HB-5073, As Passed Senate, February 11, 2016

HOUSE BILL No. 5073

November 10, 2015, Introduced by Rep. Garcia and referred to the Committee on Commerce and Trade.

A bill to amend 1936 (Ex Sess) PA 1, entitled

"Michigan employment security act,"

by amending section 41 (MCL 421.41), as amended by 2005 PA 19.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 41. "Employer" means any of the following:

(1) An employing unit that in each of 20 different calendar

weeks within a calendar year, whether or not the weeks were

consecutive, has or had in employment 1 or more individuals

irrespective of whether the same individual was employed in each

week, or by which total remuneration of $1,000.00 or more for

employment was paid or payable within the calendar year.

(2) (a) Any individual, legal entity, or employing unit that

acquires the organization, trade, or business, or 75% or more of

the assets of another organization, trade, or business, which at

the time of the acquisition was an employer subject to this act.

(b) Any individual, legal entity, or employing unit that

becomes a transferee of business assets by any means otherwise than

in the ordinary course of trade from an employer, if there is

substantially common ownership, management, or control of the

transferor and transferee at the time of transfer.

(3) Any employing unit that has become an employer under

subdivision (1), (2), (4), (5), (6), (7), or (9) but has not, under

section 24 or 25, ceased to be an employer subject to this act.

(4) For the effective period of its election pursuant to

section 25, any other employing unit that has elected to become

fully subject to this act.

(5) (a) An employing unit that for some portion of a day in

each of 20 different calendar weeks, whether or not the weeks were

consecutive, in either the current or the preceding calendar year,

employed 10 or more individuals performing agricultural service,

regardless of whether the individuals were employed at the same

moment of time, or that, during any calendar quarter in either the

current or the preceding calendar year, paid remuneration in cash

of $20,000.00 or more to employees performing agricultural service.

(b) For the purposes of this subdivision, an individual who is

a member of a crew furnished by a farm labor contractor to perform

agricultural service for any farm operator shall be treated as an

employee of that farm labor contractor if the farm labor contractor

holds a valid certificate of registration under the migrant and

seasonal agricultural worker protection act, 29 USC 1801 to 1872;

or substantially all the members of the crew operate or maintain

tractors, mechanized harvesting or crop-dusting equipment, or any

other mechanized equipment, which is provided by the farm labor

contractor; and if the farm labor contractor is not an employee of

the farm operator within the meaning of this act.

individual who is furnished by a farm labor contractor to perform

agricultural service for a farm operator and who is not treated as

an employee of the farm labor contractor under ~~paragraph~~

subparagraph (b), the farm operator and not the farm labor

contractor shall be treated as the employer of the individual, and

the farm operator shall be treated as having paid cash remuneration

to the individual in an amount equal to the amount of cash

remuneration paid to the individual by the farm labor contractor,

either on the farm labor contractor's own behalf or on behalf of

the farm operator, for the agricultural service performed for the

farm operator.

(d) For the purposes of this subdivision, the term "farm labor

contractor" means an individual who does all of the following:

(i) Furnishes individuals to perform agricultural service for

a farm operator.

(ii) Pays, either on the individual's own behalf or on behalf

of a farm operator, the individuals furnished by the individual for

the agricultural service performed by them.

(iii) Has not entered into a written agreement with the farm

operator under which the farm labor contractor is designated as an

employee of the farm operator.

(6) An employing unit that paid cash remuneration of $1,000.00

or more for domestic service in any calendar quarter in the current

calendar year or the preceding calendar year. An employing unit

that is determined to be an employer under this subdivision shall

not be considered an employer of other covered services unless it

meets the test of being an employer under another subdivision of

this section.

(7) Any employing unit not otherwise an employer ~~by reason of~~

~~any other paragraph of~~ under this section for which services in

employment are performed ~~with respect to~~ for which the employing

unit is liable for any federal tax against which credit may be

taken for contributions required to be paid into a state

unemployment compensation fund; but services performed for the

employing unit ~~shall constitute~~ are employment for the purposes of

this act only to the extent that those services ~~constitute~~ are

employment with respect to which the federal tax is payable.

(8) For purposes of this section, a week that falls in 2

calendar years shall be considered to fall entirely within the

calendar year that contains the majority of days of that week.

(9) Notwithstanding subdivision (1), after December 31, 1977,

"employer" includes any employing unit for which services are

performed as ~~defined~~ described in section 42(8) or (9).

(10) For the purpose of determining the amount of

contributions due pursuant to section 44(2), ~~the provisions of~~

subdivisions (5) and (6) shall first apply with respect to

remuneration paid after December 31, 1977, for services performed

after that date.

(11) Except as specifically provided in the franchise