HOUSE Substitute For
SENATE BILL NO. 886
A bill to amend 1936 (Ex Sess) PA 1, entitled
"Michigan employment security act,"
by amending sections 17, 27, 28, 28c, 28d, 29, 32, 48, and 64 (MCL 421.17, 421.27, 421.28, 421.28c, 421.28d, 421.29, 421.32, 421.48, and 421.64), sections 17, 48, and 64 as amended by 2011 PA 269, sections 27 and 32 as amended by 2016 PA 522, section 28 as amended by 2020 PA 83, section 28c as amended by 2012 PA 579, section 28d as added by 2012 PA 216, and section 29 as amended by 2013 PA 146, and by adding sections 32c and 32d.
the people of the state of michigan enact:
Sec. 17. (1) The unemployment agency shall maintain in
the unemployment compensation fund a nonchargeable benefits account and a
separate experience account for each employer as provided in this section. This act does not give an employer or
individuals in the employer's service prior claims or rights to the amount paid
by the employer to the unemployment compensation fund. All contributions to
that fund shall be pooled and available to pay benefits to any individual
entitled to the benefits under this act, irrespective of the source of the
contributions.
(2) The nonchargeable
benefits account shall be credited with the following:
(a) All net earnings
received on money, property, or securities in the fund.
(b) Any positive balance
remaining in the employer's experience account as of the second June 30
computation date occurring after the employer has ceased to be subject to this
act or after the employer has elected to change from a contributing employer to
a reimbursing employer.
(c) The proceeds of the
nonchargeable benefits component of employers' contribution rates determined as
provided in section 19(a)(5).
(d) All reimbursements
received under section 11(c).
(e) All amounts that may
be paid or advanced by the federal government under section 903 or section 1201
of the social security act, 42 USC 1103 and 1321, to the account of the state
in the federal unemployment trust fund.
(f) All benefits
improperly paid to claimants that have been recovered and that were previously
charged to an employer's account.
(g) Any benefits
forfeited by an individual by application of section 62(b).
(h) The amount of any
benefit check, any employer refund check, any
claimant restitution refund check, or other payment duly issued that has not
been presented for payment within 1 year after the date of issue.
(i) Any other
unemployment fund income not creditable to the experience account of any
employer.
(j) Any negative balance
transferred to an employer's new experience account pursuant to this section.
(k) Amounts transferred
from the contingent fund under section 10.
(3) The nonchargeable
benefits account shall be charged with the following:
(a) Any negative balance
remaining in an employer's experience account as of the second June 30
computation date occurring after the employer has ceased to be subject to this
act or has elected to change from a contributing employer to a reimbursing
employer.
(b) Refunds of amounts
erroneously collected due to the nonchargeable benefits component of an
employer's contribution rate.
(c) All training benefits
paid under section 27(g) not reimbursable by the federal government and based
on service with a contributing employer.
(d) Any positive balance
credited or transferred to an employer's new experience account under this
subsection.
(e) Repayments to the
federal government of amounts advanced by it under section 1201 of the social
security act, 42 USC 1321, to the unemployment compensation fund established by
this act.
(f) The amounts received
by the unemployment compensation fund under section 903 of the social security
act, 42 USC 1103, that may be appropriated to the unemployment agency in
accordance with subsection (8).
(g) All benefits
determined to have been improperly paid to claimants that have been credited to
employers' accounts in accordance with section 20(a).
(h) The amount of any
substitute check or other payment issued to replace an uncashed benefit check,
employer refund check, claimant restitution refund check, or other payment
previously credited to this account.
(i) The amount of any
benefit check or other payment issued that would be chargeable to the
experience account of an employer who has ceased to be subject to this act, and
who has had a balance transferred from the employer's experience account to the
solvency or nonchargeable benefits account.
(j) All benefits that
become nonchargeable to an employer under section 19(b) or (c), 29(1)(a)(ii) or (iii) or (3), or 42a.
(k) For benefit years beginning before October 1, 2000, with
benefits allocated under section 20(e)(2) for a week of unemployment in which a
claimant earns remuneration with a contributing employer that equals or exceeds
the amount of benefits allocated to that contributing employer, and for benefit
years beginning on or after October 1, 2000, with benefits allocated under
section 20(f) for a week of unemployment in which a claimant earns remuneration
with a contributing employer that equals or exceeds the amount of benefits
allocated to that contributing employer.
(l) Benefits that are
nonchargeable to an employer's account in accordance with section 20(i) or (j).
(m) Benefits otherwise chargeable to the account of an
employer when the benefits are payable solely on the basis of combining wages paid by a Michigan employer with wages
paid by a non-Michigan employer under the interstate arrangement for combining
employment and wages under 20 CFR 616.1 to 616.11.
(4) All contributions paid by an employer shall be credited
to the unemployment compensation fund, and, except as otherwise provided with
respect to the proceeds of the nonchargeable benefits component of employers'
contribution rates by section 19(a)(5), to the employer's experience account,
as of the date when paid. However, those contributions paid during any July
shall be credited as of the immediately preceding June 30. Additional
contributions paid by an employer as the result of a retroactive contribution
rate adjustment, solely for the purpose of this subsection, shall be credited
to the employer's experience account as if paid when due, if the payment is
received within 30 days after the issuance of the initial assessment that
results from the contribution rate adjustment and a written request for the
application is filed by the employer during this period.
(5) If an employer who has ceased to be subject to this act,
and who has had a positive or negative balance transferred as provided in
subsection (2) or (3) from the employer's experience account to the solvency or
nonchargeable benefits account as of the second computation date after the
employer has ceased to be subject to this act, becomes subject to this act again
within 6 years after that computation date, the unemployment agency shall
transfer the positive or negative balance, adjusted by the debits and credits
that are made after the date of transfer, to the employer's new experience
account.
(6) If an employer's status as a reimbursing employer is
terminated within 6 years after the date the employer's experience account as a prior contributing employer was
transferred to the solvency or nonchargeable benefits account as provided in
subsection (2) or (3) and the employer continues to be subject to this act as a
contributing employer, any positive or negative balance in the employer's
experience account as a prior contributing employer, which was transferred to
the solvency or nonchargeable benefits account, shall be transferred to the
employer's new experience account. However, an employer who is delinquent with
respect to any reimbursement payments in lieu of contributions for which the
employer may be liable shall not have a positive balance transferred during the
delinquency.
(7) If a balance is transferred to an employer's new account
under subsection (5) or (6), the employer shall not be considered a
"qualified employer" until the employer has again been subject to
this act for the period set forth in section 19(a)(1).
(8) All money credited under section 903 of the social
security act, 42 USC 1103, to the account of the state in the federal
unemployment trust fund shall immediately be credited by the unemployment
agency to the fund's nonchargeable benefits account. There is authorized to be
appropriated to the unemployment agency from the money credited to the
nonchargeable benefits account under this subsection, an amount determined to
be necessary for the proper and efficient administration by the unemployment
agency of this act for purposes for which federal grants under title 3 of the
social security act, 42 USC 501 to 504, and the Wagner-Peyser act, 29 USC 49 to
49l-2, are not available or are insufficient. The appropriation
shall expire not more than 2 years after the date of enactment and shall
provide that any unexpended balance shall then be credited to the nonchargeable
benefits account. An appropriation shall not be made
under this subsection for an amount that exceeds the "adjusted
balance" of the nonchargeable benefits account on the most recent
computation date. Appropriations made under this subsection shall limit the
total amount that may be obligated by the unemployment agency during a fiscal
year to an amount that does not exceed the amount by which the aggregate of the
amounts credited to the nonchargeable benefits account under this subsection
during the fiscal year and the 24 preceding fiscal years, exceeds the aggregate
of the amounts obligated by the unemployment agency by appropriation under this
subsection and charged against the amounts thus credited to the nonchargeable
benefits account during any of the 25 fiscal years and any amounts credited to
the nonchargeable benefits account that have been used for the payment of
benefits.
(9) Notwithstanding
any other provision of this act, any benefit paid to a claimant that is laid
off or placed on a leave of absence must not be charged to the account of any
employer who otherwise would have been charged but instead must be charged to
the nonchargeable benefits account. This subsection does not apply after
December 31, 2020.
Sec. 27. (a)(1) When a determination, redetermination,
or decision is made that benefits are due an unemployed individual, the
benefits become payable from the fund and continue to be payable to the
unemployed individual, subject to the limitations imposed by the individual's
monetary entitlement, if the individual continues to be unemployed and to file
claims for benefits, until the determination, redetermination, or decision is
reversed, a determination, redetermination, or decision on a new issue holding
the individual disqualified or ineligible is made, or, for benefit years beginning before October 1, 2000, a new
separation issue arises resulting from subsequent work.
(2) Benefits are payable
in person or by mail through employment security offices in accordance with
rules promulgated by the unemployment agency.
(b)(1) Subject to
subsection (f), the weekly benefit rate for an individual, with respect to
benefit years beginning before October 1, 2000, is 67% of the individual's
average after tax weekly wage, except that the individual's maximum weekly
benefit rate must not exceed $300.00. However, with respect to benefit years
beginning on or after October 1, 2000, the individual's weekly benefit rate is
4.1% of the individual's wages paid in the calendar quarter of the base period
in which the individual was paid the highest total wages, plus $6.00 for each
dependent as defined in subdivision (4), up to a maximum of 5 dependents,
claimed by the individual at the time the individual files a new claim for
benefits, except that the individual's maximum weekly benefit rate must not
exceed $300.00 before April 26, 2002 and $362.00 for claims filed on and after
April 26, 2002. The weekly benefit rate for an individual claiming benefits on
and after April 26, 2002 must be recalculated subject to the $362.00 maximum
weekly benefit rate. The unemployment agency shall establish the procedures
necessary to verify the number of dependents claimed. If a person fraudulently
claims a dependent, that person is subject to the penalties set forth in
sections 54 and 54c. For benefit years beginning on or after October 2, 1983,
the weekly benefit rate must be adjusted to the next lower multiple of $1.00.
(2) For benefit years
beginning before October 1, 2000, the state average weekly wage for a calendar
year is computed on the basis of the 12 months
ending the June 30 immediately before that calendar year.
(3) For benefit years
beginning before October 1, 2000, a dependent means any of the following
persons who are receiving and for at least 90 consecutive days immediately
before the week for which benefits are claimed, or, in the case of a dependent
husband, wife, or child, for the duration of the marital or parental
relationship, if the relationship has existed less than 90 days, has received
more than 1/2 the cost of his or her support from the individual claiming
benefits:
(a) A child, including
stepchild, adopted child, or grandchild of the individual who is under 18 years
of age, or 18 years of age or over if, because of physical or mental infirmity,
the child is unable to engage in a gainful occupation, or is a full-time
student as defined by the particular educational institution, at a high school,
vocational school, community or junior college, or college or university and
has not attained the age of 22.
(b) The husband or wife
of the individual.
(c) The legal father or
mother of the individual if that parent is either more than 65 years of age or
is permanently disabled from engaging in a gainful occupation.
(d) A brother or sister
of the individual if the brother or sister is orphaned or the living parents
are dependent parents of an individual, and the brother or sister is under 18
years of age, or 18 years of age or over if, because of physical or mental
infirmity, the brother or sister is unable to engage in a gainful occupation,
or is a full-time student as defined by the particular educational institution,
at a high school, vocational school, community or junior college, or college or
university and is less than 22 years of age.
(4) For benefit years
beginning on or after October 1, 2000, a dependent means any of the following
persons who received for at least 90 consecutive days immediately before the
first week of the benefit year or, in the case of a dependent husband, wife, or
child, for the duration of the marital or parental relationship if the
relationship existed less than 90 days before the beginning of the benefit
year, has received more than 1/2 the cost of his or her support from the
individual claiming the benefits:
(a) A child, including
stepchild, adopted child, or grandchild of the individual who is under 18 years
of age, or 18 years of age and over if, because of physical or mental
infirmity, the child is unable to engage in a gainful occupation, or is a
full-time student as defined by the particular educational institution, at a
high school, vocational school, community or junior college, or college or
university and has not attained the age of 22.
(b) The husband or wife
of the individual.
(c) The legal father or
mother of the individual if that parent is either more than 65 years of age or
is permanently disabled from engaging in a gainful occupation.
(d) A brother or sister
of the individual if the brother or sister is orphaned or the living parents
are dependent parents of an individual, and the brother or sister is under 18
years of age, or 18 years of age and over if, because of physical or mental
infirmity, the brother or sister is unable to engage in a gainful occupation,
or is a full-time student as defined by the particular educational institution,
at a high school, vocational school, community or junior college, or college or
university and is less than 22 years of age.
(5) The number of dependents established for an individual at the
beginning of the benefit year shall remain in effect during the entire benefit
year.
(6) Dependency status of
a dependent, child or otherwise, once established or fixed in favor of a person
is not transferable to or usable by another person with respect to the same
week.
Failure on the part of an
individual, due to misinformation or lack of information, to furnish all
information material for determination of the number of the individual's
dependents is good cause to issue a redetermination as to the amount of
benefits based on the number of the individual's dependents as of the beginning
of the benefit year.
(c) Subject to subsection
(f), all of the following apply to eligible individuals:
(1) Each eligible
individual must be paid a weekly benefit rate with respect to the week for
which the individual earns or receives no remuneration. Notwithstanding the
definition of week in section 50, if within 2 consecutive weeks in which an
individual was not unemployed within the meaning of section 48 there was a
period of 7 or more consecutive days for which the individual did not earn or
receive remuneration, that period is considered a week for benefit purposes
under this act if a claim for benefits for that period is filed not later than
30 days after the end of the period.
(2) The weekly benefit
rate is reduced with respect to each week in which the eligible individual
earns or receives remuneration at the rate of 40 cents for each whole $1.00 of
remuneration earned or received during that week. Beginning October 1, 2015, an
eligible individual's weekly benefit rate is reduced at the rate of 50 cents for each whole $1.00 of
remuneration in which the eligible individual earns or receives remuneration in
that benefit week. The weekly benefit rate is not reduced under this
subdivision for remuneration received for on-call or training services as a
volunteer firefighter, if the volunteer firefighter receives less than
$10,000.00 in a calendar year for services as a volunteer firefighter.
(3) An individual who
receives or earns partial remuneration may not receive a total of benefits and
earnings that exceeds 1-3/5 times his or her weekly benefit amount. For each
dollar of total benefits and earnings that exceeds 1-3/5 times the individual's
weekly benefit amount, benefits are reduced by $1.00. Beginning October 1,
2015, the total benefits and earnings for an individual who receives or earns
partial remuneration may not exceed 1-1/2 times his or her weekly benefit
amount. The individual's benefits are reduced by $1.00 for each dollar by which
the total benefits and earnings exceed 1-1/2 times the individual's weekly
benefit amount.
(4) If the reduction in a
claimant's benefit rate for a week in accordance with subdivision (2) or (3)
results in a benefit rate greater than zero for that week, the claimant's
balance of weeks of benefit payments is reduced by 1 week.
(5) All remuneration for
work performed during a shift that terminates on 1 day but that began on the
preceding day is considered to have been earned by the eligible individual on
the preceding day.
(6) The unemployment
agency shall report annually to the legislature the following information with
regard to subdivisions (2) and (3):
(a) The number of individuals whose weekly benefit rate was reduced at
the rate of 40 or 50 cents for each whole $1.00 of remuneration earned or
received over the immediately preceding calendar year.
(b) The number of
individuals who received or earned partial remuneration at or exceeding the
applicable limit of 1-1/2 or 1-3/5 times their weekly benefit amount prescribed
in subdivision (3) for any 1 or more weeks during the immediately preceding
calendar year.
(7) The unemployment
agency shall not use prorated quarterly wages to establish a reduction in
benefits under this subsection.
(d) Subject to subsection
(f) and this subsection, the maximum benefit amount payable to an individual in
a benefit year for purposes of this section and section 20(d) is the number of
weeks of benefits payable to an individual during the benefit year, multiplied
by the individual's weekly benefit rate. The number of weeks of benefits
payable to an individual shall be calculated by taking 43% of the individual's
base period wages and dividing the result by the individual's weekly benefit
rate. If the quotient is not a whole or half number, the result is rounded down
to the nearest half number. However, for each eligible individual filing an
initial claim before January 15, 2012, not more than 26 weeks of benefits or
less than 14 weeks of benefits are payable to an individual in a benefit year.
For each eligible individual filing an initial claim on or after January 15,
2012, not more than 20 weeks of benefits or less than 14 weeks of benefits are
payable to an individual in a benefit year. The limitation of total benefits
set forth in this subsection does not apply to claimants declared eligible for
training benefits in accordance with subsection (g). Notwithstanding any other provision of this act, with respect to benefit years and claims for weeks beginning before
January 1, 2021, for each eligible individual who files a claim for benefits
and establishes a benefit year, not more than 26 weeks of benefits or less than
14 weeks of benefits may be payable to an individual in a benefit year.
(e) When a claimant dies
or is judicially declared insane or mentally incompetent, unemployment
compensation benefits accrued and payable to that person for weeks of
unemployment before death, insanity, or incompetency, but not paid, become due
and payable to the person who is the legal heir or guardian of the claimant or
to any other person found by the commission to be equitably entitled to the
benefits by reason of having incurred expense in behalf of the claimant for the
claimant's burial or other necessary expenses.
(f)(1) For benefit years
beginning before October 1, 2000, and notwithstanding any inconsistent
provisions of this act, the weekly benefit rate of each individual who is
receiving or will receive a "retirement benefit", as defined in
subdivision (4), is adjusted as provided in subparagraphs (a), (b), and (c).
However, an individual's extended benefit account and an individual's weekly
extended benefit rate under section 64 is established without reduction under
this subsection unless subdivision (5) is in effect. Except as otherwise
provided in this subsection, all other provisions of this act continue to apply
in connection with the benefit claims of those retired persons.
(a) If and to the extent
that unemployment benefits payable under this act would be chargeable to an
employer who has contributed to the financing of a retirement plan under which
the claimant is receiving or will receive a retirement benefit yielding a pro
rata weekly amount equal to or larger than the claimant's weekly benefit rate as otherwise established under
this act, the claimant must not receive unemployment benefits that would be
chargeable to the employer under this act.
(b) If and to the extent
that unemployment benefits payable under this act would be chargeable to an
employer who has contributed to the financing of a retirement plan under which
the claimant is receiving or will receive a retirement benefit yielding a pro
rata weekly amount less than the claimant's weekly benefit rate as otherwise
established under this act, then the weekly benefit rate otherwise payable to
the claimant and chargeable to the employer under this act is reduced by an
amount equal to the pro rata weekly amount, adjusted to the next lower multiple
of $1.00, which the claimant is receiving or will receive as a retirement
benefit.
(c) If the unemployment
benefit payable under this act would be chargeable to an employer who has not
contributed to the financing of a retirement plan under which the claimant is
receiving or will receive a retirement benefit, then the weekly benefit rate of
the claimant as otherwise established under this act is not reduced due to
receipt of a retirement benefit.
(d) If the unemployment
benefit payable under this act is computed on the basis of multiemployer credit
weeks and a portion of the benefit is allocable under section 20(e) to an
employer who has contributed to the financing of a retirement plan under which
the claimant is receiving or will receive a retirement benefit, the adjustments
required by subparagraph (a) or (b) apply only to that portion of the weekly
benefit rate that would otherwise be allocable and chargeable to the employer.
(2) If an individual's
weekly benefit rate under this act was established
before the period for which the individual first receives a retirement benefit,
any benefits received after a retirement benefit becomes payable must be
determined in accordance with the formula stated in this subsection.
(3) When necessary to assure
prompt payment of benefits, the commission shall determine the pro rata weekly
amount yielded by an individual's retirement benefit based on the best
information currently available to it. In the absence of fraud, a determination
must not be reconsidered unless it is established that the individual's actual
retirement benefit in fact differs from the amount determined by $2.00 or more
per week. The reconsideration applies only to benefits that may be claimed
after the information on which the reconsideration is based was received by the
commission.
(4)(a) As used in this
subsection, "retirement benefit" means a benefit, annuity, or pension
of any type or that part thereof that is described in subparagraph (b) that is
both:
(i) Provided as an incident of employment under an established
retirement plan, policy, or agreement, including federal social security Social Security if
subdivision (5) is in effect.
(ii) Payable to an
individual because the individual has qualified on the basis of attained age, length
of service, or disability, whether or not the individual retired or was retired
from employment. Amounts paid to individuals in the course of liquidation of a
private pension or retirement fund because of termination of the business or of
a plant or department of the business of the employer involved are not
retirement benefits.
(b) If a benefit as described in subparagraph (a) is payable
or paid to the individual under a plan to which the individual has contributed:
(i) Less than 1/2 of
the cost of the benefit, then only 1/2 of the benefit is treated as a
retirement benefit.
(ii) One-half or more
of the cost of the benefit, then none of the benefit is treated as a retirement
benefit.
(c) The burden of establishing the extent of an individual's
contribution to the cost of his or her retirement benefit for the purpose of
subparagraph (b) is upon the employer who has contributed to the plan under
which a benefit is provided.
(5) Notwithstanding any other provision of this subsection,
for any week that begins after March 31, 1980, and with respect to which an
individual is receiving a governmental or other pension and claiming
unemployment compensation, the weekly benefit amount payable to the individual
for those weeks is reduced, but not below zero, by the entire prorated weekly
amount of any governmental or other pension, retirement or retired pay,
annuity, or any other similar payment that is based on any previous work of the
individual. This reduction is made only if it is required as a condition for full
tax credit against the tax imposed by the federal unemployment tax act, 26 USC
3301 to 3311.
(6) For benefit years beginning on or after October 1, 2000,
notwithstanding any inconsistent provisions of this act, the weekly benefit
rate of each individual who is receiving or will receive a retirement benefit,
as defined in subdivision (4), is adjusted as provided in subparagraphs (a),
(b), and (c). However, an individual's extended benefit account and an
individual's weekly extended benefit rate under section 64 is established
without reduction under this subsection, unless subdivision (5) is in effect.
Except as otherwise provided in this subsection, all the other provisions of this act apply to the benefit
claims of those retired persons. However, if the reduction would impair the
full tax credit against the tax imposed by the federal unemployment tax act, 26
USC 3301 to 3311, unemployment benefits are not reduced as provided in
subparagraphs (a), (b), and (c) for receipt of any governmental or other pension,
retirement or retired pay, annuity, or other similar payment that was not
includable in the gross income of the individual for the taxable year in which
it was received because it was a part of a rollover distribution.
(a) If any base period or chargeable employer has contributed
to the financing of a retirement plan under which the claimant is receiving or
will receive a retirement benefit yielding a pro rata weekly amount equal to or
larger than the claimant's weekly benefit rate as otherwise established under
this act, the claimant is not eligible to receive unemployment benefits.
(b) If any base period employer or chargeable employer has
contributed to the financing of a retirement plan under which the claimant is
receiving or will receive a retirement benefit yielding a pro rata weekly
amount less than the claimant's weekly benefit rate as otherwise established
under this act, then the weekly benefit rate otherwise payable to the claimant
is reduced by an amount equal to the pro rata weekly amount, adjusted to the
next lower multiple of $1.00, which the claimant is receiving or will receive
as a retirement benefit.
(c) If no base period or separating employer has contributed
to the financing of a retirement plan under which the claimant is receiving or
will receive a retirement benefit, then the weekly benefit rate of the claimant
as otherwise established under this act shall not be reduced due to receipt of
a retirement benefit.
(g) Notwithstanding any other provision of this
act, an individual pursuing vocational training or retraining pursuant to
section 28(2) who has exhausted all benefits available under subsection (d) may
be paid for each week of approved vocational training pursued beyond the date
of exhaustion a benefit amount in accordance with subsection (c), but not in
excess of the individual's most recent weekly benefit rate. However, an
individual must not be paid training benefits totaling more than 18 times the
individual's most recent weekly benefit rate. The expiration or termination of
a benefit year does not stop or interrupt payment of training benefits if the
training for which the benefits were granted began before expiration or
termination of the benefit year.
(h) A payment of accrued unemployment benefits is not payable
to an eligible individual or in behalf of that individual as provided in
subsection (e) more than 6 years after the ending date of the benefit year
covering the payment or 2 calendar years after the calendar year in which there
is final disposition of a contested case, whichever is later.
(i) Benefits based on service in employment described in
section 42(8), (9), and (10) are payable in the same amount, on the same terms,
and subject to the same conditions as compensation payable on the basis of
other service subject to this act, except that:
(1) With respect to service performed in an instructional,
research, or principal administrative capacity for an institution of higher
education as defined in section 53(2), or for an educational institution other
than an institution of higher education as defined in section 53(3), benefits
are not payable to an individual based on those
services for any week of unemployment beginning after December 31, 1977 that
commences during the period between 2 successive academic years or during a
similar period between 2 regular terms, whether or not successive, or during a
period of paid sabbatical leave provided for in the individual's contract, to
an individual if the individual performs the service in the first of the
academic years or terms and if there is a contract or a reasonable assurance
that the individual will perform service in an instructional, research, or
principal administrative capacity for an institution of higher education or an
educational institution other than an institution of higher education in the
second of the academic years or terms, whether or not the terms are successive.
(2) With respect to service performed in other than an
instructional, research, or principal administrative capacity for an
institution of higher education as defined in section 53(2) or for an
educational institution other than an institution of higher education as
defined in section 53(3), benefits are not payable based on those services for
any week of unemployment beginning after December 31, 1977 that commences
during the period between 2 successive academic years or terms to any
individual if that individual performs the service in the first of the academic
years or terms and if there is a reasonable assurance that the individual will
perform the service for an institution of higher education or an educational
institution other than an institution of higher education in the second of the
academic years or terms.
(3) With respect to any service described in subdivision (1)
or (2), benefits are not payable to an individual based upon service for any
week of unemployment that commences during an established
and customary vacation period or holiday recess if the individual performs the
service in the period immediately before the vacation period or holiday recess
and there is a contract or reasonable assurance that the individual will
perform the service in the period immediately following the vacation period or
holiday recess.
(4) If benefits are denied to an individual for any week
solely as a result of subdivision (2) and the individual was not offered an
opportunity to perform in the second academic year or term the service for
which reasonable assurance had been given, the individual is entitled to a
retroactive payment of benefits for each week for which the individual had
previously filed a timely claim for benefits. An individual entitled to
benefits under this subdivision may apply for those benefits by mail in
accordance with R 421.210 of the Michigan Administrative Code as promulgated by
the commission.
(5) Benefits based upon services in other than an
instructional, research, or principal administrative capacity for an
institution of higher education are not denied for any week of unemployment
commencing during the period between 2 successive academic years or terms
solely because the individual had performed the service in the first of the
academic years or terms and there is reasonable assurance that the individual
will perform the service for an institution of higher education or an educational
institution other than an institution of higher education in the second of the
academic years or terms, unless a denial is required as a condition for full
tax credit against the tax imposed by the federal unemployment tax act, 26 USC
3301 to 3311.
(6) For benefit years established before October 1, 2000, and
notwithstanding subdivisions (1), (2), and (3), the
denial of benefits does not prevent an individual from completing requalifying
weeks in accordance with section 29(3) nor does the denial prevent an
individual from receiving benefits based on service with an employer other than
an educational institution for any week of unemployment occurring between
academic years or terms, whether or not successive, or during an established
and customary vacation period or holiday recess, even though the employer is
not the most recent chargeable employer in the individual's base period.
However, in that case section 20(b) applies to the sequence of benefit
charging, except for the employment with the educational institution, and
section 50(b) applies to the calculation of credit weeks. When a denial of
benefits under subdivision (1) no longer applies, benefits are charged in
accordance with the normal sequence of charging as provided in section 20(b).
(7) For benefit years beginning on or after October 1, 2000,
and notwithstanding subdivisions (1), (2), and (3), the denial of benefits does
not prevent an individual from completing requalifying weeks in accordance with
section 29(3) and does not prevent an individual from receiving benefits based
on service with another base period employer other than an educational
institution for any week of unemployment occurring between academic years or
terms, whether or not successive, or during an established and customary
vacation period or holiday recess. However, if benefits are paid based on
service with 1 or more base period employers other than an educational
institution, the individual's weekly benefit rate is calculated in accordance
with subsection (b)(1) but during the denial period the individual's weekly
benefit payment is reduced by the portion of the payment attributable to base
period wages paid by an educational institution and
the account or experience account of the educational institution is not charged
for benefits payable to the individual. When a denial of benefits under
subdivision (1) is no longer applicable, benefits are paid and charged on the
basis of base period wages with each of the base period employers including the
educational institution.
(8) For the purposes of this subsection, "academic
year" means that period, as defined by the educational institution, when
classes are in session for that length of time required for students to receive
sufficient instruction or earn sufficient credit to complete academic
requirements for a particular grade level or to complete instruction in a
noncredit course.
(9) In accordance with subdivisions (1), (2), and (3),
benefits for any week of unemployment are denied to an individual who performed
services described in subdivision (1), (2), or (3) in an educational
institution while in the employ of an educational service agency. For the
purpose of this subdivision, "educational service agency" means a
governmental agency or governmental entity that is established and operated
exclusively for the purpose of providing the services to 1 or more educational
institutions.
(j) Benefits are not payable to an individual on the basis of
any base period services, substantially all of which consist of participating
in sports or athletic events or training or preparing to participate, for a
week that commences during the period between 2 successive sport seasons or
similar periods if the individual performed the services in the first of the
seasons or similar periods and there is a reasonable assurance that the
individual will perform the services in the later of the seasons or similar
periods.
(k)(1) Benefits are not payable on the basis of
services performed by an alien unless the alien is an individual who was
lawfully admitted for permanent residence at the time the services were
performed, was lawfully present for the purpose of performing the services, or
was permanently residing in the United States under color of law at the time
the services were performed, including an alien who was lawfully present in the
United States under section 212(d)(5) of the immigration and nationality act, 8
USC 1182.
(2) Any data or information required of individuals applying
for benefits to determine whether benefits are payable because of their alien
status are uniformly required from all applicants for benefits.
(3) If an individual's application for benefits would
otherwise be approved, a determination that benefits to that individual are not
payable because of the individual's alien status must not be made except upon a
preponderance of the evidence.
(m)(1) An individual filing a new claim for unemployment
compensation under this act, at the time of filing the claim, shall disclose
whether the individual owes child support obligations as defined in this
subsection. If an individual discloses that he or she owes child support
obligations and is determined to be eligible for unemployment compensation, the
unemployment agency shall notify the state or local child support enforcement
agency enforcing the obligation that the individual has been determined to be
eligible for unemployment compensation.
(2) Notwithstanding section 30, the unemployment agency shall
deduct and withhold from any unemployment compensation payable to an individual
who owes child support obligations by using whichever of
the following methods results in the greatest amount:
(a) The amount, if any, specified by the individual to be
deducted and withheld under this subdivision.
(b) The amount, if any, determined pursuant to an agreement
submitted to the commission under 42 USC 654(19)(B)(i), by the state or local
child support enforcement agency.
(c) Any amount otherwise required to be deducted and withheld
from unemployment compensation by legal process, as that term is defined in 42
USC 659(i)(5), properly served upon the commission.
(3) The amount of unemployment compensation subject to
deduction under subdivision (2) is that portion that remains payable to the
individual after application of the recoupment provisions of section 62(a) and
the reduction provisions of subsections (c) and (f).
(4) The unemployment agency shall pay any amount deducted and
withheld under subdivision (2) to the appropriate state or local child support
enforcement agency.
(5) Any amount deducted and withheld under subdivision (2) is
treated for all purposes as if it were paid to the individual as unemployment
compensation and paid by the individual to the state or local child support
enforcement agency in satisfaction of the individual's child support
obligations.
(6) Provisions concerning deductions under this subsection
apply only if the state or local child support enforcement agency agrees in
writing to reimburse and does reimburse the unemployment agency for the
administrative costs incurred by the unemployment agency under this subsection
that are attributable to child support obligations being enforced by the state
or local child support enforcement agency. The administrative costs incurred
are determined by the unemployment agency. The
unemployment agency, in its discretion, may require payment of administrative
costs in advance.
(7) As used in this subsection:
(a) "Unemployment compensation", for purposes of
subdivisions (1) to (5), means any compensation payable under this act,
including amounts payable by the unemployment agency pursuant to an agreement
under any federal law providing for compensation, assistance, or allowances
with respect to unemployment.
(b) "Child support obligations" includes only
obligations that are being enforced pursuant to a plan described in 42 USC 654
that has been approved by the Secretary of Health and Human Services under 42
USC 651 to 669b.
(c) "State or local child support enforcement
agency" means any agency of this state or a political subdivision of this
state operating pursuant to a plan described in subparagraph (b).
(n) Subsection (i)(2) applies to services performed by school
bus drivers employed by a private contributing employer holding a contractual
relationship with an educational institution, but only if at least 75% of the
individual's base period wages with that employer are attributable to services
performed as a school bus driver. Subsection (i)(1) and (2) but not subsection
(i)(3) applies to other services described in those subdivisions that are
performed by any employees under an employer's contract with an educational
institution or an educational service agency.
(o)(1) For weeks of unemployment beginning after July 1,
1996, unemployment benefits based on services by a seasonal worker performed in
seasonal employment are payable only for weeks of unemployment that occur
during the normal seasonal work period. Benefits
are not payable based on services performed in seasonal employment for any week
of unemployment beginning after March 28, 1996 that begins during the period
between 2 successive normal seasonal work periods to any individual if that
individual performs the service in the first of the normal seasonal work
periods and if there is a reasonable assurance that the individual will perform
the service for a seasonal employer in the second of the normal seasonal work
periods. If benefits are denied to an individual for any week solely as a
result of this subsection and the individual is not offered an opportunity to
perform in the second normal seasonal work period for which reasonable
assurance of employment had been given, the individual is entitled to a
retroactive payment of benefits under this subsection for each week that the
individual previously filed a timely claim for benefits. An individual may apply
for any retroactive benefits under this subsection in accordance with R 421.210
of the Michigan Administrative Code.
(2) Not less than 20 days before the estimated beginning date
of a normal seasonal work period, an employer may apply to the commission in
writing for designation as a seasonal employer. At the time of application, the
employer shall conspicuously display a copy of the application on the
employer's premises. Within 90 days after receipt of the application, the
commission shall determine if the employer is a seasonal employer. A
determination or redetermination of the commission concerning the status of an
employer as a seasonal employer, or a decision of an administrative law judge,
the Michigan compensation appellate commission, or the courts of this state
concerning the status of an employer as a seasonal employer, which has become
final, together with the record thereof, may be introduced in any proceeding
involving a claim for benefits, and the facts found
and decision issued in the determination, redetermination, or decision is
conclusive unless substantial evidence to the contrary is introduced by or on
behalf of the claimant.
(3) If the employer is determined to be a seasonal employer,
the employer shall conspicuously display on its premises a notice of the
determination and the beginning and ending dates of the employer's normal
seasonal work periods. The commission shall furnish the notice. The notice must
additionally specify that an employee must timely apply for unemployment benefits
at the end of a first seasonal work period to preserve his or her right to
receive retroactive unemployment benefits if he or she is not reemployed by the
seasonal employer in the second of the normal seasonal work periods.
(4) The commission may issue a determination terminating an
employer's status as a seasonal employer on the commission's own motion for
good cause, or upon the written request of the employer. A termination
determination under this subdivision terminates an employer's status as a seasonal
employer, and becomes effective on the beginning date of the normal seasonal
work period that would have immediately followed the date the commission issues
the determination. A determination under this subdivision is subject to review
in the same manner and to the same extent as any other determination under this
act.
(5) An employer whose status as a seasonal employer is
terminated under subdivision (4) may not reapply for a seasonal employer status
determination until after a regularly recurring normal seasonal work period has
begun and ended.
(6) If a seasonal employer informs an employee who received assurance of being rehired that, despite the
assurance, the employee will not be rehired at the beginning of the employer's
next normal seasonal work period, this subsection does not prevent the employee
from receiving unemployment benefits in the same manner and to the same extent
he or she would receive benefits under this act from an employer who has not
been determined to be a seasonal employer.
(7) A successor of a seasonal employer is considered to be a
seasonal employer unless the successor provides the commission, within 120 days
after the transfer, with a written request for termination of its status as a
seasonal employer in accordance with subdivision (4).
(8) At the time an employee is hired by a seasonal employer,
the employer shall notify the employee in writing if the employee will be a
seasonal worker. The employer shall provide the worker with written notice of
any subsequent change in the employee's status as a seasonal worker. If an
employee of a seasonal employer is denied benefits because that employee is a
seasonal worker, the employee may contest that designation in accordance with
section 32a.
(9) As used in this subsection:
(a) "Construction industry" means the work activity
designated in sector group 23 - construction of the North American
classification system - United States Office of Management and Budget, 1997
edition.
(b) "Normal seasonal work period" means that period
or those periods of time determined under rules promulgated by the unemployment
agency during which an individual is employed in seasonal employment.
(c) "Seasonal employment" means the
employment of 1 or more individuals primarily hired to perform services during
regularly recurring periods of 26 weeks or less in any 52-week period other
than services in the construction industry.
(d) "Seasonal employer" means an employer, other
than an employer in the construction industry, who applies to the unemployment agency
for designation as a seasonal employer and who the unemployment agency
determines is an employer whose operations and business require employees
engaged in seasonal employment. A seasonal employer designation under this act
need not correspond to a category assigned under the North American
classification system — United States Office of Management and Budget.
(e) "Seasonal worker" means a worker who has been
paid wages by a seasonal employer for work performed only during the normal
seasonal work period.
(10) This subsection does not apply if the United States
Department of Labor finds it to be contrary to the federal unemployment tax
act, 26 USC 3301 to 3311, or the social security act, chapter 531, 49 Stat 620,
and if conformity with the federal law is required as a condition for full tax
credit against the tax imposed under the federal unemployment tax act, 26 USC
3301 to 3311, or as a condition for receipt by the commission of federal
administrative grant funds under the social security act, chapter 531, 49 Stat
620.
(p) Benefits are not payable to an individual based upon his
or her services as a school crossing guard for any week of unemployment that
begins between 2 successive academic years or terms, if that individual
performs the services of a school crossing guard in the first of the academic
years or terms and has a reasonable assurance that
he or she will perform those services in the second of the academic years or
terms.
Sec. 28. (1) An unemployed individual is eligible to
receive benefits with respect to any week only if the unemployment agency finds
all of the following:
(a) The individual has
registered for work and has continued to report pursuant to unemployment agency
rules and is actively engaged in seeking work. The requirements that the
individual must report, must register for work, must be available to perform
suitable full-time work, and must seek work may be waived by the unemployment
agency if the individual is laid off and the employer who laid the individual
off notifies the unemployment agency in writing or by computerized data
exchange that the layoff is temporary and that work is expected to be available
for the individual within a declared number of days, not to exceed 45 calendar
days following the last day the individual worked. This waiver is not effective
unless the notification from the employer is received by the unemployment
agency before the individual has completed his or her first compensable week
following layoff. If the individual is not recalled within the specified
period, the waiver ceases to be operative with respect to that layoff. Except
for a period of disqualification, the requirement that the individual shall
seek work may be waived by the unemployment agency if it finds that suitable
work is unavailable both in the locality where the individual resides and in
those localities in which the individual has earned wages during or after the
base period. This waiver does not apply to a claimant enrolled and attending
classes as a full-time student. An individual is considered to have satisfied
the requirement of personal reporting at an employment office,
as applied to a week in a period during which the requirements of registration
and seeking work have been waived by the unemployment agency pursuant to this subdivision,
if the individual has satisfied the personal reporting requirement with respect
to a preceding week in that period and the individual has reported with respect
to the week by mail pursuant to the rules promulgated by the unemployment
agency.
(b) The individual has
made a claim for benefits pursuant to section 32 and has provided the
unemployment agency with all of the following:
(i) His or her Social Security number.
(ii) His or her driver
license number, and the state that issued the license, or state identification
card number, and the state that issued the identification card, or copies of
the acceptable documents as provided in the Form I-9.
(iii) If the
unemployment agency has requested them, copies of the acceptable documents as
provided in the Form I-9. As used in this subdivision, "Form I-9"
means the employment verification form that fulfills the employment
verification obligations under 8 CFR 274a.2.
(c) The individual is able and available to appear at a
location of the unemployment agency's choosing for evaluation of eligibility
for benefits, if required, and to perform suitable full-time work of a
character that the individual is qualified to perform by past experience or
training, which is of a character generally similar to work for which the
individual has previously received wages, and for which the individual is
available, full time, either at a locality at which the individual earned wages
for insured work during his or her base period or at a locality where it is found by the unemployment agency that such work
is available. An individual is considered unavailable for work under any of the
following circumstances:
(i) The individual
fails during a benefit year to notify or update a chargeable employer with
telephone, electronic mail, or other information sufficient to allow the
employer to contact the individual about available work.
(ii) The individual
fails, without good cause, to respond to the unemployment agency within 14
calendar days of the later of the mailing of a notice to the address of record
requiring the individual to contact the unemployment agency or of the leaving
of a telephone message requesting a return call and providing a return name and
telephone number on an automated answering device or with an individual answering
the telephone number of record.
(iii) Unless the
claimant shows good cause for failure to respond, mail sent to the individual's
address of record is returned as undeliverable and the telephone number of
record has been disconnected or changed or is otherwise no longer associated
with the individual.
(d) In the event of the death of an individual's immediate
family member, the eligibility requirements of availability and reporting are
waived for the day of the death and for 4 consecutive calendar days thereafter.
As used in this subdivision, "immediate family member" means a
spouse, child, stepchild, adopted child, grandchild, parent, grandparent,
brother, or sister of the individual or his or her spouse. It shall also
include the spouse of any of the persons specified in the previous sentence.
(e) The individual participates in reemployment services,
such as job search assistance services, if the individual has been determined or redetermined by the unemployment agency
to be likely to exhaust regular benefits and need reemployment services
pursuant to a profiling system established by the unemployment agency.
(2) The unemployment agency may authorize an individual with
an unexpired benefit year to pursue vocational training or retraining only if
the unemployment agency finds all of the following:
(a) Reasonable opportunities for employment in occupations
for which the individual is fitted by training and experience do not exist in
the locality in which the individual is claiming benefits.
(b) The vocational training course relates to an occupation
or skill for which there are, or are expected to be in the immediate future,
reasonable employment opportunities.
(c) The training course has been approved by a local advisory
council on which both management and labor are represented, or if there is no
local advisory council, by the unemployment agency.
(d) The individual has the required qualifications and
aptitudes to complete the course successfully.
(e) The vocational training course has been approved by the
state board of education and is maintained by a public or private school or by
the unemployment agency.
(3) Notwithstanding any other provision of this act, an
otherwise eligible individual is not ineligible for benefits because he or she
is participating in training with the approval of the unemployment agency. For
each week that the unemployment agency finds that an individual who is claiming
benefits under this act and who is participating in training with the approval
of the unemployment agency, is satisfactorily pursuing an approved course of
vocational training, it shall waive the requirements that he or she be available for work and be seeking work as
prescribed in subsection (1)(a) and (c), and it shall find good cause for his
or her failure to apply for suitable work, report to a former employer for an
interview concerning suitable work, or accept suitable work as required in
section 29(1)(c), (d), and (e).
(4) The waiver of the requirement that a claimant seek work
under subsection (1)(a) is not applicable to weeks of unemployment for which
the claimant is claiming extended benefits and to which section 64(7)(a)(ii) applies, unless
the individual is participating in training approved by the unemployment
agency.
(4) (5) Notwithstanding any other provisions of this
act, an otherwise eligible individual must not be denied benefits solely
because the individual is in training approved under section 236(a)(1) of the
trade act of 1974, 19 USC 2296, nor shall the individual be denied benefits by
reason of leaving work to enter such training if the work left is not suitable
employment. Furthermore, an otherwise eligible individual must not be denied
benefits because of the application to any such week in training of provisions
of this act, or any applicable federal unemployment compensation law, relating
to availability for work, active search for work, or refusal to accept work.
For purposes of this subsection, "suitable employment" means, with
respect to an individual, work of a substantially equal or higher skill level
than the individual's past adversely affected employment, as defined for
purposes of the trade act of 1974, 19 USC 2101 to 2497b, and wages for that
work at not less than 80% of the individual's average weekly wage as determined
for the purposes of the trade act of 1974, 19 USC 2101 to 2497b.
(5) (6) Except as otherwise provided in subsection (7), (6), for purposes of this section, for benefit years
beginning on or after January 1, 2013, to be actively engaged in seeking work,
an individual must conduct a systematic and sustained search for work in each
week the individual is claiming benefits, using any of the following methods to
report the details of the work search:
(a) Reporting at monthly intervals on the unemployment
agency's online reporting system the name of each employer and physical or
online location of each employer where work was sought and the date and method
by which work was sought with each employer.
(b) Filing a written report with the unemployment agency by
mail or facsimile transmission not later than the end of the fourth calendar
week after the end of the week in which the individual engaged in the work
search, on a form approved by the unemployment agency, indicating the name of
each employer and physical or online location of each employer where work was
sought and the date and method by which work was sought with each employer.
(c) Appearing at least monthly in person at a Michigan works
agency office to report the name and physical or online location of each
employer where the individual sought work during the previous month and the
date and method by which work was sought with each employer.
(6) (7) For purposes of this section, beginning on the effective date of the
amendatory act that added this subsection, April 2, 2020, to be actively engaged in
seeking work, an individual must conduct a systematic and sustained search for
work in each week the individual is claiming benefits and must report to the
unemployment agency the details of the work search at least once every 2 weeks
or, if the unemployment agency prescribes a shorter
reporting period, the reporting period prescribed by the unemployment agency.
An individual may conduct a systematic and sustained search for work by doing
any of the following:
(a) Using resources available at a Michigan works agency
office to do any of the following:
(i) Participate in
reemployment services and eligibility assessment activities.
(ii) Identify the
skills the individual possesses that are consistent with target or demand
occupations in the local workforce development area.
(iii) Obtain job
postings and seek employment for suitable positions needed by local employers.
(b) Attending job search seminars or other employment
workshops that offer instruction in improving an individual's skills for
finding and obtaining employment.
(c) Creating a user profile on a professional networking site
or using an online career tool. Creating duplicate user profiles or
resubmitting or reuploading the same resume to the same professional networking
site does not satisfy the requirements of this subdivision.
(d) Applying for an available position with, submitting a
resume to, or interviewing with employers. Applying for the same position
within a 4-week period or contacting an employer to determine whether a
position is available does not satisfy the requirements of this subdivision,
unless the individual uses his or her union hiring hall to conduct a search for
work.
(e) Registering for work with a private employment agency or,
if it is available to the individual in his or her occupation or profession,
the placement facility of a school, college, or university.
(f) Taking an examination that is required for a position in
the state civil service.
(7) (8) The work search conducted by the claimant is
subject to audit by the unemployment agency.
(8) (9) The unemployment agency shall request but shall
not require an individual who is applying for benefits to submit his or her
base period employer's unemployment agency account number and federal employer
identification number.
(9) (10) The unemployment agency shall use all of the
documentation and information provided by an individual applying for benefits
to verify the identity of the individual before making an initial payment on
the individual's claim.
Sec. 28c. (1) An employer that meets all of the
following requirements may apply to the unemployment agency for approval of a
shared-work plan:
(a) The employer has
filed all quarterly reports and other reports required under this act and has
paid all obligation assessments, contributions, reimbursements in lieu of
contributions, interest, and penalties due through the date of the employer's
application.
(b) If the employer is a
contributing employer, the employer's reserve in the employer's experience
account as of the most recent computation date preceding the date of the
employer's application is a positive number.
(c) The employer has paid
wages for the 12 consecutive calendar quarters preceding the date of the
employer's application.
(2) An application under
this section shall be made in the manner prescribed by the unemployment agency
and contain all of the following:
(a) The employer's
assurance that it will provide reports to the unemployment agency relating to
the operation of its shared-work plan at the times and in the manner prescribed
by the unemployment agency and containing all information required by the
unemployment agency.
(b) The employer's
assurance that it will not hire new employees in, or transfer employees to, the
affected unit during the effective period of the shared-work plan.
(c) The employer's
assurance that it will not lay off participating employees during the effective
period of the shared-work plan, or reduce participating employees' hours of
work by more than the reduction percentage during the effective period of the
shared-work plan, except in cases of holidays, designated vacation periods,
equipment maintenance, or similar circumstances.
(d) The employer's
certification that it has obtained the approval of any applicable collective
bargaining unit representative and has notified all affected employees who are
not in a collective bargaining unit of the proposed shared-work plan.
(e) A list of the week or
weeks within the requested effective period of the plan during which
participating employees are anticipated to work fewer hours than the number of
hours determined under section 28d(1)(e) due to circumstances listed in
subdivision (c).
(f) The employer's
certification that the implementation of a shared-work plan is in lieu of
layoffs that would affect at least 15% or, until December 31, 2020, 10%, of the employees
in the affected unit and would result in an equivalent reduction in work hours.
(g) The employer's assurance that it will abide by all terms and conditions
of sections 28b to 28m.
(h) The employer's
certification that, to the best of his or her knowledge, participation in the
shared-work plan is consistent with the employer's obligations under federal
law and the law of this state.
(i) Any other relevant
information required by the unemployment agency.
(3) An employer may apply
to the unemployment agency for approval of more than 1 shared-work plan.
(4)
Notwithstanding any other provision of this act, until December 31, 2020, the
unemployment agency may approve a shared-work plan submitted by an employer
even if the employer does not meet the requirements of subsection (1) or
(2)(b).
Sec. 28d. (1) The unemployment agency shall approve a
shared-work plan only if the plan meets all of the following requirements:
(a) The shared-work plan
applies to 1 affected unit.
(b) All employees in the
affected unit are participating employees, except that, the following
employees shall not be participating employees:
(i) An employee who
has been employed in the affected unit for less than 3 months before the date
the employer applies for approval of the shared-work plan.
(ii) An until December 31, 2020, an employee whose
hours of work per week determined under subdivision (e) are 40 or more hours must not be a participating employee.
(c) There are no fewer than 2 participating employees,
determined without regard to corporate officers.
(d) The participating employees are identified by name and social
security Social
Security number.
(e) The number of hours a participating employee will work
each week during the effective period of the shared-work plan is the number of
the employee's normal weekly hours of work reduced by the reduction percentage.
(f) The plan includes an estimate of the number of employees
who would have been laid off if the plan were not implemented.
(g) The plan indicates the manner in which the employer will
give advance notice, if feasible, to an employee whose hours of work per week
under the plan will be reduced.
(h) As a result of a decrease in the number of hours worked
by each participating employee, there is a corresponding reduction in wages.
(i) The shared-work plan does not affect the fringe benefits
of any participating employee.
(j) The specified effective period of the shared-work plan is
52 consecutive weeks or less and the benefits payable under the shared-work
plan will not exceed 20 times the weekly benefit amount for each participating
employee, calculated without regard to any existing benefit year.
(k) The reduction percentage satisfies the requirements of
subsection (2).
(2) The reduction percentage under an approved shared-work
plan shall meet all of the following requirements:
(a) The reduction percentage shall be no less than 15% and no
more than 45% or, until
December 31, 2020, no less than 10% and no more than 60%.
(b) The reduction percentage shall be the same for all
participating employees.
(c) The reduction percentage shall not change
during the period of the shared-work plan unless the plan is modified in
accordance with section 28i.
Sec. 29. (1) Except as provided in subsection (5), an
individual is disqualified from receiving benefits if he or she:
(a) Left work voluntarily without good cause
attributable to the employer or employing unit. An individual who left work is
presumed to have left work voluntarily without good cause attributable to the
employer or employing unit. An individual who is absent from work for a period
of 3 consecutive work days or more without contacting the employer in a manner
acceptable to the employer and of which the individual was informed at the time
of hire shall be considered to have voluntarily left work without good cause
attributable to the employer. An individual who becomes unemployed as a result
of negligently losing a requirement for the job of which he or she was informed
at the time of hire shall be considered to have voluntarily left work without
good cause attributable to the employer. An individual claiming benefits under
this act has the burden of proof to establish that he or she left work
involuntarily or for good cause that was attributable to the employer or
employing unit. An individual claiming to have left work involuntarily for
medical reasons must have done all of the following before the leaving: secured
a statement from a medical professional that continuing in the individual's
current job would be harmful to the individual's physical or mental health, ; unsuccessfully attempted to secure alternative
work with the employer, ; and unsuccessfully
attempted to be placed on a leave of absence with the employer to last until
the individual's mental or physical health would no longer be harmed by the
current job. Notwithstanding any other provision of this act, with respect to
claims for weeks beginning before January 1, 2021, an individual is considered
to have left work involuntarily for medical reasons if he or she leaves work to
self-isolate or self-quarantine in response to elevated risk from COVID-19
because he or she is immunocompromised, displayed a commonly recognized
principal symptom of COVID-19 that was not otherwise associated with a known
medical or physical condition of the individual, had contact in the last 14
days with an individual with a confirmed diagnosis of COVID-19, needed to care
for an individual with a confirmed diagnosis of COVID-19, or had a family care
responsibility that was the result of a government directive regarding
COVID-19. Notwithstanding any other provision of this act, with respect to
claims for weeks beginning before January 1, 2021, the unemployment agency may
consider an individual laid off if the individual became unemployed to
self-isolate or self-quarantine in response to elevated risk from COVID-19
because he or she is immunocompromised, displayed a commonly recognized
principal symptom of COVID-19 that was not otherwise associated with a known
medical or physical condition of the individual, had contact in the last 14
days with an individual with a confirmed diagnosis of COVID-19, needed to care
for an individual with a confirmed diagnosis of COVID-19, or had a family care
responsibility that was the result of a government directive regarding
COVID-19. However, if any of the following conditions is are met, the leaving does not disqualify
the individual:
(i) The individual
has an established benefit year in effect and during that benefit year leaves
unsuitable work within 60 days after the beginning of that work. Benefits paid
after a leaving under this subparagraph shall not
be charged to the experience account of the employer the individual left, but
shall be charged instead to the nonchargeable benefits account.
(ii) The individual is the spouse of a full-time member of the
United States armed forces, Armed Forces, and the
leaving is due to the military duty reassignment of that member of the United
States armed forces Armed Forces to a
different geographic location. Benefits paid after a leaving under this
subparagraph shall not be charged to the experience account of the employer the
individual left, but shall be charged instead to the nonchargeable benefits
account.
(iii) The individual is concurrently working part-time for an
employer or employing unit and for another employer or employing unit and
voluntarily leaves the part-time work while continuing work with the other
employer. The portion of the benefits paid in accordance with this subparagraph
that would otherwise be charged to the experience account of the part-time
employer that the individual left shall not be charged to the account of that
employer , but shall be
charged instead to the nonchargeable benefits account.
(b) Was suspended
or discharged for misconduct connected with the individual's work or for
intoxication while at work.
(c) Failed without
good cause to apply diligently for available suitable work after receiving
notice from the unemployment agency of the availability of that work or failed
to apply for work with employers that could reasonably be expected to have
suitable work available.
(d) Failed without
good cause while unemployed to report to the individual's former employer or
employing unit within a reasonable time after that
employer or employing unit provided notice of the availability of an interview
concerning available suitable work with the former employer or employing unit.
(e) Failed without
good cause to accept suitable work offered to the individual or to return to
the individual's customary self-employment, if any, when directed by the
employment office or the unemployment agency. An employer that receives a
monetary determination under section 32 may notify the unemployment agency
regarding the availability of suitable work with the employer on the monetary
determination or other form provided by the unemployment agency. Upon receipt
of the notice of the availability of suitable work, the unemployment agency
shall notify the claimant of the availability of suitable work. Until 1 year after the effective
date of the amendatory act that added this sentence, an individual is
considered to have refused an offer of suitable work if the prospective
employer requires as a condition of the offer a drug test that is subject to
the same terms and conditions as a drug test administered under subdivision
(m), and the employer withdraws the conditional offer after either of the
following:
(i) The individual tests positive for a
controlled substance and lacks a valid, documented prescription, as defined in
section 17708 of the public health code, 1978 PA 368, MCL 333.17708, for the
controlled substance issued to the individual by his or her treating physician.
(ii) The individual refuses without good
cause to submit to the drug test.
(f) Lost his or her
job due to absence from work resulting from a violation of law for which the
individual was convicted and sentenced to jail or prison. This subdivision does
not apply if conviction of an individual results in
a sentence to county jail under conditions of day parole as provided in 1962 PA
60, MCL 801.251 to 801.258, or if the conviction was for a traffic violation
that resulted in an absence of less than 10 consecutive work days from the
individual's place of employment.
(g) Is discharged,
whether or not the discharge is subsequently reduced to a disciplinary layoff
or suspension, for participation in either of the following:
(i) A strike or other concerted action in violation of an
applicable collective bargaining agreement that results in curtailment of work
or restriction of or interference with production.
(ii) A wildcat strike or other concerted action not authorized
by the individual's recognized bargaining representative.
(h) Was discharged
for an act of assault and battery connected with the individual's work.
(i) Was discharged
for theft connected with the individual's work.
(j) Was discharged
for willful destruction of property connected with the individual's work.
(k) Committed a
theft after receiving notice of a layoff or discharge, but before the effective
date of the layoff or discharge, resulting in loss or damage to the employer
who would otherwise be chargeable for the benefits, regardless of whether the
individual qualified for the benefits before the theft.
(l) Was employed by a temporary help firm, which as used in
this section means an employer whose primary business is to provide a client
with the temporary services of 1 or more individuals under contract with the
employer, to perform services for a client of that
firm if each of the following conditions is met:
(i) The temporary help firm provided the employee with a
written notice before the employee began performing services for the client
stating in substance both of the following:
(A) That within 7
days after completing services for a client of the temporary help firm, the
employee is under a duty to notify the temporary help firm of the completion of
those services.
(B) That a failure
to provide the temporary help firm with notice of the employee's completion of
services pursuant to sub-subparagraph (A) constitutes a voluntary quit that
will affect the employee's eligibility for unemployment compensation should the
employee seek unemployment compensation following completion of those services.
(ii) The employee did not provide the temporary help firm with
notice that the employee had completed his or her services for the client
within 7 days after completion of his or her services for the client.
(m) Was discharged
for illegally ingesting, injecting, inhaling, or possessing a controlled
substance on the premises of the employer; refusing to submit to a drug test
that was required to be administered in a nondiscriminatory manner; or testing
positive on a drug test, if the test was administered in a nondiscriminatory
manner. If the worker disputes the result of the testing, and if a generally
accepted confirmatory test has not been administered on the same sample
previously tested, then a generally accepted confirmatory test shall be
administered on that sample. If the confirmatory test also indicates a positive
result for the presence of a controlled substance, the worker who is discharged
as a result of the test result will be disqualified under this subdivision. A report by a drug testing facility
showing a positive result for the presence of a controlled substance is
conclusive unless there is substantial evidence to the contrary. As used in
this subdivision and subdivision (e):
(i) "Controlled substance" means that term as defined
in section 7104 of the public health code, 1978 PA 368, MCL 333.7104.
(ii) "Drug test" means a test designed to detect the
illegal use of a controlled substance.
(iii) "Nondiscriminatory manner" means administered
impartially and objectively in accordance with a collective bargaining
agreement, rule, policy, a verbal or written notice, or a labor-management
contract.
(n) Theft from the
employer that resulted in the employee's conviction, within 2 years of the date
of the discharge, of theft or a lesser included offense.
(2) A
disqualification under subsection (1) begins the week in which the act or
discharge that caused the disqualification occurs and continues until the
disqualified individual requalifies under subsection (3).
(3) After the week
in which the disqualifying act or discharge described in subsection (1) occurs,
an individual who seeks to requalify for benefits is subject to all of the
following:
(a) For benefit
years established before October 1, 2000, the individual shall complete 6
requalifying weeks if he or she was disqualified under subsection (1)(c), (d),
(e), (f), (g), or (l), or 13
requalifying weeks if he or she was disqualified under subsection (1)(h), (i),
(j), (k), or (m). A requalifying week required under this subdivision is each
week in which the individual does any of the following:
(i) Earns or receives
remuneration in an amount at least equal to an amount needed to earn a credit
week, as that term is defined in section 50.
(ii) Otherwise meets all of the requirements of this act to
receive a benefit payment if the individual were not disqualified under
subsection (1).
(iii) Receives a benefit payment based on credit weeks subsequent
to the disqualifying act or discharge.
(b) For benefit
years established before October 1, 2000, if the individual is disqualified
under subsection (1)(a) or (b), he or she shall requalify, after the week in
which the disqualifying discharge occurred by earning in employment for an
employer liable under this act or the unemployment compensation act of another
state an amount equal to, or in excess of, 7 times the individual's potential
weekly benefit rate, calculated on the basis of employment with the employer
involved in the disqualification, or by earning in employment for an employer
liable under this act or the unemployment compensation act of another state an
amount equal to, or in excess of, 40 times the state minimum hourly wage times
7, whichever is the lesser amount.
(c) For benefit
years established before October 1, 2000, a benefit payable to an individual
disqualified under subsection (1)(a) or (b) shall be charged to the
nonchargeable benefits account, and not to the account of the employer with
whom the individual was involved in the disqualification.
(d) For benefit
years beginning on or after October 1, 2000, after the week in which the
disqualifying act or discharge occurred, an individual shall complete 13
requalifying weeks if he or she was disqualified under subsection (1)(c), (d),
(e), (f), (g), or (l), or 26 requalifying weeks if he or she was disqualified
under subsection (1)(h), (i), (j), (k), (m), or (n). A requalifying week
required under this subdivision is each week in which the individual does any
of the following:
(i) Earns or receives remuneration in an amount equal to at
least 1/13 of the minimum amount needed in a calendar quarter of the base
period for an individual to qualify for benefits, rounded down to the nearest
whole dollar.
(ii) Otherwise meets all of the requirements of this act to
receive a benefit payment if the individual was not disqualified under subsection
(1).
(e) For benefit
years beginning on or after October 1, 2000 and beginning before April 26,
2002, if the individual is disqualified under subsection (1)(a) or (b), he or
she shall requalify, after the week in which the disqualifying act or discharge
occurred by earning in employment for an employer liable under this act or the
unemployment compensation law of another state at least the lesser of the
following:
(i) Seven times the individual's weekly benefit rate.
(ii) Forty times the state minimum hourly wage times 7.
(f) For benefit
years beginning on or after April 26, 2002, if the individual is disqualified
under subsection (1)(a), he or she shall requalify, after the week in which the
disqualifying act or discharge occurred by earning in employment for an
employer liable under this act or the unemployment compensation law of another
state at least 12 times the individual's weekly benefit rate.
(g) For benefit
years beginning on or after April 26, 2002, if the individual is disqualified
under subsection (1)(b), he or she shall requalify, after the week in which the
disqualifying act or discharge occurred by earning
in employment for an employer liable under this act or the unemployment
compensation law of another state at least 17 times the individual's weekly
benefit rate.
(h) A benefit
payable to the individual disqualified or separated under disqualifying
circumstances under subsection (1)(a) or (b) , shall be charged to the nonchargeable
benefits account, and not to the account of the employer with whom the
individual was involved in the separation. Benefits payable to an individual
determined by the unemployment agency to be separated under disqualifying
circumstances shall not be charged to the account of the employer involved in
the disqualification for any period after the employer notifies the
unemployment agency of the claimant's possible ineligibility or
disqualification. However, an individual filing a new claim for benefits who
reports the reason for separation from a base period employer as a voluntary
leaving shall be presumed to have voluntarily left without good cause
attributable to the employer and shall be disqualified unless the individual
provides substantial evidence to rebut the presumption. If a disqualifying act
or discharge occurs during the individual's benefit year, any benefits that may
become payable to the individual in a later benefit year based on employment
with the employer involved in the disqualification shall be charged to the
nonchargeable benefits account.
(4) The maximum
amount of benefits otherwise available under section 27(d) to an individual
disqualified under subsection (1) is subject to all of the following
conditions:
(a) For benefit
years established before October 1, 2000, if the individual is disqualified
under subsection (1)(c), (d), (e), (f), (g), or (l) and the maximum amount of benefits is based on wages and credit weeks earned from an employer before
an act or discharge involving that employer, the amount shall be reduced by an
amount equal to the individual's weekly benefit rate as to that employer
multiplied by the lesser of either of the following:
(i) The number of requalifying weeks required of the individual
under this section.
(ii) The number of weeks of benefit entitlement remaining with
that employer.
(b) If the
individual has insufficient or no potential benefit entitlement remaining with
the employer involved in the disqualification in the benefit year in existence
on the date of the disqualifying determination, a reduction of benefits
described in this subsection applies in a succeeding benefit year with respect
to any benefit entitlement based upon credit weeks earned with the employer
before the disqualifying act or discharge.
(c) For benefit
years established before October 1, 2000, an individual disqualified under
subsection (1)(h), (i), (j), (k), or (m) is not entitled to benefits based on
wages and credit weeks earned before the disqualifying act or discharge with
the employer involved in the disqualification.
(d) The benefit entitlement
of an individual disqualified under subsection (1)(a) or (b) is not subject to
reduction as a result of that disqualification.
(e) A denial or
reduction of benefits under this subsection does not apply to benefits based
upon multiemployer credit weeks.
(f) For benefit
years established on or after October 1, 2000, if the individual is
disqualified under subsection (1)(c), (d), (e), (f), (g), or (l), the maximum number of weeks otherwise applicable in
calculating benefits for the individual under section 27(d)
shall be reduced by the lesser of the following:
(i) The number of requalifying weeks required of the individual
under this section.
(ii) The number of weeks of benefit entitlement remaining on the
claim.
(g) For benefit
years beginning on or after October 1, 2000, the benefits of an individual
disqualified under subsection (1)(h), (i), (j), (k), (m), or (n) shall be
reduced by 13 weeks and any weekly benefit payments made to the claimant
thereafter shall be reduced by the portion of the payment attributable to base
period wages paid by the base period employer involved in a disqualification
under subsection (1)(h), (i), (j), (k), (m), or (n).
(5) If Subject to subsection (11), if an
individual leaves work to accept permanent full-time work with another employer
or to accept a referral to another employer from the individual's union hiring
hall and performs services for that employer, or if an individual leaves work
to accept a recall from a former employer, all of the following apply:
(a) Subsection (1)
does not apply.
(b) Wages earned
with the employer whom the individual last left, including wages previously
transferred under this subsection to the last employer, for the purpose of
computing and charging benefits, are wages earned from the employer with whom
the individual accepted work or recall, and benefits paid based upon those
wages shall be charged to that employer.
(c) When issuing a
determination covering the period of employment with a new or former employer
described in this subsection, the unemployment agency shall advise the
chargeable employer of the name and address of the
other employer, the period covered by the employment, and the extent of the
benefits that may be charged to the account of the chargeable employer.
(6) In determining
whether work is suitable for an individual, the unemployment agency shall
consider the degree of risk involved to the individual's health, safety, and
morals, the individual's physical fitness and prior training, the individual's
length of unemployment and prospects for securing local work in the
individual's customary occupation, and the distance of the available work from
the individual's residence. Additionally, the unemployment agency shall
consider the individual's experience and prior earnings, but an unemployed
individual who refuses an offer of work determined to be suitable under this
section shall be denied benefits if the pay rate for that work is at least 70%
of the gross pay rate he or she received immediately before becoming unemployed.
Beginning January 15, 2012, after an individual has received benefits for 50%
of the benefit weeks in the individual's benefit year, work shall not be
considered unsuitable because it is outside of the individual's training or
experience or unsuitable as to pay rate if the pay rate for that work meets or
exceeds the minimum wage; is at least the prevailing mean wage for similar work
in the locality for the most recent full calendar year for which data are
available as published by the department of technology, management, and budget
as "wages by job title", by standard metropolitan statistical area;
and is 120% or more of the individual's weekly benefit amount.
(7) Work is not
suitable and benefits shall not be denied under this act to an otherwise
eligible individual for refusing to accept new work under any of the following
conditions:
(a) If the position offered is vacant due directly to a
strike, lockout, or other labor dispute.
(b) If the
remuneration, hours, or other conditions of the work offered are substantially
less favorable to the individual than those prevailing for similar work in the
locality.
(c) If as a
condition of being employed, the individual would be required to join a company
union or to resign from or refrain from joining a bona fide labor organization.
(8) All of the
following apply to an individual who seeks benefits under this act:
(a) An individual
is disqualified from receiving benefits for a week in which the individual's
total or partial unemployment is due to either of the following:
(i) A labor dispute in active progress at the place at which
the individual is or was last employed, or a shutdown or start-up operation
caused by that labor dispute.
(ii) A labor dispute, other than a lockout, in active progress
or a shutdown or start-up operation caused by that labor dispute in any other
establishment within the United States that is both functionally integrated
with the establishment described in subparagraph (i) and operated by the same employing unit.
(b) An individual's
disqualification imposed or imposable under this subsection is terminated if
the individual performs services in employment with an employer in at least 2
consecutive weeks falling wholly within the period of the individual's total or
partial unemployment due to the labor dispute, and in addition earns wages in
each of those weeks in an amount equal to or greater than the individual's
actual or potential weekly benefit rate.
(c) An individual
is not disqualified under this subsection if the
individual is not directly involved in the labor dispute. An individual is not
directly involved in a labor dispute unless any of the following are
established:
(i) At the time or in the course of a labor dispute in the
establishment in which the individual was then employed, the individual in
concert with 1 or more other employees voluntarily stopped working other than
at the direction of the individual's employing unit.
(ii) The individual is participating in, financing, or directly
interested in the labor dispute that causes the individual's total or partial
unemployment. The payment of regular union dues, in amounts and for purposes
established before the inception of the labor dispute, is not financing a labor
dispute within the meaning of this subparagraph.
(iii) At any time a labor dispute in the establishment or
department in which the individual was employed does not exist, and the
individual voluntarily stops working, other than at the direction of the
individual's employing unit, in sympathy with employees in some other
establishment or department in which a labor dispute is in progress.
(iv) The individual's total or partial unemployment is due to a
labor dispute that was or is in progress in a department, unit, or group of
workers in the same establishment.
(d) As used in this
subsection, "directly interested" shall be construed and applied so
as not to disqualify individuals unemployed as a result of a labor dispute the
resolution of which may not reasonably be expected to affect their wages,
hours, or other conditions of employment, and to disqualify individuals whose
wages, hours, or conditions of employment may reasonably be expected to be affected by the resolution of the labor
dispute. A "reasonable expectation" of an effect on an individual's
wages, hours, or other conditions of employment exists, in the absence of a
substantial preponderance of evidence to the contrary, in any of the following
situations:
(i) If it is established that there is in the particular
establishment or employing unit a practice, custom, or contractual obligation
to extend within a reasonable period to members of the individual's grade or
class of workers in the establishment in which the individual is or was last
employed changes in terms and conditions of employment that are substantially
similar or related to some or all of the changes in terms and conditions of
employment that are made for the workers among whom there exists the labor
dispute that has caused the individual's total or partial unemployment.
(ii) If it is established that l of the issues in or purposes of
the labor dispute is to obtain a change in the terms and conditions of
employment for members of the individual's grade or class of workers in the
establishment in which the individual is or was last employed.
(iii) If a collective bargaining agreement covers both the
individual's grade or class of workers in the establishment in which the
individual is or was last employed and the workers in another establishment of
the same employing unit who are actively participating in the labor dispute,
and that collective bargaining agreement is subject by its terms to
modification, supplementation, or replacement, or has expired or been opened by
mutual consent at the time of the labor dispute.
(e) In determining
the scope of the grade or class of workers, evidence
of the following is relevant:
(i) Representation of the workers by the same national or
international organization or by local affiliates of that national or
international organization.
(ii) Whether the workers are included in a single, legally
designated, or negotiated bargaining unit.
(iii) Whether the workers are or within the past 6 months have
been covered by a common master collective bargaining agreement that sets forth
all or any part of the terms and conditions of the workers' employment, or by
separate agreements that are or have been bargained as a part of the same
negotiations.
(iv) Any functional integration of the work performed by those
workers.
(v) Whether the resolution of those issues involved in the
labor dispute as to some of the workers could directly or indirectly affect the
advancement, negotiation, or settlement of the same or similar issues in
respect to the remaining workers.
(vi) Whether the workers are currently or have been covered by
the same or similar demands by their recognized or certified bargaining agent
or agents for changes in their wages, hours, or other conditions of employment.
(vii) Whether issues on the same subject matter as those involved
in the labor dispute have been the subject of proposals or demands made upon
the employing unit that would by their terms have applied to those workers.
(9) Notwithstanding
subsections (1) to (8), if the employing unit submits notice to the
unemployment agency of possible ineligibility or disqualification beyond the
time limits prescribed by unemployment agency rule and the unemployment agency
concludes that benefits should not have been paid,
the claimant shall repay the benefits paid during the entire period of
ineligibility or disqualification. The unemployment agency shall not charge
interest on repayments required under this subsection.
(10) An individual
is disqualified from receiving benefits for any week or part of a week in which
the individual has received, is receiving, or is seeking unemployment benefits
under an unemployment compensation law of another state or of the United
States. If the appropriate agency of the other state or of the United States
finally determines that the individual is not entitled to unemployment
benefits, the disqualification described in this subsection does not apply.
(11) Beginning on May 1, 2020, and until the effective date
of the amendatory act that added this subsection, if an individual leaves work
to accept permanent full-time work with another employer, the individual is
considered to have met the requirements of subsection (5) regardless of whether
the individual actually performed services for the other employer or whether
the work was permanent full-time work. Benefits payable to the individual must
be charged to the nonchargeable benefits account.
Sec. 32. (a) Claims for benefits shall be made
pursuant to regulations prescribed by the unemployment agency. The unemployment
agency shall designate representatives who shall promptly examine claims and
make a determination on the facts. The unemployment agency may establish rules
providing for the examination of claims, the determination of the validity of
the claims, and the amount and duration of benefits to be paid. The claimant
and other interested parties shall be promptly notified of the determination
and the reasons for the determination.
(b) The unemployment agency shall mail to the claimant, to each base
period employer or employing unit, and to the separating employer or employing
unit, a monetary determination. The monetary determination shall notify each of
these employers or employing units that the claimant has filed an application
for benefits and the amount the claimant reported as earned with the separating
employer or employing unit, and shall state the name of each employer or
employing unit in the base period and the name of the separating employer or
employing unit. The monetary determination shall also state the claimant's
weekly benefit rate, the amount of base period wages paid by each base period
employer, the maximum benefit amount that could be charged to each employer's
account or experience account, and the reason for separation reported by the
claimant. The monetary determination shall also state whether the claimant is
monetarily eligible to receive unemployment benefits. Except for separations
under section 29(1)(a), no further reconsideration of a separation from any
base period employer will be made unless the base period employer notifies the
unemployment agency of a possible disqualifying separation within 30 days of
the separation in accordance with this subsection. Charges to the employer and
payments to the claimant shall be as described in section 20(a). New,
additional, or corrected information received by the unemployment agency more
than 10 days after mailing the monetary determination shall be considered a
request for reconsideration by the employer of the monetary determination and
shall be reviewed as provided in section 32a.
(c) For the purpose of
determining a claimant's nonmonetary eligibility and qualification for
benefits, if the claimant's most recent base period or benefit year separation
was for a reason other than the lack of work, then
a determination shall be issued concerning that separation to the claimant and
to the separating employer. If a claimant is not disqualified based on his or
her most recent separation from employment and has satisfied the requirements
of section 29, the unemployment agency shall issue a nonmonetary determination
as to that separation only. If a claimant is not disqualified based on his or
her most recent separation from employment and has not satisfied the
requirements of section 29, the unemployment agency shall issue 1 or more
nonmonetary determinations necessary to establish the claimant's qualification
for benefits based on any prior separation in inverse chronological order. The
unemployment agency shall consider all base period separations involving
disqualifications under section 29(1)(h), (i), (j), (k), (m), or (n) in determining
a claimant's nonmonetary eligibility and qualification for benefits. An
employer may designate in writing to the unemployment agency an individual or
another employer or an employing unit to receive any notice required to be
given by the unemployment agency to that employer or to represent that employer
in any proceeding before the unemployment agency as provided in section 31. Notwithstanding any other provision of this act,
beginning May 1, 2020, and until the effective date of the amendatory act that
added this subsection, in determining a claimant's nonmonetary eligibility to
qualify for benefits, the unemployment agency shall not issue a determination
with respect to the claimant's separation from a base period or benefit year
employer other than the separating employer, and the unemployment agency shall
consider the claimant to have satisfied the requirements of section 29(2) and
(3).
(d) If the unemployment
agency requests additional monetary or nonmonetary
information from an employer or employing unit and the unemployment agency
fails to receive a written response from the employer or employing unit within
10 calendar days after the date of mailing the request for information, the
unemployment agency shall make a determination based upon the available
information at the time the determination is made. Charges to the employer and
payments to the claimant shall be as described in section 20(a).
(e) The claimant or
interested party may file an application with an office of the unemployment
agency for a redetermination in accordance with section 32a.
(f) The issuance of each
benefit check shall be considered a determination by the unemployment agency
that the claimant receiving the check was covered during the compensable
period, and eligible and qualified for benefits. A chargeable employer, upon
receipt of a listing of the check as provided in section 21(a), may protest by
requesting a redetermination of the claimant's eligibility or qualification as
to that period and a determination as to later weeks and benefits still unpaid
that are affected by the protest. Upon receipt of the protest or request, the
unemployment agency shall investigate and redetermine whether the claimant is
eligible and qualified as to that period. If, upon the redetermination, the
claimant is found ineligible or not qualified, the unemployment agency shall
proceed as described in section 62. In addition, the unemployment agency shall
investigate and determine whether the claimant obtained benefits for 1 or more
preceding weeks within the series of consecutive weeks that includes the week
covered by the redetermination and, if so, shall proceed as described in
section 62 as to those weeks. Notwithstanding
any other provision of this act, for benefits charged
after March 15, 2020 but before January 1, 2021, an employer has 1 year after
the date a benefit payment is charged against the employer's account to protest
that charge.
(g) If a claimant
commences to file continued claims through a different state claim office in
this state or elsewhere, the unemployment agency promptly shall issue written
notice of that fact to the chargeable employer.
(h) If a claimant refuses
an offer of work, or fails to apply for work of which the claimant has been
notified, as provided in section 29(1)(c) or (e), the unemployment agency shall
promptly make a written determination as to whether or not the refusal or
failure requires disqualification under section 29. Notice of the
determination, specifying the name and address of the employing unit offering
or giving notice of the work and of the chargeable employer, shall be sent to
the claimant, the employing unit offering or giving notice of the work, and the
chargeable employer.
(i) The unemployment
agency shall issue a notification to the claimant of claimant rights and
responsibilities within 2 weeks after the initial benefit payment on a claim
and 6 months after the initial benefit payment on the claim. If the claimant
selected a preferred form of communication, the notification must be conveyed
by that form. Issuing the notification must not delay or interfere with the
claimant's benefit payment. The notification must contain clear and
understandable information pertaining to all of the following:
(i) Determinations as provided in section 62.
(ii) Penalties and
other sanctions as provided in this act.
(iii) Legal right to
protest the determination and the right to appeal
through the administrative hearing system.
(iv) Other information
needed to understand and comply with agency rules and regulations not specified
in this section.
Sec. 32c. (1) Notwithstanding any
other provision of this act, for a claim filed after March 15, 2020, but before
the effective date of the amendatory act that added this section, the
unemployment agency shall not reconsider the claim based solely on whether an
applicable executive order issued by the governor that was in effect at the
time the claim was initially examined did or did not have the force of law.
(2)
A new, additional, or continued claim for unemployment benefits filed within 28
days after the last day the claimant worked is considered to have been filed on
time under this act and the rules promulgated under this act. This subsection
does not apply after December 31, 2020.
Sec. 32d. Notwithstanding any other provision of this act, before hiring a new employee, the unemployment agency shall coordinate with the department of labor and economic opportunity and the Michigan works agencies to determine whether an existing employee of either of those entities may instead be utilized.
Sec. 48. (1) An individual shall be considered
unemployed for any week during which he or she performs no services and for
which remuneration is not payable to the individual, or for any week of less than
full-time work if the remuneration payable to the individual is less than 1-1/2
times his or her weekly benefit rate, except that for payable weeks of benefits
beginning after the effective date of the amendatory act that added section 15a
and before October 1, 2015, an individual is considered unemployed for any week
or less of full-time work if the remuneration payable to the individual is less than 1-3/5 times his or her
weekly benefit rate. However, any loss of remuneration incurred by an individual
during any week resulting from any cause other than the failure of the
individual's employing unit to furnish full-time, regular employment shall be
included as remuneration earned for purposes of this section and section 27(c).
The total amount of remuneration lost shall be determined pursuant to
regulations prescribed by the unemployment agency. For the purposes of this
act, an individual's weekly benefit rate means the weekly benefit rate
determined pursuant to section 27(b).
(2) All amounts paid to a
claimant by an employing unit or former employing unit for a vacation or a
holiday, and amounts paid in the form of retroactive pay, pay in lieu of
notice, severance payments, salary continuation, or other remuneration intended
by the employing unit as continuing wages or other monetary consideration as
the result of the separation, excluding SUB payments as described in section
44, shall be considered remuneration in determining whether an individual is
unemployed under this section and also in determining his or her benefit
payments under section 27(c), for the period designated by the contract or
agreement providing for the payment, or if there is no contractual
specification of the period to which payments shall be allocated, then for the
period designated by the employing unit or former employing unit. However,
payments for a vacation or holiday, or the right to which has irrevocably
vested, after 14 days following a vacation or holiday shall not be considered
wages or remuneration within the meaning of this section.
(3) An individual shall
not be considered to be unemployed during any leave of absence from work
granted by an employer either at the request of the
individual or pursuant to an agreement with the individual's duly authorized
bargaining agent, or in accordance with law. An individual shall neither be
considered not unemployed nor on a leave of absence solely because the
individual elects to be laid off, pursuant to an option provided under a
collective bargaining agreement or written employer plan that permits an
election, if there is a temporary layoff because of lack of work and the
employer has consented to the election. Notwithstanding any other provision of this act, with respect to
claims for weeks of benefits beginning before January 1, 2021, an individual on
a leave of absence because the individual self-isolated or self-quarantined in
response to elevated risk from COVID-19 because he or she is immunocompromised,
displayed a commonly recognized principal symptom of COVID-19 that was not
otherwise associated with a known medical or physical condition of the
individual, had contact in the last 14 days with an individual with a confirmed
diagnosis of COVID-19, or needed to care for an individual with a confirmed
diagnosis of COVID-19, may be considered to be unemployed unless the individual
is already on sick leave or receives a disability benefit.
Sec. 64. (1)(a) Payment of extended benefits under
this section shall be made at the individual's weekly extended benefit rate,
for any week of unemployment that begins in the individual's eligibility
period, to each individual who is fully eligible and not disqualified under
this act, who has exhausted all rights to regular benefits under this act, who
is not seeking or receiving benefits with respect to that week under the
unemployment compensation law of Canada, and who does not have rights to
benefits under the unemployment compensation law of any other state or the United States or to compensation or allowances
under any other federal law, such as the trade expansion act, the automotive
products trade act, or the railroad unemployment insurance act; however, if the
individual is seeking benefits and the appropriate agency finally determines
that the individual is not entitled to benefits under another law, the
individual shall be considered to have exhausted the right to benefits. For the
purpose of the preceding sentence, an individual shall have exhausted the right
to regular benefits under this section with respect to any week of unemployment
in the individual's eligibility period under either of the following
circumstances:
(i) When payments of regular benefits may not be made for that
week because the individual has received all regular benefits available based
on his or her employment or wages during the base period for the current
benefit year.
(ii) When the right to
the benefits has terminated before that week by reason of the expiration or
termination of the benefit year with respect to which the right existed; and
the individual has no, or insufficient, wages or employment to establish a new
benefit year. However, for purposes of this subsection, an individual shall be
considered to have exhausted the right to regular benefits with respect to any
week of unemployment in his or her eligibility period when the individual may
become entitled to regular benefits with respect to that week or future weeks,
but the benefits are not payable at the time the individual claims extended
benefits because final action on a pending redetermination or on an appeal has
not yet been taken with respect to eligibility or qualification for the regular
benefits or when the individual may be entitled to regular benefits with
respect to future weeks of unemployment, but regular benefits
are not payable with respect to any week of unemployment in his or her
eligibility period by reason of seasonal limitations in any state unemployment
compensation law.
(b) Except where inconsistent with the provisions of this
section, the terms and conditions of this act that apply to claims for regular
benefits and to the payment of those benefits apply to claims for extended
benefits and to the payment of those benefits.
(c) An individual shall not be paid additional compensation
and extended compensation with respect to the same week. If an individual is
potentially eligible for both types of compensation in this state with respect
to the same week, the unemployment agency may pay extended compensation instead
of additional compensation with respect to the week. If an individual is
potentially eligible for extended compensation in 1 state and potentially
eligible for additional compensation for the same week in another state, the
individual may elect which of the 2 types of compensation to claim.
(2) The unemployment agency shall establish, for each
eligible individual who files an application, an extended benefit account with
respect to that individual's benefit year. The amount established in the
account shall be determined as follows:
(a) If subdivision (b) or (c) does not apply, whichever of the
following is smaller:
(i) Fifty percent of
the total amount of regular benefits payable to the individual under this act
during the benefit year.
(ii) Thirteen times
the individual's weekly extended benefit rate.
(b) With respect to a week beginning in a period in which the
average rate of total unemployment as described in subsection (5)(c)(ii) equals or exceeds
8%, but no later than the end of the week in which extended benefits payable
under this section cease to be funded under section 2005 of the American recovery and
reinvestment act of 2009, Public Law 111-5, 100% by the federal government, whichever
of the following is smaller:
(i) Eighty percent of
the total amount of regular benefits payable to the individual under this act
during the benefit year.
(ii) Twenty times the
individual's weekly extended benefit rate.
If an amount determined under this subsection is not an exact
multiple of 1/2 of the individual's weekly extended benefit rate, the amount
shall be decreased to the next lower such multiple.
(3) All of the following apply to an extended benefit period:
(a) The period begins with the third week after whichever of
the following weeks first occurs:
(i) A week for which
there is a national "on" indicator as determined by the United States
secretary Secretary of laborLabor.
(ii) A week for which
there is a Michigan "on" indicator.
(b) The period ends with the third week after the first week
for which there is both a national "off" indicator and a Michigan
"off" indicator.
(c) The period is at least 13 consecutive weeks long, and
does not begin by reason of a Michigan "on" indicator before the
fourteenth week after the close of a prior extended benefit period under this
section. However, an extended benefit period terminates with the week preceding
the week for which no extended benefit payments are considered to be shareable
compensation under the federal-state extended unemployment compensation act of
1970, section 3304 nt of the internal revenue code of 1986, 26 USC 3304 nt.
(4) An individual's "eligibility period" consists
of the weeks in his or her benefit year that begin in an extended benefit
period, and if his or her benefit year ends within the extended benefit period,
any weeks thereafter that begin in the period.
(5) (a) With respect to weeks beginning after September 25,
1982, a national "on" indicator for a week shall be determined by the
United States secretary Secretary of laborLabor.
(b) A national "off" indicator for a week shall be
determined by the United States secretary Secretary of laborLabor.
(c) There is a Michigan "on" indicator for a week
if 1 or both of the following apply:
(i) The rate of
insured unemployment under this act for the period consisting of that week and
the immediately preceding 12 weeks equaled or exceeded 120% of the average of
the insured unemployment rates for the corresponding 13-week period ending in
each of the preceding 2 calendar years, and equaled or exceeded 5%. With
respect to compensation for each week of unemployment beginning after December
17, 2010 and ending December 31, 2011, the rate of insured unemployment under
this act for the period consisting of that week and the immediately preceding
12 weeks equaled or exceeded 120% of the average of the insured unemployment
rates for the corresponding 13-week period ending in each of the preceding 3
calendar years, and equaled or exceeded 5%.
(ii) For weeks
beginning after December 17, 2010 and ending with the week ending 4 weeks
before the last week of unemployment for which 100% federal sharing funding is available under section 2005(a) of Public
Law 111-5, without regard to the extension of federal sharing for certain
claims as provided under section 2005(c) of that
law, for extended
benefits, the average rate of total unemployment in this state,
seasonally adjusted, as determined by the United States secretary Secretary of labor, Labor, for the period
consisting of the most recent 3 months for which data for all states are
published before the close of the week equaled or exceeded both of the
following:
(A) Six and one-half percent.
(B) One hundred ten percent of the average rate of total
unemployment in this state, seasonally adjusted, for the period consisting of
the corresponding 3-month period in any or all of the preceding 3 2 calendar years.
(d) There is a Michigan "off" indicator for a week
if, for the period consisting of that week and the immediately preceding 12
weeks, either subdivision (c)(i) or (c)(ii) was not satisfied. Notwithstanding any other provision of
this act, if this state is in a period in which temporary extended unemployment
compensation is payable in this state under title II of the job creation and
worker assistance act of 2002, Public Law 107-147, or another similar federal
law, and if the governor has the authority under that federal act or another
similar federal law, then the governor may elect to trigger "off" the
Michigan indicator for extended benefits under this act only for a period in
which temporary extended unemployment compensation is payable in this state, if
the election by the governor would not result in a decrease in the number of
weeks of unemployment benefits payable to an individual under this act or under
federal law.
(e) For purposes of subdivisions (c) and (d), the rate of
insured unemployment for any 13-week period shall be determined by reference to
the average monthly covered employment under this act for
the first 4 of the most recent 6 calendar quarters ending before the close of
that period.
(f) As used in this subsection, "rate of insured
unemployment" means the percentage determined by dividing:
(i) The average
weekly number of individuals filing claims for regular benefits for weeks of
unemployment with respect to the specified period as determined on the basis of
the reports made by all state agencies or, in the case of subdivisions (c) and
(d), by the unemployment agency, to the federal government; by
(ii) In the case of
subdivisions (c) and (d), the average monthly covered employment under this act
for the specified period.
(g) Calculations under subdivisions (c) and (d) shall be made
by the unemployment agency and shall conform to regulations, if any, prescribed
by the United States secretary
Secretary of
labor Labor under section
3304 nt of the internal revenue code of 1986, 26 USC 3304 nt.
(6) As used in this section:
(a) "Regular benefits" means benefits payable to an
individual under this act and, unless otherwise expressly provided, under any other
state unemployment compensation law, including unemployment benefits payable
pursuant to 5 USC 8501 to 8525, other than extended benefits, and other than
additional benefits which includes training benefits under section 27(g).
(b) "Extended benefits" means benefits, including
additional benefits and unemployment benefits payable pursuant to 5 USC 8501 to
8525, payable for weeks of unemployment beginning in an extended benefit period
to an individual as provided under this section.
(c) "Additional benefits" means benefits totally
financed by a state and payable to exhaustees by reason of conditions of high unemployment or by reason of other special factors
under the provisions of any state law as well as training benefits paid under
section 27(g) with respect to an extended benefit period.
(d) "Weekly extended benefit rate" means an amount
equal to the amount of regular benefits payable under this act to an individual
within the individual's benefit year for a week of total unemployment, unless
the individual had more than 1 weekly extended benefit rate within that benefit
year, in which case the individual's weekly extended benefit rate shall be
computed by dividing the maximum amount of regular benefits payable under this
act within that benefit year by the number of weeks for which benefits were
payable, adjusted to the next lower multiple of $1.00.
(e) "Benefits payable" includes all benefits
computed in accordance with section 27(d), irrespective of whether the
individual was otherwise eligible for the benefits within his or her current
benefit year and irrespective of any benefit reduction by reason of a
disqualification that required a reduction.
(7) (a) Notwithstanding the provisions of subsection (1)(b),
an individual is ineligible for payment of extended benefits for any week of
unemployment if the unemployment agency finds that during that period either of
the following occurred:
(i) The individual
failed to accept any offer of suitable work or failed to apply for any suitable
work to which the individual was referred by the unemployment agency.
(ii) The individual
failed to actively engage in seeking work as described in subdivision (f).
(b) Any individual who has been found ineligible for extended
benefits under subdivision (a) shall also be denied benefits beginning with the first day of the week following the
week in which the failure occurred and until the individual has been employed
in each of 4 subsequent weeks, whether or not consecutive, and has earned
remuneration equal to not less than 4 times the extended weekly benefit amount,
as determined under subsection (2).
(c) As used in this subsection, "suitable work"
means, with respect to any individual, any work that is within that
individual's capabilities, if both of the following apply:
(i) The gross weekly
remuneration payable for the work exceeds the sum of the following:
(A) The individual's extended weekly benefit amount as
determined under subsection (2).
(B) The amount, if any, of supplemental unemployment
compensation benefits, as defined in section 501(c)(17)(D) of the internal
revenue code of 1986, 26 USC 501(c)(17)(D), payable to the individual for that
week.
(ii) The employer pays
wages not less than the higher of the minimum wage provided by section 6(a)(1)
of the fair labor standards act of 1938, 29 USC 206(a)(1), without regard to
any exemption, or the applicable state or local minimum wage.
(d) An individual shall not be denied extended benefits for
failure to accept an offer of, or apply for, any job that meets the definition
of suitable work in subdivision (c) if 1 or more of the following are true:
(i) The position was
not offered to the individual in writing and was not listed with the state
employment service.
(ii) The failure could
not result in a denial of benefits under the definition of suitable work in
section 29(6) to the extent that the criteria of suitability in that section
are not inconsistent with the provisions of
subdivision (c).
(iii) The individual
furnishes satisfactory evidence to the unemployment agency that his or her
prospects for obtaining work in his or her customary occupation within a
reasonably short period are good. If that evidence is deemed satisfactory for
this purpose, the determination of whether any work is suitable with respect to
that individual shall be made in accordance with the definition of suitable
work in section 29(6) without regard to the definition in subdivision (c).
(e) Notwithstanding subsection (1)(b), work is not suitable
work for an individual if the work does not meet the labor standard provisions
required by section 3304(a)(5) of the internal revenue code of 1986, 26 USC
3304(a)(5), and section 29(7).
(f) For the purposes of subdivision (a)(ii), an individual is actively engaged in seeking work during
any week if both of the following are true:
(i) The individual
has engaged in a systematic and sustained effort to obtain work during that
week.
(ii) The individual
furnishes tangible evidence to the unemployment agency that he or she has
engaged in a systematic and sustained effort during that week.
(g) The unemployment agency shall refer any applicant for
extended benefits to any suitable work that meets the criteria prescribed in
subdivisions (c) and (d).
(h) An individual is not eligible to receive extended
benefits with respect to any week of unemployment in his or her eligibility
period if that individual has been disqualified for benefits under this act
because he or she voluntarily left work, was discharged for misconduct, or
failed to accept an offer of or apply for suitable
work unless the individual requalified in accordance with a specific provision
of this act requiring that the individual be employed subsequent to the week in
which the act or discharge occurred that caused the disqualification.
(8) (a) Except as provided in subdivision (b), payment of
extended benefits shall not be made to any individual for any week of
unemployment that otherwise would have been payable pursuant to an interstate
claim filed in any state under the interstate benefit payment plan, if an
extended benefit period is not in effect for the week in the state in which the
interstate claim is filed.
(b) Subdivision (a) does not apply with respect to the first
2 weeks for which extended benefits are payable, pursuant to an interstate
claim, to the individual from the extended benefit account established for the
individual.
(9) Notwithstanding the provisions of subsection (1)(b), an
individual who established a benefit year under section 46 on or after January
2, 1983, shall be eligible to receive extended benefits only if the individual
earned wages in an amount exceeding 40 times the individual's most recent
weekly benefit rate during the base period of the benefit year that is used to
establish the individual's extended benefit account under subsection (2).
(10) This subsection is effective for weeks of unemployment
beginning after October 30, 1982. Notwithstanding any other provision of this
section, an individual's extended benefit entitlement, with respect to weeks of
unemployment beginning after the end of the benefit year, shall be reduced, but
not below zero, by the product of the number of weeks for which the individual
received any amounts of trade readjustment allowances, paid under the trade act
of 1974, Public Law 93-618, within that benefit year, multiplied
by the individual's weekly benefit amount for extended benefits.
Enacting section 1. This amendatory act does not take
effect unless Senate Bill No. 911 of the 100th Legislature is enacted into law.