Legislators Consider Accountability Reforms to Unemployment Insurance Eligibility

On June 12, 2025 the Michigan House Economic Competitiveness Committee held a hearing on House Bill 4516. This bill would make key changes to the state’s unemployment insurance system by adding accountability measures that employers have been asking for since the pandemic.

In 2023, SBAM convened the Unemployment Insurance Task Force to evaluate shortcomings of Michigan’s unemployment insurance (UI) system in the wake of the COVID-19 pandemic. After extensive group discussion, the Task Force published a list of findings and the first among them was the need for increased accountability in the state’s UI system. Since the pandemic, employers have reported unusually high instances of interview no-shows, refused offers, and first day no-shows, yet they have no mechanism to report these instances to the Unemployment Insurance Agency (UIA). Oftentimes, perspective employees who ghost are simply “checking a box” to fulfill the required number of applications and interviews to continue qualifying for benefits, without the intention of actually accepting an offer and working at a job they applied for.

Solutions that Support Small Business

Small business owners understand the value and need of a strong unemployment insurance system for those who truly need it, but too often, employers are left footing the bill for claims that should never have been approved in the first place. The Unemployment Insurance trust fund is funded 100% through a payroll tax on employers, and as assessments grow in the coming years due to recent benefit increases, it is more important than ever that employers have a mechanism to report bad actors who abuse the system.

HB 4516 would address these issues by allowing employers to notify the Unemployment Insurance Agency if a perspective employee no-shows a scheduled job interview without notice or ghosts them directly after they begin employment. After an employer reports a perspective employee, the UIA would investigate if they wrongfully ghosted, and then would make a determination on eligibility for UI benefits. HB 4516 also includes safeguards that protect prospective employees in instances of miscommunication or last-minute emergencies that prevent them from attending an interview. These measures ensure that benefits are not mistakenly taken, and that only bad actors lose eligibility.

Testifying in Support of HB 4516

Kelli Saunders, SBAM’s Vice President of Policy & Engagement testified in support of the bill alongside David Worthams, Director of Employment Policy at the Michigan Manufacturers Association. Thier testimony expressed employers’ frustrations with the current system and voiced support for the recently proposed accountability measures.

While the committee has not yet voted on the bill, lawmakers have signaled interest in continued discussion. SBAM will remain engaged in the conversation and continue to advocate for a UI system that delivers benefits to those in need while prioritizing fairness for the employers who fund the system.

Review the task force’s findings.

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