The bill amends the Michigan Employment Security Act, specifically section 42, to clarify the definition of "employment" and the conditions under which services are considered employment for unemployment insurance purposes. Key changes include the insertion of new language that specifies criteria for determining whether an individual is classified as an employee or an independent contractor. Notably, starting January 1, 2026, an individual performing services for a hiring entity will be classified as an employee unless they meet specific criteria, such as being a separate business entity or fulfilling certain independence requirements.

Additionally, the bill updates various definitions and conditions related to employment, including the treatment of services performed both within and outside the state, and the circumstances under which services performed by individuals for remuneration are deemed employment. The amendments also include retroactive applicability to services performed on or after January 1, 2021, ensuring that the new definitions and classifications are applied to past cases as well.

Statutes affected:
House Introduced Bill: 421.42