HCS HB 629 -- WORKERS' COMPENSATION

SPONSOR:  Hunter

COMMITTEE ACTION:  Voted "do pass" by the Special Committee on
Workforce Development and Workplace Safety by a vote of 7 to 5.

This substitute specifies that in applying the provisions of the
Workers' Compensation Law it is the intent of the legislature to
reject and abrogate Schoemehl v. Treasurer of the State of
Missouri, 2007 WL58370 and all cases interpreting, applying, or
following this case.  The substitute reaffirms that the right for
compensation for permanent total disability of an injured
employee terminates on the date of the injured employee's death.
No person will be eligible to receive benefits from the Second
Injury Fund for injuries occurring on or after January 1, 2008.
The Division of Workers' Compensation within the Department of
Labor and Industrial Relations will compute the amount of money
needed to award benefits to persons injured prior to January 1,
2008, and assess employers as specified by law.

Any cause of action for whistle-blowing or refusal to commit an
illegal act previously existing in common law is abrogated.

Any individual not hired under a contract is employed at-will and
may be discharged at any time, with or without cause except if:

(1)  The employee was discharged as a whistle-blower; or

(2)  The employee was discharged for refusing to commit an
illegal act.

The circumstances for the determination of a cause of action for
wrongful discharge because of these actions are specified in the
substitute.

FISCAL NOTE:  Estimated Income on General Revenue Fund of
$194,022 in FY 2008, FY 2009, and FY 2010.  Estimated Income on
Other State Funds of Unknown in FY 2008, FY 2009, and FY 2010.

PROPONENTS:  Supporters say that our workers' compensation
statutes are to provide health care coverage to workers who are
injured on the job and were never intended to provide life
insurance.  Schoemehl v. Treasurer of the State of Missouri
creates huge unforseen fiscal costs for all employers and the
state.

Testifying for the bill were Representative Hunter; James
Kennedy, Evans & Dixon; Missouri Employers Mutual Insurance
Company; Missouri Merchants and Manufacturers Association;
Associated Industries of Missouri; National Federation of
Independent Business; Missouri Self Insurers Association;
Missouri Chamber of Commerce and Industry; Harry Gallagher,
Property Casualty Insurers Association of America; Missouri
Retailers Association;  Missouri Grocers' Association; Associated
Builders and Contractors, Heart of America Chapter; and Missouri
Restaurant Association.

OPPONENTS:  Those who oppose the bill say that if the Second
Injury Fund and the associated statutes need to be modified, they
are ready to work on the modifications but oppose doing away with
the program.

Testifying against the bill were Missouri AFL-CIO; and United
Steelworkers District 11.

OTHERS:  Others testifying on the bill say that the cost of
insurance is based on risk factors and the Schoemehl v. Treasurer
of the State of Missouri decision will raise insurance costs for
the 60% of employers who are not self insured, and the 40% who
are self insured face additional costs.

Testifying on the bill were Division of Workers' Compensation,
Department of Labor and Industrial Relations; and American
Insurance Association.

Missouri House of Representatives
94th General Assembly, 1st Regular Session
Last Updated July 25, 2007 at 11:20 am