Governor signs workers' comp restrictions

JEFFERSON CITY, Mo. -- Culminating a long effort by Republican lawmakers and business groups, Gov. Matt Blunt on Wednesday signed into law legislation he said will fix "fundamental problems" in Missouri's workers' compensation system.

Blunt said the expansive changes, which will take effect Aug. 28, will lower workers' compensation costs for Missouri employers and make the state more competitive with other states in luring jobs.

"We had to address the fact that workers' compensation costs in Missouri exceed workers' compensation costs in other states," Blunt said. "That hurts economic development in our state."

Organized labor groups label the law as a betrayal of the state's commitment to protecting injured workers and urged Blunt to veto it. Although labor officials helped craft a compromise bill that won Senate approval, the final measure reflects the more business-friendly position preferred by the House of Representatives. Republicans hold solid majorities in both chambers, and the bill passed largely along partisan lines.

"This is a deal where one party has all the cards," said Herb Jackson of the Missouri AFL-CIO. "Rather than using that clout in the best interests of the state, they chose to ram this bill down everybody's throats."

Attending the bill signing ceremony at the governor's invitation, Kathryn Swan of Cape Girardeau called the measure a much-needed reform to crack down on workers who make fraudulent claims. Swan owns JCS Tel-Link, which employs 22 workers.

"I hope that employees who are genuinely injured on the job receive the compensation they deserve and the treatment they deserve," Swan said. "The flip side is this ensures insurance premiums will be reasonable and employees will not abuse the system."

One of the bill's major changes will require an employee to prove their job was "the prevailing" cause of an injury rather than "a substantial" factor, the lower threshold set in existing law. In other words, even if work contributes to an injury, an employee won't be eligible for workers' compensation benefits unless work is proven the main cause.

Opponents of the bill say that provision could backfire on employers as many workers who are denied the opportunity for redress through the workers' compensation system will instead pursue claims in court, where detailed schedules of how much particular injuries are worth wouldn't apply.

Since the system was established in Missouri nearly 80 years ago, it has been the exclusive remedy for workers injured on the job. In exchange for workers giving up the right to sue, the system provides an administrative process for pursuing claims with the intent of providing uniform compensation for various types of injuries.

In 1995, the Oregon Legislature modified that state's workers' compensation law to specify that an employee could not sue for a job-related injury if denied workers' compensation benefits for failure to prove work was "the major" contributing factor. In 2001, the Oregon Supreme court ruled the state's exclusive remedy provision was unconstitutional since it left parties whose injuries resulted at least in part from on-the-job factors with no means of seeking redress. The Oregon Constitution guarantees the right of residents to pursue remedies through the courts.

Since the Missouri Constitution contains a similar provision, state Rep. Rachel Storch, D-St. Louis, predicted the outcome will be the same when the new law faces the inevitable legal challenge.

"When you raise the burden so high that a worker can't get redress under the exclusive remedy, but they also can't seek redress through the courts, that's unconstitutional," Storch said.

The bill's sponsor, state Sen. John Louden, R-Ballwin, said it doesn't lock the courtroom doors to anyone.

"Nothing at the end of the day is going to bar the worker who's carved out of the system from taking the case to court," Louden said.

Judicial expansions of the workers' compensation system over the years in favor of workers, Louden said, have prompted a need to scale back the law to ensure fairer treatment of employers.

Other provisions of the law will require the administrative law judges that preside over workers' compensation disputes to construe state laws neutrally instead of giving the benefit of the doubt to workers, as is currently the case.

Administrative judges will also be subject to performance reviews and periodic re-appointment to office. While supporters say that ensures such judges will rule more fairly, opponents are concerned the opposite will occur as judges will make decisions with an eye toward keeping their jobs.

The measure also would reduce or eliminate benefits for workers who violate company policies on drug and alcohol use and limit attorney fees in workers' compensation cases. Workers who are fired for unspecified misconduct after an injury would lose all benefits.

The bill is SB 1.

mpowers@semissourian.com

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