Great Lakes Wire

On June 12, 2025, the Michigan House Economic Competitiveness Committee held a hearing regarding House Bill 4516. This proposed legislation aims to introduce accountability measures to the state's unemployment insurance system. These changes have been sought by employers since the pandemic.

In 2023, the Small Business Association of Michigan (SBAM) established the Unemployment Insurance Task Force to address issues within Michigan’s unemployment insurance (UI) system that became apparent after COVID-19. The task force identified increased accountability as a primary need for improvement. Employers have reported frequent occurrences of interview no-shows and rejected offers without having any means to report these incidents to the Unemployment Insurance Agency (UIA). Often, job seekers are perceived as applying only to meet application requirements for continued benefits rather than seeking actual employment.

Small business owners recognize the importance of a robust unemployment insurance system for those in genuine need. However, they express concern over paying claims that should not be approved. As employer-funded payroll taxes support the Unemployment Insurance trust fund and assessments are expected to rise due to recent benefit increases, providing employers with a way to report misuse is deemed crucial.

House Bill 4516 seeks to address these concerns by allowing employers to inform the UIA if a prospective employee misses an interview or ceases communication after starting employment without notice. Following such reports, UIA would investigate and determine eligibility for benefits based on wrongful ghosting behavior. The bill also includes provisions protecting potential employees in cases of miscommunication or emergencies preventing them from attending interviews.

Kelli Saunders from SBAM and David Worthams from the Michigan Manufacturers Association testified in favor of HB 4516 during its hearing. They highlighted employer frustrations with current practices and supported enhanced accountability measures.

Although there has been no vote on HB 4516 yet, lawmakers have shown interest in further discussions. SBAM plans to stay involved in advocating for an unemployment insurance system that supports those in need while ensuring fairness for contributing employers.