Frequently Asked Questions

+ Business Names
+ Registered Agent/Office
+ Corporations
+ Partnerships
+ Online Filings
+ Foreign Entities
+ General Questions
+ Unemployment Insurance Reporting
+ Workers' Compensation
+ Am I required to carry workers' compensation insurance?
According to the Missouri law, workers' compensation coverage is compulsory for all employers that have five or more employees.  Partners and sole proprietors may elect to obtain workers' compensation coverage on themselves.  Construction industry employers who erect, demolish, alter or repair improvements must carry workers' compensation insurance if they have one or more employees.
+ What are the workers' compensation provisions that apply to a limited liability company?
With regard to limited liability companies defined in Section 347.015, RSMo, you need to obtain workers' compensation insurance coverage for the employees of the limited liability company who are not members of the limited liability company.   Members of the limited liability company must be provided workers' compensation coverage.  However, members of the limited liability company may individually elect to reject coverage by providing a written notice of rejection, on a form developed by the Missouri Department of Insurance, to the Limited Liability Company and insurer.
+ What are the workers' compensation provisions that apply to a hearing loss case?
Under the workers' compensation law, loss of hearing due to industrial noise is regarded as an occupational disease, and is defined as loss of hearing in one or both ears due to prolonged exposure to harmful noise in employment.  Harmful noise is noise that produces occupational deafness.  The statutory period of limitations for cases involving loss of hearing due to industrial noise does not begin to run until the employee files a claim for compensation with the Division of Worker's Compensation.

The claim for compensation for occupational deafness may be filed after six months' separation from the noisy work for the last employer in whose employment the employee was exposed to harmful noise.  The date of the disability is the last day after the period of separation from the noisy work.  For additional questions that apply to your specific situation you need to consult an attorney.
+ Who is an "employee" under the workers' compensation law?
Under the Missouri worker's compensation law, an employee is defined as every person in the service of an employer pursuant to any contract of hire, whether express or implied, verbal or written, or pursuant to any appointment or election, including executive officers of corporation.
+ Can a corporation be exempt from workers' compensation requirements?
A corporation may be exempt from workers' compensation requirements only if there are no more than two owners of the corporation, who are also the only employees of the corporation.  It requires filing with the Division of Worker's Compensation a notice of election to withdraw.  A corporation that makes this election may withdraw its election by filing with the Division of Worker's Compensation a notice to withdraw the election.  The notice is effective thirty (30) days after the date of filing, or at a later date as may be specified in the notice of withdrawal.  For additional information, please call the Division of Worker's Compensation's Insurance Unit at (573) 526-6004.
+ When is an injured worker entitled to receive vocational rehabilitation benefits?
Under the Missouri workers' compensation law, if an employee sustains an injury of sufficient severity he or she may receive vocation rehabilitation services that are reasonably necessary to restore the employee to suitable, gainful employment, if the employer/ insurer authorizes the rehabilitation services.  If the employer determines that there had been a loss of suitable gainful employment, the employer may retain the services of a rehabilitation practitioner.  In other words, vocation rehabilitation is strictly voluntary on the part of the employer.  The Division of Worker's Compensation may notify the employer that the injured employee may require vocation rehabilitation.  Examples of an injury of sufficient severity as determined by the treating physician are traumatic injury to the spinal cord, severe burns, serious head injury, loss of sight in one of both eyes, loss of hearing in both ears or loss in serious head injury, loss of sight in one or both eyes, loss of hearing in both ears of speech or severe mangling, crushing, amputation or nerve impairment of a major extremity.

Contact the Department of Elementary and Secondary Education, Division of Vocation Rehabilitation, Central Office at (573) 751-3251 for information regarding eligibility to receive vocational rehabilitation services.
+ What is the period of Limitations to a file claim for compensation with the Division of Worker's Compensation?
Under the Missouri workers' compensation law, an employee must file a Claim for Compensation PDF file with the Division of Worker's Compensation, within two years from the date of injury or last payment made on account of the injury by the employer or its workers' compensation insurance carrier.  The period of limitations is extended to three years if the employer/insurer does not timely file the First Report of Injury with the Division of Worker's Compensation.
+ When does the Division of Worker's Compensation lose jurisdiction over a workers' compensation case?
Generally, the Division of Worker's Compensation loses jurisdiction in a workers' compensation case when the following situations occur:
  • The statutory period of limitations has run out
  • When either party dismisses the case and the administrative law judge enters an Order of Dismissal
  • When the administrative law judge or legal advisor approves a stipulation or settlement agreement entered into by the parties to resolve all issues in the case
  • When the administrative law judge issues an award after an evidentiary hearing
If you have questions about your case, please call the Division of Worker's Compensation's toll free number at (800) 775-2667.
+ Does the worker's compensation law require an employer to compensate an employee for pain and suffering?
No.  The employee is entitled to three benefits only under the worker's compensation law: medical, temporary total disability benefits and permanent partial/total disability benefits.
+ Where can I get a list of classification codes for the employees in my business?
The list of classification codes and rates can be obtained from the National Council on Compensation Insurance Inc.  by calling (800) 622-4123.
+ How do the definitions of "injury" and "accident" affect a workers' compensation case?
If the injury occurs on or after August 28, 2005, the new definitions will apply.   Primarily, an employee will have to show that work was "the prevailing factor" in causing both the resulting medical condition and disability.

An accident means an unexpected "traumatic event or unusual strain identifiable by time and place of occurrence caused by a specific event during a single work shift." The prevailing factor is defined as the primary factor in relation to any other factor, causing both the resulting medical condition and disability.

An occupational disease is compensable only if the occupational exposure was the prevailing factor in causing the resulting medical condition and disability.  Aging or normal activities of day-to-day living cannot be considered when determining if the occupational disease is compensable.

The same standards apply to repetitive motion injury.  Occupational disease is compensable if the injured worker can demonstrate the workplace caused the occupational disease.  The prevailing factor is defined as the primary factor in relation to any other factor, causing both the resulting medical condition and disability.
+ Are there any injuries that are excluded from being compensable under the law?
After August 28, 2005, all injuries and occupational disease must meet the new standard of work being "the prevailing factor" in causing the injury or disease.

The law states that an injury resulting directly or indirectly from idiopathic causes is not compensable.  An idiopathic injury is one that is innate or is a peculiar weakness personal to the employee, unrelated to employment. 

Certain injuries that occur when the employee is going to and from the employer's premises are excluded.  Under the law, only injuries that occur on property owned or controlled by the employer would probably be compensable. 

An injury occurring in a company owned vehicle that is being driven by the employee to and from home would no longer be compensable.  This provision would not affect injuries occurring while driving a company owned car while the person is performing his or her job duties. 
+ What are the requirements for an employee to notify the employer about an accident or occupational disease before starting a workers' compensation proceeding?
The law states that, with respect to any accident, an employee has to provide written notice of the time, place and nature of the injury, and the name and address of the person injured to the employer, no later than thirty days after the accident, unless the employer was not prejudiced by failure to receive the notice.

There is also a notice requirement for occupational disease or repetitive trauma injuries.  The employee has to provide written notice of the time, place and nature of the injury, and the name and address of the person injured to the employer, no later than thirty days after the diagnosis of the condition, unless the employee can prove that the employer was not prejudiced by failure to receive the notice.

The employee can still file a Claim for Compensation with the Division of Worker's Compensation within the applicable statutory period of limitations.  The Administrative Law Judge, Commission or the Court of Appeals would determine the issue on whether the employee provided the notice to the employer or whether the employer was prejudiced by failure to receive the notice, as required by law.
+ What happens if an employee is injured because of the employee's failure to use safety devices provided by the employer or failure to obey a reasonable safety rule of the employer?
Under the law, if an employee has an injury caused by the employee's failure to use safety devices provided by the employer or failure to obey reasonable safety rules of the employer, the compensation and death benefits are reduced at least twenty-five but not more than fifty percent.  However, it must be shown that the employee had actual knowledge of the employer's safety rules and the employer had made a reasonable effort to make sure that the employee used the safety devices and/or obeyed the safety rules.
+ Does the law provide for a reduction in benefits for an injury sustained by the employee based upon the use of drugs or alcohol?
Under the law, if the employee fails to obey any rule or policy adopted by the employer on a drug-free workplace or on the use of alcohol or non-prescribed controlled drugs in the workplace, and the employee sustains an injury while using alcohol or non-prescribed controlled drugs, the compensation and death benefits shall be reduced fifty percent.  If the employee's use of alcohol or non-prescribed controlled drugs in violation of the employer's rule or policy is the proximate cause of the employee's injury, the benefits or compensation payable for death or disability are forfeited.

Under the law, there is a rebuttable presumption that the alcohol was the proximate cause of the injury if the voluntary use of alcohol to the percentage of blood alcohol in the employee's system meets the legal intoxication standard under Missouri law.  An employee, by a preponderance of the evidence standard, can overcome the presumption that the intoxication was not the proximate cause of the injury.  Under the law, an employer can request an employee to take a test for alcohol or a non-prescribed controlled substance if the employer suspects usage by the employee or if the employer's policy clearly authorizes the post-injury testing.  If the employer does request a test of the employee when an injury occurs and the employee refuses to take the test, the employee forfeits all workers' compensation benefits.
+ Does the law contain any provisions regarding an employee who sustains an injury while participating in a recreational activity or program?
Benefits are forfeited where the recreational activity or program is the prevailing cause of the injury regardless of the fact that the employer may have promoted, sponsored or supported the recreational activity or program.  The forfeiture of benefits does not apply when the employee was directly ordered by the employer to participate in the recreational activity or program, or the employee was paid wages or travel expenses while participating, or the injury occurs on the employer's premises due to an unsafe condition of the premises and the employer had actual knowledge of the employee's participation in the recreational activity or program and of the unsafe condition of the premises and failed to stop the activity or cure the unsafe condition.
+ What are the penalties under the new law for workers' compensation fraud?
The penalties for certain types of fraud are a class D felony.  For example, any person who knowingly presents a false or fraudulent claim for the payment of benefits on a workers' compensation claim, or any insurance company or self-insured employer refusing to comply with known and legally indisputable compensation obligations with intent to defraud.

The following fraud cases are still regarded as a class A misdemeanor.  These include, but are not limited to, to knowingly present multiple claims for the same occurrence with intent to defraud, to knowingly assist or conspire with any person who knowingly presents a false or fraudulent claim for the payment of benefits, to knowingly submit a claim for a health care benefit that was not used by or on behalf of the claimant, to knowingly make false or fraudulent statements with regard to entitlement to benefits with the intent to discourage an injured worker from making a legitimate claim.

If a person has previously been found to be guilty or pled guilty to workers' compensation fraud, and subsequently commits fraud, that person shall be guilty of a class C felony.

If a person prepares or provides an invalid certificate of insurance as proof of workers' compensation coverage the person is guilty of a class D felony and is liable to the state of Missouri for a fine up to ten thousand dollars or double the value of fraud, whichever is greater.
+ What is noncompliance and what are the penalties for an employer who does not insure its workers' compensation liabilities as required by law?
Every employer who is subject to the requirements of the workers' compensation law must insure its entire workers' compensation liability with an insurance carrier that is authorized to insure such liability in the State of Missouri by the Missouri Department of Insurance or qualify to be a self-insured employer by the Division of Workers' Compensation.  Noncompliance is the failure of the employer to carry workers' compensation insurance when required to do so under the law. An employer who knowingly fails to insure its workers' compensation liabilities is guilty of a class A misdemeanor and liable to the state of Missouri for a penalty of up to three times the annual premium or up to fifty thousand dollars, whichever amount is greater.  A subsequent violation is a class D felony.
+ When do insurers and third party administrators have to report an injury to the Division of Worker's Compensation?
Insurers and third party administrators have thirty days from the employer's knowledge of the injury to file a First Report of Injury with the Division of Workers' Compensation under the rules and in such form and detail as the Division of Worker's Compensation may require.  The law provides that any employer or insurer who knowingly fails to report any accident to the Division of Worker's Compensation or knowingly makes a false report or statement in writing to the Division of Worker's Compensation shall be deemed guilty of a misdemeanor.
+ Are there any provisions in the law with respect to the total medical costs that an employer can pay in a workers' compensation case that is not used in adjusting the experience modification factor?
Under the law an employer may pay up to one thousand dollars ($1,000.00) out-of-pocket for injury related medical costs only if there is no lost time greater than three days and no claim for compensation is filed by the employee.  Payment of the total medical costs that do not exceed one thousand dollars cannot be applied to adjust the employer's workers' compensation experience modification for the determination of insurance premiums.  If medical costs exceed one thousand dollars, the employer's insurance company must pay the costs and reimburse the employer for any out-of-pocket expenses already paid.  Even if the employer pays the medical costs, this injury must still be reported to the Division of Worker's Compensation.
+ Can an employer require employees to take leave time away from work for medical treatment of the employee's workers' compensation injury?
Under the law, the employer may allow or require the employee to use accumulated paid leave, personal leave or medical or sick leave to attend to medical treatment, including physical rehabilitation visits and the rating evaluation.  The mileage reimbursement requirements have been changed whereby travel expenses are paid to the employee if the employee is required to travel outside of the local or metropolitan area from the employee's principal place of employment.
+ Is the bonus that an employer gives to an employee included in calculating an employee's average weekly wage for receiving workers' compensation benefits under the law?
An employer may pay a bonus to an employee in an amount up to three percent of the employee's annual compensation without the bonus being used in the calculation of the employee's average weekly wage.
+ If an injured employee collected unemployment insurance benefits while he or she was off work, what can the employer do?
Under the law, an employee is disqualified from receiving unemployment compensation and temporary total disability benefits at the same time.  The disqualification from receiving temporary total disability benefits is only for the period of time in which the employee received unemployment compensation.
+ Is there a situation where an employee is not entitled to receive potential temporary total or temporary partial disability benefits under the new law?
A new concept of "post-injury misconduct" has been introduced into the workers' compensation law.  If the injured employee returns to work and is terminated from that employment due to "post-injury misconduct" the employee is not eligible to receive temporary partial or temporary total disability benefits.  The phrase "post injury misconduct" does 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.
+ Tax Information
+ Sales by Farmers at Farmers Markets
+ Tire and Lead-Acid Battery Fee
+ Cigarette and Other Tobacco Products