2024 Department of Labor Annual Report (Text Version)

The 2024 Missouri Department of Labor & Industrial Relations Annual Report is displayed below in a text-only version for ease of accessibility. A PDF version is also available.

The figures in this report are Fiscal Year 2024 (July 1, 2023 to June 30, 2024) unless otherwise noted.

Table of Contents

• From the Director
• Department Overview
• Financial Appropriations
• Legislative Summary
• Labor & Industrial Relations Commission
• Division of Employment Security
• Division of Workers’ Compensation
• Division of Labor Standards
• Missouri Commission on Human Rights
• State Board of Mediation
• Department Goals
• Contact

From the Director

• Anna Hui, Department Director
• Matthew Hankins, Deputy Director

Director Anna Hui is in her seventh year leading the department, while Deputy Director Matt Hankins is in his second year in this position with 24 years of experience at the department in various roles. Together, they lead the Office of the Director, which provides all administrative functions for the department’s programs and staff.

Message from the Director

It is my honor to present the 2024 Missouri Department of Labor and Industrial Relations Annual Report.

Over the last several years, we have committed to a statewide effort to enhance the citizen experience with state government’s programs and services. As part of that, we are implementing citizen survey tools to solicit feedback and to maintain a culture of continuous improvement.

The department is working through state and private partnerships to provide easy access for Missourians to submit tips, concerns and complaints. The foundation we create can serve as the jumping-off point for other state agencies to use our work to create their own mechanism to collect this information.

In Missouri, we continue working better together – leveraging our collaboration with other agencies to reduce complexity and redundance while improving our citizens’ access to state services.

Sincerely,

Anna S. Hui

Administration Overview

The Office of General Counsel prepares legal opinions and litigates employment security and workers’ compensation cases. The office assists in collecting delinquent unemployment contributions and represents the department before the Administrative Hearing Commission, circuit courts, and the Missouri Court of Appeals.

Strategic Communications is responsible for creating and maintaining forms and policies, maintaining/updating internal and public websites, and responding to media inquiries. It’s responsible for the department’s social media presence and internal and external communications.

Financial Management processes and approves accounts payable and accounts receivable documents. It partners with divisions to develop and prepare the department’s annual budget. It assists divisions with grant budget preparations, and submits weekly, monthly, quarterly, and annual financial reporting.

Human Resources plans, organizes, and controls the activities and actions for recruitment and retention, hiring, payroll, benefits, discipline, training, employee relations, policy development, etc.; monitors pay structure for the department; conducts research and analysis to ensure the department is in compliance with state and federal employment laws; coordinates and oversees diversity and equal employment opportunity programs and drives departmental initiatives such as professional development and employee engagement.

Procurement makes travel arrangements, assists the department in the bidding and contracting process, and works with the Office of Administration’s Division of Purchasing for bids outside DOLIR’s authority.

General Services is responsible for facility management for all department buildings which includes system furniture, HVAC, janitorial, and related issues. General Services helps plan and assist in office or employee moves.

Department Overview

Vision Statement

To promote economic vitality, safety, and fairness for Missouri’s businesses and workers

The Department is Comprised of:

The Labor & Industrial Relations Commission is a government agency that oversees the Department of Labor and Industrial Relations. It's three commissioners are appointed by the governor. The LIRC hears appeals of workers’ compensation, unemployment insurance, and other labor-related issues.

The Division of Employment Security helps people who have lost their jobs. It provides unemployment insurance benefits to people who have lost a job through no fault of their own and collects unemployment insurance taxes from employers.

The Division of Workers' Compensation helps workers who get hurt on the job. It can help resolve disputes regarding medical bills, lost wages, and other benefits. It also investigates cases of fraud and noncompliance.

The Division of Labor Standards has five sections that help workers and businesses. It collects information about workplace injuries, enforces wage laws, provides safety advice, inspects mines and caves, and helps businesses improve workplace safety.

The Missouri Commission on Human Rights helps to prevent discrimination. It investigates complaints of discrimination and works to find fair solutions.

The State Board of Mediation helps to settle disagreements between public employers and public sector labor unions regarding representation of bargaining units. The board also conducts secret ballot elections to determine whether a bargaining unit will be represented by a particular union.

Financial Appropriations

The operating budget for the department is appropriated by the General Assembly and approved by the governor in the annual budget process. These appropriations fund payroll, equipment, and other expenses necessary to carry out the duties of the department. It does not include any benefit payments.

The Division of Employment Security amounts exclude tax interceptions and benefit payments.

The Division of Workers' Compensation amounts exclude Second Injury and Tort Victims’ claim payments and Second Injury Fund refunds.

Legislative Summary

Division of Employment Security

Since the appointment of Division Director Allen Andrews in October 2022, the Division of Employment Security has continued to see technological improvements and maintenance of the state’s unemployment insurance system made possible by HB 2168 (2022). The bill’s creation of the Unemployment Automation Fund allowed the redirection of a portion of employers’ first quarter unemployment insurance contributions to be used for such purposes.

Division of Workers' Compensation

No direct legislative changes to the state’s Workers’ Compensation Division occurred in 2024, though the legislative changes from 2023 continue to direct the way in which the division regulates the workers’ compensation insurance system. SB 24 (2023) allowed for the continued existence of the Second Injury Fund supplemental surcharge, a rate which was set at 0% for CY 2024. The bill also allowed for the surcharge to be adjusted to the nearest quarter percent, allowing for a higher degree of precision when deciding how much of a surcharge is necessary.

Division of Labor Standards

Division of Labor Standards Director Todd Smith retired after years of dedicated state service. Legislative Liaison Logan Hobbs became Division Director July 1, 2024. SB 109’s passage in 2023 has allowed for the uniform collection of inspection fees based on rhyolite tonnage from mining operations throughout the state. This has resulted in over $58,000 being used to support the Mine and Cave Safety Program. Voters approved Proposition A on November 5, 2024, increasing the minimum wage rate to first $13.75 per hour in 2025, then $15.00 per hour in 2026. The proposition also established a paid sick time benefit, which eligible employers must provide. No funding has been appropriated as of yet for the enforcement of these provisions.

State Board of Mediation

After the departure of the sole labor representative from the State Board of Mediation, the board has not had a quorum since July 2024. Nonetheless, all cases brought before the board that have not needed a determination rendered on a dispute are being processed by Acting Chair Logan Hobbs.

Labor & Industrial Relations Commission

Senator Lauren Arthur was appointed the employee member on the Labor and Industrial Relations Commission in July 2024. As a result of the passage of HB 417 (2023), the Labor and Industrial Relations Commission has been charged with ensuring that state agencies cannot reject applicants to state jobs solely on the basis of lack of a postsecondary degree.

Labor & Industrial Relations Commission

• Rodney J. Campbell, Chair, Public Member
• Kathryn Swan, Commissioner, Employer Member
• Lauren Arthur, Commissioner, Employee Member

The Labor and Industrial Relations Commission (LIRC) oversees the Department of Labor and Industrial Relations. It consists of three commissioners who are appointed by the governor and confirmed by the Senate: a public member, an employer member, and an employee member. The LIRC decides appeals of workers’ compensation, unemployment insurance, and other labor-related issues.

The LIRC decides appeals from decisions made by other government agencies about workers’ compensation, unemployment, and tort victims’ compensation fund claims. It also resolves disputes about prevailing wage rates and approves or disapproves new rules for the department.

In 2023, HB 417 was enacted. It says that state agencies cannot discriminate in job postings and hiring decisions based on whether a person has a postsecondary degree. If someone thinks they were not hired because of their lack of postsecondary degree, they can appeal to the LIRC.

Employment Security

• 2,866 decisions/orders issued
• 1,961 employee benefit appeals filed
• 396 appealed to Missouri Court of Appeals
• 43 cases pending with commission as of June 30, 2024
• 0 employer contribution appeals filed

Workers' Compensation

• 170 awards/orders issued
• 153 applications for review, modifications, settlements or commutation of award by administrative law judge filed
• 71 cases pending with commission as of June 30, 2024
• 30 appealed to the Missouri Court of Appeals
• 19 oral arguments heard

Prevailing Wage

• 0 objections filed
• 0 hearings held
• 0 decisions/orders issued
• 0 appealed to the court

Tort Victims Compensation

• 16 petitions for review filed
• 14 decisions/orders issued
• 0 appealed to the Missouri Court of Appeals

Postsecondary Degree

• 2 decisions/orders issued
• 1 job posting reports filed
• 0 postsecondary degree hiring appeals filed

Division of Employment Security

• Allen Andrews, Division Director
• Anthony Vaughan, Deputy Director

The Division of Employment Security (DES) provides unemployment insurance (UI) benefits to people who have lost a job through no fault of their own or are underemployed and collects UI taxes from employers.

The DES works to ensure that eligible claimants receive unemployment benefits quickly and accurately. To qualify for benefits, a claimant must have worked in a covered job and earned enough wages. The amount of benefits a claimant receives is based on past earnings.

The DES uses a system to verify the identity of claimants and prevent fraud when filing for unemployment benefits. The division also uses software to assess risk of fraud and may ask questions to confirm the identity of claimants.

The DES partners with other agencies to offer job-seeking services. The division helps people find jobs that match their skills and experience. The DES also has a program that helps people who are likely to run out of benefits.

The Shared Work program is an option for employers who need to reduce their workforce. It allows employers to keep employees working part-time instead of laying them off. Employees in this program receive a portion of their unemployment benefits.

• $325,244,705 employer contributions collected
• $224,456,337 amount of UI benefits paid
• 177,190 individuals that filed a claim
• 981,103 weekly requests for payment processed
• 197,432 employers liable for contributions

UI Appeals Section

The UI Appeals Section must provide a fair hearing for any claimant or employer who disagrees with a decision about benefits. The Appeals Section provides hearings for all appeals related to unemployment benefits and taxes.

When an appeal is filed, an appeals referee conducts a hearing and issues a decision. The decision may be appealed to the Labor and Industrial Relations Commission and then to the Missouri Court of Appeals.

• 18,587 appeals filed
• 23,252 appeals resolved by decision or order

UI Benefits Section

UI Benefits provides unemployment benefits to eligible workers who have lost their jobs due to no fault of their own. To qualify, individuals must have worked in covered employment and earned enough qualifying wages. The benefit amount is calculated based on the individual’s earnings, which means not all workers are eligible for 20 weeks of benefits.

• 20 – maximum number of weeks eligible for benefits
• $320 – maximum weekly benefit amount paid
• $291.08 – average weekly benefit amount paid

To prevent fraud, the DES uses an identity verification system for all unemployment claims. This system ensures that the information provided during the claim filing process is accurate and belongs to the person filing the claim. Individuals are evaluated by fraud detection software and assigned fraud risk scores. Those deemed high risk are presented with a series of questions to verify their identity.

The DES partners with other agencies to offer reemployment services. This includes job matching, which matches unemployed workers with job openings based on their skills and experience. The Reemployment Services and Eligibility Assessment (RESEA) Program helps claimants who are likely to exhaust their UI benefits by providing specialized reemployment services and a UI eligibility assessment.

Shared Work Program

The Shared Work Unemployment Compensation Program is an alternative to layoffs for employers facing a reduction in work. It allows employers to divide available work among affected employees instead of resorting to layoffs. These employees receive a portion of their unemployment benefits while working reduced hours.

• 20,088 employee layoffs avoided
• $5,307,531 paid in Shared Work benefits
• 609 employers

Under Shared Work, the firm retains its total workforce on a four-day-a-week basis. Reducing hours from 40 to 32 cuts production by the needed 20 percent.

UI Tax Section

The UI Tax Section helps businesses meet their obligations under the unemployment insurance program. Businesses must file quarterly reports and pay taxes. The tax rate is determined by the amount of benefits paid out, taxes paid in, and the average annual payroll.

The Tax Section monitors businesses to ensure they are complying with the law. Businesses that do not pay their taxes have an unfair advantage and can make it difficult for workers to receive benefits.

State law allows the DES to redirect monies to the Unemployment Automation Fund from Missouri employers liable for first quarter unemployment insurance contributions (taxes). This money will be used for the maintenance and upgrade of the unemployment insurance program’s online application, UInteract.

• 3,398,789 employees received UI coverage
• 197,432 employers liable for contributions
• 28,536 employers not previously liable for UI tax became liable
• 11,311 investigations conducted
• 4,386 workers identified as improperly classified

UI Integrity Section

The UI Integrity Section works to prevent fraud and overpayments in the UI program. The section compares information from different databases to identify people who may be improperly receiving benefits.

DES New Hire Cross-Match Unit

• 13,881 matches detected for investigation
• New hire cross-match unit investigated cross-matches
• 5,984 overpayment determinations established
• Over $2.5 million in overpayments discovered

One common type of fraud is when people continue to collect benefits after they have returned to work. The DES uses cross-matching to compare new hire data with unemployment claims. This has helped the division identify millions of dollars in improper payments.

The DES collects overpaid benefits through various methods, including intercepting tax refunds and lottery winnings. The division is also part of the Integrity Data Hub, a multi-state project to prevent fraud.

Quarterly wage cross-matches detected $2 million in improperly paid benefits.

DES recovered:

• $17.8 million of improperly paid benefits
• $2.8 million in fraud penalties

The most egregious overpayments of benefits due to fraud are investigated and referred to the Missouri Attorney General for criminal prosecution.

The UI Integrity Section is responsible for two federal programs: Benefit Accuracy Measurement (BAM) and Tax Performance System (TPS). BAM audits both paid and denied claims, while TPS monitors tax performance.

The UI Integrity Section also provides statistical information and reports to government officials and other stakeholders. The section helps ensure that Missouri's unemployment insurance system complies with federal laws and policies.

• 930 benefit claims audited
• 912 tax cases audited

Employment & Earnings

UI Claims & Benefits

Unemployment Compensation Fund

Balance on hand (July 1, 2023): $977,797,121.91

Balance on hand (June 30, 2024): $1,120,196,471.32

Cash on hand (June 30, 2024):

• Clearing Account, Jefferson City, MO: ($455,076.94)
• Benefit Account, Jefferson City, MO: $9,452,274.35
• Trust Fund Account, U.S. Treasury: $1,111,199,273.91

Division of Workers’ Compensation

• Pamela Lewis, Former Division Director
• Ben Qualls, Acting Division Director

The Division of Workers’ Compensation helps workers who get hurt on the job. They can help resolve disputes regarding medical bills, lost wages, and other benefits and investigates fraud and noncompliance.

The origin of the Division of Workers’ Compensation (DWC) began in 1925 with the Missouri’s workmens' compensation law. Over the years, Missouri added programs to assist those who were injured or died while on the job. The Second Injury Fund (SIF) became law in 1943, the Tort Victims’ Compensation Fund was passed in 1987 and the Line of Duty compensation fund was added in 2009.

The division partners with the Division of Labor Standards, providing injury and fatality data guidance for industry partners through the Workers' Safety Program. The DWC is funded through a tax surcharge on insurance carriers’ net deposits, net premiums or net assessments for workers’ compensation insurance, and net premiums equivalent for self-insured employers. The administrative tax and surcharge is capped at 2.0% per state law, the SIF surcharge is capped at 3.0% and the SIF supplemental is capped at 1.0%.

• 91,597 workplace injuries reported
  • 80,819 First Reports of Injury (FROI) received without Claim for Compensation
  • 9,001 both FROI received and Claims for Compensation filed
  • 1,777 Claims for Compensation filed without FROI

Self-Insurance Overview

Employers in Missouri must either buy workers’ compensation insurance or get approval from the DWC to self-insure. This means they must be able to pay for any workers’ compensation claims themselves.

Employers must report workplace injuries to the DWC within 30 days of knowing about the injury. Failure to report an injury can result in a fine or imprisonment. Employees can file a claim for compensation if they disagree with the employer’s handling of a workplace injury.

Security Held by Fiscal Year

• 2022: $656,187,005
• 2023: $676,187,005
• 2024: $709,225,449

Self-Insurance Coverage

Second Injury Fund Benefits

The Second Injury Fund (SIF) is a program that helps injured workers who have certain previous disabilities and potential benefits available are dependent upon the date of the workers injury. It encourages employers to hire workers with disabilities by protecting them from liability for these previous injuries. The SIF is funded by an extra charge on workers’ compensation premiums.

Administrative Law Judges

*Asterisk denotes Chief Administrative Law Judge. Information as of Oct. 2, 2024.

• Ryan Asbridge
• Karla Boresi
• Skyler Burks
• Maureen Byrne
• Kenneth Cain
• Kevin Elmer
• Bruce Farmer
• Hannelore Fischer*
• Karen Fisher
• Suzette Flowers
• Emily Fowler
• Melissa Gilliam
• Kathleen Hart
• Angie Heffner*
• Joseph Keaveny
• Edwin Kohner
• Melodie Powell
• John Ottenad
• Lawrence Rebman
• Cole Rosenblum
• Mark Siedlik
• Carl Strange*
• Kevin Thomas
• Jason Tilley*
• Amy Young

Adjudication

Most workers’ compensation cases are resolved through settlement between the parties and without proceeding to a hearing. A hearing can be costly and time-consuming. All settlements must be approved by a DWC Administrative Law Judge (ALJ). Parties can request that their case be set before an ALJ to assist them with discussing issues or for a formal mediation to work toward compromise settlement. For cases not resolved by compromise settlement, the ALJs conduct hearings and make determinations on what, if any, benefits are owed to the injured worker.