287.390. Compromise settlements, how made--validity, effect, settlement with minor dependents--employee entitled to one hundred percent of offer, when. - Missouri Statutes

Compromise settlements, how made--validity, effect, settlement withminor dependents--employee entitled to one hundred percent of offer,when.

287.390. 1. Parties to claims hereunder may enter into voluntaryagreements in settlement thereof, but no agreement by an employee or his orher dependents to waive his or her rights under this chapter shall bevalid, nor shall any agreement of settlement or compromise of any disputeor claim for compensation under this chapter be valid until approved by anadministrative law judge or the commission, nor shall an administrative lawjudge or the commission approve any settlement which is not in accordancewith the rights of the parties as given in this chapter. No such agreementshall be valid unless made after seven days from the date of the injury ordeath. An administrative law judge, or the commission, shall approve asettlement agreement as valid and enforceable as long as the settlement isnot the result of undue influence or fraud, the employee fully understandshis or her rights and benefits, and voluntarily agrees to accept the termsof the agreement.

2. A compromise settlement approved by an administrative law judge orthe commission during the employee's lifetime shall extinguish and bar allclaims for compensation for the employee's death if the settlementcompromises a dispute on any question or issue other than the extent ofdisability or the rate of compensation.

3. Notwithstanding the provisions of section 287.190, an employeeshall be afforded the option of receiving a compromise settlement as aone-time lump sum payment. A compromise settlement approved by anadministrative law judge or the commission shall indicate the manner ofpayment chosen by the employee.

4. A minor dependent, by parent or conservator, may compromisedisputes and may enter into a compromise settlement agreement, and uponapproval by an administrative law judge or the commission the settlementagreement shall have the same force and effect as though the minor had beenan adult. The payment of compensation by the employer in accordance withthe settlement agreement shall discharge the employer from all furtherobligation.

5. In any claim under this chapter where an offer of settlement ismade in writing and filed with the division by the employer, an employee isentitled to one hundred percent of the amount offered, provided suchemployee is not represented by counsel at the time the offer is tendered.Where such offer of settlement is not accepted and where additionalproceedings occur with regard to the employee's claim, the employee isentitled to one hundred percent of the amount initially offered. Legalcounsel representing the employee shall receive reasonable fees forservices rendered.

6. As used in this chapter, "amount in dispute" means the dollaramount in excess of the dollar amount offered or paid by the employer. Anoffer of settlement shall not be construed as an admission of liability.

(RSMo 1939 § 3723, A.L. 1959 S.B. 167, A.L. 1965 p. 397, A.L. 1977 S.B. 400, A.L. 1983 S.B. 44 & 45, A.L. 1990 S.B. 751, A.L. 2005 S.B. 1 & 130)

Prior revision: 1929 § 3333

(1964) In action by employee against employers for breach of alleged oral contract for lifetime employment, held that the promise of lifetime employment which was not included in the written settlement agreement approved by the division of workmen's compensation, was void and unenforceable. Sheets v. Hill Bros. Distributors, Inc. (Mo.), 379 S.W.2d 514.

(1964) The liabilities of the second injury fund and of the employer are separate and compromise and settlement by the claimant with either does not release the other. Grant v. Neal (Mo.), 381 S.W.2d 843.