Legislative Analysis
Phone: (517) 373-8080
USE OF PLAIN LANGUAGE BY THE
http://www.house.mi.gov/hfa
UNEMPLOYMENT INSURANCE AGENCY;
OPT OUT OF FEDERAL UNEMPLOYMENT PAYMENTS Analysis available at
http://www.legislature.mi.gov
House Bill 4434 (H-1) as amended and passed by the House
Sponsor: Rep. Jeff Yaroch
Committee: Workforce, Trades, and Talent
Complete to 6-23-21
SUMMARY:
House Bill 4434 would amend the Michigan Employment Security Act to require that the
Unemployment Insurance Agency (UIA)1 use plain language in all of the following under the
act, whether in a print, electronic, or other format:
• Correspondence and documents related to the taxes or reimbursing charges of
employers and the benefits of individuals.
• References or citations to UIA-implemented policies or UIA-promulgated rules in
documents or correspondence sent to or used by a claimant or employer.
Plain language would mean language that is clear and concise, that avoids complex
vocabulary and contradictory statements, and that is based on a fourth-grade reading
level.
Under the bill, the UIA would have to include all of the following in any determination or
redetermination the UIA provides to a claimant or employer:
• A clear, concise, and factual reason for the determination or redetermination that
includes facts specific to the party’s claim.
• A summary of the party’s right to appeal, including the length of time to file.
• A summary of the party’s right to request a reconsideration within one year of the
mailing date of the determination or redetermination.
• A summary list of all determinations and redeterminations related to the party’s claim,
including the outcome, date of issuance, and the deadline for an appeal or request for
reconsideration.
The bill would require the UIA to consolidate all determinations or redeterminations related to
an issue into one determination or redetermination, as applicable.
Generally, the UIA would have to provide both of the following in the notification it provides
to an employer or claimant regarding a denial, modification, or ending of benefits:
• A clear and concise statement of the reason for that determination, including the facts
and legal reason for the determination.
• If applicable, the appeal rights that the employer or claimant has regarding the
determination.
1
Although the bill refers to the “unemployment agency,” defined elsewhere in the act as the “bureau of worker’s
and unemployment compensation,” that agency is currently known as the Unemployment Insurance Agency, after
being most recently renamed by EO 2003-18 (https://www.michigan.gov/formergovernors/0,4584,7-212-
96477_57648_21975-76905--,00.html) and most recently transferred to the Department of Labor and Economic
Opportunity by EO 2019-13 (https://www.michigan.gov/whitmer/0,9309,7-387-90499_90705-499273--,00.html).
House Fiscal Agency Page 1 of 3
 Finally, the bill would prohibit the UIA from implementing, or assisting the federal government
in implementing, any portion of the federal American Rescue Plan Act of 2021, if doing so
would result in a claimant receiving federal pandemic unemployment compensation.
MCL 421.2, 421.11, and 421.32b and proposed MCL 421.32e
HOUSE FLOOR ACTION:
As reported from committee, the bill focused on the plain language requirements. When being
read for a third time on the House floor, the bill was amended to opt Michigan out of the federal
unemployment programs that are currently set to expire September 6, 2021.2 At least 25 states
have declared an end to the extended unemployment benefits, with benefits set to expire in
those states on dates ranging from June 12 to July 3. If the bill is given immediate effect, passed
by the Senate, and signed by the governor, the opt-out would be effective on the date the bill
is signed.
BRIEF DISCUSSION:
Supporters of the bill pointed to the struggles many Michiganders have faced over the last year
in navigating the UIA system and receiving unemployment payments. The COVID-19
pandemic resulted in record unemployment, with a reported 5 million claims filed in Michigan
in the past year. However, the scale of the need only revealed a problem that has been systemic
with the agency: the forms, instructions, and communications are written using terms and
phrases that average people do not understand. The unemployment system in Michigan is
intended to be a “pro se” system, where a claimant can represent him or herself without the
need for a lawyer. The bill is intended to bring that goal closer to a reality.
A representative of the UIA indicated that readability of its materials is an ongoing problem
and one they know needs to be addressed. However, they expressed “major concerns” over the
H-1 substitute for the bill,3 stating that the most significant concern is the necessity for case-
by-case consideration on each issue (instead of system adjudication) because of the level of
detail prescribed in the H-1 substitute. This would result in backlogs, increasing delays for
claimants or increased confusion.
The UIA indicated that it is working on two projects to address the confusion and delays that
have been exacerbated by the COVID-19 pandemic and the attendant increased demand for
unemployment payments. The first is with a nonprofit group that creates simple systems for
delivering government programs; the group will be completely retooling the UIA customer
experience. The second will be with a private consulting firm focusing on plain language
communications, user-centric website design, and revised status definitions.
2
House Fiscal Agency fiscal brief on The American Rescue Plan of 2021 (see pg. 4):
https://www.house.mi.gov/hfa/PDF/Alpha/Fical_Brief_American_Rescue_Plan_Act_of_2021_Apr14.pdf
3
Written testimony submitted by the Department of Labor and Economic Opportunity:
https://www.house.mi.gov/MHRPublic/CommitteeDoc.aspx?uri=2021_2022_session/committee/house/standing/wor
kforce,_trades,_and_talent/meetings/2021-06-10-1/documents/testimony/Stephanie%20Glidden-
Written%20Testimony%20on%20HB%204434%20(H-1)%206-10-21.pdf
House Fiscal Agency HB 4434 (H-1) as amended and passed by the House Page 2 of 3
FISCAL IMPACT:
A fiscal analysis is in progress.
POSITIONS:
A representative of the Workers’ Rights Clinic at the University of Michigan Law School
testified in support of the bill. (5-12-21)
The following entities indicated support for the bill:
Michigan League for Public Policy (5-12-21)
Michigan Laborers Union (5-12-21)
Michigan Health and Hospital Association (6-10-21)
The Unemployment Insurance Agency indicated opposition to the H-1 substitute for the bill.
(6-10-21)
Legislative Analyst: Jenny McInerney
Fiscal Analysts: Marcus Coffin
Ben Gielczyk
■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their
deliberations, and does not constitute an official statement of legislative intent.
House Fiscal Agency HB 4434 (H-1) as amended and passed by the House Page 3 of 3


Statutes affected:
House Introduced Bill: 421.2, 421.32
As Passed by the House: 421.2
As Passed by the Senate: 421.2
House Concurred Bill: 421.2
House Enrolled Bill: 421.2