Senate drops benefits ban for workers accused of drug use

JEFFERSON CITY, Mo. -- The Senate backed away from a legal change long sought by business groups that would deny unemployment benefits to workers who are fired for off-the-clock use of illegal drugs.

The bill's handler, state Sen. John Louden, R-Ballwin, agreed to drop the provision to smooth the way for the overall bill, which would allow the state to sell up to $100 million in bonds to help Missouri's unemployment system solvent. The Senate eventually gave the measure first-round approval.

The move to strip the strict anti-drug language disappointed Nikki Stallion, the vice president of Mac Con Co., a construction contractor in Gordonville. Earlier in the legislative session, Stallion wrote lawmakers urging them to tighten the law, which currently allows unemployment benefits to be denied only for work-related misconduct.

"If a company has a policy stating that illegal drug use is not acceptable, to me a violation of that policy is clear misconduct," Stallion said.

However, courts have determined a positive test for drugs is insufficient to deny benefits. Proof of on-the-job impairment is required.

Sending wrong message

Groups such as the Associated Industries of Missouri and the state Chamber of Commerce said the current legal standard sends the wrong message. Stallion agrees.

"Not only does it tie the hands of employers, it also indirectly tells employees it is OK to use," Stallion said.

Senate Minority Floor Leader Ken Jacob, D-Columbia, initially sought changes to the relevant section that would preserve due process protections for fired workers accused of drug use before Louden agreed to drop the matter.

Jacob said the provision, which was opposed by organized labor groups, didn't address the primary issue of keeping the unemployment system from going broke.

According to the Missouri Division of Employment Security, cases in which benefits were awarded to workers discharged for alleged drug use represented only 0.19 percent of the 292,554 disputed cases it handled in 2001.

"We were really looking at best about a $300,000 impact on the fund, which is merely a drop in the bucket," Jacob said.

Missouri has asked to borrow $100 million from the federal government to shore up the state unemployment system. Federal law forces states to borrow to avoid disruption in unemployment benefits.

Selling bonds

The bill would allow the state to borrow the money from the private sector by selling bonds. Louden said by going that route the state would pay a much lower interest rate than the 6 percent charged by the federal government.

No matter how the state borrows the money, Missouri employers end up footing the bill through higher unemployment taxes. The bills would require the bonds to be repaid within 10 years.

The measure requires a second vote to send it to the House of Representatives, where tighter language on benefits eligibility could be restored.

The bill is SB 2.

mpowers@semissourian.com

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