The bill amends the Michigan Employment Security Act to revise the calculation of unemployment benefits and update definitions related to dependents. It introduces a new weekly benefit rate structure, increasing the percentage of wages used for calculations from 4.1% to 5.1% for benefit years starting on or after January 1, 2026. Additionally, the monetary amount for dependents will increase over the next few years, with specific amounts set for claims filed on or after January 1, 2025, 2026, 2027, and 2028. The bill also clarifies the definition of dependents by replacing terms like "husband or wife" with "spouse" and "brother or sister" with "sibling," while establishing that the number of dependents claimed remains fixed for the benefit year.

Moreover, the bill modifies eligibility criteria and benefit calculations for individuals receiving retirement benefits, specifying that if an individual has contributed less than half of the cost of their retirement benefit, only half will be considered for unemployment purposes. It also introduces provisions for denying or reducing benefits based on retirement benefits from base period employers and ensures that individuals pursuing vocational training after exhausting their benefits can receive training benefits without interruption. The bill outlines conditions for seasonal employment benefits, including the denial of benefits for individuals with reasonable assurance of reemployment, and mandates annual adjustments to benefit amounts based on the Consumer Price Index starting in 2026.

Statutes affected:
House Introduced Bill: 421.27