LANSING, Mich. (Dec. 10, 2024) – The National Federation of Independent Business (NFIB), Michigan’s leading small business advocacy organization, expressed disappointment in today’s passage of Senate Bill 40. The legislation increases the duration of unemployment insurance benefits from 20 to 26 weeks and increases the weekly benefit from $362 to $614 over three years and indexing to inflation thereafter.

“We are extremely disappointed that the House chose to pass significant policy without any changes. Doubling the weekly benefit over three years goes too far too fast and will increase the unemployment insurance taxes and put the UI Trust Frund at risk,” said Amanda Fisher, NFIB Michigan State Director. “It is always important to remember that the Unemployment Insurance (UI) program is 100% employer funded. And because of actions taken in 2011, including limiting duration of benefits, the UI Trust Fund was able to weather the pandemic, but was decimated in the process. Increasing benefits adds extra pressure to a system that has not yet recovered and would make weathering another economic downturn difficult.”

“Small businesses want to make sure that those Michigan employees who have lost their jobs through no fault of their own are able to receive unemployment insurance,” Fisher continued. “But when many small businesses are struggling to find workers, any policy that could lead to tax increases falls flat.”

According to an NFIB member ballot, when asked if the time period to collect benefits should be increased, 86% of NFIB members responded “NO.” When asked should Michigan increase the current weekly maximum unemployment insurance benefit of $362 per week, 78% of NFIB members said “NO.”