Michigan House Bill HB4405

Michigan 2025-2026 Regular Session

• Introduced: 4/29/25
• Refer: 4/29/25

Caption

Employment security: benefits; low-wage school employees to collect unemployment benefits during the summer months; allow. Amends sec. 27 of 1936 (Ex Sess) PA 1 (MCL 421.27).

Impact

The bill aims to alleviate the financial strain on low-wage school employees who are unemployed during the summer months, particularly those who do not have sufficient income from other sources. By allowing these employees access to unemployment benefits, the bill could enhance economic stability for this demographic and prevent financial hardship during the summer break. However, it could also increase the burden on Michigan's unemployment compensation fund, necessitating careful fiscal management.

Summary

House Bill 4405 proposes amendments to the Michigan Employment Security Act, specifically focusing on the eligibility of low-wage school employees for unemployment benefits during summer months. The amendments would allow these individuals to collect unemployment benefits based on their earnings and the adjusted weekly benefit rates set forth in the bill. As outlined in the bill, these benefits are structured to account for dependents, adjusting the benefit amount based on economic changes and established guidelines for verifying claims.

Contention

Opponents of HB4405 may raise concerns regarding the proposed financial impact on the unemployment fund and the potential for increased fraud. There are worries that eligibility criteria for seasonal workers could lead to abuse of the system if not carefully monitored. Supporters, on the other hand, argue that this is a necessary adjustment to adapt to changing workforce needs and to support employees who play essential roles in the education system.

Notable_points

The bill revises the weekly benefit rates, with increases set to take effect over several years, which hinges on economic indicators such as the Consumer Price Index. This structured approach promotes fiscal responsibility while providing necessary support for low-wage workers. The adjustments planned in HB4405 set a precedent for how Michigan might consider unemployment benefits in the context of seasonal employment, particularly in the education sector.