The Michigan Chamber of Commerce reaffirms its support for a fair and balanced unemployment insurance (UI) system that provides an adequate level of benefits to employees who are temporarily unemployed through no fault of their own at a cost to employers that is affordable and competitive with other states. The Chamber supports enactment of cost-saving reform measures such as a establishing a one-week waiting period; strengthening requalification requirements for claimants who voluntarily quit or are discharged for misconduct; strengthening seeking work requirements; and lowering the minimum UI tax rate for employers who have had no benefits charged to their account for five years or more.

The Michigan Chamber of Commerce is opposed to any legislation that would reestablish the costly practice of automatic annual UI benefit increases. We believe the legislature should act on any increases in benefits as may be deemed necessary. Increases in UI benefits should be carefully targeted to help working families by increasing dependency allowances.

Preserving the financial solvency of Michigan’s UI trust fund should continue to be a top priority for the legislature and the administration. Benefit levels and eligibility standards should be considered in the context of maintaining a solvent trust fund, and an equitable tax burden on employers that encourages investment and job creation in Michigan.