Michigan Provides Guidance to Employers Contemplating Potential Layoffs

Please note: This article directly references information released on Michigan.gov's website. You can find the source article here: https://www.michigan.gov/coronavirus/0,9753,7-406-98163-522113--,00.html
The state of Michigan responded today to the many employers affected by the COVID-19 pandemic by issuing the guidance below. They are strongly urging job providers facing work shortages to place their employees on temporary leave as opposed to termination, so that they may remain eligible for potential federal assistance.

Work Share

If employers are financially distressed but hope to continue operations by cutting back hours, they are encouraged to use the Unemployment Insurance Agency’s  Work Share program  that allows employers to maintain employment levels and business operations during declines in regular business activity rather than laying off workers. More information about the program can be found at  www.michigan.gov/workshare .

Temporary Leave vs. Termination

Due to the uncertainty regarding potential congressional action regarding whether and how furloughed workers will be able to access federal paid sick, family and medical leave resources, employers are strongly urged to place employees on temporary leave and advise the worker that they expect to have work available within 120-days as opposed to termination. There is no additional cost to employers, employees remain eligible for Unemployment benefits through the state, and employees may remain eligible for potential federal assistance.  

Steps for employers placing employers on temporary unpaid leave:

  • Do not terminate the employee – specify a temporary/indefinite leave with return to work expected that is within 120 days.
  • Do not create a contractual obligation to bring the employee back to work – Let the employee know that the situation is fluid and subject to change.
  • Provide the employee with a formal Unemployment Compensation Notice. Employers will need to provide their Employer Account Number and Federal Identification Number.  
  • Communicate to the employee about their rights. Under Governor Whitmer’s recent Executive Order, workers are placed on leave, or are unable to work because they are sick, quarantined, immunocompromised, or have an unanticipated family care responsibility, are eligible for unemployment insurance benefits.
  • Ensure employers are provided information on how to obtain unemployment insurance benefits. A factsheet can be found here.
  • Get each employee’s up-to-date contact information.
  • Let employees know if you will be putting updated information on the entity’s website or intranet, if applicable.
  • Appoint a single, or limited number of individuals who will field questions, and communicate that information to employees.
  • Keep a tally of all questions and answers. Periodically share with employees.

The state is monitoring issues related to continued medical insurance coverage and will update accordingly.

Elimination of Certain Unemployment Costs to Employers

Under the governor’s order, an employer or employing unit must not be charged for unemployment benefits if their employees become unemployed because of an executive order requiring them to close or limit operations. 
UIA hosts Michigan employer webinars

The Unemployment Insurance Agency (UIA) will be hosting several hour-long informational webinars for Michigan employers regarding unemployment insurance and the recent Executive Orders 2020-09 and 2020-10 signed by Governor Gretchen Whitmer. All webinars will be conducted using Microsoft Skype for Business. To join the webinar, please click on the “Join Skype Meeting” link for the appropriate date and time. 

Below are the webinar dates, times and login information as follows:

Monday, March 23, 10 - 11 a.m.
Join Skype Meeting
Dial-in Number: (248) 509-0316
Conference ID: 501784127         

Monday, March 23, 2 - 3 p.m.
Join Skype Meeting
Dial-in Number: (248) 509-0316
Conference ID: 473769071

Tuesday, March 24, 10 - 11 a.m.
Join Skype Meeting
Dial-in Number: (248) 509-0316
Conference ID: 616070893

Tuesday, March 24, 2 - 3 p.m. 
Join Skype Meeting
Dial-in Number: (248) 509-0316
Conference ID: 794829308

Other Resources

The Michigan Economic Development Corporation’s call center stands ready to support businesses looking for assistance through other available state programs. For more information, visit the MEDC’s website:  www.michiganbusiness.org   or call 888.522.0103. The Michigan Small Business Development Center can also provide resources for small businesses impacted by COVID-19. Visit their website  https://sbdcmichigan.org/small-business-covid19/   for additional information. 

Governor Whitmer is also seeking additional solutions for small businesses impacted by COVID-19. Earlier this month, Congress passed legislation that makes $1 billion available to the U.S. Small Business Administration (SBA) to provide low-interest loans to small businesses, small agricultural cooperatives, and nonprofits that have suffered substantial economic losses as a result of the COVID-19 pandemic.
 
The governor has informed SBA that she is seeking an Economic Injury Disaster Loan Declaration for the state and has initiated the process to receive the declaration from SBA. Once granted, small businesses in qualifying areas will be able to access low-interest loans through the SBA. In the interim, we are encouraging small businesses that could benefit from SBA loans to start collecting the information they’ll need to complete and submit their application.   Examples of information needed can be found here . For additional information or to obtain help preparing the loan application in advance of the declaration, please contact the   Michigan SBA offices  in Detroit or Grand Rapids.

Information around this outbreak is changing rapidly. The latest information is available at   Michigan.gov/Coronavirus  and  CDC.gov/Coronavirus .  

Coronavirus Resource materials for Residents, HealthCare Professionals, Child Care Workers, Employees, and Employers can be found here: https://www.michigan.gov/coronavirus/0,9753,7-406-98178---,00.html