Great Lakes Wire

The House Labor Caucus has introduced a set of nine bills aimed at changing Michigan’s unemployment insurance system and strengthening worker protections. The package proposes increasing unemployment benefit amounts, simplifying communication from the Unemployment Insurance Agency (UIA), lowering wage garnishment rates, and other reforms.

At a press conference, Rep. Joey Andrews (D-St. Joseph) described the bill package as timely due to current national economic conditions. Rep. Donavan McKinney (D-Detroit) highlighted that the unemployment insurance system is outdated and not meeting people’s needs, noting his HB 5000 would raise the state’s weekly benefit amount rate for unemployment payments from 4.1 percent to 5.1 percent of a worker’s highest earnings in a quarter.

Elly Jordan of the Michigan Poverty Law Program explained that Rep. Denise Mentzer (D-Mount Clemens)’s HB 5002 seeks to make UIA correspondence easier to understand by requiring it be written at a fourth-grade reading level. “This was a big issue we saw during COVID when we got a large increase in contacts from constituents who had no idea, and even us reading some of the documents didn’t know what it meant,” said Rep. Regina Weiss (D-Oak Park).

Jordan also commented on the challenges faced by those navigating unemployment: when communications are unclear, it adds further difficulty for individuals already facing uncertainty.

Addressing concerns about fraud and abuse in social services, Rep. Mai Xiong (D-Warren) responded to criticism from conservative lawmakers: “For them to accuse Michiganders of being waste, fraud and abuse, I would argue that there is a portrait in this building that I consider waste, fraud and abuse,” Xiong said, referring to Speaker Matt Hall (R-Richland Township).

Other proposed bills include measures such as allowing recipients of unemployment benefits to take part-time jobs without losing eligibility (HB 5001 by Rep. Stephanie A. Young), raising hardship waiver eligibility thresholds for pandemic-related overpayments (HB 5003 by Rep. Brenda Carter), restoring prior law regarding involuntary medical leave (HB 5004 by Rep. Kelly Breen), excluding medical emergencies from “no call, no show” disqualifications for benefits (HB 5005 by Rep. Regina Weiss), ensuring appeal hearings with legal counsel for those investigated for fraud (HB 5006 by Rep. Reggie Miller), implementing an “ABC” test instead of the IRS test for independent contractor status affecting benefit eligibility (HB 5007 by Rep. Joey Andrews), and reducing maximum wage garnishments related to overpayment collections from 50% to 20% (HB 5008 by Rep. Mai Xiong).

The Small Business Association of Michigan continues its opposition to restrictive mandates on independent contractors while supporting reforms in the unemployment insurance system.