Members of the Labor Caucus stand together at the Unemployment Reform Press Conference on Thursday, Sept. 18, 2025, at the Anderson House Office Building in Lansing.
LANSING, Mich., Sept. 18, 2025 — Members of the Michigan Legislative Labor Caucus came together today for a press conference unveiling their nine-bill package, House Bills 5000-5008, to update the unemployment insurance process and strengthen safety nets to help Michiganders experiencing financial hardship get back on their feet. Recent reports indicate that the economy added only 22,000 jobs in August, and manufacturing employment dropped by 78,000 jobs this year.
“Rising prices and economic uncertainty, spurred on by tariffs, has left many Michiganders feeling uneasy about the economic outlook, and those without employment, through no fault of their own, often bear the brunt of this,” said state Rep. Joey Andrews (D-St. Joseph). “That is why it is essential that we expand unemployment safeguards and protect workers, especially low-wage workers living paycheck to paycheck, by having an unemployment system that supports them effectively and fairly. My bill would ensure that fewer workers are misclassified as independent contractors, protecting their eligibility for state assistance if they were to lose their job. Losing a job is stressful enough, and this package ensures necessary benefits are available to the folks who need them.”
“Many people know that I represent the poorest state House district in Michigan. This package is about delivering real change and meaningful relief to the people we are honored to serve. It’s about ensuring families have support when they need it the most. Unemployment insurance is not a privilege — it’s a safeguard for those who lose their job through no fault of their own. It’s the safety net that every worker and every family deserves in return for the hard work and dedication they pour into our great state,” said state Rep. Donavan McKinney (D-Detroit).
“We are taking action to ensure that Michiganders facing unemployment due to no fault of their own do not have to navigate the crisis alone,” said state Rep. Mai Xiong (D-Warren). “As workers make their way up the employment ladder, student loans, child support and tax garnishment are too often burdens that pull them down. We should not be punishing Michiganders when they are desperately trying to find another job or care for their loved ones. My bill lowers Michigan’s garnishment rate so they can continue to pay off their debts while keeping up with the cost of living.”
Bills in the package would:
- Increase the benefit rate to 5.1% of the worker’s highest quarter earnings for low-wage workers not at the maximum rate.
- Allow an individual to earn up to half of their benefit rate without it reducing their benefits. Earning more than half of their benefit, their benefits will be reduced by 50 cents for every dollar they earn.
- Require all correspondence from the Unemployment Insurance Agency to be in “plain language,” defined as the reading level of a 4th grader.
- Increase Hardship Waiver to 200% of the federal poverty level.
- Delete the current burdensome language regarding involuntary leave for medical reasons.
- Delete the burdensome language “absent 3 days and not contacting the employer in a manner acceptable to the employer” which presumes voluntary leaving without good cause attributable to the employer and disqualifies the former worker for benefits.
- Require the UIA to have an in-person or telephone appeals hearing, provide the claimant a right to have counsel present and limit the UIA’s authority to collect repayments of benefits unless their appeal rights are exhausted or waived.
- Replace the IRS 20-factor test with the ABC test to determine whether a worker is an independent contractor.
- Lower the amount of garnishment to 20%, instead of 50%.
A recording of the press conference can be viewed here: facebook.com/share/v/1A1SCHr4mv/
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