Michigan Unemployment Benefits

Unemployment compensation, also called unemployment insurance (U.I.), is a federal government program administered by the states in conjunction with the U.S. Department of Labor. It’s intended to provide qualified unemployed workers with financial and work search support.

This page summarizes Michigan’s unemployment law and links to more detailed articles that can help you answer specific questions. Because the law is complicated and may be different for your situation, we suggest consulting an employment law expert in a city near you to give you the best advice about your unique circumstances.

Unemployment Eligibility

Each state makes its own rules regarding eligibility and administration. Michigan might differ from other states regarding factors such as weekly benefit amounts and the duration of benefit payments. You can read more about the general unemployment process and requirements.

The Michigan Unemployment Insurance Agency (U.I.A.) administers the state’s unemployment insurance program.

A Michigan claimant must meet the following requirements to qualify for U.I.:

• Be available for work.
• Be able to work.
• Be seeking work.
• Have enough employment in a base period or alternate base period to establish a claim.

Am I Eligible for Unemployment Benefits if I Quit?

An individual who quits is typically ineligible for employment benefits. The one exception is if the individual left the job for good cause. How states define good cause varies, but generally, it is a condition that would have caused the individual harm or injury had they not quit.

In Michigan, a claimant must have lost their job through no fault of their own to qualify for unemployment benefits. The claimant must give the U.I.A. a detailed reason for their separation. The U.I.A. will issue a Notice of Determination showing whether the claimant is eligible for benefits.

What if I Get Fired?

A terminated individual is eligible for unemployment benefits only when they are not at fault for being fired. For example, repeated employee misconduct, such as excessive absences, intoxication on the job, or sexual harassment, will typically disqualify the individual for unemployment benefits.

In Michigan, the U.I.A. will evaluate the facts surrounding the claimant’s firing and issue a Notice of Determination showing whether the claimant is eligible for benefits.

What if I Am Laid Off?

An individual whose employer laid them off or has experienced a significant reduction in hours due to lack of work is typically eligible for unemployment benefits. However, they must meet all other state eligibility requirements.

Maintaining Eligibility for Unemployment Benefits

Michigan requires claimants to certify bi-weekly to maintain eligibility for unemployment benefits. In filing a weekly claim, the claimant answers questions and reports work search activity to confirm they are eligible to receive benefits for that period.

Reporting job search activity includes disclosing jobs applied for, interviews attended, offers received, and opportunities turned down. Turning down an offer of suitable employment can result in a loss of benefits in Michigan.

For instance, Walter, an electrician in Birmingham, may lose his benefits if he turns down a job offer where he can use his skills as an electrician.

What Is the Weekly Benefit Amount?

Benefits are available to eligible Michigan claimants for 14 to 20 weeks in the benefit year. The state may extend the benefit period in certain circumstances.

The claimant’s weekly benefit rate ranges to a $362 maximum based on their wages during the base period. The state pays benefit payments via debit card or direct deposit.

What Information Must the Employer Provide?

While states vary in what information they require from an employer for an unemployment insurance claim, the following is typical:

• Confirmation that the employer was required to pay unemployment insurance contributions on the employee’s wages.
• The reason for the employee’s separation.
• The employee’s last day of work.
• Whether the separation is temporary.
• The employee’s gross wages for each week during a specified period.

Are Unemployment Benefits Taxable?

Michigan unemployment insurance assistance benefits are subject to federal and state taxes. The state provides the worker with Form 1099-G reporting the unemployment benefits paid and any taxes withheld.

So, Carl, from Detroit, must report his unemployment benefits on his federal, state, and local taxes.

When Can Requirements for Unemployment Benefits Be Waived?

States or the federal government can waive the requirements for unemployment benefits under exceptional circumstances, such as when an emergency forces companies to shut down for some time. For example, New York, Florida, and several other states waived their work search requirement during the COVID-19 pandemic.

Additionally, Indiana, Louisiana, Michigan, and New York, among others, waive the work search requirement if the individual is temporarily laid off or seeking work through a union hiring hall.

What if Michigan Denies My Application for Benefits?

Michigan claimants can protest a Determination that denies benefits within 30 days from the Determination’s mailing date. The U.I.A. will issue a Redetermination after it receives the protest.

The claimant can appeal the Redetermination to the Michigan Office of Administrative Hearings (M.O.A.H.R.). M.O.A.H.R. will schedule a hearing with an Administrative Law Judge (A.L.J.). Hearings are by phone or in person.

The claimant can appeal the A.L.J.’s decision to the Unemployment Insurance Appeals Commission (U.I.A.C.) within 30 days of the decision’s mail date. This appeal must be in writing, and the claimant can file it by mail or fax.

If the U.I.A.C. decision is not favorable, the claimant can appeal to the Michigan Circuit Court within 30 days from the U.I.A.C. decision’s mailing date.

For example, Juan, who lives in Lansing, receives a Determination dated March 3, 2022, which denies him benefits. He has 30 days from that date to file a protest.

If you need help with filing an appeal, it is wise to discuss your options with an employment lawyer.