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Worker advocates welcome reforms to Michigan’s Unemployment System

Photo by Mark Stebnicki: https://www.pexels.com/photo/us-capitol-building-13727887/

January 23, 2025 – Governor Whitmer has signed key legislation passed at the end of the 2024 session that makes major improvements to how unemployment benefits are administered. Drafted by a workgroup led by State Senator John Cherry, these changes are an important step toward delivering a fast, fair, and efficient unemployment system and righting past mistakes made by the UIA.

Senate Bills 962 Cherry (D-Flint) , 975 Singh (D-East Lansing) and 981 Cavanaugh (D-Redford Twp) make major strides toward delivering an unemployment system that works for Michigan workers and that they can count on when they are out of work through no fault of their own. Among other changes, these new policies will improve equitable access to benefits and streamline the process to ensure workers have problems with their benefits resolved quickly and with the least number of administrative hearings. The new laws also increase access to unemployment debt relief for indigent workers and in circumstances where the Agency makes a mistake in administering benefits.

“Michigan workers and businesses deserve an accessible unemployment system that works for them.,” said Senator John Cherry (D-Flint). “

He added: “When employees and employers are having  difficulty, the last concern they should have is whether or not they can trust the unemployment process. It was clear that there were common sense reforms to be made to address problems, and I am proud to say that the bills passed will benefit all of those who interact with the Unemployment Agency.”

“These reforms are a life-line for workers who get stuck in administrative limbo or caught up in the system’s endless ‘hamster wheel’ of issues and appeals”, said Jacob Fallman with Sugar Law Center for Economic & Social Justice.

He added: “With this much-needed pressure release valve added to our system, we look forward to seeing an efficient resolution of benefit issues and more workers getting benefits more quickly.”

“Our state’s history of technical issues with unemployment – before and during the pandemic – makes it imperative that we have stopgaps to ensure eligible Michiganders receive the benefits they are entitled to.” said Lisa Ruby, director of advocacy at the Michigan Advocacy Program.

Ruby added: “This includes creating clear laws and simplifying processes that enable claimants, advocates and judges to know what the law says and how it should be applied. These legislative changes do not replace the need for a modern software program, but will go a long way in helping families to access the unemployment benefits they are entitled to. We appreciate the effort put forth to achieve these changes.”

Worker advocates applaud the legislature’s hard work on these important changes in policy and Governor Whitmer for signing them into law. As these new laws are implemented over the coming months and the UIA prepares to launch a new software system to handle unemployment benefit claims, worker advocates stand ready to ensure that the system delivers on its promises to Michigan workers and their families.

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