FIRST REGULAR SESSION

HOUSE BILL NO. 1381 103RD GENERAL ASSEMBLY

INTRODUCED BY REPRESENTATIVE PRICE.

2303H.01I JOSEPH ENGLER, Chief Clerk

AN ACT To repeal sections 288.040 and 288.500, RSMo, and to enact in lieu thereof two new sections relating to unemployment compensation.

Be it enacted by the General Assembly of the state of Missouri, as follows:

Section A. Sections 288.040 and 288.500, RSMo, are repealed and two new sections 2 enacted in lieu thereof, to be known as sections 288.040 and 288.500, to read as follows: 288.040. 1. A claimant who is unemployed and has been determined to be an insured 2 worker shall be eligible for benefits for any week only if the deputy finds that: 3 (1) The claimant has registered for work at and thereafter has continued to report at an 4 employment office in accordance with such regulations as the division may prescribe; 5 (2) The claimant is able to work and is available for work. No person shall be 6 deemed available for work unless such person has been and is actively and earnestly seeking 7 work. Upon the filing of an initial or renewed claim, and prior to the filing of each weekly 8 claim thereafter, the deputy shall notify each claimant of the number of work search contacts 9 required to constitute an active search for work. Unless the deputy directs otherwise, a 10 claimant shall make a minimum of three work search contacts during any week for which he 11 or she claims benefits. No person shall be considered not available for work, pursuant to this 12 subdivision, solely because he or she is a substitute teacher or is on jury duty. A claimant 13 shall not be determined to be ineligible pursuant to this subdivision because of not actively 14 and earnestly seeking work if: 15 (a) The claimant is participating in training approved pursuant to Section 236 of the 16 Trade Act of 1974, as amended, (19 U.S.C.A. Sec. 2296, as amended);

EXPLANATION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is intended to be omitted from the law. Matter in bold-face type in the above bill is proposed language. HB 1381 2

17 (b) The claimant is temporarily unemployed through no fault of his or her own and 18 has a definite recall date within eight weeks of his or her first day of unemployment; however, 19 upon application of the employer responsible for the claimant's unemployment, such eight- 20 week period may be extended not to exceed a total of sixteen weeks at the discretion of the 21 director; 22 (3) The claimant has reported to an office of the division as directed by the deputy, 23 but at least once every four weeks, except that a claimant shall be exempted from the 24 reporting requirement of this subdivision if: 25 (a) The claimant is claiming benefits in accordance with division regulations dealing 26 with partial or temporary total unemployment; or 27 (b) The claimant is temporarily unemployed through no fault of his or her own and 28 has a definite recall date within eight weeks of his or her first day of unemployment; or 29 (c) The director of the division of employment security has determined that the 30 claimant belongs to a group or class of workers whose opportunities for reemployment will 31 not be enhanced by reporting, or is prevented from reporting due to emergency conditions that 32 limit access by the general public to an office that serves the area where the claimant resides, 33 but only during the time such circumstances exist. 34 35 Ineligibility pursuant to this subdivision shall begin on the first day of the week which the 36 claimant was scheduled to claim and shall end on the last day of the week preceding the week 37 during which the claimant does report to the division's office; 38 (4) Prior to the first week of a period of total or partial unemployment for which the 39 claimant claims benefits he or she has been totally or partially unemployed for a waiting 40 period of one week. No more than one waiting week will be required in any benefit year. 41 During calendar year 2008 and each calendar year thereafter, the one-week waiting period 42 shall become compensable once his or her remaining balance on the claim is equal to or less 43 than the compensable amount for the waiting period. No week shall be counted as a week of 44 total or partial unemployment for the purposes of this subsection unless it occurs within the 45 benefit year which includes the week with respect to which the claimant claims benefits. 46 Effective for calendar year 2026 and each year thereafter, the waiting period of one 47 week shall not apply to any new claims filed on or after January 1, 2026, and such one- 48 week period shall be included in the determination of unemployment benefits upon the 49 filing of a claim, provided all other eligibility requirements are met; 50 (5) The claimant has made a claim for benefits within fourteen days from the last day 51 of the week being claimed. The fourteen-day period may, for good cause, be extended to 52 twenty-eight days; HB 1381 3

53 (6) The claimant has reported to an employment office to participate in a 54 reemployment assessment and reemployment services as directed by the deputy or designated 55 staff of an employment office, unless the deputy determines that good cause exists for the 56 claimant's failure to participate in such reemployment assessment and reemployment services. 57 For purposes of this section, "reemployment services" may include, but not be limited to, the 58 following: 59 (a) Providing an orientation to employment office services; 60 (b) Providing job search assistance; and 61 (c) Providing labor market statistics or analysis; 62 63 Ineligibility under this subdivision shall begin on the first day of the week which the claimant 64 was scheduled to report for the reemployment assessment or reemployment services and shall 65 end on the last day of the week preceding the week during which the claimant does report in 66 person to the employment office for such reemployment assessment or reemployment 67 services; 68 (7) The claimant is participating in reemployment services, such as job search 69 assistance services, as directed by the deputy if the claimant has been determined to be likely 70 to exhaust regular benefits and to need reemployment services pursuant to a profiling system 71 established by the division, unless the deputy determines that: 72 (a) The individual has completed such reemployment services; or 73 (b) There is justifiable cause for the claimant's failure to participate in such 74 reemployment services. 75 2. A claimant shall be ineligible for waiting week credit or benefits for any week for 76 which the deputy finds he or she is or has been suspended by his or her most recent employer 77 for misconduct connected with his or her work. Suspensions of four weeks or more shall be 78 treated as discharges. 79 3. (1) Benefits based on "service in employment", described in subsections 7 and 8 of 80 section 288.034, shall be payable in the same amount, on the same terms and subject to the 81 same conditions as compensation payable on the basis of other service subject to this law; 82 except that: 83 (a) With respect to service performed in an instructional, research, or principal 84 administrative capacity for an educational institution, benefits shall not be paid based on such 85 services for any week of unemployment commencing during the period between two 86 successive academic years or terms, or during a similar period between two regular but not 87 successive terms, or during a period of paid sabbatical leave provided for in the individual's 88 contract, to any individual if such individual performs such services in the first of such 89 academic years (or terms) and if there is a contract or a reasonable assurance that such HB 1381 4

90 individual will perform services in any such capacity for any educational institution in the 91 second of such academic years or terms; 92 (b) With respect to services performed in any capacity (other than instructional, 93 research, or principal administrative capacity) for an educational institution, benefits shall not 94 be paid on the basis of such services to any individual for any week which commences during 95 a period between two successive academic years or terms if such individual performs such 96 services in the first of such academic years or terms and there is a contract or a reasonable 97 assurance that such individual will perform such services in the second of such academic 98 years or terms; 99 (c) With respect to services described in paragraphs (a) and (b) of this subdivision, 100 benefits shall not be paid on the basis of such services to any individual for any week which 101 commences during an established and customary vacation period or holiday recess if such 102 individual performed such services in the period immediately before such vacation period or 103 holiday recess, and there is reasonable assurance that such individual will perform such 104 services immediately following such vacation period or holiday recess; 105 (d) With respect to services described in paragraphs (a) and (b) of this subdivision, 106 benefits payable on the basis of services in any such capacity shall be denied as specified in 107 paragraphs (a), (b), and (c) of this subdivision to any individual who performed such services 108 at an educational institution while in the employ of an educational service agency, and for this 109 purpose the term "educational service agency" means a governmental agency or 110 governmental entity which is established and operated exclusively for the purpose of 111 providing such services to one or more educational institutions. 112 (2) If compensation is denied for any week pursuant to paragraph (b) or (d) of 113 subdivision (1) of this subsection to any individual performing services at an educational 114 institution in any capacity (other than instructional, research or principal administrative 115 capacity), and such individual was not offered an opportunity to perform such services for the 116 second of such academic years or terms, such individual shall be entitled to a retroactive 117 payment of the compensation for each week for which the individual filed a timely claim for 118 compensation and for which compensation was denied solely by reason of paragraph (b) or 119 (d) of subdivision (1) of this subsection. 120 4. (1) A claimant shall be ineligible for waiting week credit, benefits or shared work 121 benefits for any week for which he or she is receiving or has received remuneration exceeding 122 his or her weekly benefit amount or shared work benefit amount in the form of: 123 (a) Compensation for temporary partial disability pursuant to the workers' 124 compensation law of any state or pursuant to a similar law of the United States; 125 (b) A governmental or other pension, retirement or retired pay, annuity, or other 126 similar periodic payment which is based on the previous work of such claimant to the extent HB 1381 5

127 that such payment is provided from funds provided by a base period or chargeable employer 128 pursuant to a plan maintained or contributed to by such employer; but, except for such 129 payments made pursuant to the Social Security Act or the Railroad Retirement Act of 1974 130 (or the corresponding provisions of prior law), the provisions of this paragraph shall not apply 131 if the services performed for such employer by the claimant after the beginning of the base 132 period (or remuneration for such services) do not affect eligibility for or increase the amount 133 of such pension, retirement or retired pay, annuity or similar payment. 134 (2) If the remuneration referred to in this subsection is less than the benefits which 135 would otherwise be due, the claimant shall be entitled to receive for such week, if otherwise 136 eligible, benefits reduced by the amount of such remuneration, and, if such benefit is not a 137 multiple of one dollar, such amount shall be lowered to the next multiple of one dollar. 138 (3) Notwithstanding the provisions of subdivisions (1) and (2) of this subsection, if a 139 claimant has contributed in any way to the Social Security Act or the Railroad Retirement Act 140 of 1974, or the corresponding provisions of prior law, no part of the payments received 141 pursuant to such federal law shall be deductible from the amount of benefits received 142 pursuant to this chapter. 143 5. A claimant shall be ineligible for waiting week credit or benefits for any week for 144 which or a part of which he or she has received or is seeking unemployment benefits pursuant 145 to an unemployment insurance law of another state or the United States; provided, that if it be 146 finally determined that the claimant is not entitled to such unemployment benefits, such 147 ineligibility shall not apply. 148 6. (1) A claimant shall be ineligible for waiting week credit or benefits for any week 149 for which the deputy finds that such claimant's total or partial unemployment is due to a 150 stoppage of work which exists because of a labor dispute in the factory, establishment or other 151 premises in which such claimant is or was last employed. In the event the claimant secures 152 other employment from which he or she is separated during the existence of the labor dispute, 153 the claimant must have obtained bona fide employment as a permanent employee for at least 154 the major part of each of two weeks in such subsequent employment to terminate his or her 155 ineligibility. If, in any case, separate branches of work which are commonly conducted as 156 separate businesses at separate premises are conducted in separate departments of the same 157 premises, each such department shall for the purposes of this subsection be deemed to be a 158 separate factory, establishment or other premises. This subsection shall not apply if it is 159 shown to the satisfaction of the deputy that: 160 (a) The claimant is not participating in or financing or directly interested in the labor 161 dispute which caused the stoppage of work; and 162 (b) The claimant does not belong to a grade or class of workers of which, 163 immediately preceding the commencement of the stoppage, there were members employed at HB 1381 6

164 the premises at which the stoppage occurs, any of whom are participating in or financing or 165 directly interested in the dispute. 166 (2) "Stoppage of work" as used in this subsection means a substantial diminution of 167 the activities, production or services at the establishment, plant, factory or premises of the 168 employing unit. This definition shall not apply to a strike where the employees in the 169 bargaining unit who initiated the strike are participating in the strike. Such employees shall 170 not be eligible for waiting week credit or benefits during the period when the strike is in 171 effect, regardless of diminution, unless the employer has been found guilty of an unfair labor 172 practice by the National Labor Relations Board or a federal court of law for an act or actions 173 preceding or during the strike. 174 7. On or after January 1, 1978, benefits shall not be paid to any individual on the basis 175 of any services, substantially all of which consist of participating in sports or athletic events 176 or training or preparing to so participate, for any week which commences during the period 177 between two successive sport seasons (or similar periods) if such individual performed such 178 services in the first of such seasons (or similar periods) and there is a reasonable assurance 179 that such individual will perform such services in the later of such seasons (or similar 180 periods). 181 8. Benefits shall not be payable on the basis of services performed by an alien, unless 182 such alien is an individual who was lawfully admitted for permanent residence at the time 183 such services were performed, was lawfully present for purposes of performing such services, 184 or was permanently residing in the United States under color of law at the time such services 185 were performed (including an alien who was lawfully present in the United States as a result 186 of the application of the provisions of Section 212(d)(5) of the Immigration and Nationality 187 Act, 8 U.S.C. Section 1182, as amended). 188 (1) Any data or information required of individuals applying for benefits to determine 189 whether benefits are not payable to them because of their alien status shall be uniformly 190 required from all applicants for benefits. 191 (2) In the case of an individual whose application for benefits would otherwise be 192 approved, no determination that benefits to such individual are not payable because of such 193 individual's alien status shall be made except upon a preponderance of the evidence. 194 9. A claimant shall be ineligible for waiting week credit or benefits for any week such 195 claimant has an outstanding penalty which was assessed based upon an overpayment of 196 benefits, as provided for in subsection 9 of section 288.380. 197 10. The directors of the division of employment security and the division of 198 workforce development shall submit to the governor, the speaker of the house of 199 representatives, and the president pro tem of the senate no later than October 15, 2006, a 200 report outlining their recommendations for how to improve work search verification and HB 1381 7

201 claimant reemployment activities. The recommendations shall include, but not limited to 202 how to best utilize "greathires.org", and how to reduce the average duration of unemployment 203 insurance claims. Each calendar year thereafter, the directors shall submit a report containing 204 their recommendations on these issues by December thirty-first of each year. 205 11. For purposes of this section, a claimant may satisfy reporting requirements 206 provided under this section by reporting by internet communication or any other means 207 deemed acceptable by the division of employment security. 288.500. 1. There is created under this section a voluntary "Shared Work 2 Unemployment Compensation Program". In connection therewith, the division may adopt 3 rules and establish procedures, not inconsistent with this section, which are necessary to 4 administer this program. 5 2. As used in this section, the following terms mean: 6 (1) "Affected unit", a specified department, shift, or other unit of three or more 7 employees which is designated by an e