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Summary of the Major Revisions of Missouri’s

Workers’ Compensation Statute

 

Index of Revisions

  

ABROGATED CASES. - 5 -

ACCIDENT & INJURY.. - 3 -

ACCIDENTS INVOLVING COMPANY VEHICLES. - 4 -

ACCIDENT REPORTING.. - 13 -

MEDICAL EXAMINATION.. - 10 -

NOTICE IN REPETITIVE TRAUMA CASES. - 7 -

PROOF OF PERMANENT DISABILITY.. - 12 -

REDUCTION OF BENEFITS FOR CERTAIN ACTS. - 8 -

REPETITIVE TRAUMA AND LAST EXPOSURE.. - 6 -

STANDARD OF REVIEW... - 15 -

TTD DISQUALIFICATION FOR RECEIPT OF UNEMPLOYMENT   COMPENSATION OR POST INJURY MISCONDUCT.. - 11 -

VOCATIONAL TESTING & ASSESSMENT.. - 11 -

VOLUNTARY SETTLEMENT AGREEMENTS. - 13 -

WAGES & BONUSES. - 12 -

 

ACCIDENT & INJURY

 

§287.020

New:    2. The word “accident” as used in this chapter shall mean an unexpected traumatic event or unusual strain identifiable by time and place of occurrence and producing at the time objective symptoms of an injury caused by a specific event during a single work shift.  An injury is not compensable because work was a triggering or precipitating factor. 

 

Old:     2. The word “accident” as used in this chapter shall, unless a different meaning is clearly indicated by the context, be construed to mean an unexpected or unforeseen identifiable event or series of events happening suddenly and violently, with or without human fault and producing at the time objective symptoms of an injury.  An injury is compensable if it is clearly work related.  An injury is clearly work related if work was a substantial factor in the cause of the resulting medical condition or disability.  An injury is not compensable merely because work was a triggering or precipitating factor.

 

New:    3. (1) In this chapter the term “injury” is hereby defined to be an injury which has arisen out of and in the course of employment.  An injury by accident is compensable only if the accident was the prevailing factor in causing both the resulting medical condition and disability.  The “prevailing factor” is defined to be the primary factor, in relation to any other factor, causing both the resulting medical condition and disability. 

 

Old:     3. (1) In this chapter the term “injury” is hereby defined to be an injury which has arisen out of and in the course of employment.  The injury must be incidental to and not independent of the relation of employer and employee.  Ordinary, gradual deterioration or progressive degeneration of the body caused by aging shall not be compensable, except where the deterioration or degeneration follows as an incident of employment.

 

New:    3. (2) An injury shall be deemed to arise out of and in the course of employment only if:

               (a) It is reasonably apparent, upon consideration of all the circumstances, that the accident is the prevailing factor in causing the injury; and

               (b) It does not come from a hazard or risk unrelated to the employment to which workers would have been equally exposed outside of and unrelated to the employment in normal nonemployment life.

               (3) An injury resulting directly or indirectly from idiopathic causes is not compensable.

               (4) A cardiovascular, pulmonary, respiratory, or other disease, or cerebrovascular accident or myocardial infarction suffered by a worker is an injury only if the accident is the prevailing factor in causing the resulting medical condition.


 

Old:     3. (2) An injury shall be deemed to arise out of and in the course of employment only if:

               (a) It is reasonably apparent, upon consideration of all the circumstances, that the employment is a substantial factor in causing the injury; and

               (b) It can be seen to have followed as a natural incident of the work; and

               (c) It can be fairly traced to the employment as a proximate cause; and  

               (d) It does not come from a hazard or risk unrelated to the employment to which workers would have been equally exposed outside of and unrelated to the employment in normal nonemployment life.

 

Analysis:

 

            The most significant change is replacing the requirement that the accident be a substantial factor with the requirement that the accident be the prevailing factor.  Please note the statute now requires that the accident has to be the prevailing factor not only for the resulting medical condition, but also the disability.

 

            The new language also specifically states that injury resulting directly or indirectly from idiopathic causes is not compensable, which is obviously different from old case law, which suggests that injury resulting at least indirectly from idiopathic causes was compensable if the work environment contributed to the injury.

 

            Both the new and the old statute include the requirement that the injury produce at the time objective symptoms of injury.  This provision in conjunction with §287.800, which requires strict construction of the statute may require a more difficult burden for the claimant to establish objective findings in order to prove a compensable claim.

 

ACCIDENTS INVOLVING COMPANY VEHICLES

 

New:    5. Injuries sustained in company-owned or subsidized automobiles in accidents that occur while traveling from the employee’s home to the employer’s principal place of business or from the employer’s principal place of business to the employee’s home are not compensable.  The “extension of premises” doctrine is abrogated to the extent it extends liability for accidents that occur on property not owned or controlled by the employer even if the accident occurs on customary, approved, permitted, usual  or accepted routes used by the employee to get to and from their place of employment.

 

Old:     5. Without otherwise affecting either the meaning or interpretation of the abridged clause, “personal injuries arising out of and in the course of such employment”, it is hereby declared not to cover workers except while engaged in or about the premises where their duties are being performed, or where their services require their presence as a part of such service.


 

Analysis:

 

            This section will prevent claims where employees are driving a company vehicle going to or from work.  Arguably, however, because they limited the traveling only from the employee’s home to the employer’s principal place of business and not other traveling, there are some situations where the employees driving company vehicles may still be found compensable if they are traveling somewhere other than between work and home.  The second half of this provision will primarily impact the parking lot cases, where the injuries occur on non-employer owned or maintained parking lots, sidewalks, etc.

 

ABROGATED CASES

 

New:    10.  In applying the provisions of this chapter, it is the intent of the legislature to reject or abrogate earlier case law interpretations on the meaning of or definition of “accident”, “occupational disease”, “arising out of”, and “in the course of the employment” to include, but not be limited to, holdings in: Bennett v. Columbia Health Care and Rehabilitation, 80 S.W.3d 524 (Mo.App. W.D. 2002); Kasl v. Bristol Care, Inc., 984 S.W.2d 852 (Mo.banc 1999); and Drewes v. TWA, 984 S.W.2d 512 (Mo.banc 1999), and all cases citing, interpreting, applying, or following those cases. 

 

Analysis – Summary Of Abrogated Cases

 

            Bennett v. Columbia Health Care and Rehabilitation, 80 S.W.3d 524 (Mo. App. W.D. 2002) – The claimant was employed with the named employer for nineteen years as a nurse’s aide.  She reported injury to her knee, claiming that her knee popped while she was walking around a bed.  She felt another pop in her knee while carrying linens up stairs.  Medical providers testified that there was a change in pathology of the right knee condition.  While the case was originally found not to be compensable because the injury was the result of the mere act of walking or walking up steps, the Court of Appeals reversed and remanded the decision to the Commission, which later issued an opinion stating the case was compensable.  The Court of Appeals specifically stated that the Commission erred in concluding that walking alone never could give rise to a compensable injury.

 

            Kasl v. Bristol Care, Inc., 984 S.W.2d 852 (Mo.banc 1999) – In this case, the employee worked at a residential care facility.  The claimant’s foot fell asleep while she was sitting in a chair waiting for the appropriate time to dispense medication to a resident.  The court reasoned that without having to wait for the appropriate time to dispense the medication, her foot would not have fallen asleep.  They further determined that without having to arise to dispense the medicine, with a foot that had fallen asleep, she would not have fallen and fractured her ankle.  This was a decision issued by the Supreme Court of Missouri.


            Drewes v. TWA, 984 S.W.2d 512 (Mo.banc 1999) – This is another Missouri Supreme Court decision finding the claimant’s injury compensable.  The claimant worked for the employer as a reservation agent and she was allowed a thirty minute unpaid lunch break.  She purchased food from a vending machine in a breakroom that was for the use of TWA employees.  The claimant left this breakroom and went to a separate breakroom on another floor that was not leased by TWA; however, employees were told they were free to use either breakroom.  The court found that the claimant was tending to her personal comfort by carrying her lunch when she fell.  There was no explanation as to exactly what caused her to fall, simply that she was carrying her lunch to the table to eat her meal and the court found that this was a “substantial factor” in causing her injury.

 

REPETITIVE TRAUMA AND LAST EXPOSURE

 

§287.063

New:    2. The employer liable for the compensation in this section provided shall be the employer in whose employment the employee was last exposed to the hazard of the occupational disease prior to evidence of disability, regardless of the length of time of such last exposure, subject to the notice provision of §287.420.

 

Old:     2. The employer liable for the compensation in this section provided shall be the employer in whose employment the employee was last exposed to the hazard of the occupational disease for which claim is made regardless of the length of time of such last exposure.

 

§287.067

New:   2. An occupational disease is compensable only if the occupational exposure was the prevailing factor in causing both the resulting medical condition and disability.  The “prevailing factor” is defined to be the primary factor, in relation to any other factor, causing both the resulting medical condition and disability.  Ordinary, gradual deterioration or progressive degeneration of the body caused by aging or by the normal activities of day-to-day living shall not be compensable.

 

Old:     2. An injury by occupational disease is compensable if it is clearly work related and meets the requirements of an injury which is compensable as provided in subsections 2 and 3 of §287.020.  An occupational disease is not compensable merely because work was a triggering or precipitating factor. 

 

New:    3. An injury due to repetitive motion is recognized as an occupational disease for purposes of this chapter.  An occupational disease due to repetitive motion is compensable only if the occupational exposure was the prevailing factor in causing both the resulting medical condition and disability.  The prevailing factor is defined to be the primary factor, in relation to any other factor, causing both the resulting medical condition and disability.  Ordinary, gradual deterioration or progressive degeneration of the body caused by aging or by the normal activities of day-to-day living shall not be compensable.

 

New:    8. With regard to occupational disease due to repetitive motion, if the exposure to the repetitive motion which is found to be the cause of the injury is for a period of less than three months and the evidence demonstrates that the exposure to the repetitive motion with the immediate prior employer was the prevailing factor in causing the injury, the prior employer shall be liable for such occupational disease.

 

Old:     8. With regard to occupational disease due to repetitive motion, if the exposure to the repetitive motion which is found to be the cause of the injury is for a period of less than three months and the evidence demonstrates that the exposure to the repetitive motion with a prior employer was the substantial contributing factor to the injury, the prior employer shall be liable for such occupational disease.

 

Analysis:

 

            As with the definition of accident, in order for an occupational disease/repetitive trauma injury to be compensable, the employee now has the burden of showing that the exposure at work was the prevailing factor, rather than simply being a substantial factor.  Again, the language requires that the occupational disease be the prevailing factor in causing both the resulting medical condition and disability.  Obviously the legislature’s intent was to narrow the definition of compensable occupational diseases as they did with accidents.

 

            As for the Last Exposure Rule, the legislature has clearly written a change from the definition which was previously set forth by the Missouri Supreme Court.  Case law interpreting the Last Exposure Rule has held that the employer who last exposed the employee to the hazard prior to the filing of the claim was liable.  Under the more recent law, the responsible employer is the employer who last exposed the employee to the hazard prior to evidence of disability.  Obviously the courts will have to define “evidence of disability”.  Cases interpreting the law prior to the enactment of the Last Exposure Rule typically focused on date of diagnosis and any limitations, restrictions or significant treatment to determine disability.  This will most likely reduce the intended bright line effect of the Last Exposure Rule, but should allow for more fair results to the employers.

 

            The new law will allow the courts to look back only to the immediate prior employer.  This essentially codifies current case law, which suggests going back only one employer is appropriate.

 

NOTICE IN REPETITIVE TRAUMA CASES

 

§287.420

New:   No proceedings for compensation for any accident under this chapter shall be maintained unless written notice of the time, place, and nature of the injury, and the name and address of the person injured, has been given to the employer no later than thirty days after the accident, unless the employer was not prejudiced by failure to receive notice.  No proceedings for compensation for any occupational disease or repetitive trauma under this chapter shall be maintained unless written notice of the time, place, and nature of the injury, has been given to the employer no later than thirty days after the diagnosis of the condition unless the employee can prove the employer was not prejudiced by failure to receive the notice.

 

Old:     No proceedings for compensation under this chapter shall be maintained unless written notice of the time, place, and nature of the injury, and the name and address of the person injured, have been given to the employer as soon as practicable after the happening thereof but not later than thirty days after the accident, unless the division or the commission finds that there was good cause for failure to give the notice, or that the employer was not prejudiced by failure to receive notice.  No defect or inaccuracy in the notice shall invalidate it unless the commission finds that the employer was in fact misled and prejudiced thereby. 

 

Analysis:

 

The Act will require written notice to an Employer within 30 days of diagnosis of the condition.  If the same is not provided, proceedings cannot be maintained for a repetitive trauma or occupational disease case.  Please note that the exception is in the case where the employer was not prejudiced by failure to receive notice.  Prior case law held that the notice requirement did not apply to occupational disease cases.  This may bar some cases that would have otherwise been compensable.  If there is no significant delay in the reporting, I think most likely the courts will find the employer was not prejudiced.  In the cases where an employee receives a significant amount of treatment before filing a claim or reporting the injury, however, this can be a viable defense.

 

REDUCTION OF BENEFITS FOR CERTAIN ACTS

 

§287.120

New:    5. Where the injury is caused by the failure of the employee to use safety devices where provided by the employer, or from the employee’s failure to obey any reasonable rule adopted by the employer for the safety of the employees, the compensation and death benefit provided for herein shall be reduced at least twenty-five but not more than fifty percent; provided, that it is shown that the employee had actual knowledge of the rule so adopted by the employer; and provided, further, that the employer had, prior to the injury, made a reasonable effort to cause his or her employees to use the safety device or devices and to obey or follow the rule so adopted for the safety of the employees.

 

Old:     5. Where the injury is caused by the failure of the employee to use safety devices where provided by the employer, or from the employee’s failure to obey any reasonable rule adopted by the employer for the safety of the employees, which rule has been kept posted in a conspicuous place on the employer’s premises, the compensation and death benefit provided for herein shall be reduced fifteen percent; provided, that it is shown that the employee had actual knowledge of the rule so adopted by the employer; and provided, further, that the employer had, prior to the injury, made a diligent effort to cause his employees to use the safety device or devices and to obey or follow the rule so adopted for the safety of the employees.

 

New:    6. (1) Where the employee fails to obey any rule or policy adopted by the employer relating to a drug-free workplace or the use of alcohol or non-prescribed controlled drugs in the workplace, the compensation and death benefit provided for herein shall be reduced fifty percent if the injury was sustained in conjunction with the use of alcohol or non-prescribed controlled drugs.

               (2) If, however, the use of alcohol or non-prescribed controlled drugs in violation of the employer’s rule or policy is the proximate cause of the injury, then the benefits or compensation otherwise payable under this chapter for death or disability shall be forfeited.

               (3) The voluntary use of alcohol to the percentage of blood alcohol sufficient under Missouri law to constitute legal intoxication shall give rise to a rebuttable presumption that the voluntary use of alcohol under such circumstances was the proximate cause of the injury.  A preponderance of the evidence standard shall apply to rebut such presumption.  An employee’s refusal to take a test for alcohol or a non-prescribed controlled substance, as defined by §195.010, RSMo, at the request of the employer shall result in the forfeiture of benefits under this chapter if the employer had sufficient cause to suspect use of alcohol or a non-prescribed controlled substance by the claimant or if the employer’s policy clearly authorizes post-injury testing.

 

Old:     6. (1) Where the employee fails to obey any rule or policy adopted by the employer relating the use of alcohol or non-prescribed controlled drugs in the workplace, which rule or policy has been kept posted in a conspicuous place on the employer’s premises, the compensation and death benefit provided for herein shall be reduced fifteen percent if the injury was sustained in conjunction with the use of alcohol or non-prescribed controlled drugs; provided, that it is shown that the employee had actual knowledge of the rules or policy so adopted by the employer and, provided further that the employer had, prior to the injury, made a diligent effort to inform the employee of the requirement to obey any reasonable rule or policy adopted by the employer.

               (2) If, however, the use of alcohol or non-prescribed controlled drugs in violation of the employer’s rule or policy which is posted and publicized as set forth in subdivision (1) is the proximate cause of the injury, then the benefits or compensation otherwise payable under this chapter for death or disability shall be forfeited.  The forfeiture of benefits or compensation shall not apply when:

                           (a) The employer has actual knowledge of the employee’s use of the alcohol or non-prescribed controlled drugs and in the face thereof fails to take any recuperative or disciplinary action; or

                           (b) If, as part of the employee’s employment, he is authorized by the employer to use such alcohol or non-prescribed controlled drugs.

 


Analysis:

 

An employee who is injured as a result of the failure to obey employer safety rules will have benefits reduced by 25% to 50%.  The Act eliminates the posting requirement with respect to failure to use safety devises and the reduction in compensation.  Unfortunately, there are no guidelines as to when such reductions should be taken at 25% versus 50% or somewhere in between.

 

The Act increases the penalty when a violation of a drug or alcohol rule is involved, by mandating that benefits be reduced by 50%.  Posting of drug and alcohol rues is also eliminated.  Intoxication at or above the legal blood level shall create a rebuttable presumption that the voluntary use of alcohol was the proximate cause of the injury.  This presumption can be rebutted by a preponderance of the evidence.  Please also note that the employee may be denied all benefits if they refuse to take a test for alcohol or non-prescribed controlled substances, if the employer had sufficient cause to suspect the use of alcohol or the controlled substance.  Unfortunately, there is nothing addressing the situation where an employee does not report the accident until days after the injury when often times the testing for alcohol and drugs would be too late.

 

MEDICAL EXAMINATION

 

§287.140

New:    1. When an employee is required to submit to medical examinations or necessary medical treatment at a place outside of the local or metropolitan area from the employee’s principal place of employment, the employer or its insurer shall advance or reimburse the employee for all necessary and reasonable expenses.

 

Old:     1. When an employee is required to submit to medical examinations or necessary medical treatment at a place outside of the local or metropolitan area from the place of injury or the place of his residence, the employer or its insurer shall advance or reimburse the employee for all necessary and reasonable expenses.

 

New:    14.  The employer may allow or require an employee to use any of the employee’s accumulated paid leave, personal leave, or medical or sick leave to attend to medical treatment, physical rehabilitation, or medical evaluations during work time.  The intent of this subsection is to specifically supercede and abrogate any case law that contradicts the express language of this section.

 

Analysis:

 

The new law will only require an Employer to advance or reimburse the employee for mileage when the necessary medical treatment occurs outside of the local or metropolitan area from the employee’s principal place of employment. 

 

The new law will allow an Employer to have the employee use vacation or sick leave when medical treatment, evaluations, or physical rehabilitation occurs during work time.

 

VOCATIONAL TESTING & ASSESSMENT

 

§287.143

New:    Sections 287.144 to 287.149 shall not be construed to require the employer to provide vocational rehabilitation to a severely injured employee.  An employee shall submit to appropriate vocational testing and a vocational rehabilitation assessment scheduled by an employer or its insurer.

 

Analysis:

 

            The new law will provide that an employee must submit to appropriate vocational testing and a vocational rehabilitation assessment when required by an Employer/Insurer.  This will allow employers and insurers to have the employees tested rather than simply having a vocational expert review records and rely on any testing that may be done by the claimant’s vocational expert.

 

TTD DISQUALIFICATION FOR RECEIPT OF UNEMPLOYMENT COMPENSATION OR POST INJURY MISCONDUCT

 

§287.170

New:    3. An employee is disqualified from receiving temporary total disability during any period of time in which the claimant applies and receives unemployment compensation.

 

Old:     3. The employer shall be entitled to a dollar-for-dollar credit against any benefits owed pursuant to this section in an amount equal to the amount of unemployment compensation paid to the employee and charged to the employer during the same adjudicated or agreed-upon period of temporary total disability.

 

New:    4.  If the employee is terminated from post injury employment based upon the employee’s post injury misconduct, neither temporary total disability nor temporary partial disability benefits under this section, § 287.170, or §287.180 are payable.  As used in this section, the phrase “post injury misconduct” shall not include absence from the work place due to an injury unless the employee is capable of working with restrictions, as certified by a physician.

 

Analysis:

 

The Act disqualifies an employee from receiving TTD during any time period in which the claimant applies and receives unemployment compensation.  Although arguably when an employee applies for the unemployment benefits and holds himself or herself out as being employable, the old law would allow only for an offset for the unemployment benefits rather than a complete bar during the period at issue. 

 

The Act also provides that any employee who is terminated from post injury employment based upon post injury misconduct shall be ineligible to receive either TTD or TPD benefits.  In defining “post injury misconduct”, they exclude absence from work due to an injury, unless the employee is able to work with restrictions as certified by a physician.  They do not define what is required to be certified by a physician.  In addition, it does not state that the employer actually has to offer work.

 

PROOF OF PERMANENT DISABILITY

 

§287.190

New:    6. (2) Permanent partial disability or permanent total disability shall be demonstrated and certified by a physician.  Medical opinions addressing compensability and disability shall be stated within a reasonable degree of medical certainty.  In determining compensability and disability, where inconsistent or conflicting medical opinions exist, objective medical findings shall prevail over subjective medical findings.  Objective medical findings are those findings demonstrable on physical examination or by appropriate tests or diagnostic procedures.

               (3) Any award of compensation shall be reduced by an amount proportional to the permanent partial disability determined to be a preexisting disease or condition or attributed to the natural process of aging sufficient to cause or prolong the disability or need of treatment. 

 

Analysis:

 

The Act provides that permanent partial disability or permanent total disability be demonstrated and certified by a physician.  Again, the legislature fails to explain what is required for the PPD or PTD to be “certified by a physician”.  It further provides that in determining compensability and disability where there are inconsistent or conflicting medical opinions then objective medical findings shall prevail over subjective medical findings.  Objective medical findings are defined as those demonstrable on physical examination or by appropriate tests or diagnostic procedures.  Arguably, an employee would need objective medical findings to support their permanency; however, the statute does not address the situation when there are no objective findings and only subjective medical findings exist. 

 

WAGES & BONUSES

 

§287.253

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

 


Analysis:

 

A monetary bonus of up to 3% of an employee’s yearly compensation shall not be included in calculating the AWW or compensation rates.

 

ACCIDENT REPORTING

 

§287.380

New:    1.  Every employer or his insurer in this state, whether he has accepted or rejected the provisions of this chapter, shall within thirty days after knowledge of the injury, file with the division under such rules and regulations and in such form and detail as the division may require, a full and complete report of every injury or death to any employee for which the employer would be liable to furnish medical aid, other than immediate first aid which does not result in further medical treatment or lost time from work, or compensation hereunder had he accepted this chapter, and every employer or insurer shall also furnish the division with such supplemental reports in regard thereto as the divisions shall require.

 

Old:     1. Every employer or his insurer in this state, whether he has accepted or rejected the provisions of this chapter, shall within ten days after knowledge of an accident resulting in personal injury to any employee notify the division thereof, and shall, within one month from the date of filing of the original notification of injury, file with the division under such rules and regulations and in such form and detail as the division may require, a full and complete report of every injury or death to any employee for which the employer would be liable to furnish medical aid, other than immediate first aid which does not result in further medical treatment or lost time from work, or compensation hereunder had he accepted this chapter, and every employer or insurer shall also furnish the division with such supplemental reports in regard thereto as the divisions shall require.

 

Analysis:

 

The Employer or Insurer will have 30 days from the date of knowledge of an employee’s injury or death to file a full and complete report with the Division and the 10 day reporting requirement is deleted.

 

VOLUNTARY SETTLEMENT AGREEMENTS

 

§287.390

New:   1. Parties to claims hereunder may enter into voluntary agreements in settlement thereof, but no agreement by an employee or his or her dependents to waive his or her rights under this chapter shall be valid, nor shall any agreement of settlement or compromise of any dispute or claim for compensation under this chapter be valid until approved by an administrative law judge or the commission, nor shall an ALJ or the commission approve any settlement which is not in accordance with the rights of the parties as given in this chapter.  No such agreement shall be valid unless made after seven days from the date of the injury or death.  An ALJ, or the commission, shall approve a settlement agreement as valid and enforceable as long as the settlement is not the result of undue influence or fraud, the employee fully understands his or her rights and benefits, and voluntarily agrees to accept the terms of the agreement.

 

Old:     1. Nothing in this chapter shall be construed as preventing the parties to claims hereunder from entering into voluntary agreements in settlement thereof, but no agreement by an employee or his dependents to waive his rights under this chapter shall be valid, nor shall any agreement of settlement or compromise of any dispute or claim for compensation under this chapter be valid until approved by an administrative law judge or the commission, nor shall an ALJ or the commission approve any settlement which is not in accordance with the rights of the parties as given in this chapter.  No such agreement shall be valid unless made after seven days from the date of the injury or death. 

 

New:   5. In any claim under this chapter where an offer of settlement is made in writing and filed with the division by the employer, an employee is entitled to one hundred percent of the amount offered, provided such employee is not represented by counsel at the time the offer is tendered.  Where such offer of settlement is not accepted and where additional proceedings occur with regard to the employee’s claim, the employee is entitled to one hundred percent of the amount initially offered.  Legal counsel representing the employee shall receive reasonable fees for services rendered.

 

New:   6. As used in this chapter, “amount in dispute” means the dollar amount in excess of the dollar amount offered or paid by the employer.  An offer of settlement shall not be construed as an admission of liability. 

 

Analysis:

 

The Act allows parties to enter into voluntary agreements to settle claims and provides that approval shall be granted as long as the settlement is not the result of undue influence or fraud, and the employee fully understands his/her rights and benefits and voluntarily agrees to accept the terms of the agreement.  Obviously, the judges (and legal advisers until the end of the year when their positions are eliminated) can advise the claimants not to settlement.  I believe this provision was handled to remedy the frequent situation where an employee agrees to settlement and in spite of the judge’s recommendations, wants to proceed with the settlement, but the judge or legal advisor refused to make the approval.  They will no longer have that option.

 

The Act further provides that where a written offer is made and the employee is not represented by counsel, then the employee is entitled to 100% of the amount offered.  Of concern with this provision is that the language below in §287.800 requires strict construction.  Arguably if an employee receives an offer, the offer is filed with the Division as required, but not accepted and there is a final hearing where the case is found not to be compensable, the employee would still be entitled to 100% of the amount initially offered.  Obviously, in disputed or questionable cases, it is unlikely that any significant offers will be made to employees who are unrepresented.  Therefore, there is little risk of this situation, but it is a possibility. 

 

STANDARD OF REVIEW

 

§287.800

New:   1. ALJs, associate ALJs, legal advisors, the labor and industrial relations commission, the division of workers’ compensation, and any reviewing courts shall construe the provisions of this chapter strictly.

            2. ALJs, associate ALJs, legal advisors, the labor and industrial relations commission, and the division of workers’ compensation shall weigh the evidence impartially without giving the benefit of the doubt to any party when weighing evidence and resolving factual conflicts.

 

§287.808

New:   The burden of establishing any affirmative defense is on the employer.  The burden of proving an entitlement to compensation under this chapter is on the employee or dependent.  In asserting any claim or defense based on a factual proposition, the party asserting such claim or defense must establish that such proposition is more likely to be true than not true. 

 

Analysis:

 

The Act will impose a strict construction review with regard to the law and an impartial standard of review with regard to the facts and evidence.