Michigan Employers Contemplating Potential Layoffs
Michigan Employers Contemplating Potential Layoffs
As we all try to navigate these unprecedented times, employers are being faced with tough choices. Due to the unique situation, some Michigan policies have been changed. As you try to do what’s best for your employees and your business, here are some things to consider.
The Michigan Work Share Program allows employers to keep employees working with reduced hours, as opposed to laying people off. If your business qualifies, the impacted employees will work less hours while receiving partial unemployment benefits to help cover the difference. Find out if your business qualifies here.
Michigan’s Department of Labor and Economic Opportunity is encouraging employers to place employees on temporary leave as opposed to termination. During these uncertain times, it is unclear how furloughed workers will be able to receive federal resources. Placing them on temporary leave will allow employees to remain eligible for UI benefits in Michigan, and they may remain eligible for federal assistance. It is also important to note that under the governor’s order, “an employer or employing unit must not be charged for unemployment benefits if their employees become unemployed because of an executive order requiring them to close or limit operations.” You can find the steps for placing employees on temporary unpaid leave here.
Michigan employees eligible for unemployment benefits can file online at Michigan.gov/UIA or by calling 866-500-0017. A fact sheet explaining how to claim unemployment benefits can be found here. Under the governor’s executive order 2020-10, unemployment benefits are expanded to include sick, quarantined, and immunocompromised workers, as well as those caring for loved ones and first responders who have been exposed to COVID-19. Benefits have also been increased from 20-26 weeks. The application period has been extended from 14 to 28 days. There are also fewer requirements due to the suspension of in-person registration and work search requirements.
If you operate a business outside of Michigan, we encourage you to check your applicable state websites for info on this topic related to COVID-19.
As the situation continues to evolve, be aware that new details are coming out daily. We’ll keep you updated on the FMD COVID-19 Updates page. In the meantime, contact us with any questions you have about your situation.
