Michigan House Bill HB5748

Michigan 2023-2024 Regular Session

• Introduced: 5/30/24
• Refer: 5/30/24

Caption

Employment security: other; contribution rate increase for certain employers; prohibit. Amends 1936 (Ex Sess) PA 1 (MCL 421.1 - 421.75) by adding sec. 19b.

Impact

The introduction of HB5748 reflects the state's acknowledgment of the challenges faced by the agricultural industry, particularly in the poultry and livestock sectors, which are vulnerable to avian influenza outbreaks. By stabilizing contribution rates for affected employers, the bill intends to alleviate some financial burdens during a potentially devastating period for those businesses. This bill, therefore, has implications for both employment security and the livelihood of workers who depend on these industries for their jobs.

Summary

House Bill 5748 aims to amend the Michigan Employment Security Act by introducing a new section that protects certain employers from increased contribution rates due to layoffs caused by avian influenza. Specifically, if an employer lays off employees on or after April 3, 2024, as a direct result of avian influenza affecting poultry or livestock, their contribution rate will not increase as of January 1, 2024. This legislative action seeks to provide support to employers impacted by this agricultural crisis, which has significant implications for Michigan's economy and agricultural sector.

Contention

While the bill aims to provide necessary support for affected employers, potential points of contention include the broader implications of such financial protections. Critics may argue that this could lead to unintended consequences, such as employers misclassifying layoffs or a lack of accountability for businesses in terms of maintaining employee numbers. Additionally, there could be concerns regarding the financial implications for the state's unemployment insurance fund, particularly if such legislative measures become a trend in response to various agricultural challenges.