Unemployment reform measure headed to governor

According to the bill, SB 510 redefines “misconduct” for which an employee may be disqualified from unemployment benefits. Currently, misconduct includes “a wanton or willful” disregard of the employer’s interest and a disregard behavior standards the employer has the right to expect. The bill changes that standard to “a knowing” disregard of that interest and “a knowing” violation of the standards the employer expects.

Setting a higher standard to receive unemployment benefits is a good idea, according to  Missouri Chamber of Commerce and Industry officials.

“Current state law is allowing a few bad apples to take advantage of the unemployment compensation system,” said Daniel Mehan, Missouri Chamber president and CEO, in a news release. “Allowing these rightfully terminated employees into our unemployment system has contributed to the huge federal debt that Missouri businesses must now repay.”

The vote landed largely along party lines as many Democrats felt the changes could harm Missouri workers by shifting the burden to them from employers in cases where allegations of misconduct arise. Last year, Nixon vetoed a similar proposal citing concerns about creating a conflict with federal law. 

This is a “very bad bill that leaves employees completely and utterly at the mercy of their employers,” said Rep. Jeff Roorda, D-Barnhart, in an April 29 Associated Press report.

The Missouri Chamber pointed to debt the state’s unemployment system accrued during the recession when it borrowed hundreds of millions of dollars from the federal government to meet rising demand for benefits. The Show-Me State currently owes $270 million, according to the Missouri Chamber, and in addition to penalties, interest on the debt grows at a rate of roughly $12 million a year.

“As we focus on growing our economy, this debt is a significant hurdle. We’d like to thank the legislature for addressing this problem,” Mehan said.

Nixon spokesman Scott Holste did not respond to a request by deadline to a request for information on the governor’s position on SB 510.