SB 700 puts small businesses on the hook—twice. Lawmakers are considering a bill to “waive” collection of pandemic‑era unemployment overpayments totaling up to $2.7B—with ~80% of those dollars coming from federal programs (CARES Act, PUA, etc.) that Michigan cannot legally forgive. If SB 700 passes, the U.S. Department of Labor could demand repayment from Michigan, draining our employer‑financed UI Trust Fund and triggering higher UI taxes or reduced benefits.
The Bottom Line (at a glance)
- $2.7B in pandemic overpayments at risk of being “waived.”
- ~80% were federal dollars—not forgivable by the State.
- Michigan’s UI Trust Fund holds ~$3B; repayment could leave ~$300M for ongoing claims—barely one quarter of typical payouts.
- Result: Higher employer UI taxes or reduced benefits—direct hits to small businesses and their teams.
