Michigan Mid-Year Legislative Update: Part 3 – Fall Preview

August 23, 2023

Michigan Mid-Year Legislative Update: Part 3 – Fall Preview

It has been a challenge to determine which issues that the Governor and Legislative majorities will choose to focus on in the Fall – there are a myriad of factors including the threat of an early adjournment with a special session and state representatives who are running for local office (read more on these developments HERE). Based on comments by legislative leaders, the governor, and one on one conversations, below are the pieces of known legislation that they and anti-small business special interests want to pass into law. It is imperative that small business owners reach out to legislators through NFIB alerts or direct communication with legislator offices to share the effects of these policies on small businesses in Michigan.

Join State Director Amanda Fisher for a Virtual Fall Preview on Wednesday, September 13, 2023 at noon. Register HERE.

Family Leave Optimal Coverage (Paid Family Leave) HB 4574 introduced by Rep. Helena Scott (D-7) and SB 332 by Senator Erika Geiss would require ALL employers to provide paid extended leave for employees – up to 15 weeks – for reasons of illness, domestic violence, military service, caregiving, etc. The system would be set up similar to the Unemployment Insurance program with employers required to pay a certain amount per employee into the fund. The cost per employee would be determined on a yearly basis based on how many employees are using the fund and how much the state is willing to contribute in the budgeting process. Unlike Unemployment Insurance, the system would not be experience rated and the employer could require the employee to pay up to 50% of the cost. Like the federal family medical leave act, employers would be required to allow a person to return to their position after 15 weeks with no penalties or retaliation. Similar legislation has recently passed in Minnesota and Illinois and is estimated to be up to a $1.5 Billion dollar tax on employers. Increases to Unemployment Insurance (UI) Weekly Rate and Duration of Benefits In response to a crippling $4 Billion debt in the UI Trust Fund in 2011, NFIB working with other business groups, legislators and then Governor Snyder passed sweeping reforms including tightening up rules on who could claim UI and job search requirements. Michigan also reduced its benefit weeks from the standard 26 weeks to 20 weeks. Unfortunately, there is now a move by the Whitmer Administration and legislative majorities to undo all of the 2011 reforms, increase the duration of benefits to 26 weeks or more and increase the weekly wage. A comprehensive bill package has not been introduced but is expected. “Polluter Pays” Legislation Environmental activists want to bring back laws that leave all owners of a property on the hook for pollution for which they may or may not have been responsible, including clean up to the highest level possible. Small business owners could be cited and forced to pay for contamination that is decades old and may not have even been illegal at the time. Bills have not yet been introduced but are expected. Rollback of 2012 Workers Compensation Reforms Legislation is being discussed that would roll back reforms to workers compensation made in 2012. These provisions included requiring an injury to be “medically distinguishable” from an employee’s prior condition to be compensable and provide a limitation of provide that a limitation of wage-earning capacity would occur only if an employee were unable to perform all jobs paying the maximum wages in work suitable to his or her qualifications and training and require an employee to make a good faith effort to find suitable work to continue wage loss compensation. To read more about the reforms passed in 2012, go HERE. A comprehensive bill package is expected in September. “Higher Costs for All” Insurance Act (aka “Bad Faith”) SB 329 and HB 4681 require all lines of insurance– home, auto, business policies, life, workers compensation, etc., exempting only health, to assume the claimant is in the right and pay claims immediately and even expenses from day one for certain kinds of claims. The bills also ability to sue insurance companies who violate the law and allows for physical, emotional, and punitive damages and dictates attorney’s fees. While this legislation may sound consumer friendly, but only benefits trial attorneys and those committing fraud. Whenever similar legislation has passed other states, including FL, NJ, WA, and CA, the insurance market has been decimated and costs for insurance of all kinds have skyrocketed between 20% and 50% each year. A recent FL Insurance department released a report showing that in the last 10 years, over $51 billion was paid out in claims in Florida. 71% of that money went to trial attorneys and public adjustors. 8% went to the consumer. Trial lawyers have called this their “Right-to-Work” and have made it a priority to pass before the end of the year. Repeal of the Local Government Labor Regulatory Limitation Act (Local Preemption) Discussed in Mid-Year Legislative Update Part 2. To take action and tell legislators to vote NO on these bills, go HERE. Elimination of Non-Renewable Fuel Sources/Gas Powered Appliances Discussed in Mid-Year Legislative Update Part 2. Repeal of the Fair and Open Competition in Governmental Construction Act (Project Labor Agreements) Discussed in Mid-Year Legislative Update Part 2 Water Management Districts/Drain Code Changes Discussed in Mid-Year Legislative Update Part 2

Topics:

Uncategorized

State:

Michigan

Get to know NFIB

NFIB is a member-driven organization advocating on behalf of small and independent businesses nationwide.

Learn More