National Federation of Independent Business (NFIB) The nation's leading small business advocacy group expressed concern and disappointment over the bill's passage in the Michigan Legislature. House Bill 5827 would extend the period for which an individual can collect unemployment insurance from 20 to 26 weeks.
When the NFIB asked its members whether the period during which employees can collect unemployment insurance should be extended, 86 percent said no. The NFIB determines its policy positions based on its members' votes.
“This law is an insult to small business owners who are struggling to retain workers and weather tough economic times,” he said. Amanda Fisher, NFIB Michigan State Director;
“Right now, there are about 400,000 unfilled jobs in Michigan. According to the NFIB Research Center, the number one concern for small businesses is finding workers who are qualified and willing to work. In fact, a May survey found that: 42 percent of small business owners (seasonally adjusted) reported having job openings they were unable to fill.”
Fisher further explained that unemployment benefits are paid for 100% by employers through payroll taxes and are meant to be used only when employees lose their jobs through no fault of their own.
The money paid by employers is deposited in a trust fund administered by the Unemployment Insurance Agency (UIA). If the Unemployment Insurance Trust Fund does not have enough funds, or if employees are able to claim benefits when they should not, employers will end up paying more tax.
“UIA's grossly irresponsible management of employer funds during the pandemic has never been properly remedied, leaving employers in a precarious position with regard to UI taxes during an economic downturn,” Fisher added.
“Instead of passing legislation that could raise taxes on small businesses, the Congressional majority should focus on oversight of the UIA. Tightening job search and acceptance requirements, putting in place sufficient fraud prevention measures, and matching the unemployed with jobs that fit their backgrounds would go a long way to avoid the need to extend benefits.”
For 80 years, NFIB has championed the interests of America's small businesses and independent business owners in Washington, DC and in all 50 state capitals.
NFIB is a nonprofit, nonpartisan, member-driven organization. Since its founding in 1943, NFIB has been dedicated to serving small and independent businesses.