The Missouri Labor Department’s Division of Worker’s Compensation (DWC) has more than doubled their number of fraud and noncompliance referrals to the state attorney general’s office for worker’s compensations violations this year as compared to 2009.

Such a large increase is a result of a number of factors, foremost amongst them the fact that employers are more likely to cut worker’s compensation coverage during a difficult economic time and that the DWC has stepped up efforts to correctly analyze and prosecute cases of worker’s compensation noncompliance.

An employer must possess worker’s compensation coverage in Missouri if he employs five or more workers. For an employer involved in construction, that number is only one or more workers. Failure to provide worker’s compensation coverage is a Class A misdemeanor and can be punished with a fine of up to $50,000. Misreporting injuries or failure to report injuries is a Class D misdemeanor.

If a company fails to adequately insure its employees, it should be punished. Call the Pennsylvania worker’s compensation lawyers of Lowenthal & Abrams, P.C. at 610-667-7511 if you have questions about this or find yourself in this kind of position.