SENATE BILL No. 272

 

 

February 22, 2007, Introduced by Senators ALLEN, KUIPERS, BIRKHOLZ, CROPSEY and PAPPAGEORGE and referred to the Committee on Commerce and Tourism.

 

 

 

     A bill to amend 1936 (Ex Sess) PA 1, entitled

 

"Michigan employment security act,"

 

by amending section 20 (MCL 421.20), as amended by 2003 PA 174.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 20. (a) Benefits paid shall be charged against the

 

employer's account as of the quarter in which the payments are

 

made. If the bureau determines that any benefits charged against an

 

employer's account were improperly paid, an amount equal to the

 

charge based on those benefits shall be credited to the employer's

 

account and a corresponding charge shall be made to the

 

nonchargeable benefits account as of the current period or, in the

 


discretion of the bureau, as of the date of the charge. Benefits

 

paid to an individual as a result of an employer's failure to

 

provide the unemployment agency with separation, employment, and

 

wage data as required by section 32 shall be considered as benefits

 

properly paid to the extent that the benefits are chargeable to the

 

noncomplying employer.

 

     (b) For benefit years established before the conversion date

 

prescribed in section 75 October 1, 2000, benefits paid to an

 

individual shall be based upon the credit weeks earned during the

 

individual's base period and shall be charged against the

 

experience accounts of the contributing employers or charged to the

 

accounts of the reimbursing employers from whom the individual

 

earned credit weeks. If the individual earned credit weeks from

 

more than 1 employer, a separate determination shall be made of the

 

amount and duration of benefits based upon the total credit weeks

 

and wages earned with each employer. Benefits paid in accordance

 

with the determinations shall be charged against the experience

 

account of a contributing employer or charged to the account of a

 

reimbursing employer beginning with the most recent employer first

 

and thereafter as necessary against other base period employers in

 

inverse order to that in which the claimant earned his or her last

 

credit week with those employers. If there is any disqualifying act

 

or discharge under section 29(1) with an employer, benefits based

 

upon credit weeks earned from that employer before the

 

disqualifying act or discharge shall be charged only after the

 

exhaustion of charges as provided above. Benefits based upon those

 

credit weeks shall be charged first against the experience account

 


of the contributing employer involved or to the account of the

 

reimbursing employer involved in the most recent disqualifying act

 

or discharge and thereafter as necessary in similar inverse order

 

against other base period employers involved in disqualifying acts

 

or discharges. The order of charges determined as of the beginning

 

date of a benefit year shall remain fixed during the benefit year.

 

For benefit years established after the conversion date prescribed

 

in section 75 on or after October 1, 2000, the claimant's full

 

weekly benefit rate shall be charged to the account or experience

 

account of the claimant's most recent separating employer for each

 

of the first 2 weeks of benefits payable to the claimant in the

 

benefit year in accordance with the monetary determination issued

 

pursuant to section 32. However, if the total sum of wages paid by

 

an employer totals $200.00 or less, those wages shall be used for

 

purposes of benefit payment, but any benefit charges attributable

 

to those wages shall be charged to the nonchargeable benefits

 

account. Thereafter, remaining weeks of benefits payable in the

 

benefit year shall be paid in accordance with the monetary

 

determination and shall be charged proportionally to all base

 

period employers, with the charge to each base period employer

 

being made on the basis of the ratio that total wages paid by the

 

employer in the base period bears to total wages paid by all

 

employers in the base period. However, if the claimant did not

 

perform services for the most recent separating employer or

 

employing entity and receive earnings for performing the services

 

of at least the amount a claimant must earn, in the manner

 

prescribed in section 29(3), to requalify for benefits following a

 


disqualification under section 29(1)(a), (b), (i), or (k) during

 

the claimant's most recent period of employment with the employer

 

or employing entity, then all weeks of benefits payable in the

 

benefit year shall be charged proportionally to all base period

 

employers, with the charge to each base period employer being made

 

on the basis of the ratio that total wages paid by the employer in

 

the base period bears to total wages paid by all employers in the

 

base period. If the claimant performed services for the most recent

 

separating employing entity and received earnings for performing

 

the services of at least the amount a claimant must earn, in the

 

manner prescribed in section 29(3), to requalify for benefits

 

following a disqualification under section 29(1)(a), (b), (i), or

 

(k) during the claimant's most recent period of employment for the

 

employing entity but the separating employing entity was not a

 

liable employer, the first 2 weeks of benefits payable to the

 

claimant shall be charged proportionally to all base period

 

employers, with the charge to each base period employer being made

 

on the basis of the ratio that total wages paid by the employer in

 

the base period bears to total wages paid by all employers in the

 

base period. The "separating employer" is the employer that caused

 

the individual to be unemployed as defined in section 48.

 

     (c) For benefit years established before the conversion date

 

prescribed in section 75 October 1, 2000, and except as otherwise

 

provided in section 11(d) or (g) or section 46a, the charges for

 

regular benefits to any reimbursing employer or to any contributing

 

employer's experience account shall not exceed the weekly benefit

 

rate multiplied by 3/4 the number of credit weeks earned by the

 


individual during his or her base period from that employer. If the

 

resultant product is not an even multiple of 1/2 the weekly benefit

 

rate, the amount shall be raised to an amount equal to the next

 

higher multiple of 1/2 the weekly benefit rate, and in the case of

 

an individual who was employed by only 1 employer in his or her

 

base period and who earned 34 credit weeks with that employer, the

 

product shall be raised to the next higher multiple of the weekly

 

benefit rate.

 

     (d) For benefit years beginning after the conversion date

 

prescribed in section 75 on or after October 1, 2000, and except as

 

otherwise provided in section 11(d) or (g) or section 46, the

 

charges for regular benefits to any reimbursing employer's account

 

or to any contributing employer's experience account shall not

 

exceed either the amount derived by multiplying by 2 the weekly

 

benefit rate chargeable to the employer in accordance with

 

subsection (b) if the employer is the separating employer and is

 

chargeable for the first 2 weeks of benefits, or the amount derived

 

from the percentage of the weekly benefit rate chargeable to the

 

employer in accordance with subsection (b), multiplied by the

 

number of weeks of benefits chargeable to base period employers

 

based on base period wages, to which the individual is entitled as

 

provided in section 27(d), if the employer is a base period

 

employer, or both of these amounts if the employer was both the

 

chargeable separating employer and a base period employer.

 

     (e) For benefit years beginning before the conversion date

 

prescribed in section 75 October 1, 2000:

 

     (1) When If an individual has multiemployer credit weeks in

 


his or her base period, and when if it becomes necessary to use

 

those credit weeks as a basis for benefit payments, a single

 

determination shall be made of the individual's weekly benefit rate

 

and maximum amount of benefits based on the individual's

 

multiemployer credit weeks and the wages earned in those credit

 

weeks. Each employer involved in the individual's multiemployer

 

credit weeks shall be an interested party to the determination. The

 

proviso in section 29(2) shall not be applicable does not apply to

 

multiemployer credit weeks, nor shall does the reduction provision

 

of section 29(4) apply to benefit entitlement based upon those

 

credit weeks.

 

     (2) The charge for benefits based on multiemployer credit

 

weeks shall be allocated to each employer involved on the basis of

 

the ratio that the total wages earned during the total

 

multiemployer credit weeks counted under section 50(b) with the

 

employer bears to the total amount of wages earned during the total

 

multiemployer credit weeks counted under section 50(b) with all

 

such employers, computed to the nearest cent. However, if an

 

adjusted weekly benefit rate is determined in accordance with

 

section 27(f), the charge to the employer who has contributed to

 

the financing of the retirement plan shall be reduced by the same

 

amount by which the weekly benefit rate was adjusted under section

 

27(f). Benefits for a week of unemployment allocated under this

 

subsection to a contributing employer shall be charged to the

 

nonchargeable benefits account if the claimant during that week

 

earns remuneration with that employer that equals or exceeds the

 

amount of benefits allocated to that employer.

 


     (3) Benefits paid in accordance with the determination based

 

on multiemployer credit weeks shall be allocated to each employer

 

involved and charged as of the quarter in which the payments are

 

made. Notice of charges made under this subsection shall be given

 

to each employer by means of a current listing of charges, at least

 

weekly, or of a quarterly statement of charges. The listing or

 

statement shall specify the weeks for which benefits were paid

 

based on multiemployer credit weeks and the amount of benefits paid

 

chargeable to that employer for each week. The notice shall be

 

considered to satisfy the requirements of sections 21(a) and 32(d)

 

that notification be given each employer of benefits charged

 

against that employer's account by means of a copy or listing of

 

the benefit check, and all protest and appeal rights applicable to

 

benefit check copies or listings shall also be applicable apply to

 

the notice of charges. If an employer receives both a current

 

listing of charges and a quarterly statement of charges under this

 

subsection, all protest and appeal rights shall only be applicable

 

apply to the first notice given.

 

     (f) For benefit years beginning after the conversion date

 

prescribed in section 75 on or after October 1, 2000, if benefits

 

for a week of unemployment are charged to 2 or more base period

 

employers, the share of the benefits allocated and charged under

 

this section to a contributing employer shall be charged to the

 

nonchargeable benefits account if the claimant during that week

 

earns remuneration with that employer that equals or exceeds the

 

amount of benefits charged to that employer.

 

     (g) For benefit years beginning before the conversion date

 


prescribed in section 75 October 1, 2000:

 

     (1) Training benefits as provided in section 27(g), and

 

extended benefits as provided in section 64, shall be allocated to

 

each reimbursing employer involved in the individual's base period

 

of the claim to which the benefits are related, on the basis of the

 

ratio that the total wages earned during the total credit weeks

 

counted under section 50(b) with a reimbursing employer bears to

 

the total amount of wages earned during the total credit weeks

 

counted under section 50(b) with all employers.

 

     (2) Training benefits and extended benefits, to the extent

 

that they are not reimbursable by the federal government and have

 

been allocated to a reimbursing employer, shall be charged to that

 

reimbursing employer. A contributing employer's experience account

 

shall not be charged with training benefits. Training benefits

 

based on service with a contributing employer, to the extent that

 

they are not reimbursable by the federal government, shall be

 

charged to the nonchargeable benefits account. Extended benefits

 

paid and based on service with a contributing employer, to the

 

extent that they are not reimbursable by the federal government,

 

shall be charged to that employer's experience account.

 

     (3) If the training benefits or extended benefits are

 

chargeable only to a single reimbursing employer, the benefits

 

shall be charged in accordance with subsection (a). If the training

 

benefits or extended benefits are chargeable to more than 1

 

reimbursing employer, or to 1 or more reimbursing employers and the

 

nonchargeable benefits account, the benefits shall be charged as of

 

the quarter in which the payments are made.

 


     (4) Notice of charges made under this subsection shall be

 

given to each employer by means of a current listing of charges, at

 

least weekly, and subsequently by a quarterly summary statement of

 

charges. The listing shall specify the name and social security

 

number of each claimant paid benefits during the week, the weeks

 

for which the benefits were paid, and the amount of benefits

 

chargeable to that employer paid for each week. The quarterly

 

statement of charges shall list each claimant by name and social

 

security number and shall show total benefit payments chargeable to

 

that employer and made to each claimant during the calendar

 

quarter. The listing shall be considered to satisfy the

 

requirements of sections 21(a) and 32(d) that notification be given

 

each employer of benefits charged against that employer's account

 

by means of a listing of the benefit check. All protest and appeal

 

rights applicable to benefit check listings shall also be

 

applicable apply to the notice of charges. If an employer receives

 

both a current listing of charges and a quarterly statement of

 

charges under this subsection, all protest and appeal rights shall

 

only be applicable apply to the first notice given.

 

     (h) For benefit years beginning after the conversion date

 

prescribed in section 75 on or after October 1, 2000:

 

     (1) Training benefits as provided in section 27(g), and

 

extended benefits as provided in section 64, shall be charged to

 

each reimbursing employer in the base period of the claim to which

 

the benefits are related, on the basis of the ratio that the total

 

wages paid by a reimbursing employer during the base period bears

 

to the total wages paid by all reimbursing employers in the base

 


period.

 

     (2) Training benefits, and extended benefits to the extent

 

they are not reimbursable by the federal government and have been

 

allocated to a reimbursing employer, shall be charged to that

 

reimbursing employer. A contributing employer's experience account

 

shall not be charged with training benefits. Training benefits

 

based on service with a contributing employer, to the extent they

 

are not reimbursable by the federal government, shall be charged to

 

the nonchargeable benefits account. Except as provided in section

 

17(3)(m), extended benefits paid and based on service with a

 

contributing employer, to the extent they are not reimbursable by

 

the federal government, shall be charged to that employer's

 

experience account.

 

     (3) If the training benefits or extended benefits are

 

chargeable only to a single reimbursing employer, the benefits

 

shall be charged in accordance with subsection (a). If the training

 

benefits or extended benefits are chargeable to more than 1

 

reimbursing employer, or to 1 or more reimbursing employers and the

 

nonchargeable benefits account, the benefits shall be charged as of

 

the quarter in which the payments are made.

 

     (4) Notice of charges made under this subsection shall be

 

given to each employer by means of a current listing of charges, at

 

least weekly, and subsequently by a quarterly summary statement of

 

charges. The listing shall specify the name and social security

 

number of each claimant paid benefits in the week, the weeks for

 

which the benefits were paid, and the amount of benefits chargeable

 

to that employer paid for each week. The quarterly summary

 


statement of charges shall list each claimant by name and social

 

security number and shall show total benefit payments chargeable to

 

that employer and made to each claimant during the calendar

 

quarter. The listing shall be considered to satisfy the

 

requirements of sections 21(a) and 32(d) that notification be given

 

to each employer of benefits charged against that employer's

 

account by means of a listing of the benefit check. All protest and

 

appeal rights applicable to benefit check listings shall also be

 

applicable apply to the notice of charges. If an employer receives

 

both a current listing of charges and a quarterly summary statement

 

of charges under this subsection, all protest and appeal rights

 

shall only be applicable apply to the first notice given.

 

     (i) If a benefit year is established after the conversion date

 

prescribed in section 75 on or after October 1, 2000, the portion

 

of benefits paid in that benefit year that are based on wages used

 

to establish the immediately preceding benefit year that began

 

before the conversion date October 1, 2000 shall not be charged to

 

the employer or employers who paid those wages but shall be charged

 

instead to the nonchargeable benefits account.

 

     (j) If a reimbursing employer is charged for extended benefits

 

during a period when extended benefits are paid based on the

 

average rate of total unemployment, in accordance with section

 

64(5)(c)(ii), the bureau shall credit the account of the reimbursing

 

employer for the full amount of those extended benefits. The bureau

 

shall charge the contingent fund created under section 10(6) for

 

amounts so credited to reimbursing employers. This subsection is

 

effective with respect to benefit charges for extended benefits

 


paid for weeks of unemployment beginning the week after the week in

 

which this subsection becomes effective and ending the week ending

 

January 17, 2004.

 

     (j) For benefit years beginning after the effective date of

 

the amendatory act that added this subsection, benefits that are

 

attributable to business necessity resulting from a governmental

 

road closure or repair that temporarily limits access to the

 

employer's business premises for a period of 30 days or more are

 

not chargeable to the employer, but are chargeable to the

 

nonchargeable benefits account.