Michigan Governor Whitmer has declared a state of emergency due to recent COVID-19 cases in the state (Executive Order No. 2020-4) and, as has happened in several other states, issued an executive order shutting down certain businesses to slow the progression of the virus.

Executive Order 2020-9 effective Monday, March 16, 2020 through March 30, 2020, shuts down the following places of public accommodation: restaurants, cafes, coffee houses, bars, taverns, brewpubs, distilleries, clubs, movie theaters, indoor and outdoor performance venues, gymnasiums, fitness centers, recreation centers, indoor sports facilities, indoor exercise facilities, exercise studios, spas, and casinos. Businesses are allowed to provide food and beverages using delivery service, window service, walk-up service, drive-through service, or drive-up service.

Executive Order No. 2020-10, provides that until April 14, 2020 at 11:59 pm, an employer will not be charged for UI benefits if their employees become unemployed because of an executive order requiring them to close or limit operations.

The order also expands the state's Work Share program. Michigan's Unemployment Insurance Agency (UIA) may approve a shared-work plan, regardless of whether the employer's reserve in the employer's experience account as of the most recent computation date preceding the date of the employer's application is a positive number. More information about Work Share can be found here.

Individuals affected by COVID-19 may collect UI benefits

Executive Order No. 2020-10 also declares that state unemployment insurance (UI) provisions of law are suspended to allow individuals unable to work due to COVID-19 self-isolation or self-quarantine and being immunocompromised, displaying the symptoms of COVID-19, having contact in the last 14 days with someone with a confirmed diagnosis of COVID-19, needing to care for someone with a confirmed diagnosis of COVID-19, or having a family care responsibility as a result of a government directive.

Under the governor's order, UI benefits will be extended to:

• Workers who have an unanticipated family care responsibility, including those who have childcare responsibilities due to school closures, or those who are forced to care for loved ones who become ill
• Workers who are sick, quarantined, or immunocompromised and who do not have access to paid family and medical leave or are laid off
• First responders in the public health community who become ill or are quarantined due to exposure to COVID-19 (Governor's news release)

Effective immediately, and continuing through April 14, 2020, an individual must be considered to have left work involuntarily for medical reasons if they leave work because of the reasons shown above. The order also provides that an individual must be deemed laid off if they became unemployed for these reasons. An exception arises if the individual is already on sick leave or is receiving a disability benefit.

An individual filing for UI benefits for COVID-19 reasons must file a claim for unemployment benefits within 28 days of the last day worked (temporarily changed from 14 days) to be considered to have filed on time. Eligible individuals filing an initial claim by April 14, 2020 will be eligible for up to 26 weeks of UI benefits in the benefit year (temporarily increased from 20 weeks). The normal in-person registration and work-search requirements are suspended (the executive order states that the employer of an individual deemed laid off must seek a registration and work-search waiver from the UIA; go here for more information).

Eligible employees should apply for UI benefits online at Michigan.gov/UIA or by calling +1 866 500 0017.

The State is also seeking solutions for self-employed workers and independent contractors who traditionally do not have access to unemployment insurance.

State labor department releases guidance for employers contemplating layoffs

On March 18, 2020, the Michigan Department of Labor and Economic Opportunity issued guidance to employers that provides alternatives to layoff during the COVID-19 emergency.

• Use the UIA's work share program to reduce employee hours rather than layoffs. Go to the UIA's website for more information.
• Temporary leave vs. termination. While waiting for President Trump to sign legislation providing for UI assistance to states, the Department urges employers to place employees on temporary leave and advise the workers that they expect to have work available within 120 days, as opposed to terminating employees. There is no additional cost to employers; employees remain eligible for UI benefits through the state and may remain eligible for potential federal assistance.

Steps provided by the Department 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 fact sheet on claiming benefit when affected by COVID-19 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 one person, or a limited number of individuals, to 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.

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