Law passed to ensure unemployment benefit trust fund solvency has been overruled.
Missouri Supreme Court Struck Down Law Reining In Unemployment Benefits
As part of an effort to put
Missouri’s unemployment benefits trust fund on more stable footing, the
Legislature passed a bill in 2015 to align the duration of unemployment
benefits to the state’s unemployment rate. When the unemployment rate is lower
and fewer people are looking for work, the jobless benefit is limited to 13
weeks instead of 20 weeks. However, the Missouri Supreme Court recently struck
down this law.
While Gov. Jay Nixon initially
vetoed the bill on May 5, 2015, the Missouri House overrode his veto a week
later. The Missouri Senate, however, didn’t override the veto until September,
instead of before the regular session ended on May 15, 2015. As a result, the
state Supreme Court ruled the Senate’s override was invalid because the
September veto session is supposed to be reserved only for bills vetoed during
the last week of the regular session or later.
However, the Legislature may try
again to rein in unemployment benefits when it meets for the 2017 legislative
session. Thirty-five states, including Missouri, saw their unemployment
benefits funds go insolvent during the Great Recession, which typically
resulted in imposing higher taxes on businesses to replenish them. Since the
recession, several states have made moves to cut benefits in order to shore up
money for the funds.
