HB 5000 increases Michigan's unemployment benefit payments for workers with dependents. It amends the calculation method to use 5.1% of the highest-earning quarter's wages (up from 4.1%) plus higher per-dependent amounts. For claims filed after January 1, 2025, the weekly rate rises to $12.66 per dependent (max $446); after 2026, it increases to $19.33 per dependent (max $530). This directly affects unemployed Michigan residents claiming benefits who have dependents, raising their weekly payments through 2028 and beyond.
HB 5006 amends Michigan's unemployment insurance law to clarify how the state recovers benefits paid to individuals who weren't entitled to them. It sets a 3-year limit for the unemployment agency to seek repayment (except for identity fraud cases), limits deductions from future benefits or wages to 50% per payment, and establishes three specific situations where repayment can be waived: if the overpayment resulted from incorrect wage information provided by an employer, if the recipient's household income was at or below 150% of the federal poverty level, or if the overpayment was due to a clerical error by the agency. The bill also specifies that waivers apply from the date of the error or application, and requires refunds for any payments made after a waiver is granted. This directly affects individuals who received unemployment benefits they didn't qualify for, changing how the state enforces repayment and grants relief.
HB 5005 amends Michigan's unemployment benefits law to clarify when workers who leave jobs without notice may still qualify for benefits. It adds a new exception (subsection (iv)) allowing domestic violence victims to claim benefits without disqualification, provided they meet requirements under Section 29a. The bill also reinforces that workers absent for 3+ consecutive days without contacting their employer are presumed to have left voluntarily - unless they qualify for one of the specified exceptions. This change directly affects workers who leave employment due to domestic violence or other qualifying circumstances, ensuring they can access benefits without penalizing their former employers financially.
HB 5007 amends Michigan's Employment Security Act to update how "employment" is defined for unemployment benefits eligibility. It changes the standard for classifying workers as employees (requiring benefits coverage) versus independent contractors, effective January 1, 2026. Under the new rule, most workers must be classified as employees unless they meet all three strict criteria: no employer control, services outside the employer's usual business, and the worker operating as an independent business. This directly affects employers and workers in Michigan who currently classify individuals as independent contractors, particularly in gig economy and service roles. The bill maintains current rules (using the IRS 20-factor test) until 2026, with specific exceptions for certain visa holders and federally certified employers.
HB 5003 amends Michigan's unemployment benefits law to make it easier for low-income recipients to avoid repaying wrongly paid benefits. It increases the income threshold for hardship waivers from 150% to 200% of the federal poverty guidelines, meaning more individuals with modest household incomes qualify for relief. The bill also maintains existing waiver conditions for cases involving employer errors or agency clerical mistakes, but explicitly excludes intentional fraud. This change directly affects Michigan unemployment benefit recipients who overpaid due to administrative errors or low income, reducing their financial burden.
HB 5002 requires Michigan's unemployment agency to use simple, clear language in all communications with claimants and employers about benefits, taxes, and agency decisions. It mandates that explanations of denials, modifications, or benefit changes include specific facts about the case and the legal basis for the decision, all at a fourth-grade reading level. The bill also requires the agency to provide clear summaries of appeal rights and consolidate related decisions into single notifications. This directly affects individuals filing for unemployment and businesses managing unemployment tax accounts. The law aims to make the process more understandable without changing benefit eligibility rules.
HB 5118 would create a Michigan income tax credit for employers hiring residents from specific federal "targeted groups" (like veterans or long-term unemployed individuals). The credit equals 50% of the federal work opportunity tax credit amount, applied to qualified wages paid to Michigan residents certified by the state unemployment agency as part of these groups. It applies to tax years beginning January 1, 2026, and cannot exceed an employer's total tax liability for that year. The bill directly affects Michigan employers (excluding tax-exempt organizations) who hire eligible employees meeting federal and state certification criteria.
HB 5119 allows tax-exempt organizations in Michigan (like nonprofits) to claim a state tax credit equal to 50% of the federal Work Opportunity Tax Credit (WOTC) they earn for hiring employees from specific targeted groups. The credit applies to wages paid to employees certified by Michigan’s unemployment agency as members of these groups, starting in tax years beginning January 1, 2026. Employers must claim this credit on their annual tax returns, and it can only offset state income tax withholding - any excess credit isn’t refunded. The bill directly affects tax-exempt employers hiring eligible employees, aligning Michigan’s credit with federal WOTC rules.