June 29, 2004, Introduced by Senators CHERRY, CLARK-COLEMAN, JACOBS, OLSHOVE, ALLEN, KUIPERS, BARCIA, PATTERSON, TOY, SCHAUER and BERNERO and referred to the Committee on Commerce and Labor.
A bill to amend 1936 (Ex Sess) PA 1, entitled
"Michigan employment security act,"
by amending section 29 (MCL 421.29), as amended by 2002 PA 192.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
1 Sec. 29. (1) An Except
as provided in subsection (5), an
2 individual is disqualified from receiving benefits if he or she:
3 (a) Left work voluntarily without good cause attributable to
4 the employer or employing unit. An individual who left work is
5 presumed to have left work voluntarily without good cause
6 attributable to the employer or employing unit. An individual
7 claiming benefits under this act has the burden of proof to
8 establish that he or she left work involuntarily or for good
9 cause that was attributable to the employer or employing unit.
10 However, if the either
of the following conditions is met, the
11 leaving does not disqualify the individual:
1 (i) The individual has an established benefit year in effect
2 and during that benefit year leaves unsuitable work within 60
3 days after the beginning
of that work. , the leaving does not
4 disqualify the
individual.
5 (ii) The individual is the spouse of a full-time member of
6 the United States armed forces, and the leaving is due to the
7 military duty reassignment of that member of the United States
8 armed forces to a different geographic location.
9 (b) Was suspended or discharged for misconduct connected with
10 the individual's work or for intoxication while at work.
11 (c) Failed without good cause to apply for available suitable
12 work after receiving from the employment office or the commission
13 notice of the availability of that work.
14 (d) Failed without good cause while unemployed to report to
15 the individual's former employer or employing unit within a
16 reasonable time after that employer or employing unit provided
17 notice of the availability of an interview concerning available
18 suitable work with the former employer or employing unit.
19 (e) Failed without good cause to accept suitable work offered
20 to the individual or to return to the individual's customary
21 self-employment, if any, when directed by the employment office
22 or the commission. An employer that receives a monetary
23 determination under section 32 may notify the unemployment agency
24 regarding the availability of suitable work with the employer on
25 the monetary determination or other form provided by the
26 unemployment agency. Upon receipt of the notice of the
27 availability of suitable work, the unemployment agency shall
1 notify the claimant of the availability of suitable work.
2 (f) Lost his or her job due to absence from work resulting
3 from a violation of law for which the individual was convicted
4 and sentenced to jail or prison. This subdivision does not apply
5 if conviction of an individual results in a sentence to county
6 jail under conditions of day parole as provided in 1962 PA 60,
7 MCL 801.251 to 801.258, or if the conviction was for a traffic
8 violation that resulted in an absence of less than 10 consecutive
9 work days from the individual's place of employment.
10 (g) Is discharged, whether or not the discharge is
11 subsequently reduced to a disciplinary layoff or suspension, for
12 participation in either of the following:
13 (i) A strike or other concerted action in violation of an
14 applicable collective bargaining agreement that results in
15 curtailment of work or restriction of or interference with
16 production.
17 (ii) A wildcat strike or other concerted action not
18 authorized by the individual's recognized bargaining
19 representative.
20 (h) Was discharged for an act of assault and battery
21 connected with the individual's work.
22 (i) Was discharged for theft connected with the individual's
23 work.
24 (j) Was discharged for willful destruction of property
25 connected with the individual's work.
26 (k) Committed a theft after receiving notice of a layoff or
27 discharge, but before the effective date of the layoff or
1 discharge, resulting in loss or damage to the employer who would
2 otherwise be chargeable for the benefits, regardless of whether
3 the individual qualified for the benefits before the theft.
4 (l) Was employed by a temporary help firm, which as used in
5 this section means an employer whose primary business is to
6 provide a client with the temporary services of 1 or more
7 individuals under contract with the employer, to perform services
8 for a client of that firm if each of the following conditions is
9 met:
10 (i) The temporary help firm provided the employee with a
11 written notice before the employee began performing services for
12 the client stating in substance both of the following:
13 (A) That within 7 days after completing services for a client
14 of the temporary help firm, the employee is under a duty to
15 notify the temporary help firm of the completion of those
16 services.
17 (B) That a failure to provide the temporary help firm with
18 notice of the employee's completion of services pursuant to
19 sub-subparagraph (A) constitutes a voluntary quit that will
20 affect the employee's eligibility for unemployment compensation
21 should the employee seek unemployment compensation following
22 completion of those services.
23 (ii) The employee did not provide the temporary help firm
24 with notice that the employee had completed his or her services
25 for the client within 7 days after completion of his or her
26 services for the client.
27 (m) Was discharged
for (i) Illegally illegally
ingesting,
1 injecting, inhaling, or possessing a controlled substance on the
2 premises of the employer;
, (ii) Refusing refusing
to submit to
3 a drug test that was required to be administered in a
4 nondiscriminatory manner;
, or (iii)
Testing testing positive
5 on a drug test, if the test was administered in a
6 nondiscriminatory manner. If the worker disputes the result of
7 the testing, a generally accepted confirmatory test shall be
8 administered and shall also indicate a positive result for the
9 presence of a controlled substance before a disqualification of
10 the worker under this subdivision. As used in this subdivision:
11 (i) (A) "Controlled
substance" means that term as defined
12 in section 7104 of the public health code, 1978 PA 368,
13 MCL 333.7104.
14 (ii) (B) "Drug
test" means a test designed to detect the
15 illegal use of a controlled substance.
16 (iii) (C) "Nondiscriminatory
manner" means administered
17 impartially and objectively in accordance with a collective
18 bargaining agreement, rule, policy, a verbal or written notice,
19 or a labor-management contract.
20 (2) A disqualification under subsection (1) begins the week
21 in which the act or discharge that caused the disqualification
22 occurs and continues until the disqualified individual
23 requalifies under subsection (3), except that for benefit years
24 beginning before the
conversion date prescribed in section 75
25 October 1, 2000, the disqualification does not prevent the
26 payment of benefits if there are credit weeks, other than
27 multiemployer credit weeks, after the most recent disqualifying
1 act or discharge.
2 (3) After the week in which the disqualifying act or
3 discharge described in subsection (1) occurs, an individual who
4 seeks to requalify for benefits is subject to all of the
5 following:
6 (a) For benefit years
established before the conversion date
7 described in section
75 October 1, 2000, the
individual shall
8 complete 6 requalifying weeks if he or she was disqualified under
9 subsection (1)(c), (d), (e), (f), (g), or (l), or 13 requalifying
10 weeks if he or she was disqualified under subsection (1)(h), (i),
11 (j), (k), or (m). A requalifying week required under this
12 subsection subdivision shall be each week in which the
13 individual does any of the following:
14 (i) Earns or receives remuneration in an amount at least
15 equal to an amount needed to earn a credit week, as that term is
16 defined in section 50.
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 (iii) Receives a benefit payment based on credit weeks
21 subsequent to the disqualifying act or discharge.
22 (b) For benefit years
established before the conversion date
23 prescribed in section
75 October 1, 2000, if the
individual is
24 disqualified under subsection (1)(a) or (b), he or she shall
25 requalify, after the week in which the disqualifying discharge
26 occurred by earning in employment for an employer liable under
27 this act or the unemployment compensation act of another state an
1 amount equal to, or in excess of, 7 times the individual's
2 potential weekly benefit rate, calculated on the basis of
3 employment with the employer involved in the disqualification, or
4 by earning in employment for an employer liable under this act or
5 the unemployment compensation act of another state an amount
6 equal to, or in excess of, 40 times the state minimum hourly wage
7 times 7, whichever is the lesser amount.
8 (c) For benefit years
established before the conversion date
9 prescribed in section
75 October 1, 2000, a
benefit payable to
10 an individual
disqualified under subsection (1)(a) or (b) ,
11 shall be charged to the nonchargeable benefits account, and not
12 to the account of the employer with whom the individual was
13 involved in the disqualification.
14 (d) For benefit years
beginning on or after the conversion
15 date prescribed in
section 75 October 1, 2000,
subsequent to
16 after the week in which the disqualifying act or discharge
17 occurred, an individual shall complete 13 requalifying weeks if
18 he or she was disqualified under subsection (1)(c), (d), (e),
19 (f), (g), or (l), or 26 requalifying weeks if he or she was
20 disqualified under subsection (1)(h), (i), (j), (k), or (m). A
21 requalifying week
required under this subsection subdivision
22 shall be each week in which the individual does any of the
23 following:
24 (i) Earns or receives remuneration in an amount equal to at
25 least 1/13 of the minimum amount needed in a calendar quarter of
26 the base period for an individual to qualify for benefits,
27 rounded down to the nearest whole dollar.
1 (ii) Otherwise meets all of the requirements of this act to
2 receive a benefit payment if the individual were not disqualified
3 under subsection (1).
4 (e) For benefit years
beginning on or after the conversion
5 date prescribed in
section 75 October 1, 2000
and beginning
6 before the effective
date of the amendatory act that added
7 section 13l April 26, 2002,
if the individual is disqualified
8 under subsection (1)(a) or (b), he or she shall requalify, after
9 the week in which the disqualifying act or discharge occurred by
10 earning in employment for an employer liable under this act or
11 the unemployment compensation law of another state at least the
12 lesser of the following:
13 (i) Seven times the individual's weekly benefit rate.
14 (ii) Forty times the state minimum hourly wage times 7.
15 (f) For benefit years
beginning after the conversion date
16 prescribed in section
75 and on or after the
effective date of
17 the amendatory act
that added section 13l April 26,
2002, if the
18 individual is disqualified under subsection (1)(a), he or she
19 shall requalify, after the week in which the disqualifying act or
20 discharge occurred by earning in employment for an employer
21 liable under this act or the unemployment compensation law of
22 another state at least 12 times the individual's weekly benefit
23 rate.
24 (g) For benefit years
beginning after the conversion date
25 prescribed in section
75 and on or after the
effective date of
26 the amendatory act
that added section 13l April 26,
2002, if the
27 individual is disqualified under subsection (1)(b), he or she
1 shall requalify, after the week in which the disqualifying act or
2 discharge occurred by earning in employment for an employer
3 liable under this act or the unemployment compensation law of
4 another state at least 17 times the individual's weekly benefit
5 rate.
6 (h) A benefit payable to the individual disqualified or
7 separated under disqualifying circumstances under
8 subsection (1)(a) or (b), shall be charged to the nonchargeable
9 benefits account, and not to the account of the employer with
10 whom the individual was involved in the separation. Benefits
11 payable to an individual determined by the commission to be
12 separated under disqualifying circumstances shall not be charged
13 to the account of the employer involved in the disqualification
14 for any period after the employer notifies the commission of the
15 claimant's possible ineligibility or disqualification. If a
16 disqualifying act or discharge occurs during the individual's
17 benefit year, any benefits that may become payable to the
18 individual in a later benefit year based on employment with the
19 employer involved in the disqualification shall be charged to the
20 nonchargeable benefits account.
21 (4) The maximum amount of benefits otherwise available under
22 section 27(d) to an individual disqualified under subsection (1)
23 is subject to all of the following conditions:
24 (a) For benefit years
established before the conversion date
25 prescribed in section
75 October 1, 2000, if the
individual is
26 disqualified under subsection (1)(c), (d), (e), (f), (g), or (l)
27 and the maximum amount of benefits is based on wages and credit
1 weeks earned from an employer before an act or discharge
2 involving that employer, the amount shall be reduced by an amount
3 equal to the individual's weekly benefit rate as to that employer
4 multiplied by the lesser of either of the following:
5 (i) The number of requalifying weeks required of the
6 individual under this section.
7 (ii) The number of weeks of benefit entitlement remaining
8 with that employer.
9 (b) If the individual has insufficient or no potential
10 benefit entitlement remaining with the employer involved in the
11 disqualification in the benefit year in existence on the date of
12 the disqualifying determination, a reduction of benefits
13 described in this subsection shall apply in a succeeding benefit
14 year with respect to any benefit entitlement based upon credit
15 weeks earned with the employer before the disqualifying act or
16 discharge.
17 (c) For benefit years
established before the conversion date
18 prescribed in section
75 October 1, 2000, an
individual
19 disqualified under subsection (1)(h), (i), (j), (k), or (m) is
20 not entitled to benefits based on wages and credit weeks earned
21 before the disqualifying act or discharge with the employer
22 involved in the disqualification.
23 (d) The benefit entitlement of an individual disqualified
24 under subsection (1)(a) or (b) is not subject to reduction as a
25 result of that disqualification.
26 (e) A denial or reduction of benefits under this subsection
27 does not apply to benefits based upon multiemployer credit
1 weeks.
2 (f) For benefit years
established on or after the conversion
3 date prescribed in
section 75 October 1, 2000,
if the individual
4 is disqualified under subsection (1)(c), (d), (e), (f), (g), or
5 (l), the maximum number of weeks otherwise applicable in
6 calculating benefits for the individual under section 27(d) shall
7 be reduced by the lesser of the following:
8 (i) The number of requalifying weeks required of the
9 individual under this subsection
section.
10 (ii) The number of weeks of benefit entitlement remaining on
11 the claim.
12 (g) For benefit years
beginning on or after the conversion
13 date prescribed in
section 75 October 1, 2000,
the benefits of
14 an individual disqualified under subsection (1)(h), (i), (j),
15 (k), or (m) shall be reduced by 13 weeks and any weekly benefit
16 payments made to the claimant thereafter shall be reduced by the
17 portion of the payment attributable to base period wages paid by
18 the base period employer involved in a disqualification under
19 subsection (1)(h), (i), (j), (k), or (m).
20 (5) If an individual leaves work to accept permanent
21 full-time work with another employer and performs services for
22 that employer, or if an individual leaves work to accept a recall
23 from a former employer, all of the following apply:
24 (a) Subsection (1) does not apply.
25 (b) Wages earned with the employer whom the individual last
26 left, including wages previously transferred under this
27 subsection to the last employer, for the purpose of computing and
1 charging benefits, are wages earned from the employer with whom
2 the individual accepted work or recall, and benefits paid based
3 upon those wages shall be charged to that employer.
4 (c) When issuing a determination covering the period of
5 employment with a new or former employer described in this
6 subsection, the commission shall advise the chargeable employer
7 of the name and address of the other employer, the period covered
8 by the employment, and the extent of the benefits that may be
9 charged to the account of the chargeable employer.
10 (6) In determining whether work is suitable for an
11 individual, the commission shall consider the degree of risk
12 involved to the individual's health, safety, and morals, the
13 individual's physical fitness and prior training, the
14 individual's length of unemployment and prospects for securing
15 local work in the individual's customary occupation, and the
16 distance of the available work from the individual's residence.
17 Additionally, the commission shall consider the individual's
18 experience and prior earnings, but an unemployed individual who
19 refuses an offer of work determined to be suitable under this
20 section shall be denied benefits if the pay rate for that work is
21 at least 70% of the gross pay rate he or she received immediately
22 before becoming unemployed.
23 (7) Work is not suitable and benefits shall not be denied
24 under this act to an otherwise eligible individual for refusing
25 to accept new work under any of the following conditions:
26 (a) If the position offered is vacant due directly to a
27 strike, lockout, or other labor dispute.
1 (b) If the remuneration, hours, or other conditions of the
2 work offered are substantially less favorable to the individual
3 than those prevailing for similar work in the locality.
4 (c) If as a condition of being employed, the individual would
5 be required to join a company union or to resign from or refrain
6 from joining a bona fide labor organization.
7 (8) All of the following apply to an individual who seeks
8 benefits under this act:
9 (a) An individual is disqualified from receiving benefits for
10 a week in which the individual's total or partial unemployment is
11 due to either of the following:
12 (i) A labor dispute in active progress at the place at which
13 the individual is or was last employed, or a shutdown or start-up
14 operation caused by that labor dispute.
15 (ii) A labor dispute, other than a lockout, in active
16 progress or a shutdown or start-up operation caused by that labor
17 dispute in any other establishment within the United States that
18 is both functionally integrated with the establishment described
19 in subparagraph (i) and operated by the same employing unit.
20 (b) An individual's disqualification imposed or imposable
21 under this subsection is terminated if the individual performs
22 services in employment with an employer in at least 2 consecutive
23 weeks falling wholly within the period of the individual's total
24 or partial unemployment due to the labor dispute, and in addition
25 earns wages in each of those weeks in an amount equal to or
26 greater than the individual's actual or potential weekly benefit
27 rate with respect to those weeks based on the individual's
1 employment with the employer involved in the labor dispute.
2 (c) An individual is not disqualified under this subsection
3 if the individual is not directly involved in the labor dispute.
4 An individual is not directly involved in a labor dispute unless
5 any of the following are established:
6 (i) At the time or in the course of a labor dispute in the
7 establishment in which the individual was then employed, the
8 individual in concert with 1 or more other employees voluntarily
9 stopped working other than at the direction of the individual's
10 employing unit.
11 (ii) The individual is participating in, financing, or
12 directly interested in the labor dispute that causes the
13 individual's total or partial unemployment. The payment of
14 regular union dues, in amounts and for purposes established
15 before the inception of the labor dispute, is not financing a
16 labor dispute within the meaning of this subparagraph.
17 (iii) At any time a labor dispute in the establishment or
18 department in which the individual was employed does not exist,
19 and the individual voluntarily stops working, other than at the
20 direction of the individual's employing unit, in sympathy with
21 employees in some other establishment or department in which a
22 labor dispute is in progress.
23 (iv) The individual's total or partial unemployment is due to
24 a labor dispute that was or is in progress in a department, unit,
25 or group of workers in the same establishment.
26 (d) As used in this subsection, "directly interested" shall
27 be construed and applied so as not to disqualify individuals
1 unemployed as a result of a labor dispute the resolution of which
2 may not reasonably be expected to affect their wages, hours, or
3 other conditions of employment, and to disqualify individuals
4 whose wages, hours, or conditions of employment may reasonably be
5 expected to be affected by the resolution of the labor dispute.
6 A "reasonable expectation" of an effect on an individual's wages,
7 hours, or other conditions of employment exists, in the absence
8 of a substantial preponderance of evidence to the contrary, in
9 any of the following situations:
10 (i) If it is established that there is in the particular
11 establishment or employing unit a practice, custom, or
12 contractual obligation to extend within a reasonable period to
13 members of the individual's grade or class of workers in the
14 establishment in which the individual is or was last employed
15 changes in terms and conditions of employment that are
16 substantially similar or related to some or all of the changes in
17 terms and conditions of employment that are made for the workers
18 among whom there exists the labor dispute that has caused the
19 individual's total or partial unemployment.
20 (ii) If it is established that l of the issues in or purposes
21 of the labor dispute is to obtain a change in the terms and
22 conditions of employment for members of the individual's grade or
23 class of workers in the establishment in which the individual is
24 or was last employed.
25 (iii) If a collective bargaining agreement covers both the
26 individual's grade or class of workers in the establishment in
27 which the individual is or was last employed and the workers in
1 another establishment of the same employing unit who are actively
2 participating in the labor dispute, and that collective
3 bargaining agreement is subject by its terms to modification,
4 supplementation, or replacement, or has expired or been opened by
5 mutual consent at the time of the labor dispute.
6 (e) In determining the scope of the grade or class of
7 workers, evidence of the following is relevant:
8 (i) Representation of the workers by the same national or
9 international organization or by local affiliates of that
10 national or international organization.
11 (ii) Whether the workers are included in a single, legally
12 designated, or negotiated bargaining unit.
13 (iii) Whether the workers are or within the past 6 months
14 have been covered by a common master collective bargaining
15 agreement that sets forth all or any part of the terms and
16 conditions of the workers' employment, or by separate agreements
17 that are or have been bargained as a part of the same
18 negotiations.
19 (iv) Any functional integration of the work performed by
20 those workers.
21 (v) Whether the resolution of those issues involved in the
22 labor dispute as to some of the workers could directly or
23 indirectly affect the advancement, negotiation, or settlement of
24 the same or similar issues in respect to the remaining workers.
25 (vi) Whether the workers are currently or have been covered
26 by the same or similar demands by their recognized or certified
27 bargaining agent or agents for changes in their wages, hours, or
1 other conditions of employment.
2 (vii) Whether issues on the same subject matter as those
3 involved in the labor dispute have been the subject of proposals
4 or demands made upon the employing unit that would by their terms
5 have applied to those workers.
6 (9) Notwithstanding subsections (1) to (8), if the employing
7 unit submits notice to the commission of possible ineligibility
8 or disqualification beyond the time limits prescribed by
9 commission rule, the notice shall not form the basis of a
10 determination of ineligibility or disqualification for a claim
11 period compensated before the receipt of the notice by the
12 commission.
13 (10) An individual is disqualified from receiving benefits
14 for any week or part of a week in which the individual has
15 received, is receiving, or is seeking unemployment benefits under
16 an unemployment compensation law of another state or of the
17 United States. If the appropriate agency of the other state or
18 of the United States finally determines that the individual is
19 not entitled to unemployment benefits, the disqualification
20 described in this subsection does not apply.