Blunt signs compensation reforms bill

House Bill 1456, sponsored by Rep. Brad Roark, R-Springfield, and Sen. Luann Ridgeway, R-Smithville, prevents the state from increasing employer taxes to pay a $300 million federal debt in the unemployment compensation system. Instead, the system will pay its debt by improving its management and saving money through the bill’s other reforms.

The compensation system was enacted in 1951 and is funded by a tax on employers; the program went bankrupt in 2003.

Under the bill:

• Drug-free workplace policies can be enforced, and workers who use illegal drugs will be denied unemployment benefits.

• Workers who are fired for misconduct will be penalized with every occurrence. Prior law excused multiple acts of misconduct.

• “Searching for new work” has been redefined. The state will be required to report on its efforts to help people find jobs.

• Chronic absenteeism now will be considered by the state in determining whether benefits will be paid.

• Expanded benefits will be offered to workers in need, particularly those with low income.

“Employers will now be assured their unemployment taxes are being used appropriately,” said Jim Kistler, executive vice president of Associated Industries of Missouri, in a news release. “Drug users and people who simply don’t want to work will no longer have this gravy train to ride.”

This story originally appeared in SBJ’s June 15 free e-news Daily Update. Click here to register.