The bill amends the Michigan Employment Security Act to update the calculation of unemployment benefits and redefine terms related to dependents. For benefit years starting before January 1, 2026, the weekly benefit rate will be set at 4.1% of an individual's highest total wages from the base period, plus $6.00 for each dependent, with a maximum of $362.00 until January 1, 2025. Beginning January 1, 2026, the rate will increase to 5.1% of the highest total wages, with maximum weekly benefits rising to $530.00 for claims filed on or after that date, and $614.00 for claims filed on or after January 1, 2027. The bill also modernizes the definition of "dependent" to be more inclusive and clarifies that dependency status remains unchanged throughout the benefit year.

Additionally, the bill addresses the treatment of retirement benefits in relation to unemployment compensation, specifying how contributions affect eligibility. It introduces conditions under which benefits may be denied or adjusted based on employment history, particularly for seasonal and educational employment, and outlines the process for employers to be designated as seasonal employers. The bill mandates annual adjustments to benefit amounts based on the Consumer Price Index, ensuring that benefits remain aligned with inflation. Overall, the legislation aims to refine the unemployment benefits system in Michigan, making it more equitable and reflective of contemporary societal norms.

Statutes affected:
House Introduced Bill: 421.27