ST. LOUIS (KMOX) - In 2023, the city of St. Louis lost a lawsuit for not properly refunding remote workers who lived outside the city during COVID for paying the city's earnings tax.
The city had appealed the ruling they owe a refund of the earnings tax to these employees.
On Tuesday, a Missouri appeals court reaffirmed the ruling, which said the city improperly denied these employees a refund for days worked remotely from outside the city as it had in the past.
"The opinion talked about how the language is clear and unambiguous which has been our position all along" says Mark Milton, the attorney for the remote workers. "That's how the collector has always interpreted it prior to COVID and there's been no change in the law."
Milton and the workers also appealed the ruling that the lawsuit cannot become a class action suit. That ruling was also denied by the courts.
"We're somewhat disappointed that the appellate court did not revive our efforts to get class action to get relief for everyone who's been harmed" said Milton.
The lawsuit becoming a class action suit could have cost the city tens if not hundreds of millions of dollars.
The city previously expressed concerns about the loss of revenue from remote worker when St. Louis Mayor Tishaura Jones initiated a hiring freeze back in March on non-essential personnel. That hiring freeze was lifted on May 20.
Missouri House passed a bill exempting St. Louis remote workers from paying the one percent earnings tax, but the 2024 legislative session in Jefferson City ended without a bill being passed.
Mayor Jones' Office released a statement on the ruling, saying they are reviewing the Missouri Court of Appeals' decision Tuesday and that despite the ruling, they do not believe the decision will require any changes to the 2025 budget. Jones previously stated that the city's budget for the 2025 fiscal year "was going to be very conservative."
"In creating the 2025 budget proposal, the mayor took a financially prudent approach to take into account the potential impact of (Tuesday's) decision," The Mayor's office wrote in a statement to KMOX. "We do not believe this decision will require changes to the budget or will impact the current level of City services."