Labor & Employment (Unemployment) in Michigan

in committee · Michigan · House Sep 1, 2026

HB 6311: Employment security: administration; notice requirements for determination of benefits; modify. Amends sec. 32 of 1936 (Ex Sess) PA 1 (MCL 421.32).

Michigan House Bill 6311 amends the state's unemployment insurance laws to establish specific deadlines and content requirements for notifying claimants and employers about benefit determinations. The bill mandates that the unemployment agency must notify affected parties within 14 days of a decision, providing details on the reasons for the ruling, the facts relied upon, and instructions for filing an appeal. It also allows for electronic delivery of these notices if the claimant has consented or used the agency's online portal, while requiring mailed copies if electronic delivery fails. Additionally, the legislation requires the agency to send written notifications regarding claimant rights and responsibilities within two weeks and six months after initial benefit payments are issued.

Topics ✓ Labor & Employment

Sub-Topics Unemployment

in committee · Michigan · House Jul 14, 2026

HB 6205: Civil procedure: garnishment; certain benefits and tax credits; exempt from garnishment, and provide state limit on wages that are subject to garnishment. Amends sec. 4031 of 1961 PA 236 (MCL 600.4031) & adds secs. 4001a, 4032 & 4033.

This bill updates Michigan's civil procedure laws to clarify how much of a person's wages can be taken by creditors through garnishment. It specifically protects certain types of income from being garnished, including public assistance benefits, unemployment compensation, disability payments, and both federal and state earned income tax credits. Additionally, the legislation sets new limits on how much of a weekly paycheck can be seized, capping the amount at 20% of earnings up to a specific threshold and 30% of earnings above that threshold. These changes directly affect individuals whose wages are subject to garnishment and the creditors seeking to collect debts from them.

Topics ✓ Labor & Employment

Sub-Topics Unemployment

in committee · Michigan · Senate May 20, 2026

SB 995: Individual income tax: credit; work opportunity tax credit for qualified employees; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding secs. 279 & 679. TIE BAR WITH: SB 0994'26

SB 995 proposes to create a new state tax credit for Michigan employers starting in 2026, allowing them to reduce their income tax liability by 50% of the federal Work Opportunity Tax Credit they would have received. This credit is available only to businesses that hire Michigan residents who are certified by the state unemployment agency as members of specific targeted groups facing employment barriers. The bill specifies that any unused portion of the credit cannot be refunded if it exceeds the employer's tax bill, and it includes provisions for flow-through entities to claim credits based on their share of business income.

Topics ✓ Budget & Taxes ✓ Labor & Employment

Sub-Topics Income Tax Tax Credits Tax Incentives Unemployment

in committee · Michigan · Senate May 20, 2026

SB 994: Individual income tax: withholding requirements; work opportunity withholdings tax credit for certain tax exempt organizations; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 714. TIE BAR WITH: SB 0995'26

This bill allows certain Michigan nonprofit organizations to claim a tax credit against state income tax withholdings for wages paid to qualified employees. The credit applies to tax years starting on or after January 1, 2026, and is limited to 50% of the amount the employer would have received under a federal work opportunity credit. To qualify, employees must be Michigan residents certified by the state unemployment agency as members of a targeted group, and the credit cannot be refunded if it exceeds the employer's withholding tax liability. The legislation also requires that any unused federal credits from previous years be excluded from the calculation. The bill will only take effect if a companion bill, SB 995, is also passed into law.

Topics ✓ Budget & Taxes ✓ Labor & Employment

Sub-Topics Income Tax Tax Credits Unemployment

in committee · Michigan · House Dec 18, 2025

HB 5392: Employment security: administration; recovery of improperly paid benefits; allow claimant to provide evidence of waiver eligibility. Amends sec. 62 of 1936 (Ex Sess) PA 1 (MCL 421.62).

HB 5392 updates Michigan's unemployment benefits recovery process by expanding eligibility for claimants to request waivers of repayment for improperly paid benefits. It allows claimants 60 days after receiving an overpayment notice to submit evidence showing repayment would be "contrary to equity and good conscience," such as administrative errors by the agency, employer-provided incorrect wage data, or household income below 150% of the federal poverty level. The bill clarifies that waivers apply retroactively from the date of the error or application, and requires refunds for payments made after the waiver request. This directly affects individuals who received unemployment benefits they later had to repay due to agency or employer errors.

Topics ✓ Labor & Employment

Sub-Topics Labor Standards Unemployment

in committee · Michigan · House Dec 23, 2025

HB 5421: Employment security: benefits; disqualification from receiving benefits when leaving employment; create exception for victim of stalking. Amends secs. 29 & 29a of 1936 (Ex Sess) PA 1 (MCL 421.29 & 421.29a).

HB 5421 amends Michigan's unemployment benefits law to create a new exception allowing victims of stalking to qualify for benefits if they leave employment due to stalking. Currently, an exception exists for domestic violence victims under Section 29(a)(iv), but this bill replaces "domestic violence" with "stalking" in that provision. The change means individuals who leave jobs to escape stalking would no longer be disqualified from benefits, directly affecting stalking victims who might otherwise lose unemployment eligibility. This policy update modifies the disqualification rule without altering other existing provisions.

Topics ✓ Criminal Justice ✓ Labor & Employment

Sub-Topics Domestic Violence Unemployment

in committee · Michigan · House Dec 18, 2025

HB 5393: Employment security: benefits; recovery waiver of an improperly paid benefit; require after a certain amount of time elapses. Amends sec. 62 of 1936 (Ex Sess) PA 1 (MCL 421.62).

HB 5393 amends Michigan's unemployment benefits law to change how overpaid benefits are recovered. It requires the unemployment agency to issue a repayment demand within 3 years of a final determination about overpayment, and prohibits recovery actions after that deadline (except for suspected identity fraud). The bill creates specific waiver conditions where repayment may be forgiven, including cases of agency errors, low household income (below 150% of federal poverty guidelines), or unintentional wage reporting mistakes by employers. This directly affects unemployed Michiganders who received incorrect benefits, ensuring they aren't required to repay overpayments after the 3-year window unless fraud is involved.

Topics ✓ Labor & Employment

Sub-Topics Unemployment

in committee · Michigan · House Dec 18, 2025

HB 5391: Employment security: benefits; recovery of an improperly paid unemployment benefit more than 1 year after payment; prohibit. Amends sec. 62 of 1936 (Ex Sess) PA 1 (MCL 421.62).

HB 5391 changes Michigan's unemployment benefits recovery rules by limiting the time the state can seek repayment of improperly paid benefits. It prohibits the unemployment agency from recovering benefits more than one year after the claimant receives the payment, affecting most unemployed Michiganders who received benefits by mistake. Exceptions include cases involving suspected identity fraud (where recovery may still be pursued) or intentional fraud (where no time limit applies). The bill also maintains existing hardship waiver options for repayment if recovery would be unfair due to financial hardship or administrative errors.

Topics ✓ Labor & Employment

Sub-Topics Unemployment

in committee · Michigan · House Dec 17, 2025

HB 5375: Employment security: administration; assessment of penalties, interest, or fees on certain unpaid restitution of benefit overpayments; prohibit. Amends sec. 15 of 1936 (Ex Sess) PA 1 (MCL 421.15).

HB 5375 prohibits charging interest on unpaid restitution of overpaid unemployment benefits when the overpayment resulted from specific errors, such as agency mistakes, employer errors, or system issues - not the claimant's fault. It requires the unemployment agency to waive existing interest charges and refund payments made for those errors, with refunds due within 180 days of the law's effective date. The bill also stops interest from accruing during pending appeals and applies retroactively to overpayments from February 2020 through December 2026. This directly affects claimants who received overpayments due to errors beyond their control.

Topics ✗ Budget & Taxes ✓ Labor & Employment

Sub-Topics Labor Standards Unemployment

in committee · Michigan · House Dec 18, 2025

HB 5394: Employment security: benefits; certain improperly paid benefits; require waiver of recovery as an administrative or clerical error. Amends sec. 62 of 1936 (Ex Sess) PA 1 (MCL 421.62).

HB 5394 requires Michigan's unemployment insurance agency to automatically waive repayment of benefits improperly paid due to the agency's own administrative or clerical errors, rather than requiring claimants to seek a waiver through a separate process. This applies specifically when overpayments result from the agency's mistakes (e.g., data entry errors), excluding cases involving fraud, identity theft, or intentional misrepresentation by claimants. The bill ensures claimants affected by such agency errors do not face repayment demands or interest, streamlining relief for those who received benefits due to the state's administrative errors. It does not change eligibility rules or apply to overpayments caused by claimant error or fraud.

Topics ✓ Labor & Employment

Sub-Topics Unemployment

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