HOUSE BILL No. 4188 February 13, 2001, Introduced by Reps. Bogardus, Kolb, Schermesser, Lipsey, Hale, Gieleghem, Jamnick, Dennis, Phillips, Anderson, Murphy, Williams, Waters, Adamini, Rich Brown, Minore, Whitmer and Lemmons and referred to the Committee on Employment Relations, Training and Safety. A bill to amend 1936 (Ex Sess) PA 1, entitled "Michigan employment security act," by amending sections 19, 27, 29, and 50 (MCL 421.19, 421.27, 421.29, and 421.50), section 19 as amended by 1996 PA 535, section 27 as amended by 1995 PA 181, and sections 29 and 50 as amended by 1995 PA 25. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 19. (a) The commission shall determine the contribution 2 rate of each contributing employer for each calendar year after 3 1977 as follows: 4 (1) (i) Except as provided in paragraph (ii), an employer's 5 rate shall be calculated as described in table A with respect to 6 wages paid by the employer in each calendar year for employment. 7 If an employer's coverage is terminated under section 24, or at 8 the conclusion of 8 or more consecutive calendar quarters during 00763'01 FDD 2 1 which the employer has not had workers in covered employment, and 2 if the employer becomes liable for contributions, the employer 3 shall be considered as newly liable for contributions for the 4 purposes of table A or table B of this subsection. 5 (ii) To provide against the high risk of net loss to the 6 fund in such cases, an employing unit which becomes newly liable 7 for contributions under this act in a calendar year beginning on 8 or after January 1, 1983 in which it employs in "employment", not 9 necessarily simultaneously but in any 1 week 2 or more individu- 10 als in the performance of 1 or more contracts or subcontracts for 11 construction in the state of roads, bridges, highways, sewers, 12 water mains, utilities, public buildings, factories, housing 13 developments, or similar construction projects, shall be liable 14 for contributions to that employer's account under this act for 15 the first 4 years of operations in this state at a rate equal to 16 the average rate paid by employers engaged in the construction 17 business as determined by contractor type in the manner provided 18 in table B. 19 (iii) For the calendar years 1983 and 1984, the contribution 20 rate of a construction employer shall not exceed its 1982 contri- 21 bution rate with respect to wages, paid by that employer, related 22 to the execution of a fixed price construction contract which was 23 entered into prior to January 1, 1983. Furthermore, such contri- 24 bution rate shall be reduced, by the solvency tax rate assessed 25 against the employer under section 19a, for the year in which 26 such solvency tax rate is applicable. Furthermore, 27 notwithstanding section 44, the taxable wage limit, for calendar 00763'01 3 1 years 1983 and 1984, with respect to wages paid under such fixed 2 price contract, shall be the maximum amount of remuneration paid 3 within a calendar year by an employer subject to the federal 4 unemployment tax act, CHAPTER 23 OF SUBTITLE C OF THE INTERNAL 5 REVENUE CODE OF 1986, 26 U.S.C. 3301 to 3311, to an individual 6 with respect to employment as defined in that act which is 7 subject to tax under that act during that year. 8 _________________________________________________________________ 9 Table A 10 _________________________________________________________________ 11 Year of Contribution Contribution Rate 12 Liability 13 14 _________________________________________________________________ 15 16 1 2.7% 17 2 2.7% 18 3 1/3 (chargeable benefits component) 19 + 1.8% 20 4 2/3 (chargeable benefits component) 21 + 1.0% 22 5 and over (chargeable benefits component) + 23 (account building component) + 24 (nonchargeable benefits component) 25 _________________________________________________________________ 26 Table B 27 _________________________________________________________________ 28 Year of Contribution Contribution Rate 29 Liability 30 31 _________________________________________________________________ 32 33 1 average construction contractor rate 34 as determined by the commission 35 2 average construction contractor rate 36 as determined by the commission 37 3 1/3 (chargeable benefits component) 38 + 2/3 average construction contrac- 39 tor rate as determined by the com- 40 mission 41 4 2/3 (chargeable benefits component) 42 + 1/3 average construction 43 contractor rate as determined by the 44 commission 00763'01 4 1 5 and over (chargeable benefits component) + 2 (account building component) + 3 (nonchargeable benefits component) 4 (2) With the exception of employers who are in the first 4 5 consecutive years of liability, each employer's contribution rate 6 for each calendar year after 1977 shall be the sum of the follow- 7 ing components, all of which are determined as of the computation 8 date: a chargeable benefits component determined under subdivi- 9 sion (3), an account building component determined under subdivi- 10 sion (4), and a nonchargeable benefits component determined under 11 subdivision (5). Each employer's contribution rate for calendar 12 years before 1978 shall be determined by the provisions of this 13 act in effect during the years in question. 14 (3) (i) The chargeable benefits component of an employer's 15 contribution rate is the percentage determined by dividing: the 16 total amount of benefits charged to the employer's experience 17 account within the lesser of 60 consecutive months ending on the 18 computation date or the number of consecutive months ending on 19 the computation date with respect to which the employer has been 20 continuously liable for contributions; by the amount of wages, 21 subject to contributions, paid by the employer within the same 22 period. If the resulting quotient is not an exact multiple of 23 1/10 of 1%, it shall be increased to the next higher multiple of 24 1/10 of 1%. 25 (ii) For benefit years established before the conversion 26 date prescribed in section 75, the chargeable benefits component 27 shall not exceed 6.0%, unless there is a statutory change in the 28 maximum duration of regular benefit payments or the statutory 29 ratio of regular benefit payments to credit weeks. In the event 00763'01 5 1 of a change in the maximum duration of regular benefit payments, 2 the maximum chargeable benefits component shall increase by the 3 same percentage as the statutory percentage change in the dura- 4 tion of regular benefit payments between computation dates. In 5 the event of an increase in the statutory ratio of regular bene- 6 fit payments to credit weeks, as described in section 27(d), the 7 maximum chargeable benefits component determined as of the compu- 8 tation dates occurring after the effective date of the increased 9 ratio shall increase by 1/2 the same percentage as the increase 10 in the ratio of regular benefit payments to credit weeks. If the 11 resulting increase is not already an exact multiple of 1/10 of 12 1%, it shall be adjusted to the next higher multiple of 1/10 of 13 1%. For benefit years established after the conversion date pre- 14 scribed in section 75, the chargeable benefits component shall 15 not exceed 6.0%, unless there is a statutory change in the maxi- 16 mum duration of regular benefit payments or the percentage factor 17 of base period wages, which defines maximum duration, as provided 18 in section 27(d). If there is a statutory change in the maximum 19 duration of regular benefit payments, the maximum chargeable ben- 20 efits component shall increase by the same percentage as the 21 statutory percentage change in the duration of regular benefit 22 payments between computation dates. If there is an increase in 23 the statutory percentage factor of base period wages, as 24 described in section 27(d), the maximum chargeable benefits com- 25 ponent determined as of the computation dates occurring after the 26 effective date of the increased ratio shall increase by 1/2 the 27 same percentage as the increase in the percentage factor of base 00763'01 6 1 period wages. If the resulting increase is not already an exact 2 multiple of 1/10 of 1%, it shall be adjusted to the next higher 3 multiple of 1/10 of 1%. 4 (4) The account building component of an employer's contri- 5 bution rate is the percentage arrived at by the following 6 calculations: (i) Multiply the amount of the employer's total 7 payroll for the 12 months ending on the computation date, by the 8 cost criterion; (ii) Subtract the amount of the balance in the 9 employer's experience account as of the computation date from the 10 product determined under (i); and (iii) if the remainder is zero 11 or a negative quantity, the account building component of the 12 employer's contribution rate shall be zero; but (iv) if the 13 remainder is a positive quantity, the account building component 14 of the employer's contribution rate shall be determined by divid- 15 ing that remainder by the employer's total payroll paid within 16 the 12 months ending on the computation date. The account build- 17 ing component shall not exceed the lesser of 1/4 of the percen- 18 tage thus calculated or 2%. However, except as otherwise pro- 19 vided in this subdivision, the account building component shall 20 not exceed the lesser of 1/2 of the percentage thus calculated or 21 3%, if on the June 30 of the preceding calendar year the balance 22 in the unemployment compensation fund was less than 50% of an 23 amount equal to the aggregate of all contributing employers' 24 annual payrolls, for the 12 months ending March 31, times the 25 cost criterion. For calendar years after 1993 and before 1996, 26 the account building component shall not exceed the lesser of .69 27 of the percentage calculated, or 3%, if on the June 30 of the 00763'01 7 1 preceding calendar year the balance in the unemployment 2 compensation fund was less than 50% of an amount equal to the 3 aggregate of all contributing employers' annual payrolls, for the 4 12 months ending March 31, as defined in section 18(f), times the 5 cost criterion; selected for the computation date under 6 section 18(e). If the account building component determined 7 under this subdivision is not an exact multiple of 1/10 of 1%, it 8 shall be adjusted to the next higher multiple of 1/10 of 1%. 9 (5) The nonchargeable benefits component of employers' con- 10 tribution rates is the percentage arrived at by the following 11 calculations: (i) multiply the aggregate amount of all contrib- 12 uting employers' annual payrolls, for the 12 months ending March 13 31, as defined in section 18(f), by the cost criterion selected 14 for the computation date under section 18(e); (ii) subtract the 15 balance of the unemployment fund on the computation date, net of 16 federal advances, from the product determined under (i); and 17 (iii) if the remainder is zero or a negative quantity, the non- 18 chargeable benefits component of employers' contribution rates 19 shall be zero; but (iv) if the remainder is a positive quantity, 20 the nonchargeable benefits component of employers' contribution 21 rates shall be determined by dividing that remainder by the total 22 of wages subject to contributions under this act paid by all con- 23 tributing employers within the 12 months ending on March 31 and 24 adjusting the quotient, if not an exact multiple of 1/10 of 1%, 25 to the next higher multiple of 1/10 of 1%. The maximum non- 26 chargeable benefits component shall be 1%. However, for calendar 27 years after 1993, if there are no benefit charges against an 00763'01 8 1 employer's account for the 60 months ending as of the computation 2 date, or for calendar years after 1995, if the employer's charge- 3 able benefits component is less than 2/10 of 1%, the maximum non- 4 chargeable benefit component shall not exceed 1/2 of 1%. For 5 calendar years after 1995, if there are no benefit charges 6 against an employer's account for the 72 months ending as of the 7 computation date, the maximum nonchargeable benefits component 8 shall not exceed 4/10 of 1%. For calendar years after 1996, if 9 there are no benefit charges against an employer's account for 10 the 84 months ending as of the computation date, the maximum non- 11 chargeable benefits component shall not exceed 3/10 of 1%. For 12 calendar years after 1997, if there are no benefit charges 13 against an employer's account for the 96 months ending as of the 14 computation date, the maximum nonchargeable benefits component 15 shall not exceed 2/10 of 1%. For calendar years after 1998, if 16 there are no benefit charges against an employer's account for 17 the 108 months ending as of the computation date, the maximum 18 nonchargeable benefits component shall not exceed 1/10 of 1%. An 19 employer with a positive balance in its experience account on the 20 June 30 computation date preceding the calendar year shall 21 receive for that calendar year a credit in an amount equal to 1/2 22 of the extra federal unemployment tax paid in the preceding cal- 23 endar year under section 3302(c)(2) of the federal unemployment 24 tax act, CHAPTER 23 OF SUBTITLE C OF THE INTERNAL REVENUE CODE OF 25 1986, 26 U.S.C.3302(c)(2)3302, because of an outstanding 26 balance of unrepaid advances from the federal government to the 27 unemployment compensation fund under section 1201 of TITLE XII OF 00763'01 9 1 the social security act, 42 U.S.C. 1321. However, the credit for 2 any calendar year shall not exceed an amount determined by multi- 3 plying the employer's nonchargeable benefit component for that 4 calendar year times the employer's taxable payroll for that 5 year. Contributions paid by an employer shall be credited to the 6 employer's experience account, in accordance with the provisions 7 of section 17(5), without regard to any credit given under this 8 subsection. The amount credited to an employer's experience 9 account shall be the amount of the employer's tax before deduc- 10 tion of the credit provided in this subsection. 11 (6) The total of the chargeable benefits and account build- 12 ing components of an employer's contribution rate shall not 13 exceed by more than 1% in the 1983 calendar year, 1.5% in the 14 calendar year 1984, or 2% in the 1985 calendar year the higher of 15 4% or the total of the chargeable benefits and the account build- 16 ing components which applied to the employer during the preceding 17 calendar year. For calendar years after 1985, the total of the 18 chargeable benefits and account building components of the 19 employer's contribution rate shall be computed without regard to 20 the foregoing limitation provided in this subdivision. During a 21 year in which this subdivision limits an employer's contribution 22 rate, the resulting reduction shall be considered to be entirely 23 in the experience component of the employer's contribution rate, 24 as defined in section 18(d). 25 (7) Unless an employer's contribution rate is 1/10 of 1% for 26 calendar years beginning after December 31, 1995, the employer's 00763'01 10 1 contribution rate shall be reduced by any of the following 2 calculation methods that results in the lowest rate: 3 (i) The chargeable benefits component, the account building 4 component, and the nonchargeable benefits component of the con- 5 tribution rate calculated under this section shall each be 6 reduced by10%22-1/2% and if the resulting quotient is not an 7 exact multiple of 1/10 of 1%, that quotient shall be increased to 8 the next higher multiple of 1/10 of 1%. The 3 components as 9 increased shall then be added together. 10 (ii) One-tenth of 1% shall be deducted from the contribution 11 rate. 12 (iii) The contribution rate shall be reduced by10%13 22-1/2% and if the resulting quotient is not an exact multiple of 14 1/10 of 1%, that quotient shall be increased to the next higher 15 multiple of 1/10 of 1%. 16 The contribution rate reduction described in this section 17 applies to employers who have been liable for the payment of con- 18 tributions in accordance with this act for more than 4 consecu- 19 tive years, if the balance of money in the unemployment compensa- 20 tion fund established under section 26, excluding money borrowed 21 from the federal unemployment trust fund, is equal to or greater 22 than 1.2% of the aggregate amount of all contributing employers' 23 payrolls for the 12-month period ending on the computation date. 24 If the employer's contribution rate is reduced by a 1/10 of 1% 25 deduction in accordance with this subdivision, the employer's 26 contributions shall be credited to each of the components of the 00763'01 11 1 contribution rate on a pro rata basis. As used in this 2 subdivision: 3 (i) "Federal unemployment trust fund" means the fund created 4 under section 904 of title IX of the social security act, 42 5 U.S.C. 1104. 6 (ii) "Payroll" means that term as defined in section 18(f). 7 (b) An employer previously liable for contributions under 8 this act which on or after January 1, 1978 filed a petition for 9 arrangement under the FORMER bankruptcy act of JULY 1, 1898, 10 chapter 541, 30 Stat. 544, or on or after October 1, 1979 filed a 11 petition for reorganization under title 11 of the United States 12codeCODE,entitled bankruptcy,11 U.S.C. 101 to 1330, pursu- 13 ant to which a plan of arrangement or reorganization for rehabil- 14 itation purposes has been confirmed by order of the United States 15 bankruptcy court, shall be considered as a reorganized employer 16 and shall have a reserve fund balance of zero as of the first 17 calendar year immediately following court confirmation of the 18 plan of arrangement or reorganization, but not earlier than the 19 calendar year beginning January 1, 1983, if the employer meets 20 each of the following requirements: 21 (1) An employer whose plan of arrangement or reorganization 22 has been confirmed as of January 1, 1983 shall, within 60 days 23 after January 1, 1983, notify the commission of its intention to 24 elect the status of a reorganized employer. An employer which 25 has not had a plan of arrangement or reorganization confirmed as 26 of January 1, 1983 shall, within 60 days after the entry by the 27 bankruptcy court of the order of confirmation of the plan of 00763'01 12 1 arrangement or reorganization, notify the commission of its 2 intention to elect the status of a reorganized employer. An 3 employer shall not make an election under this subdivision after 4 December 31, 1985. 5 (2) The employer has paid to the commission all contribu- 6 tions previously owed by the employer pursuant to this act for 7 all calendar years prior to the calendar year as to which the 8 employer elects to begin its status as a reorganized employer. 9 (3) More than 50% of the employer's total payroll is paid 10 for services rendered in this state during the employer's fiscal 11 year immediately preceding the date the employer notifies the 12 fund administrator of its intention to elect the status of a 13 reorganized employer. 14 (4) The employer, within 180 days after notifying the com- 15 mission of its intention to elect the status of a reorganized 16 employer, makes a cash payment to the commission, for the unem- 17 ployment compensation fund, equal to: .20 times the first 18 $2,000,000.00 of the employer's negative balance, .35 times the 19 amount of the employer's negative balance above $2,000,000.00 and 20 up to $5,000,000.00, and .50 times the amount of the negative 21 balance above $5,000,000.00. The total amount so determined by 22 the commission shall be based on the employer's negative balance 23 existing as of the end of the calendar month immediately preced- 24 ing the calendar year in which the employer will begin its status 25 as a reorganized employer. If the employer fails to pay the 26 amount determined, within 180 days of electing status as a 27 reorganized employer, the commission shall reinstate the 00763'01 13 1 employer's negative balance previously reduced and redetermine 2 the employer's rate on the basis of such reinstated negative 3 balance. Such redetermined rate shall then be used to redeter- 4 mine the employer's quarterly contributions for that calendar 5 year. Such redetermined contributions shall be subject to the 6 interest provisions of section 15 as of the date the redetermined 7 quarterly contributions were originally due. 8 (5) Except as provided in subdivision (6), the employer con- 9 tribution rates for a reorganized employer beginning with the 10 first calendar year of the employer's status as a reorganized 11 employer shall be as follows: 12 _________________________________________________________________ 13 Year of Contribution Contribution Rate 14 Liability 15 _________________________________________________________________ 16 17 1 2.7% of total taxable wages paid 18 2 2.7% 19 3 2.7% 20 4 and over (chargeable benefits component based 21 upon 3-year experience) plus 22 (account building component based 23 upon 3-year experience) plus 24 (nonchargeable benefits component) 25 (6) To provide against the high risk of net loss to the fund 26 in such cases, any reorganized employer which employs in 27 "employment", not necessarily simultaneously but in any 1 week 25 28 or more individuals in the performance of 1 or more contracts or 29 subcontracts for construction in the state of roads, bridges, 30 highways, sewers, water mains, utilities, public buildings, fac- 31 tories, housing developments, or similar major construction 32 projects, shall be liable beginning the first calendar year of 00763'01 14 1 the employer's status as a reorganized employer for contribution 2 rates as follows: 3 _________________________________________________________________ 4 Year of Contribution Contribution Rate 5 Liability 6 _________________________________________________________________ 7 1 average construction contractor rate 8 as determined by the commission 9 2 average construction contractor rate 10 as determined by the commission 11 3 1/3 (chargeable benefits component) 12 + 2/3 average construction contrac- 13 tor rate as determined by the com- 14 mission 15 4 2/3 (chargeable benefits component) 16 + 1/3 average construction contrac- 17 tor rate as determined by the com- 18 mission 19 5 and over (chargeable benefits component) + 20 (account building component) + 21 (nonchargeable benefits component) 22 (c) Upon application by an employer to the commission for 23 designation as a distressed employer, the commission, within 24 60 days after receipt of the application, shall make a determina- 25 tion whether the employer meets the conditions set forth in this 26 subsection. Upon finding that the conditions are met, the com- 27 mission shall notify the legislature of the determination and 28 request legislative acquiescence in the determination. If the 29 legislature approves the determination by concurrent resolution, 30 the employer shall be considered to be a "distressed employer" as 31 of January 1 of the year in which the determination is made. The 32 commission shall notify the employer of such determination and 33 notify the employer of its contribution rate as a distressed 34 employer and the contribution rate that would apply if the 35 employer was not a distressed employer. The distressed employer 36 shall determine its tax contribution using the 2 rates furnished 00763'01 15 1 by the commission and shall pay its tax contribution based on the 2 lower of the 2 rates. If the determination of distressed 3 employer status is made during the calendar year, the employer 4 shall be entitled to a credit on future quarterly installments 5 for any excess contributions paid during that initial calendar 6 year. The employer shall notify the commission of the difference 7 between the amount paid and the amount which would have been paid 8 if the employer were not determined to be a distressed employer 9 and the difference will be owed to the unemployment compensation 10 fund, payable in accordance with this subsection. Cumulative 11 totals of the difference must be reported to the commission with 12 each return required to be filed. The commission may periodi- 13 cally determine continued eligibility of an employer under this 14 subsection. When the commission makes a determination that an 15 employer no longer qualifies as a distressed employer, the com- 16 mission shall notify the employer of that determination. After 17 notice by the commission that the employer no longer qualifies as 18 a distressed employer, the employer will be liable for contribu- 19 tions, beginning with the first quarter occurring after receipt 20 of notification of disqualification, on the basis of the rate 21 that would apply if the employer was not a distressed employer. 22 The contribution rate for a distressed employer shall be calcu- 23 lated under the law in effect for the 1982 calendar year except 24 that the rate thus determined shall be reduced by the applicable 25 solvency tax rate assessed against the employer under section 26 19a. The taxable wage limit of such distressed employer for the 27 1983, 1984, and 1985 calendar years shall be the maximum amount 00763'01 16 1 of remuneration paid within a calendar year by such an employer 2 subject to the federal unemployment tax act, CHAPTER 23 OF SUBTI- 3 TLE C OF THE INTERNAL REVENUE CODE OF 1986, 26 U.S.C. 3301 to 4 3311, to an individual with respect to employment as defined in 5 that act which is subject to tax under that act during that 6 year. Commencing with the fourth quarter of 1986, the distressed 7 employer will pay in 10 equal annual installments the amount of 8 the unpaid contributions owed to the unemployment compensation 9 fund due to the application of this subsection, without 10 interest. Each installment shall be made with the fourth quar- 11 terly return for the respective year. As used in this subsec- 12 tion, "distressed employer" means an employer whose continued 13 presence in this state is considered essential to the state's 14 economic well-being and who meets the following criteria: 15 (1) The employer's average annual Michigan payroll in the 5 16 previous years exceeded $500,000,000.00. 17 (2) The employer's average quarterly number of employees in 18 Michigan in the 5 previous years exceeded 25,000. 19 (3) The employer's business income as defined in section 3 20 ofAct No. 228 of the Public Acts of 1975, being section 208.321of the Michigan Compiled LawsTHE SINGLE BUSINESS TAX ACT, 1975 22 PA 228, MCL 208.3, has resulted in an aggregate loss of 23 $1,000,000,000.00 or more during the 5-year period ending in the 24 second year prior to the year for which the application is being 25 made. 26 (4) The employer has received from the state of Michigan 27 loans totaling $50,000,000.00 or more or loan guarantees from the 00763'01 17 1 federal government in excess of $500,000,000.00, either of which 2 are still outstanding. 3 (5) Failure to give an employer designation as a distressed 4 employer would adversely impair the employer's ability to repay 5 the outstanding loans owed to the state of Michigan or which are 6 guaranteed by the federal government. 7 (d) An employer may at any time make payments to that 8 employer's experience account in the fund in excess of the 9 requirements of this section, but these payments, when accepted 10 by the commission, shall be irrevocable. A payment made by an 11 employer within 30 days after mailing to the employer by the com- 12 mission of a notice of the adjusted contribution rate of the 13 employer shall be credited to the employer's account as of the 14 computation date for which the adjusted contribution rate was 15 computed, and the employer's contribution rate shall be further 16 adjusted accordingly. However, a payment made more than 120 days 17 after the beginning of a calendar year shall not affect the 18 employer's contribution rate for that year. 19 Sec. 27. (a)(1) When a determination, redetermination, or 20 decision is made that benefits are due an unemployed individual, 21 the benefits shall immediately become payable from the fund and 22 continue to be payable to the unemployed individual, subject to 23 the limitations imposed by the individual's monetary entitlement, 24as long asIF the individual continues to be unemployed and to 25 file claims for benefits, until the determination, redetermina- 26 tion, or decision is reversed, a determination, redetermination, 27 or decision on a new issue holding the individual disqualified or 00763'01 18 1 ineligible is made, or, for benefit years beginning before the 2 conversion date prescribed in section 75, a new separation issue 3 arises resulting from subsequent work. 4 (2) Benefits shall be paid in person or by mail through 5 employment offices in accordance with rules promulgated by the 6 commission. 7 (b)(1) Subject to subsection (f), the weekly benefit rate 8 for an individual, with respect to benefit years beginning before 9 the conversion date prescribed in section 75, shall be67%70% 10 of the individual's average after tax weekly wage, except that 11 the individual's maximum weekly benefit rate shall not exceed 12$300.0058% OF THE STATE AVERAGE WEEKLY WAGE. However, with 13 respect to benefit years beginning after the conversion date as 14 prescribed in section 75, the individual's weekly benefit rate 15 shall be4.1%4.2% of the individual's wages paid in the calen- 16 dar quarter of the base period in which the individual was paid 17 the highest total wages, plus $6.00 for each dependent as defined 18 in subdivision (3), up to a maximum of 5 dependents, claimed by 19 the individual at the time the individual files a new claim for 20 benefits, except that the individual's maximum weekly benefit 21 rate shall not exceed$300.0058% OF THE STATE AVERAGE WEEKLY 22 WAGE. With respect to benefit years beginning on or after 23 October 2, 1983, the weekly benefit rate shall be adjusted to the 24 next lower multiple of $1.00. 25 (2) For benefit years beginning before the conversion date 26 prescribed in section 75, the state average weekly wage for a 27 calendar year shall be computed on the basis of the 12 months 00763'01 19 1 ending the June 30 immediately preceding that calendar year. The 2 commission shall prepare a table of weekly benefit rates based on 3 an "average after tax weekly wage" calculated by subtracting, 4 from an individual's average weekly wage as determined in accord- 5 ance with section 51, a reasonable approximation of the weekly 6 amount required to be withheld by the employer from the remunera- 7 tion of the individual based on dependents and exemptions for 8 income taxes under chapter 24 of subtitle C of the internal reve- 9 nue code of 1986, 26 U.S.C. 3401 to 3406, and under section 351 10 of the income tax act of 1967,Act No. 281 of the Public Acts of111967, being section 206.351 of the Michigan Compiled Laws1967 12 PA 281, MCL 206.351, and for old age and survivor's disability 13 insurance taxes under the federal insurance contributions act, 14 chapter 21 of subtitle C of the internal revenue code of 1986, 26 15 U.S.C. 3128. For purposes of applying the table to an 16 individual's claim, a dependent shall be as defined in 17 subdivision (3). The table applicable to an individual's claim 18 shall be the table reflecting the number of dependents claimed by 19 the individual under subdivision (3). The commission shall 20 adjust the tables based on changes in withholding schedules pub- 21 lished by the United States department of treasury, internal rev- 22 enue service, and by the department of treasury. The number of 23 dependents allowed shall be determined with respect to each week 24 of unemployment for which an individual is claiming benefits. 25 (3) For benefit years beginning before the conversion date 26 prescribed in section 75, a dependent means any of the following 27 persons who is receiving and for at least 90 consecutive days 00763'01 20 1 immediately preceding the week for which benefits are claimed, 2 or, in the case of a dependent husband, wife, or child, for the 3 duration of the marital or parental relationship, if the rela- 4 tionship has existed less than 90 days, has received more than 5 half the cost of his or her support from the individual claiming 6 benefits: 7 (a) A child, including stepchild, adopted child, or grand- 8 child of the individual who is under 18 years of age, or 18 years 9 of age or over if, because of physical or mental infirmity, the 10 child is unable to engage in a gainful occupation, or is a 11 full-time student as defined by the particular educational insti- 12 tution, at a high school, vocational school, community or junior 13 college, or college or university and has not attained the age of 14 22. 15 (b) The husband or wife of the individual. 16 (c) The legal father or mother of the individual if that 17 parent is either more than 65 years of age or is permanently dis- 18 abled from engaging in a gainful occupation. 19 (d) A brother or sister of the individual if the brother or 20 sister is orphaned or the living parents are dependent parents of 21 an individual, and the brother or sister is under 18 years of 22 age, or 18 years of age or over if, because of physical or mental 23 infirmity, the brother or sister is unable to engage in a gainful 24 occupation, or is a full-time student as defined by the particu- 25 lar educational institution, at a high school, vocational school, 26 community or junior college, or college or university and is less 27 than 22 years of age. 00763'01 21 1 (4) For benefit years beginning after the conversion date 2 prescribed in section 75, a dependent means any of the following 3 persons who received for at least 90 consecutive days immediately 4 preceding the first week of the benefit year or, in the case of a 5 dependent husband, wife, or child, for the duration of the mari- 6 tal or parental relationship if the relationship existed less 7 than 90 days before the beginning of the benefit year, has 8 received more than 1/2 the cost of his or her support from the 9 individual claiming the benefits: 10 (a) A child, including stepchild, adopted child, or grand- 11 child of the individual who is under 18 years of age, or 18 years 12 of age and over if, because of physical or mental infirmity, the 13 child is unable to engage in a gainful occupation, or is a 14 full-time student as defined by the particular educational insti- 15 tution, at a high school, vocational school, community or junior 16 college, or college or university and has not attained the age of 17 22. 18 (b) The husband or wife of the individual. 19 (c) The legal father or mother of the individual if that 20 parent is either more than 65 years of age or is permanently dis- 21 abled from engaging in a gainful occupation. 22 (d) A brother or sister of the individual if the brother or 23 sister is orphaned or the living parents are dependent parents of 24 an individual, and the brother or sister is under 18 years of 25 age, or 18 years of age and over if, because of physical or 26 mental infirmity, the brother or sister is unable to engage in a 27 gainful occupation, or is a full-time student as defined by the 00763'01 22 1 particular educational institution, at a high school, vocational 2 school, community or junior college, or college or university and 3 is less than 22 years of age. 4 (5) For benefit years beginning before the conversion date 5 prescribed in section 75, dependency status of a dependent, child 6 or otherwise, once established or fixed in favor of an individual 7 continues during the individual's benefit year until terminated. 8 Dependency status of a dependent terminates at the end of the 9 week in which the dependent ceases to be an individual described 10 in subdivision (3)(a), (b), (c), or (d) because of age, death, or 11 divorce. For benefit years beginning after the conversion date 12 prescribed in section 75, the number of dependents established 13 for an individual at the beginning of the benefit year shall 14 remain in effect during the entire benefit year. 15 (6) For benefit years beginning before the conversion date 16 prescribed in section 75, failure on the part of an individual, 17 due to misinformation or lack of information, to furnish all 18 information material for determination of the number of the 19 individual's dependents when the individual files a claim for 20 benefits with respect to a week shall be considered good cause 21 for the issuance of a redetermination as to the amount of bene- 22 fits based on the number of the individual's dependents as of the 23 beginning date of that week. Dependency status of a dependent, 24 child or otherwise, once established or fixed in favor of a 25 person is not transferable to or usable by another person with 26 respect to the same week. 00763'01 23 1 For benefit years beginning after the conversion date as 2 prescribed in section 75, failure on the part of an individual, 3 due to misinformation or lack of information, to furnish all 4 information material for determination of the number of the 5 individual's dependents shall be considered good cause for the 6 issuance of a redetermination as to the amount of benefits based 7 on the number of the individual's dependents as of the beginning 8 of the benefit year. 9 (c) Subject to subsection (f),all of the following apply10to eligible individuals: (1) EachEACH eligible individual 11 shall be paid a weekly benefit rate with respect to the week for 12 which the individual earns or receives no remuneration OR REMU- 13 NERATION EQUAL TO LESS THAN 1/2 THE INDIVIDUAL'S WEEKLY BENEFIT 14 RATE, OR SHALL BE PAID 1/2 HIS OR HER WEEKLY BENEFIT RATE WITH 15 RESPECT TO THE WEEK FOR WHICH THE INDIVIDUAL EARNS OR RECEIVES 16 REMUNERATION EQUAL TO AT LEAST 1/2 BUT LESS THAN THE INDIVIDUAL'S 17 WEEKLY BENEFIT RATE. Notwithstanding the definition of week as 18 contained in section 50, if within 2 consecutive weeks in which 19 an individual was not unemployed within the meaning of section 48 20 there was a period of 7 or more consecutive days for which the 21 individual did not earn or receive remuneration, that period 22 shall be considered a week for benefit purposes under this act if 23 a claim for benefits for that period is filed not later than 30 24 days subsequent to the end of the period. 25(2) Each eligible individual shall have his or her weekly26benefit rate reduced with respect to each week in which the27individual earns or receives remuneration at the rate of 50 cents00763'01 24 1for each whole $1.00 of remuneration earned or received during2that week.3(3) An individual who receives or earns partial remuneration4may not receive a total of benefits and earnings that exceeds51-1/2 times his or her weekly benefit amount. For each dollar of6total benefits and earnings that exceeds 1-1/2 times the7individual's weekly benefit amount, benefits shall be reduced by8$1.00.9(4) If the reduction in a claimant's benefit rate for a week10in accordance with subparagraph (2) or (3) results in a benefit11rate greater than zero for that week, the claimant's balance of12weeks of benefit payments will be reduced by 1 week.13(5)All remuneration for work performed during a shift that 14 terminates on 1 day but that began on the preceding day shall be 15 considered to have been earned by the eligible individual on the 16 preceding day. 17 (d) For benefit years beginning before the conversion date 18 prescribed in section 75, and subject to subsection (f) and this 19 subsection, the amount of benefits to which an individual who is 20 otherwise eligible is entitled during a benefit year from an 21 employer with respect to employment during the base period is the 22 amount obtained by multiplying the weekly benefit rate with 23 respect to that employment by 3/4 of the number of credit weeks 24 earned in the employment. For the purpose of this subsection and 25 section 20(c), if the resultant product is not an even multiple 26 of 1/2 the weekly benefit rate, the product shall be raised to an 27 amount equal to the next higher multiple of 1/2 the weekly 00763'01 25 1 benefit rate, and, for an individual who was employed by only 1 2 employer in the individual's base period and earned 34 credit 3 weeks with that employer, the product shall be raised to the next 4 higher multiple of the weekly benefit rate. The maximum amount 5 of benefits payable to an individual within a benefit year, with 6 respect to employment by an employer, shall not exceed 26 times 7 the weekly benefit rate with respect to that employment. The 8 maximum amount of benefits payable to an individual within a ben- 9 efit year shall not exceed the amount to which the individual 10 would be entitled for 26 weeks of unemployment in which remunera- 11 tion was not earned or received. The limitation of total bene- 12 fits set forth in this subsection does not apply to claimants 13 declared eligible for training benefits in accordance with sub- 14 section (g). For benefit years beginning after the conversion 15 date prescribed in section 75, and subject to subsection (f) and 16 this subsection, the maximum benefit amount payable to an indi- 17 vidual in a benefit year for purposes of this section and 18 section 20(c) is the number of weeks of benefits payable to an 19 individual during the benefit year, multiplied by the 20 individual's weekly benefit rate. The number of weeks of bene- 21 fits payable to an individual shall be calculated by taking 40% 22 of the individual's base period wages and dividing the result by 23 the individual's weekly benefit rate. If the quotient is not a 24 whole or half number, the result shall be rounded down to the 25 nearest half number. However, not more than 26 weeks of benefits 26 or less than 14 weeks of benefits shall be payable to an 27 individual in a benefit year. The limitation of total benefits 00763'01 26 1 set forth in this subsection shall not apply to claimants 2 declared eligible for training benefits in accordance with 3 subsection (g). 4 (e) When a claimant dies or is judicially declared insane or 5 mentally incompetent, unemployment compensation benefits accrued 6 and payable to that person for weeks of unemployment before 7 death, insanity, or incompetency, but not paid, shall become due 8 and payable to the person who is the legal heir or guardian of 9 the claimant or to any other person found by the commission to be 10 equitably entitled to the benefits by reason of having incurred 11 expense in behalf of the claimant for the claimant's burial or 12 other necessary expenses. 13 (f)(1) For benefit years beginning before the conversion 14 date prescribed in section 75, and notwithstanding any inconsis- 15 tent provisions of this act, the weekly benefit rate of each 16 individual who is receiving or will receive a "retirement 17 benefit", as defined in subdivision (4), shall be adjusted as 18 provided in subparagraphs (a), (b), and (c). However, an 19 individual's extended benefit account and an individual's weekly 20 extended benefit rate under section 64 shall be established with- 21 out reduction under this subsection unless subdivision (5) is in 22 effect. Except as otherwise provided in this subsection, all 23 other provisions of this act continue to apply in connection with 24 the benefit claims of those retired persons. 25 (a) If and to the extent that unemployment benefits payable 26 under this act would be chargeable to an employer who has 27 contributed to the financing of a retirement plan under which the 00763'01 27 1 claimant is receiving or will receive a retirement benefit 2 yielding a pro rata weekly amount equal to or larger than the 3 claimant's weekly benefit rate as otherwise established under 4 this act, the claimant shall not receive unemployment benefits 5 that would be chargeable to the employer under this act. THE 6 TRANSFER OF MONEY FROM AN INDIVIDUAL'S IRA OR OTHER TAX QUALIFIED 7 RETIREMENT ACCOUNT TO ANOTHER IRA OR OTHER TAX QUALIFIED RETIRE- 8 MENT ACCOUNT IN ACCORDANCE WITH THE INTERNAL REVENUE CODE OF 1986 9 IS NOT REMUNERATION TO THAT INDIVIDUAL FOR PURPOSES OF DETERMIN- 10 ING THE INDIVIDUAL'S ELIGIBILITY FOR UNEMPLOYMENT COMPENSATION, 11 OR IN THE CALCULATION OF UNEMPLOYMENT COMPENSATION TO WHICH THAT 12 INDIVIDUAL IS ENTITLED. AS USED IN THIS SUBSECTION, "IRA OR 13 OTHER TAX QUALIFIED RETIREMENT ACCOUNT" MEANS AN INDIVIDUAL 14 RETIREMENT ACCOUNT AS THAT TERM IS DEFINED IN THE INTERNAL REVE- 15 NUE CODE OF 1986, OR ANY OTHER RETIREMENT ACCOUNT QUALIFIED FOR 16 TAX DEFERRAL UNTIL ACCOUNT MONEY BECOMES TAXABLE INCOME TO THE 17 ACCOUNT BENEFICIARY UNDER THE INTERNAL REVENUE CODE OF 1986. 18 (b) If and to the extent that unemployment benefits payable 19 under this act would be chargeable to an employer who has con- 20 tributed to the financing of a retirement plan under which the 21 claimant is receiving or will receive a retirement benefit yield- 22 ing a pro rata weekly amount less than the claimant's weekly ben- 23 efit rate as otherwise established under this act, then the 24 weekly benefit rate otherwise payable to the claimant and charge- 25 able to the employer under this act shall be reduced by an amount 26 equal to the pro rata weekly amount, adjusted to the next lower 00763'01 28 1 multiple of $1.00, which the claimant is receiving or will 2 receive as a retirement benefit. 3 (c) If the unemployment benefit payable under this act would 4 be chargeable to an employer who has not contributed to the 5 financing of a retirement plan under which the claimant is 6 receiving or will receive a retirement benefit, then the weekly 7 benefit rate of the claimant as otherwise established under this 8 act shall not be reduced due to receipt of a retirement benefit. 9 (d) If the unemployment benefit payable under this act is 10 computed on the basis of multiemployer credit weeks and a portion 11 of the benefit is allocable under section 20(e) to an employer 12 who has contributed to the financing of a retirement plan under 13 which the claimant is receiving or will receive a retirement ben- 14 efit, the adjustments required by subparagraph (a) or (b) apply 15 only to that portion of the weekly benefit rate that would other- 16 wise be allocable and chargeable to the employer. 17 (2) If an individual's weekly benefit rate under this act 18 was established before the period for which the individual first 19 receives a retirement benefit, any benefits received after a 20 retirement benefit becomes payable shall be determined in accord- 21 ance with the formula stated in this subsection. 22 (3) When necessary to assure prompt payment of benefits, the 23 commission shall determine the pro rata weekly amount yielded by 24 an individual's retirement benefit based on the best information 25 currently available to it. In the absence of fraud, a determina- 26 tion shall not be reconsidered unless it is established that the 27 individual's actual retirement benefit in fact differs from the 00763'01 29 1 amount determined by $2.00 or more per week. The reconsideration 2 shall apply only to benefits as may be claimed after the informa- 3 tion on which the reconsideration is based was received by the 4 commission. 5 (4)(a) As used in this subdivision, "retirement benefit" 6 means a benefit, annuity, or pension of any type or that part 7 thereof that is described in subparagraph (b) that is: 8 (i) Provided as an incident of employment under an estab- 9 lished retirement plan, policy, or agreement, including federal 10 social security if subdivision (5) is in effect. 11 (ii) Payable to an individual because the individual has 12 qualified on the basis of attained age, length of service, or 13 disability, whether or not the individual retired or was retired 14 from employment. Amounts paid to individuals in the course of 15 liquidation of a private pension or retirement fund because of 16 termination of the business or of a plant or department of the 17 business of the employer involved shall not be considered to be 18 retirement benefits. 19 (b) If a benefit as described in subparagraph (a) is payable 20 or paid to the individual under a plan to which the individual 21 has contributed: 22 (i) Less than half of the cost of the benefit, then only 23 half of the benefit shall be treated as a retirement benefit. 24 (ii) Half or more of the cost of the benefit, then none of 25 the benefit shall be treated as a retirement benefit. 26 (c) The burden of establishing the extent of an individual's 27 contribution to the cost of his or her retirement benefit for the 00763'01 30 1 purpose of subparagraph (b) is upon the employer who has 2 contributed to the plan under which a benefit is provided. 3 (5) Notwithstanding any other provision of this subsection, 4 for any week that begins after March 31, 1980, and with respect 5 to which an individual is receiving a governmental or other pen- 6 sion and claiming unemployment compensation, the weekly benefit 7 amount payable to the individual for those weeks shall be 8 reduced, but not below zero, by the entire prorated weekly amount 9 of any governmental or other pension, retirement or retired pay, 10 annuity, or any other similar payment that is based on any previ- 11 ous work of the individual. This reduction shall be made only if 12 it is required as a condition for full tax credit against the tax 13 imposed by the federal unemployment tax act, chapter 23 of 14 subtitle C of the internal revenue code of 1986, 26 U.S.C. 3301 15 to 3311. 16 (6) For benefit years beginning after the conversion date 17 prescribed in section 75, notwithstanding any inconsistent provi- 18 sions of this act, the weekly benefit rate of each individual who 19 is receiving or will receive a retirement benefit, as defined in 20 subdivision (4), shall be adjusted as provided in 21 subparagraphs (a), (b), and (c). However, an individual's 22 extended benefit account and an individual's weekly extended ben- 23 efit rate under section 64 shall be established without reduction 24 under this subsection, unless subdivision (5) is in effect. 25 Except as otherwise provided in this subsection, all the other 26 provisions of this act shall continue to be applicable in 27 connection with the benefit claims of those retired persons. 00763'01 31 1 (a) If any base period or chargeable employer has 2 contributed to the financing of a retirement plan under which the 3 claimant is receiving or will receive a retirement benefit yield- 4 ing a pro rata weekly amount equal to or larger than the 5 claimant's weekly benefit rate as otherwise established under 6 this act, the claimant shall not receive unemployment benefits. 7 (b) If any base period employer or chargeable employer has 8 contributed to the financing of a retirement plan under which the 9 claimant is receiving or will receive a retirement benefit yield- 10 ing a pro rata weekly amount less than the claimant's weekly ben- 11 efit rate as otherwise established under this act, then the 12 weekly benefit rate otherwise payable to the claimant shall be 13 reduced by an amount equal to the pro rata weekly amount, 14 adjusted to the next lower multiple of $1.00, which the claimant 15 is receiving or will receive as a retirement benefit. 16 (c) If no base period or separating employer has contributed 17 to the financing of a retirement plan under which the claimant is 18 receiving or will receive a retirement benefit, then the weekly 19 benefit rate of the claimant as otherwise established under this 20 act shall not be reduced due to receipt of a retirement benefit. 21 (g) Notwithstanding any other provision of this act, an 22 individual pursuing vocational training or retraining pursuant to 23 section 28(2) who has exhausted all benefits available under sub- 24 section (d) may be paid for each week of approved vocational 25 training pursued beyond the date of exhaustion a benefit amount 26 in accordance with subsection (c), but not in excess of the 27 individual's most recent weekly benefit rate. However, an 00763'01 32 1 individual shall not be paid training benefits totaling more than 2 18 times the individual's most recent weekly benefit rate. The 3 expiration or termination of a benefit year shall not stop or 4 interrupt payment of training benefits if the training for which 5 the benefits were granted began before expiration or termination 6 of the benefit year. 7 (h) A payment of accrued unemployment benefits shall not be 8 made to an eligible individual or in behalf of that individual as 9 provided in subsection (e) more than 6 years after the ending 10 date of the benefit year covering the payment or 2 calendar years 11 after the calendar year in which there is final disposition of a 12 contested case, whichever is later. 13 (i) Benefits based on service in employment described in 14 section 42(8), (9), and (10) are payable in the same amount, on 15 the same terms, and subject to the same conditions as compensa- 16 tion payable on the basis of other service subject to this act, 17 except that: 18 (1) With respect to service performed in an instructional, 19 research, or principal administrative capacity for an institution 20 of higher education as defined in section 53(2), or for an educa- 21 tional institution other than an institution of higher education 22 as defined in section 53(3), benefits shall not be paid to an 23 individual based on those services for any week of unemployment 24 beginning after December 31, 1977 that commences during the 25 period between 2 successive academic years or during a similar 26 period between 2 regular terms, whether or not successive, or 27 during a period of paid sabbatical leave provided for in the 00763'01 33 1 individual's contract, to an individual if the individual 2 performs the service in the first of the academic years or terms 3 and if there is a contract or a reasonable assurance that the 4 individual will perform service in an instructional, research, or 5 principal administrative capacity for an institution of higher 6 education or an educational institution other than an institution 7 of higher education in the second of the academic years or terms, 8 whether or not the terms are successive. 9 (2) With respect to service performed in other than an 10 instructional, research, or principal administrative capacity for 11 an institution of higher education as defined in section 53(2) or 12 for an educational institution other than an institution of 13 higher education as defined in section 53(3), benefits shall not 14 be paid based on those services for any week of unemployment 15 beginning after December 31, 1977 that commences during the 16 period between 2 successive academic years or terms to any indi- 17 vidual if that individual performs the service in the first of 18 the academic years or terms and if there is a reasonable assur- 19 ance that the individual will perform the service for an institu- 20 tion of higher education or an educational institution other than 21 an institution of higher education in the second of the academic 22 years or terms. 23 (3) With respect to any service described in subdivision (1) 24 or (2), benefits shall not be paid to an individual based upon 25 service for any week of unemployment that commences during an 26 established and customary vacation period or holiday recess if 27 the individual performs the service in the period immediately 00763'01 34 1 before the vacation period or holiday recess and there is a 2 contract or reasonable assurance that the individual will perform 3 the service in the period immediately following the vacation 4 period or holiday recess. 5 (4) If benefits are denied to an individual for any week 6 solely as a result of subdivision (2) and the individual was not 7 offered an opportunity to perform in the second academic year or 8 term the service for which reasonable assurance had been given, 9 the individual is entitled to a retroactive payment of benefits 10 for each week for which the individual had previously filed a 11 timely claim for benefits. An individual entitled to benefits 12 under this subdivision may apply for those benefits by mail in 13 accordance with R 421.210 as promulgated by the commission. AN 14 INDIVIDUAL WHO RECEIVED A REASONABLE ASSURANCE THAT HE OR SHE 15 WOULD PERFORM SERVICES IN A SECOND ACADEMIC YEAR OR TERM UNDER 16 SUBDIVISION (1) OR (2) AND WHO IS NOT PROVIDED THE OPPORTUNITY TO 17 PERFORM THOSE SERVICES IN THE SECOND ACADEMIC YEAR OR TERM HAS 18 GOOD CAUSE FOR LATE FILING. IF THE INDIVIDUAL OTHERWISE QUALI- 19 FIES TO RECEIVE BENEFITS FOR A WEEK IN WHICH A REASONABLE ASSUR- 20 ANCE WAS RECEIVED, HE OR SHE SHALL BE PAID BENEFITS FOR THAT WEEK 21 AFTER FILING A RETROACTIVE CLAIM AND ADDITIONALLY FILING A CERTI- 22 FICATION VERIFYING THAT HE OR SHE HAD BEEN ABLE AND AVAILABLE FOR 23 WORK THAT WEEK. THE INDIVIDUAL IS NOT REQUIRED TO HAVE SOUGHT 24 WORK DURING ANY WEEK FOR WHICH HE OR SHE RECEIVED THE REASONABLE 25 ASSURANCE DESCRIBED IN SUBDIVISION (1) OR (2). 26(5) The amendments to subdivision (2) made by Act No. 21927of the Public Acts of 1983 apply to all claims for unemployment00763'01 35 1compensation that are filed on and after October 31, 1983.2However, the amendments are retroactive to September 5, 1982 only3if, as a condition for full tax credit against the tax imposed by4the federal unemployment tax act, chapter 23 of subtitle C of the5internal revenue code of 1986, 26 U.S.C. 3301 to 3311, the United6States secretary of labor determines that retroactivity is7required by federal law.8 (5)(6) Notwithstanding subdivision (2), on and after April91, 1984 benefitsBENEFITS based upon services in other than an 10 instructional, research, or principal administrative capacity for 11 an institution of higher education shall not be denied for any 12 week of unemployment commencing during the period between 2 suc- 13 cessive academic years or terms solely because the individual had 14 performed the service in the first of the academic years or terms 15 and there is reasonable assurance that the individual will per- 16 form the service for an institution of higher education or an 17 educational institution other than an institution of higher edu- 18 cation in the second of the academic years or terms, unless a 19 denial is required as a condition for full tax credit against the 20 tax imposed by the federal unemployment tax act, chapter 23 of 21 subtitle C of the internal revenue code of 1986, 26 U.S.C. 3301 22 to 3311. AN INDIVIDUAL WHO WAS GIVEN REASONABLE ASSURANCE THAT 23 HE OR SHE WOULD PERFORM THE SERVICE IN THE SECOND OF THE ACADEMIC 24 YEARS OR TERMS AND WHO IS SUBSEQUENTLY NOT OFFERED THE OPPORTU- 25 NITY TO PERFORM THE SERVICE IN THAT SECOND OF THE ACADEMIC YEARS 26 OR TERMS HAS GOOD CAUSE FOR LATE FILING. IF THE INDIVIDUAL 27 OTHERWISE QUALIFIES TO RECEIVE BENEFITS FOR A WEEK IN WHICH A 00763'01 36 1 REASONABLE ASSURANCE WAS RECEIVED, HE OR SHE SHALL BE PAID 2 BENEFITS FOR THAT WEEK AFTER FILING A RETROACTIVE CLAIM AND ADDI- 3 TIONALLY FILING A CERTIFICATION VERIFYING THAT HE OR SHE HAD BEEN 4 ABLE AND AVAILABLE FOR WORK THAT WEEK. THE INDIVIDUAL IS NOT 5 REQUIRED TO HAVE SOUGHT WORK DURING ANY WEEK FOR WHICH HE OR SHE 6 RECEIVED THE REASONABLE ASSURANCE. 7 (6)(7)For benefit years established before the conver- 8 sion date prescribed in section 75, and notwithstanding subdivi- 9 sions (1), (2), and (3), the denial of benefits does not prevent 10 an individual from completing requalifying weeks in accordance 11 with section 29(3) nor does the denial prevent an individual from 12 receiving benefits based on service with an employer other than 13 an educational institution for any week of unemployment occurring 14 between academic years or terms, whether or not successive, or 15 during an established and customary vacation period or holiday 16 recess, even though the employer is not the most recent charge- 17 able employer in the individual's base period. However, in that 18 case section 20(b) applies to the sequence of benefit charging, 19 except for the employment with the educational institution, and 20 section 50(b) applies to the calculation of credit weeks. When a 21 denial of benefits under subdivision (1) no longer applies, bene- 22 fits shall be charged in accordance with the normal sequence of 23 charging as provided in section 20(b). 24 (7)(8)For benefit years beginning after the conversion 25 date prescribed in section 75, and notwithstanding subdivisions 26 (1), (2), and (3), the denial of benefits shall not prevent an 27 individual from completing requalifying weeks in accordance with 00763'01 37 1 section 29(3) nor shall the denial prevent an individual from 2 receiving benefits based on service with another base period 3 employer other than an educational institution for any week of 4 unemployment occurring between academic years or terms, whether 5 or not successive, or during an established and customary vaca- 6 tion period or holiday recess. However, when benefits are paid 7 based on service with 1 or more base period employers other than 8 an educational institution, the individual's weekly benefit rate 9 shall be calculated in accordance with subsection (b)(1) but 10 during the denial period the individual's weekly benefit payment 11 shall be reduced by the portion of the payment attributable to 12 base period wages paid by an educational institution and the 13 account or experience account of the educational institution 14 shall not be charged for benefits payable to the individual. 15 When a denial of benefits under subdivision (1) is no longer 16 applicable, benefits shall be paid and charged on the basis of 17 base period wages with each of the base period employers includ- 18 ing the educational institution. 19 (8)(9)For the purposes of this subsection, "academic 20 year" means that period, as defined by the educational institu- 21 tion, when classes are in session for that length of time 22 required for students to receive sufficient instruction or earn 23 sufficient credit to complete academic requirements for a partic- 24 ular grade level or to complete instruction in a noncredit 25 course. 26 (9)(10) BenefitsIN ACCORDANCE WITH SUBDIVISIONS (1), 27 (2), AND (3), BENEFITS FOR ANY WEEK OF UNEMPLOYMENT shall be 00763'01 38 1 denied, as provided in subdivisions (1), (2), and (3), for any2week of unemployment beginning on and after April 1, 1984,to an 3 individual who performedthoseservices DESCRIBED IN 4 SUBDIVISION (1), (2), OR (3) in an educational institution while 5 in the employ of an educational service agency. For the purpose 6 of this subdivision, "educational service agency" means a govern- 7 mental agency or governmental entity that is established and 8 operated exclusively for the purpose of providing the services to 9 1 or more educational institutions. 10 (j) For weeks of unemployment beginning after December 31, 11 1977, benefits shall not be paid to an individual on the basis of 12 any base period services, substantially all of which consist of 13 participating in sports or athletic events or training or prepar- 14 ing to so participate, for a week that commences during the 15 period between 2 successive sport seasons or similar periods if 16 the individual performed the services in the first of the seasons 17 or similar periods and there is a reasonable assurance that the 18 individual will perform the services in the later of the seasons 19 or similar periods. 20 (k)(1) For weeks of unemployment beginning after 21 December 31, 1977, benefits shall not be payable on the basis of 22 services performed by an alien unless the alien is an individual 23 who was lawfully admitted for permanent residence at the time the 24 services were performed, was lawfully present for the purpose of 25 performing the services, or was permanently residing in the 26 United States under color of law at the time the services were 27 performed, including an alien who was lawfully present in the 00763'01 39 1 United States undersection 203(a)(7) orsection 212(d)(5) of 2 the immigration and nationality act, CHAPTER 477, 66 STAT. 182, 8 3 U.S.C.1153 and1182. 4 (2) Any data or information required of individuals applying 5 for benefits to determine whether benefits are payable because of 6 their alien status are uniformly required from all applicants for 7 benefits. 8 (3) Where an individual whose application for benefits would 9 otherwise be approved, a determination that benefits to that 10 individual are not payable because of the individual's alien 11 status shall not be made except upon a preponderance of the 12 evidence. 13 (m)(1) An individual filing a new claim for unemployment 14 compensation under this act after September 30, 1982, at the time 15 of filing the claim, shall disclose whether the individual owes 16 child support obligations as defined in this subsection. If an 17 individual discloses that he or she owes child support obliga- 18 tions and is determined to be eligible for unemployment compensa- 19 tion, the commission shall notify the state or local child sup- 20 port enforcement agency enforcing the obligation that the indi- 21 vidual has been determined to be eligible for unemployment 22 compensation. 23 (2) Notwithstanding section 30, the commission shall deduct 24 and withhold from any unemployment compensation payable to an 25 individual who owes child support obligations by using whichever 26 of the following methods results in the greatest amount: 00763'01 40 1 (a) The amount, if any, specified by the individual to be 2 deducted and withheld under this subdivision. 3 (b) The amount, if any, determined pursuant to an agreement 4 submitted to the commission under section 454(19)(B)(i) of part D 5 of title IV of the social security act,chapter 531, 496Stat. 620,42 U.S.C. 654, by the state or local child support 7 enforcement agency. 8 (c) Any amount otherwise required to be so deducted and 9 withheld from unemployment compensation pursuant to legal pro- 10 cess, as that term is defined in section 462(e) of part D of 11 title IV of the social security act,chapter 531, 49 Stat. 620,12 42 U.S.C. 662, properly served upon the commission. 13 (3) The amount of unemployment compensation subject to 14 deduction under subdivision (2) is that portion that remains pay- 15 able to the individual after application of the recoupment provi- 16 sions of section 62(a) and the reduction provisions of 17 subsections (c) and (f). 18 (4) Any amount deducted and withheld under subdivision (2) 19 shall be paid by the commission to the appropriate state or local 20 child support enforcement agency. 21 (5) Any amount deducted and withheld under subdivision (2) 22 shall be treated for all purposes as if it were paid to the indi- 23 vidual as unemployment compensation and paid by the individual to 24 the state or local child support enforcement agency in satisfac- 25 tion of the individual's child support obligations. 26 (6) This subsection applies only if the state or local child 27 support enforcement agency agrees in writing to reimburse and 00763'01 41 1 does reimburse the commission for the administrative costs 2 incurred by the commission under this subsection that are attrib- 3 utable to child support obligations being enforced by the state 4 or local child support enforcement agency. The administrative 5 costs incurred shall be determined by the commission. The com- 6 mission, in its discretion, may require payment of administrative 7 costs in advance. 8 (7) As used in this subsection: 9 (a) "Unemployment compensation", for purposes of 10 subdivisions (1) through (5), means any compensation payable 11 under this act, including amounts payable by the commission pur- 12 suant to an agreement under any federal law providing for compen- 13 sation, assistance, or allowances with respect to unemployment. 14 (b) "Child support obligations" includes only obligations 15 that are being enforced pursuant to a plan described in 16 section 454 of part D of title IV of the social security act, 17chapter 531, 49 Stat. 620,42 U.S.C. 654, that has been 18 approved by the secretary of health and human services under 19 part D of title IV of the social security act, chapter 531, 49 20 Stat. 620, 42 U.S.C. 651 to669655, 656 TO 660, AND 663 TO 21 669b. 22 (c) "State or local child support enforcement agency" means 23 any agency of this state or a political subdivision of this state 24 operating pursuant to a plan described in subparagraph (b). 25(n) Subsection (i)(2) applies to services performed by26school bus drivers employed by a private contributing employer27holding a contractual relationship with an educational00763'01 42 1institution, but only if at least 75% of the individual's base2period wages with that employer are attributable to services per-3formed as a school bus driver.4(o)(1) For weeks of unemployment beginning after July 1,51996, unemployment benefits based on services by a seasonal6worker performed in seasonal employment shall be payable only for7weeks of unemployment that occur during the normal seasonal work8period. Benefits shall not be paid based on services performed9in seasonal employment for any week of unemployment beginning10after the effective date of this subdivision that begins during11the period between 2 successive normal seasonal work periods to12any individual if that individual performs the service in the13first of the normal seasonal work periods and if there is a rea-14sonable assurance that the individual will perform the service15for a seasonal employer in the second of the normal seasonal work16periods. If benefits are denied to an individual for any week17solely as a result of this subsection and the individual is not18offered an opportunity to perform in the second normal seasonal19work period for which reasonable assurance of employment had been20given, the individual is entitled to a retroactive payment of21benefits under this subsection for each week that the individual22previously filed a timely claim for benefits. An individual may23apply for any retroactive benefits under this subsection in24accordance with R 421.210 of the Michigan administrative code.25(2) Not less than 20 days before the estimated beginning26date of a normal seasonal work period, an employer may apply to27the commission in writing for designation as a seasonal00763'01 43 1employer. At the time of application, the employer shall2conspicuously display a copy of the application on the employer's3premises. Within 90 days after receipt of the application, the4commission shall determine if the employer is a seasonal5employer. A determination or redetermination of the commission6concerning the status of an employer as a seasonal employer, or a7decision of a referee or the board of review, or of the courts of8this state concerning the status of an employer as a seasonal9employer, which has become final, together with the record there-10of, may be introduced in any proceeding involving a claim for11benefits, and the facts found and decision issued in the determi-12nation, redetermination, or decision shall be conclusive unless13substantial evidence to the contrary is introduced by or on14behalf of the claimant.15(3) If the employer is determined to be a seasonal employer,16the employer shall conspicuously display on its premises a notice17of the determination and the beginning and ending dates of the18employer's normal seasonal work periods. The notice shall be19furnished by the commission. The notice shall additionally spec-20ify that an employee must timely apply for unemployment benefits21at the end of a first seasonal work period to preserve his or her22right to receive retroactive unemployment benefits in the event23that he or she is not reemployed by the seasonal employer in the24second of the normal seasonal work periods.25(4) The commission may issue a determination terminating an26employer's status as a seasonal employer on the commission's own27motion for good cause, or upon the written request of the00763'01 44 1employer. A termination determination under this subdivision2terminates an employer's status as a seasonal employer, and shall3become effective on the beginning date of the normal seasonal4work period that would have immediately followed the date the5commission issues the determination. A determination under this6subdivision is subject to review in the same manner and to the7same extent as any other determination under this act.8(5) An employer whose status as a seasonal employer is ter-9minated under subdivision (4) may not reapply for a seasonal10employer status determination until after a regularly recurring11normal seasonal work period has begun and ended.12(6) If a seasonal employer informs an employee who received13assurance of being rehired that, despite the assurance, the14employee will not be rehired at the beginning of the employer's15next normal seasonal work period, this subsection shall not pre-16vent the employee from receiving unemployment benefits in the17same manner and to the same extent he or she would receive bene-18fits under this act from an employer who has not been determined19to be a seasonal employer.20(7) A successor of a seasonal employer is considered to be a21seasonal employer unless the successor provides the commission,22within 120 days after the transfer, with a written request for23termination of its status as a seasonal employer in accordance24with subdivision (4).25(8) At the time an employee is hired by a seasonal employer,26the employer shall notify the employee in writing whether the27employee will be a seasonal worker. The employer shall provide00763'01 45 1the worker with written notice of any subsequent change in the2employee's status as a seasonal worker. If an employee of a sea-3sonal employer is denied benefits because that employee is a sea-4sonal worker, the employee may contest that designation in5accordance with section 32a.6(9) As used in this subsection:7(a) "Construction industry" means the work activity desig-8nated in major groups 15, 16, and 17 of the standard industrial9classification manual, United States office of management and10budget, 1987 edition.11(b) "Normal seasonal work period" means that period or those12periods of time determined pursuant to rules promulgated by the13commission during which an individual is employed in seasonal14employment.15(c) "Seasonal employment" means the employment of 1 or more16individuals primarily hired to perform services in an industry,17other than the construction industry, that does either of the18following:19(1) Customarily operates during regularly recurring periods20of 26 weeks or less in any 52-consecutive-week period.21(2) Customarily employs at least 50% of its employees for22regularly recurring periods of 26 weeks or less within a period23of 52 consecutive weeks.24(d) "Seasonal employer" means an employer, other than an25employer in the construction industry, who applies to the commis-26sion for designation as a seasonal employer and who the00763'01 46 1commission determines to be an employer whose operations and2business are substantially engaged in seasonal employment.3(e) "Seasonal worker" means a worker who has been paid wages4by a seasonal employer for work performed only during the normal5seasonal work period.6(10) If this subsection is found by the United States7department of labor to be contrary to the federal unemployment8tax act, chapter 23 of the internal revenue code of 1986, 269U.S.C. 3301 to 3311, or the social security act, chapter 531, 4910Stat. 620, and if conformity with the federal law is required as11a condition for full tax credit against the tax imposed under the12federal unemployment tax act or as a condition for receipt by the13commission of federal administrative grant funds under the social14security act, this subsection shall be invalid.15(p) Benefits shall not be paid to an individual based upon16his or her services as a school crossing guard for any week of17unemployment that begins between 2 successive academic years or18terms, if that individual performs the services of a school19crossing guard in the first of the academic years or terms and20has a reasonable assurance that he or she will perform those21services in the second of the academic years or terms.22 Sec. 29. (1) An individual is disqualified from receiving 23 benefits if he or she: 24 (a) Left work voluntarily without good cause attributable to 25 the employer or employing unit. However, iftheEITHER OF THE 26 FOLLOWING CONDITIONS ARE MET, THE LEAVING DOES NOT DISQUALIFY THE 27 INDIVIDUAL: 00763'01 47 1 (i) THE INDIVIDUAL LEAVING IS THE SPOUSE OF A FULL-TIME 2 EMPLOYEE WHO IS REQUIRED TO PERMANENTLY MOVE TO A GEOGRAPHIC 3 LOCATION DIFFERENT FROM THE GEOGRAPHIC LOCATION IN WHICH THAT 4 EMPLOYEE WAS ORIGINALLY EMPLOYED. 5 (ii) THE individual has an established benefit year in 6 effect and during that benefit year leaves unsuitable work within 7 60 days after the beginning of that work, the leaving does not 8 disqualify the individual. 9 (b) Was discharged for misconduct connected with the 10 individual's work or for intoxication while at work unless the 11 discharge was subsequently reduced to a disciplinary layoff or 12 suspension. 13 (c) Failed without good cause to apply for available suit- 14 able work after receiving from the employment office or the com- 15 mission notice of the availability of that work. 16 (d) Failed without good cause while unemployed to report to 17 the individual's former employer or employing unit within a rea- 18 sonable time after that employer or employing unit provided 19 notice of the availability of an interview concerning available 20 suitable work with the former employer or employing unit. 21 (e) Failed without good cause to accept suitable work 22 offered to the individual or to return to the individual's cus- 23 tomary self-employment, if any, when directed by the employment 24 office or the commission. 25 (f) Lost his or her job due to absence from work resulting 26 from a violation of law for which the individual was convicted 27 and sentenced to jail or prison. This subdivision does not apply 00763'01 48 1 if conviction of an individual results in a sentence to county 2 jail under conditions of day parole as provided inAct No. 60 of3the Public Acts of 1962, being sections 801.251 to 801.258 of the4Michigan Compiled Laws1962 PA 60, MCL 801.251 TO 801.258, or if 5 the conviction was for a traffic violation that resulted in an 6 absence of less than 10 consecutive work days from the 7 individual's place of employment. 8 (g) Is discharged, whether or not the discharge is subse- 9 quently reduced to a disciplinary layoff or suspension, for par- 10 ticipation in either of the following: 11 (i) A strike or other concerted action in violation of an 12 applicable collective bargaining agreement that results in cur- 13 tailment of work or restriction of or interference with 14 production. 15 (ii) A wildcat strike or other concerted action not autho- 16 rized by the individual's recognized bargaining representative. 17 (h) Was discharged for an act of assault and battery con- 18 nected with the individual's work. 19 (i) Was discharged for theft connected with the individual's 20 work. 21 (j) Was discharged for willful destruction of property con- 22 nected with the individual's work. 23 (k) Committed a theft after receiving notice of a layoff or 24 discharge, but before the effective date of the layoff or dis- 25 charge, resulting in loss or damage to the employer who would 26 otherwise be chargeable for the benefits, regardless of whether 27 the individual qualified for the benefits before the theft. 00763'01 49 1(l) Was employed by a temporary help firm, which as used in2this section means an employer whose primary business is to pro-3vide a client with the temporary services of 1 or more individu-4als under contract with the employer, to perform services for a5client of that firm if each of the following conditions is met:6(i) The temporary help firm provided the employee with a7written notice before the employee began performing services for8the client stating in substance both of the following:9(A) That within 7 days after completing services for a10client of the temporary help firm, the employee is under a duty11to notify the temporary help firm of the completion of those12services.13(B) That a failure to provide the temporary help firm with14notice of the employee's completion of services pursuant to15sub-subparagraph (A) constitutes a voluntary quit that will16affect the employee's eligibility for unemployment compensation17should the employee seek unemployment compensation following com-18pletion of those services.19(ii) The employee did not provide the temporary help firm20with notice that the employee had completed his or her services21for the client within 7 days after completion of his or her serv-22ices for the client.23 (l)(m)Was discharged for (i) Illegally ingesting, 24 injecting, inhaling, or possessing a controlled substance on the 25 premises of the employer, (ii) Refusing to submit to a drug test 26 that was required to be administered in a nondiscriminatory 27 manner, or (iii) Testing positive on a drug test, if the test was 00763'01 50 1 administered in a nondiscriminatory manner. If the worker 2 disputes the result of the testing, a generally accepted confir- 3 matory test shall be administered and shall also indicate a posi- 4 tive result for the presence of a controlled substance before a 5 disqualification of the worker under this subdivision. As used 6 in this subdivision: 7 (A) "Controlled substance" means that term as defined in 8 section 7104 of the public health code,Act No. 368 of the9Public Acts of 1978, being section 333.7104 of the Michigan10Compiled Laws1978 PA 368, MCL 333.7104. 11 (B) "Drug test" means a test designed to detect the illegal 12 use of a controlled substance. 13 (C) "Nondiscriminatory manner" means administered impar- 14 tially and objectively in accordance with a collective bargaining 15 agreement, rule, policy, a verbal or written notice, or a 16 labor-management contract. 17 (M)(n)Has an income exceeding $100,000.00 for the calen- 18 dar year in which he or she applies for benefits. This subdivi- 19 sion shall not take effect unless both of the following occur: 20 (i) Within 30 daysof the effective date of the act that21added subdivision (l)AFTER MARCH 26, 1996, the governor 22 requests from the United States department of labor a determina- 23 tion confirming whether this subdivision is in conformity with 24 the federal unemployment tax act, chapter 23,of SUBTITLE C OF 25 the internal revenue code of 1986, 26 U.S.C. 3301 to 3311, and 26 the social security act, CHAPTER 531, 49 Stat. 620, and whether 27 conformity with those federal acts is a condition for a full tax 00763'01 51 1 credit against the tax imposed under the federal unemployment tax 2 act,(FUTA)CHAPTER 23 OF SUBTITLE C OF THE INTERNAL REVENUE 3 CODE OF 1986, 26 U.S.C. 3301 TO 3311, or is a condition for state 4 receipt of federal administrative grant funds under the social 5 security act, CHAPTER 531, 49 STAT. 620. 6 (ii) The United States department of labor determines that 7 this subdivision is in conformity with the acts described in sub- 8 paragraph (i), or verifies that conformity with those federal 9 acts is not a condition for a tax credit or a grant described in 10 subparagraph (i). 11 (2) A disqualification under subsection (1) begins the week 12 in which the act or discharge that caused the disqualification 13 occurs and continues until the disqualified individual requali- 14 fies under subsection (3), except that for benefit years begin- 15 ning before the conversion date prescribed in section 75, the 16 disqualification does not prevent the payment of benefits if 17 there are credit weeks, other than multiemployer credit weeks, 18 after the most recent disqualifying act or discharge. 19 (3) After the week in which the disqualifying act or dis- 20 charge described in subsection (1) occurs, an individual who 21 seeks to requalify for benefits is subject to all of the 22 following: 23 (a) For benefit years established before the conversion date 24 described in section 75, the individual shall complete 6 requali- 25 fying weeks if he or she was disqualified under 26 subsection (1)(c), (d), (e), (f), OR (g),or (l),or 13 27 requalifying weeks if he or she was disqualified under subsection 00763'01 52 1 (1)(h), (i), (j), (k), or(m)(l). A requalifying week 2 required under this subsection shall be each week in which the 3 individual does any of the following: 4 (i) Earns or receives remuneration in an amount at least 5 equal to an amount needed to earn a credit week, as that term is 6 defined in section 50. 7 (ii) Otherwise meets all of the requirements of this act to 8 receive a benefit payment if the individual were not disqualified 9 under subsection (1). 10 (iii) Receives a benefit payment based on credit weeks sub- 11 sequent to the disqualifying act or discharge. 12 (b) For benefit years established before the conversion date 13 prescribed in section 75, if the individual is disqualified under 14 subsection (1)(a) or (b), he or she shall requalify, after the 15 week in which the disqualifying discharge occurred by earning in 16 employment for an employer liable under this act or the unemploy- 17 ment compensation act of another state an amount equal to, or in 18 excess of, 7 times the individual's potential weekly benefit 19 rate, calculated on the basis of employment with the employer 20 involved in the disqualification, or by earning in employment for 21 an employer liable under this act or the unemployment compensa- 22 tion act of another state an amount equal to, or in excess of, 40 23 times the state minimum hourly wage times 7, whichever is the 24 lesser amount. 25 (c) For benefit years established before the conversion date 26 prescribed in section 75, a benefit payable to an individual 27 disqualified under subsection (1)(a) or (b), shall be charged to 00763'01 53 1 the nonchargeable benefits account, and not to the account of the 2 employer with whom the individual was involved in the 3 disqualification. 4 (d) For benefit years beginning after the conversion date 5 prescribed in section 75, subsequent to the week in which the 6 disqualifying act or discharge occurred, an individual shall com- 7 plete 6 requalifying weeks if he or she was disqualified under 8 subsection (1)(c), (d), (e), (f), OR (g),or (l),or 13 requal- 9 ifying weeks if he or she was disqualified under 10 subsection (1)(h), (i), (j), (k), or(m)(l). A requalifying 11 week required under this subsection shall be each week in which 12 the individual does any of the following: 13 (i) Earns or receives remuneration in an amount equal to at 14 least 1/13 of the minimum amount needed in a calendar quarter of 15 the base period for an individual to qualify for benefits, 16 rounded down to the nearest whole dollar. 17 (ii) Otherwise meets all of the requirements of this act to 18 receive a benefit payment if the individual were not disqualified 19 under subsection (1). 20 (e) For benefit years beginning after the conversion date 21 prescribed in section 75, if the individual is disqualified under 22 subsection (1)(a) or (b), he or she shall requalify, after the 23 week in which the disqualifying act or discharge occurred by 24 earning in employment for an employer liable under this act or 25 the unemployment compensation law of another state at least the 26 lesser of the following: 00763'01 54 1 (i) Seven times the individual's weekly benefit rate. 2 (ii) Forty times the state minimum hourly wage times 7. 3 (f) A benefit payable to the individual disqualified or sep- 4 arated under disqualifying circumstances under subsection (1)(a) 5 or (b), shall be charged to the nonchargeable benefits account, 6 and not to the account of the employer with whom the individual 7 was involved in the separation. Benefits payable to an individ- 8 ual determined by the commission to be separated under disquali- 9 fying circumstances shall not be charged to the account of the 10 employer involved in the disqualification for any period after 11 the employer notifies the commission of the claimant's possible 12 ineligibility or disqualification. If a disqualifying act or 13 discharge occurs during the individual's benefit year, any bene- 14 fits that may become payable to the individual in a later benefit 15 year based on employment with the employer involved in the dis- 16 qualification shall be charged to the nonchargeable benefits 17 account. 18 (4) The maximum amount of benefits otherwise available under 19 section 27(d) to an individual disqualified under subsection (1) 20 is subject to all of the following conditions: 21 (a) For benefit years established before the conversion date 22 prescribed in section 75, if the individual is disqualified under 23 subsection (1)(c), (d), (e), (f), OR (g), or (l)and the maxi- 24 mum amount of benefits is based on wages and credit weeks earned 25 from an employer before an act or discharge involving that 26 employer, the amount shall be reduced by an amount equal to the 00763'01 55 1 individual's weekly benefit rate as to that employer multiplied 2 by the lesser of either of the following: 3 (i) The number of requalifying weeks required of the indi- 4 vidual under this section. 5 (ii) The number of weeks of benefit entitlement remaining 6 with that employer. 7 (b) If the individual has insufficient or no potential bene- 8 fit entitlement remaining with the employer involved in the dis- 9 qualification in the benefit year in existence on the date of the 10 disqualifying determination, a reduction of benefits described in 11 this subsection shall apply in a succeeding benefit year with 12 respect to any benefit entitlement based upon credit weeks earned 13 with the employer before the disqualifying act or discharge. 14 (c) For benefit years established before the conversion date 15 prescribed in section 75, an individual disqualified under sub- 16 section (1)(h), (i), (j), (k), or(m)(l) is not entitled to 17 benefits based on wages and credit weeks earned before the dis- 18 qualifying act or discharge with the employer involved in the 19 disqualification. 20 (d) The benefit entitlement of an individual disqualified 21 under subsection (1)(a) or (b) is not subject to reduction as a 22 result of that disqualification. 23 (e) A denial or reduction of benefits under this subsection 24 does not apply to benefits based upon multiemployer credit 25 weeks. 26 (f) For benefit years established after the conversion date 27 prescribed in section 75, if the individual is disqualified under 00763'01 56 1 subsection (1)(c), (d), (e), (f), OR (g),or (l),the maximum 2 number of weeks otherwise applicable in calculating benefits for 3 the individual under section 27(d) shall be reduced by the lesser 4 of the following: 5 (i) The number of requalifying weeks required of the indi- 6 vidual under this subsection. 7 (ii) The number of weeks of benefit entitlement remaining on 8 the claim. 9 (g) For benefit years beginning after the conversion date 10 prescribed in section 75, the benefits of an individual disquali- 11 fied under subsection (1)(h), (i), (j), (k), or(m)(l) shall 12 be reduced by 13 weeks and any weekly benefit payments made to 13 the claimant thereafter shall be reduced by the portion of the 14 payment attributable to base period wages paid by the base period 15 employer involved in a disqualification under subsection (1)(h), 16 (i), (j), (k), or(m)(l). 17 (5) If an individual leaves work to accept permanent 18 full-time work with another employer and performs services for 19 that employer, or if an individual leaves work to accept a recall 20 from a former employer: 21 (a) Subsection (1) does not apply. 22 (b) Wages earned with the employer whom the individual last 23 left, including wages previously transferred under this subsec- 24 tion to the last employer, for the purpose of computing and 25 charging benefits, are wages earned from the employer with whom 26 the individual accepted work or recall, and benefits paid based 27 upon those wages shall be charged to that employer. 00763'01 57 1 (c) When issuing a determination covering the period of 2 employment with a new or former employer described in this sub- 3 section, the commission shall advise the chargeable employer of 4 the name and address of the other employer, the period covered by 5 the employment, and the extent of the benefits that may be 6 charged to the account of the chargeable employer. 7 (6) In determining whether work is suitable for an individu- 8 al, the commission shall consider the degree of risk involved to 9 the individual's health, safety, and morals, the individual's 10 physical fitness and prior training, THE INDIVIDUAL'S EXPERIENCE 11 AND PRIOR EARNINGS, the individual's length of unemployment and 12 prospects for securing local work in the individual's customary 13 occupation, and the distance of the available work from the 14 individual's residence.Additionally, the commission shall con-15sider the individual's experience and prior earnings, subject to16the following limitation:17(a) An individual unemployed for 1 to 12 weeks who refuses18an offer of work determined to be suitable under this section19shall be denied benefits if the pay rate for that work is at20least 80% of the gross pay rate he or she received immediately21before becoming unemployed.22(b) An individual unemployed for 13 to 20 weeks who refuses23an offer of work determined to be suitable under this section24shall be denied benefits if the pay rate for that work is at25least 75% of the gross pay rate he or she received immediately26before becoming unemployed.00763'01 58 1(c) An individual unemployed for more than 20 weeks who2refuses an offer of work determined to be suitable under this3section shall be denied benefits if the pay rate for that work is4at least 70% of the gross pay rate he or she received immediately5before becoming unemployed.6 (7) Work is not suitable and benefits shall not be denied 7 under this act to an otherwise eligible individual for refusing 8 to accept new work under any of the following conditions: 9 (a) If the position offered is vacant due directly to a 10 strike, lockout, or other labor dispute. 11 (b) If the remuneration, hours, or other conditions of the 12 work offered are substantially less favorable to the individual 13 than those prevailing for similar work in the locality. 14 (c) If as a condition of being employed, the individual 15 would be required to join a company union or to resign from or 16 refrain from joining a bona fide labor organization. 17 (8) All of the following apply to an individual who seeks 18 benefits under this act: 19 (a) An individual is disqualified from receiving benefits 20 for a week in which the individual's total or partial unemploy- 21 ment is due to either of the following: 22 (i) A labor dispute in active progress OTHER THAN A LOCKOUT 23 at the place at which the individual is or was last employed, or 24 a shutdown or start-up operation caused by that labor dispute. 25 (ii) A labor dispute, other than a lockout, in active 26 progress or a shutdown or start-up operation caused by that labor 27 dispute in any other establishment within the United States that 00763'01 59 1 is both functionally integrated with the establishment described 2 in subparagraph (i) and operated by the same employing unit. 3 (b) An individual's disqualification imposed or imposable 4 under this subsection is terminated if the individual performs 5 services in employment with an employer in at least 2 consecutive 6 weeks falling wholly within the period of the individual's total 7 or partial unemployment due to the labor dispute, and in addition 8 earns wages in each of those weeks in an amount equal to or 9 greater than the individual's actual or potential weekly benefit 10 rate with respect to those weeks based on the individual's 11 employment with the employer involved in the labor dispute. 12 (c) An individual is not disqualified under this subsection 13 if the individual is not directly involved in the labor dispute. 14 An individual is not directly involved in a labor dispute unless 15 any of the following are established: 16 (i) At the time or in the course of a labor dispute in the 17 establishment in which the individual was then employed, the 18 individual in concert with 1 or more other employees voluntarily 19 stopped working other than at the direction of the individual's 20 employing unit. 21 (ii) The individual is participating in, financing, or 22 directly interested in the labor dispute that causes the 23 individual's total or partial unemployment. The payment of regu- 24 lar union dues, in amounts and for purposes established before 25 the inception of the labor dispute, is not financing a labor dis- 26 pute within the meaning of this subparagraph. 00763'01 60 1 (iii) At any time a labor dispute in the establishment or 2 department in which the individual was employed does not exist, 3 and the individual voluntarily stops working, other than at the 4 direction of the individual's employing unit, in sympathy with 5 employees in some other establishment or department in which a 6 labor dispute is in progress. 7 (iv) The individual's total or partial unemployment is due 8 to a labor dispute that was or is in progress in a department, 9 unit, or group of workers in the same establishment. 10 (d) As used in this subsection, "directly interested" shall 11 be construed and applied so as not to disqualify individuals 12 unemployed as a result of a labor dispute the resolution of which 13 may not reasonably be expected to affect their wages, hours, or 14 other conditions of employment, and to disqualify individuals 15 whose wages, hours, or conditions of employment may reasonably be 16 expected to be affected by the resolution of the labor dispute. 17 A "reasonable expectation" of an effect on an individual's wages, 18 hours, or other conditions of employment exists, in the absence 19 of a substantial preponderance of evidence to the contrary, in 20 any of the following situations: 21 (i) If it is established that there is in the particular 22 establishment or employing unit a practice, custom, or contrac- 23 tual obligation to extend within a reasonable period to members 24 of the individual's grade or class of workers in the establish- 25 ment in which the individual is or was last employed changes in 26 terms and conditions of employment that are substantially similar 27 or related to some or all of the changes in terms and conditions 00763'01 61 1 of employment that are made for the workers among whom there 2 exists the labor dispute that has caused the individual's total 3 or partial unemployment. 4 (ii) If it is established that l of the issues in or pur- 5 poses of the labor dispute is to obtain a change in the terms and 6 conditions of employment for members of the individual's grade or 7 class of workers in the establishment in which the individual is 8 or was last employed. 9 (iii) If a collective bargaining agreement covers both the 10 individual's grade or class of workers in the establishment in 11 which the individual is or was last employed and the workers in 12 another establishment of the same employing unit who are actively 13 participating in the labor dispute, and that collective bargain- 14 ing agreement is subject by its terms to modification, supplemen- 15 tation, or replacement, or has expired or been opened by mutual 16 consent at the time of the labor dispute. 17 (e) In determining the scope of the grade or class of work- 18 ers, evidence of the following is relevant: 19 (i) Representation of the workers by the same national or 20 international organization or by local affiliates of that 21 national or international organization. 22 (ii) Whether the workers are included in a single, legally 23 designated, or negotiated bargaining unit. 24 (iii) Whether the workers are or within the past 6 months 25 have been covered by a common master collective bargaining agree- 26 ment that sets forth all or any part of the terms and conditions 00763'01 62 1 of the workers' employment, or by separate agreements that are or 2 have been bargained as a part of the same negotiations. 3 (iv) Any functional integration of the work performed by 4 those workers. 5 (v) Whether the resolution of those issues involved in the 6 labor dispute as to some of the workers could directly or indi- 7 rectly affect the advancement, negotiation, or settlement of the 8 same or similar issues in respect to the remaining workers. 9 (vi) Whether the workers are currently or have been covered 10 by the same or similar demands by their recognized or certified 11 bargaining agent or agents for changes in their wages, hours, or 12 other conditions of employment. 13 (vii) Whether issues on the same subject matter as those 14 involved in the labor dispute have been the subject of proposals 15 or demands made upon the employing unit that would by their terms 16 have applied to those workers. 17 (9) Except for an individual disqualified under subsection 18 (1)(g), or an individual whose disqualifying discharge under 19 subsection (1)(b) is determined or redetermined to be a disci- 20 plinary layoff or suspension, an individual is disqualified from 21 receiving benefits for the duration of the individual's disci- 22 plinary layoff or suspension if the individual becomes unemployed 23 because of a disciplinary layoff or suspension based upon any of 24 the following: 25 (a) Misconduct directly or indirectly connected with work. 26 (b) Participation in a strike or other concerted activity 27 resulting in a curtailment of work or restriction of or 00763'01 63 1 interference with production contrary to an applicable collective 2 bargaining agreement. 3 (c) Participation in a wildcat strike or other concerted 4 activity not authorized by the individual's recognized bargaining 5 representative. 6 (10) If a disqualifying discharge under subsection (1)(b) is 7 determined or redetermined to be a suspension, the disqualifica- 8 tion provided under subsection (9) applies from the date of the 9 discharge. 10 (11) Notwithstanding subsections (1) to (10), if the employ- 11 ing unit submits notice to the commission of possible ineligibil- 12 ity or disqualification beyond the time limits prescribed by com- 13 mission rule, the notice shall not form the basis of a determina- 14 tion of ineligibility or disqualification for a claim period com- 15 pensated before the receipt of the notice by the commission. 16 (12) An individual is disqualified from receiving benefits 17 for any week or part of a week in which the individual has 18 received, is receiving, or is seeking unemployment benefits under 19 an unemployment compensation law of another state or of the 20 United States. If the appropriate agency of the other state or 21 of the United States finally determines that the individual is 22 not entitled to unemployment benefits, the disqualification 23 described in this subsection does not apply. 24 (13) BENEFITS PAID TO AN INDIVIDUAL DESCRIBED IN 25 SUBSECTION (1)(A)(i) SHALL BE CHARGED TO THE NONCHARGEABLE BENE- 26 FITS ACCOUNT DESCRIBED IN SECTION 17. 00763'01 64 1 Sec. 50. (a) "Week" means calendar week, ending at midnight 2 Saturday, but all work performed and wages earned during a 3 working shift which starts before midnight Saturday shall be 4 included in the week in which that shift begins. 5 (b) Subject to subdivisions (1) and (2), for benefit years 6 established before January 1, 1996, "credit week" means a calen- 7 dar week of an individual's base period during which the individ- 8 ual earned wages equal to or greater than 20 times the state min- 9 imum hourly wage in effect on the first day of the calendar week 10 in which the individual filed an application for benefits. 11 However, for benefit years established on or after January 1, 12 1996 and before the conversion date prescribed in section 75, 13 "credit week" means a calendar week of an individual's base 14 period during which the individual earned wages equal to or 15 greater than3020 times the state minimum hourly wage in 16 effect on the first day of the calendar week in which the indi- 17 vidual filed an application for benefits. This subsection is 18 subject to the following: 19 (1) If an individual earns wages from more than 1 employer 20 in a credit week, that week shall be counted as 1 multiemployer 21 credit week and shall be governed by the provisions of section 22 20(e), unless the individual has earned sufficient wages in the 23 base period with only 1 of the employers for whom the individual 24 performed services in the week of concurrent employment to enti- 25 tle the individual to a maximum weekly benefit rate, in which 26 case, the week shall be a credit week with respect to that 27 employer only and not a multiemployer credit week. 00763'01 65 1 (2) Not more than 35 uncanceled and uncharged credit weeks 2 shall be counted as credit weeks. In determining the 35 credit 3 weeks to be used for computing and paying benefits, credit weeks 4 shall be counted in the following sequence: 5 (a) First, all credit weeks which are not multiemployer 6 credit weeks and which were earned with employers not involved in 7 a disqualifying act or discharge under section 29(1), and all 8 credit weeks earned with an employer involved in such a disquali- 9 fying act or discharge which were earned subsequent to the last 10 act or discharge in which the employer was involved, shall be 11 counted in inverse order of most recent employment with each 12 employer. 13 (b) Second, if the credit weeks counted under subparagraph 14 (a) total less than 35, all credit weeks which are not multiem- 15 ployer credit weeks and which were earned with each employer 16 before a disqualifying act or discharge shall be counted, in 17 inverse order to that in which the most recent disqualifying act 18 or discharge with each employer occurred, to the extent necessary 19 to use all available credit weeks with respect to the employers, 20 or a total of 35 credit weeks, whichever is less. 21 (c) Third, if the credit weeks counted under subparagraphs 22 (a) and (b) total less than 35, all multiemployer credit weeks 23 shall be counted, in inverse chronological order of their occur- 24 rence, to the extent necessary to count all available credit 25 weeks, or a total of 35 credit weeks, whichever is less. 26 (3) As used in this subsection: 00763'01 66 1 (a) "Uncharged credit week" means a credit week which has 2 not been used as a basis for a benefit payment, a reduction of 3 benefits under section 29(4), or a penalty disqualification under 4 section 62(b). 5 (b) "Uncanceled credit week" means a credit week which is 6 not canceled in accordance with section 62(b). 7 (4) There shall not be counted toward the wages required to 8 establish a credit week under this subsection payments in the 9 form of termination, separation, severance, or dismissal allow- 10 ances; or any payments for a vacation or a holiday unless the 11 payment has been made, or the right to receive it has irrevocably 12 vested, within 14 days following the vacation or holiday. 00763'01 Final page. FDD