|Photo Credit-Toledo Blade
Michigan Gov. Rick Snyder (R)
Signs Michigan Senate Bill
1094, known as the ‘Work-Share”
legislation into law June 28th.
Gov. Rick Snyder (R) signed into on June 28th Senate Bill 1094, a law work share bill allowing segmented employers who workers face potential layoffs by decreasing hours, to collect a limited form of unemployment benefits.
“This new alternative plan will enable Michigan to keep its skilled and talented work force employed,” Snyder said in a statement on MLive.“By providing partial compensation to workers with reduced hours, we can support both families and businesses as we continue rebuilding our economy.”
In this program an employer instead of laying off their workers and allowing a full collection of jobless benefits if approved by Michigan Unemployment Insurance Agency, would cut the employees’ work hours by 25 percent, from 40 to 30 hours a week.
If employers meets guidelines outlined in the legislation, workers could receive 25 percent of the unemployment check if they were collecting full unemployment benefits. Only employers that are up-to-date on their unemployment taxes would be allowed only use the program, once for a maximum of one year.
Employers’ could not lay off any employees in departments impacted during duration of the plan, for up to 52 weeks. The employee rights to collect other fringe benefits would not be affected by this law.
The legistation, subject to approval of the Michigan Unemployment Insurance Agency would take effect over a five year period from January 1, 2013 – January 1, 2018.