Act No. 229
Public Acts of 2020
Approved by the Governor
October 20, 2020
Filed with the Secretary of State
October 20, 2020
EFFECTIVE DATE: October 20, 2020
state of michigan
100th Legislature
Regular session of 2020
Introduced by Senator Horn
ENROLLED SENATE BILL No. 886
AN ACT to amend 1936 (Ex Sess) PA 1, entitled “An act to protect the welfare of the people of this state through the establishment of an unemployment compensation fund, and to provide for the disbursement thereof; to create certain other funds; to create the Michigan employment security commission, and to prescribe its powers and duties; to provide for the protection of the people of this state from the hazards of unemployment; to levy and provide for contributions from employers; to levy and provide for obligation assessments; to provide for the collection of those contributions and assessments; to enter into reciprocal agreements and to cooperate with agencies of the United States and of other states charged with the administration of any unemployment insurance law; to furnish certain information to certain governmental agencies for use in administering public benefit and child support programs and investigating and prosecuting fraud; to provide for the payment of benefits; to provide for appeals from redeterminations, decisions and notices of assessments; and for referees and a board of review to hear and decide the issues arising from redeterminations, decisions and notices of assessment; to provide for the cooperation of this state and compliance with the provisions of the social security act and the Wagner-Peyser act passed by the Congress of the United States of America; to provide for the establishment and maintenance of free public employment offices; to provide for the transfer of funds; to make appropriations for carrying out the provisions of this act; to prescribe remedies and penalties for the violation of this act; and to repeal all acts and parts of acts inconsistent with this act,” by amending 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 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) 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) Except as otherwise provided in subsection (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) For purposes of this section, beginning on 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) The work search conducted by the claimant is subject to audit by the unemployment agency.
(8) 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) 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, 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 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 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, and the leaving is due to the military duty reassignment of that member of the United States 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.
(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) 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 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 of Labor.
(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 of Labor.
(b) A national “off” indicator for a week shall be determined by the United States Secretary of Labor.
(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 funding is available for extended benefits, the average rate of total unemployment in this state, seasonally adjusted, as determined by the United States Secretary of 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 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 of 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.
This act
is ordered to take immediate effect.
Secretary of the Senate
Clerk of the House of Representatives
Approved___________________________________________
____________________________________________________
Governor