CAMBRIDGE PROPERTY & CASUALTY SPECIAL REPORT

Mailing Address: P.O. Box 511077 Livonia, Michigan 48151-7077 Cambridge Plaza Building: 15415 Middlebelt Road, Livonia, Michigan 48154-3805

T: 734.525.0927 F: 734.525.0612 www.cambridge-pc.com

NOTICES REQUIRED BY THE MICHIGAN UNEMPLOYMENT INSURANCE AGENCY

This Special Report was written by Daniel P. Hale, J.D., CPCU, ARM, CRM, LIC, AIC, AIS, API. Mr. Hale is Vice President of Cambridge Property & Casualty and an attorney licensed to practice law in the State of Michigan. He can be contacted at 734-525-2429 or dhale@cambridge-pc.com. More Special Reports are available at www.cambridge-pc.com.

Most employers are aware that Michigan law requires employers to post the State of Michigan’s Unemployment Insurance Agency unemployment compensation poster, provi-ding notice to employees that unemployment benefits are payable to qualified workers of the employer through Michigan’s Unem-ployment Insurance Agency. (See Form 1.1 attached for a sample of the poster.)1 However, some employers may be unaware of a state administrative rule that requires employers to provide an unemployment compensation notice to employees upon separation.2 Rule 421.204 of the Michigan Administrative Code requires that a completed copy of form UA 1711 (see form 2.1 attached for a sample of the form), or an equivalent written notice, be given to each employee before, or when, he or she is separated from employment.3 The text of the administrative rule is as follows: 1 Poster can be obtained online at www.michigan.gov/uia or by calling the agency at (800) 638-3994. 2 The Michigan Administrative Code contains rules that have been adopted by the state agencies to implement, interpret, or make specific the law enforced or administered by the agency. 3 A “completable” form UA 1711 is available on the agency’s website, www.michigan.gov/uia.

R 421.204 Unemployment compensation notice to employee. (1) An employer, other than an employer filing claims

on behalf of workers in accordance with Rule 421.210, shall provide each worker at the time of the worker's separation from employment a copy of form UA 1711, unemployment compensation notice to employee. However, this requirement is satisfied if the employer previously delivered a copy of the form to the worker or if the employer has by any other method provided the worker an equivalent written statement notifying the worker of both of the following: (a) If the worker loses form UA 1711 or the

equivalent written notice from the employer, the worker may obtain a duplicate from a designated office in the establishment.

(b) The worker should have form UA 1711 or

the equivalent written notice from the employer available for reference when filing a claim.

(2) If the agency finds that an employer fails to deliver

form UA 1711 or the equivalent written notice before separation or fails to post adequate notices concerning replacement of a lost form UA 1711 or an equivalent written notice, then the employer, at the direction of the agency, shall be required to deliver form UA 1711 or the equivalent written

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notice to a worker when the worker is separated from employment. Form UA 1711 or the equivalent written notice shall be considered a report within the meaning of section 54(c)(1) of the act, and the agency may impose the penalty of $10.00 against an employer that fails to provide the form or the equivalent written notice to the worker by the date of the worker's separation from employment and will only be imposed if an employer fails to comply with this requirement after being notified by the agency. Imposition of the penalty provided under this rule is an appealable issue under the act.

(3) The form or equivalent written notice shall

contain all of the following information

(a) The employer's name and number of the employer's account with the agency.

(b) The address of the employer to which any

request for wage or separation information, or both, shall be directed.

(c) Such other information as is required by the

agency. It should be noted that penalties will be imposed if an employer fails to comply with this requirement after being notified by the agency. Employers should verify that the required form is being provided to employees upon exit interview or otherwise. For more information regarding notices required by the Michigan Unemployment Insurance Agency, contact either Ken Hale or Michael Hale, attorneys at law.

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