The bill amends the Michigan Employment Security Act to modernize unemployment benefits, introducing new maximum weekly benefit rates that will increase incrementally from $446.00 in 2025 to $530.00 by 2026, with further adjustments planned through 2028. It also allows individuals to earn up to half of their weekly benefit amount without a reduction in benefits and revises definitions related to dependents, replacing terms like "husband or wife" with "spouse" and "father or mother" with "parent." Additionally, the bill clarifies the responsibilities of the unemployment insurance agency in verifying claims and reporting data, while detailing how retirement benefits will impact unemployment compensation based on the individual's contribution to the retirement plan.

Further provisions in the bill address child support obligations, requiring individuals to disclose any such obligations when filing for unemployment compensation. The unemployment insurance agency is mandated to notify child support enforcement agencies if an individual owes support and is eligible for benefits, and it is authorized to deduct amounts from unemployment compensation to satisfy these obligations. The bill also specifies conditions for seasonal workers, stating that benefits are payable only during their normal work periods and outlines the process for employers to be designated as seasonal. Additionally, it includes provisions for adjusting benefit amounts based on the Consumer Price Index starting in 2026 and ensures the use of federal funds for unemployment benefits before state funds.

Statutes affected:
House Introduced Bill: 421.27