An act to amend 1936 (Ex Sess) PA 1, entitled “An act to protect the welfare of the people of this state through the establishment of an unemployment compensation fund, and to provide for the disbursement thereof; to create certain other funds; to create the Michigan employment security commission, and to prescribe its powers and duties; to provide for the protection of the people of this state from the hazards of unemployment; to levy and provide for contributions from employers; to levy and provide for obligation assessments; to provide for the collection of those contributions and assessments; to enter into reciprocal agreements and to cooperate with agencies of the United States and of other states charged with the administration of any unemployment insurance law; to furnish certain information to certain governmental agencies for use in administering public benefit and child support programs and investigating and prosecuting fraud; to provide for the payment of benefits; to provide for appeals from redeterminations, decisions and notices of assessments; and for referees and a board of review to hear and decide the issues arising from redeterminations, decisions and notices of assessment; to provide for the cooperation of this state and compliance with the provisions of the social security act and the Wagner-Peyser act passed by the Congress of the United States of America; to provide for the establishment and maintenance of free public employment offices; to provide for the transfer of funds; to make appropriations for carrying out the provisions of this act; to prescribe remedies and penalties for the violation of this act; and to repeal all acts and parts of acts inconsistent with this act,” by amending section 27 (MCL 421.27), as amended by 2020 PA 258.
SB 40 proposes significant amendments to the Michigan Employment Security Act, particularly revising section 27 to enhance unemployment benefits. The bill outlines a new method for calculating weekly benefit rates at 4.1% of an individual's highest quarterly wages, with an additional $6.00 for each dependent up to five, and includes provisions for future adjustments. It defines dependents broadly, introduces penalties for fraudulent dependent claims, and maintains the number of dependents constant throughout the benefit year. The bill also specifies conditions under which benefits are payable, adjusts the duration of benefits, and details the treatment of unemployment benefits in relation to retirement benefits. It addresses eligibility for vocational training benefits post-exhaustion of unemployment benefits, clarifies conditions for employment in educational institutions, and outlines the treatment of unemployment claims for educational service agency employees. Furthermore, it specifies conditions under which benefits are not payable, introduces provisions for deducting child support obligations from unemployment compensation, and includes specific provisions for school bus drivers employed by private contributing employers and seasonal workers. The bill also details the process for employers to be designated as seasonal, including the requirement for conspicuous notice posting and provisions for retroactive benefits under certain conditions, with additional rules for terminating or contesting seasonal employer status. This comprehensive amendment aims to ensure equitable benefit distribution, prevent undue charges to employers, and address the unique circumstances of seasonal and educational institution employment, while ensuring compliance with child support enforcement. The additional context provided does not necessitate changes to the original summary, as it remains comprehensive and concise.
Co-sponsored by Sens.
Referred to the Committee on Labor
Reported with substitute S-3
Referred to the Committee of the Whole
Reported with substitute S-3
Substitute S-3 concurred in by voice vote
Passed in the Senate 21 to 15 (details)
Passed in the House 58 to 51 (details)
Motion to give immediate effect
by
The motion prevailed by voice vote
