Michigan House Bill HB4406

Michigan 2025-2026 Regular Session

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

Caption

Employment security: claimants; provisions regarding seasonal workers; eliminate. Amends secs. 27 & 28b of 1936 (Ex Sess) PA 1 (MCL 421.27 & 421.28b).

Impact

The proposed changes in HB 4406 could significantly impact the distribution of unemployment benefits for those involved in seasonal work by removing certain eligibility barriers that currently exist. By reevaluating how benefits are calculated and disbursed, particularly regarding retirement benefits, the bill could enhance access to unemployment compensation for a broader range of job seekers. The changes are framed within a context of adapting the benefits structure to better reflect economic realities, as it prepares to modify the benefit caps periodically based on inflation, reflected by the Consumer Price Index.

Summary

House Bill 4406 aims to amend provisions within the Michigan Employment Security Act, specifically addressing the eligibility and calculation of unemployment benefits for seasonal workers and establishing clearer regulations surrounding the treatment of retirement benefits. The bill proposes to eliminate provisions that currently consider the employment history of seasonal workers. Furthermore, it seeks to clarify and adjust the calculation of benefits related to dependents, with a notable change in how the maximum benefit rate is applied based on dependents starting from January 1, 2025. These adjustments include defined payments per dependent and incremental increases in maximum weekly benefits over the following years.

Contention

While many legislators support the bill on the grounds that it provides necessary updates to an outdated system, there are concerns regarding the elimination of protections for seasonal workers. Opponents argue that the proposed changes might lead to ambiguities in benefit determination for this particular group, subsequently leaving a gap in support for those who might need it the most during their off-season periods. The tension between streamlining unemployment processes and ensuring adequate support for vulnerable worker categories remains a focal point of discussion around HB 4406.