Members of the Michigan Chamber have voiced this concern over the last several weeks: “We are calling people back to work but they’re reluctant or refusing to return because they’re making more money on unemployment.”
Under the federal CARES Act, Congress authorized a supplemental federal coronavirus Unemployment Insurance (UI) payment. This $600 per week Federal Pandemic Unemployment Compensation (FPUC) program, which was added on top of the state’s maximum weekly benefit amount of $362 per week, is scheduled to expire at the end of this month. In Michigan, the last week the FPUC may be paid is the week ending July 25, 2020.
The Democratic-led US House passed legislation last month to extend the $600-per-week boost through January 2020, but Republicans in the US Senate have vowed not to continue the provision.
Senate Republicans have acknowledged that some federal UI benefits may need to continue to be available to individuals who are not able to recover their jobs but understand that the $600 payment is serving as a barrier to returning some unemployed workers back to the workforce.
The Michigan Chamber, along with the US Chamber, is committed to finding a path forward that protects unemployed workers but does not incentivize people to stay on UI (e.g., because they are making more money being unemployed than working). Some have suggested capping the total benefit to earnings lost due to COVID-19 but, logistically, that would be difficult for states to administer. Others have suggested allowing workers to be paid up to two weeks of the supplemental federal unemployment benefits after accepting a job.
The Michigan Chamber continues to voice its support for modifying the current FPUC program and finding a path forward. Please contact Wendy Block with any questions at wblock@michamber.com.