Attorney General's News Release

December 28, 2005

Nixon compels record number of businesses to obtain workers' comp insurance, collects record penalties

Jefferson City, Mo. — A record number of Missouri businesses obtained workers' compensation insurance in 2005 as a result of action taken by Attorney General Jay Nixon. The employees of 362 businesses that were not complying with state laws requiring the insurance now have that protection, Nixon said. That number bests the 148 employers coming into compliance with the law in 2004.

The Attorney General's Office also collected more than $755,000 in penalties in 2005 from employers who were not in compliance with the law. That amount also is a record, topping the $557,000 collected by Nixon for non-compliance in 2004.

"Businesses that don't carry workers' compensation insurance in violation of the law have an unfair advantage over their competitors, in addition to putting their employees at great risk," Nixon said. "We will continue to be aggressive in this area to take legal action to protect employees and level the playing field. Thousands of Missouri employees who weren't protected by workers' compensation insurance a year ago now are."

Among the more notable non-compliance cases prosecuted by Nixon's office in 2005 were:

• A guilty plea entered by South-Western AG Marketing Inc., located in Barry County, and its president, Daniel Mackey. Mackey and his business employed between 99 and 130 employees without workers' compensation insurance. They were ordered to pay a $65,000 penalty to the workers' compensation fund and also were required to reimburse the state for any payments awarded to their workers for injuries received while South-Western AG Marketing was uninsured. Mackey also has been ordered to comply with Missouri laws as a condition of his probation.
• Criminal charges filed in St. Charles County against Robert Salter and his business Daystar Health Services for allegedly violating the workers' compensation law a second time. Daystar allegedly employed 137 to 146 employees without having workers' compensation insurance. Salter also has been charged with violating the terms of his probation from his guilty plea in 2002 for failing to carry workers' compensation insurance.

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to the Press Secretary.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818