SENATE BILL No. 1126
February 21, 2002, Introduced by Senators STEIL, SHUGARS, GARCIA, SANBORN,
BULLARD, STILLE and HAMMERSTROM and referred to the Committee on
Human Resources and Labor.
A bill to amend 1936 (Ex Sess) PA 1, entitled
"Michigan employment security act,"
by amending sections 19, 27, 29, and 48 (MCL 421.19, 421.27,
421.29, and 421.48), section 19 as amended by 1996 PA 535, sec-
tion 27 as amended by 1995 PA 181, section 29 as amended by 1995
PA 25, and section 48 as amended by 1983 PA 164, and by adding
section 13l.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
1 SEC. 13l. (1) EACH EMPLOYEE OF AN EMPLOYER SUBJECT TO THIS
2 ACT SHALL PAY TO THE UNEMPLOYMENT AGENCY $3.00 PER QUARTER.
3 (2) AN EMPLOYER SUBJECT TO THIS ACT SHALL WITHHOLD FROM
4 WAGES PAID TO AN EMPLOYEE THE PAYMENT REQUIRED UNDER SUBSECTION
5 (1).
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1 Sec. 19. (a) The commission shall determine the contribution
2 rate of each contributing employer for each calendar year after
3 1977 as follows:
4 (1) (i) Except as provided in paragraph (ii), an employer's
5 rate shall be calculated as described in table A with respect to
6 wages paid by the employer in each calendar year for employment.
7 If an employer's coverage is terminated under section 24, or at
8 the conclusion of 8 or more consecutive calendar quarters during
9 which the employer has not had workers in covered employment, and
10 if the employer becomes liable for contributions, the employer
11 shall be considered as newly liable for contributions for the
12 purposes of table A or table B of this subsection.
13 (ii) To provide against the high risk of net loss to the
14 fund in such cases, an employing unit which
THAT becomes newly
15 liable for contributions under this act in a calendar year begin-
16 ning on or after January 1, 1983 in which it employs in
17 "employment", not necessarily simultaneously but in any 1 week 2
18 or more individuals in the performance of 1 or more contracts or
19 subcontracts for construction in the state of roads, bridges,
20 highways, sewers, water mains, utilities, public buildings, fac-
21 tories, housing developments, or similar construction projects,
22 shall be liable for contributions to that employer's account
23 under this act for the first 4 years of operations in this state
24 at a rate equal to the average rate paid by employers engaged in
25 the construction business as determined by contractor type in the
26 manner provided in table B.
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1 (iii) For the calendar years 1983 and 1984, the contribution
2 rate of a construction employer shall not exceed its 1982
3 contribution rate with respect to wages, paid by that employer,
4 related to the execution of a fixed price construction contract
5 which THAT was entered into prior to
January 1, 1983.
6 Furthermore, such THAT contribution
rate shall be reduced, by
7 the solvency tax rate assessed against the employer under section
8 19a, for the year in which such THE
solvency tax rate is
9 applicable. Furthermore, notwithstanding section 44, the taxable
10 wage limit, for calendar years 1983 and 1984, with respect to
11 wages paid under such A fixed price
contract, shall be the max-
12 imum amount of remuneration paid within a calendar year by an
13 employer subject to the federal unemployment tax act, CHAPTER 23
14 OF SUBTITLE C OF THE INTERNAL REVENUE CODE OF 1986,
15 26 U.S.C. 3301 to 3311, to an individual with respect to employ-
16 ment as defined in that act which is subject to tax under that
17 act during that year.
18 _________________________________________________________________
19 Table A
20 _________________________________________________________________
21 Year of Contribution Contribution Rate
22 Liability
23
24 _________________________________________________________________
25
26 1 2.7%
27 2 2.7%
28 3 1/3 (chargeable benefits component)
29 + 1.8%
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1 4 2/3 (chargeable benefits component)
2 + 1.0%
3 5 and over (chargeable benefits component) +
4 (account building component) +
5 (nonchargeable benefits component)
6 _________________________________________________________________
7 Table B
8 _________________________________________________________________
9 Year of Contribution Contribution Rate
10 Liability
11
12 _________________________________________________________________
13
14 1 average construction contractor rate
15 as determined by the commission
16 2 average construction contractor rate
17 as determined by the commission
18 3 1/3 (chargeable benefits component)
19 + 2/3 average construction contrac-
20 tor rate as determined by the com-
21 mission
22 4 2/3 (chargeable benefits component)
23 + 1/3 average construction contrac-
24 tor rate as determined by the com-
25 mission
26 5 and over (chargeable benefits component) +
27 (account building component) +
28 (nonchargeable benefits component)
29 (2) With the exception of employers who are in the first 4
30 consecutive years of liability, each employer's contribution rate
31 for each calendar year after 1977 shall be the sum of the follow-
32 ing components, all of which are determined as of the computation
33 date: a chargeable benefits component determined under subdivi-
34 sion (3), an account building component determined under subdivi-
35 sion (4), and a nonchargeable benefits component determined under
36 subdivision (5). Each employer's contribution rate for calendar
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1 years before 1978 shall be determined by the provisions of this
2 act in effect during the years in question.
3 (3) (i) The chargeable benefits component of an employer's
4 contribution rate is the percentage determined by dividing: the
5 total amount of benefits charged to the employer's experience
6 account within the lesser of 60 consecutive months ending on the
7 computation date or the number of consecutive months ending on
8 the computation date with respect to which the employer has been
9 continuously liable for contributions; by the amount of wages,
10 subject to contributions, paid by the employer within the same
11 period. If the resulting quotient is not an exact multiple of
12 1/10 of 1%, it shall be increased to the next higher multiple of
13 1/10 of 1%.
14 (ii) For benefit years established before the conversion
15 date prescribed in section 75, the chargeable benefits component
16 shall not exceed 6.0%, unless there is a statutory change in the
17 maximum duration of regular benefit payments or the statutory
18 ratio of regular benefit payments to credit weeks. In the event
19 of a change in the maximum duration of regular benefit payments,
20 the maximum chargeable benefits component shall increase by the
21 same percentage as the statutory percentage change in the dura-
22 tion of regular benefit payments between computation dates. In
23 the event of an increase in the statutory ratio of regular bene-
24 fit payments to credit weeks, as described in section 27(d), the
25 maximum chargeable benefits component determined as of the compu-
26 tation dates occurring after the effective date of the increased
27 ratio shall increase by 1/2 the same percentage as the increase
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1 in the ratio of regular benefit payments to credit weeks. If the
2 resulting increase is not already an exact multiple of 1/10 of
3 1%, it shall be adjusted to the next higher multiple of 1/10 of
4 1%. For benefit years established after the conversion date pre-
5 scribed in section 75, the chargeable benefits component shall
6 not exceed 6.0%, unless there is a statutory change in the maxi-
7 mum duration of regular benefit payments or the percentage factor
8 of base period wages, which defines maximum duration, as provided
9 in section 27(d). If there is a statutory change in the maximum
10 duration of regular benefit payments, the maximum chargeable ben-
11 efits component shall increase by the same percentage as the
12 statutory percentage change in the duration of regular benefit
13 payments between computation dates. If there is an increase in
14 the statutory percentage factor of base period wages, as
15 described in section 27(d), the maximum chargeable benefits com-
16 ponent determined as of the computation dates occurring after the
17 effective date of the increased ratio shall increase by 1/2 the
18 same percentage as the increase in the percentage factor of base
19 period wages. If the resulting increase is not already an exact
20 multiple of 1/10 of 1%, it shall be adjusted to the next higher
21 multiple of 1/10 of 1%.
22 (4) The account building component of an employer's contri-
23 bution rate is the percentage arrived at by the following
24 calculations: (i) Multiply the amount of the employer's total
25 payroll for the 12 months ending on the computation date, by the
26 cost criterion; (ii) Subtract the amount of the balance in the
27 employer's experience account as of the computation date from the
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1 product determined under (i); and (iii) if the remainder is zero
2 or a negative quantity, the account building component of the
3 employer's contribution rate shall be zero; but (iv) if the
4 remainder is a positive quantity, the account building component
5 of the employer's contribution rate shall be determined by divid-
6 ing that remainder by the employer's total payroll paid within
7 the 12 months ending on the computation date. The account build-
8 ing component shall not exceed the lesser of 1/4 of the percen-
9 tage thus calculated or 2%. However,
except as otherwise pro-
10 vided in this subdivision, the account building component shall
11 not exceed the lesser of 1/2 of the percentage thus
calculated
12 or 3%, if on the June 30 of the preceding calendar year the bal-
13 ance in the unemployment compensation fund was less than 50% of
14 an amount equal to the aggregate of all contributing employers'
15 annual payrolls, for the 12 months ending March 31, times the
16 cost criterion. For calendar years after 1993 and before 1996,
17 the account building component shall not exceed the lesser of .69
18 of the percentage calculated, or 3%, if on the June 30 of the
19 preceding calendar year the balance in the unemployment compensa-
20 tion fund was less than 50% of an amount equal to the aggregate
21 of all contributing employers' annual payrolls, for the 12 months
22 ending March 31, as defined in section 18(f), times the cost cri-
23 terion; selected for the computation date under section 18(e).
24 If the account building component determined under this subdivi-
25 sion is not an exact multiple of 1/10 of 1%, it shall be adjusted
26 to the next higher multiple of 1/10 of 1%.
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1 (5) The nonchargeable benefits component of employers'
2 contribution rates is the percentage arrived at by the following
3 calculations: (i) multiply the aggregate amount of all contrib-
4 uting employers' annual payrolls, for the 12 months ending March
5 31, as defined in section 18(f), by the cost criterion selected
6 for the computation date under section 18(e); (ii) subtract the
7 balance of the unemployment fund on the computation date, net of
8 federal advances, from the product determined under (i); and
9 (iii) if the remainder is zero or a negative quantity, the non-
10 chargeable benefits component of employers' contribution rates
11 shall be zero; but (iv) if the remainder is a positive quantity,
12 the nonchargeable benefits component of employers' contribution
13 rates shall be determined by dividing that remainder by the total
14 of wages subject to contributions under this act paid by all con-
15 tributing employers within the 12 months ending on March 31 and
16 adjusting the quotient, if not an exact multiple of 1/10 of 1%,
17 to the next higher multiple of 1/10 of 1%. The maximum non-
18 chargeable benefits component shall be 1%. However, for calendar
19 years after 1993, if there are no benefit charges against an
20 employer's account for the 60 months ending as of the computation
21 date, or for calendar years after 1995, if the employer's charge-
22 able benefits component is less than 2/10 of 1%, the maximum non-
23 chargeable benefit component shall not exceed 1/2 of 1%. For
24 calendar years after 1995, if there are no benefit charges
25 against an employer's account for the 72 months ending as of the
26 computation date, the maximum nonchargeable benefits component
27 shall not exceed 4/10 of 1%. For calendar years after 1996, if
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1 there are no benefit charges against an employer's account for
2 the 84 months ending as of the computation date, the maximum non-
3 chargeable benefits component shall not exceed 3/10 of 1%. For
4 calendar years after 1997, if there are no benefit charges
5 against an employer's account for the 96 months ending as of the
6 computation date, the maximum nonchargeable benefits component
7 shall not exceed 2/10 of 1%. For calendar years after 1998, if
8 there are no benefit charges against an employer's account for
9 the 108 months ending as of the computation date, the maximum
10 nonchargeable benefits component shall not exceed 1/10 of 1%.
11 FOR CALENDAR YEARS AFTER 2002, THE MAXIMUM NONCHARGEABLE BENEFITS
12 COMPONENT SHALL NOT EXCEED 1/10 OF 1% IF THERE ARE NO BENEFIT
13 CHARGES AGAINST AN EMPLOYER'S ACCOUNT FOR THE 60 MONTHS ENDING AS
14 OF THE COMPUTATION DATE; 9/100 OF 1% IF THERE ARE NO BENEFIT
15 CHARGES AGAINST AN EMPLOYER'S ACCOUNT FOR THE 72 MONTHS ENDING AS
16 OF THE COMPUTATION DATE; 8/100 OF 1% IF THERE ARE NO BENEFIT
17 CHARGES AGAINST AN EMPLOYER'S ACCOUNT FOR THE 84 MONTHS ENDING AS
18 OF THE COMPUTATION DATE; 7/100 OF 1% IF THERE ARE NO BENEFIT
19 CHARGES AGAINST AN EMPLOYER'S ACCOUNT FOR THE 96 MONTHS ENDING AS
20 OF THE COMPUTATION DATE; OR 6/100 OF 1% IF THERE ARE NO BENEFIT
21 CHARGES AGAINST AN EMPLOYER'S ACCOUNT FOR THE 108 MONTHS ENDING
22 AS OF THE COMPUTATION DATE. An employer with a positive balance
23 in its experience account on the June 30 computation date preced-
24 ing the calendar year shall receive for that calendar year a
25 credit in an amount equal to 1/2 of the extra federal unemploy-
26 ment tax paid in the preceding calendar year under section
27 3302(c)(2) of the federal unemployment tax act, 26 U.S.C.
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1 3302(c)(2) 3302, because of an
outstanding balance of unrepaid
2 advances from the federal government to the unemployment compen-
3 sation fund under section 1201 of TITLE XII OF the social secur-
4 ity act, 42 U.S.C. 1321. However, the credit for any calendar
5 year shall not exceed an amount determined by multiplying the
6 employer's nonchargeable benefit component for that calendar year
7 times the employer's taxable payroll for that year.
8 Contributions paid by an employer shall be credited to the
9 employer's experience account, in accordance with the provisions
10 of section 17(5), without regard to any credit given under this
11 subsection. The amount credited to an employer's experience
12 account shall be the amount of the employer's tax before deduc-
13 tion of the credit provided in this subsection.
14 (6) The total of the chargeable benefits and account build-
15 ing components of an employer's contribution rate shall not
16 exceed by more than 1% in the 1983 calendar year, 1.5% in the
17 calendar year 1984, or 2% in the 1985 calendar year the higher of
18 4% or the total of the chargeable benefits and the account build-
19 ing components which THAT applied
to the employer during the
20 preceding calendar year. For calendar years after 1985, the
21 total of the chargeable benefits and account building components
22 of the employer's contribution rate shall be computed without
23 regard to the foregoing limitation provided in this subdivision.
24 During a year in which this subdivision limits an employer's con-
25 tribution rate, the resulting reduction shall be considered to be
26 entirely in the experience component of the employer's
27 contribution rate, as defined in section 18(d).
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1 (7) Unless an employer's contribution rate is 1/10 of 1% for
2 calendar years beginning after December 31, 1995, the employer's
3 contribution rate shall be reduced by any of the following calcu-
4 lation methods that results in the lowest rate:
5 (i) The chargeable benefits component, the account building
6 component, and the nonchargeable benefits component of the con-
7 tribution rate calculated under this section shall each be
8 reduced by 10% and if the resulting quotient is not an exact
9 multiple of 1/10 of 1%, that quotient shall be increased to the
10 next higher multiple of 1/10 of 1%. The 3 components as
11 increased shall then be added together.
12 (ii) One-tenth of 1% shall be deducted from the contribution
13 rate.
14 (iii) The contribution rate shall be reduced by 10% and if
15 the resulting quotient is not an exact multiple of 1/10 of 1%,
16 that quotient shall be increased to the next higher multiple of
17 1/10 of 1%.
18 The contribution rate reduction described in this section
19 applies to employers who have been liable for the payment of con-
20 tributions in accordance with this act for more than 4 consecu-
21 tive years, if the balance of money in the unemployment compensa-
22 tion fund established under section 26, excluding money borrowed
23 from the federal unemployment trust fund, is equal to or greater
24 than 1.2% of the aggregate amount of all contributing employers'
25 payrolls for the 12-month period ending on the computation date.
26 If the employer's contribution rate is reduced by a 1/10 of 1%
27 deduction in accordance with this subdivision, the employer's
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1 contributions shall be credited to each of the components of the
2 contribution rate on a pro rata basis. As used in this
3 subdivision:
4 (i) "Federal unemployment trust fund" means the fund created
5 under section 904 of title IX of the social security act, 42
6 U.S.C. 1104.
7 (ii) "Payroll" means that term as defined in section 18(f).
8 (b) An employer previously liable for contributions under
9 this act which on or after January 1, 1978 filed a petition for
10 arrangement under the bankruptcy act of JULY 1, 1898, chapter
11 541, 30 Stat. 544, or on or after October 1, 1979 filed a peti-
12 tion for reorganization under title 11 of the United States
13 code, entitled bankruptcy, CODE, 11
U.S.C. 101 to 1330, pursu-
14 ant to which a plan of arrangement or reorganization for rehabil-
15 itation purposes has been confirmed by order of the United States
16 bankruptcy court, shall be considered as a reorganized employer
17 and shall have a reserve fund balance of zero as of the first
18 calendar year immediately following court confirmation of the
19 plan of arrangement or reorganization, but not earlier than the
20 calendar year beginning January 1, 1983, if the employer meets
21 each of the following requirements:
22 (1) An employer whose plan of arrangement or reorganization
23 has been confirmed as of January 1, 1983 shall, within 60 days
24 after January 1, 1983, notify the commission of its intention to
25 elect the status of a reorganized employer. An employer
which
26 THAT has not had a plan of arrangement or reorganization
27 confirmed as of January 1, 1983 shall, within 60 days after the
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1 entry by the bankruptcy court of the order of confirmation of the
2 plan of arrangement or reorganization, notify the commission of
3 its intention to elect the status of a reorganized employer. An
4 employer shall not make an election under this subdivision after
5 December 31, 1985.
6 (2) The employer has paid to the commission all contribu-
7 tions previously owed by the employer pursuant to this act for
8 all calendar years prior to the calendar year as to which the
9 employer elects to begin its status as a reorganized employer.
10 (3) More than 50% of the employer's total payroll is paid
11 for services rendered in this state during the employer's fiscal
12 year immediately preceding the date the employer notifies the
13 fund administrator of its intention to elect the status of a
14 reorganized employer.
15 (4) The employer, within 180 days after notifying the com-
16 mission of its intention to elect the status of a reorganized
17 employer, makes a cash payment to the commission, for the unem-
18 ployment compensation fund, equal to: .20 times the first
19 $2,000,000.00 of the employer's negative balance, .35 times the
20 amount of the employer's negative balance above $2,000,000.00 and
21 up to $5,000,000.00, and .50 times the amount of the negative
22 balance above $5,000,000.00. The total amount so
determined by
23 the commission shall be based on the employer's negative balance
24 existing as of the end of the calendar month immediately preced-
25 ing the calendar year in which the employer will begin its status
26 as a reorganized employer. If the employer fails to pay the
27 amount determined, within 180 days of electing status as a
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1 reorganized employer, the commission shall reinstate the
2 employer's negative balance previously reduced and redetermine
3 the employer's rate on the basis of such
THE reinstated nega-
4 tive balance. Such THE redetermined
rate shall then be used to
5 redetermine the employer's quarterly contributions for that cal-
6 endar year. Such THE redetermined
contributions shall be
7 subject to the interest provisions of section 15 as of the date
8 the redetermined quarterly contributions were originally due.
9 (5) Except as provided in subdivision (6), the employer con-
10 tribution rates for a reorganized employer beginning with the
11 first calendar year of the employer's status as a reorganized
12 employer shall be as follows:
13 _________________________________________________________________
14 Year of Contribution Contribution Rate
15 Liability
16 _________________________________________________________________
17
18 1 2.7% of total taxable wages paid
19 2 2.7%
20 3 2.7%
21 4 and over (chargeable benefits component based
22 upon 3-year experience) plus
23 (account building component based
24 upon 3-year experience) plus
25 (nonchargeable benefits component)
26 (6) To provide against the high risk of net loss to the fund
27 in such cases, any reorganized employer which
THAT employs in
28 "employment", not necessarily simultaneously but in any 1 week 25
29 or more individuals in the performance of 1 or more contracts or
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1 subcontracts for construction in the state of roads, bridges,
2 highways, sewers, water mains, utilities, public buildings, fac-
3 tories, housing developments, or similar major construction
4 projects, shall be liable beginning the first calendar year of
5 the employer's status as a reorganized employer for contribution
6 rates as follows:
7 _________________________________________________________________
8 Year of Contribution Contribution Rate
9 Liability
10 _________________________________________________________________
11 1 average construction contractor rate
12 as determined by the commission
13 2 average construction contractor rate
14 as determined by the commission
15 3 1/3 (chargeable benefits component)
16 + 2/3 average construction contrac-
17 tor rate as determined by the com-
18 mission
19 4 2/3 (chargeable benefits component)
20 + 1/3 average construction contrac-
21 tor rate as determined by the com-
22 mission
23 5 and over (chargeable benefits component) +
24 (account building component) +
25 (nonchargeable benefits component)
26 (c) Upon application by an employer to the commission for
27 designation as a distressed employer, the commission, within
28 60 days after receipt of the application, shall make a determina-
29 tion whether the employer meets the conditions set forth in this
30 subsection. Upon finding that the conditions are met, the com-
31 mission shall notify the legislature of the determination and
32 request legislative acquiescence in the determination. If the
33 legislature approves the determination by concurrent resolution,
34 the employer shall be considered to be a "distressed employer" as
35 of January 1 of the year in which the determination is made. The
36 commission shall notify the employer of such
THAT determination
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1 and notify the employer of its contribution rate as a distressed
2 employer and the contribution rate that would apply if the
3 employer was not a distressed employer. The distressed employer
4 shall determine its tax contribution using the 2 rates furnished
5 by the commission and shall pay its tax contribution based on the
6 lower of the 2 rates. If the determination of distressed
7 employer status is made during the calendar year, the employer
8 shall be entitled to a credit on future quarterly installments
9 for any excess contributions paid during that initial calendar
10 year. The employer shall notify the commission of the difference
11 between the amount paid and the amount which
THAT would have
12 been paid if the employer were not determined to be a distressed
13 employer and the difference will be owed to the unemployment com-
14 pensation fund, payable in accordance with this subsection.
15 Cumulative totals of the difference must be reported to the com-
16 mission with each return required to be filed. The commission
17 may periodically determine continued eligibility of an employer
18 under this subsection. When the commission makes a determination
19 that an employer no longer qualifies as a distressed employer,
20 the commission shall notify the employer of that determination.
21 After notice by the commission that the employer no longer quali-
22 fies as a distressed employer, the employer will be liable for
23 contributions, beginning with the first quarter occurring after
24 receipt of notification of disqualification, on the basis of the
25 rate that would apply if the employer was not a distressed
26 employer. The contribution rate for a distressed employer shall
27 be calculated under the law in effect for the 1982 calendar year
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1 except that the rate thus determined
shall be reduced by the
2 applicable solvency tax rate assessed against the employer under
3 section 19a. The taxable wage limit of such
A distressed
4 employer for the 1983, 1984, and 1985 calendar years shall be the
5 maximum amount of remuneration paid within a calendar year by
6 such an A DISTRESSED employer
subject to the federal unemploy-
7 ment tax act, 26 U.S.C. 3301 to 3311, to an individual with
8 respect to employment as defined in that act which is subject to
9 tax under that act during that year. Commencing with the fourth
10 quarter of 1986, the distressed employer will pay in 10 equal
11 annual installments the amount of the unpaid contributions owed
12 to the unemployment compensation fund due to the application of
13 this subsection, without interest. Each installment shall be
14 made with the fourth quarterly return for the respective year.
15 As used in this subsection, "distressed employer" means an
16 employer whose continued presence in this state is considered
17 essential to the state's economic well-being and who meets the
18 following criteria:
19 (1) The employer's average annual Michigan payroll in the 5
20 previous years exceeded $500,000,000.00.
21 (2) The employer's average quarterly number of employees in
22 Michigan in the 5 previous years exceeded 25,000.
23 (3) The employer's business income as defined in section 3
24 of Act No. 228 of the Public Acts of 1975, being
section 208.3
25 of the Michigan Compiled Laws THE
SINGLE BUSINESS TAX ACT, 1975
26 PA 228, MCL 208.3, has resulted in an aggregate loss of
27 $1,000,000,000.00 or more during the 5-year period ending in the
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1 second year prior to the year for which the application is being
2 made.
3 (4) The employer has received from the state of
Michigan
4 THIS STATE loans totaling $50,000,000.00 or more or loan guaran-
5 tees from the federal government in excess of $500,000,000.00,
6 either of which are still outstanding.
7 (5) Failure to give an employer designation as a distressed
8 employer would adversely impair the employer's ability to repay
9 the outstanding loans owed to the state of Michigan
or which
10 THIS STATE OR THAT are guaranteed by the federal government.
11 (d) An employer may at any time make payments to that
12 employer's experience account in the fund in excess of the
13 requirements of this section, but these payments, when accepted
14 by the commission, shall be irrevocable. A payment made by an
15 employer within 30 days after mailing to the employer by the com-
16 mission of a notice of the adjusted contribution rate of the
17 employer shall be credited to the employer's account as of the
18 computation date for which the adjusted contribution rate was
19 computed, and the employer's contribution rate shall be further
20 adjusted accordingly. However, a payment made more than 120 days
21 after the beginning of a calendar year shall not affect the
22 employer's contribution rate for that year.
23 Sec. 27. (a)(1) When a determination, redetermination, or
24 decision is made that benefits are due an unemployed individual,
25 the benefits shall immediately become
payable from the fund 1
26 WEEK FROM THE DATE OF THAT DETERMINATION, REDETERMINATION, OR
27 DECISION and continue to be payable to the unemployed individual,
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1 subject to the limitations imposed by the individual's monetary
2 entitlement, as long as IF the individual
continues to be unem-
3 ployed and to file claims for benefits, until the determination,
4 redetermination, or decision is reversed, a determination, rede-
5 termination, or decision on a new issue holding the individual
6 disqualified or ineligible is made, or, for benefit years begin-
7 ning before the conversion date prescribed in section 75, a new
8 separation issue arises resulting from subsequent work.
9 (2) Benefits shall be paid in person or by mail through
10 employment offices in accordance with rules promulgated by the
11 commission.
12 (b)(1) Subject to subsection (f), the weekly benefit rate
13 for an individual, with respect to benefit years beginning before
14 the conversion date prescribed in section 75, shall be 67% of the
15 individual's average after tax weekly wage, except that the
16 individual's maximum weekly benefit rate shall not exceed
17 $300.00. However, with respect to benefit years beginning after
18 the conversion date as prescribed in section 75, the individual's
19 weekly benefit rate shall be 4.1% of the individual's wages paid
20 in the calendar quarter of the base period in which the individ-
21 ual was paid the highest total wages, plus $6.00
NOT TO EXCEED
22 $315.00 FOR AN INDIVIDUAL WITH NO DEPENDENTS. AN INDIVIDUAL MAY
23 RECEIVE AN ADDITIONAL $20.00 for each dependent as defined in
24 subdivision (3), up to a maximum of 5 dependents, claimed by the
25 individual at the time the individual files a new claim for bene-
26 fits, except that the individual's maximum weekly benefit rate,
27 INCLUDING DEPENDENTS, shall not exceed $300.00
$415.00. With
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1 respect to benefit years beginning on or after October 2, 1983,
2 the weekly benefit rate shall be adjusted to the next lower
3 multiple of $1.00.
4 (2) For benefit years beginning before the conversion date
5 prescribed in section 75, the state average weekly wage for a
6 calendar year shall be computed on the basis of the 12 months
7 ending the June 30 immediately preceding that calendar year. The
8 commission shall prepare a table of weekly benefit rates based on
9 an "average after tax weekly wage" calculated by subtracting,
10 from an individual's average weekly wage as determined in accord-
11 ance with section 51, a reasonable approximation of the weekly
12 amount required to be withheld by the employer from the remunera-
13 tion of the individual based on dependents and exemptions for
14 income taxes under chapter 24 of subtitle C of the internal reve-
15 nue code of 1986, 26 U.S.C. 3401 to 3406, and under section 351
16 of the income tax act of 1967, Act No. 281 of the
Public Acts of
17 1967, being section 206.351 of the Michigan
Compiled Laws 1967
18 PA 281, MCL 206.351, and for old age and survivor's disability
19 insurance taxes under the federal insurance contributions act,
20 chapter 21 of subtitle C of the internal revenue code of 1986, 26
21 U.S.C. 3128. For purposes of applying the table to an
22 individual's claim, a dependent shall be as defined in
23 subdivision (3). The table applicable to an individual's claim
24 shall be the table reflecting the number of dependents claimed by
25 the individual under subdivision (3). The commission shall
26 adjust the tables based on changes in withholding schedules
27 published by the United States department of treasury, internal
06614'02
21
1 revenue service, and by the department of treasury. The number
2 of dependents allowed shall be determined with respect to each
3 week of unemployment for which an individual is claiming
4 benefits.
5 (3) For benefit years beginning before the conversion date
6 prescribed in section 75, a dependent means any of the following
7 persons who is receiving and for at least 90 consecutive days
8 immediately preceding the week for which benefits are claimed,
9 or, in the case of a dependent husband, wife, or child, for the
10 duration of the marital or parental relationship, if the rela-
11 tionship has existed less than 90 days, has received more than
12 half the cost of his or her support from the individual claiming
13 benefits:
14 (a) A child, including stepchild, adopted child, or grand-
15 child of the individual who is under 18 years of age, or 18 years
16 of age or over if, because of physical or mental infirmity, the
17 child is unable to engage in a gainful occupation, or is a
18 full-time student as defined by the particular educational insti-
19 tution, at a high school, vocational school, community or junior
20 college, or college or university and has not attained the age of
21 22.
22 (b) The husband or wife of the individual.
23 (c) The legal father or mother of the individual if that
24 parent is either more than 65 years of age or is permanently dis-
25 abled from engaging in a gainful occupation.
26 (d) A brother or sister of the individual if the brother or
27 sister is orphaned or the living parents are dependent parents of
06614'02
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1 an individual, and the brother or sister is under 18 years of
2 age, or 18 years of age or over if, because of physical or mental
3 infirmity, the brother or sister is unable to engage in a gainful
4 occupation, or is a full-time student as defined by the particu-
5 lar educational institution, at a high school, vocational school,
6 community or junior college, or college or university and is less
7 than 22 years of age.
8 (4) For benefit years beginning after the conversion date
9 prescribed in section 75, a dependent means any of the following
10 persons who received for at least 90 consecutive days immediately
11 preceding the first week of the benefit year or, in the case of a
12 dependent husband, wife, or child, for the duration of the mari-
13 tal or parental relationship if the relationship existed less
14 than 90 days before the beginning of the benefit year, has
15 received more than 1/2 the cost of his or her support from the
16 individual claiming the benefits:
17 (a) A child, including stepchild, adopted child, or grand-
18 child of the individual who is under 18 years of age, or 18 years
19 of age and over if, because of physical or mental infirmity, the
20 child is unable to engage in a gainful occupation, or is a
21 full-time student as defined by the particular educational insti-
22 tution, at a high school, vocational school, community or junior
23 college, or college or university and has not attained the age of
24 22.
25 (b) The husband or wife of the individual.
06614'02
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1 (c) The legal father or mother of the individual if that
2 parent is either more than 65 years of age or is permanently
3 disabled from engaging in a gainful occupation.
4 (d) A brother or sister of the individual if the brother or
5 sister is orphaned or the living parents are dependent parents of
6 an individual, and the brother or sister is under 18 years of
7 age, or 18 years of age and over if, because of physical or
8 mental infirmity, the brother or sister is unable to engage in a
9 gainful occupation, or is a full-time student as defined by the
10 particular educational institution, at a high school, vocational
11 school, community or junior college, or college or university and
12 is less than 22 years of age.
13 (5) For benefit years beginning before the conversion date
14 prescribed in section 75, dependency status of a dependent, child
15 or otherwise, once established or fixed in favor of an individual
16 continues during the individual's benefit year until terminated.
17 Dependency status of a dependent terminates at the end of the
18 week in which the dependent ceases to be an individual described
19 in subdivision (3)(a), (b), (c), or (d) because of age, death, or
20 divorce. For benefit years beginning after the conversion date
21 prescribed in section 75, the number of dependents established
22 for an individual at the beginning of the benefit year shall
23 remain in effect during the entire benefit year.
24 (6) For benefit years beginning before the conversion date
25 prescribed in section 75, failure on the part of an individual,
26 due to misinformation or lack of information, to furnish all
27 information material for determination of the number of the
06614'02
24
1 individual's dependents when the individual files a claim for
2 benefits with respect to a week shall be considered good cause
3 for the issuance of a redetermination as to the amount of bene-
4 fits based on the number of the individual's dependents as of the
5 beginning date of that week. Dependency status of a dependent,
6 child or otherwise, once established or fixed in favor of a
7 person is not transferable to or usable by another person with
8 respect to the same week.
9 For benefit years beginning after the conversion date as
10 prescribed in section 75, failure on the part of an individual,
11 due to misinformation or lack of information, to furnish all
12 information material for determination of the number of the
13 individual's dependents shall be considered good cause for the
14 issuance of a redetermination as to the amount of benefits based
15 on the number of the individual's dependents as of the beginning
16 of the benefit year.
17 (c) Subject to subsection (f), all of the following apply to
18 eligible individuals:
19 (1) Each eligible individual shall be paid a weekly benefit
20 rate with respect to the week for which
FOR EACH WEEK THAT the
21 individual earns or receives no remuneration, BEGINNING 1 WEEK
22 AFTER THE FIRST WEEK THAT THE INDIVIDUAL EARNS OR RECEIVES NO
23 REMUNERATION. Notwithstanding the definition of week
as
24 contained in section 50, if within 2
consecutive weeks in which
25 an individual was not unemployed within the meaning of section 48
26 there was a period of 7 or more consecutive days for which the
27 individual did not earn or receive remuneration, that period
06614'02
25
1 shall be considered a week for benefit purposes under this act if
2 a claim for benefits for that period is filed not later than 30
3 days subsequent to AFTER the end of
the period.
4 (2) Each eligible individual shall have his or her weekly
5 benefit rate reduced with respect to each week in which the indi-
6 vidual earns or receives remuneration at the rate of 50 cents for
7 each whole $1.00 of remuneration earned or received during that
8 week.
9 (3) An individual who receives or earns partial remuneration
10 may not receive a total of benefits and earnings that exceeds
11 1-1/2 times his or her weekly benefit amount. For each dollar of
12 total benefits and earnings that exceeds 1-1/2 times the
13 individual's weekly benefit amount, benefits shall be reduced by
14 $1.00.
15 (4) If the reduction in a claimant's benefit rate for a week
16 in accordance with subparagraph (2) or (3) results in a benefit
17 rate greater than zero for that week, the claimant's balance of
18 weeks of benefit payments will be reduced by 1 week.
19 (5) All remuneration for work performed during a shift that
20 terminates on 1 day but that began on the preceding day shall be
21 considered to have been earned by the eligible individual on the
22 preceding day.
23 (d) For benefit years beginning before the conversion date
24 prescribed in section 75, and subject to subsection (f) and this
25 subsection, the amount of benefits to which an individual who is
26 otherwise eligible is entitled during a benefit year from an
27 employer with respect to employment during the base period is the
06614'02
26
1 amount obtained by multiplying the weekly benefit rate with
2 respect to that employment by 3/4 of the number of credit weeks
3 earned in the employment. For the purpose of this subsection and
4 section 20(c), if the resultant product is not an even multiple
5 of 1/2 the weekly benefit rate, the product shall be raised to an
6 amount equal to the next higher multiple of 1/2 the weekly bene-
7 fit rate, and, for an individual who was employed by only 1
8 employer in the individual's base period and earned 34 credit
9 weeks with that employer, the product shall be raised to the next
10 higher multiple of the weekly benefit rate. The maximum amount
11 of benefits payable to an individual within a benefit year, with
12 respect to employment by an employer, shall not exceed 26 times
13 the weekly benefit rate with respect to that employment. The
14 maximum amount of benefits payable to an individual within a ben-
15 efit year shall not exceed the amount to which the individual
16 would be entitled for 26 weeks of unemployment in which remunera-
17 tion was not earned or received. The limitation of total bene-
18 fits set forth in this subsection does not apply to claimants
19 declared eligible for training benefits in accordance with sub-
20 section (g). For benefit years beginning after the conversion
21 date prescribed in section 75, and subject to subsection (f) and
22 this subsection, the maximum benefit amount payable to an indi-
23 vidual in a benefit year for purposes of this section and
24 section 20(c) is the number of weeks of benefits payable to an
25 individual during the benefit year, multiplied by the
26 individual's weekly benefit rate. The number of weeks of
27 benefits payable to an individual shall be calculated by taking
06614'02
27
1 40% of the individual's base period wages and dividing the result
2 by the individual's weekly benefit rate. If the quotient is not
3 a whole or half number, the result shall be rounded down to the
4 nearest half number. However, not more than 26 weeks of benefits
5 or less than 14 weeks of benefits shall be payable to an individ-
6 ual in a benefit year. The limitation of total benefits set
7 forth in this subsection shall not apply to claimants declared
8 eligible for training benefits in accordance with
9 subsection (g).
10 (e) When a claimant dies or is judicially declared insane or
11 mentally incompetent, unemployment compensation benefits accrued
12 and payable to that person for weeks of unemployment before
13 death, insanity, or incompetency, but not paid, shall become due
14 and payable to the person who is the legal heir or guardian of
15 the claimant or to any other person found by the commission to be
16 equitably entitled to the benefits by reason of having incurred
17 expense in behalf of the claimant for the claimant's burial or
18 other necessary expenses.
19 (f)(1) For benefit years beginning before the conversion
20 date prescribed in section 75, and notwithstanding any inconsis-
21 tent provisions of this act, the weekly benefit rate of each
22 individual who is receiving or will receive a "retirement
23 benefit", as defined in subdivision (4), shall be adjusted as
24 provided in subparagraphs (a), (b), and (c). However, an
25 individual's extended benefit account and an individual's weekly
26 extended benefit rate under section 64 shall be established
27 without reduction under this subsection unless subdivision (5) is
06614'02
28
1 in effect. Except as otherwise provided in this subsection, all
2 other provisions of this act continue to apply in connection with
3 the benefit claims of those retired persons.
4 (a) If and to the extent that unemployment benefits payable
5 under this act would be chargeable to an employer who has con-
6 tributed to the financing of a retirement plan under which the
7 claimant is receiving or will receive a retirement benefit yield-
8 ing a pro rata weekly amount equal to or larger than the
9 claimant's weekly benefit rate as otherwise established under
10 this act, the claimant shall not receive unemployment benefits
11 that would be chargeable to the employer under this act.
12 (b) If and to the extent that unemployment benefits payable
13 under this act would be chargeable to an employer who has con-
14 tributed to the financing of a retirement plan under which the
15 claimant is receiving or will receive a retirement benefit yield-
16 ing a pro rata weekly amount less than the claimant's weekly ben-
17 efit rate as otherwise established under this act, then the
18 weekly benefit rate otherwise payable to the claimant and charge-
19 able to the employer under this act shall be reduced by an amount
20 equal to the pro rata weekly amount, adjusted to the next lower
21 multiple of $1.00, which the claimant is receiving or will
22 receive as a retirement benefit.
23 (c) If the unemployment benefit payable under this act would
24 be chargeable to an employer who has not contributed to the
25 financing of a retirement plan under which the claimant is
26 receiving or will receive a retirement benefit, then the weekly
06614'02
29
1 benefit rate of the claimant as otherwise established under this
2 act shall not be reduced due to receipt of a retirement benefit.
3 (d) If the unemployment benefit payable under this act is
4 computed on the basis of multiemployer credit weeks and a portion
5 of the benefit is allocable under section 20(e) to an employer
6 who has contributed to the financing of a retirement plan under
7 which the claimant is receiving or will receive a retirement ben-
8 efit, the adjustments required by subparagraph (a) or (b) apply
9 only to that portion of the weekly benefit rate that would other-
10 wise be allocable and chargeable to the employer.
11 (2) If an individual's weekly benefit rate under this act
12 was established before the period for which the individual first
13 receives a retirement benefit, any benefits received after a
14 retirement benefit becomes payable shall be determined in accord-
15 ance with the formula stated in this subsection.
16 (3) When necessary to assure prompt payment of benefits, the
17 commission shall determine the pro rata weekly amount yielded by
18 an individual's retirement benefit based on the best information
19 currently available to it. In the absence of fraud, a determina-
20 tion shall not be reconsidered unless it is established that the
21 individual's actual retirement benefit in fact differs from the
22 amount determined by $2.00 or more per week. The reconsideration
23 shall apply only to benefits as may be claimed after the informa-
24 tion on which the reconsideration is based was received by the
25 commission.
06614'02
30
1 (4)(a) As used in this subdivision, "retirement benefit"
2 means a benefit, annuity, or pension of any type or that part
3 thereof that is described in subparagraph (b) that is:
4 (i) Provided as an incident of employment under an estab-
5 lished retirement plan, policy, or agreement, including federal
6 social security if subdivision (5) is in effect.
7 (ii) Payable to an individual because the individual has
8 qualified on the basis of attained age, length of service, or
9 disability, whether or not the individual retired or was retired
10 from employment. Amounts paid to individuals in the course of
11 liquidation of a private pension or retirement fund because of
12 termination of the business or of a plant or department of the
13 business of the employer involved shall not be considered to be
14 retirement benefits.
15 (b) If a benefit as described in subparagraph (a) is payable
16 or paid to the individual under a plan to which the individual
17 has contributed:
18 (i) Less than half of the cost of the benefit, then only
19 half of the benefit shall be treated as a retirement benefit.
20 (ii) Half or more of the cost of the benefit, then none of
21 the benefit shall be treated as a retirement benefit.
22 (c) The burden of establishing the extent of an individual's
23 contribution to the cost of his or her retirement benefit for the
24 purpose of subparagraph (b) is upon the employer who has contrib-
25 uted to the plan under which a benefit is provided.
26 (5) Notwithstanding any other provision of this subsection,
27 for any week that begins after March 31, 1980, and with respect
06614'02
31
1 to which an individual is receiving a governmental or other
2 pension and claiming unemployment compensation, the weekly bene-
3 fit amount payable to the individual for those weeks shall be
4 reduced, but not below zero, by the entire prorated weekly amount
5 of any governmental or other pension, retirement or retired pay,
6 annuity, or any other similar payment that is based on any previ-
7 ous work of the individual. This reduction shall be made only if
8 it is required as a condition for full tax credit against the tax
9 imposed by the federal unemployment tax act, chapter 23 of
10 subtitle C of the internal revenue code of 1986, 26 U.S.C. 3301
11 to 3311.
12 (6) For benefit years beginning after the conversion date
13 prescribed in section 75, notwithstanding any inconsistent provi-
14 sions of this act, the weekly benefit rate of each individual who
15 is receiving or will receive a retirement benefit, as defined in
16 subdivision (4), shall be adjusted as provided in
17 subparagraphs (a), (b), and (c). However, an individual's
18 extended benefit account and an individual's weekly extended ben-
19 efit rate under section 64 shall be established without reduction
20 under this subsection, unless subdivision (5) is in effect.
21 Except as otherwise provided in this subsection, all the other
22 provisions of this act shall continue to be applicable in connec-
23 tion with the benefit claims of those retired persons.
24 (a) If any base period or chargeable employer has contrib-
25 uted to the financing of a retirement plan under which the claim-
26 ant is receiving or will receive a retirement benefit yielding a
27 pro rata weekly amount equal to or larger than the claimant's
06614'02
32
1 weekly benefit rate as otherwise established under this act, the
2 claimant shall not receive unemployment benefits.
3 (b) If any base period employer or chargeable employer has
4 contributed to the financing of a retirement plan under which the
5 claimant is receiving or will receive a retirement benefit yield-
6 ing a pro rata weekly amount less than the claimant's weekly ben-
7 efit rate as otherwise established under this act, then the
8 weekly benefit rate otherwise payable to the claimant shall be
9 reduced by an amount equal to the pro rata weekly amount,
10 adjusted to the next lower multiple of $1.00, which the claimant
11 is receiving or will receive as a retirement benefit.
12 (c) If no base period or separating employer has contributed
13 to the financing of a retirement plan under which the claimant is
14 receiving or will receive a retirement benefit, then the weekly
15 benefit rate of the claimant as otherwise established under this
16 act shall not be reduced due to receipt of a retirement benefit.
17 (g) Notwithstanding any other provision of this act, an
18 individual pursuing vocational training or retraining pursuant to
19 section 28(2) who has exhausted all benefits available under sub-
20 section (d) may be paid for each week of approved vocational
21 training pursued beyond the date of exhaustion a benefit amount
22 in accordance with subsection (c), but not in excess of the
23 individual's most recent weekly benefit rate. However, an indi-
24 vidual shall not be paid training benefits totaling more than 18
25 times the individual's most recent weekly benefit rate. The
26 expiration or termination of a benefit year shall not stop or
27 interrupt payment of training benefits if the training for which
06614'02
33
1 the benefits were granted began before expiration or termination
2 of the benefit year.
3 (h) A payment of accrued unemployment benefits shall not be
4 made to an eligible individual or in behalf of that individual as
5 provided in subsection (e) more than 6 years after the ending
6 date of the benefit year covering the payment or 2 calendar years
7 after the calendar year in which there is final disposition of a
8 contested case, whichever is later.
9 (i) Benefits based on service in employment described in
10 section 42(8), (9), and (10) are payable in the same amount, on
11 the same terms, and subject to the same conditions as compensa-
12 tion payable on the basis of other service subject to this act,
13 except that:
14 (1) With respect to service performed in an instructional,
15 research, or principal administrative capacity for an institution
16 of higher education as defined in section 53(2), or for an educa-
17 tional institution other than an institution of higher education
18 as defined in section 53(3), benefits shall not be paid to an
19 individual based on those services for any week of unemployment
20 beginning after December 31, 1977 that commences during the
21 period between 2 successive academic years or during a similar
22 period between 2 regular terms, whether or not successive, or
23 during a period of paid sabbatical leave provided for in the
24 individual's contract, to an individual if the individual per-
25 forms the service in the first of the academic years or terms and
26 if there is a contract or a reasonable assurance that the
27 individual will perform service in an instructional, research, or
06614'02
34
1 principal administrative capacity for an institution of higher
2 education or an educational institution other than an institution
3 of higher education in the second of the academic years or terms,
4 whether or not the terms are successive.
5 (2) With respect to service performed in other than an
6 instructional, research, or principal administrative capacity for
7 an institution of higher education as defined in section 53(2) or
8 for an educational institution other than an institution of
9 higher education as defined in section 53(3), benefits shall not
10 be paid based on those services for any week of unemployment
11 beginning after December 31, 1977 that commences during the
12 period between 2 successive academic years or terms to any indi-
13 vidual if that individual performs the service in the first of
14 the academic years or terms and if there is a reasonable assur-
15 ance that the individual will perform the service for an institu-
16 tion of higher education or an educational institution other than
17 an institution of higher education in the second of the academic
18 years or terms.
19 (3) With respect to any service described in subdivision (1)
20 or (2), benefits shall not be paid to an individual based upon
21 service for any week of unemployment that commences during an
22 established and customary vacation period or holiday recess if
23 the individual performs the service in the period immediately
24 before the vacation period or holiday recess and there is a con-
25 tract or reasonable assurance that the individual will perform
26 the service in the period immediately following the vacation
27 period or holiday recess.
06614'02
35
1 (4) If benefits are denied to an individual for any week
2 solely as a result of subdivision (2) and the individual was not
3 offered an opportunity to perform in the second academic year or
4 term the service for which reasonable assurance had been given,
5 the individual is entitled to a retroactive payment of benefits
6 for each week for which the individual had previously filed a
7 timely claim for benefits. An individual entitled to benefits
8 under this subdivision may apply for those benefits by mail in
9 accordance with R 421.210 as promulgated by the commission.
10 (5) The amendments to subdivision (2) made by
Act No. 219
11 of the Public Acts of 1983 apply to all claims for
unemployment
12 compensation that are filed on and after October 31,
1983.
13 However, the amendments are retroactive to
September 5, 1982 only
14 if, as a condition for full tax credit against the tax
imposed by
15 the federal unemployment tax act, chapter 23 of
subtitle C of the
16 internal revenue code of 1986, 26 U.S.C. 3301 to
3311, the United
17 States secretary of labor determines that
retroactivity is
18 required by federal law.
19 (5) (6) Notwithstanding subdivision (2), on and
after April
20 1, 1984 benefits BENEFITS based
upon services in other than an
21 instructional, research, or principal administrative capacity for
22 an institution of higher education shall not be denied for any
23 week of unemployment commencing during the period between 2 suc-
24 cessive academic years or terms solely because the individual had
25 performed the service in the first of the academic years or terms
26 and there is reasonable assurance that the individual will
27 perform the service for an institution of higher education or an
06614'02
36
1 educational institution other than an institution of higher
2 education in the second of the academic years or terms, unless a
3 denial is required as a condition for full tax credit against the
4 tax imposed by the federal unemployment tax act, chapter 23 of
5 subtitle C of the internal revenue code of 1986, 26 U.S.C. 3301
6 to 3311.
7 (6) (7) For benefit years established
before the conver-
8 sion date prescribed in section 75, and notwithstanding subdivi-
9 sions (1), (2), and (3), the denial of benefits does not prevent
10 an individual from completing requalifying weeks in accordance
11 with section 29(3) nor does the denial prevent an individual from
12 receiving benefits based on service with an employer other than
13 an educational institution for any week of unemployment occurring
14 between academic years or terms, whether or not successive, or
15 during an established and customary vacation period or holiday
16 recess, even though the employer is not the most recent charge-
17 able employer in the individual's base period. However, in that
18 case section 20(b) applies to the sequence of benefit charging,
19 except for the employment with the educational institution, and
20 section 50(b) applies to the calculation of credit weeks. When a
21 denial of benefits under subdivision (1) no longer applies, bene-
22 fits shall be charged in accordance with the normal sequence of
23 charging as provided in section 20(b).
24 (7) (8) For benefit years beginning
after the conversion
25 date prescribed in section 75, and notwithstanding subdivisions
26 (1), (2), and (3), the denial of benefits shall not prevent an
27 individual from completing requalifying weeks in accordance with
06614'02
37
1 section 29(3) nor shall the denial prevent an individual from
2 receiving benefits based on service with another base period
3 employer other than an educational institution for any week of
4 unemployment occurring between academic years or terms, whether
5 or not successive, or during an established and customary vaca-
6 tion period or holiday recess. However, when benefits are paid
7 based on service with 1 or more base period employers other than
8 an educational institution, the individual's weekly benefit rate
9 shall be calculated in accordance with subsection (b)(1) but
10 during the denial period the individual's weekly benefit payment
11 shall be reduced by the portion of the payment attributable to
12 base period wages paid by an educational institution and the
13 account or experience account of the educational institution
14 shall not be charged for benefits payable to the individual.
15 When a denial of benefits under subdivision (1) is no longer
16 applicable, benefits shall be paid and charged on the basis of
17 base period wages with each of the base period employers includ-
18 ing the educational institution.
19 (8) (9) For the purposes of this
subsection, "academic
20 year" means that period, as defined by the educational institu-
21 tion, when classes are in session for that length of time
22 required for students to receive sufficient instruction or earn
23 sufficient credit to complete academic requirements for a partic-
24 ular grade level or to complete instruction in a noncredit
25 course.
26 (9) (10) Benefits IN
ACCORDANCE WITH SUBDIVISIONS (1),
27 (2), AND (3), BENEFITS FOR ANY WEEK OF UNEMPLOYMENT shall be
06614'02
38
1 denied , as provided in subdivisions (1), (2), and (3),
for any
2 week of unemployment beginning on and after April
1, 1984, to an
3 individual who performed those
services DESCRIBED IN
4 SUBDIVISION (1), (2), OR (3) in an educational institution while
5 in the employ of an educational service agency. For the purpose
6 of this subdivision, "educational service agency" means a govern-
7 mental agency or governmental entity that is established and
8 operated exclusively for the purpose of providing the services to
9 1 or more educational institutions.
10 (j) For weeks of unemployment beginning after
December 31,
11 1977, benefits BENEFITS shall not be
paid to an individual on
12 the basis of any base period services, substantially all of which
13 consist of participating in sports or athletic events or training
14 or preparing to so participate, for a
week that commences
15 during the period between 2 successive sport seasons or similar
16 periods if the individual performed the services in the first of
17 the seasons or similar periods and there is a reasonable assur-
18 ance that the individual will perform the services in the later
19 of the seasons or similar periods.
20 (k)(1) For weeks of unemployment beginning
after
21 December 31, 1977, benefits
BENEFITS shall not be payable on the
22 basis of services performed by an alien unless the alien is an
23 individual who was lawfully admitted for permanent residence at
24 the time the services were performed, was lawfully present for
25 the purpose of performing the services, or was permanently resid-
26 ing in the United States under color of law at the time the
27 services were performed, including an alien who was lawfully
06614'02
39
1 present in the United States under section 203(a)(7)
or section
2 212(d)(5) of the immigration and nationality act, CHAPTER 477, 66
3 STAT. 182, 8 U.S.C. 1153 and
1182.
4 (2) Any data or information required of individuals applying
5 for benefits to determine whether benefits are payable because of
6 their alien status are uniformly required from all applicants for
7 benefits.
8 (3) Where an individual whose application for benefits would
9 otherwise be approved, a determination that benefits to that
10 individual are not payable because of the individual's alien
11 status shall not be made except upon a preponderance of the
12 evidence.
13 (m)(1) An individual filing a new claim for unemployment
14 compensation under this act, after September 30,
1982, at the
15 time of filing the claim, shall disclose whether the individual
16 owes child support obligations as defined in this subsection. If
17 an individual discloses that he or she owes child support obliga-
18 tions and is determined to be eligible for unemployment compensa-
19 tion, the commission shall notify the state or local child sup-
20 port enforcement agency enforcing the obligation that the indi-
21 vidual has been determined to be eligible for unemployment
22 compensation.
23 (2) Notwithstanding section 30, the commission shall deduct
24 and withhold from any unemployment compensation payable to an
25 individual who owes child support obligations by using whichever
26 of the following methods results in the greatest amount:
06614'02
40
1 (a) The amount, if any, specified by the individual to be
2 deducted and withheld under this subdivision.
3 (b) The amount, if any, determined pursuant to an agreement
4 submitted to the commission under section 454(19)(B)(i) of part D
5 of title IV of the social security act, chapter 531,
49
6 Stat. 620, 42 U.S.C. 654, by the state
or local child support
7 enforcement agency.
8 (c) Any amount otherwise required to be so
deducted and
9 withheld from unemployment compensation pursuant to legal pro-
10 cess, as that term is defined in section 462(e) of part D of
11 title IV of the social security act, chapter 531, 49
Stat. 620,
12 42 U.S.C. 662, properly served upon the commission.
13 (3) The amount of unemployment compensation subject to
14 deduction under subdivision (2) is that portion that remains pay-
15 able to the individual after application of the recoupment provi-
16 sions of section 62(a) and the reduction provisions of
17 subsections (c) and (f).
18 (4) Any amount deducted and withheld under subdivision (2)
19 shall be paid by the commission to the appropriate state or local
20 child support enforcement agency.
21 (5) Any amount deducted and withheld under subdivision (2)
22 shall be treated for all purposes as if it were paid to the indi-
23 vidual as unemployment compensation and paid by the individual to
24 the state or local child support enforcement agency in satisfac-
25 tion of the individual's child support obligations.
26 (6) This subsection applies only if the state or local child
27 support enforcement agency agrees in writing to reimburse and
06614'02
41
1 does reimburse the commission for the administrative costs
2 incurred by the commission under this subsection that are attrib-
3 utable to child support obligations being enforced by the state
4 or local child support enforcement agency. The administrative
5 costs incurred shall be determined by the commission. The com-
6 mission, in its discretion, may require payment of administrative
7 costs in advance.
8 (7) As used in this subsection:
9 (a) "Unemployment compensation", for purposes of
10 subdivisions (1) through (5), means any compensation payable
11 under this act, including amounts payable by the commission pur-
12 suant to an agreement under any federal law providing for compen-
13 sation, assistance, or allowances with respect to unemployment.
14 (b) "Child support obligations" includes only obligations
15 that are being enforced pursuant to a plan described in
16 section 454 of part D of title IV of the social security act,
17 chapter 531, 49 Stat. 620, 42 U.S.C.
654, that has been
18 approved by the secretary of health and human services under
19 part D of title IV of the social security act, chapter 531, 49
20 Stat. 620, 42 U.S.C. 651 to 669 655,
656 TO 660, AND 663 TO
21 669b.
22 (c) "State or local child support enforcement agency" means
23 any agency of this state or a political subdivision of this state
24 operating pursuant to a plan described in subparagraph (b).
25 (n) Subsection (i)(2) applies to services performed by
26 school bus drivers employed by a private contributing employer
27 holding a contractual relationship with an educational
06614'02
42
1 institution, but only if at least 75% of the individual's base
2 period wages with that employer are attributable to services per-
3 formed as a school bus driver.
4 (o)(1) For weeks of unemployment beginning after July 1,
5 1996, unemployment benefits based on services by a seasonal
6 worker performed in seasonal employment shall be payable only for
7 weeks of unemployment that occur during the normal seasonal work
8 period. Benefits shall not be paid based on services performed
9 in seasonal employment for any week of unemployment beginning
10 after the effective date of this subdivision
MARCH 28, 1996
11 that begins during the period between 2 successive normal sea-
12 sonal work periods to any individual if that individual performs
13 the service in the first of the normal seasonal work periods and
14 if there is a reasonable assurance that the individual will per-
15 form the service for a seasonal employer in the second of the
16 normal seasonal work periods. If benefits are denied to an indi-
17 vidual for any week solely as a result of this subsection and the
18 individual is not offered an opportunity to perform in the second
19 normal seasonal work period for which reasonable assurance of
20 employment had been given, the individual is entitled to a retro-
21 active payment of benefits under this subsection for each week
22 that the individual previously filed a timely claim for
23 benefits. An individual may apply for any retroactive benefits
24 under this subsection in accordance with R 421.210 of the
25 Michigan administrative code.
26 (2) Not less than 20 days before the estimated beginning
27 date of a normal seasonal work period, an employer may apply to
06614'02
43
1 the commission in writing for designation as a seasonal
2 employer. At the time of application, the employer shall con-
3 spicuously display a copy of the application on the employer's
4 premises. Within 90 days after receipt of the application, the
5 commission shall determine if the employer is a seasonal
6 employer. A determination or redetermination of the commission
7 concerning the status of an employer as a seasonal employer, or a
8 decision of a referee or the board of review, or of the courts of
9 this state concerning the status of an employer as a seasonal
10 employer, which has become final, together with the record there-
11 of, may be introduced in any proceeding involving a claim for
12 benefits, and the facts found and decision issued in the determi-
13 nation, redetermination, or decision shall be conclusive unless
14 substantial evidence to the contrary is introduced by or on
15 behalf of the claimant.
16 (3) If the employer is determined to be a seasonal employer,
17 the employer shall conspicuously display on its premises a notice
18 of the determination and the beginning and ending dates of the
19 employer's normal seasonal work periods. The notice shall be
20 furnished by the commission. The notice shall additionally spec-
21 ify that an employee must timely apply for unemployment benefits
22 at the end of a first seasonal work period to preserve his or her
23 right to receive retroactive unemployment benefits in the event
24 that he or she is not reemployed by the seasonal employer in the
25 second of the normal seasonal work periods.
26 (4) The commission may issue a determination terminating an
27 employer's status as a seasonal employer on the commission's own
06614'02
44
1 motion for good cause, or upon the written request of the
2 employer. A termination determination under this subdivision
3 terminates an employer's status as a seasonal employer, and shall
4 become effective on the beginning date of the normal seasonal
5 work period that would have immediately followed the date the
6 commission issues the determination. A determination under this
7 subdivision is subject to review in the same manner and to the
8 same extent as any other determination under this act.
9 (5) An employer whose status as a seasonal employer is ter-
10 minated under subdivision (4) may not reapply for a seasonal
11 employer status determination until after a regularly recurring
12 normal seasonal work period has begun and ended.
13 (6) If a seasonal employer informs an employee who received
14 assurance of being rehired that, despite the assurance, the
15 employee will not be rehired at the beginning of the employer's
16 next normal seasonal work period, this subsection shall not pre-
17 vent the employee from receiving unemployment benefits in the
18 same manner and to the same extent he or she would receive bene-
19 fits under this act from an employer who has not been determined
20 to be a seasonal employer.
21 (7) A successor of a seasonal employer is considered to be a
22 seasonal employer unless the successor provides the commission,
23 within 120 days after the transfer, with a written request for
24 termination of its status as a seasonal employer in accordance
25 with subdivision (4).
26 (8) At the time an employee is hired by a seasonal employer,
27 the employer shall notify the employee in writing whether the
06614'02
45
1 employee will be a seasonal worker. The employer shall provide
2 the worker with written notice of any subsequent change in the
3 employee's status as a seasonal worker. If an employee of a sea-
4 sonal employer is denied benefits because that employee is a sea-
5 sonal worker, the employee may contest that designation in
6 accordance with section 32a.
7 (9) As used in this subsection:
8 (a) "Construction industry" means the work activity desig-
9 nated in major groups 15, 16, and 17 of the standard
industrial
10 classification manual, United States office of
management and
11 budget, 1987 edition SECTOR
GROUP 23 -- CONSTRUCTION OF THE
12 NORTH AMERICAN CLASSIFICATION SYSTEM -- UNITED STATES OFFICE OF
13 MANAGEMENT AND BUDGET, 1997 EDITION.
14 (b) "Normal seasonal work period" means that period or those
15 periods of time determined pursuant to rules promulgated by the
16 commission during which an individual is employed in seasonal
17 employment.
18 (c) "Seasonal employment" means the employment of 1 or more
19 individuals primarily hired to perform services in an industry,
20 other than the construction industry, that does either of the
21 following:
22 (1) Customarily operates during regularly recurring periods
23 of 26 weeks or less in any 52-consecutive-week period.
24 (2) Customarily employs at least 50% of its employees for
25 regularly recurring periods of 26 weeks or less within a period
26 of 52 consecutive weeks.
06614'02
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1 (d) "Seasonal employer" means an employer, other than an
2 employer in the construction industry, who applies to the
3 commission for designation as a seasonal employer and who the
4 commission determines to be an employer whose operations and
5 business are substantially engaged in seasonal employment.
6 (e) "Seasonal worker" means a worker who has been paid wages
7 by a seasonal employer for work performed only during the normal
8 seasonal work period.
9 (10) If this subsection is found by the United States
10 department of labor to be contrary to the federal unemployment
11 tax act, chapter 23 of the internal revenue code of 1986, 26
12 U.S.C. 3301 to 3311, or the social security act, chapter 531, 49
13 Stat. 620, and if conformity with the federal law is required as
14 a condition for full tax credit against the tax imposed under the
15 federal unemployment tax act or as a condition for receipt by the
16 commission of federal administrative grant funds under the social
17 security act, this subsection shall be invalid.
18 (p) Benefits shall not be paid to an individual based upon
19 his or her services as a school crossing guard for any week of
20 unemployment that begins between 2 successive academic years or
21 terms, if that individual performs the services of a school
22 crossing guard in the first of the academic years or terms and
23 has a reasonable assurance that he or she will perform those
24 services in the second of the academic years or terms.
25 Sec. 29. (1) An individual is disqualified from receiving
26 benefits if he or she:
06614'02
47
1 (a) Left work voluntarily without good cause attributable to
2 the employer or employing unit. However, if the individual has
3 an established benefit year in effect and during that benefit
4 year leaves unsuitable work within 60 days after the beginning of
5 that work, the leaving does not disqualify the individual.
6 (b) Was discharged for misconduct connected with the
7 individual's work or for intoxication while at work unless the
8 discharge was subsequently reduced to a disciplinary layoff or
9 suspension.
10 (c) Failed without good cause to apply for available suit-
11 able work after receiving from the employment office or the com-
12 mission notice of the availability of that work.
13 (d) Failed without good cause while unemployed to report to
14 the individual's former employer or employing unit within a rea-
15 sonable time after that employer or employing unit provided
16 notice of the availability of an interview concerning available
17 suitable work with the former employer or employing unit.
18 (e) Failed without good cause to accept suitable work
19 offered to the individual or to return to the individual's cus-
20 tomary self-employment, if any, when directed by the employment
21 office or the commission.
22 (f) Lost his or her job due to absence from work resulting
23 from a violation of law for which the individual was convicted
24 and sentenced to jail or prison. This subdivision does not apply
25 if conviction of an individual results in a sentence to county
26 jail under conditions of day parole as provided in
Act No. 60 of
27 the Public Acts of 1962, being sections 801.251 to
801.258 of the
06614'02
48
1 Michigan Compiled Laws 1962 PA 60,
MCL 801.251 TO 801.258, or if
2 the conviction was for a traffic violation that resulted in an
3 absence of less than 10 consecutive work days from the
4 individual's place of employment.
5 (g) Is discharged, whether or not the discharge is subse-
6 quently reduced to a disciplinary layoff or suspension, for par-
7 ticipation in either of the following:
8 (i) A strike or other concerted action in violation of an
9 applicable collective bargaining agreement that results in cur-
10 tailment of work or restriction of or interference with
11 production.
12 (ii) A wildcat strike or other concerted action not autho-
13 rized by the individual's recognized bargaining representative.
14 (h) Was discharged for an act of assault and battery con-
15 nected with the individual's work.
16 (i) Was discharged for theft connected with the individual's
17 work.
18 (j) Was discharged for willful destruction of property con-
19 nected with the individual's work.
20 (k) Committed a theft after receiving notice of a layoff or
21 discharge, but before the effective date of the layoff or dis-
22 charge, resulting in loss or damage to the employer who would
23 otherwise be chargeable for the benefits, regardless of whether
24 the individual qualified for the benefits before the theft.
25 (l) Was employed by a temporary help firm, which as used in
26 this section means an employer whose primary business is to
27 provide a client with the temporary services of 1 or more
06614'02
49
1 individuals under contract with the employer, to perform services
2 for a client of that firm if each of the following conditions is
3 met:
4 (i) The temporary help firm provided the employee with a
5 written notice before the employee began performing services for
6 the client stating in substance both of the following:
7 (A) That within 7 days after completing services for a
8 client of the temporary help firm, the employee is under a duty
9 to notify the temporary help firm of the completion of those
10 services.
11 (B) That a failure to provide the temporary help firm with
12 notice of the employee's completion of services pursuant to
13 sub-subparagraph (A) constitutes a voluntary quit that will
14 affect the employee's eligibility for unemployment compensation
15 should the employee seek unemployment compensation following com-
16 pletion of those services.
17 (ii) The employee did not provide the temporary help firm
18 with notice that the employee had completed his or her services
19 for the client within 7 days after completion of his or her serv-
20 ices for the client.
21 (m) Was discharged for (i) Illegally ingesting, injecting,
22 inhaling, or possessing a controlled substance on the premises of
23 the employer, (ii) Refusing to submit to a drug test that was
24 required to be administered in a nondiscriminatory manner, or
25 (iii) Testing positive on a drug test, if the test was adminis-
26 tered in a nondiscriminatory manner. If the worker disputes the
27 result of the testing, a generally accepted confirmatory test
06614'02
50
1 shall be administered and shall also indicate a positive result
2 for the presence of a controlled substance before a disqualifica-
3 tion of the worker under this subdivision. As used in this
4 subdivision:
5 (A) "Controlled substance" means that term as defined in
6 section 7104 of the public health code, Act No. 368
of the
7 Public Acts of 1978, being section 333.7104 of the
Michigan
8 Compiled Laws 1978 PA 368, MCL
333.7104.
9 (B) "Drug test" means a test designed to detect the illegal
10 use of a controlled substance.
11 (C) "Nondiscriminatory manner" means administered impar-
12 tially and objectively in accordance with a collective bargaining
13 agreement, rule, policy, a verbal or written notice, or a
14 labor-management contract.
15 (n) Has an income exceeding $100,000.00 for the calendar
16 year in which he or she applies for benefits. This subdivision
17 shall not take effect unless both of the following occur:
18 (i) Within 30 days of the effective date of the act
that
19 added subdivision (l) AFTER MARCH 26,
1996, the governor
20 requests from the United States department of labor a determina-
21 tion confirming whether this subdivision is in conformity with
22 the federal unemployment tax act, chapter 23 ,
of SUBTITLE C OF
23 the internal revenue code of 1986, 26 U.S.C. 3301 to 3311, and
24 the social security act, CHAPTER 531, 49 Stat. 620, and whether
25 conformity with those federal acts is a condition for a full tax
26 credit against the tax imposed under the federal unemployment tax
27 act, (FUTA) CHAPTER 23 OF
SUBTITLE C OF THE INTERNAL
REVENUE
06614'02
51
1 CODE OF 1986, 26 U.S.C. 3301 TO 3311, or is a condition for state
2 receipt of federal administrative grant funds under the social
3 security act, CHAPTER 531, 49 STAT. 620.
4 (ii) The United States department of labor determines that
5 this subdivision is in conformity with the acts described in sub-
6 paragraph (i), or verifies that conformity with those federal
7 acts is not a condition for a tax credit or a grant described in
8 subparagraph (i).
9 (2) A disqualification under subsection (1) begins the week
10 in which the act or discharge that caused the disqualification
11 occurs and continues until the disqualified individual requali-
12 fies under subsection (3), except that for benefit years begin-
13 ning before the conversion date prescribed in section 75, the
14 disqualification does not prevent the payment of benefits if
15 there are credit weeks, other than multiemployer credit weeks,
16 after the most recent disqualifying act or discharge.
17 (3) After the week in which the disqualifying act or dis-
18 charge described in subsection (1) occurs, an individual who
19 seeks to requalify for benefits is subject to all of the
20 following:
21 (a) For benefit years established before the conversion date
22 described in section 75, the individual shall complete 6 requali-
23 fying weeks if he or she was disqualified under
24 subsection (1)(c), (d), (e), (f), (g), or (l), or 13 requalifying
25 weeks if he or she was disqualified under subsection (1)(h), (i),
26 (j), (k), or (m). A requalifying week required under this
06614'02
52
1 subsection shall be each week in which the individual does any of
2 the following:
3 (i) Earns or receives remuneration in an amount at least
4 equal to an amount needed to earn a credit week, as that term is
5 defined in section 50.
6 (ii) Otherwise meets all of the requirements of this act to
7 receive a benefit payment if the individual were not disqualified
8 under subsection (1).
9 (iii) Receives a benefit payment based on credit weeks sub-
10 sequent to the disqualifying act or discharge.
11 (b) For benefit years established before the conversion date
12 prescribed in section 75, if the individual is disqualified under
13 subsection (1)(a) or (b), he or she shall requalify, after the
14 week in which the disqualifying discharge occurred by earning in
15 employment for an employer liable under this act or the unemploy-
16 ment compensation act of another state an amount equal to, or in
17 excess of, 7 times the individual's potential weekly benefit
18 rate, calculated on the basis of employment with the employer
19 involved in the disqualification, or by earning in employment for
20 an employer liable under this act or the unemployment compensa-
21 tion act of another state an amount equal to, or in excess of, 40
22 times the state minimum hourly wage times 7, whichever is the
23 lesser amount.
24 (c) For benefit years established before the conversion date
25 prescribed in section 75, a benefit payable to an individual dis-
26 qualified under subsection (1)(a) or (b), shall be charged to the
27 nonchargeable benefits account, and not to the account of the
06614'02
53
1 employer with whom the individual was involved in the
2 disqualification.
3 (d) For benefit years beginning after the conversion date
4 prescribed in section 75, subsequent to the week in which the
5 disqualifying act or discharge occurred, an individual shall com-
6 plete 6 13 requalifying weeks if he or
she was disqualified
7 under subsection (1)(c), (d), (e), (f), (g), or (l), or 13 26
8 requalifying weeks if he or she was disqualified under
9 subsection (1)(h), (i), (j), (k), or (m). A requalifying week
10 required under this subsection shall be each week in which the
11 individual does any of the following:
12 (i) Earns or receives remuneration in an amount equal to at
13 least 1/13 of the minimum amount needed in a calendar quarter of
14 the base period for an individual to qualify for benefits,
15 rounded down to the nearest whole dollar.
16 (ii) Otherwise meets all of the requirements of this act to
17 receive a benefit payment if the individual were not disqualified
18 under subsection (1).
19 (e) For benefit years beginning after the conversion date
20 prescribed in section 75, if the individual is disqualified under
21 subsection (1)(a) or (b), he or she shall requalify, after the
22 week in which the disqualifying act or discharge occurred by
23 earning in employment for an employer liable under this act or
24 the unemployment compensation law of another state at least
the
25 lesser of the following: (i) Seven 17 times the
individual's
26 weekly benefit rate.
06614'02
54
1 (ii) Forty times the state minimum hourly
wage times 7.
2 (f) A benefit payable to the individual disqualified or
3 separated under disqualifying circumstances under
4 subsection (1)(a) or (b), shall be charged to the nonchargeable
5 benefits account, and not to the account of the employer with
6 whom the individual was involved in the separation. Benefits
7 payable to an individual determined by the commission to be sepa-
8 rated under disqualifying circumstances shall not be charged to
9 the account of the employer involved in the disqualification for
10 any period after the employer notifies the commission of the
11 claimant's possible ineligibility or disqualification. If a dis-
12 qualifying act or discharge occurs during the individual's bene-
13 fit year, any benefits that may become payable to the individual
14 in a later benefit year based on employment with the employer
15 involved in the disqualification shall be charged to the non-
16 chargeable benefits account.
17 (4) The maximum amount of benefits otherwise available under
18 section 27(d) to an individual disqualified under subsection (1)
19 is subject to all of the following conditions:
20 (a) For benefit years established before the conversion date
21 prescribed in section 75, if the individual is disqualified under
22 subsection (1)(c), (d), (e), (f), (g), or (l) and the maximum
23 amount of benefits is based on wages and credit weeks earned from
24 an employer before an act or discharge involving that employer,
25 the amount shall be reduced by an amount equal to the
26 individual's weekly benefit rate as to that employer multiplied
27 by the lesser of either of the following:
06614'02
55
1 (i) The number of requalifying weeks required of the
2 individual under this section.
3 (ii) The number of weeks of benefit entitlement remaining
4 with that employer.
5 (b) If the individual has insufficient or no potential bene-
6 fit entitlement remaining with the employer involved in the dis-
7 qualification in the benefit year in existence on the date of the
8 disqualifying determination, a reduction of benefits described in
9 this subsection shall apply in a succeeding benefit year with
10 respect to any benefit entitlement based upon credit weeks earned
11 with the employer before the disqualifying act or discharge.
12 (c) For benefit years established before the conversion date
13 prescribed in section 75, an individual disqualified under sub-
14 section (1)(h), (i), (j), (k), or (m) is not entitled to benefits
15 based on wages and credit weeks earned before the disqualifying
16 act or discharge with the employer involved in the
17 disqualification.
18 (d) The benefit entitlement of an individual disqualified
19 under subsection (1)(a) or (b) is not subject to reduction as a
20 result of that disqualification.
21 (e) A denial or reduction of benefits under this subsection
22 does not apply to benefits based upon multiemployer credit
23 weeks.
24 (f) For benefit years established after the conversion date
25 prescribed in section 75, if the individual is disqualified under
26 subsection (1)(c), (d), (e), (f), (g), or (l), the maximum number
27 of weeks otherwise applicable in calculating benefits for the
06614'02
56
1 individual under section 27(d) shall be reduced by the lesser of
2 the following:
3 (i) The number of requalifying weeks required of the indi-
4 vidual under this subsection.
5 (ii) The number of weeks of benefit entitlement remaining on
6 the claim.
7 (g) For benefit years beginning after the conversion date
8 prescribed in section 75, the benefits of an individual disquali-
9 fied under subsection (1)(h), (i), (j), (k), or (m) shall be
10 reduced by 13 weeks and any weekly benefit payments made to the
11 claimant thereafter shall be reduced by the portion of the pay-
12 ment attributable to base period wages paid by the base period
13 employer involved in a disqualification under subsection (1)(h),
14 (i), (j), (k), or (m).
15 (5) If an individual leaves work to accept permanent
16 full-time work with another employer and performs services for
17 that employer, or if an individual leaves work to accept a recall
18 from a former employer:
19 (a) Subsection (1) does not apply.
20 (b) Wages earned with the employer whom the individual last
21 left, including wages previously transferred under this subsec-
22 tion to the last employer, for the purpose of computing and
23 charging benefits, are wages earned from the employer with whom
24 the individual accepted work or recall, and benefits paid based
25 upon those wages shall be charged to that employer.
26 (c) When issuing a determination covering the period of
27 employment with a new or former employer described in this
06614'02
57
1 subsection, the commission shall advise the chargeable employer
2 of the name and address of the other employer, the period covered
3 by the employment, and the extent of the benefits that may be
4 charged to the account of the chargeable employer.
5 (6) In determining whether work is suitable for an individu-
6 al, the commission shall consider the degree of risk involved to
7 the individual's health, safety, and morals, the individual's
8 physical fitness and prior training, the individual's length of
9 unemployment and prospects for securing local work in the
10 individual's customary occupation, and the distance of the avail-
11 able work from the individual's residence. Additionally, the
12 commission shall consider the individual's experience and prior
13 earnings, subject to the following limitation: (a) An
BUT AN
14 UNEMPLOYED individual unemployed for 1 to 12
weeks who refuses
15 an offer of work determined to be suitable under this section
16 shall be denied benefits if the pay rate for that work is at
17 least 80% 70% of the gross pay rate
he or she received immedi-
18 ately before becoming unemployed.
19 (b) An individual unemployed for 13 to 20
weeks who refuses
20 an offer of work determined to be suitable under this
section
21 shall be denied benefits if the pay rate for that work
is at
22 least 75% of the gross pay rate he or she received
immediately
23 before becoming unemployed.
24 (c) An individual unemployed for more than 20
weeks who
25 refuses an offer of work determined to be suitable
under this
26 section shall be denied benefits if the pay rate for
that work is
06614'02
58
1 at least 70% of the gross pay rate he or she received
immediately
2 before becoming unemployed.
3 (7) Work is not suitable and benefits shall not be denied
4 under this act to an otherwise eligible individual for refusing
5 to accept new work under any of the following conditions:
6 (a) If the position offered is vacant due directly to a
7 strike, lockout, or other labor dispute.
8 (b) If the remuneration, hours, or other conditions of the
9 work offered are substantially less favorable to the individual
10 than those prevailing for similar work in the locality.
11 (c) If as a condition of being employed, the individual
12 would be required to join a company union or to resign from or
13 refrain from joining a bona fide labor organization.
14 (8) All of the following apply to an individual who seeks
15 benefits under this act:
16 (a) An individual is disqualified from receiving benefits
17 for a week in which the individual's total or partial unemploy-
18 ment is due to either of the following:
19 (i) A labor dispute in active progress at the place at which
20 the individual is or was last employed, or a shutdown or start-up
21 operation caused by that labor dispute.
22 (ii) A labor dispute, other than a lockout, in active
23 progress or a shutdown or start-up operation caused by that labor
24 dispute in any other establishment within the United States that
25 is both functionally integrated with the establishment described
26 in subparagraph (i) and operated by the same employing unit.
06614'02
59
1 (b) An individual's disqualification imposed or imposable
2 under this subsection is terminated if the individual performs
3 services in employment with an employer in at least 2 consecutive
4 weeks falling wholly within the period of the individual's total
5 or partial unemployment due to the labor dispute, and in addition
6 earns wages in each of those weeks in an amount equal to or
7 greater than the individual's actual or potential weekly benefit
8 rate with respect to those weeks based on the individual's
9 employment with the employer involved in the labor dispute.
10 (c) An individual is not disqualified under this subsection
11 if the individual is not directly involved in the labor dispute.
12 An individual is not directly involved in a labor dispute unless
13 any of the following are established:
14 (i) At the time or in the course of a labor dispute in the
15 establishment in which the individual was then employed, the
16 individual in concert with 1 or more other employees voluntarily
17 stopped working other than at the direction of the individual's
18 employing unit.
19 (ii) The individual is participating in, financing, or
20 directly interested in the labor dispute that causes the
21 individual's total or partial unemployment. The payment of regu-
22 lar union dues, in amounts and for purposes established before
23 the inception of the labor dispute, is not financing a labor dis-
24 pute within the meaning of this subparagraph.
25 (iii) At any time a labor dispute in the establishment or
26 department in which the individual was employed does not exist,
27 and the individual voluntarily stops working, other than at the
06614'02
60
1 direction of the individual's employing unit, in sympathy with
2 employees in some other establishment or department in which a
3 labor dispute is in progress.
4 (iv) The individual's total or partial unemployment is due
5 to a labor dispute that was or is in progress in a department,
6 unit, or group of workers in the same establishment.
7 (d) As used in this subsection, "directly interested" shall
8 be construed and applied so as not to disqualify individuals
9 unemployed as a result of a labor dispute the resolution of which
10 may not reasonably be expected to affect their wages, hours, or
11 other conditions of employment, and to disqualify individuals
12 whose wages, hours, or conditions of employment may reasonably be
13 expected to be affected by the resolution of the labor dispute.
14 A "reasonable expectation" of an effect on an individual's wages,
15 hours, or other conditions of employment exists, in the absence
16 of a substantial preponderance of evidence to the contrary, in
17 any of the following situations:
18 (i) If it is established that there is in the particular
19 establishment or employing unit a practice, custom, or contrac-
20 tual obligation to extend within a reasonable period to members
21 of the individual's grade or class of workers in the establish-
22 ment in which the individual is or was last employed changes in
23 terms and conditions of employment that are substantially similar
24 or related to some or all of the changes in terms and conditions
25 of employment that are made for the workers among whom there
26 exists the labor dispute that has caused the individual's total
27 or partial unemployment.
06614'02
61
1 (ii) If it is established that l of the issues in or
2 purposes of the labor dispute is to obtain a change in the terms
3 and conditions of employment for members of the individual's
4 grade or class of workers in the establishment in which the indi-
5 vidual is or was last employed.
6 (iii) If a collective bargaining agreement covers both the
7 individual's grade or class of workers in the establishment in
8 which the individual is or was last employed and the workers in
9 another establishment of the same employing unit who are actively
10 participating in the labor dispute, and that collective bargain-
11 ing agreement is subject by its terms to modification, supplemen-
12 tation, or replacement, or has expired or been opened by mutual
13 consent at the time of the labor dispute.
14 (e) In determining the scope of the grade or class of work-
15 ers, evidence of the following is relevant:
16 (i) Representation of the workers by the same national or
17 international organization or by local affiliates of that
18 national or international organization.
19 (ii) Whether the workers are included in a single, legally
20 designated, or negotiated bargaining unit.
21 (iii) Whether the workers are or within the past 6 months
22 have been covered by a common master collective bargaining agree-
23 ment that sets forth all or any part of the terms and conditions
24 of the workers' employment, or by separate agreements that are or
25 have been bargained as a part of the same negotiations.
26 (iv) Any functional integration of the work performed by
27 those workers.
06614'02
62
1 (v) Whether the resolution of those issues involved in the
2 labor dispute as to some of the workers could directly or indi-
3 rectly affect the advancement, negotiation, or settlement of the
4 same or similar issues in respect to the remaining workers.
5 (vi) Whether the workers are currently or have been covered
6 by the same or similar demands by their recognized or certified
7 bargaining agent or agents for changes in their wages, hours, or
8 other conditions of employment.
9 (vii) Whether issues on the same subject matter as those
10 involved in the labor dispute have been the subject of proposals
11 or demands made upon the employing unit that would by their terms
12 have applied to those workers.
13 (9) Except for an individual disqualified under subsection
14 (1)(g), or an individual whose disqualifying discharge under
15 subsection (1)(b) is determined or redetermined to be a disci-
16 plinary layoff or suspension, an individual is disqualified from
17 receiving benefits for the duration of the individual's disci-
18 plinary layoff or suspension if the individual becomes unemployed
19 because of a disciplinary layoff or suspension based upon any of
20 the following:
21 (a) Misconduct directly or indirectly connected with work.
22 (b) Participation in a strike or other concerted activity
23 resulting in a curtailment of work or restriction of or interfer-
24 ence with production contrary to an applicable collective bar-
25 gaining agreement.
06614'02
63
1 (c) Participation in a wildcat strike or other concerted
2 activity not authorized by the individual's recognized bargaining
3 representative.
4 (10) If a disqualifying discharge under subsection (1)(b) is
5 determined or redetermined to be a suspension, the disqualifica-
6 tion provided under subsection (9) applies from the date of the
7 discharge.
8 (11) Notwithstanding subsections (1) to (10), if the employ-
9 ing unit submits notice to the commission of possible ineligibil-
10 ity or disqualification beyond the time limits prescribed by com-
11 mission rule, the notice shall not form the basis of a determina-
12 tion of ineligibility or disqualification for a claim period com-
13 pensated before the receipt of the notice by the commission.
14 (12) An individual is disqualified from receiving benefits
15 for any week or part of a week in which the individual has
16 received, is receiving, or is seeking unemployment benefits under
17 an unemployment compensation law of another state or of the
18 United States. If the appropriate agency of the other state or
19 of the United States finally determines that the individual is
20 not entitled to unemployment benefits, the disqualification
21 described in this subsection does not apply.
22 Sec. 48. (1) An individual shall be deemed
"unemployed"
23 with respect to CONSIDERED
UNEMPLOYED FOR any week during
which
24 he or she performs no services and with respect to
FOR which
25 remuneration is not payable to the individual, or
with respect
26 to FOR any week of less than full-time
work if the remuneration
27 payable to the individual is less than his or her weekly benefit
06614'02
64
1 rate. However, any loss of remuneration incurred by an
2 individual during any week resulting from any cause other than
3 the failure of the individual's employing unit to furnish
4 full-time, regular employment shall be included as remuneration
5 earned for purposes of this section and of
section 27(c). The
6 total amount of remuneration thus lost
shall be determined in
7 such manner as PURSUANT TO
REGULATIONS PRESCRIBED BY the
8 commission. shall by regulation prescribe.
For the purposes of
9 this act, an individual's weekly benefit rate shall
mean MEANS
10 the weekly benefit rate as determined
pursuant to section
11 27(b).
12 (2) All amounts paid to a claimant by an employing unit or
13 former employing unit for a vacation or a holiday, and amounts
14 paid in the form of retroactive pay, or
PAY in lieu of notice,
15 SEVERANCE PAYMENTS, SALARY CONTINUATION, OR OTHER REMUNERATION
16 INTENDED BY THE EMPLOYING UNIT AS CONTINUING WAGES AS THE RESULT
17 OF THE SEPARATION shall be deemed
CONSIDERED remuneration in
18 determining whether an individual is unemployed under this sec-
19 tion and also in determining his or her benefit payments under
20 section 27 (c), for the period designated by the contract or
21 agreement providing for the payment, or if there is no contrac-
22 tual specification of the period to which such
payments shall
23 be allocated, then for the period designated by the employing
24 unit or former employing unit. However, payments for a vacation
25 or holiday, made, or the right to which
has irrevocably vested,
26 after 14 days following such A
vacation or holiday , and
27 payments in the form of termination, separation,
severance or
06614'02
65
1 dismissal allowances, and bonuses, shall
not be deemed
2 CONSIDERED wages or remuneration within the meaning of this
3 section.
4 (3) An individual shall not be deemed
CONSIDERED to be
5 unemployed during any leave of absence from work granted by an
6 employer either at the request of the individual or pursuant to
7 an agreement with the individual's duly authorized bargaining
8 agent, or in accordance with law. An individual shall neither be
9 considered not unemployed nor on a leave of absence solely
10 because the individual elects to be laid off, pursuant to an
11 option provided under a collective bargaining agreement or writ-
12 ten employer plan which THAT
permits such AN election, when
13 IF there is a temporary layoff because of lack of work
, and
14 the employer has consented thereto
TO THE ELECTION.
06614'02 Final page. FDD