Michigan House Bill HB5002

Michigan 2025-2026 Regular Session

• Introduced: 9/18/25
• Refer: 9/18/25

Caption

Employment security: administration; plain language; require the unemployment agency to use in communications and determinations. Amends sec. 2 & 32b of 1939 (Ex Sess) PA 1 (MCL 421.2 & 421.32b) & adds sec. 32e.

Impact

The proposed amendments in HB5002 are expected to significantly impact the operations of the unemployment insurance agency. By mandating that all correspondence and documentation be simplified, the bill seeks to reduce confusion and improve the overall efficiency of the communication process. This shift may lead to higher levels of compliance as individuals are better able to comprehend the information provided to them. Additionally, the bill addresses concerns regarding the exhaustion of unemployment trust funds, proposing measures that may stabilize funding and address potential penalties associated with insufficient funds.

Summary

House Bill 5002 aims to amend the Michigan Employment Security Act by updating specific sections to enhance the clarity and accessibility of information provided by the unemployment insurance agency. The bill emphasizes the importance of using plain language in all communications relating to unemployment benefits and employer contributions, thereby ensuring that individuals can easily understand their rights and responsibilities under the law. The focus on plain language aims to address the complexities that often accompany legal and bureaucratic documents, which can obscure essential information for everyday users.

Contention

While the intentions behind HB5002 appear broadly supported, concerns may arise regarding its implementation. Stakeholders, including both employers and claimants, could have differing views on how effectively the provisions for 'plain language' will be enacted. There is potential for debate about what constitutes 'plain language' and whether the standards set by the legislation will indeed make a meaningful difference in individuals’ understanding of their rights and benefits. Moreover, the financial implications of issuing bonds to finance unemployment payments also present a contentious area, raising questions about the sustainability and necessity of such actions.

Notable_points

Noteworthy is the legislation's recognition of involuntary unemployment as a significant concern for public welfare, explicitly citing the need for legislative action to mitigate its effects. The call to establish a systematic accumulation of funds during employment periods underscores a proactive approach to aid those who become unemployed through no fault of their own. Overall, HB5002 represents an effort to modernize and humanize the interaction individuals have with the unemployment insurance system, although its effectiveness will depend heavily on regulatory adherence and the actual comprehensibility of the communications that result from these amendments.