SB-0806, As Passed Senate, December 1, 2011
SUBSTITUTE FOR
SENATE BILL NO. 806
A bill to amend 1936 (Ex Sess) PA 1, entitled
"Michigan employment security act,"
by amending sections 6a, 10, 11, 13, 13m, 15, 17, 19, 19a, 20,
21, 27, 28, 29, 32a, 32b, 33, 34, 37, 38, 42, 44, 46, 48, 50, 54,
62, and 64 (MCL 421.6a, 421.10, 421.11, 421.13, 421.13m, 421.15,
421.17, 421.19, 421.19a, 421.20, 421.21, 421.27, 421.28, 421.29,
421.32a, 421.32b, 421.33, 421.34, 421.37, 421.38, 421.42, 421.44,
421.46, 421.48, 421.50, 421.54, 421.62, and 421.64), section 6a
as amended by 1992 PA 204, sections 10, 15, 54, 62, and 64 as
amended by 2011 PA 14, sections 11 and 19a as amended by 2009 PA
1, section 13 as amended by 1985 PA 197, section 13m as added by
2010 PA 383, section 17 as amended by 2009 PA 18, section 19 as
amended by 2007 PA 188, section 20 as amended by 2009 PA 20,
sections 21, 33, and 34 as amended by 1983 PA 164, section 27 as
amended by 2011 PA 216, section 28 as amended by 1994 PA 422,
section 29 as amended by 2008 PA 480, sections 32a and 38 as
amended by 1996 PA 503, section 32b as added and sections 44 and
48 as amended by 2002 PA 192, and sections 46 and 50 as amended
by 1995 PA 25, and by adding sections 15a, 42a, and 48a; and to
repeal acts and parts of acts.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
1 Sec. 6a. By resolution adopted by a majority of its members,
2 the commission The
unemployment insurance agency may
destroy or
3 dispose of a document that has been retained in the commission
4 files for not less than 2 years and that in the commission's
5 opinion is of no value to the commission, and may authorize the
6 director to make or cause to be made a reproduction pursuant to
7 the records media act, or a summary or compilation, that he or
8 she considers advisable to preserve the information contained in
9 the document. as soon
as practicable after the document has been
10 electronically captured and preserved in an information retrieval
11 system. Electronically stored records shall be retained for the
12 same minimum retention period as required for the original
13 record. If an original document is destroyed or disposed of
14 pursuant to this section, a reproduction of the document in a
15 medium pursuant to the records media act, a reproduction
16 consisting of a printout or other output readable by sight from
17 such a medium, or a summary or compilation of the document, if
18 certified by the director to be a true and accurate official
19 reproduction, compilation, or summary of the original
20 reproduction act, 1992 PA 116, MCL 24.401 to 24.406, is
21 admissible in evidence the same as the original in any proceeding
1 before the commission, referee, or appeal board administrative
2 law judge, or Michigan compensation appellate commission and in
3 all courts. Information contained on printouts prepared by
4 automatic data processing equipment is also admissible in
5 evidence, if the original documents from which such information
6 was obtained would have been admissible.
7 Sec. 10. (1) There is created in the department of treasury
8 a special fund to be known and designated as the administration
9 fund (Michigan employment security act). Any balances in the
10 administration fund at the end of any fiscal year of this state
11 shall be carried over as a part of the administration fund and
12 shall not revert to the general fund of this state. Except as
13 otherwise provided in subsection (3), all money deposited into
14 the administration fund under this act shall be appropriated by
15 the legislature to the unemployment agency to pay the expenses of
16 the administration of this act.
17 (2) The administration fund shall be credited with all money
18 appropriated to the fund by the legislature, all money received
19 from the United States or any agency of the United States for
20 that purpose, and all money received by this state for the fund.
21 All money in the administration fund that is received from the
22 federal government or any agency of the federal government or
23 that is appropriated by this state for the purposes of this act,
24 except money requisitioned from the account of this state in the
25 unemployment trust fund pursuant to a specific appropriation made
26 by the legislature in accordance with section 903(c)(2) of title
27 IX of the social security act, 42 USC 1103(c)(2), and with
1 section 17(3)(f), shall be expended solely for the purposes and
2 in the amounts found necessary by the appropriate agency of the
3 United States and the legislature for the proper and efficient
4 administration of this act.
5 (3) All money requisitioned from the account of this state
6 in the unemployment trust fund pursuant to a specific
7 appropriation made by the legislature in accordance with section
8 903(c)(2) of title IX of the social security act, 42 USC
9 1103(c)(2), and with section 17(3)(f), shall be deposited in the
10 administration fund. Any money that remains unexpended at the
11 close of the 2-year period beginning on the date of enactment of
12 a specific appropriation shall be immediately redeposited with
13 the secretary of the treasury of the United States to the credit
14 of this state's account in the unemployment trust fund; or any
15 money that for any reason cannot be expended or is not to be
16 expended for the purpose for which appropriated before the close
17 of this 2-year period shall be redeposited at the earliest
18 practicable date.
19 (4) If any money received after June 30, 1941, from the
20 appropriate agency of the United States under title III of the
21 social security act, 42 USC 501 to 504, or any unencumbered
22 balances in the administration fund (Michigan employment security
23 act) as of that date, or any money granted after that date to
24 this state under the Wagner-Peyser act, as defined in section 12,
25 or any money made available by this state or its political
26 subdivisions and matched by money granted to this state under the
27 Wagner-Peyser act, is found by the appropriate agency of the
1 United States, because of any action or contingency, to have been
2 lost or been expended for purposes other than, or in amounts in
3 excess of, those found necessary by that agency of the United
4 States for the proper administration of this act, the money shall
5 be replaced by money appropriated for that purpose from the
6 general funds of this state to the administration fund (Michigan
7 employment security act) for expenditure as provided in this act.
8 Upon receipt of notice of such a finding by the appropriate
9 agency of the United States, the commission shall promptly report
10 the amount required for replacement to the governor and the
11 governor shall, at the earliest opportunity, submit to the
12 legislature a request for the appropriation of that amount. This
13 subsection shall not be construed to relieve this state of its
14 obligation with respect to funds received prior to July 1, 1941,
15 under the provisions of 42 USC 501 to 504.
16 (5) If any funds expended or disbursed by the commission are
17 found by the appropriate agency of the United States to have been
18 lost or expended for purposes other than, or in amounts in excess
19 of, those found necessary by that agency of the United States for
20 the proper administration of this act, and if these funds are
21 replaced as provided in subsection (4) by money appropriated for
22 that purpose from the general fund of this state, then the
23 director who approved the expenditure or disbursement of those
24 funds for those purposes or in those amounts, is liable to this
25 state in an amount equal to the sum of money appropriated to
26 replace those funds. The director shall be required by the
27 governor to post a proper bond in a sum not less than $25,000.00
1 to cover his or her liability as prescribed in this section, the
2 cost of the bond to be paid from the general fund of this state.
3 (6) There is created in the department of treasury a
4 separate fund to be known as the contingent fund (Michigan
5 employment security act) into which shall be deposited all
6 solvency taxes collected under section 19a and all interest on
7 contributions, penalties, and damages collected under this act.
8 Except as otherwise provided in subsections (8) and (9), all
9 amounts in the contingent fund (Michigan employment security act)
10 and all earnings on those amounts are continuously appropriated
11 without regard to fiscal year for the administration of the
12 unemployment agency and for the payment of interest on advances
13 from the federal government to the unemployment compensation fund
14 under 42 USC 1321, to be expended only if authorized by the
15 unemployment agency. Money deposited from the solvency taxes
16 collected under section 19a shall not be used for the
17 administration of the unemployment agency, except for the
18 repayment of loans from the state treasury and interest on loans
19 made under section 19a(3). However, an authorization or
20 expenditure shall not be made as a substitution for a grant of
21 federal funds or for any portion of a grant that, in the absence
22 of an authorization, would be available to the unemployment
23 agency. Immediately upon receipt of administrative grants from
24 the appropriate agency of the United States to cover
25 administrative costs for which the unemployment agency has
26 authorized and made expenditures from the contingent fund, those
27 grants shall be transferred to the contingent fund to the extent
1 necessary to reimburse the contingent fund for the amount of
2 those expenditures. Amounts needed to refund interest, damages,
3 and penalties erroneously collected shall be withdrawn and
4 expended for those purposes from the contingent fund upon order
5 of the unemployment agency. Any amount authorized to be expended
6 for administration under this section may be transferred to the
7 administration fund. An amount not needed for the purpose for
8 which authorized shall, upon order of the unemployment agency, be
9 returned to the contingent fund. Amounts needed to refund
10 erroneously collected solvency taxes shall be withdrawn and
11 expended for that purpose upon order of the unemployment agency.
12 (7) There is created in the department of treasury
13 contingent fund a separate fund to be known as the special fraud
14 control fund (Michigan employment security act). The special
15 fraud control fund shall consist of money collected or received
16 by the unemployment agency as follows:
17 (a) All interest and penalties collected under section 62.
18 (b) All gifts to, interest on, or profits earned by the
19 special fraud control fund.
20 (c) Amounts credited under section 54(k)(ii).
21 (8) The money in the special fraud control fund is
22 continuously appropriated only to the unemployment agency and may
23 not be transferred or otherwise made available to any other state
24 agency.
25 (9) All amounts in the special fraud control fund are to be
26 used first for the acquisition of packaged software that has a
27 proven record of success with the detection and collection of
1 unemployment benefit overpayments and then for administrative
2 costs associated with the prevention, discovery, and collection
3 of unemployment benefit overpayments, as included in the biennial
4 budget of the unemployment agency and approved by the
5 legislature. The unemployment agency shall submit a report to the
6 clerk of the house of representatives and the secretary of the
7 senate at the close of the 2-year period that begins on the
8 effective date of the amendatory act that added this subsection,
9 to show how the money from the special fraud control fund was
10 used and the results obtained from the special fraud control
11 fund. The department shall implement the initial detection and
12 collection software package by September 1, 2011.
13 (10) At the close of the state fiscal year in 2002 and each
14 year after 2002, all funds in the contingent fund (Michigan
15 employment security act) in excess of $15,000,000.00 shall lapse
16 to the unemployment trust fund.
17 Sec. 11. (a) In the administration of this act, the
18 commission shall cooperate with the appropriate agency of the
19 United States under the social security act. The commission shall
20 make reports, in a form and containing information as the
21 appropriate agency of the United States may require, and shall
22 comply with the provisions that the appropriate agency of the
23 United States prescribes to assure the correctness and
24 verification of the reports. The commission, subject to this act,
25 shall comply with the regulations prescribed by the appropriate
26 agency of the United States relating to the receipt or
27 expenditure of the sums that are allotted and paid to this state
1 for the purpose of assisting in the administration of this act.
2 As used in this section, "social security act" means the social
3 security act, chapter 531, 49 Stat. 620.
4 (b)(1) Information obtained from any employing unit or
5 individual pursuant to the administration of this act and
6 determinations as to the benefit rights of any individual are
7 confidential and shall not be disclosed or open to public
8 inspection other than to public employees and public officials in
9 the performance of their official duties under this act and to
10 agents or contractors of those public officials, including those
11 described in subdivision (viii), in any manner that reveals the
12 individual's or the employing unit's identity or any identifying
13 particular about any individual or any past or present employing
14 unit or that could foreseeably be combined with other publicly
15 available information to reveal identifying particulars. However,
16 all of the following apply:
17 (i) Information in the commission's possession that might
18 affect a claim for worker's disability compensation under the
19 worker's disability compensation act of 1969, 1969 PA 317, MCL
20 418.101 to 418.941, shall be available to interested parties as
21 defined in R 421.201 of the Michigan administrative code,
22 regardless of whether the commission is a party to an action or
23 proceeding arising under that act.
24 (ii) Any information in the commission's possession that may
25 affect a claim for benefits or a charge to an employer's
26 experience account shall be available to interested parties as
27 defined in R 421.201 of the Michigan administrative code, and to
1 their agents, if their agents provide the unemployment insurance
2 agency with a written authorization of representation from the
3 party represented. A written authorization of representation is
4 not required in any of the following circumstances:
5 (A) If the request is made by an attorney who is retained by
6 an interested party and files an appearance for purposes related
7 to a claim for unemployment benefits.
8 (B) If the request is made by an elected official performing
9 constituent services and the elected official presents reasonable
10 evidence that the identified individual authorized the
11 disclosure.
12 (C) If the request is made by a third party who is not
13 acting as an agent for an interested party and the third party
14 presents a release from an interested party for the information.
15 The release shall be signed by an interested party; specify the
16 information to be released and all individuals who may receive
17 the information; and state the specific purpose for which the
18 information is sought, that files of the state may be accessed to
19 obtain the information, and that the information sought will only
20 be used for the purpose indicated. The purpose specified in the
21 release shall be limited to that of providing a service or
22 benefit to the individual signing the release or carrying out
23 administration or evaluation of a public program to which the
24 release pertains.
25 (iii) Except as provided in this act, the information and
26 determinations shall not be used in any action or proceeding
27 before any court or administrative tribunal unless the commission
1 is a party to or a complainant in the action or proceeding, or
2 unless used for the prosecution of fraud, civil proceeding, or
3 other legal proceeding in the programs indicated in subdivision
4 (2).
5 (iv) Any report or statement, written or verbal, made by any
6 person to the commission, any member of the commission, or to any
7 person engaged in administering this act is a privileged
8 communication, and a person, firm, or corporation shall not be
9 held liable for slander or libel on account of a report or
10 statement. The records and reports in the custody of the
11 commission shall be available for examination by the employer or
12 employee affected.
13 (v) Subject to restrictions that the commission prescribes
14 by rule, information in the commission's possession may be made
15 available to any agency of this state, any other state, or any
16 federal agency charged with the administration of an unemployment
17 compensation law or the maintenance of a system of public
18 employment offices; the bureau of internal revenue of the United
19 States department of the treasury; the bureau of the census of
20 the economics and statistics administration of the United States
21 department of commerce; or the social security administration of
22 the United States department of health and human services.
23 (vi) Information obtained in connection with the
24 administration of the employment service this act may
be made
25 available to persons or agencies for purposes appropriate to the
26 operation of a public employment service or unemployment
27 compensation program. Subject to restrictions that the commission
1 prescribes by rule, the commission may also make that information
2 available to agencies of other states that are responsible for
3 the administration of public assistance to unemployed workers; ,
4 and to the departments of
this state; and to federal,
state, and
5 local law enforcement agencies in connection with a criminal
6 investigation involving the health, safety, or welfare of the
7 public. Information so released shall be used only for purposes
8 not inconsistent with the purposes of this act. The information
9 shall only be released upon assurance by the entity receiving the
10 information that it will reimburse the cost of providing the
11 information and will not disclose the information except to the
12 individual or employer that is the subject of the information, an
13 attorney or agent of the individual or employer, or a prosecuting
14 authority for or on behalf of the entity receiving the
15 information.
16 (vii) Upon request, the commission shall furnish to any
17 agency of the United States charged with the administration of
18 public works or assistance through public employment, and may
19 furnish to any state agency similarly charged, the name, address,
20 ordinary occupation, and employment status of each recipient of
21 benefits and the recipient's rights to further benefits under
22 this act.
23 (viii) Subject to restrictions the commission prescribes, by
24 rule or otherwise, the commission may also make information that
25 it obtains available for use in connection with research projects
26 of a public service nature to a college, university, or agency of
27 this state that is acting as a contractor or agent of a public
1 official and conducting research that assists the public official
2 in carrying out the duties of the office. A person associated
3 with those institutions or agencies shall not disclose the
4 information in any manner that would reveal the identity of any
5 individual or employing unit from or concerning whom the
6 information was obtained by the commission. The unemployment
7 insurance agency shall enter into a written, enforceable
8 agreement with the public official that holds the official
9 responsible for ensuring that the agent or contractor maintains
10 the confidentiality of the information. If the agreement is
11 violated, the agreement shall be terminated and the public
12 official may be subject to penalties equivalent to those that
13 apply under section 54(f) to a person associated with a college,
14 university, or public agency who discloses confidential
15 information.
16 (ix) The commission may request the comptroller of the
17 currency of the United States to cause an examination of the
18 correctness of any return or report of any national banking
19 association rendered under this act, and may, in connection with
20 the request, transmit the report or return to the comptroller of
21 the currency of the United States as provided in section 3305(c)
22 of the internal revenue code of 1986, 26 USC 3305(c).
23 (2) The commission shall disclose to qualified requesting
24 agencies, upon request, with respect to an identified individual,
25 information in its records pertaining to the individual's name;
26 social security number; gross wages paid during each quarter; the
27 name, address, and federal and state employer identification
1 number of the individual's employer; any other wage information;
2 whether an individual is receiving, has received, or has applied
3 for unemployment benefits; the amount of unemployment benefits
4 the individual is receiving or is entitled to receive; the
5 individual's current or most recent home address; whether the
6 individual has refused an offer of work and if so a description
7 of the job offered including the terms, conditions, and rate of
8 pay; and any other information which the qualified requesting
9 agency considers useful in verifying eligibility for, and the
10 amount of, benefits. For purposes of this subdivision, "qualified
11 requesting agency" means any state or local child support
12 enforcement agency responsible for enforcing child support
13 obligations under a plan approved under part d of title IV of the
14 social security act, 42 USC 651 to 669b; the United States
15 department of health and human services for purposes of
16 establishing or verifying eligibility or benefit amounts under
17 titles II and XVI of the social security act, 42 USC 401 to 434
18 and 42 USC 1381 to 1383f; the United States department of
19 agriculture for the purposes of determining eligibility for, and
20 amount of, benefits under the food stamp program established
21 under the food stamp act of 1977, 7 USC 2011 to 2036; and any
22 other state or local agency of this or any other state
23 responsible for administering the following programs:
24 (i) The aid to families with dependent children program under
25 part a of title IV of the social security act, 42 USC 601 to 619.
26 (ii) The medicaid program under title XIX of the social
27 security act, 42 USC 1396 to 1396v.
1 (iii) The unemployment compensation program under section 3304
2 of the internal revenue code of 1986, 26 USC 3304.
3 (iv) The food stamp program under the food stamp act of 1977,
4 7 USC 2011 to 2036.
5 (v) Any state program under a plan approved under title I,
6 X, XIV, or XVI of the social security act, 42 USC 301 to 306, 42
7 USC 1201 to 1206, 42 USC 1351 to 1355, and 42 USC 1381 to 1383f.
8 (vi) Any program administered under the social welfare act,
9 1939 PA 280, MCL 400.1 to 400.119b.
10 The information shall be disclosed only if the qualified
11 requesting agency has executed an agreement with the commission
12 to obtain the information and if the information is requested for
13 the purpose of determining the eligibility of applicants for
14 benefits, or the type and amount of benefits for which applicants
15 are eligible, under any of the programs listed above or under
16 title II and XVI of the social security act, 42 USC 401 to 434
17 and 42 USC 1381 to 1383f; for establishing and collecting child
18 support obligations from, and locating individuals owing such
19 obligations that are being enforced under a plan described in
20 section 454 of the social security act, 42 USC 654; or for
21 investigating or prosecuting alleged fraud under any of these
22 programs.
23 The commission shall cooperate with the department of human
24 services in establishing the computer data matching system
25 authorized in section 83 of the social welfare act, 1939 PA 280,
26 MCL 400.83, to transmit the information requested on at least a
27 quarterly basis. The information shall not be released unless the
1 qualified requesting agency agrees to reimburse the commission
2 for the costs incurred in furnishing the information.
3 In addition to the requirements of this section, except as
4 later provided in this subdivision, all other requirements with
5 respect to confidentiality of information obtained in the
6 administration of this act apply to the use of the information by
7 the officers and employees of the qualified requesting agencies,
8 and the sanctions imposed under this act for improper disclosure
9 of the information apply to those officers and employees. A
10 qualified requesting agency may redisclose information only to
11 the individual who is the subject of the information, an attorney
12 or other duly authorized agent representing the individual if the
13 information is needed in connection with a claim for benefits
14 against the requesting agency, or any criminal or civil
15 prosecuting authority acting for or on behalf of the requesting
16 agency.
17 The commission is authorized to enter into an agreement with
18 any qualified requesting agency for the purposes described in
19 this subdivision. The agreement or agreements shall comply with
20 all federal laws and regulations applicable to such agreements.
21 (3) The commission shall enable the United States department
22 of health and human services to obtain prompt access to any wage
23 and unemployment benefit claims information, including any
24 information that may be useful in locating an absent parent or an
25 absent parent's employer, for purposes of section 453 of the
26 social security act, 42 USC 653, in carrying out the child
27 support enforcement program under title IV of the social security
1 act, 42 USC 601 to 679b. Access to the information shall not be
2 provided unless the requesting agency agrees to reimburse the
3 commission for the costs incurred in furnishing the information.
4 (4) Upon request accompanied by presentation of a consent to
5 the release of information signed by an individual, the
6 commission shall disclose to the United States department of
7 housing and urban development, and any state or local public
8 housing agency, or an entity contracting with a state or local
9 public housing agency to provide public housing, or any other
10 agency responsible for verifying an applicant's or participant's
11 eligibility for, or level of benefits in, any housing assistance
12 program administered by the United States department of housing
13 and urban development, the name, address, wage information,
14 whether an individual is receiving, has received, or has applied
15 for unemployment benefits, and the amount of unemployment
16 benefits the individual is receiving or is entitled to receive
17 under this act. This information shall be used only to determine
18 an individual's eligibility for benefits or the amount of
19 benefits to which an individual is entitled under a housing
20 assistance program of the United States department of housing and
21 urban development. The information shall not be released unless
22 the requesting agency agrees to reimburse the commission for the
23 costs incurred in furnishing the information. For purposes of
24 this subdivision, "public housing agency" means an agency
25 described in section 3(b)(6) of the United States housing act of
26 1937, 42 USC 1437a(b)(6).
27 (5) The commission may make available to the department of
1 treasury information collected for the income and eligibility
2 verification system begun on October 1, 1988 for the purpose of
3 detecting potential tax fraud in other areas.
4 (6) A recipient of confidential information under this act
5 shall use the disclosed information only for purposes authorized
6 by law and consistent with an agreement entered into with the
7 unemployment insurance agency. The recipient shall not redisclose
8 the information to any other individual or entity without the
9 written permission of the unemployment insurance agency.
10 (c) The commission may enter into agreements with the
11 appropriate agencies of other states or the federal government
12 whereby potential rights to benefits accumulated under the
13 unemployment compensation laws of other states or of the federal
14 government, or both, may constitute the basis for the payment of
15 benefits through a single appropriate agency under plans that the
16 commission finds will be fair and reasonable to all affected
17 interests and will not result in substantial loss to the
18 unemployment compensation fund.
19 (d)(1) The commission may enter into reciprocal agreements
20 with the appropriate agencies of other states or of the federal
21 government adjusting the collection and payment of contributions
22 by employers with respect to employment not localized within this
23 state.
24 (2) The commission may enter into reciprocal agreements with
25 agencies of other states administering unemployment compensation,
26 whereby contributions paid by an employer to any other state may
27 be received by the other state as an agent acting for and on
1 behalf of this state to the same extent as if the contributions
2 had been paid directly to this state if the payment is remitted
3 to this state. Contributions so received by another state shall
4 be considered contributions, required and paid under this act as
5 of the date the contributions were received by the other state.
6 The commission may collect contributions in a like manner for
7 agencies of other states administering unemployment compensation
8 and remit the contributions to the agencies under the terms of
9 the reciprocal agreements.
10 (e) The commission may make the state's records relating to
11 the administration of this act available and may furnish to the
12 railroad retirement board or any other state or federal agency
13 administering an unemployment compensation law, at the expense of
14 that board, state, or agency, copies of the records as the
15 railroad retirement board considers necessary for its purpose.
16 (f) The commission may cooperate with or enter into
17 agreements with any agency of another state or of the United
18 States charged with the administration of any unemployment
19 insurance or public employment service law.
20 The commission may investigate, secure, and transmit
21 information, make available services and facilities, and exercise
22 other powers provided in this act with respect to the
23 administration of this act as it considers necessary or
24 appropriate to facilitate the administration of any unemployment
25 compensation or public employment service law, and may accept and
26 utilize information, services, and facilities made available to
27 this state by the agency charged with the administration of any
1 other unemployment compensation or public employment service law.
2 On request of an agency that administers an employment
3 security law of another state or foreign government and that has
4 found, in accordance with that law, that a claimant is liable to
5 repay benefits received under that law, the commission may
6 collect the amount of the benefits from the claimant to be
7 refunded to the agency.
8 In any case in which under this subsection a claimant is
9 liable to repay any amount to the agency of another state or
10 foreign government, the amount may be collected by civil action
11 in the name of the commission acting as agent for the agency.
12 Court costs shall be paid or guaranteed by the agency of that
13 state.
14 To the extent permissible under the laws and constitution of
15 the United States, the commission may enter into or cooperate in
16 arrangements whereby facilities and services provided under this
17 act and facilities and services provided under the unemployment
18 compensation law of Canada may be utilized for the taking of
19 claims and the payment of benefits under the unemployment
20 compensation law of this state or under a similar law of Canada.
21 Any employer who is not a resident of this state and who
22 exercises the privilege of having 1 or more individuals perform
23 service for him or her within this state, and any resident
24 employer who exercises that privilege and thereafter leaves this
25 state, is considered to have appointed the secretary of state as
26 his or her agent and attorney for the acceptance of process in
27 any civil action under this act. In instituting the action, the
1 commission shall cause process or notice to be filed with the
2 secretary of state, and the service shall be sufficient and shall
3 be of the same force and validity as if served upon the
4 nonresident or absent employer personally within this state. The
5 commission immediately shall send notice of the service of
6 process or notice, together with a copy thereof, by certified
7 mail, return receipt requested, to the employer at his or her
8 last known address. The return receipt, the commission's
9 affidavit of compliance with this section, and a copy of the
10 notice of service shall be attached to the original of the
11 process filed in the court in which the civil action is pending.
12 The courts of this state shall recognize and enforce
13 liabilities, as provided in this act, for unemployment
14 compensation contributions, penalties, and interest imposed by
15 other states that extend a like comity to this state.
16 The attorney general may commence action in the appropriate
17 court of any other state or any other jurisdiction of the United
18 States by and in the name of the commission to collect
19 unemployment compensation contributions, penalties, and interest
20 finally determined, redetermined, or decided under this act to be
21 legally due this state. The officials of other states that extend
22 a like comity to this state may sue in the courts of this state
23 for the collection of unemployment compensation contributions,
24 penalties, and interest, the liability for which has been
25 similarly established under the laws of the other state or
26 jurisdiction. A certificate by the secretary of another state
27 under the great seal of that state attesting the authority of the
1 official or officials to collect unemployment compensation
2 contributions, penalties, and interest is conclusive evidence of
3 that authority.
4 The attorney general may commence action in this state as
5 agent for or on behalf of any other state to enforce judgments
6 and established liabilities for unemployment compensation taxes
7 or contributions, penalties, and interest due the other state if
8 the other state extends a like comity to this state.
9 (g) The commission may also enter into reciprocal agreements
10 with the appropriate and authorized agencies of other states or
11 of the federal government whereby remuneration and services that
12 determine entitlement to benefits under the unemployment
13 compensation law of another state or of the federal government
14 are considered wages and employment for the purposes of sections
15 27 and 46, if the other state agency or agency of the federal
16 government has agreed to reimburse the fund for that portion of
17 benefits paid under this act upon the basis of the remuneration
18 and services as the commission finds will be fair and reasonable
19 as to all affected interests. A reciprocal agreement may provide
20 that wages and employment that determine entitlement to benefits
21 under this act are considered wages or services on the basis of
22 which unemployment compensation under the law of another state or
23 of the federal government is payable; may provide that services
24 performed by an individual for a single employing unit for which
25 services are customarily performed by the individual in more than
26 1 state are considered services performed entirely within any 1
27 of the states in which any part of the individual's service is
1 performed, in which the individual has his or her residence, or
2 in which the employing unit maintains a place of business, if
3 there is in effect as to those services, an election approved by
4 the agency charged with the administration of the state's
5 unemployment compensation law, under which all the services
6 performed by the individual for the employing unit are considered
7 to be performed entirely within the state; and may provide that
8 the commission will reimburse other state or federal agencies
9 charged with the administration of unemployment compensation laws
10 with such reasonable portion of benefits, paid under the law of
11 any other state or of the federal government upon the basis of
12 employment and wages, as the commission finds will be fair and
13 reasonable as to all affected interests. Reimbursements payable
14 under this subsection are considered benefits for the purpose of
15 limiting duration of benefits and for the purposes of sections
16 20(a) and 26, and the payments shall be charged to the
17 contributing employer's experience account for the purposes of
18 sections 17, 18, 19, and 20, or the reimbursing employer's
19 account under section 13c, 13g, 13i, or 13l, as applicable.
20 Benefits paid under a combined wage plan shall be allocated and
21 charged to each employer involved in the quarter in which the
22 paying state requires reimbursement. Benefits charged to this
23 state shall be allocated to each employer of this state who has
24 employed the claimant during the base period of the paying state
25 in the same ratio that the wages earned by the claimant during
26 the base period of the paying state in the employ of the employer
27 bears to the total amount of wages earned by the claimant in the
1 base period of the paying state in the employ of all employers of
2 the state. The commission is authorized to make to other state or
3 federal agencies and receive from other state or federal agencies
4 reimbursements from or to the fund, in accordance with
5 arrangements made under this section.
6 (h) The commission may enter into any agreement necessary to
7 cooperate with any agency of the United States charged with the
8 administration of any program for the payment of primary or
9 supplemental benefits to individuals recently discharged from the
10 military services of the United States, and to assist in the
11 establishing of eligibility and in the payments of benefits under
12 those programs, and for those purposes may accept and administer
13 funds made available by the federal government and may accept and
14 exercise any delegated function under those programs. The
15 commission shall not enter into any agreement providing for, or
16 exercise any function connected with, the disbursement of the
17 state's unemployment trust fund for purposes not authorized by
18 this act.
19 (i) The commission may enter into agreements with the
20 appropriate agency of the United States under which, in
21 accordance with the laws of the United States, the commission, as
22 agent of the United States or from funds provided by the United
23 States, provides for the payment of unemployment compensation or
24 unemployment allowances of any kind, including the payment of any
25 benefits and allowances that are made available for manpower
26 development, training, retraining, readjustment, and relocation.
27 The commission may receive and disburse funds from the United
1 States or any appropriate agency of the United States in
2 accordance with any such agreements.
3 If the federal enactment providing for unemployment
4 compensation, training allowance, or relocation payments requires
5 joint federal-state financing of such payments, the commission
6 may participate in the programs by using funds appropriated by
7 the legislature to the extent provided by the legislature for
8 such programs.
9 (j) The commission shall participate in any arrangement that
10 provides for the payment of compensation on the basis of
11 combining an individual's wages and employment covered under this
12 act with his or her wages and employment covered under the
13 unemployment compensation laws of other states, if the
14 arrangement is approved by the United States secretary of labor
15 in consultation with the state unemployment compensation agencies
16 as reasonably calculated to assure the prompt and full payment of
17 compensation. An arrangement shall include provisions for both of
18 the following:
19 (i) Applying the base period of a single state law to a claim
20 involving the combining of an individual's wages and employment
21 covered under 2 or more state unemployment compensation laws.
22 (ii) Avoiding the duplicate use of wages and employment as a
23 result of the combining.
24 (k) In a proceeding before any court, the commission and the
25 state shall be represented by the attorney general of this state
26 or attorneys designated by the attorney general. Only the
27 attorney general or other attorneys designated by the attorney
1 general shall act as legal counsel for the commission.
2 Sec. 13. (1) Each employer subject to this act shall pay to
3 the commission unemployment
agency a tax in the form of payments
4 in lieu of contributions where the employer is liable for those
5 payments, or tax contributions equal to a standard rate of 2.7%
6 for calendar years before 1985 and 5.4% for calendar year 1985
7 and thereafter, subject to an adjustment in rate of contributions
8 as provided in section 19. The contributions shall become due and
9 be paid to the commission, unemployment agency, for the
10 unemployment compensation fund, by each employer semiannually or
11 for shorter periods of not less than 28 days, as the commission
12 unemployment agency may by rule prescribe. Contributions due and
13 payable from an employer that is liable under this act solely on
14 the basis of the payment of wages for domestic service may be
15 paid annually on the date specified by the unemployment agency.
16 Contributions, and payments in lieu of contributions, shall be
17 credited first to penalty; then to interest; and then to
18 principal, unpaid and owing in the oldest calendar quarter and
19 progressing each quarter to the most recent quarter. An
20 employer's contribution shall not be deducted directly or
21 indirectly, in whole or in part, from wages of individuals in his
22 or her employ. In the payment of contributions, a fractional part
23 of a cent shall be disregarded unless it amounts to 1/2 cent or
24 more, in which case it shall be increased to 1 cent. A
25 contribution payment amount that is not an even dollar amount
26 shall be credited to the account of the employer in an amount
27 equal to the next lower dollar amount if under 50 cents and in an
1 amount equal to the next higher dollar amount if 50 cents or
2
more. The commission unemployment agency may prescribe by rule
3 the details of the computation and payment of contributions.
4 Every employing unit shall file with the commission unemployment
5
agency periodic reports on forms and at
a time as the commission
6 shall prescribe the unemployment
agency prescribes to disclose
7 liability for contributions under this act. Each employing unit
8 shall keep records, including wage and employment records, and
9 shall, within prescribed time limits, submit or provide reports,
10 including wage and employment reports, to the commission
11 unemployment agency or to the employing unit's employees or
12 former employees as the commission may by rule prescribe as
13 necessary to carry out this act.unemployment agency prescribes by
14 rule.
15 (2) Beginning with the first quarter of 1986, each employer
16 shall file a quarterly wage report with the commission,
17
unemployment agency, on forms and at a
time as the commission
18 shall prescribe, unemployment
agency prescribes, which shall
19 include for each of the employer's employees the employee's name,
20 social security number, gross wages paid during each quarter, and
21 the name, address, and federal and state employer identification
22 number of the individual's employer. If the unemployment agency
23 discovers an error in a report filed timely, the unemployment
24 agency shall provide written notification to the employer of the
25 error. If the employer provides corrected information within 14
26 days of the notification, the administrative fine provided in
27 section 54 for a late, incomplete, or erroneous report shall not
1 apply. An employer having more than 25 employees on January 1,
2 2013 shall file quarterly reports beginning with the report for
3 the first quarter of 2013 by an electronic method approved by the
4 unemployment agency. An employer having more than 5 but fewer
5 than 26 employees on January 1, 2013 shall file quarterly reports
6 beginning with the report for the first quarter of 2014 by an
7 electronic method approved by the unemployment agency. An
8 employer having 5 or fewer employees on January 1, 2013 shall
9 file quarterly reports beginning with the report for the first
10 quarter of 2015 by an electronic method approved by the
11 unemployment agency, except that the director of the unemployment
12 agency, upon application by the employer, may grant additional
13 time for the employer to comply with the electronic filing method
14 if the director concludes that satisfying the requirement of
15 electronic filing will cause economic hardship for the employer.
16 The employer shall provide, and the director shall consider,
17 information about the employer's anticipated cost expenditure for
18 preparing for electronic filing and about the employer's annual
19 income. An employer that complies with the reporting requirements
20 of this subsection by filing electronically a quarterly wage
21 report using a method approved by the unemployment agency is not
22 required to file periodically to disclose contributions under
23 this act.
24 (3) The unemployment agency shall allow a contributing
25 employer that employed 25 or fewer individuals during the pay
26 period that includes January 12, 2012, or during the
27 corresponding pay period in each succeeding calendar year, and
1 that incurred 50% or more of the employer's total previous year's
2 contribution obligation in the first quarter of that year to
3 discharge the liability for contributions due in the next
4 succeeding year through quarterly payments that distribute the
5 payment of the first quarter's obligation equally over the 4
6 quarters in that year. To avoid interest and penalties otherwise
7 applicable to those payments, an employer meeting the
8 requirements of this subsection shall notify the unemployment
9 agency of the election to make apportioned payments with the
10 first quarter's payment and timely file each succeeding quarterly
11 payment in the amounts prescribed in section 15a. This subsection
12 applies to contributions beginning in the 2013 tax year.
13 Sec. 13m. (1) A professional employer organization that has
14 not previously filed shall file a report with the agency in
15 accordance with R 421.121 and R 421.190 of the Michigan
16 administrative code for a determination of its status as a liable
17 employing unit and employer under this act. A PEO determined to
18 be a liable employer shall complete an electronic employer
19 registration in the manner approved by the agency to register its
20 employer liability.
21 (2) Except as provided in subdivision (b), a PEO that is a
22 liable employer shall use the following method for reporting
23 wages and paying unemployment contributions under this act:
24 (a) The PEO shall comply with all requirements of this act
25 that apply to a contributing employer. The PEO shall file a
26 single quarterly wage report and unemployment contribution report
27 and pay contributions of its client employers based on the
1 account information of each client employer. The unemployment
2 agency shall convert a reimbursing employer to a contributing
3 employer beginning with the calendar quarter in which the
4 employer becomes a client employer of a PEO. The PEO shall file
5 reports required under R 421.121 of the Michigan administrative
6 code and make contribution payments by electronic reporting and
7 payment methods approved by the agency. The PEO shall notify the
8 agency within 30 days after any employer becomes its client
9 employer and within 30 days after any client employer
10 discontinues its association with the PEO. All of the following
11 apply to a rate calculation for client employers of the PEO:
12 (i) For a client employer that is a contributing employer and
13 was a client employer of the PEO on the date that the PEO changed
14 to the reporting method provided in this subdivision, the
15 following rates apply:
16 (A) Except as provided in sub-subparagraphs (B) and (C), if
17 the client employer reported no employees or no payroll to the
18 agency for 8 12 or more quarters, the client employer's
19 unemployment tax rate will be the new employer tax rate.
20 (B) If the client employer was a client employer of the PEO
21 for less than 8 12
full calendar quarters, the client
employer's
22 unemployment tax rate will be based on the client employer's
23 prior account and experience.
24 (C) If the client employer's account has been terminated for
25 more than 1 year or if the client employer never previously
26 registered with the agency, the client shall be separately
27 registered using a method approved by the agency within 30 days
1 after the employer becomes a client employer of the PEO. The
2 client employer shall be assigned the new employer unemployment
3 tax rate.
4 (ii) A business entity that is a contributing employer and
5 becomes a client employer of the PEO on or after January 1, 2011
6 shall retain its existing unemployment tax rate or establish a
7 new rate as provided in section 19.
8 (b) A PEO that is a liable employer and that was operating
9 in this state before January 1, 2011 may elect and use the
10 reporting method in subdivision (a) before January 1, 2014, but
11 shall report using the method in subdivision (a) on and after
12 January 1, 2014.
13 (3) A PEO that is a liable employer is the employer for
14 purposes of claims management and hearings under this act on
15 behalf of the client employer.
16 (4) A PEO that reports under subsection (2)(a) shall confirm
17 the mailing address of the client employer, which may be stated
18 as that of the PEO or of the client employer. The PEO shall
19 disclose the business address of the client employer, which shall
20 be the physical address of the client employer, to the agency.
21 (5) Either the PEO that reports under subsection (2)(a) or
22 the PEO's client employers, but not both, shall file a quarterly
23 wage detail report electronically, and shall file a quarterly
24 contribution payment in a manner approved by the agency. If a
25 client entity of a PEO leases some of its employees from the PEO
26 but retains the remainder of its employees, the leased employees
27 shall be reported by the PEO under the client entity's
1 unemployment insurance agency account number and the retained
2 employees shall be reported by the client entity under an agency-
3 assigned subaccount number of the client entity's account number.
4 (6) The agency shall issue a FUTA certification in
5 accordance with the internal revenue code of 1986, 26 USC 1 to
6 9834, and regulations, rulings, instructions, and directives of
7 the internal revenue service.
8 (7) The requirements of this section do not preclude the
9 agency from enforcing any provision of this act based on any act
10 or omission by a PEO that occurred before January 1, 2011.
11 (8) As used in this section, "professional employer
12 organization" or "PEO" means that term as defined in R
13 421.190(1)(d) of the Michigan administrative code.
14 Sec. 15. (a) Contributions unpaid on the date on which they
15 are due and payable, as prescribed by the commission,
16 unemployment agency, and unpaid restitution of benefit
17 overpayments shall bear interest at the rate of 1% per month,
18 computed on a day-to-day basis for each day the delinquency is
19 unpaid, from and after that date until payment plus accrued
20 interest is received by the commission unemployment agency.
21 Amounts illegally obtained or previously withheld from payment
22 and damages that are recovered by the commission under section
23 54(a) and (b) and sections 54a to 54c shall bear interest at the
24 rate of 1% per month, computed on a day-to-day basis for each day
25 the amounts remain unpaid until payment plus accrued interest is
26 received by the commission. The
interest on unpaid contributions
27 and on unpaid benefit overpayments, exclusive of penalties, shall
1 not exceed 50% of the amount of contributions due at due date or
2 50% of the amount of restitution owing. Nothing in this act
3 authorizes the assessment or collection of interest on a penalty
4 imposed under this act. Interest and penalties collected pursuant
5 to this section shall be paid into the contingent fund. ,
except
6 that interest and penalties collected under section 62 shall be
7 paid into the special fraud control fund. The commission
8 unemployment agency may cancel any interest and any penalty when
9 it is shown that the failure to pay on or before the last day on
10 which the tax could have been paid without interest and penalty
11 was not the result of negligence, intentional disregard of the
12 rules of the commission, unemployment agency, or
fraud.
13 (b) The commission unemployment agency may make
assessments
14 against an employer, claimant, employee of the commission,
15 unemployment agency, or third party who fails to pay
16 contributions, restitution of benefit overpayments, reimbursement
17 payments in lieu of contributions, penalties, forfeitures, or
18 interest as required by this act. The commission unemployment
19 agency shall immediately notify the employer, claimant, employee
20 of the commission, unemployment
agency, or third party of the
21 assessment in writing by first-class mail. An assessment by the
22 commission unemployment
agency against a claimant, an employee
of
23 the commission, unemployment
agency, or a third party under this
24 subsection shall be made only for penalties and interest on those
25 penalties for violations of
section 54(a) or (b) or sections 54a
26 to 54c. The assessment is a final determination unless the
27 employer, claimant, employee of the commission, unemployment
1
agency, or third party files with the commission
unemployment
2 agency an application for a redetermination of the assessment in
3 accordance with section 32a. A review by the commission
4
unemployment agency or an appeal to a
referee an administrative
5
law judge or the appeal board Michigan compensation appellate
6 commission on the assessment does not reopen a question
7 concerning an employer's liability for contributions or
8 reimbursement payments in lieu of contributions or a claimant's
9 entitlement to benefits, unless the claimant or employer was not
10 a party to the proceeding or decision where the basis for the
11 assessment was determined. An employer may pay an assessment
12 under protest and file an action to recover the amount paid as
13 provided under subsection (d). Unless an assessment is paid
14 within 15 days after it becomes final the commission unemployment
15 agency may issue a warrant under its official seal for the
16 collection of the assessed amount. The commission unemployment
17 agency through its authorized employees, under a warrant issued,
18 may place a lien on any bank account of the claimant or employer
19 and may levy upon and sell the property of the employer that is
20 used in connection with the employer's business, or that is
21 subject to a notice to withhold, found within the state, for the
22 payment of the amount of the contributions including penalties,
23 interests, and the cost of executing the warrant. Property of the
24 employer used in connection with the employer's business is not
25 exempt from levy under the warrant. Wages subject to a notice to
26 withhold are exempt to the extent the wages are exempt from
27 garnishment under the laws of this state. The warrant shall be
1 returned to the commission unemployment agency together
with the
2 money collected under the warrant within the time specified in
3 the warrant which shall not be less than 20 or more than 90 days
4 after the date of the warrant. The commission unemployment agency
5 shall proceed upon the warrant as prescribed by law in respect to
6 executions issued against property upon judgments by a court of
7 record. The state, through the commission unemployment agency or
8 some other officer or agent designated by it, may bid for and
9 purchase property sold under the provisions of this subsection.
10 If an employer, claimant, employee of the commission,
11 unemployment agency, or third party, as applicable, is delinquent
12 in the payment of a contribution, reimbursement payment in lieu
13 of contribution, penalty, forfeiture, or interest provided for in
14 this act, the commission unemployment agency may give
notice of
15 the amount of the delinquency served either personally or by
16 mail, to a person or legal entity, including the state and its
17 subdivisions, that has in its possession or under its control a
18 credit or other intangible property belonging to the employer,
19 claimant, employee of the commission, unemployment agency, or
20 third party, or who owes a debt to the employer, claimant,
21 employee of the commission, unemployment agency, or
third party
22 at the time of the receipt of the notice. A person or legal
23 entity so notified shall not transfer or dispose of the credit,
24 other intangible property, or debt without retaining an amount
25 sufficient to pay the amount specified in the notice unless the
26 unemployment agency consents to a transfer or disposition or 45
27 days have elapsed from the receipt of the notice. A person or
1 legal entity so notified shall advise the unemployment agency
2 within 5 days after receipt of the notice of a credit, other
3 intangible property, or debt, which is in its possession, under
4 its control, or owed by it. A person or legal entity that is
5 notified and that transfers or disposes of credits or personal
6 property in violation of this section is liable to the
7 unemployment agency for the value of the property or the amount
8 of the debts thus transferred or paid, but not more than the
9 amount specified in the notice. An amount due a delinquent
10 employer, claimant, employee of the unemployment agency, or third
11 party subject to a notice to withhold shall be paid to the
12 unemployment agency upon service upon the debtor of a warrant
13 issued under this section.
14 (c) In addition to the mode of collection provided in
15 subsection (b), if, after due notice, an employer defaults in
16 payment of contributions or interest on the contributions, or a
17 claimant, employee of the unemployment agency, or third party
18 defaults in the payment of a penalty or interest on a penalty,
19 the unemployment agency may bring an action at law in a court of
20 competent jurisdiction to collect and recover the amount of a
21 contribution, and any interest on the contribution, or the
22 penalty or interest on the penalty, and in addition 10% of the
23 amount of contributions or penalties found to be due, as damages.
24 An employer, claimant, employee of the unemployment agency, or
25 third party adjudged in default shall pay costs of the action. An
26 action by the unemployment agency against a claimant, employee of
27 the unemployment agency, or third party under this subsection
1 shall be brought only to recover penalties and interest on those
2 penalties for violations of section 54(a) or (b) or sections 54a
3 to 54c. Civil actions brought under this section shall be heard
4 by the court at the earliest possible date. If a judgment is
5 obtained against an employer for contributions and an execution
6 on that judgment is returned unsatisfied, the employer may be
7 enjoined from operating and doing business in this state until
8 the judgment is satisfied. The circuit court of the county in
9 which the judgment is docketed or the circuit court for the
10 county of Ingham may grant an injunction upon the petition of the
11 unemployment agency. A copy of the petition for injunction and a
12 notice of when and where the court shall act on the petition
13 shall be served on the employer at least 21 days before the court
14 may grant the injunction.
15 (d) An employer or employing unit improperly charged or
16 assessed contributions provided for under this act, or a
17 claimant, employee of the unemployment agency, or third party
18 improperly assessed a penalty under this act and who paid the
19 contributions or penalty under protest within 30 days after the
20 mailing of the notice of determination of assessment, may recover
21 the amount improperly collected or paid, together with interest,
22 in any proper action against the unemployment agency. The circuit
23 court of the county in which the employer or employing unit or
24 claimant, employee of the unemployment agency, or third party
25 resides, or, in the case of an employer or employing unit, in
26 which is located the principal office or place of business of the
27 employer or employing unit, has original jurisdiction of an
1 action to recover contributions improperly paid or collected or a
2 penalty improperly assessed whether or not the charge or
3 assessment has been reviewed by the unemployment agency or heard
4 or reviewed by a referee an administrative law judge or
the
5 appeal board Michigan
compensation appellate commission. The
6 court has no jurisdiction of the action unless written notice of
7 claim is given to the unemployment agency at least 30 days before
8 the institution of the action. In an action to recover
9 contributions paid or collected or penalties assessed, the court
10 shall allow costs it considers proper. Either party to the action
11 has the right of appeal as is now provided by law in other civil
12 actions. An action by a claimant, employee of the unemployment
13 agency, or third party against the unemployment agency under this
14 subsection shall be brought only to recover penalties and
15 interest on those penalties improperly assessed by the
16 unemployment agency under section 54(a) or (b) or sections 54a to
17 54c. If a final judgment is rendered in favor of the plaintiff in
18 an action to recover the amount of contributions illegally
19 collected or charged, the treasurer of the unemployment agency,
20 upon receipt of a certified copy of the final judgment, shall pay
21 the amount of contributions illegally collected or charged or
22 penalties assessed from the clearing account, and pay interest as
23 allowed by the court, in an amount not to exceed the actual
24 earnings of the contributions as found to have been illegally
25 collected or charged, from the contingent fund.
26 (e) Except for liens and encumbrances recorded before the
27 filing of the notice provided for in this section, all
1 contributions, interest, and penalties payable under this act to
2 the unemployment agency from an employer, claimant, employee of
3 the unemployment agency, or third party that neglects to pay the
4 same when due are a first and prior lien upon all property and
5 rights to property, real and personal, belonging to the employer,
6 claimant, employee of the unemployment agency, or third party.
7 The lien continues until the liability for that amount or a
8 judgment arising out of the liability is satisfied or becomes
9 unenforceable by reason of lapse of time. The lien attaches to
10 the property and rights to property of the employer, claimant,
11 employee of the unemployment agency, or third party, whether real
12 or personal, from and after the required filing date of the
13 report upon which the specific tax is computed. Notice of the
14 lien shall be recorded in the office of the register of deeds of
15 the county in which the property subject to the lien is situated,
16 and the register of deeds shall receive the notice for recording.
17 Notice of the lien may also be filed with the secretary of state
18 in accordance with the state tax lien registration act, 1968 PA
19 203, MCL 211.681 to 211.687. This subsection applies only to
20 penalties and interest on those penalties assessed by the
21 unemployment agency against a claimant, employee of the
22 unemployment agency, or third party for violations of section
23 54(a) or (b) or sections 54a to 54c.
24 If there is a distribution of an employer's assets pursuant
25 to an order of a court under the laws of this state, including a
26 receivership, assignment for benefit of creditors, adjudicated
27 insolvency, composition, or similar proceedings, contributions
1 then or thereafter due shall be paid in full before all other
2 claims except for wages and compensation under the worker's
3 disability compensation act of 1969, 1969 PA 317, MCL 418.101 to
4 418.941. In the distribution of estates of decedents, claims for
5 funeral expenses and expenses of last sickness shall also be
6 entitled to priority.
7 (f) An injunction shall not issue to stay proceedings for
8 assessment or collection of contributions, or interest or penalty
9 on contributions, levied and required by this act.
10 (g) A person or employing unit , that acquires the
11 organization, trade, business, or 75% or more of the assets from
12 an employing unit, as a successor described in section 41(2), is
13 liable for contributions and interest due to the unemployment
14 agency from the transferor at the time of the acquisition in an
15 amount not to exceed the reasonable value of the organization,
16 trade, business, or assets acquired, less the amount of a secured
17 interest in the assets owned by the transferee that are entitled
18 to priority. The transferor or transferee who has, not less than
19 10 days before the acquisition, requested from the unemployment
20 agency in writing a statement certifying the status of
21 contribution liability of the transferor shall be provided with
22 that statement and the transferee is not liable for any amount
23 due from the transferor in excess of the amount of liability
24 computed as prescribed in this subsection and certified by the
25 unemployment agency. At least 2 calendar days not including a
26 Saturday, Sunday, or legal holiday before the acceptance of an
27 offer, the transferor, or the transferor's real estate broker or
1 other agent representing the transferor, shall disclose to the
2 transferee on a form provided by the unemployment agency, the
3 amounts of the transferor's outstanding unemployment tax
4 liability, unreported unemployment tax liability, and the tax
5 payments, tax rates, and cumulative benefit charges for the most
6 recent 5 years, a listing of all individuals currently employed
7 by the transferor, and a listing of all employees separated from
8 employment with the transferor in the most recent 12 months. This
9 form shall specify any other information the unemployment agency
10 determines is required for a transferee to estimate future
11 unemployment compensation costs based on the transferor's benefit
12 charge and unemployment tax reporting and payment experience.
13 Failure of the transferor, or the transferor's real estate broker
14 or other agent representing the transferor, to provide accurate
15 information required by this subsection is a misdemeanor
16 punishable by imprisonment for not more than 90 days, or a fine
17 of not more than $2,500.00, or both. In addition, the transferor,
18 or the transferor's real estate broker or other agent
19 representing the transferor, is liable to the transferee for any
20 consequential damages resulting from the failure to comply with
21 this subsection. However, the real estate broker or other agent
22 is not liable for consequential damages if he or she exercised
23 good faith in compliance with the disclosure of information. The
24 remedy provided the transferee is not exclusive, and does not
25 reduce any other right or remedy against any party provided for
26 in this or any other act. Nothing in this subsection decreases
27 the liability of the transferee as a successor in interest, or
1 prevents the transfer of a rating account balance as provided in
2 this act. The foregoing provisions are in addition to the
3 remedies the unemployment agency has against the transferor.
4 (h) If a part of a deficiency in payment of the employer's
5 contribution to the fund is due to negligence or intentional
6 disregard of unemployment agency rules, but without intention to
7 defraud, 5% of the total amount of the deficiency, in addition to
8 the deficiency and all other interest charges and penalties
9 provided herein, shall be assessed, collected, and paid in the
10 same manner as a deficiency. If a part of a deficiency is
11 determined in an action at law to be due to fraud with intent to
12 avoid payment of contributions to the fund, then the judgment
13 rendered shall include an amount equal to 50% of the total amount
14 of the deficiency, in addition to the deficiency and all other
15 interest charges and penalties provided herein.
16 (i) If an employing unit fails to make a report as
17 reasonably required by the rules of the unemployment agency
18 pursuant to this act, the unemployment agency may estimate the
19 liability of that employing unit from information it obtains and,
20 according to that estimate, assess the employing unit for the
21 contributions, penalties, and interest due. The unemployment
22 agency may act under this subsection only after a default
23 continues for 30 days and after the unemployment agency has
24 determined that the default of the employing unit is willful.
25 (j) An assessment or penalty with respect to contributions
26 unpaid is not effective for any period before the 3 calendar
27 years preceding the date of the assessment.
1 (k) The rights respecting the collection of contributions
2 and the levy of interest and penalties and damages made available
3 to the unemployment agency by this section are additional to
4 other powers and rights vested in the unemployment agency under
5 other provisions of this act. The unemployment agency may
6 exercise any of the collection remedies under this act even
7 though an application for a redetermination or an appeal is
8 pending final disposition.
9 (l) A person recording a lien under this section shall pay a
10 fee of $2.00 for recording a lien and a fee of $2.00 for
11 recording a discharge of a lien.
12 (m) In addition to the restitution recoupment methods in
13 section 62, the unemployment agency may obtain restitution due
14 from a claimant as a result of a benefit overpayment that has
15 become final by any of the following methods:
16 (1) Levy of a bank account belonging to the claimant.
17 (2) Entry into a wage assignment with the claimant.
18 (3) Issuing an administrative garnishment of the wages of
19 the claimant.
20 (n) To obtain an administrative garnishment, the
21 unemployment agency shall notify the claimant of both of the
22 following: the intention to issue an administrative garnishment
23 on the claimant's employer and the amount determined to be due
24 from the claimant. The notice shall include a demand for
25 immediate payment of the amount due, a statement that it is not
26 subject to appeal, and a statement that the claimant may, within
27 30 days of the issuance of the notice, object to the garnishment
1 by providing information to the agency, with supporting
2 documentation, that the claimant does not owe the stated amount
3 of restitution. Not less than 30 days after issuing the notice to
4 the claimant, the unemployment agency shall notify the claimant's
5 employer to withhold from earnings due or to become due from the
6 claimant the amount shown on the notice plus accrued interest.
7 The employer shall comply with the notice to withhold and shall
8 continue to withhold each pay period the amount shown on the
9 notice plus accrued interest until the garnishment amount plus
10 accrued interest has been satisfied and the notice is released by
11 the unemployment agency. The unemployment agency's administrative
12 garnishment has priority over any subsequent garnishment or wage
13 assignment. The amount subject to garnishment for any pay period
14 shall be decreased by any other irrevocable and previously
15 effective assignment of wages or other garnishment action served
16 on the employer before service of the agency's garnishment
17 notice. The amount of the agency's garnishment shall not exceed
18 25% of the balance. In response to the administrative
19 garnishment, the employer shall do all of the following:
20 (1) Within 10 calendar days of the date of the agency's
21 notice to withhold wages, notify the agency of the amount of any
22 irrevocable and previously effective assignment of wages or
23 garnishment actions.
24 (2) Within 10 days after the end of each pay period in which
25 wages are required to be withheld under the administrative
26 garnishment, remit to the agency the amount withheld pursuant to
27 the administrative garnishment.
1 (3) Within 10 days after the date on which the claimant
2 ceases to be employed by the employer, notify the agency.
3 (o) Before payment of a prize of $1,000.00 or more under the
4 McCauley-Traxler-Law-Bowman-McNeeley lottery act, 1972 PA 239,
5 MCL 432.1 to 432.47, the bureau of state lottery shall determine
6 whether a lottery prize winner has a current liability for
7 restitution of unemployment benefits, penalty, or interest,
8 assessed by the unemployment insurance agency and the amount of
9 the prize owing to the unemployment insurance agency and shall
10 remit that amount to the unemployment insurance agency.
11 Sec. 15a. (1) The unemployment agency shall not collect
12 interest on a contribution obligation that an employer pays
13 through apportioned quarterly payments, if the employer meets the
14 requirements of section 13(3) and has remitted the following
15 amounts or more each quarter by the date established for each
16 quarterly filing:
17 (a) First quarter - 25% of the total obligation incurred in
18 the first quarter.
19 (b) Second quarter - the obligation incurred in the second
20 quarter plus 25% of the total obligation for the first quarter.
21 (c) Third quarter - the obligation incurred in the third
22 quarter plus 25% of the total obligation for the first quarter.
23 (d) Fourth quarter - the obligation incurred in the fourth
24 quarter plus 25% of the total obligation for the first quarter.
25 (2) If an employer fails in any quarter to pay in full, by
26 the due date of the tax payment for that quarter, the percentage
27 of the tax deferred from the first quarter as described in
1 subsection (1), the unemployment agency may collect interest at
2 the rate specified in section 15 on the amount of the deferred
3 tax that is due in that quarter and unpaid.
4 Sec. 17. (1) The bureau unemployment agency shall
maintain
5 in the unemployment compensation fund a nonchargeable benefits
6 account and a separate experience account for each employer as
7 provided in this section. This act does not give an employer or
8 individuals in the employer's service prior claims or rights to
9 the amount paid by the employer to the unemployment compensation
10 fund. All contributions to that fund shall be pooled and
11 available to pay benefits to any individual entitled to the
12 benefits under this act, irrespective of the source of the
13 contributions.
14 (2) The nonchargeable benefits account shall be credited
15 with the following:
16 (a) All net earnings received on money, property, or
17 securities in the fund.
18 (b) Any positive balance remaining in the employer's
19 experience account as of the second June 30 computation date
20 occurring after the employer has ceased to be subject to this act
21 or after the employer has elected to change from a contributing
22 employer to a reimbursing employer.
23 (c) The proceeds of the nonchargeable benefits component of
24 employers' contribution rates determined as provided in section
25 19(a)(5).
26 (d) All reimbursements received under section 11(c).
27 (e) All amounts that may be paid or advanced by the federal
1 government under section 903 or section 1201 of the social
2 security act, 42 USC 1103 and 1321, to the account of the state
3 in the federal unemployment trust fund.
4 (f) All benefits improperly paid to claimants that have been
5 recovered and that were previously charged to an employer's
6 account.
7 (g) Any benefits forfeited by an individual by application
8 of section 62(b).
9 (h) The amount of any benefit check, any employer refund
10 check, or any claimant restitution refund check, or other payment
11 duly issued that has not been presented for payment within 1 year
12 after the date of issue.
13 (i) Any other unemployment fund income not creditable to the
14 experience account of any employer.
15 (j) Any negative balance transferred to an employer's new
16 experience account pursuant to this section.
17 (k) Amounts transferred from the contingent fund under
18 section 10.
19 (3) The nonchargeable benefits account shall be charged with
20 the following:
21 (a) Any negative balance remaining in an employer's
22 experience account as of the second June 30 computation date
23 occurring after the employer has ceased to be subject to this act
24 or has elected to change from a contributing employer to a
25 reimbursing employer.
26 (b) Refunds of amounts erroneously collected due to the
27 nonchargeable benefits component of an employer's contribution
1 rate.
2 (c) All training benefits paid under section 27(g) not
3 reimbursable by the federal government and based on service with
4 a contributing employer.
5 (d) Any positive balance credited or transferred to an
6 employer's new experience account under this subsection.
7 (e) Repayments to the federal government of amounts advanced
8 by it under section 1201 of the social security act, 42 USC 1321,
9 to the unemployment compensation fund established by this act.
10 (f) The amounts received by the unemployment compensation
11 fund under section 903 of the social security act, 42 USC 1103,
12 that may be appropriated to the bureau unemployment agency in
13 accordance with subsection (8).
14 (g) All benefits determined to have been improperly paid to
15 claimants that have been credited to employers' accounts in
16 accordance with section 20(a).
17 (h) The amount of any substitute check or other payment
18 issued to replace an uncashed benefit check, employer refund
19 check, or claimant restitution refund check, or other payment
20 previously credited to this account.
21 (i) The amount of any benefit check or other payment issued
22 that would be chargeable to the experience account of an employer
23 who has ceased to be subject to this act, and who has had a
24 balance transferred from the employer's experience account to the
25 solvency or nonchargeable benefits account.
26 (j) All benefits that become nonchargeable to an employer
27 under section 29(3) or section 19(b) or (c) or section
1 29(1)(a)(ii) or (iii) or (3).
2 (k) For benefit years beginning before October 1, 2000, with
3 benefits allocated under section 20(e)(2) for a week of
4 unemployment in which a claimant earns remuneration with a
5 contributing employer that equals or exceeds the amount of
6 benefits allocated to that contributing employer, and for benefit
7 years beginning on or after October 1, 2000, with benefits
8 allocated under section 20(e)(3) 20(f) for a week of
unemployment
9 in which a claimant earns remuneration with a contributing
10 employer that equals or exceeds the amount of benefits allocated
11 to that contributing employer.
12 (l) Benefits that are nonchargeable to an employer's account
13 in accordance with section 20(i) or (j).
14 (m) Benefits otherwise chargeable to the account of an
15 employer when the benefits are payable solely on the basis of
16 combining wages paid by a Michigan employer with wages paid by a
17 non-Michigan employer under the interstate arrangement for
18 combining employment and wages under 20 CFR 616.1 to 616.11.
19 (4) All contributions paid by an employer shall be credited
20 to the unemployment compensation fund, and, except as otherwise
21 provided with respect to the proceeds of the nonchargeable
22 benefits component of employers' contribution rates by section
23 19(a)(5), to the employer's experience account, as of the date
24 when paid. However, those contributions paid during any July
25 shall be credited as of the immediately preceding June 30.
26 Additional contributions paid by an employer as the result of a
27 retroactive contribution rate adjustment, solely for the purpose
1 of this subsection, shall be credited to the employer's
2 experience account as if paid when due, if the payment is
3 received within 30 days after the issuance of the initial
4 assessment that results from the contribution rate adjustment and
5 a written request for the application is filed by the employer
6 during this period.
7 (5) If an employer who has ceased to be subject to this act,
8 and who has had a positive or negative balance transferred as
9 provided in subsection (2) or (3) from the employer's experience
10 account to the solvency or nonchargeable benefits account as of
11 the second computation date after the employer has ceased to be
12 subject to this act, becomes subject to this act again within 6
13 years after that computation date, the employer may apply, within
14 60 days after the bureau's determination that the employer is
15 again subject to this act, to the bureau to have the unemployment
16 agency shall transfer the positive or negative balance, adjusted
17 by the debits and credits as have been made subsequent to that
18
are made after the date of transfer, credited
to the employer's
19 new experience account. If the application is timely, the bureau
20 shall credit the positive balance to the employer's new
21 experience account.
22 (6) If an employer's status as a reimbursing employer is
23 terminated within 6 years after the date the employer's
24 experience account as a prior contributing employer was
25 transferred to the solvency or nonchargeable benefits account as
26 provided in subsection (2) or (3) and the employer continues to
27 be subject to this act as a contributing employer, any positive
1 or negative balance in the employer's experience account as a
2 prior contributing employer, which was transferred to the
3 solvency or nonchargeable benefits account, shall be transferred
4 to the employer's new experience account. However, an employer
5 who is delinquent with respect to any reimbursement payments in
6 lieu of contributions for which the employer may be liable shall
7 not have a positive balance transferred during the delinquency.
8 (7) If a balance is transferred to an employer's new account
9 under subsection (5) or (6), the employer shall not be considered
10 a "qualified employer" until the employer has again been subject
11 to this act for the period set forth in section 19(a)(1).
12 (8) All money credited under section 903 of the social
13 security act, 42 USC 1103, to the account of the state in the
14 federal unemployment trust fund shall immediately be credited by
15 the bureau unemployment
agency to the fund's nonchargeable
16 benefits account. There is authorized to be appropriated to the
17 bureau unemployment
agency from the money credited to the
18 nonchargeable benefits account under this subsection, an amount
19 determined to be necessary for the proper and efficient
20 administration by the bureau unemployment agency of this
act for
21 purposes for which federal grants under Title title 3
of the
22 social security act, 42 USC 501 to 504, and the Wagner-Peyser
23 act, 29 USC 49 to 49l-2, are not available or are insufficient.
24 The appropriation shall expire not more than 2 years after the
25 date of enactment and shall provide that any unexpended balance
26 shall then be credited to the nonchargeable benefits account. An
27 appropriation shall not be made under this subsection for an
1 amount that exceeds the "adjusted balance" of the nonchargeable
2 benefits account on the most recent computation date.
3 Appropriations made under this subsection shall limit the total
4 amount that may be obligated by the bureau unemployment agency
5 during a fiscal year to an amount that does not exceed the amount
6 by which the aggregate of the amounts credited to the
7 nonchargeable benefits account under this subsection during the
8 fiscal year and the 24 preceding fiscal years, exceeds the
9 aggregate of the amounts obligated by the bureau unemployment
10 agency by appropriation under this subsection and charged against
11 the amounts thus credited to the nonchargeable benefits account
12 during any of the 25 fiscal years and any amounts credited to the
13 nonchargeable benefits account that have been used for the
14 payment of benefits.
15 Sec. 19. (a) The commission shall determine the contribution
16 rate of each contributing employer for each calendar year after
17 1977 as follows:
18 (1)(i) Except as provided in paragraph (ii), an employer's
19 rate shall be calculated as described in table A, A-1, or A-2
20 with respect to wages paid by the employer in each calendar year
21 for employment. If an employer's coverage is terminated under
22 section 24, or at the conclusion of 8 12 or
more consecutive
23 calendar quarters during which the employer has not had workers
24 in covered employment, and if the employer again becomes liable
25 for contributions, the employer shall be considered as newly
26 liable for contributions for the purposes of table A or table B
27 of the tables in this subsection. An employer that becomes liable
1 under section 41(2) will not be assigned the new employer rate
2 but instead the employer's most recent prior rate as a
3 predecessor employer will be assigned to its new account.
4 (ii) To provide against the high risk of net loss to the fund
5 in such cases, an employing unit that becomes newly liable for
6 contributions under this act in a calendar year beginning on or
7 after January 1, 1983 in which it employs in "employment", not
8 necessarily simultaneously but in any 1 week 2 or more
9 individuals in the performance of 1 or more contracts or
10 subcontracts for construction in the state of roads, bridges,
11 highways, sewers, water mains, utilities, public buildings,
12 factories, housing developments, or similar construction
13 projects, shall be liable for contributions to that employer's
14 account under this act for the first 4 years of operations in
15 this state at a rate equal to the average rate paid by employers
16 engaged in the construction business as determined by contractor
17 type in the manner provided in table B, B-1, or B-2.
18 For an employer that was a contributing employer before
19 January 1, 2012 and did not convert from a reimbursing to a
20 contributing employer on or after January 1, 2012, the following
21 tables apply:
|
22 |
________________________________________________________________ |
|
23 |
Table A |
|
24 |
________________________________________________________________ |
|
25 |
Year of Contribution Contribution Rate |
|
26 |
Liability |
|
27 |
________________________________________________________________ |
|
28 |
1 2.7% |
|
1 |
2 2.7% |
|
2 |
3 1/3 (chargeable benefits |
|
3 |
component) + 1.8% |
|
4 |
4 2/3 (chargeable benefits |
|
5 |
component) + 1.0% |
|
6 |
5 and over (chargeable benefits component) + |
|
7 |
(account building component) + |
|
8 |
(nonchargeable benefits component) |
|
9 |
________________________________________________________________ |
|
10 |
Table B |
|
11 |
________________________________________________________________ |
|
12 |
Year of Contribution Contribution Rate |
|
13 |
Liability |
|
14 |
________________________________________________________________ |
|
15 |
1 average construction contractor |
|
16 |
rate as determined by the |
|
17 |
commission |
|
18 |
2 average construction contractor |
|
19 |
rate as determined by the |
|
20 |
commission |
|
21 |
3 1/3 (chargeable benefits component) |
|
22 |
+ 2/3 average construction con- |
|
23 |
tractor rate as determined by the |
|
24 |
commission |
|
25 |
4 2/3 (chargeable benefits component) |
|
26 |
+ 1/3 average construction con- |
|
27 |
tractor rate as determined by the |
|
28 |
commission |
|
29 |
5 and over (chargeable benefits component) + |
|
30 |
(account building component) + |
|
31 |
(nonchargeable benefits component) |
32 For an employer that becomes a contributing employer on or
1 after January 1, 2012 and before January 1, 2013, the following
2 tables apply:
|
3 |
________________________________________________________________ |
|
4 |
Table A-1 |
|
5 |
________________________________________________________________ |
|
6 |
Year of Contribution Contribution Rate |
|
7 |
Liability |
|
8 |
________________________________________________________________ |
|
9 |
1 2.7% |
|
10 |
2 2.7% + 1/3 (chargeable benefits |
|
11 |
component) |
|
12 |
3 2.7% + 2/3 (chargeable benefits |
|
13 |
component) |
|
14 |
4 and over (chargeable benefits component) + |
|
15 |
(account building component) + |
|
16 |
(nonchargeable benefits component) |
|
17 |
________________________________________________________________ |
|
18 |
Table B-1 |
|
19 |
________________________________________________________________ |
|
20 |
Year of Contribution Contribution Rate |
|
21 |
Liability |
|
22 |
________________________________________________________________ |
|
23 |
1 average construction contractor |
|
24 |
rate as determined by the |
|
25 |
commission |
|
26 |
2 average construction contractor |
|
27 |
rate as determined by the |
|
28 |
commission + 1/3 (chargeable |
|
29 |
benefits component) |
|
30 |
3 average construction contractor |
|
31 |
rate as determined by the |
|
32 |
commission + 2/3 (chargeable |
|
1 |
benefits component) |
|
2 |
4 and over (chargeable benefits component) + |
|
3 |
(account building component) + |
|
4 |
(nonchargeable benefits component) |
5 For an employer that becomes a contributing employer on or
6 after January 1, 2013, the following tables apply:
|
7 |
________________________________________________________________ |
|
8 |
Table A-2 |
|
9 |
________________________________________________________________ |
|
10 |
Year of Contribution Contribution Rate |
|
11 |
Liability |
|
12 |
________________________________________________________________ |
|
13 |
1 2.7% + 1/3 (chargeable benefits |
|
14 |
component) |
|
15 |
2 2.7% + 2/3 (chargeable benefits |
|
16 |
component) |
|
17 |
3 and over (chargeable benefits component) + |
|
18 |
(account building component) + |
|
19 |
(nonchargeable benefits component) |
|
20 |
________________________________________________________________ |
|
21 |
Table B-2 |
|
22 |
________________________________________________________________ |
|
23 |
Year of Contribution Contribution Rate |
|
24 |
Liability |
|
25 |
________________________________________________________________ |
|
26 |
1 average construction contractor |
|
27 |
rate as determined by the |
|
28 |
commission + 1/3 (chargeable |
|
29 |
benefits component) |
|
30 |
2 average construction contractor |
|
31 |
rate as determined by the |
|
32 |
commission + 2/3 (chargeable |
|
1 |
benefits component) |
|
2 |
3 and over (chargeable benefits component) + |
|
3 |
(account building component) + |
|
4 |
(nonchargeable benefits component) |
5 (2) With the exception of employers who are in the first 4
6 consecutive years of liability, each employer's contribution rate
7 shall be the sum of the following components, all of which are
8 determined as of the computation date: a chargeable benefits
9 component determined under subdivision (3), an account building
10 component determined under subdivision (4), and a nonchargeable
11 benefits component determined under subdivision (5).
12 (3)(i) The For calendar years beginning before January 1,
13 2012, the chargeable benefits component of an employer's
14 contribution rate is the percentage determined by dividing: the
15 total amount of benefits charged to the employer's experience
16 account within the lesser of 60 consecutive months ending on the
17 computation date or the number of consecutive months ending on
18 the computation date with respect to which the employer has been
19 continuously liable for contributions; by the amount of wages,
20 subject to contributions, paid by the employer within the same
21 period. If the resulting quotient is not an exact multiple of
22 1/10 of 1%, it shall be increased to the next higher multiple of
23 1/10 of 1%. For the calendar year 2012, the chargeable benefits
24 component of an employer's contribution rate is the percentage
25 determined by dividing: the total amount of benefits charged to
26 the employer's experience account within the lesser of 48
27 consecutive months ending on the computation date or the number
1 of consecutive months ending on the computation date with respect
2 to which the employer has been continuously liable for
3 contributions; by the amount of wages, subject to contributions,
4 paid by the employer within the same period. If the resulting
5 quotient is not an exact multiple of 1/10 of 1%, it shall be
6 increased to the next higher multiple of 1/10 of 1%. For each
7 calendar year beginning on or after January 1, 2013, the
8 chargeable benefits component of an employer's contribution rate
9 is the percentage determined by dividing: the total amount of
10 benefits charged to the employer's experience account within the
11 lesser of 36 consecutive months ending on the computation date or
12 the number of consecutive months ending on the computation date
13 with respect to which the employer has been continuously liable
14 for contributions; by the amount of wages, subject to
15 contributions, paid by the employer within the same period. If
16 the resulting quotient is not an exact multiple of 1/10 of 1%, it
17 shall be increased to the next higher multiple of 1/10 of 1%.
18 (ii) For benefit years established before October 1, 2000,
19 the chargeable benefits component shall not exceed 6.0%, unless
20 there is a statutory change in the maximum duration of regular
21 benefit payments or the statutory ratio of regular benefit
22 payments to credit weeks. In the event of a change in the maximum
23 duration of regular benefit payments, the maximum chargeable
24 benefits component shall increase by the same percentage as the
25 statutory percentage change in the duration of regular benefit
26 payments between computation dates. In the event of an increase
27 in the statutory ratio of regular benefit payments to credit
1 weeks, as described in section 27(d), the maximum chargeable
2 benefits component determined as of the computation dates
3 occurring after the effective date of the increased ratio shall
4 increase by 1/2 the same percentage as the increase in the ratio
5 of regular benefit payments to credit weeks. If the resulting
6 increase is not already an exact multiple of 1/10 of 1%, it shall
7 be adjusted to the next higher multiple of 1/10 of 1%. For
8 benefit years established after October 1, 2000, the chargeable
9 benefits component shall not exceed 6.0%, unless there is a
10 statutory change in the maximum duration of regular benefit
11 payments or the percentage factor of base period wages, which
12 defines maximum duration, as provided in section 27(d). If there
13 is a statutory change in the maximum duration of regular benefit
14 payments, the maximum chargeable benefits component shall
15 increase by the same percentage as the statutory percentage
16 change in the duration of regular benefit payments between
17 computation dates. If there is an increase in the statutory
18 percentage factor of base period wages, as described in section
19 27(d), the maximum chargeable benefits component determined as of
20 the computation dates occurring after the effective date of the
21 increased ratio shall increase by 1/2 the same percentage as the
22 increase in the percentage factor of base period wages. If the
23 resulting increase is not already an exact multiple of 1/10 of
24 1%, it shall be adjusted to the next higher multiple of 1/10 of
25 1%.
26 (4) The account building component of an employer's
27 contribution rate is the percentage arrived at by the following
1 calculations: (i) Multiply the amount of the employer's total
2 payroll for the 12 months ending on the computation date, by the
3 cost criterion; (ii) Subtract the amount of the balance in the
4 employer's experience account as of the computation date from the
5 product determined under (i); and (iii) if the remainder is zero or
6 a negative quantity, the account building component of the
7 employer's contribution rate shall be zero; but (iv) if the
8 remainder is a positive quantity, the account building component
9 of the employer's contribution rate shall be determined by
10 dividing that remainder by the employer's total payroll paid
11 within the 12 months ending on the computation date. The account
12 building component shall not exceed the lesser of 1/4 of the
13 percentage calculated or 2%. However, except as otherwise
14 provided in this subdivision, the account building component
15 shall not exceed the lesser of 1/2 of the percentage calculated
16 or 3%, if on the June 30 of the preceding calendar year the
17 balance in the unemployment compensation fund was less than 50%
18 of an amount equal to the aggregate of all contributing
19 employers' annual payrolls, for the 12 months ending March 31,
20 times the cost criterion. For calendar years after 1993 and
21 before 1996, the account building component shall not exceed the
22 lesser of .69 of the percentage calculated, or 3%, if on the June
23 30 of the preceding calendar year the balance in the unemployment
24 compensation fund was less than 50% of an amount equal to the
25 aggregate of all contributing employers' annual payrolls, for the
26 12 months ending March 31, as defined in section 18(f), times the
27 cost criterion; selected for the computation date under section
1 18(e). If the account building component determined under this
2 subdivision is not an exact multiple of 1/10 of 1%, it shall be
3 adjusted to the next higher multiple of 1/10 of 1%.
4 (5) The nonchargeable benefits component of employers'
5 contribution rates is the percentage arrived at by the following
6 calculations: (i) multiply the aggregate amount of all
7 contributing employers' annual payrolls, for the 12 months ending
8 March 31, as defined in section 18(f), by the cost criterion
9 selected for the computation date under section 18(e); (ii)
10 subtract the balance of the unemployment fund on the computation
11 date, net of federal advances, from the product determined under
12 (i); and (iii) if the remainder is zero or a negative quantity, the
13 nonchargeable benefits component of employers' contribution rates
14 shall be zero; but (iv) if the remainder is a positive quantity,
15 the nonchargeable benefits component of employers' contribution
16 rates shall be determined by dividing that remainder by the total
17 of wages subject to contributions under this act paid by all
18 contributing employers within the 12 months ending on March 31
19 and adjusting the quotient, if not an exact multiple of 1/10 of
20 1%, to the next higher multiple of 1/10 of 1%. The maximum
21 nonchargeable benefits component shall be 1%. However, for
22 calendar years after 1993, if there are no benefit charges
23 against an employer's account for the 60 months ending as of the
24 computation date, or for calendar years after 1995, if the
25 employer's chargeable benefits component is less than 2/10 of 1%,
26 the maximum nonchargeable benefit component shall not exceed 1/2
27 of 1%. For calendar years after 1995, if there are no benefit
1 charges against an employer's account for the 72 months ending as
2 of the computation date, the maximum nonchargeable benefits
3 component shall not exceed 4/10 of 1%. For calendar years after
4 1996, if there are no benefit charges against an employer's
5 account for the 84 months ending as of the computation date, the
6 maximum nonchargeable benefits component shall not exceed 3/10 of
7 1%. For calendar years after 1997, if there are no benefit
8 charges against an employer's account for the 96 months ending as
9 of the computation date, the maximum nonchargeable benefits
10 component shall not exceed 2/10 of 1%. For calendar years after
11 1998, if there are no benefit charges against an employer's
12 account for the 108 months ending as of the computation date, the
13 maximum nonchargeable benefits component shall not exceed 1/10 of
14 1%. For calendar years after 2002, the maximum nonchargeable
15 benefits component shall not exceed 1/10 of 1% if there are no
16 benefit charges against an employer's account for the 60 months
17 ending as of the computation date; 9/100 of 1% if there are no
18 benefit charges against an employer's account for the 72 months
19 ending as of the computation date; 8/100 of 1% if there are no
20 benefit charges against an employer's account for the 84 months
21 ending as of the computation date; 7/100 of 1% if there are no
22 benefit charges against an employer's account for the 96 months
23 ending as of the computation date; or 6/100 of 1% if there are no
24 benefit charges against an employer's account for the 108 months
25 ending as of the computation date. For purposes of determining a
26 nonchargeable benefits component under this subsection, an
27 employer account shall not be considered to have had a charge if
1 claim for benefits is denied or determined to be fraudulent
2 pursuant to section 54 or 54c. An employer with a positive
3 balance in its experience account on the June 30 computation date
4 preceding the calendar year shall receive for that calendar year
5 a credit in an amount equal to 1/2 of the extra federal
6 unemployment tax paid in the preceding calendar year under
7 section 3302(c)(2) of the federal unemployment tax act, 26 USC
8 3302, because of an outstanding balance of unrepaid advances from
9 the federal government to the unemployment compensation fund
10 under section 1201 of title XII of the social security act, 42
11 USC 1321. However, the credit for any calendar year shall not
12 exceed an amount determined by multiplying the employer's
13 nonchargeable benefit component for that calendar year times the
14 employer's taxable payroll for that year. Contributions paid by
15 an employer shall be credited to the employer's experience
16 account, in accordance with the provisions of section 17(5),
17 without regard to any credit given under this subsection. The
18 amount credited to an employer's experience account shall be the
19 amount of the employer's tax before deduction of the credit
20 provided in this subsection.
21 (6) The total of the chargeable benefits and account
22 building components of an employer's contribution rate shall not
23 exceed by more than 1% in the 1983 calendar year, 1.5% in the
24 calendar year 1984, or 2% in the 1985 calendar year the higher of
25 4% or the total of the chargeable benefits and the account
26 building components that applied to the employer during the
27 preceding calendar year. For calendar years after 1985, the total
1 of the chargeable benefits and account building components of the
2 employer's contribution rate shall be computed without regard to
3 the foregoing limitation provided in this subdivision. During a
4 year in which this subdivision limits an employer's contribution
5 rate, the resulting reduction shall be considered to be entirely
6 in the experience component of the employer's contribution rate,
7 as defined in section 18(d).
8 (7) Unless an employer's contribution rate is 1/10 of 1% for
9 calendar years beginning after December 31, 1995, the employer's
10 contribution rate shall be reduced by any of the following
11 calculation methods that results in the lowest rate:
12 (i) The
chargeable benefits component, the account building
13 component, and the nonchargeable benefits component of the
14 contribution rate calculated under this section shall each be
15 reduced by 10% and if the resulting quotient is not an exact
16 multiple of 1/10 of 1%, that quotient shall be increased to the
17 next higher multiple of 1/10 of 1%. The 3 components as increased
18 shall then be added together.
19 (ii)
One-tenth of 1% shall be deducted from the contribution
20 rate.
21 (iii) The
contribution rate shall be reduced by 10% and if the
22 resulting quotient is not an exact multiple of 1/10 of 1%, that
23 quotient shall be increased to the next higher multiple of 1/10
24 of 1%.
25 The contribution rate reduction described in this section
26 applies to employers who have been liable for the payment of
27 contributions in accordance with this act for more than 4
1 consecutive years, if the balance of money in the unemployment
2 compensation fund established under section 26, excluding money
3 borrowed from the federal unemployment trust fund, is equal to or
4 greater than 1.2% of the aggregate amount of all contributing
5 employers' payrolls for the 12-month period ending on the
6 computation date. If the employer's contribution rate is reduced
7 by a 1/10 of 1% deduction in accordance with this subdivision,
8 the employer's contributions shall be credited to each of the
9 components of the contribution rate on a pro rata basis. As used
10 in this subdivision:
11 (i)
"Federal unemployment trust fund" means the fund created
12 under section 904 of title IX of the social security act, 42 USC
13 1104.
14 (ii)
"Payroll" means that term as defined in section 18(f).
15 (b) An employer previously liable for contributions under
16 this act which on or after January 1, 1978 filed a petition for
17 arrangement under the bankruptcy act of July 1, 1898, chapter
18 541, 30 Stat. 544, or on or after October 1, 1979 filed a
19 petition for reorganization under title 11 of the United States
20 Code, 11 USC 101 to 1330, pursuant to which a plan of arrangement
21 or reorganization for rehabilitation purposes has been confirmed
22 by order of the United States bankruptcy court, shall be
23 considered as a reorganized employer and shall have a reserve
24 fund balance of zero as of the first calendar year immediately
25 following court confirmation of the plan of arrangement or
26 reorganization, but not earlier than the calendar year beginning
27 January 1, 1983, if the employer meets each of the following
1 requirements:
2 (1) An employer whose plan of arrangement or reorganization
3 has been confirmed as of January 1, 1983 shall, within 60 days
4 after January 1, 1983, notify the commission of its intention to
5 elect the status of a reorganized employer. An employer that has
6 not had a plan of arrangement or reorganization confirmed as of
7 January 1, 1983 shall, within 60 days after the entry by the
8 bankruptcy court of the order of confirmation of the plan of
9 arrangement or reorganization, notify the commission of its
10 intention to elect the status of a reorganized employer. An
11 employer shall not make an election under this subdivision after
12 December 31, 1985.
13 (2) The employer has paid to the commission all
14 contributions previously owed by the employer pursuant to this
15 act for all calendar years prior to the calendar year as to which
16 the employer elects to begin its status as a reorganized
17 employer.
18 (3) More than 50% of the employer's total payroll is paid
19 for services rendered in this state during the employer's fiscal
20 year immediately preceding the date the employer notifies the
21 fund administrator of its intention to elect the status of a
22 reorganized employer.
23 (4) The employer, within 180 days after notifying the
24 commission of its intention to elect the status of a reorganized
25 employer, makes a cash payment to the commission, for the
26 unemployment compensation fund, equal to: .20 times the first
27 $2,000,000.00 of the employer's negative balance, .35 times the
1 amount of the employer's negative balance above $2,000,000.00 and
2 up to $5,000,000.00, and .50 times the amount of the negative
3 balance above $5,000,000.00. The total amount determined by the
4 commission shall be based on the employer's negative balance
5 existing as of the end of the calendar month immediately
6 preceding the calendar year in which the employer will begin its
7 status as a reorganized employer. If the employer fails to pay
8 the amount determined, within 180 days of electing status as a
9 reorganized employer, the commission shall reinstate the
10 employer's negative balance previously reduced and redetermine
11 the employer's rate on the basis of the reinstated negative
12 balance. The redetermined rate shall then be used to redetermine
13 the employer's quarterly contributions for that calendar year.
14 The redetermined contributions shall be subject to the interest
15 provisions of section 15 as of the date the redetermined
16 quarterly contributions were originally due.
17 (5) Except as provided in subdivision (6), the employer
18 contribution rates for a reorganized employer beginning with the
19 first calendar year of the employer's status as a reorganized
20 employer shall be as follows:
|
21 |
________________________________________________________________ |
|
22 |
Year of Contribution Contribution Rate |
|
23 |
Liability |
|
24 |
________________________________________________________________ |
|
25 |
1 2.7% of total taxable wages paid |
|
26 |
2 2.7% |
|
27 |
3 2.7% |
|
1 |
4 and over (chargeable benefits component |
|
2 |
based upon 3-year experience) plus |
|
3 |
(account building component based |
|
4 |
upon 3-year experience) plus |
|
5 |
(nonchargeable benefits component) |
6 (6) To provide against the high risk of net loss to the fund
7 in such cases, any reorganized employer that employs in
8 "employment", not necessarily simultaneously but in any 1 week 25
9 or more individuals in the performance of 1 or more contracts or
10 subcontracts for construction in the state of roads, bridges,
11 highways, sewers, water mains, utilities, public buildings,
12 factories, housing developments, or similar major construction
13 projects, shall be liable beginning the first calendar year of
14 the employer's status as a reorganized employer for contribution
15 rates as follows:
|
16 |
________________________________________________________________ |
|
17 |
Year of Contribution Contribution Rate |
|
18 |
Liability |
|
19 |
________________________________________________________________ |
|
20 |
1 average construction contractor |
|
21 |
rate as determined by the |
|
22 |
commission |
|
23 |
2 average construction contractor |
|
24 |
rate as determined by the |
|
25 |
commission |
|
26 |
3 1/3 (chargeable benefits component) |
|
27 |
+ 2/3 average construction con- |
|
28 |
tractor rate as determined by the |
|
29 |
commission |
|
1 |
4 2/3 (chargeable benefits component) |
|
2 |
+ 1/3 average construction con- |
|
3 |
tractor rate as determined by the |
|
4 |
commission |
|
5 |
5 and over (chargeable benefits component) + |
|
6 |
(account building component) + |
|
7 |
(nonchargeable benefits component) |
8 (c) Upon application by an employer to the commission for
9 designation as a distressed employer, the commission, within 60
10 days after receipt of the application, shall make a determination
11 whether the employer meets the conditions set forth in this
12 subsection. Upon finding that the conditions are met, the
13 commission shall notify the legislature of the determination and
14 request legislative acquiescence in the determination. If the
15 legislature approves the determination by concurrent resolution,
16 the employer shall be considered to be a "distressed employer" as
17 of January 1 of the year in which the determination is made. The
18 commission shall notify the employer of that determination and
19 notify the employer of its contribution rate as a distressed
20 employer and the contribution rate that would apply if the
21 employer was not a distressed employer. The distressed employer
22 shall determine its tax contribution using the 2 rates furnished
23 by the commission and shall pay its tax contribution based on the
24 lower of the 2 rates. If the determination of distressed employer
25 status is made during the calendar year, the employer shall be
26 entitled to a credit on future quarterly installments for any
27 excess contributions paid during that initial calendar year. The
1 employer shall notify the commission of the difference between
2 the amount paid and the amount that would have been paid if the
3 employer were not determined to be a distressed employer and the
4 difference will be owed to the unemployment compensation fund,
5 payable in accordance with this subsection. Cumulative totals of
6 the difference must be reported to the commission with each
7 return required to be filed. The commission may periodically
8 determine continued eligibility of an employer under this
9 subsection. When the commission makes a determination that an
10 employer no longer qualifies as a distressed employer, the
11 commission shall notify the employer of that determination. After
12 notice by the commission that the employer no longer qualifies as
13 a distressed employer, the employer will be liable for
14 contributions, beginning with the first quarter occurring after
15 receipt of notification of disqualification, on the basis of the
16 rate that would apply if the employer was not a distressed
17 employer. The contribution rate for a distressed employer shall
18 be calculated under the law in effect for the 1982 calendar year
19 except that the rate determined shall be reduced by the
20 applicable solvency tax rate assessed against the employer under
21 section 19a. The distressed employer will pay in 10 equal annual
22 installments the amount of the unpaid contributions owed to the
23 unemployment compensation fund due to the application of this
24 subsection, without interest. Each installment shall be made with
25 the fourth quarterly return for the respective year. As used in
26 this subsection, "distressed employer" means an employer whose
27 continued presence in this state is considered essential to the
1 state's economic well-being and who meets the following criteria:
2 (1) The employer's average annual Michigan payroll in the 5
3 previous years exceeded $500,000,000.00.
4 (2) The employer's average quarterly number of employees in
5 Michigan in the 5 previous years exceeded 25,000.
6 (3) The employer's business income as defined in section 3
7 of the single business tax act, 1975 PA 228, MCL 208.3, or
8 section 105 of the Michigan business tax act, 2007 PA 36, MCL
9 208.1105, as applicable, has resulted in an aggregate loss of
10 $1,000,000,000.00 or more during the 5-year period ending in the
11 second year prior to the year for which the application is being
12 made.
13 (4) The employer has received from this state loans totaling
14 $50,000,000.00 or more or loan guarantees from the federal
15 government in excess of $500,000,000.00, either of which are
16 still outstanding.
17 (5) Failure to give an employer designation as a distressed
18 employer would adversely impair the employer's ability to repay
19 the outstanding loans owed to this state or that are guaranteed
20 by the federal government.
21 (d) An employer may at any time make payments to that
22 employer's experience account in the fund in excess of the
23 requirements of this section, but these payments, when accepted
24 by the commission, shall be irrevocable. A payment made by an
25 employer within 30 days after mailing to the employer by the
26 commission of a notice of the adjusted contribution rate of the
27 employer shall be credited to the employer's account as of the
1 computation date for which the adjusted contribution rate was
2 computed, and the employer's contribution rate shall be further
3 adjusted accordingly. However, a payment made more than 120 days
4 after the beginning of a calendar year shall not affect the
5 employer's contribution rate for that year.
6 Sec. 19a. (1) Except for the first 4 consecutive years of
7 liability, a contributing employer is subject to a solvency tax
8 for a calendar year after 1982 if the employer's experience
9 account has a negative balance on the June 30 preceding that
10 calendar year, and if on the June 30 preceding that calendar year
11 the balance in the unemployment compensation fund is less than
12 the total amount of unrepaid interest bearing advances from the
13 federal government to the fund under section 1201 of the social
14 security act, 42 USC 1321, or the commission projects that
15 interest will be due during the calendar year on federal advances
16 and there will be insufficient solvency tax funds in the
17 contingent fund to meet the federal interest obligations when due
18 or there are outstanding advances from the state treasury from
19 the previous year and any interest thereon and there will be
20 insufficient solvency tax funds in the contingent fund to repay
21 such advances and interest. The solvency tax rate is in addition
22 to the employer's contribution rate and is not subject to the
23 limiting provisions of section 19(a)(6).
24 (2) The solvency tax rate shall be determined for the
25 respective calendar years as
follows:
26 (a) For the 1983 calendar year, the solvency tax rate shall
27 be 0.5%.
1 (b) For the 1984 calendar year, the solvency tax rate shall
2 be 1%.
3 (c) For the 1985 calendar year, the solvency tax rate shall
4 be calculated in the manner provided in this subdivision. By
5 February 1, 1985, the commission shall estimate the amount of
6 interest due on federal loans during the 1985 calendar year,
7 without regard to any deferral permitted under section 1202(b)(3)
8 or (8) of the social security act, 42 USC 1322, the amount of
9 funds required for the unemployment insurance automation project
10 for the 1985 calendar year, and the amount of deferred solvency
11 taxes which cannot be collected because of employer bankruptcies.
12 The total of these estimated amounts plus any amounts advanced
13 from the state treasury under subsection (3) during the 1984
14 calendar year and any interest thereon shall be divided by the
15 estimated total taxable payroll for the 1985 calendar year of all
16 active employers who had negative balances in their experience
17 accounts as of June 30, 1984. Total taxable payroll shall be
18 estimated by using the total taxable payroll for those employers
19 for the 12-month period ending June 30, 1984 and adjusting this
20 figure for any change in the taxable wage limit for the 1985
21 calendar year. The solvency tax rate thus calculated for the 1985
22 calendar year shall be adjusted to the next highest 1/10 of 1%,
23 but shall not exceed 2%.
24 (d) For the 1986 calendar year, the solvency tax rate shall
25 be calculated in the manner provided in this subdivision. By
26 February 1, 1986, the commission shall estimate the amount of
27 interest due during the 1986 calendar year on federal loans,
1 without regard to any deferral that may be permitted under
2 section 1202(b)(3) or (8) of the social security act, 42 USC
3 1322, the amount of funds required for the unemployment insurance
4 automation project for the 1986 calendar year, and the expected
5 balance on December 31, 1986, if any, of unrepaid interest
6 bearing federal advances. The total of these amounts plus any
7 amounts advanced from the state treasury under subsection (3)
8 during the 1985 calendar year and any interest thereon shall be
9 divided by the estimated total taxable payroll for the calendar
10 year of all active employers who had negative balances in their
11 experience accounts as of June 30, 1985. Total taxable payroll
12 shall be estimated by using the total taxable payroll for those
13 employers for the 12-month period ending on June 30, 1985 and
14 adjusting this figure for any change in the taxable wage limit
15 for the 1986 calendar year. The quotient shall be adjusted to the
16 next highest 1/10 of 1%. If this adjusted percentage is 0.8% or
17 less, the employer's solvency tax rate for the 1986 calendar year
18 shall be the adjusted percentage calculated. If the adjusted
19 percentage is more than 0.8%, the employer's solvency tax rate
20 shall be calculated in the same manner as the account building
21 component of the employer's contribution rate as determined under
22 section 19(a)(4), adjusted to generate aggregate solvency tax
23 revenues sufficient to pay the interest due during the year on
24 federal loans, to pay for the unemployment insurance automation
25 project, to repay the balance of interest bearing loans by
26 December 31, 1986, and to repay amounts advanced from the state
27 treasury during the 1985 calendar year and any interest thereon,
1 but shall not exceed the lesser of 1/4 of the percentage
2 calculated or 2%.
3 (e) For calendar years after 1986, the solvency tax rate
4 shall be calculated as follows:
5 (i) If
there is no balance on December 31, 1986, of unrepaid
6 interest bearing federal advances, the solvency tax rate, if any,
7 shall be calculated in the same manner as the account building
8 component of the employer's contribution rate as determined under
9 section 19(a)(4), but shall not exceed the lesser of 1/4 of the
10 percentage calculated or 2%.
11 (a) (ii) If there is a balance on December 31, 1986, 2011, of
12 unrepaid interest bearing federal advances, the solvency tax rate
13 for the 1987 2012 calendar year and for each calendar year
14 thereafter shall be calculated in the manner provided in this
15 subparagraph subdivision
until the balance of the interest
16 bearing federal advances on December 31, 1986 2011 has
been
17 reduced to zero. By February 1 of the calendar year, the
18 commission shall calculate the sum of (a) the estimated interest
19 due during the calendar on federal loans, without regard to any
20 interest deferral which may be that is permitted under
section
21 1202 of the social security act, 42 USC 1322, (b) the estimated
22 amount of funds required for the unemployment insurance
23 automation project, (c) the
remaining balance on December 31 of
24 the preceding year of the December 31, 1986 2011 balance
of
25 unrepaid interest bearing federal advances, and (d) any amounts
26 advanced from the state treasury under subsection (3) during the
27 preceding year and any interest thereon. on the balance. For
1 purposes of calculating the remaining balance, any loan
2 repayments during the year shall first be applied toward reducing
3 the December 31, 1986 2011
loan balance. The amount so calculated
4 shall be divided by the estimated total taxable payroll for the
5 calendar year of all active employers who had negative balances
6 in their experience accounts as of June 30 of the previous year.
7 Total taxable payroll shall be estimated by using the total
8 taxable payroll for such those employers for the
12-month period
9 ending June 30 of the previous calendar year and adjusting this
10 figure for any change in the taxable wage limit for the calendar
11 year. The quotient shall be adjusted to the next 1/10 of 1%. If
12 this adjusted percentage is 0.8% or less, an employer's solvency
13 tax rate for that calendar year shall be the percentage
14 calculated. If the adjusted percentage is more than 0.8%, the
15 employer's solvency tax rate shall be calculated in the same
16 manner as the account building component of the employer's
17 contribution rate as determined under section 19(a)(4), adjusted
18 to generate sufficient aggregate solvency tax revenues to pay the
19 interest due during the year on federal loans, to pay for the
20 unemployment insurance automation project, to repay the remaining
21 balance of the December 31, 1986 2011 balance of unrepaid
federal
22 interest bearing loans, and to repay advances from the state
23 treasury and any interest due thereon, but shall not exceed the
24 lesser of 1/4 of the percentage calculated or 2%.
25 (b) For any calendar year after the first calendar year that
26 the remaining balance of the December 31, 1986 2011 balance
of
27 unrepaid interest bearing federal advances has been reduced to
1 zero by December 31 of that year, an employer's solvency tax rate
2 shall be calculated in the same manner as the account building
3 component of the employer's contribution rate as determined under
4 section 19(a)(4), but shall not exceed the lesser of 1/4 of the
5 percentage calculated or 2%.
6 (iii)
Notwithstanding subparagraph (i), if
there is no
7 interest bearing federal loan balance on December 31, 1986, but
8 the state will have interest due during the 1987 calendar year on
9 federal advances made prior to January 1, 1987, or the state must
10 repay in the 1987 calendar year any advances made from the state
11 treasury during the 1986 calendar year, plus any interest
12 thereon, the employer's solvency tax rate for the 1987 calendar
13 year shall be calculated in the same manner as in subparagraph
14 (ii). If
there is no federal interest bearing loan balance on
15 December 31, 1986, and there will be no federal or state interest
16 due during the 1987 calendar year based on advances made prior to
17 January 1, 1987, but on June 30, 1986, the balance in the
18 unemployment compensation fund was less than the total amount of
19 unrepaid interest bearing federal advances, the employer's
20 solvency tax rate for the 1987 calendar year shall be zero.
21 (3) Solvency taxes shall become due and payable in the
22 manner, and at the times, specified for contributions in rules
23 promulgated by the commission. However, if the state is permitted
24 to defer interest payments due during a calendar year under
25 section 1202(b)(3) or (8) of the social security act, 42 USC
26 1322, payment of the solvency tax may likewise be deferred by an
27 employer and paid in installments in a manner prescribed by the
1 commission. If a deferral of interest payment is subsequently
2 disallowed by the United States department of labor, either
3 prospectively or retroactively, amounts of solvency taxes
4 deferred under this section shall become immediately due and
5 payable. Further, if the commission estimates that the solvency
6 taxes to be collected by September 30 of the calendar year will
7 be insufficient to meet the interest obligations due during that
8 calendar year, the percentages of amounts of solvency taxes
9 deferred in any year shall be reduced by the commission in an
10 amount sufficient to meet the interest obligations due in that
11 calendar year. Furthermore, if the amount of solvency taxes to be
12 collected by the time the federal interest obligations are due in
13 any year are insufficient to meet the obligations when due, the
14 commission shall recommend to the legislature that it appropriate
15 an amount sufficient to meet the interest obligations due. Any
16 amount so appropriated and used to pay federal interest
17 obligations, and interest due on such state appropriation, if
18 any, shall be repaid to the state as soon as possible from the
19 solvency tax revenues in the contingent fund.
20 (4) Amounts obtained pursuant to this section shall be paid
21 into the contingent fund created under section 10 and, except for
22 solvency taxes transferred to the unemployment compensation fund
23 as provided in this subsection, shall not be credited to the
24 employer's experience account. Amounts collected from solvency
25 taxes which are transferred to the unemployment compensation fund
26 and used to repay federal advances to the unemployment
27 compensation fund shall be credited to the employers' experience
1 accounts by June 30 of the year following the calendar year in
2 which the transfer occurred. The amount to be credited to an
3 employer's account shall be determined by the commission, but
4 shall reasonably reflect each employer's pro rata share of the
5 amount transferred. Past due payments of the solvency tax shall
6 be subject to the interest, penalty, assessment, and collection
7 provisions of section 15. Interest and penalties collected shall
8 be paid into the contingent fund. Adjustments and refunds of
9 erroneously collected solvency taxes shall be made in accordance
10 with section 16. Solvency tax determinations are appealable under
11 the appeal process provided for review and appeal of
12 determinations under this act.
13 (5) If any provision of this section prevents the state from
14 qualifying for any federal interest relief provisions provided
15 under section 1202 of the social security act, 42 USC 1322, or
16 prevents employers in this state from qualifying for the
17 limitation on the reduction of federal unemployment tax act
18 credits as provided under section 3302(f) of the federal
19 unemployment tax act, 26 USC 3302(f), that provision is invalid
20 to the extent necessary to maintain qualification for the
21 interest relief provisions and federal unemployment tax credits.
22 (6) Notwithstanding any other provision of this section, if
23 interest due during a calendar year on federal advances is
24 forgiven or postponed under federal law and is no longer due
25 during that calendar year, no solvency tax shall be assessed
26 against an employer for that calendar year and any solvency tax
27 already assessed and collected against an employer before the
1 forgiveness or postponement of the interest for that calendar
2 year shall be credited to the employer's experience account.
3 Sec. 20. (a) Benefits paid shall be charged against the
4 employer's account as of the quarter in which the payments are
5 made. If the bureau unemployment
agency determines that any
6 benefits charged against an employer's account were improperly
7 paid, an amount equal to the charge based on those benefits shall
8 be credited to the employer's account and a corresponding charge
9 shall be made to the nonchargeable benefits account as of the
10 current period or, in the discretion of the bureau, as of the
11 date of the charge. Benefits paid to an individual as a result of
12 an employer's failure to provide the unemployment agency with
13 separation, employment, and wage data as required by section 32
14 shall be considered as benefits properly paid to the extent that
15 the benefits are chargeable to the noncomplying employer.
16 (b) For benefit years established before October 1, 2000,
17 benefits paid to an individual shall be based upon the credit
18 weeks earned during the individual's base period and shall be
19 charged against the experience accounts of the contributing
20 employers or charged to the accounts of the reimbursing employers
21 from whom the individual earned credit weeks. If the individual
22 earned credit weeks from more than 1 employer, a separate
23 determination shall be made of the amount and duration of
24 benefits based upon the total credit weeks and wages earned with
25 each employer. Benefits paid in accordance with the
26 determinations shall be charged against the experience account of
27 a contributing employer or charged to the account of a
1 reimbursing employer beginning with the most recent employer
2 first and thereafter as necessary against other base period
3 employers in inverse order to that in which the claimant earned
4 his or her last credit week with those employers. If there is any
5 disqualifying act or discharge under section 29(1) with an
6 employer, benefits based upon credit weeks earned from that
7 employer before the disqualifying act or discharge shall be
8 charged only after the exhaustion of charges as provided above.
9 Benefits based upon those credit weeks shall be charged first
10 against the experience account of the contributing employer
11 involved or to the account of the reimbursing employer involved
12 in the most recent disqualifying act or discharge and thereafter
13 as necessary in similar inverse order against other base period
14 employers involved in disqualifying acts or discharges. The order
15 of charges determined as of the beginning date of a benefit year
16 shall remain fixed during the benefit year. For benefit years
17 established on or after October 1, 2000, the claimant's full
18 weekly benefit rate shall be charged to the account or experience
19 account of the claimant's most recent separating employer for
20 each of the first 2 weeks of benefits payable to the claimant in
21 the benefit year in accordance with the monetary determination
22 issued pursuant to section 32. However, if the total sum of wages
23 paid by an employer totals $200.00 or less, those wages shall be
24 used for purposes of benefit payment, but any benefit charges
25 attributable to those wages shall be charged to the nonchargeable
26 benefits account. Thereafter, remaining weeks of benefits payable
27 in the benefit year shall be paid in accordance with the monetary
1 determination and shall be charged proportionally to all base
2 period employers, with the charge to each base period employer
3 being made on the basis of the ratio that total wages paid by the
4 employer in the base period bears to total wages paid by all
5 employers in the base period. However, if the claimant did not
6 perform services for the most recent separating employer or
7 employing entity and receive earnings for performing the services
8 of at least the amount a claimant must earn, in the manner
9 prescribed in section 29(3), to requalify for benefits following
10 a disqualification under section 29(1)(a), (b), (i), or (k) 40
11 times the state minimum hourly wage times 7 during the claimant's
12 most recent period of employment with the employer or employing
13 entity, then all weeks of benefits payable in the benefit year
14 shall be charged proportionally to all base period employers,
15 with the charge to each base period employer being made on the
16 basis of the ratio that total wages paid by the employer in the
17 base period bears to total wages paid by all employers in the
18 base period. If the claimant performed services for the most
19 recent separating employing entity and received earnings for
20 performing the services of at least the amount a claimant must
21 earn, in the manner prescribed in section 29(3), to requalify for
22 benefits following a disqualification under section 29(1)(a),
23 (b), (i), or (k) 40
times the state minimum hourly wage times 7
24 during the claimant's most recent period of employment for the
25 employing entity but the separating employing entity was not a
26 liable employer, the first 2 weeks of benefits payable to the
27 claimant shall be charged proportionally to all base period
1 employers, with the charge to each base period employer made on
2 the basis of the ratio that total wages paid by the employer in
3 the base period bears to total wages paid by all employers in the
4 base period. The "separating employer" is the employer that
5 caused the individual to be unemployed as defined in section 48.
6 (c) For benefit years established before October 1, 2000,
7 and except as otherwise provided in section 11(d) or (g) or
8 section 46a, the charges for regular benefits to any reimbursing
9 employer or to any contributing employer's experience account
10 shall not exceed the weekly benefit rate multiplied by 3/4 the
11 number of credit weeks earned by the individual during his or her
12 base period from that employer. If the resultant product is not
13 an even multiple of 1/2 the weekly benefit rate, the amount shall
14 be raised to an amount equal to the next higher multiple of 1/2
15 the weekly benefit rate, and in the case of an individual who was
16 employed by only 1 employer in his or her base period and who
17 earned 34 credit weeks with that employer, the product shall be
18 raised to the next higher multiple of the weekly benefit rate.
19 (d) For benefit years beginning on or after October 1, 2000,
20 and except as otherwise provided in section 11(d) or (g) or
21 section 46, the charges for regular benefits to any reimbursing
22 employer's account or to any contributing employer's experience
23 account shall not exceed either the amount derived by multiplying
24 by 2 the weekly benefit rate chargeable to the employer in
25 accordance with subsection (b) if the employer is the separating
26 employer and is chargeable for the first 2 weeks of benefits, or
27 the amount derived from the percentage of the weekly benefit rate
1 chargeable to the employer in accordance with subsection (b),
2 multiplied by the number of weeks of benefits chargeable to base
3 period employers based on base period wages, to which the
4 individual is entitled as provided in section 27(d), if the
5 employer is a base period employer, or both of these amounts if
6 the employer was both the chargeable separating employer and a
7 base period employer.
8 (e) For benefit years beginning before October 1, 2000:
9 (1) If an individual has multiemployer credit weeks in his
10 or her base period, and if it becomes necessary to use those
11 credit weeks as a basis for benefit payments, a single
12 determination shall be made of the individual's weekly benefit
13 rate and maximum amount of benefits based on the individual's
14 multiemployer credit weeks and the wages earned in those credit
15 weeks. Each employer involved in the individual's multiemployer
16 credit weeks shall be an interested party to the determination.
17 The proviso in section 29(2) does not apply to multiemployer
18 credit weeks, nor does the reduction provision of section 29(4)
19 apply to benefit entitlement based upon those credit weeks.
20 (2) The charge for benefits based on multiemployer credit
21 weeks shall be allocated to each employer involved on the basis
22 of the ratio that the total wages earned during the total
23 multiemployer credit weeks counted under section 50(b) with the
24 employer bears to the total amount of wages earned during the
25 total multiemployer credit weeks counted under section 50(b) with
26 all such employers, computed to the nearest cent. However, if an
27 adjusted weekly benefit rate is determined in accordance with
1 section 27(f), the charge to the employer who has contributed to
2 the financing of the retirement plan shall be reduced by the same
3 amount by which the weekly benefit rate was adjusted under
4 section 27(f). Benefits for a week of unemployment allocated
5 under this subsection to a contributing employer shall be charged
6 to the nonchargeable benefits account if the claimant during that
7 week earns remuneration with that employer that equals or exceeds
8 the amount of benefits allocated to that employer.
9 (3) Benefits paid in accordance with the determination based
10 on multiemployer credit weeks shall be allocated to each employer
11 involved and charged as of the quarter in which the payments are
12 made. Notice of charges made under this subsection shall be given
13 to each employer by means of a current listing of charges, at
14 least weekly, or of a quarterly statement of charges. The listing
15 or statement shall specify the weeks for which benefits were paid
16 based on multiemployer credit weeks and the amount of benefits
17 paid chargeable to that employer for each week. The notice shall
18 be considered to satisfy the requirements of sections 21(a) and
19 32(d) that notification be given each employer of benefits
20 charged against that employer's account by means of a copy or
21 listing of the benefit check payment, and all protest and
appeal
22 rights applicable to benefit check copies or payment listings
23 shall also apply to the notice of charges. If an employer
24 receives both a current listing of charges and a quarterly
25 statement of charges under this subsection, all protest and
26 appeal rights shall only apply to the first notice given.
27 (f) For benefit years beginning on or after October 1, 2000
1 , if benefits for a week of unemployment are charged to 2 or more
2 base period employers, the share of the benefits allocated and
3 charged under this section to a contributing employer shall be
4 charged to the nonchargeable benefits account if the claimant
5 during that week earns remuneration with that employer that
6 equals or exceeds the amount of benefits charged to that
7 employer.and before
January 1, 2014, if a base period
8 contributing employer notifies the unemployment agency that it
9 paid gross wages to a claimant in a week at least equal to the
10 employer's benefit charge for that claimant for the week, then
11 the unemployment agency shall issue a monetary redetermination
12 noncharging the account of the employer for that week and for the
13 remaining weeks of the benefit year for benefits payable to the
14 claimant that would otherwise be charged to the employer's
15 account. For benefit years beginning on or after January 1, 2014,
16 benefits payable to an individual for a week and for each
17 remaining payable week in the benefit year shall be charged to
18 the nonchargeable benefits account if either of the following
19 occurs:
20 (1) The individual reports gross earnings in the week with a
21 contributing base period employer at least equal to the
22 employer's benefit charges for that individual for the week.
23 (2) A contributing base period employer timely protests a
24 determination charging benefits to its account for a week in
25 which the employer paid gross wages to an individual at least
26 equal to the employer's charges for benefits paid to that
27 individual for that week.
1 (g) For benefit years beginning before October 1, 2000:
2 (1) Training benefits as provided in section 27(g), and
3 extended benefits as provided in section 64, shall be allocated
4 to each reimbursing employer involved in the individual's base
5 period of the claim to which the benefits are related, on the
6 basis of the ratio that the total wages earned during the total
7 credit weeks counted under section 50(b) with a reimbursing
8 employer bears to the total amount of wages earned during the
9 total credit weeks counted under section 50(b) with all
10 employers.
11 (2) Training benefits and extended benefits, to the extent
12 that they are not reimbursable by the federal government and have
13 been allocated to a reimbursing employer, shall be charged to
14 that reimbursing employer. A contributing employer's experience
15 account shall not be charged with training benefits. Training
16 benefits based on service with a contributing employer, to the
17 extent that they are not reimbursable by the federal government,
18 shall be charged to the nonchargeable benefits account. Extended
19 benefits paid and based on service with a contributing employer,
20 to the extent that they are not reimbursable by the federal
21 government, shall be charged to that employer's experience
22 account.
23 (3) If the training benefits or extended benefits are
24 chargeable only to a single reimbursing employer, the benefits
25 shall be charged in accordance with subsection (a). If the
26 training benefits or extended benefits are chargeable to more
27 than 1 reimbursing employer, or to 1 or more reimbursing
1 employers and the nonchargeable benefits account, the benefits
2 shall be charged as of the quarter in which the payments are
3 made.
4 (4) Notice of charges made under this subsection shall be
5 given to each employer by means of a current listing of charges,
6 at least weekly, and subsequently by a quarterly summary
7 statement of charges. The listing shall specify the name and
8 social security number of each claimant paid benefits during the
9 week, the weeks for which the benefits were paid, and the amount
10 of benefits chargeable to that employer paid for each week. The
11 quarterly statement of charges shall list each claimant by name
12 and social security number and shall show total benefit payments
13 chargeable to that employer and made to each claimant during the
14 calendar quarter. The listing shall be considered to satisfy the
15 requirements of sections 21(a) and 32(d) that notification be
16 given each employer of benefits charged against that employer's
17 account by means of a listing of the benefit check. payment. All
18 protest and appeal rights applicable to benefit check payment
19 listings shall also apply to the notice of charges. If an
20 employer receives both a current listing of charges and a
21 quarterly statement of charges under this subsection, all protest
22 and appeal rights shall only apply to the first notice given.
23 (h) For benefit years beginning on or after October 1, 2000:
24 (1) Training benefits as provided in section 27(g), and
25 extended benefits as provided in section 64, shall be charged to
26 each reimbursing employer in the base period of the claim to
27 which the benefits are related, on the basis of the ratio that
1 the total wages paid by a reimbursing employer during the base
2 period bears to the total wages paid by all reimbursing employers
3 in the base period.
4 (2) Training benefits, and extended benefits to the extent
5 they are not reimbursable by the federal government and have been
6 allocated to a reimbursing employer, shall be charged to that
7 reimbursing employer. A contributing employer's experience
8 account shall not be charged with training benefits. Training
9 benefits based on service with a contributing employer, to the
10 extent they are not reimbursable by the federal government, shall
11 be charged to the nonchargeable benefits account. Extended
12 benefits paid and based on service with a contributing employer,
13 to the extent they are not reimbursable by the federal
14 government, shall be charged to that employer's experience
15 account.
16 (3) If the training benefits or extended benefits are
17 chargeable only to a single reimbursing employer, the benefits
18 shall be charged in accordance with subsection (a). If the
19 training benefits or extended benefits are chargeable to more
20 than 1 reimbursing employer, or to 1 or more reimbursing
21 employers and the nonchargeable benefits account, the benefits
22 shall be charged as of the quarter in which the payments are
23 made.
24 (4) Notice of charges made under this subsection shall be
25 given to each employer by means of a current listing of charges,
26 at least weekly, and subsequently by a quarterly summary
27 statement of charges. The listing shall specify the name and
1 social security number of each claimant paid benefits in the
2 week, the weeks for which the benefits were paid, and the amount
3 of benefits chargeable to that employer paid for each week. The
4 quarterly summary statement of charges shall list each claimant
5 by name and social security number and shall show total benefit
6 payments chargeable to that employer and made to each claimant
7 during the calendar quarter. The listing shall be considered to
8 satisfy the requirements of sections 21(a) and 32(d) that
9 notification be given to each employer of benefits charged
10 against that employer's account by means of a listing of the
11 benefit check payment. All protest and appeal rights applicable
12 to benefit check payment
listings shall also apply to the notice
13 of charges. If an employer receives both a current listing of
14 charges and a quarterly summary statement of charges under this
15 subsection, all protest and appeal rights shall only apply to the
16 first notice given.
17 (i) If a benefit year is established on or after October 1,
18 2000, the portion of benefits paid in that benefit year that are
19 based on wages used to establish the immediately preceding
20 benefit year that began before October 1, 2000 shall not be
21 charged to the employer or employers who paid those wages but
22 shall be charged instead to the nonchargeable benefits account.
23 (j) For benefits years beginning after March 30, 2009,
24 benefits paid to a person who leaves employment to accompany a
25 spouse who is a full-time member of the United States armed
26 forces and is reassigned for military service in a different
27 geographic location are not chargeable to the employer, but shall
1 be charged to the nonchargeable benefits account.
2 Sec. 21. (a) The commission shall currently provide each
3 employer with copies or listings of the benefit checks charged
4 against that employer's account. An employer determined by the
5 agency to be a successor employer shall begin receiving the
6 listings effective for weeks beginning after the mailing of the
7 determination of successorship. The copies or listings shall show
8 the name and social security account number of the payee, the
9 amount paid, the date of issuance, the week of unemployment for
10 which the check was issued, the name or account number of the
11 chargeable employer, upon request a code designation of the place
12 of employment by the chargeable employer, and additional
13 information as may be deemed pertinent. The copies or listings
14 shall constitute a determination of the charge to the employer's
15 account. The determination shall be final unless further
16 proceedings are taken in accordance with section 32a.
17 The commission shall furnish at least quarterly, to each
18 employer, a statement summarizing the total of the benefits
19 charged against the employer's account during the period. If the
20 employer requests, the summary shall be broken down by places of
21 employment.
22 The commission shall notify each employer, not later than 6
23 months after the computation date, of his rate of contributions
24 as determined for any calendar year pursuant to section 19. The
25 statement or determination shall be final unless further
26 proceedings are taken in accordance with section 32a. However, on
27 request an employer shall be given an extension of 30 days'
1 additional time in which to apply for the review and
2 redetermination.
3 (b) An employer who is not in agreement with a
4 redetermination of the amount of insured payrolls used in
5 computing the employer's experience account percentage, or the
6 computation of the amount of benefits charged or contributions
7 credited to the experience account, or the computation of the
8 adjusted contribution rate issued under section 32a may, within
9 30 days after mailing of the notice of redetermination, file an
10 appeal and request a hearing on the issue before a referee.an
11 administrative law judge.
12 (c) A contribution becoming due and payable while a rate
13 determination is under review or protest may be paid at the rate
14 assessed by the commission for the previous year, but it shall be
15 adjusted by the commission when the proper rate is determined. If
16 an adjustment requires an additional payment from an employer,
17 the additional payment shall be considered as a delinquent
18 contribution as provided by section 15(a).
19 Sec. 27. (a)(1) When a determination, redetermination, or
20 decision is made that benefits are due an unemployed individual,
21 the benefits shall become payable from the fund and continue to
22 be payable to the unemployed individual, subject to the
23 limitations imposed by the individual's monetary entitlement, if
24 the individual continues to be unemployed and to file claims for
25 benefits, until the determination, redetermination, or decision
26 is reversed, a determination, redetermination, or decision on a
27 new issue holding the individual disqualified or ineligible is
1 made, or, for benefit years beginning before October 1, 2000, a
2 new separation issue arises resulting from subsequent work.
3 (2) Benefits shall be paid in person or by mail through
4 Employment offices in accordance with rules promulgated by the
5 commission.
6 (b)(1) Subject to subsection (f), the weekly benefit rate
7 for an individual, with respect to benefit years beginning before
8 October 1, 2000, shall be 67% of the individual's average after
9 tax weekly wage, except that the individual's maximum weekly
10 benefit rate shall not exceed $300.00. However, with respect to
11 benefit years beginning on or after October 1, 2000, the
12 individual's weekly benefit rate is 4.1% of the individual's
13 wages paid in the calendar quarter of the base period in which
14 the individual was paid the highest total wages, plus $6.00 for
15 each dependent as defined in subdivision (4), up to a maximum of
16 5 dependents, claimed by the individual at the time the
17 individual files a new claim for benefits, except that the
18 individual's maximum weekly benefit rate shall not exceed $300.00
19 before April 26, 2002 and $362.00 for claims filed on and after
20 April 26, 2002. The weekly benefit rate for an individual
21 claiming benefits on and after April 26, 2002 shall be
22 recalculated subject to the $362.00 maximum weekly benefit rate.
23 The unemployment agency shall establish the procedures necessary
24 to verify the number of dependents claimed. If a person
25 fraudulently claims a dependent, that person is subject to the
26 penalties set forth in sections 54 and 54c. For benefit years
27 beginning on or after October 2, 1983, the weekly benefit rate
1 shall be adjusted to the next lower multiple of $1.00.
2 (2) For benefit years beginning before October 1, 2000, the
3 state average weekly wage for a calendar year shall be computed
4 on the basis of the 12 months ending the June 30 immediately
5 before that calendar year. The commission shall prepare a table
6 of weekly benefit rates based on an "average after tax weekly
7 wage" calculated by subtracting, from an individual's average
8 weekly wage as determined in accordance with section 51, a
9 reasonable approximation of the weekly amount required to be
10 withheld by the employer from the remuneration of the individual
11 based on dependents and exemptions for income taxes under 26 USC
12 3401 to 3406, and under section 351 of the income tax act of
13 1967, 1967 PA 281, MCL 206.351, and for old age and survivor's
14 disability insurance taxes under the federal insurance
15 contributions act, 26 USC 3101 to 3128. For purposes of applying
16 the table to an individual's claim, a dependent shall be as
17 defined in subdivision (3). The table applicable to an
18 individual's claim shall be the table reflecting the number of
19 dependents claimed by the individual under subdivision (3). The
20 commission shall adjust the tables based on changes in
21 withholding schedules published by the United States department
22 of treasury, internal revenue service, and by the department of
23 treasury. The number of dependents allowed shall be determined
24 with respect to each week of unemployment for which an individual
25 is claiming benefits.
26 (3) For benefit years beginning before October 1, 2000, a
27 dependent means any of the following persons who are receiving
1 and for at least 90 consecutive days immediately before the week
2 for which benefits are claimed, or, in the case of a dependent
3 husband, wife, or child, for the duration of the marital or
4 parental relationship, if the relationship has existed less than
5 90 days, has received more than 1/2 the cost of his or her
6 support from the individual claiming benefits:
7 (a) A child, including stepchild, adopted child, or
8 grandchild of the individual who is under 18 years of age, or 18
9 years of age or over if, because of physical or mental infirmity,
10 the child is unable to engage in a gainful occupation, or is a
11 full-time student as defined by the particular educational
12 institution, at a high school, vocational school, community or
13 junior college, or college or university and has not attained the
14 age of 22.
15 (b) The husband or wife of the individual.
16 (c) The legal father or mother of the individual if that
17 parent is either more than 65 years of age or is permanently
18 disabled from engaging in a gainful occupation.
19 (d) A brother or sister of the individual if the brother or
20 sister is orphaned or the living parents are dependent parents of
21 an individual, and the brother or sister is under 18 years of
22 age, or 18 years of age or over if, because of physical or mental
23 infirmity, the brother or sister is unable to engage in a gainful
24 occupation, or is a full-time student as defined by the
25 particular educational institution, at a high school, vocational
26 school, community or junior college, or college or university and
27 is less than 22 years of age.
1 (4) For benefit years beginning on or after October 1, 2000,
2 a dependent means any of the following persons who received for
3 at least 90 consecutive days immediately before the first week of
4 the benefit year or, in the case of a dependent husband, wife, or
5 child, for the duration of the marital or parental relationship
6 if the relationship existed less than 90 days before the
7 beginning of the benefit year, has received more than 1/2 the
8 cost of his or her support from the individual claiming the
9 benefits:
10 (a) A child, including stepchild, adopted child, or
11 grandchild of the individual who is under 18 years of age, or 18
12 years of age and over if, because of physical or mental
13 infirmity, the child is unable to engage in a gainful occupation,
14 or is a full-time student as defined by the particular
15 educational institution, at a high school, vocational school,
16 community or junior college, or college or university and has not
17 attained the age of 22.
18 (b) The husband or wife of the individual.
19 (c) The legal father or mother of the individual if that
20 parent is either more than 65 years of age or is permanently
21 disabled from engaging in a gainful occupation.
22 (d) A brother or sister of the individual if the brother or
23 sister is orphaned or the living parents are dependent parents of
24 an individual, and the brother or sister is under 18 years of
25 age, or 18 years of age and over if, because of physical or
26 mental infirmity, the brother or sister is unable to engage in a
27 gainful occupation, or is a full-time student as defined by the
1 particular educational institution, at a high school, vocational
2 school, community or junior college, or college or university and
3 is less than 22 years of age.
4 (5) For benefit years beginning before October 1, 2000,
5 dependency status of a dependent, child or otherwise, once
6 established or fixed in favor of an individual continues during
7 the individual's benefit year until terminated. Dependency status
8 of a dependent terminates at the end of the week in which the
9 dependent ceases to be an individual described in subdivision
10 (3)(a), (b), (c), or (d) because of age, death, or divorce. For
11 benefit years beginning on or after October 1, 2000, the number
12 of dependents established for an individual at the beginning of
13 the benefit year shall remain in effect during the entire benefit
14 year.
15 (6) For benefit years beginning before October 1, 2000,
16 failure on the part of an individual, due to misinformation or
17 lack of information, to furnish all information material for
18 determination of the number of the individual's dependents when
19 the individual files a claim for benefits with respect to a week
20 is good cause to issue a redetermination as to the amount of
21 benefits based on the number of the individual's dependents as of
22 the beginning date of that week. Dependency status of a
23 dependent, child or otherwise, once established or fixed in favor
24 of a person is not transferable to or usable by another person
25 with respect to the same week.
26 For benefit years beginning on or after October 1, 2000,
27 failure on the part of an individual, due to misinformation or
1 lack of information, to furnish all information material for
2 determination of the number of the individual's dependents is
3 good cause to issue a redetermination as to the amount of
4 benefits based on the number of the individual's dependents as of
5 the beginning of the benefit year.
6 (c) Subject to subsection (f), all of the following apply to
7 eligible individuals:
8 (1) Each eligible individual shall be paid a weekly benefit
9 rate with respect to the week for which the individual earns or
10 receives no remuneration. Notwithstanding the definition of week
11 in section 50, if within 2 consecutive weeks in which an
12 individual was not unemployed within the meaning of section 48
13 there was a period of 7 or more consecutive days for which the
14 individual did not earn or receive remuneration, that period
15 shall be considered a week for benefit purposes under this act if
16 a claim for benefits for that period is filed not later than 30
17 days after the end of the period.
18 (2) Each eligible individual shall have his or her weekly
19 benefit rate reduced with respect to each week in which the
20 individual earns or receives remuneration at the rate of 50 cents
21 for each whole $1.00 of remuneration earned or received during
22 that week.
23 (3) An individual who receives or earns partial remuneration
24 may not receive a total of benefits and earnings that exceeds 1-
25 1/2 times his or her weekly benefit amount. For each dollar of
26 total benefits and earnings that exceeds 1-1/2 times the
27 individual's weekly benefit amount, benefits shall be reduced by
1 $1.00.
2 (4) If the reduction in a claimant's benefit rate for a week
3 in accordance with subdivision (2) or (3) results in a benefit
4 rate greater than zero for that week, the claimant's balance of
5 weeks of benefit payments shall be reduced by 1 week.
6 (5) All remuneration for work performed during a shift that
7 terminates on 1 day but that began on the preceding day shall be
8 considered to have been earned by the eligible individual on the
9 preceding day.
10 (d) For benefit years beginning before October 1, 2000, and
11 subject to subsection (f) and this subsection, the amount of
12 benefits to which an individual who is otherwise eligible is
13 entitled during a benefit year from an employer with respect to
14 employment during the base period is the amount obtained by
15 multiplying the weekly benefit rate with respect to that
16 employment by 3/4 of the number of credit weeks earned in the
17 employment. For the purpose of this subsection and section 20(c),
18 if the resultant product is not an even multiple of 1/2 the
19 weekly benefit rate, the product shall be raised to an amount
20 equal to the next higher multiple of 1/2 the weekly benefit rate,
21 and, for an individual who was employed by only 1 employer in the
22 individual's base period and earned 34 credit weeks with that
23 employer, the product shall be raised to the next higher multiple
24 of the weekly benefit rate. The maximum amount of benefits
25 payable to an individual within a benefit year, with respect to
26 employment by an employer, shall not exceed 26 times the weekly
27 benefit rate with respect to that employment. The maximum amount
1 of benefits payable to an individual within a benefit year shall
2 not exceed the amount to which the individual would be entitled
3 for 26 weeks of unemployment in which remuneration was not earned
4 or received. The limitation of total benefits set forth in this
5 subsection does not apply to claimants declared eligible for
6 training benefits in accordance with subsection (g). For benefit
7 years beginning on or after October 1, 2000, and subject to
8 subsection (f) and this subsection, the maximum benefit amount
9 payable to an individual in a benefit year for purposes of this
10 section and section 20(d) is the number of weeks of benefits
11 payable to an individual during the benefit year, multiplied by
12 the individual's weekly benefit rate. The number of weeks of
13 benefits payable to an individual shall be calculated by taking
14 43% of the individual's base period wages and dividing the result
15 by the individual's weekly benefit rate. If the quotient is not a
16 whole or half number, the result shall be rounded down to the
17 nearest half number. However, for each eligible individual filing
18 an initial claim before January 15, 2012, not more than 26 weeks
19 of benefits or less than 14 weeks of benefits shall be payable to
20 an individual in a benefit year. For each eligible individual
21 filing an initial claim on or after January 15, 2012, not more
22 than 20 weeks of benefits or less than 14 weeks of benefits shall
23 be payable to an individual in a benefit year. The limitation of
24 total benefits set forth in this subsection does not apply to
25 claimants declared eligible for training benefits in accordance
26 with subsection (g).
27 (e) When a claimant dies or is judicially declared insane or
1 mentally incompetent, unemployment compensation benefits accrued
2 and payable to that person for weeks of unemployment before
3 death, insanity, or incompetency, but not paid, shall become due
4 and payable to the person who is the legal heir or guardian of
5 the claimant or to any other person found by the commission to be
6 equitably entitled to the benefits by reason of having incurred
7 expense in behalf of the claimant for the claimant's burial or
8 other necessary expenses.
9 (f)(1) For benefit years beginning before October 1, 2000,
10 and notwithstanding any inconsistent provisions of this act, the
11 weekly benefit rate of each individual who is receiving or will
12 receive a "retirement benefit", as defined in subdivision (4),
13 shall be adjusted as provided in subparagraphs (a), (b), and (c).
14 However, an individual's extended benefit account and an
15 individual's weekly extended benefit rate under section 64 shall
16 be established without reduction under this subsection unless
17 subdivision (5) is in effect. Except as otherwise provided in
18 this subsection, all other provisions of this act continue to
19 apply in connection with the benefit claims of those retired
20 persons.
21 (a) If and to the extent that unemployment benefits payable
22 under this act would be chargeable to an employer who has
23 contributed to the financing of a retirement plan under which the
24 claimant is receiving or will receive a retirement benefit
25 yielding a pro rata weekly amount equal to or larger than the
26 claimant's weekly benefit rate as otherwise established under
27 this act, the claimant shall not receive unemployment benefits
1 that would be chargeable to the employer under this act.
2 (b) If and to the extent that unemployment benefits payable
3 under this act would be chargeable to an employer who has
4 contributed to the financing of a retirement plan under which the
5 claimant is receiving or will receive a retirement benefit
6 yielding a pro rata weekly amount less than the claimant's weekly
7 benefit rate as otherwise established under this act, then the
8 weekly benefit rate otherwise payable to the claimant and
9 chargeable to the employer under this act shall be reduced by an
10 amount equal to the pro rata weekly amount, adjusted to the next
11 lower multiple of $1.00, which the claimant is receiving or will
12 receive as a retirement benefit.
13 (c) If the unemployment benefit payable under this act would
14 be chargeable to an employer who has not contributed to the
15 financing of a retirement plan under which the claimant is
16 receiving or will receive a retirement benefit, then the weekly
17 benefit rate of the claimant as otherwise established under this
18 act shall not be reduced due to receipt of a retirement benefit.
19 (d) If the unemployment benefit payable under this act is
20 computed on the basis of multiemployer credit weeks and a portion
21 of the benefit is allocable under section 20(e) to an employer
22 who has contributed to the financing of a retirement plan under
23 which the claimant is receiving or will receive a retirement
24 benefit, the adjustments required by subparagraph (a) or (b)
25 apply only to that portion of the weekly benefit rate that would
26 otherwise be allocable and chargeable to the employer.
27 (2) If an individual's weekly benefit rate under this act
1 was established before the period for which the individual first
2 receives a retirement benefit, any benefits received after a
3 retirement benefit becomes payable shall be determined in
4 accordance with the formula stated in this subsection.
5 (3) When necessary to assure prompt payment of benefits, the
6 commission shall determine the pro rata weekly amount yielded by
7 an individual's retirement benefit based on the best information
8 currently available to it. In the absence of fraud, a
9 determination shall not be reconsidered unless it is established
10 that the individual's actual retirement benefit in fact differs
11 from the amount determined by $2.00 or more per week. The
12 reconsideration shall apply only to benefits as may be claimed
13 after the information on which the reconsideration is based was
14 received by the commission.
15 (4)(a) As used in this subsection, "retirement benefit"
16 means a benefit, annuity, or pension of any type or that part
17 thereof that is described in subparagraph (b) that is both:
18 (i) Provided as an incident of employment under an
19 established retirement plan, policy, or agreement, including
20 federal social security if subdivision (5) is in effect.
21 (ii) Payable to an individual because the individual has
22 qualified on the basis of attained age, length of service, or
23 disability, whether or not the individual retired or was retired
24 from employment. Amounts paid to individuals in the course of
25 liquidation of a private pension or retirement fund because of
26 termination of the business or of a plant or department of the
27 business of the employer involved are not retirement benefits.
1 (b) If a benefit as described in subparagraph (a) is payable
2 or paid to the individual under a plan to which the individual
3 has contributed:
4 (i) Less than 1/2 of the cost of the benefit, then only 1/2
5 of the benefit is treated as a retirement benefit.
6 (ii) One-half or more of the cost of the benefit, then none
7 of the benefit is treated as a retirement benefit.
8 (c) The burden of establishing the extent of an individual's
9 contribution to the cost of his or her retirement benefit for the
10 purpose of subparagraph (b) is upon the employer who has
11 contributed to the plan under which a benefit is provided.
12 (5) Notwithstanding any other provision of this subsection,
13 for any week that begins after March 31, 1980, and with respect
14 to which an individual is receiving a governmental or other
15 pension and claiming unemployment compensation, the weekly
16 benefit amount payable to the individual for those weeks shall be
17 reduced, but not below zero, by the entire prorated weekly amount
18 of any governmental or other pension, retirement or retired pay,
19 annuity, or any other similar payment that is based on any
20 previous work of the individual. This reduction shall be made
21 only if it is required as a condition for full tax credit against
22 the tax imposed by the federal unemployment tax act, 26 USC 3301
23 to 3311.
24 (6) For benefit years beginning on or after October 1, 2000,
25 notwithstanding any inconsistent provisions of this act, the
26 weekly benefit rate of each individual who is receiving or will
27 receive a retirement benefit, as defined in subdivision (4),
1 shall be adjusted as provided in subparagraphs (a), (b), and (c).
2 However, an individual's extended benefit account and an
3 individual's weekly extended benefit rate under section 64 shall
4 be established without reduction under this subsection, unless
5 subdivision (5) is in effect. Except as otherwise provided in
6 this subsection, all the other provisions of this act apply to
7 the benefit claims of those retired persons. However, if the
8 reduction would impair the full tax credit against the tax
9 imposed by the federal unemployment tax act, 26 USC 3301 to 3311,
10 unemployment benefits shall not be reduced as provided in
11 subparagraphs (a), (b), and (c) for receipt of any governmental
12 or other pension, retirement or retired pay, annuity, or other
13 similar payment that was not includable in the gross income of
14 the individual for the taxable year in which it was received
15 because it was a part of a rollover distribution.
16 (a) If any base period or chargeable employer has
17 contributed to the financing of a retirement plan under which the
18 claimant is receiving or will receive a retirement benefit
19 yielding a pro rata weekly amount equal to or larger than the
20 claimant's weekly benefit rate as otherwise established under
21 this act, the claimant shall not receive unemployment benefits.
22 (b) If any base period employer or chargeable employer has
23 contributed to the financing of a retirement plan under which the
24 claimant is receiving or will receive a retirement benefit
25 yielding a pro rata weekly amount less than the claimant's weekly
26 benefit rate as otherwise established under this act, then the
27 weekly benefit rate otherwise payable to the claimant shall be
1 reduced by an amount equal to the pro rata weekly amount,
2 adjusted to the next lower multiple of $1.00, which the claimant
3 is receiving or will receive as a retirement benefit.
4 (c) If no base period or separating employer has contributed
5 to the financing of a retirement plan under which the claimant is
6 receiving or will receive a retirement benefit, then the weekly
7 benefit rate of the claimant as otherwise established under this
8 act shall not be reduced due to receipt of a retirement benefit.
9 (g) Notwithstanding any other provision of this act, an
10 individual pursuing vocational training or retraining pursuant to
11 section 28(2) who has exhausted all benefits available under
12 subsection (d) may be paid for each week of approved vocational
13 training pursued beyond the date of exhaustion a benefit amount
14 in accordance with subsection (c), but not in excess of the
15 individual's most recent weekly benefit rate. However, an
16 individual shall not be paid training benefits totaling more than
17 18 times the individual's most recent weekly benefit rate. The
18 expiration or termination of a benefit year shall not stop or
19 interrupt payment of training benefits if the training for which
20 the benefits were granted began before expiration or termination
21 of the benefit year.
22 (h) A payment of accrued unemployment benefits shall not be
23 made to an eligible individual or in behalf of that individual as
24 provided in subsection (e) more than 6 years after the ending
25 date of the benefit year covering the payment or 2 calendar years
26 after the calendar year in which there is final disposition of a
27 contested case, whichever is later.
1 (i) Benefits based on service in employment described in
2 section 42(8), (9), and (10) are payable in the same amount, on
3 the same terms, and subject to the same conditions as
4 compensation payable on the basis of other service subject to
5 this act, except that:
6 (1) With respect to service performed in an instructional,
7 research, or principal administrative capacity for an institution
8 of higher education as defined in section 53(2), or for an
9 educational institution other than an institution of higher
10 education as defined in section 53(3), benefits shall not be paid
11 to an individual based on those services for any week of
12 unemployment beginning after December 31, 1977 that commences
13 during the period between 2 successive academic years or during a
14 similar period between 2 regular terms, whether or not
15 successive, or during a period of paid sabbatical leave provided
16 for in the individual's contract, to an individual if the
17 individual performs the service in the first of the academic
18 years or terms and if there is a contract or a reasonable
19 assurance that the individual will perform service in an
20 instructional, research, or principal administrative capacity for
21 an institution of higher education or an educational institution
22 other than an institution of higher education in the second of
23 the academic years or terms, whether or not the terms are
24 successive.
25 (2) With respect to service performed in other than an
26 instructional, research, or principal administrative capacity for
27 an institution of higher education as defined in section 53(2) or
1 for an educational institution other than an institution of
2 higher education as defined in section 53(3), benefits shall not
3 be paid based on those services for any week of unemployment
4 beginning after December 31, 1977 that commences during the
5 period between 2 successive academic years or terms to any
6 individual if that individual performs the service in the first
7 of the academic years or terms and if there is a reasonable
8 assurance that the individual will perform the service for an
9 institution of higher education or an educational institution
10 other than an institution of higher education in the second of
11 the academic years or terms.
12 (3) With respect to any service described in subdivision (1)
13 or (2), benefits shall not be paid to an individual based upon
14 service for any week of unemployment that commences during an
15 established and customary vacation period or holiday recess if
16 the individual performs the service in the period immediately
17 before the vacation period or holiday recess and there is a
18 contract or reasonable assurance that the individual will perform
19 the service in the period immediately following the vacation
20 period or holiday recess.
21 (4) If benefits are denied to an individual for any week
22 solely as a result of subdivision (2) and the individual was not
23 offered an opportunity to perform in the second academic year or
24 term the service for which reasonable assurance had been given,
25 the individual is entitled to a retroactive payment of benefits
26 for each week for which the individual had previously filed a
27 timely claim for benefits. An individual entitled to benefits
1 under this subdivision may apply for those benefits by mail in
2 accordance with R 421.210 of the Michigan administrative code as
3 promulgated by the commission.
4 (5) Benefits based upon services in other than an
5 instructional, research, or principal administrative capacity for
6 an institution of higher education shall not be denied for any
7 week of unemployment commencing during the period between 2
8 successive academic years or terms solely because the individual
9 had performed the service in the first of the academic years or
10 terms and there is reasonable assurance that the individual will
11 perform the service for an institution of higher education or an
12 educational institution other than an institution of higher
13 education in the second of the academic years or terms, unless a
14 denial is required as a condition for full tax credit against the
15 tax imposed by the federal unemployment tax act, 26 USC 3301 to
16 3311.
17 (6) For benefit years established before October 1, 2000,
18 and notwithstanding subdivisions (1), (2), and (3), the denial of
19 benefits does not prevent an individual from completing
20 requalifying weeks in accordance with section 29(3) nor does the
21 denial prevent an individual from receiving benefits based on
22 service with an employer other than an educational institution
23 for any week of unemployment occurring between academic years or
24 terms, whether or not successive, or during an established and
25 customary vacation period or holiday recess, even though the
26 employer is not the most recent chargeable employer in the
27 individual's base period. However, in that case section 20(b)
1 applies to the sequence of benefit charging, except for the
2 employment with the educational institution, and section 50(b)
3 applies to the calculation of credit weeks. When a denial of
4 benefits under subdivision (1) no longer applies, benefits shall
5 be charged in accordance with the normal sequence of charging as
6 provided in section 20(b).
7 (7) For benefit years beginning on or after October 1, 2000,
8 and notwithstanding subdivisions (1), (2), and (3), the denial of
9 benefits shall not prevent an individual from completing
10 requalifying weeks in accordance with section 29(3) nor shall the
11 denial prevent an individual from receiving benefits based on
12 service with another base period employer other than an
13 educational institution for any week of unemployment occurring
14 between academic years or terms, whether or not successive, or
15 during an established and customary vacation period or holiday
16 recess. However, when benefits are paid based on service with 1
17 or more base period employers other than an educational
18 institution, the individual's weekly benefit rate shall be
19 calculated in accordance with subsection (b)(1) but during the
20 denial period the individual's weekly benefit payment shall be
21 reduced by the portion of the payment attributable to base period
22 wages paid by an educational institution and the account or
23 experience account of the educational institution shall not be
24 charged for benefits payable to the individual. When a denial of
25 benefits under subdivision (1) is no longer applicable, benefits
26 shall be paid and charged on the basis of base period wages with
27 each of the base period employers including the educational
1 institution.
2 (8) For the purposes of this subsection, "academic year"
3 means that period, as defined by the educational institution,
4 when classes are in session for that length of time required for
5 students to receive sufficient instruction or earn sufficient
6 credit to complete academic requirements for a particular grade
7 level or to complete instruction in a noncredit course.
8 (9) In accordance with subdivisions (1), (2), and (3),
9 benefits for any week of unemployment shall be denied to an
10 individual who performed services described in subdivision (1),
11 (2), or (3) in an educational institution while in the employ of
12 an educational service agency. For the purpose of this
13 subdivision, "educational service agency" means a governmental
14 agency or governmental entity that is established and operated
15 exclusively for the purpose of providing the services to 1 or
16 more educational institutions.
17 (j) Benefits shall not be paid to an individual on the basis
18 of any base period services, substantially all of which consist
19 of participating in sports or athletic events or training or
20 preparing to participate, for a week that commences during the
21 period between 2 successive sport seasons or similar periods if
22 the individual performed the services in the first of the seasons
23 or similar periods and there is a reasonable assurance that the
24 individual will perform the services in the later of the seasons
25 or similar periods.
26 (k)(1) Benefits are not payable on the basis of services
27 performed by an alien unless the alien is an individual who was
1 lawfully admitted for permanent residence at the time the
2 services were performed, was lawfully present for the purpose of
3 performing the services, or was permanently residing in the
4 United States under color of law at the time the services were
5 performed, including an alien who was lawfully present in the
6 United States under section 212(d)(5) of the immigration and
7 nationality act, 8 USC 1182.
8 (2) Any data or information required of individuals applying
9 for benefits to determine whether benefits are payable because of
10 their alien status are uniformly required from all applicants for
11 benefits.
12 (3) If an individual's application for benefits would
13 otherwise be approved, a determination that benefits to that
14 individual are not payable because of the individual's alien
15 status shall not be made except upon a preponderance of the
16 evidence.
17 (m)(1) An individual filing a new claim for unemployment
18 compensation under this act, at the time of filing the claim,
19 shall disclose whether the individual owes child support
20 obligations as defined in this subsection. If an individual
21 discloses that he or she owes child support obligations and is
22 determined to be eligible for unemployment compensation, the
23 commission unemployment
agency shall notify the state or local
24 child support enforcement agency enforcing the obligation that
25 the individual has been determined to be eligible for
26 unemployment compensation.
27 (2) Notwithstanding section 30, the commission unemployment
1 agency shall deduct and withhold from any unemployment
2 compensation payable to an individual who owes child support
3 obligations by using whichever of the following methods results
4 in the greatest amount:
5 (a) The amount, if any, specified by the individual to be
6 deducted and withheld under this subdivision.
7 (b) The amount, if any, determined pursuant to an agreement
8 submitted to the commission under 42 USC 654(19)(b)(i), by the
9 state or local child support enforcement agency.
10 (c) Any amount otherwise required to be deducted and
11 withheld from unemployment compensation by legal process, as that
12 term is defined in 42 USC 659(i)(5), properly served upon the
13 commission.
14 (3) The amount of unemployment compensation subject to
15 deduction under subdivision (2) is that portion that remains
16 payable to the individual after application of the recoupment
17 provisions of section 62(a) and the reduction provisions of
18 subsections (c) and (f).
19 (4) Any amount deducted and withheld under subdivision (2)
20 shall be paid by the commission to the appropriate state or local
21 child support enforcement agency.
22 (5) Any amount deducted and withheld under subdivision (2)
23 shall be treated for all purposes as if it were paid to the
24 individual as unemployment compensation and paid by the
25 individual to the state or local child support enforcement agency
26 in satisfaction of the individual's child support obligations.
27 (6) Provisions concerning deductions under this subsection
1 apply only if the state or local child support enforcement agency
2 agrees in writing to reimburse and does reimburse the commission
3 for the administrative costs incurred by the commission under
4 this subsection that are attributable to child support
5 obligations being enforced by the state or local child support
6 enforcement agency. The administrative costs incurred shall be
7 determined by the commission. The commission, in its discretion,
8 may require payment of administrative costs in advance.
9 (7) As used in this subsection:
10 (a) "Unemployment compensation", for purposes of
11 subdivisions (1) to (5), means any compensation payable under
12 this act, including amounts payable by the commission pursuant to
13 an agreement under any federal law providing for compensation,
14 assistance, or allowances with respect to unemployment.
15 (b) "Child support obligations" includes only obligations
16 that are being enforced pursuant to a plan described in 42 USC
17 654 that has been approved by the secretary of health and human
18 services under 42 USC 651 to 669b.
19 (c) "State or local child support enforcement agency" means
20 any agency of this state or a political subdivision of this state
21 operating pursuant to a plan described in subparagraph (b).
22 (n) Subsection (i)(2) applies to services performed by
23 school bus drivers employed by a private contributing employer
24 holding a contractual relationship with an educational
25 institution, but only if at least 75% of the individual's base
26 period wages with that employer are attributable to services
27 performed as a school bus driver. Subsection (i)(1) and (2) but
1 not subsection (i)(3) applies to other services described in
2 those subdivisions that are performed by any employees under an
3 employer's contract with an educational institution or an
4 educational service agency.
5 (o)(1) For weeks of unemployment beginning after July 1,
6 1996, unemployment benefits based on services by a seasonal
7 worker performed in seasonal employment are payable only for
8 weeks of unemployment that occur during the normal seasonal work
9 period. Benefits shall not be paid based on services performed in
10 seasonal employment for any week of unemployment beginning after
11 March 28, 1996 that begins during the period between 2 successive
12 normal seasonal work periods to any individual if that individual
13 performs the service in the first of the normal seasonal work
14 periods and if there is a reasonable assurance that the
15 individual will perform the service for a seasonal employer in
16 the second of the normal seasonal work periods. If benefits are
17 denied to an individual for any week solely as a result of this
18 subsection and the individual is not offered an opportunity to
19 perform in the second normal seasonal work period for which
20 reasonable assurance of employment had been given, the individual
21 is entitled to a retroactive payment of benefits under this
22 subsection for each week that the individual previously filed a
23 timely claim for benefits. An individual may apply for any
24 retroactive benefits under this subsection in accordance with R
25 421.210 of the Michigan administrative code.
26 (2) Not less than 20 days before the estimated beginning
27 date of a normal seasonal work period, an employer may apply to
1 the commission in writing for designation as a seasonal employer.
2 At the time of application, the employer shall conspicuously
3 display a copy of the application on the employer's premises.
4 Within 90 days after receipt of the application, the commission
5 shall determine if the employer is a seasonal employer. A
6 determination or redetermination of the commission concerning the
7 status of an employer as a seasonal employer, or a decision of a
8 referee or the board of review, or of the courts of this state
9 concerning the status of an employer as a seasonal employer,
10 which has become final, together with the record thereof, may be
11 introduced in any proceeding involving a claim for benefits, and
12 the facts found and decision issued in the determination,
13 redetermination, or decision shall be conclusive unless
14 substantial evidence to the contrary is introduced by or on
15 behalf of the claimant.
16 (3) If the employer is determined to be a seasonal employer,
17 the employer shall conspicuously display on its premises a notice
18 of the determination and the beginning and ending dates of the
19 employer's normal seasonal work periods. The notice shall be
20 furnished by the commission. The notice shall additionally
21 specify that an employee must timely apply for unemployment
22 benefits at the end of a first seasonal work period to preserve
23 his or her right to receive retroactive unemployment benefits if
24 he or she is not reemployed by the seasonal employer in the
25 second of the normal seasonal work periods.
26 (4) The commission may issue a determination terminating an
27 employer's status as a seasonal employer on the commission's own
1 motion for good cause, or upon the written request of the
2 employer. A termination determination under this subdivision
3 terminates an employer's status as a seasonal employer, and
4 becomes effective on the beginning date of the normal seasonal
5 work period that would have immediately followed the date the
6 commission issues the determination. A determination under this
7 subdivision is subject to review in the same manner and to the
8 same extent as any other determination under this act.
9 (5) An employer whose status as a seasonal employer is
10 terminated under subdivision (4) may not reapply for a seasonal
11 employer status determination until after a regularly recurring
12 normal seasonal work period has begun and ended.
13 (6) If a seasonal employer informs an employee who received
14 assurance of being rehired that, despite the assurance, the
15 employee will not be rehired at the beginning of the employer's
16 next normal seasonal work period, this subsection does not
17 prevent the employee from receiving unemployment benefits in the
18 same manner and to the same extent he or she would receive
19 benefits under this act from an employer who has not been
20 determined to be a seasonal employer.
21 (7) A successor of a seasonal employer is considered to be a
22 seasonal employer unless the successor provides the commission,
23 within 120 days after the transfer, with a written request for
24 termination of its status as a seasonal employer in accordance
25 with subdivision (4).
26 (8) At the time an employee is hired by a seasonal employer,
27 the employer shall notify the employee in writing if the employee
1 will be a seasonal worker. The employer shall provide the worker
2 with written notice of any subsequent change in the employee's
3 status as a seasonal worker. If an employee of a seasonal
4 employer is denied benefits because that employee is a seasonal
5 worker, the employee may contest that designation in accordance
6 with section 32a.
7 (9) As used in this subsection:
8 (a) "Construction industry" means the work activity
9 designated in sector group 23 - construction of the North
10 American classification system - United States office of
11 management and budget, 1997 edition.
12 (b) "Normal seasonal work period" means that period or those
13 periods of time determined under rules promulgated by the
14 commission during which an individual is employed in seasonal
15 employment.
16 (c) "Seasonal employment" means the employment of 1 or more
17 individuals primarily hired to perform services in an industry,
18 other than the construction industry, that does either of the
19 following:
20 (1) Customarily operates during regularly recurring periods
21 of 26 weeks or less in any 52-consecutive-week 52-week period
22 other than services in the construction industry.
23 (2) Customarily employs at least 50% of its employees for
24 regularly recurring periods of 26 weeks or less within a period
25 of 52 consecutive weeks.
26 (d) "Seasonal employer" means an employer, other than an
27 employer in the construction industry, who applies to the
1 commission for designation as a seasonal employer and who the
2 commission determines to be is an employer whose
operations and
3 business are substantially require employees engaged in
seasonal
4 employment. A seasonal employer designation under this act need
5 not correspond to a category assigned under the North American
6 classification system — United States office of management and
7 budget.
8 (e) "Seasonal worker" means a worker who has been paid wages
9 by a seasonal employer for work performed only during the normal
10 seasonal work period.
11 (10) This subsection does not apply if the United States
12 department of labor finds it to be contrary to the federal
13 unemployment tax act, 26 USC 3301 to 3311, or the social security
14 act, chapter 531, 49 Stat. 620, and if conformity with the
15 federal law is required as a condition for full tax credit
16 against the tax imposed under the federal unemployment tax act,
17 26 USC 3301 to 3311, or as a condition for receipt by the
18 commission of federal administrative grant funds under the social
19 security act, chapter 531, 49 Stat. 620.
20 (p) Benefits shall not be paid to an individual based upon
21 his or her services as a school crossing guard for any week of
22 unemployment that begins between 2 successive academic years or
23 terms, if that individual performs the services of a school
24 crossing guard in the first of the academic years or terms and
25 has a reasonable assurance that he or she will perform those
26 services in the second of the academic years or terms.
27 Sec. 28. (1) An unemployed individual shall be is eligible
1 to receive benefits with respect to any week only if the
2 commission unemployment
agency finds that:all of the following:
3 (a) For benefit years established before the conversion date
4 prescribed in section 75 October
1, 2000, the individual has
5 registered for work at and thereafter has continued to report at
6 an employment office in accordance with such rules as the
7 commission may prescribe unemployment
agency rules and is seeking
8 work. The requirements that the individual must report at an
9 employment office, must register for work, must be available to
10 perform suitable full-time work, and must seek work may be waived
11 by the commission unemployment
agency if the individual is laid
12 off and the employer who laid the individual off notifies the
13 commission unemployment
agency in writing or by computerized
data
14 exchange that the layoff is temporary and that work is expected
15 to be available for the individual within a declared number of
16 days, not to exceed 45 calendar days following the last day the
17 individual worked. This waiver shall not be effective unless the
18 notification from the employer has been received by the
19 commission unemployment
agency before the individual has
20 completed his or her first compensable week following layoff. If
21 the individual is not recalled within the specified period, the
22 waiver shall cease to be operative with respect to that layoff.
23 Except for a period of disqualification, the requirement that the
24 individual shall seek work may be waived by the commission
25 unemployment agency where it finds that suitable work is
26 unavailable both in the locality where the individual resides and
27 in those localities in which the individual has earned base
1 period credit weeks. This waiver shall not apply, for weeks of
2 unemployment beginning on or after March 1, 1981, to a claimant
3 enrolled and attending classes as a full-time student. An
4 individual shall have has
satisfied the requirement of personal
5 reporting at an employment office, as applied to a week in a
6 period during which the requirements of registration and seeking
7 work have been waived by the commission unemployment agency
8 pursuant to this subdivision, if the individual has satisfied the
9 personal reporting requirement with respect to a preceding week
10 in that period and the individual has reported with respect to
11 the week by mail in accordance with the rules promulgated by the
12 commission unemployment
agency. For benefit years established on
13
or after the conversion date
prescribed in section 75 October
1,
14 2000, the individual has registered for work and has continued to
15 report in accordance with such rules as the commission may
16 prescribe unemployment
agency rules and is actively engaged in
17 seeking work. The requirements that the individual must report,
18 must register for work, must be available to perform suitable
19 full-time work, and must seek work may be waived by the
20 commission unemployment
agency if the individual is laid off
and
21 the employer who laid the individual off notifies the commission
22 unemployment agency in writing or by computerized data exchange
23 that the layoff is temporary and that work is expected to be
24 available for the individual within a declared number of days,
25 not to exceed 45 calendar days following the last day the
26 individual worked. This waiver shall not be effective unless the
27 notification from the employer has been received by the
1 commission unemployment
agency before the individual has
2 completed his or her first compensable week following layoff. If
3 the individual is not recalled within the specified period, the
4 waiver shall cease to be operative with respect to that layoff.
5 Except for a period of disqualification, the requirement that the
6 individual shall seek work may be waived by the commission where
7 unemployment agency if it finds that suitable work is unavailable
8 both in the locality where the individual resides and in those
9 localities in which the individual has earned wages during or
10 after the base period. This waiver shall does not
apply to a
11 claimant enrolled and attending classes as a full-time student.
12 An individual shall be is
considered to have satisfied the
13 requirement of personal reporting at an employment office, as
14 applied to a week in a period during which the requirements of
15 registration and seeking work have been waived by the commission
16 unemployment agency pursuant to this subdivision, if the
17 individual has satisfied the personal reporting requirement with
18 respect to a preceding week in that period and the individual has
19 reported with respect to the week by mail in accordance with the
20 rules promulgated by the commission.unemployment agency.
21 (b) The individual has made a claim for benefits in
22 accordance with section 32 and has provided the commission
23 unemployment agency with his or her social security number.
24 (c) The individual is able and available to appear at a
25 location of the unemployment agency's choosing for evaluation of
26 eligibility for benefits, if required, and to perform suitable
27 full-time work of a character which the individual is qualified
1 to perform by past experience or training, which is of a
2 character generally similar to work for which the individual has
3 previously received wages, and for which the individual is
4 available, full time, either at a locality at which the
5 individual earned wages for insured work during his or her base
6 period or at a locality where it is found by the commission
7 unemployment agency that such work is available. An individual is
8 considered unavailable for work under any of the following
9 circumstances:
10 (i) The individual fails during a benefit year to notify or
11 update a chargeable employer with telephone, electronic mail, or
12 other information sufficient to allow the employer to contact the
13 individual about available work.
14 (ii) The individual fails, without good cause, to respond to
15 the unemployment agency within 14 calendar days of the later of
16 the mailing of a notice to the address of record requiring the
17 individual to contact the unemployment agency or of the leaving
18 of a telephone message requesting a return call and providing a
19 return name and telephone number on an automated answering device
20 or with an individual answering the telephone number of record.
21 (iii) Unless the claimant shows good cause for failure to
22 respond, mail sent to the individual's address of record is
23 returned as undeliverable and the telephone number of record has
24 been disconnected or changed or is otherwise no longer associated
25 with the individual.
26 (d) In the event of the death of an individual's immediate
27 family member, the eligibility requirements of availability and
1 reporting shall be waived for the day of the death and for 4
2 consecutive calendar days thereafter. As used in this
3 subdivision, "immediate family member" means a spouse, child,
4 stepchild, adopted child, grandchild, parent, grandparent,
5 brother, or sister of the individual or his or her spouse. It
6 shall also include the spouse of any of the persons specified in
7 the previous sentence.
8 (e) The individual participates in reemployment services,
9 such as job search assistance services, if the individual has
10 been determined or redetermined by the commission unemployment
11 agency to be likely to exhaust regular benefits and need
12 reemployment services pursuant to a profiling system established
13 by the commission.unemployment
agency.
14 (2) The commission unemployment agency may
authorize an
15 individual with an unexpired benefit year to pursue vocational
16 training or retraining only if the commission unemployment agency
17 finds that:
18 (a) Reasonable opportunities for employment in occupations
19 for which the individual is fitted by training and experience do
20 not exist in the locality in which the individual is claiming
21 benefits.
22 (b) The vocational training course relates to an occupation
23 or skill for which there are, or are expected to be in the
24 immediate future, reasonable employment opportunities.
25 (c) The training course has been approved by a local
26 advisory council on which both management and labor are
27 represented, or if there is no local advisory council, by the
1 commission.unemployment
agency.
2 (d) The individual has the required qualifications and
3 aptitudes to complete the course successfully.
4 (e) The vocational training course has been approved by the
5 state board of education and is maintained by a public or private
6 school or by the commission.unemployment agency.
7 (3) Notwithstanding any other provision of this act, an
8 otherwise eligible individual shall not be ineligible for
9 benefits because he or she is participating in training with the
10 approval of the commission unemployment agency. For
each week
11 that the commission unemployment
agency finds that an individual
12 who is claiming benefits under this act and who is participating
13 in training with the approval of the commission unemployment
14 agency, is satisfactorily pursuing an approved course of
15 vocational training, it shall waive the requirements that he or
16 she be available for work and be seeking work as prescribed in
17 subsection (1)(a) and (c), and it shall find good cause for his
18 or her failure to apply for suitable work, report to a former
19 employer for an interview concerning suitable work, or accept
20 suitable work as required in section 29(1)(c), (d), and (e).
21 (4) The waiver of the requirement that a claimant seek work,
22 as provided in subsection (1)(a), shall not be applicable to
23 weeks of unemployment for which the claimant is claiming extended
24 benefits if section 64(8)(a)(ii) is in effect, unless the
25 individual is participating in training approved by the
26 commission.unemployment
agency.
27 (5) Notwithstanding any other provisions of this act, an
1 otherwise eligible individual shall not be denied benefits for
2 any week beginning after October 30, 1982 solely because the
3 individual is in training approved under section 236(a)(1) of the
4 trade act of 1974, as amended, 19 U.S.C. USC 2296,
nor shall the
5 individual be denied benefits by reason of leaving work to enter
6 such training if the work left is not suitable employment.
7 Furthermore, an otherwise eligible individual shall not be denied
8 benefits because of the application to any such week in training
9 of provisions of this act, or any applicable federal unemployment
10 compensation law, relating to availability for work, active
11 search for work, or refusal to accept work. For purposes of this
12 subsection, "suitable employment" means, with respect to an
13 individual, work of a substantially equal or higher skill level
14 than the individual's past adversely affected employment, as
15 defined for purposes of the trade act of 1974, 19 U.S.C. USC 2101
16 to 2495, and wages for that work at not less than 80% of the
17 individual's average weekly wage as determined for the purposes
18 of the trade act of 1974.
19 (6) For purposes of this section, for benefit years
20 beginning on or after January 1, 2013, to be actively engaged in
21 seeking work, an individual must conduct a systematic and
22 sustained search for work in each week the individual is claiming
23 benefits, using any of the following methods to report the
24 details of the work search:
25 (a) Reporting at monthly intervals on the unemployment
26 agency's online reporting system the name of each employer and
27 physical or online location of each employer where work was
1 sought and the date and method by which work was sought with each
2 employer.
3 (b) Filing a written report with the unemployment agency by
4 mail or facsimile transmission not later than the end of the
5 fourth calendar week after the end of the week in which the
6 individual engaged in the work search, on a form approved by the
7 unemployment agency, indicating the name of each employer and
8 physical or online location of each employer where work was
9 sought and the date and method by which work was sought with each
10 employer.
11 (c) Appearing at least monthly in person at a Michigan works
12 agency office to report the name and physical or online location
13 of each employer where the individual sought work during the
14 previous month and the date and method by which work was sought
15 with each employer.
16 (7) The work search conducted by the claimant is subject to
17 random audit by the unemployment agency.
18 Sec. 29. (1) Except as provided in subsection (5), an
19 individual is disqualified from receiving benefits if he or she:
20 (a) Left work voluntarily without good cause attributable to
21 the employer or employing unit. An individual who left work is
22 presumed to have left work voluntarily without good cause
23 attributable to the employer or employing unit. An individual who
24 is absent from work for a period of 3 consecutive work days or
25 more without contacting the employer in a manner acceptable to
26 the employer and of which the individual was informed at the time
27 of hire shall be considered to have voluntarily left work without
Senate Bill No. 806 as amended December 1, 2011
1 good cause attributable to the employer. An individual who
2 becomes unemployed as a result of negligently losing a
3 requirement for the job of which he or she was informed at the
4 time of hire shall be considered to have voluntarily left work
5 without good cause attributable to the employer. An individual
6 claiming benefits under this act has the burden of proof to
7 establish that he or she left work involuntarily or for good
8 cause that was attributable to the employer or employing unit. An
9 individual claiming to have left work involuntarily <<for medical
reasons>> must have
10 done all of the following before the leaving: secured a statement
11 from a medical professional that continuing in the individual's
12 current job would be harmful to the individual's physical or
13 mental health; unsuccessfully attempted to secure alternative
14 work with the employer; and unsuccessfully attempted to be placed
15 on a leave of absence with the employer to last until the
16 individual's mental or physical health would no longer be harmed
17
by the current job. However, if either
any of the following
18 conditions is met, the leaving does not disqualify the
19 individual:
20 (i) The individual has an established benefit year in effect
21 and during that benefit year leaves unsuitable work within 60
22 days after the beginning of that work.
23 (ii) The individual is the spouse of a full-time member of
24 the United States armed forces, and the leaving is due to the
25 military duty reassignment of that member of the United States
26 armed forces to a different geographic location. Benefits paid in
27 accordance with this subdivision shall not be charged to the
1 account of the employer the individual left, but shall be charged
2 instead to the nonchargeable benefit account.
3 (iii) The individual is concurrently working part-time for an
4 employer or employing unit and full-time for another employer or
5 employing unit and voluntarily leaves the part-time work and
6 continues the full-time work. The portion of the benefits paid in
7 accordance with this subdivision that would otherwise be charged
8 to the account of the part-time employer that the individual left
9 shall not be charged to the account of that employer, but shall
10 be charged instead to the nonchargeable benefit account.
11 (b) Was suspended or discharged for misconduct connected
12 with the individual's work or for intoxication while at work.
13 (c) Failed without good cause to apply diligently for
14 available suitable work after receiving from the employment
15 office or the commission notice
from the unemployment agency of
16 the availability of that work or failed to apply for work with
17 employers that could reasonably be expected to have suitable work
18 available.
19 (d) Failed without good cause while unemployed to report to
20 the individual's former employer or employing unit within a
21 reasonable time after that employer or employing unit provided
22 notice of the availability of an interview concerning available
23 suitable work with the former employer or employing unit.
24 (e) Failed without good cause to accept suitable work
25 offered to the individual or to return to the individual's
26 customary self-employment, if any, when directed by the
27 employment office or the commission unemployment agency. An
1 employer that receives a monetary determination under section 32
2 may notify the unemployment agency regarding the availability of
3 suitable work with the employer on the monetary determination or
4 other form provided by the unemployment agency. Upon receipt of
5 the notice of the availability of suitable work, the unemployment
6 agency shall notify the claimant of the availability of suitable
7 work.
8 (f) Lost his or her job due to absence from work resulting
9 from a violation of law for which the individual was convicted
10 and sentenced to jail or prison. This subdivision does not apply
11 if conviction of an individual results in a sentence to county
12 jail under conditions of day parole as provided in 1962 PA 60,
13 MCL 801.251 to 801.258, or if the conviction was for a traffic
14 violation that resulted in an absence of less than 10 consecutive
15 work days from the individual's place of employment.
16 (g) Is discharged, whether or not the discharge is
17 subsequently reduced to a disciplinary layoff or suspension, for
18 participation in either of the following:
19 (i) A strike or other concerted action in violation of an
20 applicable collective bargaining agreement that results in
21 curtailment of work or restriction of or interference with
22 production.
23 (ii) A wildcat strike or other concerted action not
24 authorized by the individual's recognized bargaining
25 representative.
26 (h) Was discharged for an act of assault and battery
27 connected with the individual's work.
1 (i) Was discharged for theft connected with the individual's
2 work.
3 (j) Was discharged for willful destruction of property
4 connected with the individual's work.
5 (k) Committed a theft after receiving notice of a layoff or
6 discharge, but before the effective date of the layoff or
7 discharge, resulting in loss or damage to the employer who would
8 otherwise be chargeable for the benefits, regardless of whether
9 the individual qualified for the benefits before the theft.
10 (l) Was employed by a temporary help firm, which as used in
11 this section means an employer whose primary business is to
12 provide a client with the temporary services of 1 or more
13 individuals under contract with the employer, to perform services
14 for a client of that firm if each of the following conditions is
15 met:
16 (i) The temporary help firm provided the employee with a
17 written notice before the employee began performing services for
18 the client stating in substance both of the following:
19 (A) That within 7 days after completing services for a
20 client of the temporary help firm, the employee is under a duty
21 to notify the temporary help firm of the completion of those
22 services.
23 (B) That a failure to provide the temporary help firm with
24 notice of the employee's completion of services pursuant to sub-
25 subparagraph (A) constitutes a voluntary quit that will affect
26 the employee's eligibility for unemployment compensation should
27 the employee seek unemployment compensation following completion
1 of those services.
2 (ii) The employee did not provide the temporary help firm
3 with notice that the employee had completed his or her services
4 for the client within 7 days after completion of his or her
5 services for the client.
6 (m) Was discharged for illegally ingesting, injecting,
7 inhaling, or possessing a controlled substance on the premises of
8 the employer; refusing to submit to a drug test that was required
9 to be administered in a nondiscriminatory manner; or testing
10 positive on a drug test, if the test was administered in a
11 nondiscriminatory manner. If the worker disputes the result of
12 the testing, and if a generally accepted confirmatory test shall
13 be administered and shall also indicate a positive result for the
14 presence of a controlled substance before a disqualification of
15 the worker under this subdivision. has not been administered on
16 the same sample previously tested, then a generally accepted
17 confirmatory test shall be administered on that sample. If the
18 confirmatory test also indicates a positive result for the
19 presence of a controlled substance, the worker who is discharged
20 as a result of the test result will be disqualified under this
21 subdivision. A report by a drug testing facility showing a
22 positive result for the presence of a controlled substance is
23 conclusive unless there is substantial evidence to the contrary.
24 As used in this subdivision:
25 (i) "Controlled substance" means that term as defined in
26 section 7104 of the public health code, 1978 PA 368, MCL
27 333.7104.
1 (ii) "Drug test" means a test designed to detect the illegal
2 use of a controlled substance.
3 (iii) "Nondiscriminatory manner" means administered
4 impartially and objectively in accordance with a collective
5 bargaining agreement, rule, policy, a verbal or written notice,
6 or a labor-management contract.
7 (n) Theft from the employer that resulted in the employee's
8 conviction, within 2 years of the date of the discharge, of theft
9 or a lesser included offense.
10 (2) A disqualification under subsection (1) begins the week
11 in which the act or discharge that caused the disqualification
12 occurs and continues until the disqualified individual
13 requalifies under subsection (3), except that for benefit years
14 beginning before October 1, 2000, the disqualification does not
15 prevent the payment of benefits if there are credit weeks, other
16 than multiemployer credit weeks, after the most recent
17 disqualifying act or discharge.
18 (3) After the week in which the disqualifying act or
19 discharge described in subsection (1) occurs, an individual who
20 seeks to requalify for benefits is subject to all of the
21 following:
22 (a) For benefit years established before October 1, 2000,
23 the individual shall complete 6 requalifying weeks if he or she
24 was disqualified under subsection (1)(c), (d), (e), (f), (g), or
25 (l), or 13 requalifying weeks if he or she was disqualified under
26 subsection (1)(h), (i), (j), (k), or (m). A requalifying week
27 required under this subdivision is each week in which the
1 individual does any of the following:
2 (i) Earns or receives remuneration in an amount at least
3 equal to an amount needed to earn a credit week, as that term is
4 defined in section 50.
5 (ii) Otherwise meets all of the requirements of this act to
6 receive a benefit payment if the individual were not disqualified
7 under subsection (1).
8 (iii) Receives a benefit payment based on credit weeks
9 subsequent to the disqualifying act or discharge.
10 (b) For benefit years established before October 1, 2000, if
11 the individual is disqualified under subsection (1)(a) or (b), he
12 or she shall requalify, after the week in which the disqualifying
13 discharge occurred by earning in employment for an employer
14 liable under this act or the unemployment compensation act of
15 another state an amount equal to, or in excess of, 7 times the
16 individual's potential weekly benefit rate, calculated on the
17 basis of employment with the employer involved in the
18 disqualification, or by earning in employment for an employer
19 liable under this act or the unemployment compensation act of
20 another state an amount equal to, or in excess of, 40 times the
21 state minimum hourly wage times 7, whichever is the lesser
22 amount.
23 (c) For benefit years established before October 1, 2000, a
24 benefit payable to an individual disqualified under subsection
25 (1)(a) or (b) shall be charged to the nonchargeable benefits
26 account, and not to the account of the employer with whom the
27 individual was involved in the disqualification.
1 (d) For benefit years beginning on or after October 1, 2000,
2 after the week in which the disqualifying act or discharge
3 occurred, an individual shall complete 13 requalifying weeks if
4 he or she was disqualified under subsection (1)(c), (d), (e),
5 (f), (g), or (l), or 26 requalifying weeks if he or she was
6 disqualified under subsection (1)(h), (i), (j), (k), or (m), or
7 (n). A requalifying week required under this subdivision is each
8 week in which the individual does any of the following:
9 (i) Earns or receives remuneration in an amount equal to at
10 least 1/13 of the minimum amount needed in a calendar quarter of
11 the base period for an individual to qualify for benefits,
12 rounded down to the nearest whole dollar.
13 (ii) Otherwise meets all of the requirements of this act to
14 receive a benefit payment if the individual was not disqualified
15 under subsection (1).
16 (e) For benefit years beginning on or after October 1, 2000
17 and beginning before April 26, 2002, if the individual is
18 disqualified under subsection (1)(a) or (b), he or she shall
19 requalify, after the week in which the disqualifying act or
20 discharge occurred by earning in employment for an employer
21 liable under this act or the unemployment compensation law of
22 another state at least the lesser of the following:
23 (i) Seven times the individual's weekly benefit rate.
24 (ii) Forty times the state minimum hourly wage times 7.
25 (f) For benefit years beginning on or after April 26, 2002,
26 if the individual is disqualified under subsection (1)(a), he or
27 she shall requalify, after the week in which the disqualifying
1 act or discharge occurred by earning in employment for an
2 employer liable under this act or the unemployment compensation
3 law of another state at least 12 times the individual's weekly
4 benefit rate.
5 (g) For benefit years beginning on or after April 26, 2002,
6 if the individual is disqualified under subsection (1)(b), he or
7 she shall requalify, after the week in which the disqualifying
8 act or discharge occurred by earning in employment for an
9 employer liable under this act or the unemployment compensation
10 law of another state at least 17 times the individual's weekly
11 benefit rate.
12 (h) A benefit payable to the individual disqualified or
13 separated under disqualifying circumstances under subsection
14 (1)(a) or (b), shall be charged to the nonchargeable benefits
15 account, and not to the account of the employer with whom the
16 individual was involved in the separation. Benefits payable to an
17 individual determined by the commission unemployment agency to be
18 separated under disqualifying circumstances shall not be charged
19 to the account of the employer involved in the disqualification
20 for any period after the employer notifies the commission
21 unemployment agency of the claimant's possible ineligibility or
22 disqualification. However, an individual filing a new claim for
23 benefits who reports the reason for separation from a base period
24 employer as a voluntary leaving shall be presumed to have
25 voluntarily left without good cause attributable to the employer
26 and shall be disqualified unless the individual provides
27 substantial evidence to rebut the presumption. If a disqualifying
1 act or discharge occurs during the individual's benefit year, any
2 benefits that may become payable to the individual in a later
3 benefit year based on employment with the employer involved in
4 the disqualification shall be charged to the nonchargeable
5 benefits account.
6 (4) The maximum amount of benefits otherwise available under
7 section 27(d) to an individual disqualified under subsection (1)
8 is subject to all of the following conditions:
9 (a) For benefit years established before October 1, 2000, if
10 the individual is disqualified under subsection (1)(c), (d), (e),
11 (f), (g), or (l) and the maximum amount of benefits is based on
12 wages and credit weeks earned from an employer before an act or
13 discharge involving that employer, the amount shall be reduced by
14 an amount equal to the individual's weekly benefit rate as to
15 that employer multiplied by the lesser of either of the
16 following:
17 (i) The number of requalifying weeks required of the
18 individual under this section.
19 (ii) The number of weeks of benefit entitlement remaining
20 with that employer.
21 (b) If the individual has insufficient or no potential
22 benefit entitlement remaining with the employer involved in the
23 disqualification in the benefit year in existence on the date of
24 the disqualifying determination, a reduction of benefits
25 described in this subsection applies in a succeeding benefit year
26 with respect to any benefit entitlement based upon credit weeks
27 earned with the employer before the disqualifying act or
1 discharge.
2 (c) For benefit years established before October 1, 2000, an
3 individual disqualified under subsection (1)(h), (i), (j), (k),
4 or (m) is not entitled to benefits based on wages and credit
5 weeks earned before the disqualifying act or discharge with the
6 employer involved in the disqualification.
7 (d) The benefit entitlement of an individual disqualified
8 under subsection (1)(a) or (b) is not subject to reduction as a
9 result of that disqualification.
10 (e) A denial or reduction of benefits under this subsection
11 does not apply to benefits based upon multiemployer credit weeks.
12 (f) For benefit years established on or after October 1,
13 2000, if the individual is disqualified under subsection (1)(c),
14 (d), (e), (f), (g), or (l), the maximum number of weeks otherwise
15 applicable in calculating benefits for the individual under
16 section 27(d) shall be reduced by the lesser of the following:
17 (i) The number of requalifying weeks required of the
18 individual under this section.
19 (ii) The number of weeks of benefit entitlement remaining on
20 the claim.
21 (g) For benefit years beginning on or after October 1, 2000,
22 the benefits of an individual disqualified under subsection
23 (1)(h), (i), (j), (k), or (m), or (n) shall be reduced by
13
24 weeks and any weekly benefit payments made to the claimant
25 thereafter shall be reduced by the portion of the payment
26 attributable to base period wages paid by the base period
27 employer involved in a disqualification under subsection (1)(h),
1 (i), (j), (k), or (m),
or (n).
2 (5) If an individual leaves work employment to accept
3 permanent full-time work employment with another
employer and
4 performs services for that employer, or if an individual leaves
5 work employment to accept a recall from a former employer, all of
6 the following apply:
7 (a) Subsection (1) does not apply.
8 (b) Wages earned with the employer whom the individual last
9 left, including wages previously transferred under this
10 subsection to the last employer, for the purpose of computing and
11 charging benefits, are wages earned from the employer with whom
12 the individual accepted work or recall, and benefits paid based
13 upon those wages shall be charged to that employer.
14 (c) When issuing a determination covering the period of
15 employment with a new or former employer described in this
16 subsection, the commission unemployment agency shall
advise the
17 chargeable employer of the name and address of the other
18 employer, the period covered by the employment, and the extent of
19 the benefits that may be charged to the account of the chargeable
20 employer.
21 (6) In determining whether work is suitable for an
22 individual, the commission unemployment agency shall
consider the
23 degree of risk involved to the individual's health, safety, and
24 morals, the individual's physical fitness and prior training, the
25 individual's length of unemployment and prospects for securing
26 local work in the individual's customary occupation, and the
27 distance of the available work from the individual's residence.
1 Additionally, the commission unemployment agency shall
consider
2 the individual's experience and prior earnings, but an unemployed
3 individual who refuses an offer of work determined to be suitable
4 under this section shall be denied benefits if the pay rate for
5 that work is at least 70% of the gross pay rate he or she
6 received immediately before becoming unemployed. Beginning
7 January 15, 2012, after an individual has received benefits for
8 50% of the benefit weeks in the individual's benefit year, work
9 shall not be considered unsuitable because it is outside of the
10 individual's training or experience or unsuitable as to pay rate
11 if the pay rate for that work meets or exceeds the minimum wage;
12 is at least the prevailing mean wage for similar work in the
13 locality for the most recent full calendar year for which data
14 are available as published by the department of technology,
15 management, and budget as "wages by job title", by standard
16 metropolitan statistical area; and is 120% or more of the
17 individual's weekly benefit amount.
18 (7) Work is not suitable and benefits shall not be denied
19 under this act to an otherwise eligible individual for refusing
20 to accept new work under any of the following conditions:
21 (a) If the position offered is vacant due directly to a
22 strike, lockout, or other labor dispute.
23 (b) If the remuneration, hours, or other conditions of the
24 work offered are substantially less favorable to the individual
25 than those prevailing for similar work in the locality.
26 (c) If as a condition of being employed, the individual
27 would be required to join a company union or to resign from or
1 refrain from joining a bona fide labor organization.
2 (8) All of the following apply to an individual who seeks
3 benefits under this act:
4 (a) An individual is disqualified from receiving benefits
5 for a week in which the individual's total or partial
6 unemployment is due to either of the following:
7 (i) A labor dispute in active progress at the place at which
8 the individual is or was last employed, or a shutdown or start-up
9 operation caused by that labor dispute.
10 (ii) A labor dispute, other than a lockout, in active
11 progress or a shutdown or start-up operation caused by that labor
12 dispute in any other establishment within the United States that
13 is both functionally integrated with the establishment described
14 in subparagraph (i) and operated by the same employing unit.
15 (b) An individual's disqualification imposed or imposable
16 under this subsection is terminated if the individual performs
17 services in employment with an employer in at least 2 consecutive
18 weeks falling wholly within the period of the individual's total
19 or partial unemployment due to the labor dispute, and in addition
20 earns wages in each of those weeks in an amount equal to or
21 greater than the individual's actual or potential weekly benefit
22 rate. with respect to those weeks based on the
individual's
23 employment with the employer involved in the labor dispute.
24 (c) An individual is not disqualified under this subsection
25 if the individual is not directly involved in the labor dispute.
26 An individual is not directly involved in a labor dispute unless
27 any of the following are established:
1 (i) At the time or in the course of a labor dispute in the
2 establishment in which the individual was then employed, the
3 individual in concert with 1 or more other employees voluntarily
4 stopped working other than at the direction of the individual's
5 employing unit.
6 (ii) The individual is participating in, financing, or
7 directly interested in the labor dispute that causes the
8 individual's total or partial unemployment. The payment of
9 regular union dues, in amounts and for purposes established
10 before the inception of the labor dispute, is not financing a
11 labor dispute within the meaning of this subparagraph.
12 (iii) At any time a labor dispute in the establishment or
13 department in which the individual was employed does not exist,
14 and the individual voluntarily stops working, other than at the
15 direction of the individual's employing unit, in sympathy with
16 employees in some other establishment or department in which a
17 labor dispute is in progress.
18 (iv) The individual's total or partial unemployment is due to
19 a labor dispute that was or is in progress in a department, unit,
20 or group of workers in the same establishment.
21 (d) As used in this subsection, "directly interested" shall
22 be construed and applied so as not to disqualify individuals
23 unemployed as a result of a labor dispute the resolution of which
24 may not reasonably be expected to affect their wages, hours, or
25 other conditions of employment, and to disqualify individuals
26 whose wages, hours, or conditions of employment may reasonably be
27 expected to be affected by the resolution of the labor dispute. A
1 "reasonable expectation" of an effect on an individual's wages,
2 hours, or other conditions of employment exists, in the absence
3 of a substantial preponderance of evidence to the contrary, in
4 any of the following situations:
5 (i) If it is established that there is in the particular
6 establishment or employing unit a practice, custom, or
7 contractual obligation to extend within a reasonable period to
8 members of the individual's grade or class of workers in the
9 establishment in which the individual is or was last employed
10 changes in terms and conditions of employment that are
11 substantially similar or related to some or all of the changes in
12 terms and conditions of employment that are made for the workers
13 among whom there exists the labor dispute that has caused the
14 individual's total or partial unemployment.
15 (ii) If it is established that l of the issues in or purposes
16 of the labor dispute is to obtain a change in the terms and
17 conditions of employment for members of the individual's grade or
18 class of workers in the establishment in which the individual is
19 or was last employed.
20 (iii) If a collective bargaining agreement covers both the
21 individual's grade or class of workers in the establishment in
22 which the individual is or was last employed and the workers in
23 another establishment of the same employing unit who are actively
24 participating in the labor dispute, and that collective
25 bargaining agreement is subject by its terms to modification,
26 supplementation, or replacement, or has expired or been opened by
27 mutual consent at the time of the labor dispute.
1 (e) In determining the scope of the grade or class of
2 workers, evidence of the following is relevant:
3 (i) Representation of the workers by the same national or
4 international organization or by local affiliates of that
5 national or international organization.
6 (ii) Whether the workers are included in a single, legally
7 designated, or negotiated bargaining unit.
8 (iii) Whether the workers are or within the past 6 months have
9 been covered by a common master collective bargaining agreement
10 that sets forth all or any part of the terms and conditions of
11 the workers' employment, or by separate agreements that are or
12 have been bargained as a part of the same negotiations.
13 (iv) Any functional integration of the work performed by
14 those workers.
15 (v) Whether the resolution of those issues involved in the
16 labor dispute as to some of the workers could directly or
17 indirectly affect the advancement, negotiation, or settlement of
18 the same or similar issues in respect to the remaining workers.
19 (vi) Whether the workers are currently or have been covered
20 by the same or similar demands by their recognized or certified
21 bargaining agent or agents for changes in their wages, hours, or
22 other conditions of employment.
23 (vii) Whether issues on the same subject matter as those
24 involved in the labor dispute have been the subject of proposals
25 or demands made upon the employing unit that would by their terms
26 have applied to those workers.
27 (9) Notwithstanding subsections (1) to (8), if the employing
1 unit submits notice to the commission unemployment agency of
2 possible ineligibility or disqualification beyond the time limits
3 prescribed by commission unemployment agency rule,
the notice
4 shall not form the basis of a determination of ineligibility or
5 disqualification for a claim period compensated before the
6 receipt of the notice by the commission.unemployment agency.
7 (10) An individual is disqualified from receiving benefits
8 for any week or part of a week in which the individual has
9 received, is receiving, or is seeking unemployment benefits under
10 an unemployment compensation law of another state or of the
11 United States. If the appropriate agency of the other state or of
12 the United States finally determines that the individual is not
13 entitled to unemployment benefits, the disqualification described
14 in this subsection does not apply.
15 Sec. 32a. (1) Upon application by an interested party for
16 review of a determination, upon request for transfer to a referee
17 an administrative law judge for a hearing filed with the
18 commission unemployment
agency within 30 days after the mailing
19 or personal service of a notice of determination, or upon the
20 commission's unemployment
agency's own motion within that 30-day
21 period, the commission unemployment
agency shall review any
22 determination. After review, the commission unemployment agency
23 shall issue a redetermination affirming, modifying, or reversing
24 the prior determination and stating the reasons for the
25 redetermination, or may in its discretion transfer the matter to
26 a referee an
administrative law judge for a hearing.
If a
27 redetermination is issued, the commission unemployment agency
1 shall promptly notify the interested parties of the
2 redetermination, the redetermination is final unless within 30
3 days after the mailing or personal service of a notice of the
4 redetermination an appeal is filed with the commission
5
unemployment agency for a hearing on
the redetermination before a
6 referee an
administrative law judge in accordance
with section
7 33.
8 (2) The commission unemployment agency may, for
good cause,
9 including any administrative clerical error, reconsider a prior
10 determination or redetermination after the 30-day period has
11 expired and after reconsideration issue a redetermination
12 affirming, modifying, or reversing the prior determination or
13 redetermination, or transfer the matter to a referee an
14 administrative law judge for a hearing. A reconsideration shall
15 not be made unless the request is filed with the commission
16 unemployment agency , or reconsideration is initiated by the
17 commission unemployment
agency with notice to the interested
18 parties, within 1 year from the date of mailing or personal
19 service of the original determination on the disputed issue.
20 (3) If an interested party fails to file a protest within
21 the 30-day period and the commission unemployment agency for good
22 cause reconsiders a prior determination or redetermination and
23 issues a redetermination, a disqualification, or an ineligibility
24 imposed thereunder, other than an ineligibility imposed due to
25 receipt of retroactive pay, the redetermination,
26 disqualification, or ineligibility does not apply to a
27 compensable period for which benefits were paid or are payable
1 unless the benefits were obtained as a result of an
2 administrative clerical error, a false statement, or a
3 nondisclosure or misrepresentation of a material fact by the
4 claimant. However, the redetermination is final unless within 30
5 days after the date of mailing or personal service of the notice
6 of redetermination an appeal is filed for a hearing on the
7 redetermination before a referee an administrative law judge in
8 accordance with section 33.
9 (4) In addition to the transfer provisions in subsections
10 (1) and (2), both of the following apply:
11 (a) If both the claimant and the employer agree, the matter
12 may be transferred directly to a referee an administrative law
13 judge in a case involving the payment of unemployment benefits.
14 (b) If both the commission unemployment agency and the
15 employer agree, the matter may be transferred directly to a
16 referee an
administrative law judge in a case
involving
17 unemployment contributions or reimbursements in lieu of
18 contributions.
19 Sec. 32b. (1) Not later than 6 months after the effective
20 date of the amendatory act that added this section, the The
21 unemployment agency shall establish and provide access to a
22 secure internet site to enable employers to determine if
23 correspondence sent to the unemployment agency by the employer
24 has been received.
25 (2) Within 10 days of receiving a request for
26 redetermination or a protest or appeal from an employer or
27 employing unit, the unemployment agency shall post a statement
1 confirming receipt of the request for redetermination or protest
2 or appeal from that employer or employing unit on the internet
3 site required under subsection (1).
4 (3) A protest or appeal shall be signed or verified in a
5 manner prescribed by administrative rule and shall be transmitted
6 to the agency by mail, facsimile, or other electronic method
7 approved by the agency. If a party submits an unsigned or
8 unverified protest or appeal, the unemployment agency shall
9 notify the party of the defect that prevents the agency from
10 accepting the protest or appeal.
11 Sec. 33. (1) The commission shall appoint an adequate number
12 of impartial referees to hear and decide appeals An appeal from a
13 redetermination issued by the commission agency in
accordance
14 with section 32a or to hear and decide a matter transferred for
15 hearing and decision in accordance with section 32a shall be
16 referred to the Michigan administrative hearing system for
17
assignment to an administrative law judge.
If the commission
18 agency transfers a matter, or an interested party requests a
19 hearing before a referee an administrative law judge on
a
20 redetermination, all matters pertinent to the claimant's benefit
21 rights or to the liability of the employing unit under this act
22 shall be referred to a referee. the administrative law judge. The
23 referee administrative
law judge shall afford all interested
24 parties a reasonable opportunity for a fair hearing and, unless
25 the appeal is withdrawn, the referee administrative law judge
26 shall decide the rights of the interested parties and shall
27 notify the interested parties of the decision, within
60 days,
1 setting forth the findings of fact upon which the decision is
2 based, together with the reasons for the decision. However, with
3 With respect to an appeal from a denial of redetermination, if
4 the referee administrative
law judge finds that there was good
5 cause for the issuance of a redetermination, the denial shall be
6 a redetermination affirming the determination and the appeal from
7 the denial shall be an appeal from that affirmance. However, when
8 the same or substantially similar evidence is material to the
9 matter in issue with respect to more than 1 interested party, the
10 same time and place for considering all the cases may be fixed,
11 hearing on the cases jointly conducted, a single record of the
12 proceedings made, and evidence introduced with respect to 1
13 proceeding considered as introduced in the others, if an
14 interested party is not prejudiced thereby. Unless an interested
15 party would be unduly prejudiced, an administrative law judge may
16 consolidate cases involving the same or substantially similar
17 evidence or issues, hear the consolidated cases at the same date
18 and time, create a single record of proceedings, and consider
19 evidence introduced in 1 of those cases in the other cases. If
20 the appellant fails to appear or prosecute the appeal, the
21 referee administrative
law judge may dismiss the proceedings
or
22 take other action considered advisable. A referee An
23 administrative law judge may, either upon application for
24 rehearing by an interested party or on his or her own motion,
25 proceed to rehear, affirm, modify, set aside, or reverse a prior
26 decision on the basis of the evidence previously submitted in the
27 case, or on the basis of additional evidence. However, the The
1 application or motion shall be made within 30 days after the date
2 of mailing of the decision. The referee administrative law judge
3 may, for good cause, reopen and review a prior decision of a
4 referee and issue a new
decision after the 30-day appeal period
5 has expired. However, a A
request for review shall be made within
6 1 year after the date of mailing of the prior decision. A referee
7 An administrative law judge shall not participate in a case in
8 which he or she has a direct or indirect interest.
9 (2) An interested party within Within 30
days after the
10 mailing of a copy of a decision of the referee administrative law
11 judge or of a denial of a motion for rehearing, an interested
12
party may file an appeal to the board
of review, Michigan
13 compensation appellate commission, and unless such an appeal is
14 filed, the decision or denial shall be by the administrative law
15 judge is final.
16 (3) A writing prepared, owned, used, in the possession of,
17 or retained by a referee in the performance of an official
18 function shall be made available to the public in compliance with
19 Act No. 442 of the Public Acts of 1976, being sections 15.231 to
20 15.246 of the Michigan Compiled Laws.
21 Sec. 34. (1) The Michigan compensation appellate commission
22 created in Executive Reorganization Order No. 2011-6, MCL
23 445.2032, has full authority to handle, process, and decide
24 appeals filed under section 33(2).
25
(2) An appeal to the board of
review Michigan compensation
26 appellate commission from the findings of fact and decision of
27 the referee administrative
law judge or from a denial by the
1 referee administrative
law judge of a motion for a rehearing
or
2 reopening , shall
be a matter of right by an interested party.
3 The board of review Michigan
compensation appellate commission,
4 on the basis of evidence previously submitted and additional
5 evidence as it requires, shall affirm, modify, set aside, or
6 reverse the findings of fact and decision of the referee
7
administrative law judge or a denial by
the referee
8 administrative law judge of a motion for rehearing or reopening.
9 (3) The agency is an interested party in a matter before an
10 administrative law judge, the Michigan compensation appellate
11 commission, or a court, but notice of hearing is not required to
12 be provided to the agency for a hearing before an administrative
13 law judge or the Michigan compensation appellate commission.
14
(4) The board Michigan compensation appellate commission
15 shall conduct an oral hearing in a matter before the board it
16 only after an application for the hearing is made by an
17 interested party and the application is approved by 2 or more
18 members of the board Michigan
compensation appellate commission
19 assigned to review the appeal. If an application for an oral
20 hearing is not approved, the board shall not Michigan
21 compensation appellate commission may consider a written argument
22 unless if an
application for written argument is approved by 2 or
23 more members of the Michigan compensation appellate commission
24 assigned to review the appeal and all parties are represented or
25 all parties agree that written argument should be considered. If
26 neither an oral hearing is held nor written argument considered,
27 the board Michigan
compensation appellate commission shall
decide
1 the case on the referee record before the administrative law
2
judge. The board shall notify each
interested party of its
3 decision or order within 60 days after the date of the last board
4 of review hearing on a contested matter.
5
(5) The board Michigan compensation appellate commission, in
6 its discretion, may omit the giving of reasons the basis for its
7
decision in cases where in which it affirms the decision of a
8 referee is affirmed an
administrative law judge without
9 alteration or modification.
10
(6) If the appellant fails to
appear, the board of review
11 Michigan compensation appellate commission may dismiss the
12 proceedings or take other action as it may deem it considers
13 advisable.
14
(7) The board of review Michigan compensation appellate
15 commission may, either upon application by an interested party
16 for rehearing or on its own motion, proceed to rehear, affirm,
17 modify, set aside, or reverse a prior decision on the basis of
18 the evidence previously submitted in that case, or on the basis
19 of additional evidence if the application or motion is made
20 within 30 days after the date of mailing of the prior decision.
21 The board of review Michigan
compensation appellate commission
22 may, for good cause, reopen and review a prior decision of the
23 board of review Michigan
compensation appellate commission and
24 issue a new decision after the 30-day appeal period has expired,
25 but a review shall not be made unless the request is filed with
26 the board Michigan
compensation appellate commission, or
review
27 is initiated by the board Michigan compensation appellate
1 commission with notice to the interested parties, within 1 year
2 after the date of mailing of the prior decision. Unless an
3 interested party, within 30 days after mailing of a copy of a
4 decision of the board of review Michigan compensation appellate
5 commission or of a denial of a motion for a rehearing, files an
6 appeal from the decision or denial, or seeks judicial review as
7 provided in section 38, the decision shall be final.
8 (8) The Michigan compensation appellate commission may on
9 its own motion affirm, modify, set aside, or reverse a decision
10 or order of an administrative law judge on the basis of the
11 evidence previously submitted in the case; direct the taking of
12 additional evidence; or permit a party to the decision or order
13 to initiate further appeals before it. The Michigan compensation
14 appellate commission shall permit a further appeal by a party
15 interested in a decision or order of an administrative law judge
16 or by the Michigan compensation appellate commission if its
17 initial ruling has been overruled or modified. The Michigan
18 compensation appellate commission may remove to itself or direct
19 the Michigan administrative hearing system to transfer to another
20 administrative law judge the proceedings on appeal, rehearing, or
21 review pending before an administrative law judge. The Michigan
22 compensation appellate commission shall promptly notify the
23 interested parties of its findings and decisions.
24 (9) A member of the Michigan compensation appellate
25 commission may administer oaths and take depositions.
26 (10) The testimony at a hearing before an administrative law
27 judge or the Michigan compensation appellate commission shall be
1 recorded, but need not be transcribed unless requested by the
2 majority of the panel of the Michigan compensation appellate
3 commission assigned to hear the claim. If an interested party
4 wants a copy of a transcript of a hearing held before an
5 administrative law judge or the Michigan compensation appellate
6 commission, an interested party may request and shall be provided
7 a transcript. An interested party who requests a transcript is
8 responsible for the cost of the transcript.
9 (11) The manner in which an appeal to an administrative law
10 judge and the Michigan compensation appellate commission shall be
11 presented, the appeal reports required from an interested party,
12 and the procedure governing the appeal shall be in accordance
13 with rules promulgated by the Michigan administrative hearing
14 system.
15 Sec. 37. (1) Witnesses subpoenaed pursuant to this act shall
16 be allowed fees at the rate fixed by law. The fees and expenses
17 of proceedings involving disputed determinations, decisions, or
18 notices of assessments before a referee an administrative law
19
judge or the board of review Michigan compensation appellate
20 commission shall be considered a part of the expense of
21 administering this act.
22 (2) If an interested party to a hearing formally requests
23 the commission, a referee, an
administrative law judge or the
24 board of review Michigan
compensation appellate commission to
25 obtain a subpoena for witnesses whose evidence it considers
26 necessary, the commission, referee or board of review an
27 administrative law judge or the Michigan compensation appellate
1 commission shall promptly issue the subpoena as provided in
2 sections 9 and 35 of this
act, unless the request is determined
3 to be unreasonable.
4 Sec. 38. (1) The circuit court in the county in which the
5 claimant resides or the circuit court in the county in which the
6 claimant's place of employment is or was located, or, if a
7 claimant is not a party to the case, the circuit court in the
8 county in which the employer's principal place of business in
9 this state is located, may review questions of fact and law on
10 the record made before the referee administrative law judge and
11 the board of review Michigan
compensation appellate commission
12 involved in a final order or decision of the board, Michigan
13 compensation appellate commission, and may make further orders in
14 respect to that order or decision as justice may require, but the
15 court may reverse an order or decision only if it finds that the
16 order or decision is contrary to law or is not supported by
17 competent, material, and substantial evidence on the whole
18 record. Application for review shall be made within 30 days after
19 the mailing of a copy of the order or decision by any method
20 permissible under the rules and practices of the circuit court of
21 this state.
22 (2) An order or decision of a hearing referee an
23 administrative law judge that involves a claim for unemployment
24 benefits may be appealed directly to the circuit court if the
25 claimant and the employer or their authorized agents or attorneys
26 agree to do so by written stipulation filed with the referee. A
27 hearing referee's administrative
law judge. An administrative law
1 judge's order or decision involving an employer's contributions
2 or payments in lieu of contributions under this act may be
3 appealed directly to the circuit court if the employer and
4 commission execute and file with the hearing referee based on a
5 written stipulation agreeing to the direct appeal to the circuit
6 court.
7 (3) The commission unemployment agency is a
party to any
8 judicial action involving an order or decision of the board of
9 review or a referee.Michigan
compensation appellate commission or
10 an administrative law judge.
11 (4) The decision of the circuit court may be appealed in the
12 manner provided by the laws of this state for appeals from the
13 circuit court.
14 Sec. 42. (1) "Employment" means service, including service
15 in interstate commerce, performed for remuneration or under any
16 contract of hire, written or oral, express or implied.
17 (2) "Employment" includes an individual's entire service,
18 performed within or both within and without this state if any of
19 the following apply:
20 (a) The service is localized in this state. Service shall be
21 deemed to be localized within a state if the service is performed
22 entirely within the state; or the service is performed both
23 within and without the state, but the service performed without
24 the state is incidental to the individual's service within the
25 state, such as service which is temporary or transitory in nature
26 or consists of isolated transactions.
27 (b) The service is not localized in a state but some of the
1 service performed in this state and the base of operations, or,
2 if there is not a base of operations, then the place from which
3 the service is directed or controlled, is in this state; or the
4 base of operations or place from which the service is directed or
5 controlled is not in a state in which some part of the service is
6 performed, but the individual's residence is in this state.
7 (c) After December 31, 1964, the service is not localized in
8 any state but is performed by an employee on or in connection
9 with an American aircraft, if either the contract of service is
10 entered into within this state or if the contract of service is
11 not entered into within this state or within any other state and
12 during the performance of the contract of service and while the
13 employee is employed on the aircraft, it touches at an airfield
14 in this state, and the employee is employed on and in connection
15 with the aircraft when outside the United States. The commission
16 unemployment agency may enter into reciprocal agreements with
17 other states with respect to aircraft which touch airfields in
18 more than 1 state.
19 (3) Service performed within this state but not covered
20 under subsection (2) and not excluded under section 43 shall be
21 deemed to be employment subject to this act if contributions are
22 not required and paid with respect to those services under an
23 unemployment compensation law of any other state or of the
24 federal government.
25 (4) Services, not covered under subsection (2), performed
26 entirely without this state, for which contributions are not
27 required and paid under an unemployment compensation law of any
1 other state or of the federal government, shall be deemed to be
2 employment subject to this act if the commission unemployment
3 agency approves the election of the employer for whom the
4 services are performed that the entire service of the individual
5 shall be deemed to be employment subject to this act. Such an
6 election may be canceled by the employer by filing a written
7 notice with the commission unemployment agency before
January 30
8 of any year stating the employer's desire to cancel the election
9 or at any time by submitting to the commission unemployment
10 agency satisfactory proof that the services designated in the
11 election are covered by an unemployment compensation law of
12 another state or of the federal government, or if the services
13 are covered by an arrangement pursuant to section 11 between the
14 commission unemployment
agency and the agency charged with the
15 administration of any other state or federal unemployment
16 compensation law, pursuant to which all services performed by an
17 individual for an employing unit are deemed to be performed
18 entirely within the state, shall be deemed to be employment if
19 the commission unemployment
agency has approved an election of
20 the employing unit for which the services are performed, pursuant
21 to which the entire service of the individual during the period
22 covered by the election is deemed to be employment.
23 (5) Services Before
January 1, 2013, services performed by
24 an individual for remuneration shall not be deemed to be are not
25 employment subject to this act, unless the individual is under
26 the employer's control or direction as to the performance of the
27 services both under a contract for hire and in fact. Service
1 performed by an individual for remuneration under an exclusive
2 contract which that
provides for the individual's control
and
3 direction by a person, firm, or corporation possessing a public
4 service permit or by a certificated motor carrier transporting
5 goods or property for hire shall be deemed are employment
subject
6 to this act. Service is employment under this act if it is
7 performed by an individual who by lease, contract, or arrangement
8 places at the disposal of a person, firm, or corporation a piece
9 of motor vehicle equipment and under a contract of hire ,
which
10 that provides for the individual's control and direction, is
11 engaged by the person, firm, or corporation to operate the motor
12 vehicle equipment. shall be deemed to be employment subject to
13 this act.On and after
January 1, 2013, services are employment if
14 the services are performed by an individual who the agency
15 determines to be in an employer-employee relationship using the
16 20-factor test announced by the internal revenue service of the
17 United States department of treasury in revenue ruling 87-41, 1
18 C.B. 296. An individual from whom an employer is required to
19 withhold federal income tax is prima facie considered to perform
20 services in employment under this act.
21 (6) Notwithstanding section 43, services performed for an
22 employing unit, for which the employing unit is liable for
23 federal tax against which credit may be taken for contributions
24 required to be paid into a state unemployment compensation fund,
25 shall be deemed to constitute employment for the purposes of this
26 act, but only to the extent that the services constitute
27 employment with respect to which federal tax is payable.
1 Notwithstanding any other provision of this act or any amendatory
2 act, services performed for an employing unit which are required
3 to be covered under this act, as a condition for its
4 certification by the United States secretary of labor, shall
5 constitute employment for the purposes of this act. The
6 commission unemployment
agency may waive the provisions of this
7 subsection with respect to services performed within this state
8 if the employing unit is an employer solely by reason of section
9 41(7) and establishes that the services are covered by the
10 election of the employing unit under any other state unemployment
11 compensation law. This subsection shall not apply to the
12 exceptions provided in section 43(q).
13 (7) Notwithstanding subsection (2) all service performed
14 after December 31, 1964, by an officer or member of the crew of
15 an American vessel on or in connection with the vessel is deemed
16 to be employment subject to this act if the operating office,
17 from which the operations of the vessel operating on navigable
18 waters within, or within and without, the United States are
19 ordinarily and regularly supervised, managed, directed, and
20 controlled, is within this state.
21 (8)
22 (a) Service performed before January 1, 1978, by an
23 individual in the classified civil service of this state and
24 service performed by an individual for a school district, a
25 community college district, a school or educational facility
26 owned or operated by the state other than an institution of
27 higher education, or a political subdivision of the state, except
1 a political subdivision which has a local unemployment
2 compensation system as provided in section 13j, is employment
3 subject to this act.
4 (b) Service performed after December 31, 1977, in the employ
5 of a governmental entity as defined in section 50a is employment
6 subject to this act.
7 (9) "Employment" includes service performed after December
8 31, 1971, by an individual in the employ of this state or any of
9 its instrumentalities for a state hospital or state institution
10 of higher education, or in the employ of this state and 1 or more
11 other states or their instrumentalities for a hospital or
12 institution of higher education located in this state. Coverage
13 of services performed for these hospitals and institutions of
14 higher education after December 31, 1977, shall be determined
15 pursuant to section 42(8)(b).
16 (10) "Employment" includes service performed after December
17 31, 1971, by an individual in the employ of a religious,
18 charitable, educational, or other organization which is excluded
19 from the term "employment" as defined in the federal unemployment
20 tax act solely by reason of section 3306(c)(8) of the
21 unemployment tax act.
22 (11) "Employment" includes service performed after December
23 31, 1971, by an individual for his principal as an agent driver
24 or commission driver engaged in distributing beverages, meat,
25 vegetable, fruit, bakery, dairy, or other food products, or
26 laundry or dry cleaning services; or as a traveling or city
27 salesman, other than as an agent driver or commission driver,
1 engaged upon a full-time basis in the solicitation on behalf of,
2 and the transmission to, his principal except for sideline sales
3 activities on behalf of some other person, of orders from
4 wholesalers, retailers, contractors, operators of hotels,
5 restaurants, or other similar establishments for merchandise for
6 resale or supplies for use in their business operations. For
7 purposes of this subsection, "employment" includes services
8 performed after December 31, 1971, only if all of the following
9 apply:
10 (a) The contract of service contemplates that substantially
11 all of the services are to be performed personally by the
12 individual.
13 (b) The individual does not have a substantial investment in
14 facilities used in connection with the performance of the
15 services other than in facilities for transportation.
16 (c) The services are not in the nature of a single
17 transaction which is not part of a continuing relationship with
18 the person for whom the services are performed.
19 (12) "Employment" includes service performed by a United
20 States citizen outside the United States after December 31, 1971,
21 except in Canada, and in the Virgin Islands after December 31,
22 1971, and before January 1 of the year following the year in
23 which the United States secretary of labor approves the
24 unemployment compensation law of the Virgin Islands under section
25 3304(a) of the internal revenue code, while in the employ of an
26 American employer and is other than service which is employment
27 pursuant to subsection (2) or a parallel provision of another
1 state's law, if the requirements of subdivision (a), (b), or (c)
2 are met:
3 (a) The employer's principal place of business in the United
4 States is located in this state.
5 (b) The employer does not have a place of business in the
6 United States, but the employer is any of the following:
7 (i) An individual who is a resident of this state.
8 (ii) A corporation which is organized under the laws of this
9 state.
10 (iii) A partnership or a trust and the number of the partners
11 or trustees who are residents of this state is greater than the
12 number who are residents of any one other state.
13 (c) None of the criteria of subdivisions (a) and (b) is met
14 but the employer elected coverage of the service under this act,
15 or the employer failed to elect coverage in any state and the
16 individual filed a claim for benefits based on the service under
17 the law of this state.
18 (d) An "American employer", for purposes of this subsection,
19 means a person who is one of the following:
20 (i) An individual who is a resident of the United States.
21 (ii) A partnership if 2/3 or more of the partners are
22 residents of the United States.
23 (iii) A trust, if all of the trustees are residents of the
24 United States.
25 (iv) A corporation organized under the laws of the United
26 States or of any state.
27 (e) As used in this subsection, "United States" includes the
1 states, the District of Columbia, and the Commonwealth of Puerto
2 Rico.
3 (13) Notwithstanding any other provision of this act, the
4 term "employment" shall include an individual's service, wherever
5 performed within the United States, the Virgin Islands, or
6 Canada, if the service is not covered under the unemployment
7 compensation law of any other state, the Virgin Islands, or
8 Canada, and the place from which the service is directed or
9 controlled is in this state.
10 Sec. 42a. If a business entity requests the unemployment
11 agency to determine whether 1 or more individuals performing
12 services for the entity in this state are in covered employment,
13 the unemployment agency shall issue a determination of coverage
14 of services performed by those individuals and any other
15 individuals performing similar services under similar
16 circumstances. If the unemployment agency determines that the
17 services are in covered employment and the unemployment agency
18 received the request on or after the effective date of the
19 amendatory act that added this section and before January 1,
20 2013, only wages paid on or after the date of the determination
21 shall be used for benefit qualifying purposes and for the
22 calculation of the unemployment contribution rate and the
23 unemployment contributions or reimbursements in lieu of
24 contributions. Penalties and interest accrue only on
25 contributions or reimbursements in lieu of contributions that are
26 assessed based on wages paid on or after the date of the
27 determination. On and after January 1, 2013, services will be
1 determined in employment in accordance with the provision of
2 section 42 that applies on and after that date.
3 Sec. 44. (1) "Remuneration" means all compensation paid for
4 personal services, including commissions and bonuses, and except
5 for agricultural and domestic services, the cash value of all
6 compensation payable in a medium other than cash. Any
7 remuneration payable to an individual that has not been actually
8 received by that individual within 21 days after the end of the
9 pay period in which the remuneration was earned, shall, for the
10 purposes of subsections (2) to (5) and section 46, be considered
11 to have been paid on the twenty-first day after the end of that
12 pay period. For benefit years beginning on or after the
13 conversion date prescribed in section 75 October 1, 2000, if back
14 pay is awarded to an individual and is allocated by an employer
15 or legal authority to a period of weeks within 1 or more calendar
16 quarters, the back pay shall be considered paid in that calendar
17 quarter or those calendar quarters for purposes of section 46.
18 The reasonable cash value of compensation payable in a medium
19 other than cash shall be estimated and determined in accordance
20 with rules promulgated by the unemployment agency. Beginning
21 January 1, 1986, remuneration shall include tips actually
22 reported to an employer under section 6053(a) of the internal
23 revenue code by an employee who receives tip income. Remuneration
24 does not include either of the following:
25 (a) Money paid an individual by a unit of government for
26 services rendered as a member of the national guard of this
27 state, or for similar services to another state or the United
1 States.
2 (b) Money paid by an employer to a worker under a
3 supplemental unemployment benefit plan under section 501(c) of
4 the internal revenue code of 1986 consistent with the criteria
5 for a supplemental unemployment benefit plan as described in
6 internal revenue service publication 15-A, employer's
7 supplemental tax guide, or a successor publication, regardless of
8 whether the benefits are paid from a trust or by the employer.
9 (2) "Wages", subject to subsections (3) to (5), means
10 remuneration paid by employers for employment and, beginning
11 January 1, 1986, includes tips actually reported to an employer
12 under section 6053(a) of the internal revenue code by an employee
13 who receives tip income. If any provision of this subsection
14 prevents this state from qualifying for any federal interest
15 relief provisions provided under section 1202 of title XII of the
16 social security act, 42 U.S.C. USC 1322, or prevents
employers in
17 this state from qualifying for the limitation on the reduction of
18 federal unemployment tax act credits as provided under section
19 3302(f) of the federal unemployment tax act, 26 U.S.C. USC 3302,
20 that provision is invalid to the extent necessary to maintain
21 qualification for the interest relief provisions and federal
22 unemployment tax credits.
23 (3) For the purpose of determining the amount of
24 contributions due from an employer under this act, wages shall be
25 limited by the taxable wage limit applicable under subsection
26 (4). For this purpose, wages shall exclude all remuneration paid
27 within a calendar year to an individual by an employing unit
1 after the individual was paid within that year by that employing
2 unit remuneration equal to the taxable wage limit on which
3 unemployment taxes were paid or were payable in this state and in
4 any other states. If an employing unit, hereinafter referred to
5 as successor, during any calendar year becomes a transferee in a
6 transfer of business as defined in section 22 of another,
7 hereinafter referred to as a predecessor, and immediately after
8 the transfer employs in his or her trade or business an
9 individual who immediately before the transfer was employed in
10 the trade or business of the predecessor, then for the purpose of
11 determining whether the successor has paid remuneration with
12 respect to employment equal to the taxable wage limit to that
13 individual during the calendar year, any remuneration with
14 respect to employment paid to that individual by the predecessor
15 during the calendar year and before the transfer shall be
16 considered as having been paid by the successor.
17 (4) The taxable wage limit for each calendar year shall be
18 is $8,000.00 in the 1983 calendar year, $8,500.00 in the 1984
19 calendar year, $9,000.00 in the 1985 calendar year, $9,500.00 in
20 the 1986 calendar year, and $9,500.00 for calendar years after
21 calendar years 1986 through 2002, and $9,000.00 for calendar
22 years after 2002 and before 2012, or the maximum amount of
23 remuneration paid within a calendar year by an employer subject
24 to the federal unemployment tax act, 26 U.S.C. USC 3301
to 3311,
25 to an individual with respect to employment as defined in that
26 act that is subject to tax under that act during that year for
27 each calendar year, whichever is greater. For calendar years
1 beginning 2012, the taxable wage limit is $9,500.00, but if at
2 the beginning of a calendar quarter the balance in the
3 unemployment compensation fund equals or exceeds
4 $2,500,000,000.00 and the agency projects that the balance will
5 remain at or above $2,500,000,000.00 for the remainder of the
6 calendar quarter and for the entire succeeding calendar quarter,
7 the taxable wage limit for that calendar quarter and the
8 succeeding calendar quarter is $9,000.00 for an employer that is
9 not delinquent in the payment of unemployment contributions,
10 penalties, or interest.
11 (5) For the purposes of this act, the term "wages" shall not
12 include any of the following:
13 (a) The amount of a payment, including an amount paid by an
14 employer for insurance or annuities or into a fund, to provide
15 for such a payment, made to, or on behalf of, an employee or any
16 of the employee's dependents under a plan or system established
17 by an employer that makes provision for the employer's employees
18 generally, or for the employer's employees generally and their
19 dependents, or for a class or classes of the employer's
20 employees, or for a class or classes of the employer's employees
21 and their dependents, on account of retirement, sickness or
22 accident disability, medical or hospitalization expenses in
23 connection with sickness or accident disability, or death.
24 (b) A payment made to an employee, including an amount paid
25 by an employer for insurance or annuities, or into a fund, to
26 provide for such a payment, on account of retirement.
27 (c) A payment on account of sickness or accident disability,
1 or medical or hospitalization expenses in connection with
2 sickness or accident disability, made by an employer to, or on
3 behalf of, an employee after the expiration of 6 calendar months
4 following the last calendar month in which the employee worked
5 for the employer.
6 (d) A payment made to, or on behalf of, an employee or the
7 employee's beneficiary from or to a trust described in section
8 401(a) of the internal revenue code of 1986 that is exempt from
9 tax under section 501(a) of the internal revenue code of 1986 at
10 the time of the payment, unless the payment is made to an
11 employee of the trust as remuneration for services rendered as an
12 employee and not as a beneficiary of the trust, or under or to an
13 annuity plan which, at the time of the payment, is a plan
14 described in section 403(a) of the internal revenue code of 1986,
15 or under or to a bond purchase plan that at the time of the
16 payment, is a qualified bond purchase plan described in former
17 section 405(a) of the internal revenue code.
18 (e) The payment by an employer, without deduction from the
19 remuneration of the employee, of the tax imposed upon an employee
20 under section 3101 of the federal insurance contributions act, 26
21 U.S.C. USC 3101.
22 (f) Remuneration paid in any medium other than cash to an
23 employee for service not in the course of the employer's trade or
24 business.
25 (g) A payment, other than vacation or sick pay, made to an
26 employee after the month in which the employee attains the age of
27 65, if the employee did not work for the employer in the period
1 for which the payment is made.
2 (h) Remuneration paid to or on behalf of an employee as
3 moving expenses if, and to the extent that, at the time of
4 payment of the remuneration it is reasonable to believe that a
5 corresponding deduction is allowable under section 217 of the
6 internal revenue code of 1986.
7 (6) The amendments made to this section by amendatory act
8 1977 PA 155 shall apply to all remuneration paid after December
9 31, 1977.
10 (7) The amendments made in subsection (1) by the amendatory
11 act that added this subsection shall first apply to remuneration
12 paid after December 31, 1977.
13 Sec. 46. (a) Subject to subsections (d) through (g), for
14 benefit years beginning before the conversion date prescribed in
15 section 75, "benefit year" means the period of 52 consecutive
16 calendar weeks beginning the first calendar week in which an
17 individual files a claim in accordance with section 32 and meets
18 all of the following conditions:
19 (1) The individual has earned 20 credit weeks in the 52
20 consecutive calendar weeks before the week he or she files the
21 claim for benefits.
22 (2) The individual is unemployed and meets all requirements
23 of section 28 for the week for which he or she files a claim for
24 benefits.
25 (3) Except for a disqualification under section 29 (8)
26 involving a labor dispute during the individual's most recent
27 period of employment with the most recent employer with whom the
1 individual earned a credit week, the individual is not
2 disqualified or subject to disqualification for the week for
3 which he or she files a claim.
4 (4) The individual does not have a benefit year already in
5 effect at the time of the claim.
6 (b) For benefit years beginning on or after the
conversion
7 date prescribed in section 75 October 1, 2000,
"benefit year"
8 means the period of 52 consecutive calendar weeks beginning the
9 first calendar week in which an individual files a claim in
10 accordance with section 32. However, a benefit year shall not be
11 established unless the individual meets either of the following
12 conditions:
13
(1) the The total
wages paid to the individual in the base
14 period of the claim equals not less than 1.5 times the wages paid
15 to the individual in the calendar quarter of the base period in
16 which the individual was paid the highest wages. ,
or
17
(2) the The individual
was paid wages in 2 or more calendar
18 quarters of the base period totaling at least 20 times the state
19 average weekly wage as determined by the commission.unemployment
20 agency.
21 (c) For benefit years beginning after the conversion date
22 prescribed in section 75 October
1, 2000, the state average
23 weekly wage for a calendar year shall be computed on the basis of
24 the 12 months ending the June 30 preceding that calendar year. A
25 benefit year shall not be established if the individual was not
26 paid wages of at least the state minimum hourly wage multiplied
27 by 388.06 rounded down to the nearest dollar in at least 1
1 calendar quarter of the base period. A benefit year shall not be
2 established based on base period wages previously used to
3 establish a benefit year that resulted in the payment of
4 benefits. However, if a calendar quarter of the base period
5 contains wages that were previously used to establish a benefit
6 year that resulted in the payment of benefits, a claimant may
7 establish a benefit year using the wages in the remaining
8 calendar quarters from among the first 4 of the last 5 completed
9 calendar quarters, or if a benefit year cannot be established
10 using those quarters, then by using wages from among the last 4
11 completed calendar quarters. A benefit year shall not be
12 established unless, after the beginning of the immediately
13 preceding benefit year during which the individual received
14 benefits, the individual worked and received remuneration in an
15 amount equal to at least 5 times the individual's most recent
16 state weekly benefit rate in effect during the individual's
17 immediately preceding benefit year. If a quarterly wage report
18 has not been submitted in a timely manner by the employer as
19 provided in section 13 for any of the quarters of the base
20 period, or if wage information is not available for use by the
21 commission unemployment
agency for the most recent completed
22 calendar quarter, the commission may unemployment agency shall
23 obtain and use the claimant's statement of wages paid during the
24 calendar quarters for which the wage reports are missing to
25 establish a benefit year. However, the claimant's statement of
26 wages shall only be used to establish a benefit year if the
27 claimant also provides to the unemployment agency documentary or
1 other evidence of those wages that is satisfactory to the
2 unemployment agency. A determination based on the claimant's
3 statement of wages paid during any of these calendar quarters
4 shall be redetermined if the quarterly wage report from the
5 employer is later received and would result in a change in the
6 claimant's weekly benefit amount or duration, or both, or if the
7 quarterly wage report from the employer later becomes available
8 for use by the commission unemployment agency and
would result in
9 a change in the claimant's benefit amount or duration, or both.
10 If the redetermination results from the employer's failure to
11 submit the quarterly wage report in a timely manner, the
12 redetermination shall be effective as to benefits payable for
13 weeks beginning after the receipt of information not previously
14 submitted by the employer.
15 (d) If an individual files a claim for a 7-day period under
16 section 27(c), his or her benefit year begins the calendar week
17 containing the first day of that 7-day period.
18 (e) If all or part of a claimant's right to benefits during
19 his or her benefit year is canceled under section 62(b), the
20 benefit year is terminated on the effective date of the
21 cancellation.
22 (f) An individual may request a redetermination of his or
23 her benefit rights and cancellation of a previously established
24 benefit year if he or she has not completed a compensable period.
25 Under circumstances described in this subsection, the benefit
26 year begins the first day of the first week in which the request
27 for redetermination of benefit rights is duly filed.
1 (g) Notwithstanding subsection (a), for services performed
2 on or after January 2, 1983, and with respect to benefit years
3 established before the conversion date prescribed in section 75
4
October 1, 2000, an individual shall
not be is not entitled to
5 establish a benefit year based in whole or in part on credit
6 weeks for service in the employ of an employing unit, not
7 otherwise excluded under section 43(g), in which more than 50% of
8 the proprietary interest is owned by the individual or his or her
9 son, daughter, or spouse, or any combination of these
10 individuals, or in which more than 50% of the proprietary
11 interest is owned by the mother or father of a child under the
12 age of 18, or mother and father combined, unless both the
13 individual and the employer notify the commission, in response to
14 the commission's request for information, of the individual's
15 relationship to the owners of the proprietary interest in the
16 employing unit. Upon timely notification to the commission, a
17 benefit year may be established for the individual, if the
18 individual meets all of the following conditions: (1) has earned
19 20 credit weeks in the 52 consecutive calendar weeks preceding
20 the week with respect to which the individual filed an
21 application for benefits; (2) with respect to the week for which
22 the individual is filing an application for benefits is
23 unemployed, and meets all of the other requirements of section
24 28; (3) with respect to the week for which the individual is
25 filing an application for benefits the individual is not
26 disqualified nor subject to disqualification, except in case of a
27 labor dispute under section 29(8), with respect to the most
1 recent period of employment with the most recent employer with
2 whom the individual earned a credit week. If an individual files
3 an application for a 7-day period as provided in section 27(c),
4 the benefit year with respect to the individual shall begin with
5 the calendar week which contains the first day of that 7-day
6 period.
7 (h) For benefit years established on or after July 1, 1983,
8 not more than 10 credit weeks based on services shall be used to
9 pay benefits. For the purpose of calculating the individual's
10 average weekly wage, all base period wages and credit weeks shall
11 be used. With respect to benefit years beginning on or after
the
12 conversion date prescribed in section 75 October 1, 2000, and
13 notwithstanding subsection (a) (b), an individual shall
not be is
14 not entitled to establish a benefit year based in whole or in
15 part on wages earned in service, not otherwise excluded under
16 section 43(g), in the employ of an employing unit in which more
17 than 50% of the proprietary interest is owned by the individual
18 or his or her son, daughter, spouse, or any combination of these
19 individuals, or in which more than 50% of the proprietary
20 interest is owned by the mother or father of a child under the
21 age of 18, or mother and father combined, unless both the
22 individual and the employer notify the commission, in response to
23 the commission's request for information, of the individual's
24 relationship to the owners of the proprietary interest in the
25 employing unit. Upon timely notification to the commission, a
26 benefit year may be established for the individual if the
27 individual meets the requirements of subsection (a) (b).
If wages
1 in an individual's base period were earned in service in the
2 employ of such an employing unit, the individual's weekly benefit
3 rate shall be calculated in accordance with section 27(b)(1) but
4 the portion of the benefit rate attributable to this service
5 shall be payable for not more than 7 weeks. The weekly benefit
6 payment shall be reduced thereafter by the percentage of charge
7 attributable to service with this employer, in accordance with
8 section 20.
9 Sec. 48. (1) An individual shall be considered unemployed
10 for any week during which he or she performs no services and for
11 which remuneration is not payable to the individual, or for any
12 week of less than full-time work if the remuneration payable to
13 the individual is less than 1-1/2 times his or her weekly benefit
14 rate. However, any loss of remuneration incurred by an individual
15 during any week resulting from any cause other than the failure
16 of the individual's employing unit to furnish full-time, regular
17 employment shall be included as remuneration earned for purposes
18 of this section and section 27(c). The total amount of
19 remuneration lost shall be determined pursuant to regulations
20 prescribed by the commission unemployment agency. For the
21 purposes of this act, an individual's weekly benefit rate means
22 the weekly benefit rate determined pursuant to section 27(b).
23 (2) All amounts paid to a claimant by an employing unit or
24 former employing unit for a vacation or a holiday, and amounts
25 paid in the form of retroactive pay, pay in lieu of notice,
26 severance payments, salary continuation, or other remuneration
27 intended by the employing unit as continuing wages or other
1 monetary consideration as the result of the separation, excluding
2 SUB payments as described in section 44, shall be considered
3 remuneration in determining whether an individual is unemployed
4 under this section and also in determining his or her benefit
5 payments under section 27(c), for the period designated by the
6 contract or agreement providing for the payment, or if there is
7 no contractual specification of the period to which payments
8 shall be allocated, then for the period designated by the
9 employing unit or former employing unit. However, payments for a
10 vacation or holiday, or the right to which has irrevocably
11 vested, after 14 days following a vacation or holiday shall not
12 be considered wages or remuneration within the meaning of this
13 section.
14 (3) An individual shall not be considered to be unemployed
15 during any leave of absence from work granted by an employer
16 either at the request of the individual or pursuant to an
17 agreement with the individual's duly authorized bargaining agent,
18 or in accordance with law. An individual shall neither be
19 considered not unemployed nor on a leave of absence solely
20 because the individual elects to be laid off, pursuant to an
21 option provided under a collective bargaining agreement or
22 written employer plan that permits an election, if there is a
23 temporary layoff because of lack of work and the employer has
24 consented to the election.
25 Sec. 48a. A reference in this act to transmission or receipt
26 by mail shall include any form of electronic transmission or
27 receipt approved by the agency.
1 Sec. 50. (a) "Week" means calendar week, ending
at midnight
2 Saturday, but all work performed and wages earned during a
3 working shift which starts before midnight Saturday shall be
4 included in the week in which that shift begins.
5 (b) Subject to subdivisions (1) and (2), for benefit years
6 established before January 1, 1996, "credit week" means a
7 calendar week of an individual's base period during which the
8 individual earned wages equal to or greater than 20 times the
9 state minimum hourly wage in effect on the first day of the
10 calendar week in which the individual filed an application for
11 benefits. However, for benefit years established on or after
12 January 1, 1996 and before the conversion date prescribed in
13 section 75, "credit week" means a calendar week of an
14 individual's base period during which the individual earned wages
15 equal to or greater than 30 times the state minimum hourly wage
16 in effect on the first day of the calendar week in which the
17 individual filed an application for benefits. This subsection is
18 subject to the following:
19 (1) If an individual earns wages from more than 1 employer
20 in a credit week, that week shall be counted as 1 multiemployer
21 credit week and shall be governed by the provisions of section
22 20(e), unless the individual has earned sufficient wages in the
23 base period with only 1 of the employers for whom the individual
24 performed services in the week of concurrent employment to
25 entitle the individual to a maximum weekly benefit rate, in which
26 case, the week shall be a credit week with respect to that
27 employer only and not a multiemployer credit week.
1 (2) Not more than 35 uncanceled and uncharged credit weeks
2 shall be counted as credit weeks. In determining the 35 credit
3 weeks to be used for computing and paying benefits, credit weeks
4 shall be counted in the following sequence:
5 (a) First, all credit weeks which are not multiemployer
6 credit weeks and which were earned with employers not involved in
7 a disqualifying act or discharge under section 29(1), and all
8 credit weeks earned with an employer involved in such a
9 disqualifying act or discharge which were earned subsequent to
10 the last act or discharge in which the employer was involved,
11 shall be counted in inverse order of most recent employment with
12 each employer.
13 (b) Second, if the credit weeks counted under subparagraph
14 (a) total less than 35, all credit weeks which are not
15 multiemployer credit weeks and which were earned with each
16 employer before a disqualifying act or discharge shall be
17 counted, in inverse order to that in which the most recent
18 disqualifying act or discharge with each employer occurred, to
19 the extent necessary to use all available credit weeks with
20 respect to the employers, or a total of 35 credit weeks,
21 whichever is less.
22 (c) Third, if the credit weeks counted under subparagraphs
23 (a) and (b) total less than 35, all multiemployer credit weeks
24 shall be counted, in inverse chronological order of their
25 occurrence, to the extent necessary to count all available credit
26 weeks, or a total of 35 credit weeks, whichever is less.
27 (3) As used in this subsection:
1 (a) "Uncharged credit week" means a credit week which
has
2 not been used as a basis for a benefit payment, a reduction of
3 benefits under section 29(4), or a penalty disqualification under
4 section 62(b).
5 (b) "Uncanceled credit week" means a credit week which
is
6 not canceled in accordance with section 62(b).
7 (4) There shall not be counted toward the wages required to
8 establish a credit week under this subsection payments in the
9 form of termination, separation, severance, or dismissal
10 allowances; or any payments for a vacation or a holiday unless
11 the payment has been made, or the right to receive it has
12 irrevocably vested, within 14 days following the vacation or
13 holiday.
14 Sec. 54. (a) A person, including a claimant for unemployment
15 benefits, an employing entity, or an owner, director, or officer
16 of an employing entity, who willfully violates or intentionally
17 fails to comply with any of the provisions of this act, or a
18 regulation of the unemployment agency promulgated under the
19 authority of this act for which a penalty is not otherwise
20 provided by this act is subject to the following sanctions,
21 notwithstanding any other statute of this state or of the United
22 States:
23 (i) If the unemployment agency determines that an amount has
24 been obtained or withheld as a result of the intentional failure
25 to comply with this act, the unemployment agency may recover the
26 amount obtained as a result of the intentional failure to comply
27 plus damages equal to 3 times that amount.
1 (ii) The unemployment agency may refer the matter to the
2 prosecuting attorney of the county in which the alleged violation
3 occurred for prosecution. If the unemployment agency has not made
4 its own determination under subdivision (i), the recovery sought
5 by the prosecutor shall include the amount described in
6 subdivision (i) and shall also include 1 or more of the following
7 penalties:
8 (A) If Subject
to redesignation under subsection (m), if the
9 amount obtained or withheld from payment as a result of the
10 intentional failure to comply is less than $25,000.00, then 1 of
11 the following:
12 (I) Imprisonment for not more than 1 year.
13 (II) The performance of community service of not more than 1
14 year but not to exceed 2,080 hours.
15 (III) A combination of (I) and (II) that does not exceed 1
16 year.
17 (B) If the amount obtained or withheld from payment as a
18 result of the intentional failure to comply is $25,000.00 or more
19 but less than $100,000.00, then 1 of the following:
20 (I) Imprisonment for not more than 2 years.
21 (II) The performance of community service of not more than 2
22 years but not to exceed 4,160 hours.
23 (III) A combination of (I) and (II) that does not exceed 2
24 years.
25 (C) If the amount obtained or withheld from payment as a
26 result of the intentional failure to comply is more than
27 $100,000.00, then 1 of the following:
1 (I) Imprisonment for not more than 5 years.
2 (II) The performance of community service of not more than 5
3 years but not to exceed 10,400 hours.
4 (III) A combination of (I) and (II) that does not exceed 5
5 years.
6 (iii) If the unemployment agency determines that an amount has
7 been obtained or withheld as a result of a knowing violation of
8 this act, the unemployment agency may recover the amount obtained
9 as a result of the knowing violation and may also recover damages
10 equal to 3 times that amount.
11 (iv) The unemployment agency may refer a matter under
12 subdivision (iii) to the prosecuting attorney of the county in
13 which the alleged violation occurred for prosecution. If the
14 unemployment agency has not made its own determination under
15 subdivision (iii), the recovery sought by the prosecutor shall
16 include the amount described in subdivision (iii) and shall also
17 include 1 or more of the following penalties:
18 (A) If Subject
to redesignation under subsection (m), if the
19 amount obtained or withheld from payment as a result of the
20 knowing violation is $100,000.00 or less, then 1 of the
21 following:
22 (I) Imprisonment for not more than 1 year.
23 (II) The performance of community service of not more than 1
24 year but not to exceed 2,080 hours.
25 (III) A combination of (I) and (II) that does not exceed 1
26 year.
27 (B) If the amount obtained or withheld from payment as a
1 result of the knowing violation is more than $100,000.00, then 1
2 of the following:
3 (I) Imprisonment for not more than 2 years.
4 (II) The performance of community service of not more than 2
5 years but not to exceed 4,160 hours.
6 (III) A combination of (I) and (II) that does not exceed 2
7 years.
8 (b) Any employing unit or an owner, director, officer, or
9 agent of an employing unit, a claimant, an employee of the
10 unemployment agency, or any other person who makes a false
11 statement or representation knowing it to be false, or knowingly
12 and willfully with intent to defraud fails to disclose a material
13 fact, to obtain or increase a benefit or other payment under this
14 act or under the unemployment compensation law of any state or of
15 the federal government, either for himself or herself or any
16 other person, to prevent or reduce the payment of benefits to an
17 individual entitled thereto or to avoid becoming or remaining a
18 subject employer, or to avoid or reduce a contribution or other
19 payment required from an employing unit under this act or under
20 the unemployment compensation law of any state or of the federal
21 government, as applicable, is subject to administrative fines and
22 is punishable as follows, notwithstanding any other penalties
23 imposed under any other statute of this state or of the United
24 States:
25 (i) If the amount obtained as a result of the knowing false
26 statement or representation or the knowing and willful failure to
27 disclose a material fact is less than $500.00, the unemployment
1 agency may recover the amount obtained as a result of the knowing
2 false statement or representation or the knowing and willful
3 failure to disclose a material fact and may also recover damages
4 equal to 2 times that amount. For a second or subsequent
5 violation described in this subdivision, the unemployment agency
6 may recover damages equal to 4 times the amount obtained.
7 (ii) If the amount obtained as a result of the knowing false
8 statement or representation or the knowing and willful failure to
9 disclose a material fact is $500.00 or more, the unemployment
10 agency shall attempt to recover the amount obtained as a result
11 of the knowing false statement or representation or the knowing
12 and willful failure to disclose a material fact and may also
13 recover damages equal to 4 times that amount. The unemployment
14 agency may refer the matter to the prosecuting attorney of the
15 county in which the alleged violation occurred for prosecution.
16 If the unemployment agency has not made its own determination
17 under this subdivision, the recovery sought by the prosecutor
18 shall include the amount described in this subdivision and shall
19 also include 1 or more of the following penalties if the amount
20 obtained is $1,000.00 or more:
21 (A) If Subject
to redesignation under subsection (m), if the
22 amount obtained or withheld from payment as a result of the
23 knowing false statement or representation or the knowing and
24 willful failure to disclose a material fact is $1,000.00 or more
25 but less than $25,000.00, then 1 of the following:
26 (I) Imprisonment for not more than 1 year.
27 (II) The performance of community service of not more than 1
1 year but not to exceed 2,080 hours.
2 (III) A combination of (I) and (II) that does not exceed 1
3 year.
4 (B) If the amount obtained or withheld from payment as a
5 result of the knowing false statement or representation or the
6 knowing and willful failure to disclose a material fact is
7 $25,000.00 or more, then 1 of the following:
8 (I) Imprisonment for not more than 2 years.
9 (II) The performance of community service of not more than 2
10 years but not to exceed 4,160 hours.
11 (III) A combination of (I) and (II) that does not exceed 2
12 years.
13 (C) If the knowing false statement or representation or the
14 knowing and willful failure to disclose a material fact made to
15 obtain or withhold an amount from payment does not result in a
16 loss to the commission, then a recovery shall be sought equal to
17 3 times the amount that would have been obtained by the knowing
18 false statement or representation or the knowing and willful
19 failure to disclose a material fact, but not less than $1,000.00,
20 and 1 of the following:
21 (I) Imprisonment for not more than 2 years.
22 (II) The performance of community service of not more than 2
23 years but not to exceed 4,160 hours.
24 (III) A combination of (I) and (II) that does not exceed 2
25 years.
26 (c) (1) Any employing unit or an owner, director, officer,
27 or agent of an employing unit or any other person failing to
1 submit, when due, any contribution report, wage and employment
2 report, or other reports lawfully prescribed and required by the
3 unemployment agency shall be subject to the assessment of an
4 administrative fine for each report not submitted within the time
5 prescribed by the unemployment agency, as follows: In the case of
6 contribution reports not received within 10 days after the end of
7 the reporting month the fine shall be 10% of the contributions
8 due on the reports but not less than $5.00 or more than $25.00
9 for a report. However, if the tenth day falls on a Saturday,
10 Sunday, legal holiday, or other unemployment agency nonwork day,
11 the 10-day period shall run until the end of the next day which
12 is not a Saturday, Sunday, legal holiday, or other unemployment
13 agency nonwork day. In the case of all other reports referred to
14 in this subsection, the fine shall be $10.00 for a report.
15 (2) Notwithstanding subdivision (1), any employer or an
16 owner, director, officer, or agent of an employer or any other
17 person failing to submit, when due, any quarterly wage detail
18 report required by section 13(2), or submitting an incomplete or
19
erroneous report, is subject to an
administrative fine of $25.00
20 $50.00 for each untimely report, incomplete report, or erroneous
21 report if the report is filed not later than 30 days after the
22 date the report is due, $250.00 if the report is filed more than
23 1 calendar quarter after the date the report is due, and an
24 additional $250.00 for each additional calendar quarter that the
25 report is late, except that no penalty shall apply if the
26 employer files a corrected report within 14 days after
27 notification of an error by the agency.
1 (3) If a report is filed after the prescribed time and it is
2 shown to the satisfaction of the commission that the failure to
3 submit the report was due to reasonable cause, a fine shall not
4 be imposed. The assessment of a fine as provided in this
5 subsection constitutes a final determination unless the employer
6 files an application with the unemployment agency for a
7 redetermination of the assessment in accordance with section 32a.
8 (d) If any employee or agent of the unemployment agency or
9 member of the appeal board Michigan compensation appellate
10 commission willfully discloses confidential information obtained
11 from any employing unit or individual in the administration of
12 this act for any purpose inconsistent with or contrary to the
13 purposes of this act, or a person who obtains a list of
14 applicants for work or of claimants or recipients of benefits
15 under this act uses or permits use of that list for a political
16 purpose or for a purpose inconsistent with or contrary to the
17 purposes of this act, he or she is guilty of a misdemeanor
18 punishable by imprisonment for not more than 90 days or a fine of
19 not more than $1,000.00, or both. Notwithstanding the preceding
20 sentence, if any unemployment agency employee, agent of the
21 unemployment agency, or member of the board of review Michigan
22 compensation appellate commission knowingly, intentionally, and
23 for financial gain, makes an illegal disclosure of confidential
24 information obtained under section 13(2), he or she is guilty of
25 a felony, punishable by imprisonment for not more than 1 year and
26 1 day.
27 (e) A person who, without proper authority from the
1 unemployment agency, represents himself or herself to be an
2 employee of the unemployment agency for the purpose of securing
3 information regarding the unemployment or employment record of an
4 individual is guilty of a misdemeanor punishable by imprisonment
5 for not more than 90 days or a fine of not more than $1,000.00,
6 or both.
7 (f) A person associated with a college, university, or
8 public agency of this state who makes use of any information
9 obtained from the unemployment agency in connection with a
10 research project of a public service nature, in a manner as to
11 reveal the identity of any individual or employing unit from or
12 concerning whom the information was obtained by the unemployment
13 agency, or for any purpose other than use in connection with that
14 research project, is guilty of a misdemeanor punishable by
15 imprisonment for not more than 90 days or a fine of not more than
16 $1,000.00, or both.
17 (g) As used in this section, "person" includes an
18 individual; , owner,
director, or officer of an employing entity;
19 copartnership; , joint
venture; , corporation; ,
receiver; ,
or
20 trustee in bankruptcy.
21 (h) This section applies even if the amount obtained or
22 withheld from payment has been reported or reported and paid by
23 an individual involved in a violation of subsection (a) or (b).
24 (i) If a determination is made that an individual has
25 violated this section, the individual is subject to the sanctions
26 of this section and, if applicable, the requirements of section
27 62.
1 (j) Amounts recovered by the commission under subsection (a)
2 shall be credited first to the unemployment compensation fund and
3 thereafter amounts recovered that are in excess of the amounts
4 obtained or withheld as a result of the violation of subsection
5 (a) shall be credited to the penalty and interest account of the
6 contingent fund. Amounts recovered by the commission under
7 subsections (c), (d), (e), and (f) shall be credited to the
8 penalty and interest account of the contingent fund in accordance
9 with section 10(6).
10 (k) Amounts recovered by the unemployment agency under
11 subsection (b) shall be credited as follows:
12 (i) Deductions from unemployment insurance benefits shall be
13 applied solely to the amount of the benefits liable to be repaid
14 under this section.
15 (ii) All other recoveries shall be applied first to repayment
16 amounts owed, which shall be deposited in the unemployment
17 compensation fund; then to administrative sanctions and damages;
18 , and then to interest. , and then to the
amount liable to be
19 repaid. The amounts applied
to administrative sanctions, damages,
20 and interest shall be credited to the special fraud control fund
21 created in section 10.contingent
fund.
22 (l) The revisions in the penalties in subsections (a) and (b)
23 provided by the 1991 amendatory act that added this subsection
24 apply to conduct that began before April 1, 1992, but that
25 continued on or after April 1, 1992, and to conduct that began on
26 or after April 1, 1992.
27 (m) A person who obtains or withholds an amount of
1 unemployment benefits or payments exceeding $3,500.00 but less
2 than $25,000.00 as a result of a knowing false statement or
3 representation or the knowing and willful failure to disclose a
4 material fact is guilty of a felony punishable as provided in
5 section (a)(ii)(A) or (iv)(A) or section (b)(ii)(A).
6 Sec. 62. (a) If the unemployment agency determines that a
7 person has obtained benefits to which that person is not
8 entitled, it may recover a sum equal to the amount received plus
9 interest by 1 or more of the following methods: deduction from
10 benefits or wages payable to the individual, payment by the
11 individual in cash, or deduction from a tax refund payable to the
12 individual as provided under section 30a of 1941 PA 122, MCL
13 205.30a. Deduction from benefits or wages payable to the
14 individual is limited to not more than 20% 50% of
each payment
15 due the claimant. The unemployment agency shall issue a
16 determination requiring restitution within 3 years after the date
17 of finality of a determination, redetermination, or decision
18 reversing a previous finding of benefit entitlement. The
19 unemployment agency shall not initiate administrative or court
20 action to recover improperly paid benefits from an individual
21 more than 3 years , or more than 6 years in the case of a
22 violation of section 54(a) or (b) or sections 54a to 54c, after
23 the date of that
the last determination, redetermination, or
24 decision establishing restitution is final. The unemployment
25 agency shall issue a determination on an issue within 3 years
26 from the date the claimant first received benefits in the benefit
27 year in which the issue arose, or in the case of an issue of
1 intentional false statement, misrepresentation, or concealment of
2 material information in violation of section 54(a) or (b) or
3 sections 54a to 54c, within 6 years after the receipt of the
4 improperly paid benefits unless the unemployment agency filed a
5 civil action in a court within the 3-year or 6-year period; the
6 individual made an intentional false statement,
7 misrepresentation, or concealment of material information to
8 obtain the benefits; or the unemployment agency issued a
9 determination requiring restitution within the 3-year or 6-year
10 period. Except in a case of an intentional false statement,
11 misrepresentation, or concealment of material information, the
12 unemployment agency may waive recovery of an improperly paid
13 benefit if the payment was not the fault of the individual and if
14 repayment would be contrary to equity and good conscience and
15 shall waive any interest. If the agency or an appellate authority
16 waives collection of restitution and interest, the waiver is
17 prospective and does not apply to restitution and interest
18 payments already made by the individual.
19 (b) For benefit years beginning before October 1, 2000, if
20 the unemployment agency determines that a person has
21 intentionally made a false statement or misrepresentation or has
22 concealed material information to obtain benefits, whether or not
23 the person obtains benefits by or because of the intentional
24 false statement, misrepresentation, or concealment of material
25 information, the person shall, in addition to any other
26 applicable interest and penalties, have all of his or her
27 uncharged credit weeks with respect to the benefit year in which
1 the act occurred canceled as of the date the unemployment agency
2 receives notice of, or initiates investigation of, the possible
3 false statement, misrepresentation, or concealment of material
4 information, whichever date is earlier. Before receiving benefits
5 in a benefit year established within 2 years after cancellation
6 of uncharged credit weeks under this subsection, the individual,
7 in addition to making the restitution of benefits established
8 under subsection (a), may be liable for an additional amount as
9 determined by the unemployment agency under this act, which may
10 be paid by cash, deduction from benefits, or deduction from a tax
11 refund. Restitution resulting from the intentional false
12 statement, misrepresentation, or concealment of material
13 information is not subject to the 20% 50% limitation
provided in
14 subsection (a). For benefit years beginning on or after October
15 1, 2000, if the unemployment agency determines that a person has
16 intentionally made a false statement or misrepresentation or has
17 concealed material information to obtain benefits, whether or not
18 the person obtains benefits by or because of the intentional
19 false statement, misrepresentation, or concealment of material
20 information, the person shall, in addition to any other
21 applicable interest and penalties, have his or her rights to
22 benefits for the benefit year in which the act occurred canceled
23 as of the date the unemployment agency receives notice of, or
24 initiates investigation of, a possible false statement,
25 misrepresentation, or concealment of material information,
26 whichever date is earlier, and wages used to establish that
27 benefit year shall not be used to establish another benefit year.
1 Before receiving benefits in a benefit year established within 2
2 4 years after cancellation of rights to benefits under this
3 subsection, the individual, in addition to making the restitution
4 of benefits established under subsection (a), may be liable for
5 an additional amount as otherwise determined by the unemployment
6 agency under this act, which may be paid by cash, deduction from
7 benefits, or deduction from a tax refund. Restitution resulting
8 from the intentional false statement, misrepresentation, or
9 concealment of material information is not subject to the 20% 50%
10 limitation provided in subsection (a).
11 (c) Any determination made by the unemployment agency under
12 this section is final unless an application for a redetermination
13 is filed in accordance with section 32a.
14 (d) The unemployment agency shall take the action necessary
15 to recover all benefits improperly obtained or paid under this
16 act, and to enforce all interest and penalties under subsection
17 (b). The unemployment agency may conduct an amnesty program for a
18 designated period under which penalties and interest assessed
19 against an individual owing restitution for improperly paid
20 benefits may be waived if the individual pays the full amount of
21 restitution owing within the period specified by the agency.
22 (e) Interest recovered under this section shall be deposited
23 in the special fraud control fund created in section
24 10.contingent fund.
25 Sec. 64. (1)(a) Payment of extended benefits under this
26 section shall be made at the individual's weekly extended benefit
27 rate, for any week of unemployment that begins in the
1 individual's eligibility period, to each individual who is fully
2 eligible and not disqualified under this act, who has exhausted
3 all rights to regular benefits under this act, who is not seeking
4 or receiving benefits with respect to that week under the
5 unemployment compensation law of Canada, and who does not have
6 rights to benefits under the unemployment compensation law of any
7 other state or the United States or to compensation or allowances
8 under any other federal law, such as the trade expansion act, the
9 automotive products trade act, or the railroad unemployment
10 insurance act; however, if the individual is seeking benefits and
11 the appropriate agency finally determines that the individual is
12 not entitled to benefits under another law, the individual shall
13 be considered to have exhausted the right to benefits. For the
14 purpose of the preceding sentence, an individual shall have
15 exhausted the right to regular benefits under this section with
16 respect to any week of unemployment in the individual's
17 eligibility period under either of the following circumstances:
18 (i) When payments of regular benefits may not be made for
19 that week because the individual has received all regular
20 benefits available based on his or her employment or wages during
21 the base period for the current benefit year.
22 (ii) When the right to the benefits has terminated before
23 that week by reason of the expiration or termination of the
24 benefit year with respect to which the right existed; and the
25 individual has no, or insufficient, wages or employment to
26 establish a new benefit year. However, for purposes of this
27 subsection, an individual shall be considered to have exhausted
1 the right to regular benefits with respect to any week of
2 unemployment in his or her eligibility period when the individual
3 may become entitled to regular benefits with respect to that week
4 or future weeks, but the benefits are not payable at the time the
5 individual claims extended benefits because final action on a
6 pending redetermination or on an appeal has not yet been taken
7 with respect to eligibility or qualification for the regular
8 benefits or when the individual may be entitled to regular
9 benefits with respect to future weeks of unemployment, but
10 regular benefits are not payable with respect to any week of
11 unemployment in his or her eligibility period by reason of
12 seasonal limitations in any state unemployment compensation law.
13 (b) Except where inconsistent with the provisions of this
14 section, the terms and conditions of this act that apply to
15 claims for regular benefits and to the payment of those benefits
16 apply to claims for extended benefits and to the payment of those
17 benefits.
18 (c) An individual shall not be paid additional compensation
19 and extended compensation with respect to the same week. If an
20 individual is potentially eligible for both types of compensation
21 in this state with respect to the same week, the bureau
22 unemployment agency may pay extended compensation instead of
23 additional compensation with respect to the week. If an
24 individual is potentially eligible for extended compensation in 1
25 state and potentially eligible for additional compensation for
26 the same week in another state, the individual may elect which of
27 the 2 types of compensation to claim.
1 (2) The bureau unemployment
agency shall establish, for each
2 eligible individual who files an application, an extended benefit
3 account with respect to that individual's benefit year. The
4 amount established in the account shall be determined as follows:
5 (a) If subdivision (b) does not apply, whichever of the
6 following is smaller:
7 (i) Fifty percent of the total amount of regular benefits
8 payable to the individual under this act during the benefit year.
9 (ii) Thirteen times the individual's weekly extended benefit
10 rate.
11 (b) With respect to a week beginning in a period in which
12 the average rate of total unemployment as described in subsection
13 (5)(c)(ii) equals or exceeds 8%, but no later than the end of the
14 week in which extended benefits payable under this section cease
15 to be funded under section 2005 of the American recovery and
16 reinvestment act of 2009, Public Law 111-5, whichever of the
17 following is smaller:
18 (i) Eighty percent of the total amount of regular benefits
19 payable to the individual under this act during the benefit year.
20 (ii) Twenty times the individual's weekly extended benefit
21 rate.
22 If an amount determined under this subsection is not an
23 exact multiple of 1/2 of the individual's weekly extended benefit
24 rate, the amount shall be decreased to the next lower such
25 multiple.
26 (3) All of the following apply to an extended benefit
27 period:
1 (a) The period begins with the third week after whichever of
2 the following weeks first occurs:
3 (i) A week for which there is a national "on" indicator as
4 determined by the United States secretary of labor.
5 (ii) A week for which there is a Michigan "on" indicator.
6 (b) The period ends with the third week after the first week
7 for which there is both a national "off" indicator and a Michigan
8 "off" indicator.
9 (c) The period is at least 13 consecutive weeks long, and
10 does not begin by reason of a Michigan "on" indicator before the
11 fourteenth week after the close of a prior extended benefit
12 period under this section. However, an extended benefit period
13 terminates with the week preceding the week for which no extended
14 benefit payments are considered to be shareable compensation
15 under the federal-state extended unemployment compensation act of
16 1970, section 3304 nt of the internal revenue code of 1986, 26
17 USC 3304 nt.
18 (4) An individual's "eligibility period" consists of the
19 weeks in his or her benefit year that begin in an extended
20 benefit period, and if his or her benefit year ends within the
21 extended benefit period, any weeks thereafter that begin in the
22 period.
23 (5) (a) With respect to weeks beginning after September 25,
24 1982, a national "on" indicator for a week shall be determined by
25 the United States secretary of labor.
26 (b) A national "off" indicator for a week shall be
27 determined by the United States secretary of labor.
1 (c) There is a Michigan "on" indicator for a week if 1 or
2 both of the following apply:
3 (i) The rate of insured unemployment under this act for the
4 period consisting of that week and the immediately preceding 12
5 weeks equaled or exceeded 120% of the average of the insured
6 unemployment rates for the corresponding 13-week period ending in
7 each of the preceding 2 calendar years, and equaled or exceeded
8 5%. With respect to compensation for each week of unemployment
9 beginning after December 17, 2010 and ending December 31, 2011,
10 the rate of insured unemployment under this act for the period
11 consisting of that week and the immediately preceding 12 weeks
12 equaled or exceeded 120% of the average of the insured
13 unemployment rates for the corresponding 13-week period ending in
14 each of the preceding 3 calendar years, and equaled or exceeded
15 5%.
16 (ii) For weeks beginning after December 17, 2010 and ending
17 with the week ending 4 weeks before the last week of unemployment
18 for which 100% federal sharing is available under section 2005(a)
19 of Public Law 111-5, without regard to the extension of federal
20 sharing for certain claims as provided under section 2005(c) of
21 that law, the average rate of total unemployment in this state,
22 seasonally adjusted, as determined by the United States secretary
23 of labor, for the period consisting of the most recent 3 months
24 for which data for all states are published before the close of
25 the week equaled or exceeded both of the following:
26 (A) Six and one-half percent.
27 (B) One hundred ten percent of the average rate of total
1 unemployment in this state, seasonally adjusted, for the period
2 consisting of the corresponding 3-month period in any or all of
3 the preceding 3 calendar years.
4 (d) There is a Michigan "off" indicator for a week if, for
5 the period consisting of that week and the immediately preceding
6 12 weeks, either subdivision (c)(i) or (c)(ii) was not satisfied.
7 Notwithstanding any other provision of this act, if this state is
8 in a period in which temporary extended unemployment compensation
9 is payable in this state under title II of the job creation and
10 worker assistance act of 2002, Public Law 107-147, or another
11 similar federal law, and if the governor has the authority under
12 that federal act or another similar federal law, then the
13 governor may elect to trigger "off" the Michigan indicator for
14 extended benefits under this act only for a period in which
15 temporary extended unemployment compensation is payable in this
16 state, if the election by the governor would not result in a
17 decrease in the number of weeks of unemployment benefits payable
18 to an individual under this act or under federal law.
19 (e) For purposes of subdivisions (c) and (d), the rate of
20 insured unemployment for any 13-week period shall be determined
21 by reference to the average monthly covered employment under this
22 act for the first 4 of the most recent 6 calendar quarters ending
23 before the close of that period.
24 (f) As used in this subsection, "rate of insured
25 unemployment" means the percentage determined by dividing:
26 (i) The average weekly number of individuals filing claims
27 for regular benefits for weeks of unemployment with respect to
1 the specified period as determined on the basis of the reports
2 made by all state agencies or, in the case of subdivisions (c)
3 and (d), by the bureau unemployment
agency, to the federal
4 government; by
5 (ii) In the case of subdivisions (c) and (d), the average
6 monthly covered employment under this act for the specified
7 period.
8 (g) Calculations under subdivisions (c) and (d) shall be
9 made by the bureau unemployment
agency and shall conform to
10 regulations, if any, prescribed by the United States secretary of
11 labor under section 3304 nt of the internal revenue code of 1986,
12 26 USC 3304 nt.
13 (6) As used in this section:
14 (a) "Regular benefits" means benefits payable to an
15 individual under this act and, unless otherwise expressly
16 provided, under any other state unemployment compensation law,
17 including unemployment benefits payable pursuant to 5 USC 8501 to
18 8525, other than extended benefits, and other than additional
19 benefits which includes training benefits under section 27(g).
20 (b) "Extended benefits" means benefits, including additional
21 benefits and unemployment benefits payable pursuant to 5 USC 8501
22 to 8525, payable for weeks of unemployment beginning in an
23 extended benefit period to an individual as provided under this
24 section.
25 (c) "Additional benefits" means benefits totally financed by
26 a state and payable to exhaustees by reason of conditions of high
27 unemployment or by reason of other special factors under the
1 provisions of any state law as well as training benefits paid
2 under section 27(g) with respect to an extended benefit period.
3 (d) "Weekly extended benefit rate" means an amount equal to
4 the amount of regular benefits payable under this act to an
5 individual within the individual's benefit year for a week of
6 total unemployment, unless the individual had more than 1 weekly
7 extended benefit rate within that benefit year, in which case the
8 individual's weekly extended benefit rate shall be computed by
9 dividing the maximum amount of regular benefits payable under
10 this act within that benefit year by the number of weeks for
11 which benefits were payable, adjusted to the next lower multiple
12 of $1.00.
13 (e) "Benefits payable" includes all benefits computed in
14 accordance with section 27(d), irrespective of whether the
15 individual was otherwise eligible for the benefits within his or
16 her current benefit year and irrespective of any benefit
17 reduction by reason of a disqualification that required a
18 reduction.
19 (7) (a) Notwithstanding the provisions of subsection (1)(b),
20 an individual is ineligible for payment of extended benefits for
21 any week of unemployment if the bureau unemployment agency finds
22 that during that period either of the following occurred:
23 (i) The individual failed to accept any offer of suitable
24 work or failed to apply for any suitable work to which the
25 individual was referred by the bureau.unemployment agency.
26 (ii) The individual failed to actively engage in seeking work
27 as described in subdivision (f).
1 (b) Any individual who has been found ineligible for
2 extended benefits under subdivision (a) shall also be denied
3 benefits beginning with the first day of the week following the
4 week in which the failure occurred and until the individual has
5 been employed in each of 4 subsequent weeks, whether or not
6 consecutive, and has earned remuneration equal to not less than 4
7 times the extended weekly benefit amount, as determined under
8 subsection (2).
9 (c) As used in this subsection, "suitable work" means, with
10 respect to any individual, any work that is within that
11 individual's capabilities, if both of the following apply:
12 (i) The gross weekly remuneration payable for the work
13 exceeds the sum of the following:
14 (A) The individual's extended weekly benefit amount as
15 determined under subsection (2).
16 (B) The amount, if any, of supplemental unemployment
17 compensation benefits, as defined in section 501(c)(17)(D) of the
18 internal revenue code of 1986, 26 USC 501(c)(17)(D), payable to
19 the individual for that week.
20 (ii) The employer pays wages not less than the higher of the
21 minimum wage provided by section 6(a)(1) of the fair labor
22 standards act of 1938, 29 USC 206(a)(1), without regard to any
23 exemption, or the applicable state or local minimum wage.
24 (d) An individual shall not be denied extended benefits for
25 failure to accept an offer of, or apply for, any job that meets
26 the definition of suitable work in subdivision (c) if 1 or more
27 of the following are true:
1 (i) The position was not offered to the individual in writing
2 and was not listed with the state employment service.
3 (ii) The failure could not result in a denial of benefits
4 under the definition of suitable work in section 29(6) to the
5 extent that the criteria of suitability in that section are not
6 inconsistent with the provisions of subdivision (c).
7 (iii) The individual furnishes satisfactory evidence to the
8 bureau unemployment
agency that his or her prospects for
9 obtaining work in his or her customary occupation within a
10 reasonably short period are good. If that evidence is deemed
11 satisfactory for this purpose, the determination of whether any
12 work is suitable with respect to that individual shall be made in
13 accordance with the definition of suitable work in section 29(6)
14 without regard to the definition in subdivision (c).
15 (e) Notwithstanding subsection (1)(b), work is not suitable
16 work for an individual if the work does not meet the labor
17 standard provisions required by section 3304(a)(5) of the
18 internal revenue code of 1986, 26 USC 3304(a)(5), and section
19 29(7).
20 (f) For the purposes of subdivision (a)(ii), an individual is
21 actively engaged in seeking work during any week if both of the
22 following are true:
23 (i) The individual has engaged in a systematic and sustained
24 effort to obtain work during that week.
25 (ii) The individual
furnishes tangible evidence to the bureau
26 unemployment agency that he or she has engaged in a systematic
27 and sustained effort during that week.
1 (g) The bureau unemployment
agency shall refer any applicant
2 for extended benefits to any suitable work that meets the
3 criteria prescribed in subdivisions (c) and (d).
4 (h) An individual is not eligible to receive extended
5 benefits with respect to any week of unemployment in his or her
6 eligibility period if that individual has been disqualified for
7 benefits under this act because he or she voluntarily left work,
8 was discharged for misconduct, or failed to accept an offer of or
9 apply for suitable work unless the individual requalified in
10 accordance with a specific provision of this act requiring that
11 the individual be employed subsequent to the week in which the
12 act or discharge occurred that caused the disqualification.
13 (8) (a) Except as provided in subdivision (b), payment of
14 extended benefits shall not be made to any individual for any
15 week of unemployment that otherwise would have been payable
16 pursuant to an interstate claim filed in any state under the
17 interstate benefit payment plan, if an extended benefit period is
18 not in effect for the week in the state in which the interstate
19 claim is filed.
20 (b) Subdivision (a) does not apply with respect to the first
21 2 weeks for which extended benefits are payable, pursuant to an
22 interstate claim, to the individual from the extended benefit
23 account established for the individual.
24 (9) Notwithstanding the provisions of subsection (1)(b), an
25 individual who established a benefit year under section 46a 46 on
26 or after January 2, 1983, shall be eligible to receive extended
27 benefits only if the individual earned wages in an amount
1 exceeding 40 times the individual's most recent weekly benefit
2 rate during the base period of the benefit year that is used to
3 establish the individual's extended benefit account under
4 subsection (2).
5 (10) This subsection is effective for weeks of unemployment
6 beginning after October 30, 1982. Notwithstanding any other
7 provision of this section, an individual's extended benefit
8 entitlement, with respect to weeks of unemployment beginning
9 after the end of the benefit year, shall be reduced, but not
10 below zero, by the product of the number of weeks for which the
11 individual received any amounts of trade readjustment allowances,
12 paid under the trade act of 1974, Public Law 93-618, within that
13 benefit year, multiplied by the individual's weekly benefit
14 amount for extended benefits.
15 Enacting section 1. Sections 35 and 36 of 1936 (Ex Sess) PA
16 1, MCL 421.35 and 421.36, are repealed.