Two packages of legislation approved by Governor Rick Snyder received considerable support from business groups.
Senate Bills 483 and 484, now Public Acts 267 and 268 of 2011, respectively, provide the State the ability to issue bonds in order to pay off the $3.2 billion unemployment debt to the federal government. In doing so, the State is considerably reducing the burden on Michigan business, which fund the unemployment insurance system, by eliminating the penalties and high federal interest rate on the loan.
Senate Bill 806, sponsored by Senator Jack Brandenburg (R-Harrison Township), is now Public Act 269 of 2011. Under this new statute, businesses are able to increase the wage base they use for figuring unemployment taxes as well as shorten the experience window from five years to three. Additionally, unemployed workers will be required to take a job after 10 weeks if the job pays at least 120 percent of their assistance amount or is equal to or greater than the area’s prevailing wage – even if the position is outside of their field of experience or skill.