Casey Guernsey's Capitol Report -- Improving the Legal Environment for Business

As I talk to business owners throughout the district, there is a recurring theme that emerges no matter where I go. People want to make it easier to do business here in Missouri. Whether it is an out-of-control legal system or burdensome state and federal regulations, our small businesses continue needing relief. I strongly believe we must allow for an environment to grow jobs and business, but it is absolutely critical to keep those businesses and jobs we already have in Missouri.
One way we can help existing businesses in the state is by reforming our workers’ compensation system. That is the purpose behind HB 1403 which was given initial approval in the Missouri House this week. This bill makes workplace accidents, injuries, and diseases easier to resolve for employees and less expensive for small businesses. It accomplishes this by making three significant changes to the law.
First, HB 1403 puts occupational diseases back under workers’ compensation where it was prior to 2005. In 2005, a change in the law resulted in court rulings that moved cases involving occupational diseases outside of the workers compensation system. As a result, these cases are now ending up in court causing litigation costs to rise on all of our businesses. And for a small business, a trial means a costly defense that may lead to huge damage awards and bankruptcy. Not surprising to anyone, these lawsuits have resulted in a huge windfall for trial attorneys with little left for the injured party or small business.
Next, the bill also includes much needed co-employee liability reform. A court recently ruled that injured workers can sue co-workers for action or inaction as part of their workers compensation case. HB 1403 alleviates this burden on employers and their workers by raising the standard to gross negligence for an employee to be sued. Here in the House, we think that employees shouldn’t be sued for simply doing their job.
Finally, HB 1403 includes a provision that will reform the 2nd Injury Fund, moving it closer to solvency. The fund has been in trouble for some time, and it seems that past legislatures have been unwilling to make the difficult decision to fix the problem.
The 2nd Injury Fund collected $43 million from Missouri businesses last year while its obligations increased to $77 million. This bill gives the business community several key reforms. For example, the bill eliminates a claim for permanent partial disability and suspends the lifetime payment to someone who can still be gainfully employed. While I would be in favor of eliminating the 2nd Injury Fund, I believe this is a good step toward adequate reform.
HB 1403 will help businesses by improving the legal environment for Missouri businesses. This bill is critical toward preparing the business climate for growth as the economy improves.
It is an honor to serve you in the Missouri House. If you would like to discuss these or any issue with me, please call 573.751.4285 or email me at casey.guernsey@house.mo.gov.