Great Lakes Wire

Michigan's legislature approved measures to increase Unemployment Insurance (UI) benefits last December, despite concerns from the Small Business Association of Michigan (SBAM) and other business community members. The new changes, recently announced by the Michigan Department of Labor & Economic Opportunity, will be implemented on April 2.

The legislation increases the maximum number of weeks an individual can qualify for unemployment benefits from 20 to 26 weeks annually. It also establishes scheduled increases for both the maximum weekly benefit rate and the rate for each dependent.

These changes will be gradual: from January 1, 2025, the maximum weekly benefit will rise to $446, with a dependent amount of $12.66. That will increase annually, reaching $530 and $19.33 in 2026, and $614 and $26.00 in 2027. Starting January 1, 2028, and thereafter, the previous year’s maximum will be adjusted based on the Consumer Price Index.

Despite the changes being signed into law last year, they could not be enforced immediately, as the legislature did not provide immediate effect to the legislation. This delay meant that implementation could only commence from April 2.

Although the changes take effect April 2, the law lists January 1, 2025, as the date for rate increases. As a result, the Unemployment Insurance Agency will conduct a case-by-case review of active claims filed between January 1 and April 2. This review will be to make retroactive determinations for claimants eligible for the increased maximum benefit amount, but there will be no retroactive change to the maximum benefit weeks for claimants during this period.