State House Moves Bills to Improve State's Labor Climate  

On January 31st, the State House Oversight, Reform and Ethics Committee voted to approve a four-bill package that protects employees' hard-earned money; creates a real disincentive for illegal striking; and encourages cooperation between job providers and employees.The Michigan Chamber of Commerce supports this legislative package and we urge you to contact your lawmaker and ask him/her to support House Bills 5023-5026.

The legislative package: 

• Gives workers a choice about what funds they want deducted from their paychecks so they are not forced to subsidize causes with which they disagree (HB 5025).
• Fines public employees a day's salary for each day they illegally strike (HB 5023).
• Increases penalties for violation of the mass picketing statute and empowers employers to seek legal remedies to stop mass pickets (HB 5024).
• Eliminates the requirement of the employer to announce that a strike is taking place when advertising to fill positions of striking employees, thus enabling the employer to more easily recruit and hire new employees during a labor union dispute (HB 5026).

Please tell your elected official why these bills are important. Contact your lawmaker today and ask him/her to support House Bills 5023-5026!

For further information or an update, contact Wendy Block at 517/371-7678 or wblock@michamber.com. 

Unemployment Insurance Reform: Impact on Employers and 2012 UI Taxes  

On Dec. 19, 2011, Governor Snyder signed legislation to address Michigan's bankrupt unemployment insurance (UI) system. The new law provides a comprehensive solution to the UI crisis by authorizing the Michigan Finance Authority to issue bonds to repay the $3.2 billion debt to the federal government. The law also provides that an "obligation assessment" shall be assessed on all employers on both a fixed and experience rated formula.  For 2012, the minimum (base) bond obligation assessment will be $42 per employee. 

Although it's true that UI taxes are going up in 2012 due to the legislation, doing nothing would have been the most expensive option. In fact, the new law provides over $430 million in principal and interest savings for Michigan employers in tax year 2011 and 2012 and allows the state to avoid triggering a federal penalty in mid-2012, which would have cost Michigan businesses an estimated $739 million in higher UI taxes in 2013 and beyond. 

Job providers will soon receive a detailed explanation of these reforms and their new UI tax rate notice. This notice will come directly from the Michigan Department of Licensing and Regulatory Affairs. Michigan Chamber members who have questions are encouraged to utilize the Department's new Office of Employer Ombudsman through its toll-free phone number at 1-855-484-2636 (4-UIAOEO) or via e-mail at OEO@michigan.gov. The Office is open from 8:30 a.m. to 4:30 p.m., Monday through Friday. You may also contact Wendy Block, Director of Health Policy and Human Resources for the Michigan Chamber at wblock@michamber.com or 517/371-7678.

Learn more about the new law here.