(The Center Square) – In the last few days of the 2024 legislative session, Democrats have pushed through a number of bills which will affect small businesses throughout the state.
Lawmakers have been in session sometimes as late as 3 a.m. as Democrats work to pass as many bills as possible before losing their trifecta in 2025, when Republicans will take control of the state House.
Small business advocacy groups have expressed concern for the long term impact of some of the legislation, which includes increases to unemployment insurance benefits and paid family leave.
One of those bills is Senate Bill 40, which narrowly passed both chambers and was presented to Gov. Gretchen Whitmer on Friday for her signature.
Supporters of the bill argue it will help workers in the state.
“This week, we took a major step to support Michigan workers,” said Rep. Joey Andrews, D-St. Joseph. “The bipartisan passage of SB 40 restored 26 weeks of unemployment benefits and raised the weekly max benefit to $614 for the first time in 20+ years. Proud to stand with my colleagues to put workers and families first.”
The National Federation of Independent Business, a small business advocacy organization based in Michigan, expressed disappointment in the passage of the legislation.
“Doubling the weekly benefit over three years goes too far too fast and will increase the unemployment insurance taxes,” said Amanda Fisher, NFIB Michigan state director. “Small businesses want to make sure that those Michigan employees who have lost their jobs through no fault of their own are able to receive unemployment insurance, but when many small businesses are struggling to find workers, any policy that could lead to tax increases falls flat.”
Four other bills were also passed as a part of the bill package, all making changes to the state’s Unemployment Insurance Agency.
“This common-sense legislation would bring updates to our UIA system for the first time in over two decades, streamlining and modernizing processes so that everyone — claimants, workers, and employers — will benefit,” said Sen. John Cherry, D-Flint and chair of the Senate Labor Committee. “It’s time to get this done.”
Fisher warns that the state’s unemployment trust fund, which is 100% funded by employers, was “decimated” in the aftermath of the COVID pandemic.
“Increasing benefits adds extra pressure to a system that has not yet recovered and would make weathering another economic downturn difficult,” she said.
Senate Bill 332 is another bill that is part of the Democrats’ push and would provide additional paid leave benefits to employees in the state. First introduced in 2023 and stalled since then, the program would be administered by the state and would be funded by additional taxes.
Both NFIB and the Michigan Chamber of Commerce have come out in opposition to the legislation.
“The proposal would impact every employer and would raise taxes on employers by an estimated $1 to 1.5 billion per year,” the Chamber reported. “New mandates hurt employers and employees with a worker shortage already reaching a crisis. Employers use benefit packages to attract and retain quality employees – even without the state telling them to do so. If enacted, Michigan would have one of the most expansive and expensive mandates in the country.”
A NFIB poll found that 96% of NFIB Michigan members said they do not support proposals requiring employers in Michigan to give employees a guaranteed number of days of annual paid and sick leave.
Advocates for the legislation say that more paid leave is needed for employees in the state.
“All Michiganders deserve access to a strong paid family leave program to take care of their own health, provide care for a loved one, or welcome a new child, without the risk of losing a job or sacrificing savings,” said Family Values at Work, a paid leave advocacy group.