HOUSE BILL No. 6141 May 29, 2002, Introduced by Reps. Van Woerkom, Hart, Gosselin and Kuipers 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 section 29 (MCL 421.29), as amended by 2002 PA 192. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 29. (1) An individual is disqualified from receiving 2 benefits if he or she: 3 (a) Left work voluntarily without good cause attributable to 4 the employer or employing unit. An individual who left work is 5 presumed to have left work voluntarily without good cause attrib- 6 utable to the employer or employing unit. An individual claiming 7 benefits under this act has the burden of proof to establish that 8 he or she left work involuntarily or for good cause that was 9 attributable to the employer or employing unit. However, if the 10 individual has an established benefit year in effect and during 11 that benefit year leaves unsuitable work within 60 days after the 06703'02 LAJ 2 1 beginning of that work, the leaving does not disqualify the 2 individual. 3 (b) Was suspended or discharged for misconduct connected 4 with the individual's work or for intoxication while at work. 5 (c) Failed without good cause to apply for available suit- 6 able work after receiving from the employment office or the com- 7 mission notice of the availability of that work. 8 (d) Failed without good cause while unemployed to report to 9 the individual's former employer or employing unit within a rea- 10 sonable time after that employer or employing unit provided 11 notice of the availability of an interview concerning available 12 suitable work with the former employer or employing unit. 13 (e) Failed without good cause to accept suitable work 14 offered to the individual or to return to the individual's cus- 15 tomary self-employment, if any, when directed by the employment 16 office or the commission. An employer that receives a monetary 17 determination under section 32 may notify the unemployment agency 18 regarding the availability of suitable work with the employer on 19 the monetary determination or other form provided by the unem- 20 ployment agency. Upon receipt of the notice of the availability 21 of suitable work, the unemployment agency shall notify the claim- 22 ant of the availability of suitable work. 23 (f) Lost his or her job due to absence from work resulting 24 from a violation of law for which the individual was convicted 25 and sentenced to jail or prison. This subdivision does not apply 26 if conviction of an individual results in a sentence to county 27 jail under conditions of day parole as provided in 1962 PA 60, 06703'02 3 1 MCL 801.251 to 801.258, or if the conviction was for a traffic 2 violation that resulted in an absence of less than 10 consecutive 3 work days from the individual's place of employment. 4 (g) Is discharged, whether or not the discharge is subse- 5 quently reduced to a disciplinary layoff or suspension, for par- 6 ticipation in either of the following: 7 (i) A strike or other concerted action in violation of an 8 applicable collective bargaining agreement that results in cur- 9 tailment of work or restriction of or interference with 10 production. 11 (ii) A wildcat strike or other concerted action not autho- 12 rized by the individual's recognized bargaining representative. 13 (h) Was discharged for an act of assault and battery con- 14 nected with the individual's work. 15 (i) Was discharged for theft connected with the individual's 16 work. 17 (j) Was discharged for willful destruction of property con- 18 nected with the individual's work. 19 (k) Committed a theft after receiving notice of a layoff or 20 discharge, but before the effective date of the layoff or dis- 21 charge, resulting in loss or damage to the employer who would 22 otherwise be chargeable for the benefits, regardless of whether 23 the individual qualified for the benefits before the theft. 24 (l) Was employed by a temporary help firm, which as used in 25 this section means an employer whose primary business is to pro- 26 vide a client with the temporary services of 1 or more 27 individuals under contract with the employer, to perform services 06703'02 4 1 for a client of that firm if each of the following conditions is 2 met: 3 (i) The temporary help firm provided the employee with a 4 written notice before the employee began performing services for 5 the client stating in substance both of the following: 6 (A) That within 7 days after completing services for a 7 client of the temporary help firm, the employee is under a duty 8 to notify the temporary help firm of the completion of those 9 services. 10 (B) That a failure to provide the temporary help firm with 11 notice of the employee's completion of services pursuant to 12 sub-subparagraph (A) constitutes a voluntary quit that will 13 affect the employee's eligibility for unemployment compensation 14 should the employee seek unemployment compensation following com- 15 pletion of those services. 16 (ii) The employee did not provide the temporary help firm 17 with notice that the employee had completed his or her services 18 for the client within 7 days after completion of his or her serv- 19 ices for the client. 20 (m) Was discharged for (i) Illegally ingesting, injecting, 21 inhaling, or possessing a controlled substance on the premises of 22 the employer, (ii) Refusing to submit to a drug test that was 23 required to be administered in a nondiscriminatory manner, or 24 (iii) Testing positive on a drug test, if the test was adminis- 25 tered in a nondiscriminatory manner. If the worker disputes the 26 result of the testing, a generally accepted confirmatory test 27 shall be administered and shall also indicate a positive result 06703'02 5 1 for the presence of a controlled substance before a 2 disqualification of the worker under this subdivision. As used 3 in this subdivision: 4 (A) "Controlled substance" means that term as defined in 5 section 7104 of the public health code, 1978 PA 368, 6 MCL 333.7104. 7 (B) "Drug test" means a test designed to detect the illegal 8 use of a controlled substance. 9 (C) "Nondiscriminatory manner" means administered impar- 10 tially and objectively in accordance with a collective bargaining 11 agreement, rule, policy, a verbal or written notice, or a 12 labor-management contract. 13 (N) IS RECEIVING COMMISSION COMPENSATION. AS USED IN THIS 14 SUBDIVISION, "COMMISSION" MEANS COMPENSATION ACCRUING TO A SALES 15 REPRESENTATIVE FOR PAYMENT BY A PRINCIPAL, THE RATE OF WHICH IS 16 EXPRESSED AS A PERCENTAGE OF THE AMOUNT OF ORDERS OR SALES OR AS 17 A PERCENTAGE OF THE DOLLAR AMOUNT OF PROFITS. 18 (2) A disqualification under subsection (1) begins the week 19 in which the act or discharge that caused the disqualification 20 occurs and continues until the disqualified individual requali- 21 fies under subsection (3), except that for benefit years begin- 22 ning before the conversion date prescribed in section 75, the 23 disqualification does not prevent the payment of benefits if 24 there are credit weeks, other than multiemployer credit weeks, 25 after the most recent disqualifying act or discharge. 26 (3) After the week in which the disqualifying act or 27 discharge described in subsection (1) occurs, an individual who 06703'02 6 1 seeks to requalify for benefits is subject to all of the 2 following: 3 (a) For benefit years established before the conversion date 4 described in section 75, the individual shall complete 6 requali- 5 fying weeks if he or she was disqualified under 6 subsection (1)(c), (d), (e), (f), (g), or (l), or 13 requalifying 7 weeks if he or she was disqualified under subsection (1)(h), (i), 8 (j), (k), or (m). A requalifying week required under this sub- 9 section shall be each week in which the individual does any of 10 the following: 11 (i) Earns or receives remuneration in an amount at least 12 equal to an amount needed to earn a credit week, as that term is 13 defined in section 50. 14 (ii) Otherwise meets all of the requirements of this act to 15 receive a benefit payment if the individual were not disqualified 16 under subsection (1). 17 (iii) Receives a benefit payment based on credit weeks sub- 18 sequent to the disqualifying act or discharge. 19 (b) For benefit years established before the conversion date 20 prescribed in section 75, if the individual is disqualified under 21 subsection (1)(a) or (b), he or she shall requalify, after the 22 week in which the disqualifying discharge occurred by earning in 23 employment for an employer liable under this act or the unemploy- 24 ment compensation act of another state an amount equal to, or in 25 excess of, 7 times the individual's potential weekly benefit 26 rate, calculated on the basis of employment with the employer 27 involved in the disqualification, or by earning in employment for 06703'02 7 1 an employer liable under this act or the unemployment 2 compensation act of another state an amount equal to, or in 3 excess of, 40 times the state minimum hourly wage times 7, which- 4 ever is the lesser amount. 5 (c) For benefit years established before the conversion date 6 prescribed in section 75, a benefit payable to an individual dis- 7 qualified under subsection (1)(a) or (b), shall be charged to the 8 nonchargeable benefits account, and not to the account of the 9 employer with whom the individual was involved in the 10 disqualification. 11 (d) For benefit years beginning after the conversion date 12 prescribed in section 75, subsequent to the week in which the 13 disqualifying act or discharge occurred, an individual shall com- 14 plete 13 requalifying weeks if he or she was disqualified under 15 subsection (1)(c), (d), (e), (f), (g), or (l), or 26 requalifying 16 weeks if he or she was disqualified under subsection (1)(h), (i), 17 (j), (k), or (m). A requalifying week required under this sub- 18 section shall be each week in which the individual does any of 19 the following: 20 (i) Earns or receives remuneration in an amount equal to at 21 least 1/13 of the minimum amount needed in a calendar quarter of 22 the base period for an individual to qualify for benefits, 23 rounded down to the nearest whole dollar. 24 (ii) Otherwise meets all of the requirements of this act to 25 receive a benefit payment if the individual were not disqualified 26 under subsection (1). 06703'02 8 1 (e) For benefit years beginning after the conversion date 2 prescribed in section 75 and beginning before the effective date 3 of the amendatory act that added section 13l, if the individual 4 is disqualified under subsection (1)(a) or (b), he or she shall 5 requalify, after the week in which the disqualifying act or dis- 6 charge occurred by earning in employment for an employer liable 7 under this act or the unemployment compensation law of another 8 state at least the lesser of the following: 9 (i) Seven times the individual's weekly benefit rate. 10 (ii) Forty times the state minimum hourly wage times 7. 11 (f) For benefit years beginning after the conversion date 12 prescribed in section 75 and after the effective date of the 13 amendatory act that added section 13l, if the individual is dis- 14 qualified under subsection (1)(a), he or she shall requalify, 15 after the week in which the disqualifying act or discharge 16 occurred by earning in employment for an employer liable under 17 this act or the unemployment compensation law of another state at 18 least 12 times the individual's weekly benefit rate. 19 (g) For benefit years beginning after the conversion date 20 prescribed in section 75 and after the effective date of the 21 amendatory act that added section 13l, if the individual is dis- 22 qualified under subsection (1)(b), he or she shall requalify, 23 after the week in which the disqualifying act or discharge 24 occurred by earning in employment for an employer liable under 25 this act or the unemployment compensation law of another state at 26 least 17 times the individual's weekly benefit rate. 06703'02 9 1 (h) A benefit payable to the individual disqualified or 2 separated under disqualifying circumstances under 3 subsection (1)(a) or (b), shall be charged to the nonchargeable 4 benefits account, and not to the account of the employer with 5 whom the individual was involved in the separation. Benefits 6 payable to an individual determined by the commission to be sepa- 7 rated under disqualifying circumstances shall not be charged to 8 the account of the employer involved in the disqualification for 9 any period after the employer notifies the commission of the 10 claimant's possible ineligibility or disqualification. If a dis- 11 qualifying act or discharge occurs during the individual's bene- 12 fit year, any benefits that may become payable to the individual 13 in a later benefit year based on employment with the employer 14 involved in the disqualification shall be charged to the non- 15 chargeable benefits account. 16 (4) The maximum amount of benefits otherwise available under 17 section 27(d) to an individual disqualified under subsection (1) 18 is subject to all of the following conditions: 19 (a) For benefit years established before the conversion date 20 prescribed in section 75, if the individual is disqualified under 21 subsection (1)(c), (d), (e), (f), (g), or (l) and the maximum 22 amount of benefits is based on wages and credit weeks earned from 23 an employer before an act or discharge involving that employer, 24 the amount shall be reduced by an amount equal to the 25 individual's weekly benefit rate as to that employer multiplied 26 by the lesser of either of the following: 06703'02 10 1 (i) The number of requalifying weeks required of the 2 individual under this section. 3 (ii) The number of weeks of benefit entitlement remaining 4 with that employer. 5 (b) If the individual has insufficient or no potential bene- 6 fit entitlement remaining with the employer involved in the dis- 7 qualification in the benefit year in existence on the date of the 8 disqualifying determination, a reduction of benefits described in 9 this subsection shall apply in a succeeding benefit year with 10 respect to any benefit entitlement based upon credit weeks earned 11 with the employer before the disqualifying act or discharge. 12 (c) For benefit years established before the conversion date 13 prescribed in section 75, an individual disqualified under sub- 14 section (1)(h), (i), (j), (k), or (m) is not entitled to benefits 15 based on wages and credit weeks earned before the disqualifying 16 act or discharge with the employer involved in the 17 disqualification. 18 (d) The benefit entitlement of an individual disqualified 19 under subsection (1)(a) or (b) is not subject to reduction as a 20 result of that disqualification. 21 (e) A denial or reduction of benefits under this subsection 22 does not apply to benefits based upon multiemployer credit 23 weeks. 24 (f) For benefit years established after the conversion date 25 prescribed in section 75, if the individual is disqualified under 26 subsection (1)(c), (d), (e), (f), (g), or (l), the maximum number 27 of weeks otherwise applicable in calculating benefits for the 06703'02 11 1 individual under section 27(d) shall be reduced by the lesser of 2 the following: 3 (i) The number of requalifying weeks required of the indi- 4 vidual under this subsection. 5 (ii) The number of weeks of benefit entitlement remaining on 6 the claim. 7 (g) For benefit years beginning after the conversion date 8 prescribed in section 75, the benefits of an individual disquali- 9 fied under subsection (1)(h), (i), (j), (k), or (m) shall be 10 reduced by 13 weeks and any weekly benefit payments made to the 11 claimant thereafter shall be reduced by the portion of the pay- 12 ment attributable to base period wages paid by the base period 13 employer involved in a disqualification under subsection (1)(h), 14 (i), (j), (k), or (m). 15 (5) If an individual leaves work to accept permanent 16 full-time work with another employer and performs services for 17 that employer, or if an individual leaves work to accept a recall 18 from a former employer: 19 (a) Subsection (1) does not apply. 20 (b) Wages earned with the employer whom the individual last 21 left, including wages previously transferred under this subsec- 22 tion to the last employer, for the purpose of computing and 23 charging benefits, are wages earned from the employer with whom 24 the individual accepted work or recall, and benefits paid based 25 upon those wages shall be charged to that employer. 26 (c) When issuing a determination covering the period of 27 employment with a new or former employer described in this 06703'02 12 1 subsection, the commission shall advise the chargeable employer 2 of the name and address of the other employer, the period covered 3 by the employment, and the extent of the benefits that may be 4 charged to the account of the chargeable employer. 5 (6) In determining whether work is suitable for an individu- 6 al, the commission shall consider the degree of risk involved to 7 the individual's health, safety, and morals, the individual's 8 physical fitness and prior training, the individual's length of 9 unemployment and prospects for securing local work in the 10 individual's customary occupation, and the distance of the avail- 11 able work from the individual's residence. Additionally, the 12 commission shall consider the individual's experience and prior 13 earnings, but an unemployed individual who refuses an offer of 14 work determined to be suitable under this section shall be denied 15 benefits if the pay rate for that work is at least 70% of the 16 gross pay rate he or she received immediately before becoming 17 unemployed. 18 (7) Work is not suitable and benefits shall not be denied 19 under this act to an otherwise eligible individual for refusing 20 to accept new work under any of the following conditions: 21 (a) If the position offered is vacant due directly to a 22 strike, lockout, or other labor dispute. 23 (b) If the remuneration, hours, or other conditions of the 24 work offered are substantially less favorable to the individual 25 than those prevailing for similar work in the locality. 06703'02 13 1 (c) If as a condition of being employed, the individual 2 would be required to join a company union or to resign from or 3 refrain from joining a bona fide labor organization. 4 (8) All of the following apply to an individual who seeks 5 benefits under this act: 6 (a) An individual is disqualified from receiving benefits 7 for a week in which the individual's total or partial unemploy- 8 ment is due to either of the following: 9 (i) A labor dispute in active progress at the place at which 10 the individual is or was last employed, or a shutdown or start-up 11 operation caused by that labor dispute. 12 (ii) A labor dispute, other than a lockout, in active 13 progress or a shutdown or start-up operation caused by that labor 14 dispute in any other establishment within the United States that 15 is both functionally integrated with the establishment described 16 in subparagraph (i) and operated by the same employing unit. 17 (b) An individual's disqualification imposed or imposable 18 under this subsection is terminated if the individual performs 19 services in employment with an employer in at least 2 consecutive 20 weeks falling wholly within the period of the individual's total 21 or partial unemployment due to the labor dispute, and in addition 22 earns wages in each of those weeks in an amount equal to or 23 greater than the individual's actual or potential weekly benefit 24 rate with respect to those weeks based on the individual's 25 employment with the employer involved in the labor dispute. 26 (c) An individual is not disqualified under this subsection 27 if the individual is not directly involved in the labor dispute. 06703'02 14 1 An individual is not directly involved in a labor dispute unless 2 any of the following are established: 3 (i) At the time or in the course of a labor dispute in the 4 establishment in which the individual was then employed, the 5 individual in concert with 1 or more other employees voluntarily 6 stopped working other than at the direction of the individual's 7 employing unit. 8 (ii) The individual is participating in, financing, or 9 directly interested in the labor dispute that causes the 10 individual's total or partial unemployment. The payment of regu- 11 lar union dues, in amounts and for purposes established before 12 the inception of the labor dispute, is not financing a labor dis- 13 pute within the meaning of this subparagraph. 14 (iii) At any time a labor dispute in the establishment or 15 department in which the individual was employed does not exist, 16 and the individual voluntarily stops working, other than at the 17 direction of the individual's employing unit, in sympathy with 18 employees in some other establishment or department in which a 19 labor dispute is in progress. 20 (iv) The individual's total or partial unemployment is due 21 to a labor dispute that was or is in progress in a department, 22 unit, or group of workers in the same establishment. 23 (d) As used in this subsection, "directly interested" shall 24 be construed and applied so as not to disqualify individuals 25 unemployed as a result of a labor dispute the resolution of which 26 may not reasonably be expected to affect their wages, hours, or 27 other conditions of employment, and to disqualify individuals 06703'02 15 1 whose wages, hours, or conditions of employment may reasonably be 2 expected to be affected by the resolution of the labor dispute. 3 A "reasonable expectation" of an effect on an individual's wages, 4 hours, or other conditions of employment exists, in the absence 5 of a substantial preponderance of evidence to the contrary, in 6 any of the following situations: 7 (i) If it is established that there is in the particular 8 establishment or employing unit a practice, custom, or contrac- 9 tual obligation to extend within a reasonable period to members 10 of the individual's grade or class of workers in the establish- 11 ment in which the individual is or was last employed changes in 12 terms and conditions of employment that are substantially similar 13 or related to some or all of the changes in terms and conditions 14 of employment that are made for the workers among whom there 15 exists the labor dispute that has caused the individual's total 16 or partial unemployment. 17 (ii) If it is established that l of the issues in or pur- 18 poses of the labor dispute is to obtain a change in the terms and 19 conditions of employment for members of the individual's grade or 20 class of workers in the establishment in which the individual is 21 or was last employed. 22 (iii) If a collective bargaining agreement covers both the 23 individual's grade or class of workers in the establishment in 24 which the individual is or was last employed and the workers in 25 another establishment of the same employing unit who are actively 26 participating in the labor dispute, and that collective 27 bargaining agreement is subject by its terms to modification, 06703'02 16 1 supplementation, or replacement, or has expired or been opened by 2 mutual consent at the time of the labor dispute. 3 (e) In determining the scope of the grade or class of work- 4 ers, evidence of the following is relevant: 5 (i) Representation of the workers by the same national or 6 international organization or by local affiliates of that 7 national or international organization. 8 (ii) Whether the workers are included in a single, legally 9 designated, or negotiated bargaining unit. 10 (iii) Whether the workers are or within the past 6 months 11 have been covered by a common master collective bargaining agree- 12 ment that sets forth all or any part of the terms and conditions 13 of the workers' employment, or by separate agreements that are or 14 have been bargained as a part of the same negotiations. 15 (iv) Any functional integration of the work performed by 16 those workers. 17 (v) Whether the resolution of those issues involved in the 18 labor dispute as to some of the workers could directly or indi- 19 rectly affect the advancement, negotiation, or settlement of the 20 same or similar issues in respect to the remaining workers. 21 (vi) Whether the workers are currently or have been covered 22 by the same or similar demands by their recognized or certified 23 bargaining agent or agents for changes in their wages, hours, or 24 other conditions of employment. 25 (vii) Whether issues on the same subject matter as those 26 involved in the labor dispute have been the subject of proposals 06703'02 17 1 or demands made upon the employing unit that would by their terms 2 have applied to those workers. 3 (9) Notwithstanding subsections (1) to (8), if the employing 4 unit submits notice to the commission of possible ineligibility 5 or disqualification beyond the time limits prescribed by commis- 6 sion rule, the notice shall not form the basis of a determination 7 of ineligibility or disqualification for a claim period compen- 8 sated before the receipt of the notice by the commission. 9 (10) An individual is disqualified from receiving benefits 10 for any week or part of a week in which the individual has 11 received, is receiving, or is seeking unemployment benefits under 12 an unemployment compensation law of another state or of the 13 United States. If the appropriate agency of the other state or 14 of the United States finally determines that the individual is 15 not entitled to unemployment benefits, the disqualification 16 described in this subsection does not apply. 06703'02 Final page. LAJ