The Wyandotte herald. (Wyandotte, Mich.) 1879-1943, 1939-07-07
PROVISIONS Of
UNEMPLOYMENT.
INSURANCE LAW

Vital changes in the states unem-
plOyment insurance system became eff
fectiye June y, following the signing
by Gov. Duren ID. Dickinson Of act No.
200 amending the law.
Major changes of Importance IL
workers and employers were outlined
and explained by Harry A. Mcdonald,
chairman Of the Michigan Unemploy-
ment Compensation Commission res
pOn>ible for administering the law.
1t is essential to the success and
continuation of the unemployment
compensation program Mcdonald
said, that all employers and workers
thoroughly understand these changes,
i'll order that The greatest possible ben
eft may lle obtained from the law
lnemploymemt compensation is not
charity nor welfare. but insurance, or
ganizei along the lines vi established
insurance principles. Amendments 10
The law made by the 1899 Legislature
are for the most part simply changes
i'll the conditions established 10 pro
tcct the >UundneS> of the law a. an
Insurance program"
Mcdonald outlined the major amend
menjs as follows:
l. Establishment Of completely
new merit rating system 10 be
Known hereafter as al employer ex-
pcTience index whereby employers
may. 10y StabiliZing their employment,
obtain a lowered contribution rate bf-
ginning in 1912 Beginning III that year,
lie contribution rate HAY vary from Il
low of nine-tenthS Of one per cent, to
4 high of four per cent.
> Removes from the cOverage Of
Michigan's law. employers and en-
ployeS subject tO the federal railroad
unemployment insurance act, which be
came effective July l.
3. Establishes flat minimum week
Is benefits f So and 81. depending on
~ RODS Of time.
4. Establishes new maximum limi-
tatiOns Oh total benefits which may be
received
.. Changes the waiting period re-
IuirementS from three To two weeks
with provision for two additional wait
Ing period weeks in one year. A max
imuln of four waiting weeks i'll any
one year is also established.
u. Changes the definition of quail
flying wages, the means used To deter
mine workers eligibility for benefits.
\ worker must now earn at least 500
during the first four of the last five
completed calendar quarters immed-
lately preceding the first day Of his
benefit year, with at least so of this
amount earned in each of two differ
ent calendar quarters i'll such period.
Z. Strengthens the disqualification
provisions. Workers are now required
Ia actually serve the weeks they are
disqualified, unless employed. In addi-
ton, under the amended act, the in
dividual who leaves work voluntarily
without good cause and refuses TO re-
turn to employment. Will remain dis
Qualified until he has earned wages OF
at least 500 after the refusal of EN-
plOyment.
=. Changes the definition of base
period" the period of time used to
determine the wages used 10 deter
mine the benefits an eligible worker
first four of the five completed calen-
dar quarters Immediately preceding
the fist day Of an individuals bene-
fl year.
3. Changes the definition of "bene-
fit year. the period i'll which benefits
nIay Ike drawn. The term now meals
The four consecutive calendar quarters
beginning with the calendar quarter
containing the week for which claim
is first filed for purposes of determin-
Ing eligibility with respect TO govern
Ing wages. Subsequent benefit years
similarly determined
10 Redefines the term total I'M
employment \ worker is now cOnsid-
cred totally unemployed during any
week in which he earns no remnera-
tion i'll excess Of So in subject, non
subject or self employment.
IL. Excludes from the cOverage OF
the law service performed by real es-
tate statesmen and agents of insurance
companies paid OH commission basis.
The Legislature also excluded service
performed in logging or woods opera
tiOns paid wholly on piece work or
quantity bases unless such services are
included rs employment under title
nine Of the social security act.
l.. Puts teeth into the law in
matters relative 10 fraudulent filing OF
claims, in addition TO retaining present
provisions making it possible TO Grim
inally prosecute fraud cases in the
courts.
Is. Requires restitution OF beneflts
received when ineligible. Benefits thus
received may also be deducted from
any future benefits payable TO the
worker.
These amendments are of vital i'm
portance to workers and to employers
ard il Is essential that both groups
obtain a thorough understanding OF
them.