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Governor Issues New Unemployment Executive Order, Includes an Extension in Non-Charging of Benefits to Individual Employers

April 23, 2020

Governor Whitmer issued a new Executive Order on unemployment insurance (UI) last night.  It builds upon her earlier E.O. expanding eligibility for unemployment benefits during the COVID-19 pandemic, including the noncharging of benefits to employers who were forced to lay-off workers due to the “Stay Home” Order. The order also expands the state’s Work Share program.

Michigan saw another 134,199 people file first-time claims for unemployment benefits last week, pushing total claims since the COVID-19 outbreak began to almost 1.2 million.

The E.O. is the third related to UI benefits since the pandemic hit.  The E.O. does the following:

  • Specifies “any benefit paid to a claimant who is laid off or placed on a leave of absence must not be charged to the account of the employer or employers that otherwise would have been charged but instead must be charged to the Unemployment Insurance Agency’s non-chargeable account.”
  • Gives more flexibility on the Work Share program, allowing the state to approve an employer’s participation in the program upon application, regardless of whether they meet the statutory requirements.  This change will allow more employers to participate in the Work Share program on a temporary basis.  In addition, the E.O. allows employers more flexibility on the number of hours that can be reduced.  Previously, the Work Share program allowed an hourly reduction between 15 and 45 percent.  The E.O. now allows a reduction between 10 and 60 percent.
  • Specifies an individual must be considered to have left work involuntarily for medical reasons if that individual leaves work for any of the following reasons:
    • The individual is under self-isolation or self-quarantine in response to elevated risk from COVID-19 due to being immuno-compromised.
    • The individual has displayed at least one of the principal symptoms of COVID-19, which are a fever, atypical cough, and atypical shortness of breath.
    • The individual has had contact in the last 14 days with someone with a confirmed diagnosis of COVID-19. Contact for the purposes of healthcare exposures is defined as follows: a) being within approximately 6 feet (2 meters) of a person with COVID-19 for a prolonged period of time, without appropriate personal protective equipment consistent with Department of Health and Human Services recommendations; or b) having unprotected direct contact with infectious secretions or excretions of the patient (e.g., being coughed on, touching used tissues with a bare hand).
    • The individual is required to care for someone with a confirmed diagnosis of COVID-19.
    • The individual has a family care responsibility as a result of a government directive.
  • Gives flexibility on the 28-day rule related to the last day of employment and filing the claim.
  • Allows anyone with an active unemployment claim to receive up to 26 weeks of benefits
  • Suspends the requirement for an individual seeking unemployment to request a registration and work search waiver from their employer

If you are a Michigan Chamber member and need help with unemployment issues, please contact Wendy Block at wblock@michamber.com.

April 23, 2020

Governor Whitmer issued a new Executive Order on unemployment insurance (UI) last night.  It builds upon her earlier E.O. expanding eligibility for unemployment benefits during the COVID-19 pandemic, including the noncharging of benefits to employers who were forced to lay-off workers due to the “Stay Home” Order. The order also expands the state’s Work Share program.

Michigan saw another 134,199 people file first-time claims for unemployment benefits last week, pushing total claims since the COVID-19 outbreak began to almost 1.2 million.

The E.O. is the third related to UI benefits since the pandemic hit.  The E.O. does the following:

  • Specifies “any benefit paid to a claimant who is laid off or placed on a leave of absence must not be charged to the account of the employer or employers that otherwise would have been charged but instead must be charged to the Unemployment Insurance Agency’s non-chargeable account.”
  • Gives more flexibility on the Work Share program, allowing the state to approve an employer’s participation in the program upon application, regardless of whether they meet the statutory requirements.  This change will allow more employers to participate in the Work Share program on a temporary basis.  In addition, the E.O. allows employers more flexibility on the number of hours that can be reduced.  Previously, the Work Share program allowed an hourly reduction between 15 and 45 percent.  The E.O. now allows a reduction between 10 and 60 percent.
  • Specifies an individual must be considered to have left work involuntarily for medical reasons if that individual leaves work for any of the following reasons:
    • The individual is under self-isolation or self-quarantine in response to elevated risk from COVID-19 due to being immuno-compromised.
    • The individual has displayed at least one of the principal symptoms of COVID-19, which are a fever, atypical cough, and atypical shortness of breath.
    • The individual has had contact in the last 14 days with someone with a confirmed diagnosis of COVID-19. Contact for the purposes of healthcare exposures is defined as follows: a) being within approximately 6 feet (2 meters) of a person with COVID-19 for a prolonged period of time, without appropriate personal protective equipment consistent with Department of Health and Human Services recommendations; or b) having unprotected direct contact with infectious secretions or excretions of the patient (e.g., being coughed on, touching used tissues with a bare hand).
    • The individual is required to care for someone with a confirmed diagnosis of COVID-19.
    • The individual has a family care responsibility as a result of a government directive.
  • Gives flexibility on the 28-day rule related to the last day of employment and filing the claim.
  • Allows anyone with an active unemployment claim to receive up to 26 weeks of benefits
  • Suspends the requirement for an individual seeking unemployment to request a registration and work search waiver from their employer

If you are a Michigan Chamber member and need help with unemployment issues, please contact Wendy Block at wblock@michamber.com.