HB 1456 Modifies law regarding unemployment security

     Handler: Ridgeway

Current Bill Summary

- Prepared by Senate Research -


SS#2/SCS/HCS/HB 1456 – This act modifies provisions relating to employment security.

Under the act, operators working under a certificate issued by the Missouri Department of Transportation or by the U.S. Department of Transportation or any subagencies are not employees for the purposes of unemployment law.

Beginning in the calendar year 2009, the state taxable wage base shall not increase beyond $12,500. The act provides a new formula for determining the state taxable wage base.

Currently, the maximum weekly benefit amount is 3 3/4% of the total wages paid during the quarter where the pay was the highest for 2006 and 2007. This act raises that amount to 4%.

The act requires the directors of the division of employment security and the division of workforce development to study and report recommendations about how to improve work search verification, including how to best utilize GreatHires.Org.

If a claimant has committed misconduct with respect to alcohol or controlled substances, a test conducted by a laboratory certified by the U.S. Department of Health and Human Services or another certifying organization that meets the standards of the U.S. Department of Health and Human Services may be included in the administrative record. Test results are admissible if the employer's policy clearly states that an employee may be subject to random, preemployment, reasonable suspicion, or post-accident testing. Employers may require a preemployment test as a condition of employment.

A Discharge as a result of a claimant's refusal to take a drug test or as a result of a claimant's attempt to invalidate, adulterate or impede test results or an admission that the results wold be positive if given a test shall be deemed misconduct and disqualify the individual from waiting week credit and benefits.

The act requires a claimant who is disqualified from receiving unemployment benefits on a second or subsequent occasion within the base period or within a subsequent base period to earn wages at least six times the claimant's weekly benefit amount for each disqualification.

Absenteeism or tardiness may constitute a rebuttable presumption of misconduct.

Currently, the division of employment security must cross-check unemployment compensation applicants and recipients with the federal Social Security Administration's data at least monthly. This act changes this to a weekly requirement.

Under the act, the total annual surcharge shall be calculated by the division as a percentage of total statewide contributions collected during the previous calendar year.

The maximum maturity time period of a credit instrument offered by the Board of Fund Financing is increased from three years to 10 years after issuance. Unpaid principal amounts of any outstanding credit instruments and financing agreements shall not exceed $450,000,000 combined.

The division shall recover overpayments of benefits through billings, offsets against state and federal income tax refunds, and intercepts of lottery winnings. Shared-work benefits may not be denied in any week containing a holiday for which the holiday earnings are committed to be paid by the employer unless the shared-work benefits are for the same hours in the same day as the holiday earnings.

This act allows a member of the national guard or armed forces reserves deployed after September 11 who was unable to continue their employment to qualify for unemployment compensation. The veteran will be entitled to a maximum weekly benefit of eight percent of the wages paid during the quarter in which the veteran earned the highest amount within the five quarters of deployment. The maximum benefit will be $1,153.64 adjusted to the consumer price index for twenty six weeks.

Employers who take adverse employment action due to the veteran’s absence will be subject to an administrative penalty in the amount of $25,000.

If the veteran is not offered the same wages, benefits, and work schedule, upon return, the veteran shall not be considered to have voluntarily quit his or her employment.

The provisions of this act shall become effective October 1, 2006.

CHRIS HOGERTY


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