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Michigan Compiled Laws Complete Through PA 170 of 2018
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Act 1 of 1936 (Ex. Sess.)
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MICHIGAN EMPLOYMENT SECURITY ACT

Act 1 of 1936 (Ex. Sess.)

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.


History: 1936, Ex. Sess., Act 1, Imd. Eff. Dec. 24, 1936 ;-- Am. 1937, Act 347, Imd. Eff. Aug. 5, 1937 ;-- Am. 1939, Act 324, Imd. Eff. June 22, 1939 ;-- Am. 1941, Act 364, Imd. Eff. July 1, 1941 ;-- Am. 1954, Act 197, Imd. Eff. May 7, 1954 ;-- Am. 1977, Act 52, Imd. Eff. July 5, 1977 ;-- Am. 1985, Act 197, Imd. Eff. Dec. 26, 1985 ;-- Am. 1989, Act 232, Imd. Eff. Dec. 21, 1989 ;-- Am. 1991, Act 10, Eff. Apr. 1, 1992 ;-- Am. 2011, Act 268, Imd. Eff. Dec. 19, 2011
Compiler's Notes: For transfer of powers, duties, and functions of the Michigan Employment Security Commission to the Director of Employment Security; for vesting power to appoint the Director of Employment Security and the chairperson of the Michigan Employment Security Commission to the Governor; and, for abolition of the Michigan Employment Security Advisory Council and transfer of its powers and duties to the Michigan Employment Security Commission, see E.R.O. No. 1991-21 compiled at MCL 421.91 of the Michigan Compiled Laws.Amendatory Act 162 of 1994 was cited and shall be known as the “Delange, Geake, Cherry, Murphy wage record conversion act of 1994.”


© 2017 Legislative Council, State of Michigan

The People of the State of Michigan enact:

DocumentTypeDescription
Section 421.1SectionMichigan employment security act; short title.
Section 421.2SectionDeclaration of public policy; findings.
Section 421.3SectionBureau of worker's and unemployment compensation; policies; definitions.
Section 421.3aSectionMichigan employment security advisory council; creation; appointment, qualifications, and terms of members; vacancies; compensation; expenses; recommendations; assistance and studies.
Section 421.3bSectionRepealed. 2002, Act 192, Imd. Eff. Apr. 26, 2002.
Section 421.4SectionRules and regulations; distribution; public hearing; notice; publication; copies furnished; effective date.
Section 421.4aSectionParking facility; approval of state administrative board.
Section 421.5SectionEmployment security commission; director; appointment, term, and duties; annual salary; employees and assistants; delegation of authority; compensation and expenses; bond; appointment and qualifications of persons to assist employers and represent claimants.
Section 421.5aSectionAdvocacy assistance program.
Section 421.5a.amendedSectionAdvocacy assistance services; program.
Section 421.5bSectionBureau of worker's and unemployment compensation; creation within department of consumer and industry services; director; transfer of powers and duties by executive order.
Section 421.6SectionConversion to wage record system; assistance of ad hoc committees; administrative costs.
Section 421.6aSectionUnemployment insurance agency; destruction or disposal of documents; admissibility of reproduction as evidence.
Section 421.6bSectionAppropriation for continuing work on unemployment insurance computer system improvement and capacity extension project; staff training; appointment, membership, and duties of computer project oversight committee; reversion of unexpended funds; work project.
Section 421.6cSectionEmergency backup plan for computer system.
Section 421.6dSectionStabilization fund.
Section 421.6eSectionEmployee training program; operation; funding; purpose.
Section 421.6fSectionAppropriation to fund improvements; expenditure; work project.
Section 421.6gSectionSecuring automated systems for fraud control and collections division; fraud control and investigation; funding; work project.
Section 421.7SectionEmployment security commission; consolidation of divisions.
Section 421.8SectionLegislative purpose; annual review of maximum weekly benefit rates; comparison of consumers' price index; “base month” defined; determining percentage of increase or decrease; report.
Section 421.9SectionEmployment security commission; subpoenas, issuance; enforcement; immunity.
Section 421.10SectionAdministration fund; contingent fund.
Section 421.10aSectionObligation trust fund; creation; receipt and deposit of money or other assets; investment; money remaining in fund; administrator; expenditures; purpose.
Section 421.11SectionEmployment security commission; cooperation with federal agency; reports; compliance with federal regulations; "social security act" defined; disclosure of information; reciprocal agreements.
Section 421.11.amendedSectionUnemployment agency; cooperation with federal agency; reports; compliance with federal regulations; "social security act" defined; disclosure of information; reciprocal agreements.
Section 421.11aSectionPrivilege; waiver.
Section 421.12SectionAcceptance of Wagner-Peyser act.
Section 421.12aSectionEmployment security; community work or training program; employee benefits.
Section 421.13SectionContributions of employer; rate; obligation assessment payment; computation and payment; reports; quarterly wage report; apportioned payments; applicability of subsection (3) to contributions beginning 2013 tax year.
Section 421.13aSectionContributions of nonprofit organizations; reimbursement payments in lieu of contributions; “nonprofit organization” defined; notice of election to become reimbursing employer; surety bond, irrevocable letter of credit, or other security; applicability of subsection (4).
Section 421.13bSectionLiability of nonprofit organization for reimbursement payments in lieu of contributions; termination of status as reimbursing employer; notice of termination; election to become reimbursing employer; notice of election; termination of election; extension of time; determination of status as employer.
Section 421.13cSectionPayments by nonprofit organization to commission; computation; statement of charges; past due reimbursement payments.
Section 421.13dSectionDelinquency of nonprofit organization in making reimbursement payments; termination of election; surety bond, irrevocable letter of credit, or other security.
Section 421.13eSectionGroup account for sharing cost of benefits; joint application; approval; notice; duration; termination; adding employer to or removing employer from group account; liability for benefit charges; effective date and application of amendatory provision.
Section 421.13fSectionReimbursement by nonprofit organization of benefits paid; charging benefits paid to rating account of nonprofit organization.
Section 421.13gSectionReimbursement payments by state in lieu of contributions; amount, time, and manner of payments; separate accounts; funds to which reimbursement payments charged; liability for reimbursement payments; election to be reimbursing employer; reimbursement of benefits; charging benefits to experience account; past due reimbursement payments.
Section 421.13hSectionProvisions applicable to reimbursement payments in lieu of contributions and reimbursing employers.
Section 421.13iSectionGovernmental entity as reimbursing employer or contributing employer; election; notice; termination of election; liability for reimbursement payments; notice terminating status; extension of period for filing notice of election; determination of status as employer, effective date of election, and termination of prior election.
Section 421.13jSectionRepealed. 1977, Act 277, Eff. Jan. 1, 1978.
Section 421.13kSectionPayment by governmental entity of regular benefits plus extended benefits and training benefits; ascertainment of amount; statement of charges; reimbursement of fund; past due reimbursement payments; liability for and payment of contributions; delinquency; termination of election; reimbursement of benefits; charging benefits to experience account.
Section 421.13lSectionIndian tribe or tribal unit as employer; requirements.
Section 421.13mSectionProfessional employer organization; determination of status as liable employer; reporting of wages and payment of unemployment contributions; requirements; act or omission occurring before January 1, 2011; "professional employer organization" defined.
Section 421.14SectionEmploying unit as employer and services as employment; determinations; notice; review and redetermination; collection of contributions; retroactive determination; introduction of determination, redetermination, or decision in proceeding involving claim for benefits.
Section 421.15SectionDelinquent contributions.
Section 421.15aSectionApportioned quarterly payments; interest on contribution obligation not required; failure to make payment.
Section 421.15bSectionRepealed. 1951, Act 251, Imd. Eff. June 17, 1951.
Section 421.16SectionAdjustment or refund of contributions or interest.
Section 421.17SectionNonchargeable benefits account; experience account; pooling of contributions; credits.
Section 421.18SectionDefinitions.
Section 421.19SectionContribution rate of contributing employer; determination; reserve fund balance of reorganized employer; distressed employer; irrevocability of excess payments to experience account.
Section 421.19aSectionSolvency tax; determination; payment; deferral; appropriation; repayment; payment of amounts obtained into contingent fund; crediting amounts to employers' experience accounts; past due payments; interest and penalties; adjustments and refunds; appeals; qualification for federal interest relief provisions and federal unemployment tax credits; forgiveness or postponement of interest.
Section 421.20SectionCharging benefits against employer's account; benefits improperly paid; basis; failure of employer to provide information; determination; appeal; separate determination of amount and duration of benefits; charge to base period employer; "separating employer" defined; limitation on charges for regular benefits; training benefits and extended benefits; notice of charges; listing; spouse as full-time member of United States Armed Forces; definitions.
Section 421.20aSectionBenefits paid under protest or appeal; charge to suspense account; transfer to rating account or solvency account.
Section 421.21SectionCopies or listings of benefit checks charged against employer's account; copies as final determination; statement of total benefits charged against rating account; notice to employer of contribution rate; finality of statement or determination; extension; review and redetermination; appeal; hearing; adjustment of contribution.
Section 421.21aSectionAllocation of benefit charges and contributions attributable to service performed under CETA-PSE.
Section 421.21bSectionSeamen on American vessel on Great Lakes; benefits; seamen, definition.
Section 421.22SectionTransfer of business.
Section 421.22aSectionTransfer of operations from another state to this state; conditions to being deemed qualified employer; withdrawing request for application of section; furnishing information to commission; wages, contributions, and benefits deemed paid in this state; accounts.
Section 421.22bSectionTransferring trade or business with intent to reduce contribution rate or reimbursement payments.
Section 421.23SectionCoverage of employer; period.
Section 421.24SectionCessation of employing unit as employer subject to act; termination of coverage; rescission of determination.
Section 421.25SectionElection that services be deemed employment subject to act; request for termination of coverage; termination of election.
Section 421.26SectionUnemployment compensation fund.
Section 421.26aSectionIssuance of notes, bonds, financial instruments, or other evidences of indebtedness; use of proceeds; payment of unemployment obligation assessment; rate; collection; additional special subaccounts; agreements; definitions.
Section 421.26bSectionRepealed. 1951, Act 251, Imd. Eff. June 17, 1951.
Section 421.27SectionPayment of benefits.
Section 421.27aSectionPayment of benefits for certain periods of unemployment; amount; conditions; eligibility; limitation.
Section 421.27bSectionDeducting and withholding income tax from unemployment benefits.
Section 421.27cSectionNoncharging employer account; monetary redetermination; conditions.
Section 421.27nSectionRepealed. 1965, Act 281, Eff. Sept. 5, 1965.
Section 421.28SectionEligibility to receive benefits; conditions.
Section 421.28aSectionPreservation of unused credit weeks or benefit entitlement during period of continuous involuntary disability; request; written statement from physician; copies; extension of benefit year; payment of benefits; “continuous disability” defined; inability to establish benefit year; cessation of entitlement to benefits; applicability; dissemination of information to interested parties; date of request.
Section 421.28bSectionDefinitions; MCL 421.28c to 421.28m.
Section 421.28cSectionShared-work plan; application; requirements; manner; contents; approval of more than 1 plan.
Section 421.28dSectionShared-work plan; approval by unemployment agency; requirements; reduction percentage.
Section 421.28eSectionShared-work plan; approval or disapproval by unemployment agency.
Section 421.28fSectionShared-work plan; effective period.
Section 421.28gSectionCompensation.
Section 421.28hSectionSchedule; filing compensation claims; benefits; funding of benefits.
Section 421.28iSectionModification of shared-work plan.
Section 421.28jSectionTermination of shared-work plan; good cause.
Section 421.28kSectionAuthority of unemployment agency to approve, disapprove, modify, or terminate shared-work plan.
Section 421.28lSectionReport.
Section 421.28mSectionEffect of approval or disapproval by federal government.
Section 421.29SectionDisqualification from benefits.
Section 421.29m, 421.29nSectionRepealed. 1965, Act 281, Eff. Sept. 5, 1965.
Section 421.30SectionBenefits inalienable.
Section 421.31SectionWaiver of rights; limitation of fees.
Section 421.32SectionClaims for benefits; examination; determination; notice.
Section 421.32aSectionReview of determination; redetermination; notice; reconsideration; applicability of disqualification or ineligibility to compensable period; finality of redetermination; additional transfer provisions.
Section 421.32a.amendedSectionReview of determination; redetermination; notice; reconsideration; applicability of redetermination, disqualification, or ineligibility to compensable period; finality of redetermination; additional transfer provisions; finding of fraud; change in mailing address.
Section 421.32bSectionInternet site; establishment; access; purpose; protest or appeal.
Section 421.33SectionAssignment to administrative law judge; appeals and transferred matters; consolidation of cases; procedure for appeal to Michigan compensation appellate commission.
Section 421.34SectionAppeal to Michigan compensation appellate commission from findings of fact and decision or from denial of motion for rehearing or reopening.
Section 421.35, 421.36SectionRepealed. 2011, Act 269, Imd. Eff. Dec. 19, 2011.
Section 421.37SectionFees for subpoenaed witnesses; fees and expenses of proceedings; issuance of subpoena.
Section 421.38SectionReview by circuit court; direct appeal of order or decision of administrative law judge; unemployment agency as party; manner of appeal.
Section 421.39SectionEmployment security act; definitions.
Section 421.40Section“Employing unit” defined.
Section 421.41Section“Employer” defined.
Section 421.41aSectionRepealed. 1951, Act 251, Imd. Eff. June 17, 1951.
Section 421.42Section“Employment” defined.
Section 421.42aSectionCoverage of services; determination; penalties and interests.
Section 421.43SectionServices excluded from term "employment."
Section 421.44Section“Remuneration” and “wages” defined.
Section 421.44aSection“Previously uncovered services” defined; wages to include remuneration for previously uncovered services; limitation on use of remuneration and on charging of benefits; claims to which section applicable; retroactive claims; remuneration for previously uncovered services; identification and notification of individuals entitled to benefits; charging certain amounts of benefits to state only; reimbursement of commission.
Section 421.45SectionBase periods; definition.
Section 421.46Section“Benefit year” defined; conditions; rights of claimant.
Section 421.46aSectionEstablishment of benefit year where individual unable to establish benefit year under MCL 421.46; conditions; calculation of average weekly wage; charge to employers; extended benefits; claim.
Section 421.47SectionCalendar quarter; definition.
Section 421.48Section“Unemployed” explained; amounts considered wages or remuneration; leave of absence; elected layoff.
Section 421.48aSectionTransmission or receipt by mail.
Section 421.49SectionLast day of protest or appeal period falling on Saturday, Sunday, or legal holiday; running of statutory periods.
Section 421.50Section“Week" defined.
Section 421.50aSection“Governmental entity” defined.
Section 421.51Section“Benefits” and “average weekly wage” defined.
Section 421.51aSectionRepealed. 1951, Act 251, Imd. Eff. June 17, 1951.
Section 421.52SectionState; definition.
Section 421.53Section“Hospital,”“institution of higher education,” and “educational institution other than institution of higher education,” defined.
Section 421.54SectionSanctions; penalties.
Section 421.54.amendedSectionSanctions; penalties.
Section 421.54.amended[2]SectionSanctions; penalties.
Section 421.54aSectionRequiring individual to make false statement or representation regarding benefit or other payment as condition of employment; remedies; applicability; disposition of amounts recovered; effective date of section.
Section 421.54bSectionConspiracy; applicability; penalties; disposition of amounts recovered; effective date of section.
Section 421.54cSectionEmbezzlement; penalties; applicability; disposition of amounts recovered; effective date of section.
Section 421.54fSectionReport of fraudulent claim; contents; submission of affidavit by affected individual; duties of unemployment agency; appeal of determination; determination of identity theft; credit to employer's account; misrepresentation; affected individual as interested party; definitions.
Section 421.54gSectionReport regarding claims submitted by impostors; contents; definitions.
Section 421.54hSectionAppointment of individual to perform certain activities; "impostor" defined.
Section 421.55SectionCatchline headings of section not part of act.
Section 421.56SectionAmerican vessel, American aircraft; definitions.
Section 421.57SectionAmendment or repeal of act.
Section 421.58SectionSuspension of provisions.
Section 421.59SectionRepeal.
Section 421.60SectionAdvance from federal fund; repayment.
Section 421.60aSectionProtection of deaf.
Section 421.61SectionRepealed. 1951, Act 251, Imd. Eff. June 17, 1951.
Section 421.62SectionRecovery of improperly paid benefits.
Section 421.63SectionRepealed. 1971, Act 231, Imd. Eff. Jan. 3, 1972.
Section 421.64SectionPayment of extended benefits.
Section 421.65SectionEffective dates of Act 231 of 1971; recomputation of benefits.
Section 421.66SectionEffective dates of Act 104 of 1974; recomputation of benefits.
Section 421.67SectionEffective dates of Act 110 of 1975; recomputation of weekly benefit rate and maximum amount of benefits; supplemental benefits.
Section 421.67aSectionRepealed. 1996, Act 535, Imd. Eff. Jan. 13, 1997.
Section 421.67bSectionAnnual report to legislature; validating representations made by employer to legislature.
Section 421.68, 421.69SectionRepealed. 1982, Act 535, Eff. Jan. 2, 1983.
Section 421.70SectionEffective date of Act 358 of 1980; recomputation of weekly benefit rate and maximum amount of benefits; supplemental benefits.
Section 421.71SectionEffective dates of Act 535 of 1982.
Section 421.72SectionEffective date of Act 164 of 1983.
Section 421.73SectionRounding benefits to next lower full dollar.
Section 421.75SectionConversion date to wage record system; effective date; report.
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