in the workplace that drugs and alcohol in the workplace that might lead to injuries.might lead to injuries.

Section Section 287.120.6(1) 287.120.6(1)

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DRUG AND ALCOHOL DRUG AND ALCOHOL CHANGES CONT.CHANGES CONT.

1.1. When an injury is sustained in When an injury is sustained in conjunction with the use of alcohol or conjunction with the use of alcohol or non-prescribed controlled drugs the non-prescribed controlled drugs the compensation “shall” be reduced bycompensation “shall” be reduced by 50% instead of the former 15% 50% instead of the former 15% reduction. reduction.

Section 287.120.6 Section 287.120.6 (1)(1)

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DRUG AND ALCOHOL CHANGESDRUG AND ALCOHOL CHANGESActual Knowledge/Diligent Effort Deleted: Actual Knowledge/Diligent Effort Deleted: 2.2. Deletes the former requirement that an Deletes the former requirement that an

employee had to have “actual knowledge” of the employee had to have “actual knowledge” of the employer’s no alcohol/drug-free workplace employer’s no alcohol/drug-free workplace policy in order for the former 15% benefit policy in order for the former 15% benefit reduction to apply. reduction to apply.

3.3.   Now, not only does the law Now, not only does the law not not require actual require actual knowledge of such policies, but the former knowledge of such policies, but the former requirement that employers had to make a requirement that employers had to make a “diligent effort to inform the employee of the “diligent effort to inform the employee of the requirement to obey any reasonable rule or requirement to obey any reasonable rule or policy” was deleted and not replaced with any policy” was deleted and not replaced with any new standard.new standard.

Section Section 287.120.6(1)287.120.6(1)

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DRUG AND ALCOHOL CHANGESDRUG AND ALCOHOL CHANGES

Proximate Cause-Forfeiture: Proximate Cause-Forfeiture: The law remains that if “the use of alcohol or The law remains that if “the use of alcohol or

non-prescribed controlled drugs in violation of non-prescribed controlled drugs in violation of the employer’s rule or policy is the proximate the employer’s rule or policy is the proximate cause of the injury” benefits shall be forfeited. cause of the injury” benefits shall be forfeited.

The new law does not require an employer to The new law does not require an employer to post and publicize its rules or policy. post and publicize its rules or policy.

In addition, the new law In addition, the new law deletes deletes the former the former provision that forfeiture did not apply if the provision that forfeiture did not apply if the employer had actual knowledge of the employer had actual knowledge of the employee’s alcohol/drug use which was not employee’s alcohol/drug use which was not authorized by the employer.authorized by the employer.

(Deleted Section 287.120.6(2)(a) and (b).)(Deleted Section 287.120.6(2)(a) and (b).)

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DRUG AND ALCOHOL CHANGESDRUG AND ALCOHOL CHANGESLegal IntoxicationLegal Intoxication:: New 287.120.6(3) provides that if the employee’s blood

alcohol content is sufficient to constitute legal intoxication a rebuttable presumption is created that the employee’s voluntary use of alcohol was the proximate cause of the injury. An employee can rebut the presumption by a preponderance of the evidence.

Also, adds that an employee’s refusal to take a drug or Also, adds that an employee’s refusal to take a drug or alcohol test at the employer’s request results in benefit alcohol test at the employer’s request results in benefit forfeiture if: (1) “the employer had sufficient cause to forfeiture if: (1) “the employer had sufficient cause to suspect” drug or alcohol use OR (2) the employer’s policy suspect” drug or alcohol use OR (2) the employer’s policy clearly authorizes such post-injury testing.clearly authorizes such post-injury testing.

Section 287.120.6(3)Section 287.120.6(3)

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RECREATIONAL ACTIVITIESRECREATIONAL ACTIVITIES TThe former law specifically excluded from he former law specifically excluded from

coverage only injuries resulting from coverage only injuries resulting from voluntaryvoluntary participation in a recreational activity or program participation in a recreational activity or program that resulted in the that resulted in the proximateproximate cause of the injury. cause of the injury.

The new law deletes the words “voluntary” and The new law deletes the words “voluntary” and “proximate” and excludes injuries where the “proximate” and excludes injuries where the recreational activity or program is the recreational activity or program is the prevailingprevailing cause of the injury regardless of the fact that the cause of the injury regardless of the fact that the employer may have promoted, sponsored or employer may have promoted, sponsored or supported the recreational activity or program.supported the recreational activity or program.

Section 287.120.7Section 287.120.7

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RECREATIONAL ACTIVITIES RECREATIONAL ACTIVITIES CONTD.CONTD.

The forfeiture of benefits or compensation shall The forfeiture of benefits or compensation shall not apply when:not apply when:a)a) The employee was directly ordered by The employee was directly ordered by

the employer to participate in such the employer to participate in such recreational activity or program;recreational activity or program;b)b) The employee was paid wages or travel The employee was paid wages or travel

expenses while participating in such expenses while participating in such recreational activity or program; orrecreational activity or program; or

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RECREATIONAL ACTIVITIES RECREATIONAL ACTIVITIES CONT.CONT.

c)c) The injury from such recreational The injury from such recreational activity activity or program occurs on the or program occurs on the employer’s employer’s premises due to an unsafe premises due to an unsafe condition and the condition and the employer had actual employer had actual knowledge of the knowledge of the employee’s participation in employee’s participation in the recreational the recreational activity or program and of activity or program and of the unsafe the unsafe condition of the premises and failed condition of the premises and failed to to either curtail the either curtail the recreational activity or recreational activity or

program or cure the unsafe condition.program or cure the unsafe condition.

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FRAUD CHANGESDeletes the previous subsection (2) and moves it under Deletes the previous subsection (2) and moves it under subsection 1.subsection 1.

It shall be unlawful for any insurance company or self-It shall be unlawful for any insurance company or self-insured employer in Missouri to knowingly and insured employer in Missouri to knowingly and intentionally refuse to comply with known and legally intentionally refuse to comply with known and legally indisputable compensation obligations with intent to indisputable compensation obligations with intent to defraud. defraud.

Section 287.18.2Section 287.18.2Creates a new subsection 8:Creates a new subsection 8:

It shall be unlawful for any person to knowingly make It shall be unlawful for any person to knowingly make or cause to be made a false or fraudulent material or cause to be made a false or fraudulent material statement to an investigator of the Division who is statement to an investigator of the Division who is investigating an allegation of fraud or noncompliance investigating an allegation of fraud or noncompliance

Section 287.128.8Section 287.128.8

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FRAUD CHANGESFRAUD CHANGES Section 287.128.4 makes a violation of the fraud Section 287.128.4 makes a violation of the fraud

provisions in §287.128 (1) or (2) a class D felony provisions in §287.128 (1) or (2) a class D felony rather than a class A misdemeanor. The person rather than a class A misdemeanor. The person shall be liable to the State of Missouri for a fine shall be liable to the State of Missouri for a fine up to ten thousand dollars or double the value of up to ten thousand dollars or double the value of the fraud whichever is greater. the fraud whichever is greater.

A violation of §287.128 (3) is a class A A violation of §287.128 (3) is a class A misdemeanor and a person is liable to the State misdemeanor and a person is liable to the State of Missouri for a fine up to ten thousand dollars.of Missouri for a fine up to ten thousand dollars.

A person who previously pled guilty or was A person who previously pled guilty or was found guilty of violating subsection 1, 2 or 3 and found guilty of violating subsection 1, 2 or 3 and subsequently violates any provision of subsection subsequently violates any provision of subsection 1,2, or 3 shall be guilty of a class C felony.1,2, or 3 shall be guilty of a class C felony.

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FRAUD CHANGESFRAUD CHANGES

Creates a new sub-section 5 Creates a new sub-section 5 It is unlawful for any person, company or entity to It is unlawful for any person, company or entity to

prepare or provide an invalid certificate of workers’ prepare or provide an invalid certificate of workers’ compensation insurance.compensation insurance.

Any person who violates this subsection shall be guilty Any person who violates this subsection shall be guilty of a class D felony and, in addition, is liable to the State of a class D felony and, in addition, is liable to the State of Missouri for a fine up to ten thousand dollars or of Missouri for a fine up to ten thousand dollars or double the value of the fraud, whichever is greater.double the value of the fraud, whichever is greater.

Section 287.128.5Section 287.128.5

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FRAUD CHANGESFRAUD CHANGES

Any employer who knowingly fails to insure its Any employer who knowingly fails to insure its workers’ compensation liability under the law workers’ compensation liability under the law shall be guilty of a class A misdemeanor. shall be guilty of a class A misdemeanor.

The employer is also liable to the State of The employer is also liable to the State of

Missouri for a penalty up to three times the Missouri for a penalty up to three times the annual premium the employer would have paid annual premium the employer would have paid if he obtained coverage or up to fifty thousand if he obtained coverage or up to fifty thousand dollars whichever is greaterdollars whichever is greater. .

Section Section 287.128.7287.128.7

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FRAUD CHANGESFRAUD CHANGES All records, reports, tapes, photographs and All records, reports, tapes, photographs and

documentation submitted to the Division’s Fraud documentation submitted to the Division’s Fraud and Noncompliance Unit by any person, including and Noncompliance Unit by any person, including the Department of Insurance, to conduct the the Department of Insurance, to conduct the investigation for violations under the workers’ investigation for violations under the workers’ compensation law, are confidential and not compensation law, are confidential and not subject to the Sunshine Law. subject to the Sunshine Law.

However, the Fraud Unit’s records can be However, the Fraud Unit’s records can be released to the local, state or federal law released to the local, state or federal law enforcement authorities that are conducting an enforcement authorities that are conducting an investigation upon written request. investigation upon written request.

Section 287.128.9Section 287.128.9

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FRAUD CHANGESFRAUD CHANGES

All fraud prosecutions shall be All fraud prosecutions shall be commenced within three years after commenced within three years after discovery of the offense by the aggrieved discovery of the offense by the aggrieved party or by a “person who has the legal party or by a “person who has the legal duty to represent the aggrieved party” duty to represent the aggrieved party” [i.e. the attorney general or the [i.e. the attorney general or the prosecuting attorney having jurisdiction prosecuting attorney having jurisdiction to file charges] and who is not a party to to file charges] and who is not a party to the offense.the offense.

Section 287.128.11Section 287.128.11

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ADMINISTRATIVE LAW JUDGES ADMINISTRATIVE LAW JUDGES AND LEGAL ADVISORS AND LEGAL ADVISORS

1)1) The Division Director may appoint additional The Division Director may appoint additional Administrative Law Judges for a maximum number Administrative Law Judges for a maximum number of forty. of forty.

   a) The Division currently has twenty-six (26) a) The Division currently has twenty-six (26) Administrative Law Judges and twenty-two Administrative Law Judges and twenty-two (22) Legal Advisors. One of the changes is the (22) Legal Advisors. One of the changes is the elimination of the Legal Advisors position from elimination of the Legal Advisors position from the current statute. the current statute.

b) Fourteen (14) additional Administrative b) Fourteen (14) additional Administrative Law Judges may be appointed to bring the Law Judges may be appointed to bring the total number to 40 as authorized by the total number to 40 as authorized by the new new law.law.

Section 287.610.1Section 287.610.1

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ADMINISTRATIVE LAW JUDGESADMINISTRATIVE LAW JUDGES

The Division Director along with the members of The Division Director along with the members of the “Administrative Law Judge Review the “Administrative Law Judge Review Committee” will develop written performanceCommittee” will develop written performance audit standards by October 1, 2005. audit standards by October 1, 2005.

The Division Director along with the ALJ Review The Division Director along with the ALJ Review Committee will conduct a performance audit of Committee will conduct a performance audit of all Administrative Law Judges every two (2) all Administrative Law Judges every two (2) years.years.

Upon completing the performance audit for each Upon completing the performance audit for each Administrative Law Judge, the Committee will Administrative Law Judge, the Committee will make a recommendation of confidence or no make a recommendation of confidence or no confidence.confidence.

Section 287.610.2Section 287.610.2

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REPORTING OF INJURIESREPORTING OF INJURIESCHANGES TO POSTERCHANGES TO POSTER

Employees who fail to notify Employees who fail to notify their employer of an accident or their employer of an accident or injury within thirty (30) days injury within thirty (30) days “may jeopardize their ability to “may jeopardize their ability to receive compensation, and any receive compensation, and any other benefits under this other benefits under this chapter”.chapter”.

Section 287.127.1(2)Section 287.127.1(2)

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REPORTING OF INJURIESREPORTING OF INJURIESEmployers/Insurers have 30 days - instead of 10 – after Employers/Insurers have 30 days - instead of 10 – after knowledge of an injury to file a First Report of Injury knowledge of an injury to file a First Report of Injury with the Division under the rules and in such form and with the Division under the rules and in such form and detail as the Division may require. detail as the Division may require.

   However,However, the new law does not change the requirement the new law does not change the requirement for an employer to report for an employer to report allall injuries to its insurance injuries to its insurance carrier or third-party administrator, carrier or third-party administrator, within five days of within five days of the date of injurythe date of injury or or within five days of the date the within five days of the date the injury was reported to the employer by the employeeinjury was reported to the employer by the employee, , whichever is later.whichever is later.

Section 287.380.1Section 287.380.1

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REPORTING OF INJURIESREPORTING OF INJURIESEmployers must report the injury to their workers’ Employers must report the injury to their workers’ compensation insurance carrier. Self-insured compensation insurance carrier. Self-insured employers must report the injuries to their Claims employers must report the injuries to their Claims Administrator or TPA to enable them to file a First Administrator or TPA to enable them to file a First Report of Injury with the Division. Report of Injury with the Division.

Injuries reported in a timely manner may result in a Injuries reported in a timely manner may result in a reduction of costs and provide better service to the reduction of costs and provide better service to the injured employee.injured employee.

Section 287.380.1Section 287.380.1

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REPORTING OF INJURIESREPORTING OF INJURIES

The law remains that any employer or The law remains that any employer or insurer who knowingly fails to report any insurer who knowingly fails to report any accident to the Division accident to the Division

or knowingly makes a false report or or knowingly makes a false report or statement in writing to the Division or statement in writing to the Division or Commission, Commission,

shall be deemed guilty of a misdemeanor shall be deemed guilty of a misdemeanor and subject to a fine or imprisonment or and subject to a fine or imprisonment or both. both.

Section 287.380.4Section 287.380.4

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EXPERIENCE RATING PLAN The rating plan shall prohibit an adjustment to the The rating plan shall prohibit an adjustment to the

experience modification of an employer if:experience modification of an employer if: The total medical cost does not exceed The total medical cost does not exceed one one

thousandthousand dollars, and dollars, and The employer pays all of the total medical costs, The employer pays all of the total medical costs,

and and There is no lost time from employment There is no lost time from employment other other

than the first three days or less of disability than the first three days or less of disability under under §287.160 (1)§287.160 (1) and and

No claim is filedNo claim is filed

Section Section 287.957287.957

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EXPERIENCE RATING PLAN CONT.

Note: An employer opting to utilize this Note: An employer opting to utilize this provision maintains an obligation to provision maintains an obligation to report the injury under subsection 1 report the injury under subsection 1 of of §287.380.§287.380.

Section 287.957Section 287.957

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LEAVE TO ATTEND TO LEAVE TO ATTEND TO MEDICAL CAREMEDICAL CARE

The employer may allow or require an The employer may allow or require an employee to use any of the employee’s employee to use any of the employee’s accumulated paid leave, personal leave, or accumulated paid leave, personal leave, or medical or sick leave to attend to medical medical or sick leave to attend to medical treatment, physical rehabilitation, or medical treatment, physical rehabilitation, or medical evaluations during work time. evaluations during work time.

The intent of this subsection is to specifically The intent of this subsection is to specifically supercede and abrogate (abolish) any case supercede and abrogate (abolish) any case law that contradicts the express language of law that contradicts the express language of this section.this section.

Section 287.140.14Section 287.140.14

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BONUS PAYMENTSBONUS PAYMENTS

A monetary bonus, paid by an employer A monetary bonus, paid by an employer to an employee, of up to three percent to an employee, of up to three percent (3%) of the employee’s yearly (3%) of the employee’s yearly compensation from such employer shall compensation from such employer shall not have the effect of increasing the not have the effect of increasing the compensation amount used in compensation amount used in calculating the employee’s compensation calculating the employee’s compensation or wages for purposes of any workers’ or wages for purposes of any workers’ compensation claim governed by this compensation claim governed by this chapter.chapter.

Section 287.253Section 287.253

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COST OF PROCEEDINGSCOST OF PROCEEDINGSTEMPORARY AWARDSTEMPORARY AWARDS

If the Division or the Commission determines that any proceedings If the Division or the Commission determines that any proceedings have been brought, prosecuted, or defended without reasonable have been brought, prosecuted, or defended without reasonable grounds, the division may assess the whole cost of the proceedings grounds, the division may assess the whole cost of the proceedings upon the party who brought, prosecuted, or defended them.upon the party who brought, prosecuted, or defended them.

Previously, Previously, §287.203 stated that “Reasonable cost of recovery §287.203 stated that “Reasonable cost of recovery shallshall be be awarded to the prevailing party.” awarded to the prevailing party.”

The statutory changes do not make a distinction between the The statutory changes do not make a distinction between the hardship hearing or an evidentiary hearing that is brought, hardship hearing or an evidentiary hearing that is brought, prosecuted or defended without reasonable grounds.prosecuted or defended without reasonable grounds.

In such cases, the Administrative Law Judge In such cases, the Administrative Law Judge maymay assess the whole assess the whole cost of the proceeding upon the party who brought, prosecuted or cost of the proceeding upon the party who brought, prosecuted or defended them.defended them.

Section 287.203Section 287.203

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WRITTEN NOTICE OF THE ACCIDENT

To maintain a proceeding for compensation under To maintain a proceeding for compensation under Chapter 287;Chapter 287;

Written notice of the time, place and nature of the Written notice of the time, place and nature of the injury; andinjury; and

The name and address of the injured person;The name and address of the injured person; Has to be given to the employer;Has to be given to the employer; No later than thirty days after the accident;No later than thirty days after the accident; Unless the employer was not prejudiced by failure Unless the employer was not prejudiced by failure

to receive the notice.to receive the notice.Section 287.420Section 287.420

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WRITTEN NOTICE OF THE ACCIDENT CONT.

The previous requirement of providing written notice The previous requirement of providing written notice of the time, place and nature of the injury and name of the time, place and nature of the injury and name and address of the person injured “as soon as and address of the person injured “as soon as practicable after the happening thereof” has been practicable after the happening thereof” has been deleted.deleted.

Also deleted is the finding of the Division or Also deleted is the finding of the Division or Commission on good cause for failure to give noticeCommission on good cause for failure to give notice

In addition, the old language of “no defect or In addition, the old language of “no defect or inaccuracy in the notice shall invalidate it unless the inaccuracy in the notice shall invalidate it unless the commission finds that the employer was in fact misled commission finds that the employer was in fact misled and prejudiced thereby” has been deleted.and prejudiced thereby” has been deleted.

Section 287.420Section 287.420

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WRITTEN NOTICE OF THE OCCUPATIONAL DISEASE OR

REPETITIVE TRAUMATo maintain a proceeding for compensation under To maintain a proceeding for compensation under Chapter 287 for any occupational disease or repetitive Chapter 287 for any occupational disease or repetitive trauma:trauma:

Written notice of the time, place, and nature of the Written notice of the time, place, and nature of the injury; andinjury; and

The name and address of the person injured;The name and address of the person injured; Has to be given to the employer;Has to be given to the employer; No later than thirty days after the diagnosis of the No later than thirty days after the diagnosis of the

condition;condition; Unless the employee can prove the employer was not Unless the employee can prove the employer was not

prejudiced by failure to receive notice. prejudiced by failure to receive notice. Section 287.420Section 287.420

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TEMPORARY TOTAL DISABILITY (TTD) BENEFITS

An employee is disqualified from receiving TTD An employee is disqualified from receiving TTD during any period of time in which the claimant during any period of time in which the claimant applies and receives unemployment compensation.applies and receives unemployment compensation.

The dollar for dollar credit to the employer for The dollar for dollar credit to the employer for unemployment compensation paid to the employee unemployment compensation paid to the employee and charged to the employer for the adjudicated or and charged to the employer for the adjudicated or agreed – upon period of TTD has been deleted.agreed – upon period of TTD has been deleted.

Section 287.170.3Section 287.170.3

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POST INJURY MISCONDUCT TERMINATION

If the employee is terminated from employment If the employee is terminated from employment based upon post-injury misconduct neither TTD based upon post-injury misconduct neither TTD nor TPD benefits are payable nor TPD benefits are payable

The phrase “post-injury misconduct” shall not The phrase “post-injury misconduct” shall not include absence from the work place due to an include absence from the work place due to an injury unless the employee is capable of working injury unless the employee is capable of working with restrictions as certified by a physician.with restrictions as certified by a physician.

Section 287.170.4Section 287.170.4

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PERMANENT PARTIAL DISABILITY

I.I. Permanent Partial Disability means a Permanent Partial Disability means a

disability that is permanent in nature and disability that is permanent in nature and partial in degree. partial in degree.

Section 287.190.6 (1)Section 287.190.6 (1)

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PERMANENT PARTIAL DISABILITY CONT.II.Where payments are made as indicated below, the II.Where payments are made as indicated below, the

percentage of disability shall be conclusively percentage of disability shall be conclusively presumed to continue undiminished, when:presumed to continue undiminished, when: (i)a settlement is approved by either the (i)a settlement is approved by either the

Administrative Law Judge or Commission,Administrative Law Judge or Commission, (ii) a rating established by medical finding, (ii) a rating established by medical finding,

certified by a physician, and approved by an certified by a physician, and approved by an Administrative Law Judge, or Administrative Law Judge, or

(iii) an award by the Administrative Law Judge (iii) an award by the Administrative Law Judge or Commission.or Commission.

Section 287.190.6 (1)Section 287.190.6 (1)

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PERMANENT PARTIAL DISABILITY CONT.

III. Pre-existing Disability Credit:III. Pre-existing Disability Credit:Any award of compensation shall be Any award of compensation shall be reduced by an amount proportional to reduced by an amount proportional to permanent partial disability that is permanent partial disability that is determined to be:determined to be:

A pre-existing disease or condition, or A pre-existing disease or condition, or Attributed to natural aging process that is Attributed to natural aging process that is

sufficient to cause or prolong the disability sufficient to cause or prolong the disability or need for treatment.or need for treatment.

Section Section 287.190.6 (3)287.190.6 (3)

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COMPROMISE SETTLEMENTS

Parties may enter into voluntary agreements to settle or compromise any dispute or claim for compensation.

For the agreement to be valid it must be approved by the Administrative Law Judge or Commission.

Settlement must be in accordance with the rights of the parties.

Section 287.390.1

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COMPROMISE SETTLEMENTS CONT.

The Administrative Law Judge or Commission The Administrative Law Judge or Commission shall approve a settlement agreement as valid and shall approve a settlement agreement as valid and enforceable.enforceable. As long as the settlement is not the result of As long as the settlement is not the result of

undue influence or fraud,undue influence or fraud, The employee fully understands his or her The employee fully understands his or her

rights to benefits, andrights to benefits, and Voluntarily agrees to accept the terms of the Voluntarily agrees to accept the terms of the

agreement.agreement.

Section 287.390.1Section 287.390.1

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COMPROMISE SETTLEMENTS

Offer Made by Employer/Employee not Offer Made by Employer/Employee not represented by an attorney-represented by an attorney- When an offer of settlement is made in When an offer of settlement is made in

writing and filed with the Division by the writing and filed with the Division by the employer, an employee is entitled to 100% of employer, an employee is entitled to 100% of the amount offered, provided that such the amount offered, provided that such employee is not represented by counsel at the employee is not represented by counsel at the time the offer is tendered.time the offer is tendered.

Section 287.390.5Section 287.390.5

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COMPROMISE SETTLEMENTS CONT.

Offer not accepted by the employee/additional Offer not accepted by the employee/additional proceeding on claimproceeding on claim Where the employee does not accept the offer Where the employee does not accept the offer

of settlement and additional proceedings take of settlement and additional proceedings take place with respect to the claim:place with respect to the claim:

The employee is entitled to 100% of the The employee is entitled to 100% of the amount initially offered.amount initially offered.

Legal counsel representing the employee Legal counsel representing the employee shall receive reasonable fees for services shall receive reasonable fees for services rendered.rendered.

Section 287.390.5Section 287.390.5

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COMPROMISE SETTLEMENTS CONT.

““Amount in dispute” is defined as “the dollar Amount in dispute” is defined as “the dollar amount in excess of the dollar amount offered amount in excess of the dollar amount offered or paid by the employer.”or paid by the employer.”

An offer of settlement shall not be construed as An offer of settlement shall not be construed as an admission of liability.an admission of liability.

Section 287.390.6Section 287.390.6

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SELF INSURED EMPLOYER FILING BANKRUPTCY LIQUIDATION OR

DISSOLUTION Upon notice of a self-insured member filing for bankruptcy, Upon notice of a self-insured member filing for bankruptcy,

liquidation or dissolution, the division shall notify in writing liquidation or dissolution, the division shall notify in writing any employee of a self-insured member who has:any employee of a self-insured member who has: An open claim for compensation or First Report of Injury An open claim for compensation or First Report of Injury

filed with the division,filed with the division, At that employee’s last known address At that employee’s last known address Of his/her obligation to file a proof of claim,Of his/her obligation to file a proof of claim, With the court of jurisdiction,With the court of jurisdiction, And provide to the Division and the Missouri Private And provide to the Division and the Missouri Private

Sector Individual Self Employers Guaranty Corporation Sector Individual Self Employers Guaranty Corporation (MPSISIGC) the records set out in (MPSISIGC) the records set out in §287.865.§287.865.

Section 287.865 (5)Section 287.865 (5)

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SELF INSURED EMPLOYER FILING BANKRUPTCY LIQUIDATION OR

DISSOLUTION CONT.

Any claimant who claims benefits under Chapter 287 Any claimant who claims benefits under Chapter 287 RSMo against an insolvent self-insured member of RSMo against an insolvent self-insured member of MPSISIGC shall:MPSISIGC shall: File with the bankruptcy court having jurisdiction File with the bankruptcy court having jurisdiction

over the bankruptcy of the self-insured employer.over the bankruptcy of the self-insured employer. A proof of claim or other claim forms required by the A proof of claim or other claim forms required by the

bankruptcy court.bankruptcy court. To secure a claim against the bankrupt employer,To secure a claim against the bankrupt employer, Before the Division acquires jurisdiction Before the Division acquires jurisdiction

Section 287.865 (5)Section 287.865 (5)

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SELF INSURED EMPLOYER FILING BANKRUPTCY LIQUIDATION OR

DISSOLUTION CONT.

Claimant shall provide the MPSISIGC and the Claimant shall provide the MPSISIGC and the Division a copy, certified by the bankruptcy Division a copy, certified by the bankruptcy court, attesting to the filing of such claim or court, attesting to the filing of such claim or claim forms.claim forms.

Certification shall include: Certification shall include: The date of alleged loss alleged against the The date of alleged loss alleged against the

bankrupt employer, bankrupt employer, Description of injuries claimed, andDescription of injuries claimed, and The date the claim or claims were filed with The date the claim or claims were filed with

the bankruptcy courtthe bankruptcy court

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SELF INSURED EMPLOYER FILING BANKRUPTCY LIQUIDATION OR

DISSOLUTION CONT.

If the claimant fails to provide the If the claimant fails to provide the records, the Division is barred from records, the Division is barred from exercising jurisdiction over any matter exercising jurisdiction over any matter for which an employee may otherwise be for which an employee may otherwise be entitled to benefits under Chapter 287, entitled to benefits under Chapter 287, RSMo.RSMo.

Section 287.865 (5)Section 287.865 (5)

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OTHER CHANGES MILEAGE MILEAGE – Employee will receive mileage – Employee will receive mileage

reimbursement for medical examination or treatment reimbursement for medical examination or treatment outside of local or metropolitan area from the employee’s outside of local or metropolitan area from the employee’s principal place of employmentprincipal place of employment (not place of injury or place (not place of injury or place of residence under old law)of residence under old law)

Section 287.140.1Section 287.140.1 DELETES DELETES – The temporary partial disability benefits paid – The temporary partial disability benefits paid

to employee for undergoing physical rehabilitation for to employee for undergoing physical rehabilitation for “serious injury,” or for evaluating permanent disability.“serious injury,” or for evaluating permanent disability.Note: Note: §287.141 still governs the physical §287.141 still governs the physical

rehabilitation benefits from the Second rehabilitation benefits from the Second Injury Fund.Injury Fund.

Section 287.140.1Section 287.140.1

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OTHER CHANGES CONT. VOCATIONAL EVALUATIONVOCATIONAL EVALUATION- Requires - Requires

employees to submit to appropriate vocational testing employees to submit to appropriate vocational testing and vocational rehabilitation assessment scheduled by and vocational rehabilitation assessment scheduled by an employer or its insurer.an employer or its insurer.

Section 287.143Section 287.143 EMPLOYER’S SUBROGATION LIENEMPLOYER’S SUBROGATION LIEN- Adds - Adds

language giving employers a subrogation lien on any language giving employers a subrogation lien on any third-party recovery.third-party recovery.

Section Section 287.150287.150

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OTHER CHANGES CONT. OCCUPATIONAL HEARING LOSSOCCUPATIONAL HEARING LOSS- Establishes the decibel - Establishes the decibel

standards on the most current ANSI occupational hearing loss standards on the most current ANSI occupational hearing loss standard. The Division shall promulgate a rule on the hearing standard. The Division shall promulgate a rule on the hearing loss standards.loss standards.

Section 287.197Section 287.197 SURVEILANCE NOT A “STATEMENTSURVEILANCE NOT A “STATEMENT”- Statement does not ”- Statement does not

include a videotape, motion picture, or visual reproduction of include a videotape, motion picture, or visual reproduction of an image of an employee. Also, ‘statement’ now may be an image of an employee. Also, ‘statement’ now may be provided within 30 days – instead of 15 days- of a proper provided within 30 days – instead of 15 days- of a proper written request by employee, dependent or their attorney.written request by employee, dependent or their attorney.

Section 287.215Section 287.215 TEMPORARY AWARD PENALTYTEMPORARY AWARD PENALTY – Failure to comply with – Failure to comply with

temporary award may result in the doubling of the amount temporary award may result in the doubling of the amount “equal to the value of compensation ordered and unpaid” in the “equal to the value of compensation ordered and unpaid” in the final award.final award.

Section 287.510Section 287.510

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OTHER CHANGES CONT. RELIGIOUS EXEMPTIONRELIGIOUS EXEMPTION – 287.804 – – 287.804 –

Religious Exception: An employee may file an Religious Exception: An employee may file an application to be excepted from workers’ application to be excepted from workers’ compensation coverage if both the “employee and compensation coverage if both the “employee and employer are members of a recognized religious employer are members of a recognized religious sect or division, as defined in 26 U.S.C. 1402 (g)” sect or division, as defined in 26 U.S.C. 1402 (g)” and are conscientiously opposed to accepting and are conscientiously opposed to accepting public or private insurance benefits. Exception public or private insurance benefits. Exception may be prospective only.may be prospective only.

Section 287.804Section 287.804

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STATUTORY EMPLOYEROWNER/OPERATOR

Deletes: Subsection 2 of Deletes: Subsection 2 of §287.040§287.040 Adds: New subsection 4 to §287.040 which Adds: New subsection 4 to §287.040 which

states:states:

(i) §287.040 shall not apply to the relationship (i) §287.040 shall not apply to the relationship between a for-hire motor carrier and an owner between a for-hire motor carrier and an owner and operator of a motor vehicle.and operator of a motor vehicle.

Section 287.040Section 287.040

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OWNER/OPERATOR

Creates a new Creates a new §287.043 that rejects and §287.043 that rejects and abrogates certain cases that interpreted abrogates certain cases that interpreted or defined ‘owner’ in applying the or defined ‘owner’ in applying the provisions of §287.040 (4) [relationship provisions of §287.040 (4) [relationship between for-hire motor carrier and between for-hire motor carrier and owner] and §287.020 (1) [definition of owner] and §287.020 (1) [definition of employee]employee]

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OWNER/OPERATOR CONT. Creates a new Section 287.041 which states that:Creates a new Section 287.041 which states that:

(i)(i) Notwithstanding the provisions of Notwithstanding the provisions of §287.030 §287.030 [employer defined] and §287.040 [statutory [employer defined] and §287.040 [statutory employers.]employers.]

(ii)(ii) For-hire motor carrier shall not be determined to For-hire motor carrier shall not be determined to be the employer of be the employer of

- a lessor defined by 49 C.F.R. §376.2 (f), or- a lessor defined by 49 C.F.R. §376.2 (f), or

- a driver receiving remuneration from a lessor- a driver receiving remuneration from a lessor

The term “for-hire motor carrier’ shall not include The term “for-hire motor carrier’ shall not include an organization described in §501 (c) (3) of the an organization described in §501 (c) (3) of the Internal Revenue Code or any governmental Internal Revenue Code or any governmental entity.entity.

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OTHER CHANGES CONT.

REVIEW OF CLAIMSREVIEW OF CLAIMS – Beginning – Beginning January 1, 2006, only Administrative January 1, 2006, only Administrative Law Judges, the Commission, and the Law Judges, the Commission, and the Appellate Courts have the power to Appellate Courts have the power to review claims.review claims.

Section Section 287.801287.801

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WORKERS’ COMPENSATION ADMINISTRATIVE TAX

Changes Cash Flow of tax paymentChanges Cash Flow of tax payment Requires payment of tax on current year Requires payment of tax on current year

tax rate instead of prior year’s tax ratetax rate instead of prior year’s tax rate

Section Section 287.710287.710

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WORKERS’ COMPENSATION ADMINISTRATIVE TAX

Caps the annual surcharge rate at 3% of Caps the annual surcharge rate at 3% of insurance premiums insurance premiums

Prior law imposed no limit on the surcharge Prior law imposed no limit on the surcharge percentagepercentage

Requires Division Director to calculate Requires Division Director to calculate surcharge by October 31surcharge by October 31stst for the following year for the following year

If not calculated timely, any increase from prior If not calculated timely, any increase from prior year is not effective for the first calendar quarter year is not effective for the first calendar quarter of the following yearof the following year

Section 287.715Section 287.715

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Labor & Industrial Relations Commission 573/751-2461

  Patricia “Pat” Secrest, Director 573/751-7646 Richard Stickann, Mgmt. Analyst Sp. 573/526-2701

  Nasreen Esmail, Chief Legal Advisor 573/526-4941

  Dennis Moore, Chief Administrator, 573/526-6630 Fraud & Noncompliance Unit 800/592-6003

  Employee Toll Free Number 800/775-2667 Employer Toll Free Number 888/837-6069 Yvonne Haslag, Injury Processing Unit 573/526-4948

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Shari Cyrus, Benefits Unit Manager 573/522-1467 Richard Cole, Self-Insurance Manager 573/526-6004 Glenn Easley, Mediation Unit 573/526-4951 Leon Lawson, Workers’ Safety Manager 573/526-3504

Cape Girardeau Adjudication Office 573/290-5757 Jefferson City Adjudication Office 573/751-4231 Joplin Adjudication Office 417/629-3032 Kansas City Adjudication Office 816/889-2481 St. Charles Adjudication Office 636/940-3326 St. Louis Adjudication Office 314/340-6865 St. Joseph Adjudication Office 816/387-2275 Springfield Adjudication Office 417/888-4100

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Division of Workers’ Compensation Website Address is:

www.dolir.mo.govwww.dolir.mo.gov