MICHIGAN EMPLOYMENT SECURITY ACT
Act 1 of 1936 (Ex. Sess.)
AN ACT to protect the welfare of the people of this state through the establishment of an unemployment compensation fund, and to provide for the disbursement thereof; to create certain other funds; to create the Michigan employment security commission, and to prescribe its powers and duties; to provide for the protection of the people of this state from the hazards of unemployment; to levy and provide for contributions from employers; to levy and provide for obligation assessments; to provide for the collection of those contributions and assessments; to enter into reciprocal agreements and to cooperate with agencies of the United States and of other states charged with the administration of any unemployment insurance law; to furnish certain information to certain governmental agencies for use in administering public benefit and child support programs and investigating and prosecuting fraud; to provide for the payment of benefits; to provide for appeals from redeterminations, decisions and notices of assessments; and for referees and a board of review to hear and decide the issues arising from redeterminations, decisions and notices of assessment; to provide for the cooperation of this state and compliance with the provisions of the social security act and the Wagner-Peyser act passed by the Congress of the United States of America; to provide for the establishment and maintenance of free public employment offices; to provide for the transfer of funds; to make appropriations for carrying out the provisions of this act; to prescribe remedies and penalties for the violation of this act; and to repeal all acts and parts of acts inconsistent with this act.
History: 1936, Ex. Sess., Act 1, Imd. Eff. Dec. 24, 1936 ;-- Am. 1937, Act 347, Imd. Eff. Aug. 5, 1937 ;-- Am. 1939, Act 324, Imd. Eff. June 22, 1939 ;-- Am. 1941, Act 364, Imd. Eff. July 1, 1941 ;-- Am. 1954, Act 197, Imd. Eff. May 7, 1954 ;-- Am. 1977, Act 52, Imd. Eff. July 5, 1977 ;-- Am. 1985, Act 197, Imd. Eff. Dec. 26, 1985 ;-- Am. 1989, Act 232, Imd. Eff. Dec. 21, 1989 ;-- Am. 1991, Act 10, Eff. Apr. 1, 1992 ;-- Am. 2011, Act 268, Imd. Eff. Dec. 19, 2011
Compiler's Notes: For transfer of powers, duties, and functions of the Michigan Employment Security Commission to the Director of Employment Security; for vesting power to appoint the Director of Employment Security and the chairperson of the Michigan Employment Security Commission to the Governor; and, for abolition of the Michigan Employment Security Advisory Council and transfer of its powers and duties to the Michigan Employment Security Commission, see E.R.O. No. 1991-21 compiled at MCL 421.91 of the Michigan Compiled Laws.Amendatory Act 162 of 1994 was cited and shall be known as the “Delange, Geake, Cherry, Murphy wage record conversion act of 1994.”
The People of the State of Michigan enact:
| Document | Type | Description |
|---|---|---|
| Section 421.1 | Section | Michigan employment security act; short title. |
| Section 421.2 | Section | Declaration of public policy; findings. |
| Section 421.3 | Section | Bureau of worker's and unemployment compensation; policies; definitions. |
| Section 421.3a | Section | Michigan employment security advisory council; creation; appointment, qualifications, and terms of members; vacancies; compensation; expenses; recommendations; assistance and studies. |
| Section 421.3b | Section | Repealed. 2002, Act 192, Imd. Eff. Apr. 26, 2002. |
| Section 421.4 | Section | Rules and regulations; distribution; public hearing; notice; publication; copies furnished; effective date. |
| Section 421.4a | Section | Parking facility; approval of state administrative board. |
| Section 421.5 | Section | Employment security commission; director; appointment, term, and duties; annual salary; employees and assistants; delegation of authority; compensation and expenses; bond; appointment and qualifications of persons to assist employers and represent claimants. |
| Section 421.5a | Section | Advocacy assistance services; program. |
| Section 421.5b | Section | Bureau of worker's and unemployment compensation; creation within department of consumer and industry services; director; transfer of powers and duties by executive order. |
| Section 421.6 | Section | Conversion to wage record system; assistance of ad hoc committees; administrative costs. |
| Section 421.6a | Section | Unemployment insurance agency; destruction or disposal of documents; admissibility of reproduction as evidence. |
| Section 421.6b | Section | Appropriation for continuing work on unemployment insurance computer system improvement and capacity extension project; staff training; appointment, membership, and duties of computer project oversight committee; reversion of unexpended funds; work project. |
| Section 421.6c | Section | Emergency backup plan for computer system. |
| Section 421.6d | Section | Stabilization fund. |
| Section 421.6e | Section | Employee training program; operation; funding; purpose. |
| Section 421.6f | Section | Appropriation to fund improvements; expenditure; work project. |
| Section 421.6g | Section | Securing automated systems for fraud control and collections division; fraud control and investigation; funding; work project. |
| Section 421.7 | Section | Employment security commission; consolidation of divisions. |
| Section 421.8 | Section | Legislative purpose; annual review of maximum weekly benefit rates; comparison of consumers' price index; “base month” defined; determining percentage of increase or decrease; report. |
| Section 421.9 | Section | Employment security commission; subpoenas, issuance; enforcement; immunity. |
| Section 421.10 | Section | Administration fund; contingent fund. |
| Section 421.10a | Section | Obligation trust fund; creation; receipt and deposit of money or other assets; investment; money remaining in fund; administrator; expenditures; purpose. |
| Section 421.11 | Section | Unemployment agency; cooperation with federal agency; reports; compliance with federal regulations; "social security act" defined; disclosure of information; reciprocal agreements. |
| Section 421.11a | Section | Privilege; waiver. |
| Section 421.12 | Section | Acceptance of Wagner-Peyser act. |
| Section 421.12a | Section | Employment security; community work or training program; employee benefits. |
| Section 421.13 | Section | Contributions of employer; rate; obligation assessment payment; computation and payment; reports; quarterly wage report; apportioned payments; optional payment method; "eligible contributing employer" defined. |
| Section 421.13a | Section | Contributions of nonprofit organizations; reimbursement payments in lieu of contributions; “nonprofit organization” defined; notice of election to become reimbursing employer; surety bond, irrevocable letter of credit, or other security; applicability of subsection (4). |
| Section 421.13b | Section | Liability of nonprofit organization for reimbursement payments in lieu of contributions; termination of status as reimbursing employer; notice of termination; election to become reimbursing employer; notice of election; termination of election; extension of time; determination of status as employer. |
| Section 421.13c | Section | Payments by nonprofit organization to commission; computation; statement of charges; past due reimbursement payments. |
| Section 421.13d | Section | Delinquency of nonprofit organization in making reimbursement payments; termination of election; surety bond, irrevocable letter of credit, or other security. |
| Section 421.13e | Section | Group account for sharing cost of benefits; joint application; approval; notice; duration; termination; adding employer to or removing employer from group account; liability for benefit charges; effective date and application of amendatory provision. |
| Section 421.13f | Section | Reimbursement by nonprofit organization of benefits paid; charging benefits paid to rating account of nonprofit organization. |
| Section 421.13g | Section | Reimbursement payments by state in lieu of contributions; amount, time, and manner of payments; separate accounts; funds to which reimbursement payments charged; liability for reimbursement payments; election to be reimbursing employer; reimbursement of benefits; charging benefits to experience account; past due reimbursement payments. |
| Section 421.13h | Section | Provisions applicable to reimbursement payments in lieu of contributions and reimbursing employers. |
| Section 421.13i | Section | Governmental entity as reimbursing employer or contributing employer; election; notice; termination of election; liability for reimbursement payments; notice terminating status; extension of period for filing notice of election; determination of status as employer, effective date of election, and termination of prior election. |
| Section 421.13j | Section | Repealed. 1977, Act 277, Eff. Jan. 1, 1978. |
| Section 421.13k | Section | Payment by governmental entity of regular benefits plus extended benefits and training benefits; ascertainment of amount; statement of charges; reimbursement of fund; past due reimbursement payments; liability for and payment of contributions; delinquency; termination of election; reimbursement of benefits; charging benefits to experience account. |
| Section 421.13 l | Section | Indian tribe or tribal unit as employer; requirements. |
| Section 421.13m | Section | Professional employer organization; determination of status as liable employer; reporting of wages and payment of unemployment contributions; requirements; act or omission occurring before January 1, 2011; "professional employer organization" defined. |
| Section 421.14 | Section | Employing unit as employer and services as employment; determinations; notice; review and redetermination; collection of contributions; retroactive determination; introduction of determination, redetermination, or decision in proceeding involving claim for benefits. |
| Section 421.15 | Section | Delinquent contributions. |
| Section 421.15a | Section | Apportioned quarterly payments; interest on contribution obligation not required; failure to make payment. |
| Section 421.15b | Section | Repealed. 1951, Act 251, Imd. Eff. June 17, 1951. |
| Section 421.16 | Section | Adjustment or refund of contributions or interest. |
| Section 421.17 | Section | Nonchargeable benefits account; experience account; pooling of contributions; credits; exception during COVID-19 pandemic only. |
| Section 421.18 | Section | Definitions. |
| Section 421.19 | Section | Contribution rate of contributing employer; determination; reserve fund balance of reorganized employer; distressed employer; irrevocability of excess payments to experience account. |
| Section 421.19a | Section | Solvency tax; determination; payment; deferral; appropriation; repayment; payment of amounts obtained into contingent fund; crediting amounts to employers' experience accounts; past due payments; interest and penalties; adjustments and refunds; appeals; qualification for federal interest relief provisions and federal unemployment tax credits; forgiveness or postponement of interest. |
| Section 421.20 | Section | Charging benefits against employer's account; benefits improperly paid; basis; failure of employer to provide information; determination; appeal; separate determination of amount and duration of benefits; charge to base period employer; "separating employer" defined; limitation on charges for regular benefits; training benefits and extended benefits; notice of charges; listing; spouse as full-time member of United States Armed Forces; definitions. |
| Section 421.20a | Section | Benefits paid under protest or appeal; charge to suspense account; transfer to rating account or solvency account. |
| Section 421.21 | Section | Copies or listings of benefit checks charged against employer's account; copies as final determination; statement of total benefits charged against rating account; notice to employer of contribution rate; finality of statement or determination; extension; review and redetermination; appeal; hearing; adjustment of contribution. |
| Section 421.21a | Section | Allocation of benefit charges and contributions attributable to service performed under CETA-PSE. |
| Section 421.21b | Section | Seamen on American vessel on Great Lakes; benefits; seamen, definition. |
| Section 421.22 | Section | Transfer of business. |
| Section 421.22a | Section | Transfer of operations from another state to this state; conditions to being deemed qualified employer; withdrawing request for application of section; furnishing information to commission; wages, contributions, and benefits deemed paid in this state; accounts. |
| Section 421.22b | Section | Transferring trade or business with intent to reduce contribution rate or reimbursement payments. |
| Section 421.23 | Section | Coverage of employer; period. |
| Section 421.24 | Section | Cessation of employing unit as employer subject to act; termination of coverage; rescission of determination. |
| Section 421.25 | Section | Election that services be deemed employment subject to act; request for termination of coverage; termination of election. |
| Section 421.26 | Section | Unemployment compensation fund. |
| Section 421.26a | Section | Issuance of notes, bonds, financial instruments, or other evidences of indebtedness; use of proceeds; payment of unemployment obligation assessment; rate; collection; additional special subaccounts; agreements; definitions. |
| Section 421.26b | Section | Repealed. 1951, Act 251, Imd. Eff. June 17, 1951. |
| Section 421.27 | Section | Payment of benefits; extension of benefits subject to appropriation. |
| Section 421.27a | Section | Payment of benefits for certain periods of unemployment; amount; conditions; eligibility; limitation. |
| Section 421.27b | Section | Deducting and withholding income tax from unemployment benefits. |
| Section 421.27c | Section | Noncharging employer account; monetary redetermination; conditions. |
| Section 421.27n | Section | Repealed. 1965, Act 281, Eff. Sept. 5, 1965. |
| Section 421.28 | Section | Eligibility to receive benefits; conditions; waiver extension for extended layoff in 2021. |
| Section 421.28a | Section | Preservation of unused credit weeks or benefit entitlement during period of continuous involuntary disability; request; written statement from physician; copies; extension of benefit year; payment of benefits; “continuous disability” defined; inability to establish benefit year; cessation of entitlement to benefits; applicability; dissemination of information to interested parties; date of request. |
| Section 421.28b | Section | Definitions; MCL 421.28c to 421.28m. |
| Section 421.28c | Section | Shared-work plan; application; requirements; manner; contents; approval of more than 1 plan. |
| Section 421.28d | Section | Shared-work plan; approval by unemployment agency; requirements; reduction percentage. |
| Section 421.28e | Section | Shared-work plan; approval or disapproval by unemployment agency. |
| Section 421.28f | Section | Shared-work plan; effective period. |
| Section 421.28g | Section | Compensation. |
| Section 421.28h | Section | Schedule; filing compensation claims; benefits; funding of benefits. |
| Section 421.28i | Section | Modification of shared-work plan. |
| Section 421.28j | Section | Termination of shared-work plan; good cause. |
| Section 421.28k | Section | Authority of unemployment agency to approve, disapprove, modify, or terminate shared-work plan. |
| Section 421.28 l | Section | Report. |
| Section 421.28m | Section | Effect of approval or disapproval by federal government. |
| Section 421.29 | Section | Disqualification from benefits; exception during COVID-19 pandemic. |
| Section 421.29a | Section | Disqualification from benefits; exception for domestic violence; documentation; definitions. |
| Section 421.29m, 421.29n | Section | Repealed. 1965, Act 281, Eff. Sept. 5, 1965. |
| Section 421.30 | Section | Benefits inalienable. |
| Section 421.31 | Section | Waiver of rights; limitation of fees. |
| Section 421.32 | Section | Claims for benefits; examination; determination; notice. |
| Section 421.32a | Section | Review of determination; redetermination; notice; reconsideration; applicability of redetermination, disqualification, or ineligibility to compensable period; finality of redetermination; additional transfer provisions; finding of fraud; change in mailing address. |
| Section 421.32b | Section | Internet site; establishment; access; purpose; protest or appeal. |
| Section 421.32c | Section | Reconsideration of claims filed after March 15, 2020; prohibited solely on applicability of executive order. |
| Section 421.32d | Section | Unemployment agency; hiring new employees; limitation. |
| Section 421.33 | Section | Assignment to administrative law judge; appeals and transferred matters; consolidation of cases; procedure for appeal to Michigan compensation appellate commission. |
| Section 421.34 | Section | Appeal to Michigan compensation appellate commission from findings of fact and decision or from denial of motion for rehearing or reopening. |
| Section 421.35, 421.36 | Section | Repealed. 2011, Act 269, Imd. Eff. Dec. 19, 2011. |
| Section 421.37 | Section | Fees for subpoenaed witnesses; fees and expenses of proceedings; issuance of subpoena. |
| Section 421.38 | Section | Review by circuit court; direct appeal of order or decision of administrative law judge; unemployment agency as party; manner of appeal. |
| Section 421.39 | Section | Employment security act; definitions. |
| Section 421.40 | Section | “Employing unit” defined. |
| Section 421.41 | Section | “Employer” defined. |
| Section 421.41a | Section | Repealed. 1951, Act 251, Imd. Eff. June 17, 1951. |
| Section 421.42 | Section | “Employment” defined. |
| Section 421.42a | Section | Coverage of services; determination; penalties and interests. |
| Section 421.43 | Section | Services excluded from term "employment." |
| Section 421.44 | Section | “Remuneration” and “wages” defined. |
| Section 421.44a | Section | “Previously uncovered services” defined; wages to include remuneration for previously uncovered services; limitation on use of remuneration and on charging of benefits; claims to which section applicable; retroactive claims; remuneration for previously uncovered services; identification and notification of individuals entitled to benefits; charging certain amounts of benefits to state only; reimbursement of commission. |
| Section 421.45 | Section | Base periods; definition. |
| Section 421.46 | Section | “Benefit year” defined; conditions; rights of claimant. |
| Section 421.46a | Section | Establishment of benefit year where individual unable to establish benefit year under MCL 421.46; conditions; calculation of average weekly wage; charge to employers; extended benefits; claim. |
| Section 421.47 | Section | Calendar quarter; definition. |
| Section 421.48 | Section | "Unemployed" explained; amounts considered wages or remuneration; leave of absence; elected layoff; COVID-19 absence. |
| Section 421.48a | Section | Transmission or receipt by mail. |
| Section 421.49 | Section | Last day of protest or appeal period falling on Saturday, Sunday, or legal holiday; running of statutory periods. |
| Section 421.50 | Section | “Week" defined. |
| Section 421.50a | Section | “Governmental entity” defined. |
| Section 421.51 | Section | “Benefits” and “average weekly wage” defined. |
| Section 421.51a | Section | Repealed. 1951, Act 251, Imd. Eff. June 17, 1951. |
| Section 421.52 | Section | State; definition. |
| Section 421.53 | Section | “Hospital,”“institution of higher education,” and “educational institution other than institution of higher education,” defined. |
| Section 421.54 | Section | Sanctions; penalties. |
| Section 421.54a | Section | Requiring individual to make false statement or representation regarding benefit or other payment as condition of employment; remedies; applicability; disposition of amounts recovered; effective date of section. |
| Section 421.54b | Section | Conspiracy; applicability; penalties; disposition of amounts recovered; effective date of section. |
| Section 421.54c | Section | Embezzlement; penalties; applicability; disposition of amounts recovered; effective date of section. |
| Section 421.54f | Section | Report of fraudulent claim; contents; submission of affidavit by affected individual; duties of unemployment agency; appeal of determination; determination of identity theft; credit to employer's account; misrepresentation; affected individual as interested party; definitions. |
| Section 421.54g | Section | Report regarding claims submitted by impostors; contents; definitions. |
| Section 421.54h | Section | Appointment of individual to perform certain activities; "impostor" defined. |
| Section 421.55 | Section | Catchline headings of section not part of act. |
| Section 421.56 | Section | American vessel, American aircraft; definitions. |
| Section 421.57 | Section | Amendment or repeal of act. |
| Section 421.58 | Section | Suspension of provisions. |
| Section 421.59 | Section | Repeal. |
| Section 421.60 | Section | Advance from federal fund; repayment. |
| Section 421.60a | Section | Protection of deaf. |
| Section 421.61 | Section | Repealed. 1951, Act 251, Imd. Eff. June 17, 1951. |
| Section 421.62 | Section | Recovery of improperly paid benefits. |
| Section 421.63 | Section | Repealed. 1971, Act 231, Imd. Eff. Jan. 3, 1972. |
| Section 421.64 | Section | Payment of extended benefits. |
| Section 421.65 | Section | Effective dates of Act 231 of 1971; recomputation of benefits. |
| Section 421.66 | Section | Effective dates of Act 104 of 1974; recomputation of benefits. |
| Section 421.67 | Section | Effective dates of Act 110 of 1975; recomputation of weekly benefit rate and maximum amount of benefits; supplemental benefits. |
| Section 421.67a | Section | Repealed. 1996, Act 535, Imd. Eff. Jan. 13, 1997. |
| Section 421.67b | Section | Annual report to legislature; validating representations made by employer to legislature. |
| Section 421.68, 421.69 | Section | Repealed. 1982, Act 535, Eff. Jan. 2, 1983. |
| Section 421.70 | Section | Effective date of Act 358 of 1980; recomputation of weekly benefit rate and maximum amount of benefits; supplemental benefits. |
| Section 421.71 | Section | Effective dates of Act 535 of 1982. |
| Section 421.72 | Section | Effective date of Act 164 of 1983. |
| Section 421.73 | Section | Rounding benefits to next lower full dollar. |
| Section 421.75 | Section | Conversion date to wage record system; effective date; report. |