Fraud and noncompliance referrals to the state attorney general for workers’ compensations violations from the Missouri Labor Department’s Division of Worker’s Compensation (DWC) have increased sharply, more than doubling in the first quarter of 2010 from their numbers in 2009.

This increase is likely a consequence of two factors. First, the DWC has increased efforts to analyze and correctly prosecute cases of worker’s compensation noncompliance, and secondly, employers are more likely to cut worker’s compensation coverage during a difficult economy.

An employer with five or more employees – or one or more if that employer is involved in construction – must possess worker’s compensation coverage in Missouri. Failure to do so is a class A misdemeanor and can result in a fine of up to $50,000. Failing to report injury or misrepresenting injuries is a class D misdemeanor.

When a company fails to adequately insure its employers or provide them with worker’s compensation coverage, they should be punished for it. Contact the New Jersey workers’ compensation attorneys of Levinson Axelrod by calling 800-346-5529 if you have questions about this or find yourself in this kind of position.