Bill package would streamline Michigan’s Unemployment Insurance Agency processes, boost maximum number of weeks and dollar amount of benefits workers could qualify for
LANSING, Mich. (Dec. 5, 2024) — Today, the Michigan Senate passed Senate Bills 40, 962, 975, 976, and 981. Sponsored by Sens. John Cherry (D-Flint), Sam Singh (D-East Lansing), Mary Cavanagh (D-Redford Twp.), and Paul Wojno (D-Warren), this legislation would make numerous technical changes and updates to Michigan’s Unemployment Insurance Agency (UIA), streamlining system processes and increasing benefits for unemployed workers in the state.
Senate Bill 962, sponsored by Sen. Cherry, addresses longstanding issues and removes barriers that claimants have commonly experienced in navigating the UIA system by:
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Providing a pathway to consolidate a claimant’s case so that they are no longer forced to go through multiple hearings, saving claimants and employers valuable time;
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Increasing the cap on the allowable number of hardship waiver applications from two to four, providing greater flexibility for claimants facing a particularly difficult time;
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Adding a $100,000 threshold for a cash asset administered by the UIA, enabling people greater opportunity to gain stability; and
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Prohibiting the UIA from clawing back already distributed benefits before they have considered all relevant waivers.
“Michigan workers have long relied on unemployment benefits to help make ends meet during difficult times, but unfortunately, our state’s unemployment system has too often prevented people from accessing those benefits at the time they need it most,” Sen. Cherry, Chair of the Senate Labor Committee. “This common-sense legislation would bring updates to our UIA system for the first time in over two decades, streamlining and modernizing processes so that everyone — claimants, workers, and employers — will benefit. It’s time to get this done.”
Notably, this legislation would restore Michigan’s own previous practices — and bring us up to par with most other states — by updating the maximum number of weeks people can qualify for benefits. The number of benefit weeks was cut by six weeks in 2011, unnecessarily harming workers when they are struggling the most for more than a decade. The bill also increases the maximum dollar amount of benefits. Sponsored by Sen. Wojno, Senate Bill 40 would restore the maximum number of weeks claimants could access benefits from 20 to 26 and would raise the maximum weekly benefit from $362 to $614. With future increases being tied to changes in inflation, this legislation would ensure Michigan’s UIA benefits adapt to a changing economy. The maximum dollar cap for dependent benefits would also increase from $6 to $26.
“As we see the cost of everyday items and necessities rise, from food and clothing to prescriptions and housing, it’s the people struggling to make ends meet who are hit hardest. These Michiganders deserve a little extra breathing room as they work to secure a stable future for themselves and their families,” said Sen. Wojno. “By restoring the length of time people can qualify for benefits and tying those benefits to rising inflation, we can ensure our UIA system is able to adapt to best support Michigan residents during challenging economic times.”
Under Senate Bill 975 sponsored by Sen. Singh, claimants would have the ability to disprove the presumption that they voluntarily left their job without good cause after missing work for three or more consecutive days due to extenuating circumstances. This bill would also ensure that victims of domestic violence would not lose benefits due to voluntarily leaving a job.
Led by Sen. Cavanagh, Senate Bill 981 would make UIA materials subject to FOIA, enhancing transparency for the public, along with making long overdue changes to outdated law language.
“Unemployment benefits are an imperative resource that help keep Michigan workers afloat in times of need — but with an unemployment system plagued by outdated processes and inefficiencies, far too many Michiganders struggle to successfully access these critical benefits that offer dignity and stability,” said Sen. Cavanagh. “Our commonsense legislation makes long-awaited updates to Michigan’s Unemployment Insurance Agency (UIA), streamlining processes and ensuring that unemployed workers can get the support they need, when they need it.”
Among other items, this bill package would also provide greater privacy protections for claimants by ensuring Michigan’s UIA matches federal standards in how it handles and shares their information.
This legislation is now headed to the House for consideration.
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