Oppose
Employer Rights

Allow Independent Contractors to Collect Unemployment

Staff Contact

Wendy Block

Vice President of Business Advocacy and Member Engagement

(517) 371-7678 | wblock@michamber.com

Summary of Bill & What It Means to You

HB 4338, SB 172 – Allow Independent Contractors to Collect Unemployment.  This legislation would allow independent contractors to be eligible to collect state unemployment benefits during a state-declared emergency and replaces the IRS 20 Factor Test to an ABC test for determining if a worker is an independent contractor.

Chamber Position

OPPOSE:   Michigan’s Unemployment Trust Fund, the 100 percent employer-financed fund that pays benefits to unemployed workers, is nearly bankrupt due to COVID-19 benefits.  Because these individuals do not pay into the UI system, it is unfair to allow them to collect benefits and force employers to absorb these benefit costs.  Rather than finding ways to keep more workers on unemployment benefits, Michigan should focus on fully reopening all sectors of Michigan’s economy and finding ways to get people back to work.

Bill Sponsors

This bill is a Job Killer

Primary Sponsor: Rep. Jim Haadsma, District 62

Additional Supporter
Representatives: Terry Sabo, Felicia Brabec, Mary Cavanagh, Joseph Tate, Angela Witwer, Yousef Rabhi, Brenda Carter, Nate Shannon, William Sowerby, Kara Hope, Tim Sneller, Jim Ellison, Kevin Coleman, Stephanie Young, Matt Koleszar, Mari Manoogian, Ranjeev Puri, Kevin Hertel, Abraham Aiyash, Tyrone Carter, John Cherry, Samantha Steckloff, Sara Cambensy, Alex Garza, Ronnie Peterson, Regina Weiss, Cynthia Neeley, Rachel Hood, Abdullah Hammoud, Julie Brixie, Helena Scott, Kyra Harris Bolden, Lori Stone, Tullio Liberati, Cara Clemente, Cynthia Johnson, Shri Thanedar, Padma Kuppa, Kelly Breen, Laurie Pohutsky, Darrin Camilleri, Donna Lasinski, Jewell Jones, Sarah Anthony, Tenisha Yancey

Primary Sponsor: Sen. Mallory McMorrow, District 13

Additional Supporter
Senators: Winnie Brinks, Erika Geiss, Betty Jean Alexander, Dayna Polehanki, Jeremy Moss, Curtis Hertel

Related Issues

Support
Workforce Training Grants for Employers

The Going Pro Training Fund is aimed at helping employers address their unique talent needs. It does so by allowing employers to apply for awards to assist them in the training, developing and retaining current and newly hired employees. Training funded by the Talent Fund must be short-term and fill a demonstrated talent need experienced by the employer. Training must lead to a credential for a skill that is transferable and recognized by the industry.

Support
Improve Access to Affordable Housing

SBs 360, 361, 363, 364, 422, 432 and HBs 4646, 4648, 4649, 4650, 4827 would create and expand tools for local governments to support the development or rehabilitation of housing supply that is attainable to more of our citizens and workers. This legislative package is focused on creating and expanding tools for local governments to support the development or rehabilitation of housing supply that is attainable to more of our citizens and workforce.

Support
Improve Access to Affordable Childcare

HBs 5041, 5042, 5043, 5044, 5045, 5046, 5047 and 5048 would improve access to quality and affordable childcare in Michigan by providing the flexibility needed to help providers start – and stay in – business while continuing to prioritize the safety of children.

Support
Fix Michigan’s COVID-19 Anti-Relation Law

HB 5244 would eliminate the mandatory isolation/quarantine provisions under Michigan’s anti-retaliation law.

Support
Ensure Background Check Information is Available

HB 5368 would require court records to be open to the public without redaction of an individual’s name or date of birth. This would ensure that publicly available identifying information continues to be available without delay for employment, housing and other background checks.

Oppose
Vaccine Mandates

In addition to the Biden Administration’s proposed COVID-19 vaccine mandate, the Legislature has introduced a number of bills aimed at preventing private sector employers from requiring the COVID-19 vaccine (HBs 4471, 4791, 4792) and/or holding employers liable for adverse reactions to the vaccine if they mandate it (HB 5352).

Oppose
Allow seasonal employees to collect unemployment insurance (UI) benefits during their off-season (currently disqualified)

HB 4339, SB 173 – Allow seasonal employees to collect unemployment insurance (UI) benefits during their off-season (currently disqualified).

Oppose
Allow Independent Contractors to Collect Unemployment

HB 4338, SB 172 – Allow Independent Contractors to Collect Unemployment.  This legislation would allow independent contractors to be eligible to collect state unemployment benefits during a state-declared emergency and replaces the IRS 20 Factor Test to an ABC test for determining if a worker is an independent contractor.

Oppose
Increase the Number of Individuals Eligible for Unemployment Benefits

HB 4337, SB 171 – Increase the Number of Individuals Eligible for Unemployment Benefits.  Drops the high quarter earnings eligibility requirement from $4,744 to $1,235.  Today, to be eligible for benefits you must, among other things, either have wages in at least two quarters in the base period totaling the amount set in statute.  This bill would have the net effect of allowing more claimants, particularly those with little or an unstable attachment to the job market, to collect UI benefits.

Oppose
Increase Unemployment Benefit Payout

HB 4334, SB 170 – Increase Unemployment Benefit Payout. This legislation would increase unemployment insurance (UI) benefit duration from a maximum of 20 weeks to 26 weeks, increases the dependent allowance from $6 per child to $20 per child and increases the number of acceptable dependents from fix to six under the unemployment insurance (UI) program.  The dependent allowance gives claimants an extra amount in their UI benefit checks based on the number of dependents they claim.

Oppose
Increase Unemployment Benefit Amount #

HB 4335, SB 169 – Increase Unemployment Benefit Amount. This legislation would increase unemployment insurance (UI) benefits from a maximum of $362 per week to $593 and to 58% of the state average weekly wage at the start of January 2022.

Oppose
Increase Unemployment Benefit Amount

HB 4336, SB 168 –  Increase Unemployment Benefit Amount.  This legislation would increase the weekly benefit unemployment insurance (UI) benefit amount to 6.1% of a worker’s highest quarter earnings.

Oppose
Retroactive Workers’ Compensation Coverage Mandate for COVID Claims

SB 161 (Sen. McCann): Retroactive Workers’ Compensation Coverage Mandate for COVID Claims.  This legislation seeks to require workers’ compensation to cover all COVID-19 related medical claims for “essential workers” retroactive to March 10, 2020.  This mandate would apply regardless of whether the worker could prove he or she contracted COVID-19 in the workplace.

Oppose
INCREASE UNEMPLOYMENT BENEFIT DURATION

SB 2 (Sen. Wojno):  Increase Unemployment Benefit Duration.  This legislation would increase the number of weeks an unemployed worker is eligible for state unemployment insurance (UI) benefits from 20 to 26.

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