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AIM pleased legislation on definition of misconduct and good cause allowed to take effect

It was a big win for Missouri employers Monday when Governor Nixon allowed Senate Bill 510, sponsored by State Senator Will Kraus (R-Lee’s Summit), to go into effect without his signature.

The legislation refines the definition of “misconduct” and “good cause” when it comes to receiving unemployment benefits.

“This is a victory for Missouri employers,” said Associated Industries of Missouri president Ray McCarty. “This bill will help protect employers from having to pay unemployment to employees who were dismissed for good cause.”

Court rulings over the last several years too often sided with employees who were dismissed for violating company rules and policies. The lax rulings left Missouri’s unemployment system in the red.

The bill passed the Senate early in the legislative session, but AIM and several other groups and legislators waited to see if the definitions included in the bill passed muster with the U.S. Department of Labor. If not, and the legislature passed the bill, Missouri businesses could have lost their unemployment tax credits.

In early April, the Department of Labor signed off on the bill’s language and the legislation moved forward, passing its final hurdle in the House on April 29.

“This bill will go a long way to bringing balance back to the unemployment system in Missouri, and help keep the state from falling behind in unemployment compensation payments into the future,” said McCarty.

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