HOUSE BILL No. 5446 January 14, 1998, Introduced by Reps. Hale, Wallace, Schermesser, Hood, Bogardus, Goschka, Wojno, Price, Prusi, Rison, Scott, Murphy, Vaughn, Basham, Willard, Tesanovich, DeHart, Baade, Emerson, Griffin, Dobronski, Olshove, Curtis, Cherry, Kelly, Varga and Parks and referred to the Committee on Labor and Occupational Safety. A bill to amend 1936 (Ex Sess) PA 1, entitled "Michigan employment security act," by amending section 29 (MCL 421.29), as amended by 1995 PA 25. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 29. (1) An individual is disqualified from receiving 2 benefits if he or she: 3 (a) Left work voluntarily without good cause attributable to 4 the employer or employing unit. However, if the individual has 5 an established benefit year in effect and during that benefit 6 year leaves unsuitable work within 60 days after the beginning of 7 that work, the leaving does not disqualify the individual. 8 (b) Was discharged for misconduct connected with the 9 individual's work or for intoxication while at work unless the 10 discharge was subsequently reduced to a disciplinary layoff or 11 suspension. 01044'97 DMS 2 1 (c) Failed without good cause to apply for available 2 suitable work after receiving from the employment office or the 3 commission notice of the availability of that work. 4 (d) Failed without good cause while unemployed to report to 5 the individual's former employer or employing unit within a rea- 6 sonable time after that employer or employing unit provided 7 notice of the availability of an interview concerning available 8 suitable work with the former employer or employing unit. 9 (e) Failed without good cause to accept suitable work 10 offered to the individual or to return to the individual's cus- 11 tomary self-employment, if any, when directed by the employment 12 office or the commission. 13 (f) Lost his or her job due to absence from work resulting 14 from a violation of law for which the individual was convicted 15 and sentenced to jail or prison. This subdivision does not apply 16 if conviction of an individual results in a sentence to county 17 jail under conditions of day parole as provided inAct No. 60 of18the Public Acts of 1962, being sections 801.251 to 801.258 of the19Michigan Compiled Laws1962 PA 60, MCL 801.251 TO 801.258, or if 20 the conviction was for a traffic violation that resulted in an 21 absence of less than 10 consecutive work days from the 22 individual's place of employment. 23 (g) Is discharged, whether or not the discharge is subse- 24 quently reduced to a disciplinary layoff or suspension, for par- 25 ticipation ineither of the following: (i) AA strike or other 26 concerted action in violation of an applicable collective 27 bargaining agreement that results in curtailment of work or 01044'97 3 1 restriction of or interference with production. (ii) AOR A 2 wildcat strike or other concerted action not authorized by the 3 individual's recognized bargaining representative. AN INDIVIDUAL 4 IS NOT DISQUALIFIED FROM RECEIVING BENEFITS UNDER THIS SUBDIVI- 5 SION IF THE EMPLOYER INVOLVED IN THE LABOR DISPUTE REFUSES TO 6 BARGAIN OR TO BARGAIN IN GOOD FAITH WITH THE INDIVIDUAL'S RECOG- 7 NIZED BARGAINING REPRESENTATIVE. 8 (h) Was discharged for an act of assault and battery con- 9 nected with the individual's work. 10 (i) Was discharged for theft connected with the individual's 11 work. 12 (j) Was discharged for willful destruction of property con- 13 nected with the individual's work. 14 (k) Committed a theft after receiving notice of a layoff or 15 discharge, but before the effective date of the layoff or dis- 16 charge, resulting in loss or damage to the employer who would 17 otherwise be chargeable for the benefits, regardless of whether 18 the individual qualified for the benefits before the theft. 19 (l) Was employed by a temporary help firm, which as used in 20 this section means an employer whose primary business is to pro- 21 vide a client with the temporary services of 1 or more individu- 22 als under contract with the employer, to perform services for a 23 client of that firm if each of the following conditions is met: 24 (i) The temporary help firm provided the employee with a 25 written notice before the employee began performing services for 26 the client stating in substance both of the following: 01044'97 4 1 (A) That within 7 days after completing services for a 2 client of the temporary help firm, the employee is under a duty 3 to notify the temporary help firm of the completion of those 4 services. 5 (B) That a failure to provide the temporary help firm with 6 notice of the employee's completion of services pursuant to 7 sub-subparagraph (A) constitutes a voluntary quit that will 8 affect the employee's eligibility for unemployment compensation 9 should the employee seek unemployment compensation following com- 10 pletion of those services. 11 (ii) The employee did not provide the temporary help firm 12 with notice that the employee had completed his or her services 13 for the client within 7 days after completion of his or her serv- 14 ices for the client. 15 (m) Was discharged for (i) Illegally ingesting, injecting, 16 inhaling, or possessing a controlled substance on the premises of 17 the employer, (ii) Refusing to submit to a drug test that was 18 required to be administered in a nondiscriminatory manner, or 19 (iii) Testing positive on a drug test, if the test was adminis- 20 tered in a nondiscriminatory manner. If the worker disputes the 21 result of the testing, a generally accepted confirmatory test 22 shall be administered and shall also indicate a positive result 23 for the presence of a controlled substance before a disqualifica- 24 tion of the worker under this subdivision. As used in this 25 subdivision: 26 (A) "Controlled substance" means that term as defined in 27 section 7104 of the public health code,Act No. 368 of the01044'97 5 1Public Acts of 1978, being section 333.7104 of the Michigan2Compiled Laws1978 PA 368, MCL 333.7104. 3 (B) "Drug test" means a test designed to detect the illegal 4 use of a controlled substance. 5 (C) "Nondiscriminatory manner" means administered impar- 6 tially and objectively in accordance with a collective bargaining 7 agreement, rule, policy, a verbal or written notice, or a 8 labor-management contract. 9 (n) Has an income exceeding $100,000.00 for the calendar 10 year in which he or she applies for benefits. This subdivision 11 shall not take effect unless both of the following occur: 12 (i) Within 30 days of the effective date of the act that 13 added subdivision (l), the governor requests from the United 14 States department of labor a determination confirming whether 15 this subdivision is in conformity with the federal unemployment 16 tax act, chapter 23, of the internal revenue code of 1986, 26 17 U.S.C. 3301 to 3311 and the social security act, 49 Stat. 620, 18 and whether conformity with those federal acts is a condition for 19 a full tax credit against the tax imposed under the federal unem- 20 ployment tax act (FUTA), or is a condition for state receipt of 21 federal administrative grant funds under the social security 22 act. 23 (ii) The United States department of labor determines that 24 this subdivision is in conformity with the acts described in sub- 25 paragraph (i), or verifies that conformity with those federal 26 acts is not a condition for a tax credit or a grant described in 27 subparagraph (i). 01044'97 6 1 (2) A disqualification under subsection (1) begins the week 2 in which the act or discharge that caused the disqualification 3 occurs and continues until the disqualified individual requali- 4 fies under subsection (3), except that for benefit years begin- 5 ning before the conversion date prescribed in section 75, the 6 disqualification does not prevent the payment of benefits if 7 there are credit weeks, other than multiemployer credit weeks, 8 after the most recent disqualifying act or discharge. 9 (3) After the week in which the disqualifying act or dis- 10 charge described in subsection (1) occurs, an individual who 11 seeks to requalify for benefits is subject to all of the 12 following: 13 (a) For benefit years established before the conversion date 14 described in section 75, the individual shall complete 6 requali- 15 fying weeks if he or she was disqualified under 16 subsection (1)(c), (d), (e), (f), (g), or (l), or 13 requalifying 17 weeks if he or she was disqualified under subsection (1)(h), (i), 18 (j), (k), or (m). A requalifying week required under this sub- 19 section shall be each week in which the individual does any of 20 the following: 21 (i) Earns or receives remuneration in an amount at least 22 equal to an amount needed to earn a credit week, as that term is 23 defined in section 50. 24 (ii) Otherwise meets all of the requirements of this act to 25 receive a benefit payment if the individual were not disqualified 26 under subsection (1). 01044'97 7 1 (iii) Receives a benefit payment based on credit weeks 2 subsequent to the disqualifying act or discharge. 3 (b) For benefit years established before the conversion date 4 prescribed in section 75, if the individual is disqualified under 5 subsection (1)(a) or (b), he or she shall requalify, after the 6 week in which the disqualifying discharge occurred by earning in 7 employment for an employer liable under this act or the unemploy- 8 ment compensation act of another state an amount equal to, or in 9 excess of, 7 times the individual's potential weekly benefit 10 rate, calculated on the basis of employment with the employer 11 involved in the disqualification, or by earning in employment for 12 an employer liable under this act or the unemployment compensa- 13 tion act of another state an amount equal to, or in excess of, 40 14 times the state minimum hourly wage times 7, whichever is the 15 lesser amount. 16 (c) For benefit years established before the conversion date 17 prescribed in section 75, a benefit payable to an individual dis- 18 qualified under subsection (1)(a) or (b), shall be charged to the 19 nonchargeable benefits account, and not to the account of the 20 employer with whom the individual was involved in the 21 disqualification. 22 (d) For benefit years beginning after the conversion date 23 prescribed in section 75, subsequent to the week in which the 24 disqualifying act or discharge occurred, an individual shall com- 25 plete 6 requalifying weeks if he or she was disqualified under 26 subsection (1)(c), (d), (e), (f), (g), or (l), or 13 requalifying 27 weeks if he or she was disqualified under subsection (1)(h), (i), 01044'97 8 1 (j), (k), or (m). A requalifying week required under this 2 subsection shall be each week in which the individual does any of 3 the following: 4 (i) Earns or receives remuneration in an amount equal to at 5 least 1/13 of the minimum amount needed in a calendar quarter of 6 the base period for an individual to qualify for benefits, 7 rounded down to the nearest whole dollar. 8 (ii) Otherwise meets all of the requirements of this act to 9 receive a benefit payment if the individual were not disqualified 10 under subsection (1). 11 (e) For benefit years beginning after the conversion date 12 prescribed in section 75, if the individual is disqualified under 13 subsection (1)(a) or (b), he or she shall requalify, after the 14 week in which the disqualifying act or discharge occurred by 15 earning in employment for an employer liable under this act or 16 the unemployment compensation law of another state at least the 17 lesser of the following: 18 (i) Seven times the individual's weekly benefit rate. 19 (ii) Forty times the state minimum hourly wage times 7. 20 (f) A benefit payable to the individual disqualified or sep- 21 arated under disqualifying circumstances under subsection (1)(a) 22 or (b), shall be charged to the nonchargeable benefits account, 23 and not to the account of the employer with whom the individual 24 was involved in the separation. Benefits payable to an individ- 25 ual determined by the commission to be separated under disquali- 26 fying circumstances shall not be charged to the account of the 27 employer involved in the disqualification for any period after 01044'97 9 1 the employer notifies the commission of the claimant's possible 2 ineligibility or disqualification. If a disqualifying act or 3 discharge occurs during the individual's benefit year, any bene- 4 fits that may become payable to the individual in a later benefit 5 year based on employment with the employer involved in the dis- 6 qualification shall be charged to the nonchargeable benefits 7 account. 8 (4) The maximum amount of benefits otherwise available under 9 section 27(d) to an individual disqualified under subsection (1) 10 is subject to all of the following conditions: 11 (a) For benefit years established before the conversion date 12 prescribed in section 75, if the individual is disqualified under 13 subsection (1)(c), (d), (e), (f), (g), or (l) and the maximum 14 amount of benefits is based on wages and credit weeks earned from 15 an employer before an act or discharge involving that employer, 16 the amount shall be reduced by an amount equal to the 17 individual's weekly benefit rate as to that employer multiplied 18 by the lesser of either of the following: 19 (i) The number of requalifying weeks required of the indi- 20 vidual under this section. 21 (ii) The number of weeks of benefit entitlement remaining 22 with that employer. 23 (b) If the individual has insufficient or no potential bene- 24 fit entitlement remaining with the employer involved in the dis- 25 qualification in the benefit year in existence on the date of the 26 disqualifying determination, a reduction of benefits described in 27 this subsection shall apply in a succeeding benefit year with 01044'97 10 1 respect to any benefit entitlement based upon credit weeks earned 2 with the employer before the disqualifying act or discharge. 3 (c) For benefit years established before the conversion date 4 prescribed in section 75, an individual disqualified under sub- 5 section (1)(h), (i), (j), (k), or (m) is not entitled to benefits 6 based on wages and credit weeks earned before the disqualifying 7 act or discharge with the employer involved in the 8 disqualification. 9 (d) The benefit entitlement of an individual disqualified 10 under subsection (1)(a) or (b) is not subject to reduction as a 11 result of that disqualification. 12 (e) A denial or reduction of benefits under this subsection 13 does not apply to benefits based upon multiemployer credit 14 weeks. 15 (f) For benefit years established after the conversion date 16 prescribed in section 75, if the individual is disqualified under 17 subsection (1)(c), (d), (e), (f), (g), or (l), the maximum number 18 of weeks otherwise applicable in calculating benefits for the 19 individual under section 27(d) shall be reduced by the lesser of 20 the following: 21 (i) The number of requalifying weeks required of the indi- 22 vidual under this subsection. 23 (ii) The number of weeks of benefit entitlement remaining on 24 the claim. 25 (g) For benefit years beginning after the conversion date 26 prescribed in section 75, the benefits of an individual 27 disqualified under subsection (1)(h), (i), (j), (k), or (m) shall 01044'97 11 1 be reduced by 13 weeks and any weekly benefit payments made to 2 the claimant thereafter shall be reduced by the portion of the 3 payment attributable to base period wages paid by the base period 4 employer involved in a disqualification under subsection (1)(h), 5 (i), (j), (k), or (m). 6 (5) If an individual leaves work to accept permanent 7 full-time work with another employer and performs services for 8 that employer, or if an individual leaves work to accept a recall 9 from a former employer: 10 (a) Subsection (1) does not apply. 11 (b) Wages earned with the employer whom the individual last 12 left, including wages previously transferred under this subsec- 13 tion to the last employer, for the purpose of computing and 14 charging benefits, are wages earned from the employer with whom 15 the individual accepted work or recall, and benefits paid based 16 upon those wages shall be charged to that employer. 17 (c) When issuing a determination covering the period of 18 employment with a new or former employer described in this sub- 19 section, the commission shall advise the chargeable employer of 20 the name and address of the other employer, the period covered by 21 the employment, and the extent of the benefits that may be 22 charged to the account of the chargeable employer. 23 (6) In determining whether work is suitable for an individu- 24 al, the commission shall consider the degree of risk involved to 25 the individual's health, safety, and morals, the individual's 26 physical fitness and prior training, the individual's length of 27 unemployment and prospects for securing local work in the 01044'97 12 1 individual's customary occupation, and the distance of the 2 available work from the individual's residence. Additionally, 3 the commission shall consider the individual's experience and 4 prior earnings, subject to the following limitation: 5 (a) An individual unemployed for 1 to 12 weeks who refuses 6 an offer of work determined to be suitable under this section 7 shall be denied benefits if the pay rate for that work is at 8 least 80% of the gross pay rate he or she received immediately 9 before becoming unemployed. 10 (b) An individual unemployed for 13 to 20 weeks who refuses 11 an offer of work determined to be suitable under this section 12 shall be denied benefits if the pay rate for that work is at 13 least 75% of the gross pay rate he or she received immediately 14 before becoming unemployed. 15 (c) An individual unemployed for more than 20 weeks who 16 refuses an offer of work determined to be suitable under this 17 section shall be denied benefits if the pay rate for that work is 18 at least 70% of the gross pay rate he or she received immediately 19 before becoming unemployed. 20 (7) Work is not suitable and benefits shall not be denied 21 under this act to an otherwise eligible individual for refusing 22 to accept new work under any of the following conditions: 23 (a) If the position offered is vacant due directly to a 24 strike, lockout, or other labor dispute. 25 (b) If the remuneration, hours, or other conditions of the 26 work offered are substantially less favorable to the individual 27 than those prevailing for similar work in the locality. 01044'97 13 1 (c) If as a condition of being employed, the individual 2 would be required to join a company union or to resign from or 3 refrain from joining a bona fide labor organization. 4 (8) All of the following apply to an individual who seeks 5 benefits under this act: 6 (a) An individual is disqualified from receiving benefits 7 for a week in which the individual's total or partial unemploy- 8 ment is due to either of the following: 9 (i) A labor dispute in active progress at the place at which 10 the individual is or was last employed, or a shutdown or start-up 11 operation caused by that labor dispute. 12 (ii) A labor dispute, other than a lockout, in active 13 progress or a shutdown or start-up operation caused by that labor 14 dispute in any other establishment within the United States that 15 is both functionally integrated with the establishment described 16 in subparagraph (i) and operated by the same employing unit. 17 (b) An individual's disqualification imposed or imposable 18 under this subsection is terminated if the individual performs 19 services in employment with an employer in at least 2 consecutive 20 weeks falling wholly within the period of the individual's total 21 or partial unemployment due to the labor dispute, and in addition 22 earns wages in each of those weeks in an amount equal to or 23 greater than the individual's actual or potential weekly benefit 24 rate with respect to those weeks based on the individual's 25 employment with the employer involved in the labor dispute. 26 (c) An individual is not disqualified FROM RECEIVING 27 BENEFITS under this subsection if THE EMPLOYER INVOLVED IN THE 01044'97 14 1 LABOR DISPUTE REFUSES TO BARGAIN OR TO BARGAIN IN GOOD FAITH WITH 2 THE INDIVIDUAL'S RECOGNIZED BARGAINING REPRESENTATIVE, OR IF the 3 individual is not directly involved in the labor dispute. An 4 individual is not directly involved in a labor dispute unless any 5 of the following are established: 6 (i) At the time or in the course of a labor dispute in the 7 establishment in which the individual was then employed, the 8 individual in concert with 1 or more other employees voluntarily 9 stopped working other than at the direction of the individual's 10 employing unit. 11 (ii) The individual is participating in, financing, or 12 directly interested in the labor dispute that causes the 13 individual's total or partial unemployment. The payment of regu- 14 lar union dues, in amounts and for purposes established before 15 the inception of the labor dispute, is not financing a labor dis- 16 pute within the meaning of this subparagraph. 17 (iii) At any time a labor dispute in the establishment or 18 department in which the individual was employed does not exist, 19 and the individual voluntarily stops working, other than at the 20 direction of the individual's employing unit, in sympathy with 21 employees in some other establishment or department in which a 22 labor dispute is in progress. 23 (iv) The individual's total or partial unemployment is due 24 to a labor dispute that was or is in progress in a department, 25 unit, or group of workers in the same establishment. 26 (d) As used in this subsection, "directly interested" shall 27 be construedand appliedso as not to disqualify individuals 01044'97 15 1 unemployed as a result of a labor dispute the resolution of which 2 may not reasonably be expected to affect their wages, hours, or 3 other conditions of employment, and to disqualify individuals 4 whose wages, hours, or conditions of employment may reasonably be 5 expected to be affected by the resolution of the labor dispute. 6 A "reasonable expectation" of an effect on an individual's wages, 7 hours, or other conditions of employment exists, in the absence 8 of a substantial preponderance of evidence to the contrary, in 9 any of the following situations: 10 (i) If it is established that there is in the particular 11 establishment or employing unit a practice, custom, or contrac- 12 tual obligation to extend within a reasonable period to members 13 of the individual's grade or class of workers in the establish- 14 ment in which the individual is or was last employed changes in 15 terms and conditions of employment that are substantially similar 16 or related to some or all of the changes in terms and conditions 17 of employment that are made for the workers among whom there 18 exists the labor dispute that has caused the individual's total 19 or partial unemployment. 20 (ii) If it is established that l of the issues in or pur- 21 poses of the labor dispute is to obtain a change in the terms and 22 conditions of employment for members of the individual's grade or 23 class of workers in the establishment in which the individual is 24 or was last employed. 25 (iii) If a collective bargaining agreement covers both the 26 individual's grade or class of workers in the establishment in 27 which the individual is or was last employed and the workers in 01044'97 16 1 another establishment of the same employing unit who are actively 2 participating in the labor dispute, and that collective bargain- 3 ing agreement is subject by its terms to modification, supplemen- 4 tation, or replacement, or has expired or been opened by mutual 5 consent at the time of the labor dispute. 6 (e) In determining the scope of the grade or class of work- 7 ers, evidence of the following is relevant: 8 (i) Representation of the workers by the same national or 9 international organization or by local affiliates of that 10 national or international organization. 11 (ii) Whether the workers are included in a single, legally 12 designated, or negotiated bargaining unit. 13 (iii) Whether the workers are or within the past 6 months 14 have been covered by a common master collective bargaining agree- 15 ment that sets forth all or any part of the terms and conditions 16 of the workers' employment, or by separate agreements that are or 17 have been bargained as a part of the same negotiations. 18 (iv) Any functional integration of the work performed by 19 those workers. 20 (v) Whether the resolution of those issues involved in the 21 labor dispute as to some of the workers could directly or indi- 22 rectly affect the advancement, negotiation, or settlement of the 23 same or similar issues in respect to the remaining workers. 24 (vi) Whether the workers are currently or have been covered 25 by the same or similar demands by their recognized or certified 26 bargaining agent or agents for changes in their wages, hours, or 27 other conditions of employment. 01044'97 17 1 (vii) Whether issues on the same subject matter as those 2 involved in the labor dispute have been the subject of proposals 3 or demands made upon the employing unit that would by their terms 4 have applied to those workers. 5 (9) Except for an individual disqualified under subsection 6 (1)(g), or an individual whose disqualifying discharge under 7 subsection (1)(b) is determined or redetermined to be a disci- 8 plinary layoff or suspension, an individual is disqualified from 9 receiving benefits for the duration of the individual's disci- 10 plinary layoff or suspension if the individual becomes unemployed 11 because of a disciplinary layoff or suspension based upon any of 12 the following: 13 (a) Misconduct directly or indirectly connected with work. 14 (b) Participation in a strike or other concerted activity 15 resulting in a curtailment of work or restriction of or interfer- 16 ence with production contrary to an applicable collective bar- 17 gaining agreement. 18 (c) Participation in a wildcat strike or other concerted 19 activity not authorized by the individual's recognized bargaining 20 representative. 21 (10) If a disqualifying discharge under subsection (1)(b) is 22 determined or redetermined to be a suspension, the disqualifica- 23 tion provided under subsection (9) applies from the date of the 24 discharge. 25 (11) Notwithstanding subsections (1) to (10), if the employ- 26 ing unit submits notice to the commission of possible 27 ineligibility or disqualification beyond the time limits 01044'97 18 1 prescribed by commission rule, the notice shall not form the 2 basis of a determination of ineligibility or disqualification for 3 a claim period compensated before the receipt of the notice by 4 the commission. 5 (12) An individual is disqualified from receiving benefits 6 for any week or part of a week in which the individual has 7 received, is receiving, or is seeking unemployment benefits under 8 an unemployment compensation law of another state or of the 9 United States. If the appropriate agency of the other state or 10 of the United States finally determines that the individual is 11 not entitled to unemployment benefits, the disqualification 12 described in this subsection does not apply. 01044'97 Final page. DMS