Legislation increasing the maximum number of weeks per year a person may qualify for unemployment benefits from 20 to 26 weeks, and other changes to the unemployment system in Michigan was passed by the House of Representatives this week.
Key Points:
-
- The legislation was sponsored by Senators Kevin Hertel (D-St. Clair Shores), John Cherry (D-Flint), Sam Singh (D-East Lansing), and Mary Cavanagh (D-Redford).
- It incrementally increases the weekly benefit rate for each dependent in the following manner:
- Beginning January 1, 2025 – $12.66/dependent, with a maximum rate of $446.
- Beginning January 1, 2026 – $19.33/dependent, with a maximum rate of $530.
- Beginning January 1, 2027 – $26/dependent, with a maximum rate of $614.
- After January 1, 2028, the state treasurer will make adjustments to the rate reflecting the “cumulative annual percentage change in the Consumer Price Index.”
- It provides a pathway to consolidate a claimant’s case so that they are no longer forced to go through multiple hearings.
- Increases the cap on the allowable number of hardship waiver applications from two to four.
- Adding a $100,000 threshold for a cash asset administered by the Unemployment Insurance Agency (UIA).
- Prohibits the UIA from clawing back already distributed benefits before they have considered all relevant waivers.
Next Steps:
-
- The bills were returned to the Senate, one bill was changed by the House and will need concurrence by the Senate. After that, the bills will be presented to Governor Whitmer for her consideration.
