A bill working its way through the Missouri Legislature would reduce the number of weeks unemployed workers can claim benefits. The state's largest union labor organization is taking notice.
"I think it's very short-sighted legislation that's going to hurt the average Missourian at a time when they're most vulnerable in their lives," said Missouri AFL-CIO President Jake Hummel.
Sen. Mike Bernskoetter, R-Jefferson City, is carrying legislation in the Missouri Senate to bring the minimum number of weeks the state would pay unemployment benefits from 13 to eight and tie the duration an unemployed worker could draw down benefits to the state's average unemployment rate. The bill, SB 21, received a committee hearing Jan. 25 but hasn't moved from there.
"Businesses and employers have expressed to us that it's becoming impossible to find employees," Bernskoetter testified while presenting his bill. "I think everybody knows that."
He said local businesses have reported that one or two employees are showing up for work or that employees will only work for a day or two before going back to receiving unemployment benefits.
"I know personally I've had troubles trying to find employees," added Bernskoetter, who has owned and operated Art's Pest Control in Jefferson City since 1986. Despite increasing wages from $15 to $18-$20 per hour, he said he can't find people to work.
Bernskoetter said research indicates people wait until the last few weeks of unemployment benefits to begin job searches. If the state makes benefits available for a shorter span of time, he said, unemployed workers will look for jobs faster.
"I don't think the unemployment rate is high or anything, but I just think (the bill) gives people a little extra nudge to go out and try to get a job," he said.
Missouri's unemployment rate is around 2.8 percent, according to the latest estimates from the Missouri Economic Research and Information Center.
At eight weeks, Bernskoetter's bill would give Missouri the shortest period of time in the country workers could receive unemployment benefits.
Unemployment insurance dates back to the mid-1930s and is primarily administered and funded by individual states with some federal oversight. Contributions to the system are paid by employers and, in most states, fund about half a worker's previous wage for 26 weeks.
Until about 2009, every state provided a maximum of 26 weeks of unemployment benefits. State legislatures began to change the system in response to the unemployment spikes caused by the Great Recession, according to the Center on Budget and Policy Priorities, a national nonpartisan research and policy institute.
Ten states now provide unemployment benefits for fewer than 26 weeks, including Missouri. Florida, North Carolina and Kentucky are tied for the most restrictive state as each permits up to 12 weeks of unemployment benefits. Two states, Massachusetts and Montana, offer unemployment benefits beyond 26 weeks.
At least four states -- Kentucky, Iowa, Oklahoma and Wisconsin -- reduced the number of weeks unemployed workers can receive unemployment benefits in 2022. Similar bills were considered in Missouri, Louisiana, Mississippi, New Hampshire and West Virginia but not implemented.
Bernskoetter filed his legislation in 2022 and again this year. Similar legislation, HB 726, is filed in the Missouri House by Rep. Jeff Knight, R-Lebanon.
The state Legislature passed legislation mirroring Bernskoetter's bill in 2015 but it was vetoed by then-Gov. Jay Nixon. The Legislature attempted to override the veto but was struck down by courts for not following the proper procedure.
Bernskoetter said that bungled vote was a large part of why he filed the legislation again this year, but the measure is also "just good policy."
The Missouri AFL-CIO has been opposed to the legislation from the start.
"We just think it's bad policy to take a safety net away from workers that have lost their jobs," Hummel said.
Despite the state permitting up to 20 weeks of unemployment benefits, Hummel said the average worker draws from the program for 13 weeks.
When people are out of work, Hummel said, they're often trying to find jobs with comparable pay to previous salaries or retraining for a different career. They're occupied with securing money for rent, food or prescriptions, he said, adding that eight weeks is not enough time to learn new skill sets.
Hummel said he doesn't see the unemployment bill as an issue exclusive to unions. He pointed to GKN Aerospace, which last year announced plans to close its Chesterfield facility and lay off 1,000 workers.
"Those folks are going to have to do some type of retraining, and I think it's the wrong thing to pull the rug out from under them and say, 'You have to get back to work in eight weeks,'" Hummel said.
Bernskoetter said concerns around his bill boil down to businesses not being able to retain workers for seasonal periods. A business may lay off employees for just the winter months and hire them back when the season is over, he said, expecting them to draw unemployment benefits in the meantime.
He said businesses shouldn't be using the state's unemployment system in such a fashion.
"I know they pay into it but I don't really know that it's designed to hold people over for the winter," Bernskoetter said. "That's not the way I think it should be done.
"Keep them working. That's what I do with my employees, I keep them working," he continued.
The Missouri Chamber of Commerce and Industry testified in support of Bernskoetter's bill. Director of Legislative Affairs Heidi Sutherland said current labor shortages "create an urgent need to pass this legislation."
Hummel disagreed with the chamber's assessment.
"I don't think people are getting rich off unemployment, and I don't think there are very many people playing a game here," Hummel said. "It's not going to get people back to work. I think what's going to get people back to work is what the governor is proposing in his budget."
Hummel referenced Gov. Mike Parson's call to invest in child care. In his State of the State address, Parson said a lack of access to child care is the primary factor in workforce losses.
SB 21: Modifies the duration of unemployment benefits based on the unemployment rate
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NoneSponsor: Sen. Mike Bernskoetter