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The Missouri Department of Labor & Industrial Relations announced that due to the reopening of state businesses, effective July 5, 2020, the Department will once again begin charging employers with unemployment insurance (UI) benefits. As we reported, the Department has been waiving UI benefit charges that are the result of COVID-19. (News release, June 15, 2020; EY Payroll Newsflash Vol. 21, #190, 4-25-2020.)

Also beginning the week of July 5, 2020, claimants will be required to resume fulfilling work-search requirements to continue to be eligible for UI benefits. The Department will also stop waiving the one-week waiting period for UI claims filed on or after July 5, 2020.

Workshare program changes upcoming

Separate guidance related to the state's shared work program and any continued waiver of employer UI charges will be provided by the Department.

Employers encouraged to report employees who refuse to return to work

As we reported, the Department encourages employers to report employees who refuse to return to work when recalled or who are receiving pay through the Paycheck Protection Program (PPP). To report, go to the Department's website and click on the "report employee work refusals" or "report PPP wages paid to employees" tabs. (EY Payroll Newsflash Vol. 21, #243, 5-28-2020.)

Work-search requirements resume July 5, 2020

According to the Department, beginning with the week of July 5, 2020, individuals wishing to continue to receive UI benefits (including the $600 federal supplement available through July 25, 2020) will be required to perform work-search activities that had been lifted for those who had filed COVID-19 UI claims.

Work-search activities are required for regular UI benefits, Pandemic Unemployment Assistance (PUA), Extended Benefits (EB), and Pandemic Emergency Unemployment Compensation (PEUC). Individuals with an employer-submitted recall date, in approved training, or in the shared-work program will be exempt from the work-search requirement. All other claimants will be required to perform and report three work-search activities per week to remain eligible for UI benefits. Union members with a hiring or referral hall may contact their hall three times per week or attend training to satisfy the required number of work-search activities.

Qualified work-search activities include, but are not limited to, filing an application (online or in-person) with an employer or through job posting sites or attending a job fair, job interview, reemployment service or skills workshop. Part-time employment performed during a week is credited on a per-day basis.

Also, a waiting-week requirement will again be imposed for individuals filing for UI benefits on or after July 5, 2020. The waiting week is the first week of an UI benefit claim for which the individual is eligible for UI benefits, but for which the individual will not be paid benefits. Individuals who are approved for UI benefits may receive compensation for the waiting week as the last payment on the regular UI claim.

Due to state's UI benefit rate, the state extended benefit program is now in effect

As is the case with most other states, the Department announced that due to the state's UI benefit rate, it is offering the extended benefit (EB) program to individuals who have exhausted their previous state and federal UI benefits.

Missouri's 5.39% UI benefit rate triggered the state's 13-week EB period beginning the week of May 31, 2020. According to the Department, with the current UI benefit rate nationwide, 44 states (i.e., Texas) have triggered the EB program. According to a June 14, 2020 U.S. Department of Labor (DOL) report, 48 states have triggered the 13 weeks of EB.

Under federal law, the EB program offers up to an additional 13 weeks of benefits to individuals who have exhausted both their regular unemployment benefits and 13 weeks of the Pandemic Emergency Unemployment Compensation (PEUC) assistance.

According to the DOL, under the Emergency Unemployment Insurance Stabilization and Access Act of 2020 (EUISAA) (Pub. L.116-127), and the Coronavirus Aid, Relief, and Economic Security Act of 2020 (CARES Act) (Pub. L. 116- 136), the federal government will repay states for up to 100% of EB benefits paid between March 18, 2020 and December 31, 2020. The DOL gives states the option of not charging employer accounts with the federal-reimbursed portion of EB benefits; however, the DOL guidance provides that states may elect to charge the employer with any or all of EB benefits. (DOL Unemployment insurance program letter (UIPL) 24-20, 5-14-2020.)

Upon exhaustion of regular UI entitlement and PEUC entitlement, the Department will issue written notification to all individuals who are eligible to apply for the state EB program. The weekly UI benefit amount under the EB program is the same as the individual received for regular UI benefits.

Missouri has not triggered the state EB program since 2009 and that program ended April 7, 2012.

For more information regarding the Department's response to COVID-19, go here.

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EY Payroll News Flash