§ 421.28d-amended — Shared-work plan; approval by unemployment insurance agency; requirements; reduction percentage.

MICHIGAN EMPLOYMENT SECURITY ACT (EXCERPT) Act 1 of 1936 (Ex. Sess.) ***** 421.28d.amended THIS AMENDED SECTION IS EFFECTIVE JULY 17, 2026 ***** 421.28d.amended Shared-work plan; approval by unemployment insurance agency; requirements; reduction percentage. Sec. 28d. (1) The unemployment insurance agency shall approve a shared-work plan only if the plan meets all of the following requirements: (a) The shared-work plan applies to 1 affected unit. (b) All employees in the affected unit are participating employees, except that, until March 31, 2021, an employee whose hours of work per week determined under subdivision (e) are 40 or more hours must not be a participating employee. (c) There are no fewer than 2 participating employees, determined without regard to corporate officers. (d) The participating employees are identified by name and Social Security number. (e) The number of hours a participating employee will work each week during the effective period of the shared-work plan is the number of the employee's normal weekly hours of work reduced by the reduction percentage. (f) The plan includes an estimate of the number of employees who would have been laid off if the plan were not implemented. (g) The plan indicates the manner in which the employer will give advance notice, if feasible, to an employee whose hours of work per week under the plan will be reduced. (h) As a result of a decrease in the number of hours worked by each participating employee, there is a corresponding reduction in wages. (i) The shared-work plan does not affect the fringe benefits of any participating employee. (j) The specified effective period of the shared-work plan is 52 consecutive weeks or less and the benefits payable under the shared-work plan will not exceed 20 times the weekly benefit amount for each participating employee, calculated without regard to any existing benefit year. (k) The reduction percentage satisfies the requirements of subsection (2). (2) The reduction percentage under an approved shared-work plan must meet all of the following requirements: (a) The reduction percentage must be not less than 10% and not more than 60%. (b) The reduction percentage must be the same for all participating employees. (c) The reduction percentage must not change during the period of the shared-work plan unless the plan is modified in accordance with section 28i.

Legislative History

Add. 2012, Act 216 , Eff. Jan. 1, 2013 ;-- Am. 2020, Act 229 , Imd. Eff. Oct. 20, 2020 ;-- Am. 2020, Act 258 , Imd. Eff. Dec. 29, 2020 ;-- Am. 2024, Act 238 , Eff. July 17, 2026