Senate Bill 697 Summary

• Establishes a shared-work program under the Michigan Employment Security Act allowing employers to reduce employee hours by 20-40% as an alternative to temporary layoffs affecting at least 10% of an affected unit's workforce.

• Eligible employers must have filed all required reports, paid all contributions and penalties, maintained a positive reserve account balance (if contributing), and paid wages for 12 consecutive quarters preceding application.

• Participating employees receive unemployment compensation equal to their weekly benefit rate multiplied by the reduction percentage, and are exempt from work-search and job-refusal requirements during the plan's effective period.

• Shared-work plans are limited to 52 consecutive weeks per plan and 104 weeks total within any 156-week period, with all employees in the affected unit participating except those employed less than 3 months or working 40+ hours weekly.

• Sections 28b-28m automatically repeal 5 years after the effective date (July 1, 2011), and provisions do not apply if the U.S. Department of Labor withholds approval under federal unemployment tax law.