MICHIGAN EMPLOYMENT SECURITY ACT
Act 1 of 1936 (Ex. Sess.)
421.2 Declaration of public policy; findings.
Sec. 2.
(1) The legislature acting in the exercise of the police power of the state declares that the public policy of the state is as follows: Economic insecurity due to unemployment is a serious menace to the health, morals, and welfare of the people of this state. Involuntary unemployment is a subject of general interest and concern which requires action by the legislature to prevent its spread and to lighten its burden which so often falls with crushing force upon the unemployed worker and his or her family, to the detriment of the welfare of the people of this state. Social security requires protection against this hazard of our economic life. Employers should be encouraged to provide stable employment. The systematic accumulation of funds during periods of employment to provide benefits for periods of unemployment by the setting aside of unemployment reserves to be used for the benefit of persons unemployed through no fault of their own, thus maintaining purchasing power and limiting the serious social consequences of relief assistance, is for the public good, and the general welfare of the people of this state.
(2) The legislature finds that from time to time high levels of unemployment have resulted in the exhaustion of the funds in this state's account of the unemployment trust fund, has required advances or loans to the state from the federal account of the unemployment trust fund, and has caused the imposition of lawful penalty taxes and solvency taxes to repay those advances and the interest on those advances. The financing and payment of the outstanding principal amount heretofore or hereafter advanced or loaned to this state from the federal account of the unemployment trust fund and the interest on those loans, if any, the funding of unemployment compensation benefits, and the financing and funding of this state's account in the unemployment trust fund including, without limitation, the funding of sufficient fund balances in the unemployment trust fund, are an essential governmental function and public purpose of this state. The legislature further finds that the issuance of bonds by the Michigan finance authority or other issuer to finance the foregoing payments and to avoid or reduce the imposition of penalty taxes and solvency taxes will further and facilitate an essential governmental function and public purpose of this state that will encourage the development of industry and commerce, foster economic growth, provide employment opportunities for the citizens and residents of this state and further other economic development and activities in this state, and in general promote the public health and general welfare of the people of this state.
History: 1936, Ex. Sess., Act 1, Imd. Eff. Dec. 24, 1936 ;-- CL 1948, 421.2 ;-- Am. 2011, Act 268, Imd. Eff. Dec. 19, 2011
Notes of Decisions
Koontz v. Ameritech Servs., Inc, 645 N.W.2d 34 (Mich. 2002).
· cites it 2× “[MCL 421.2.] The majority disregards this part of the act despite the fact that the Legislature's declaration of public policy contained there is of paramount importance.”
Smith v. Emp. Sec. Comm'n, 301 N.W.2d 285 (Mich. 1981).
· cites it 3× “They rely on the general purpose of the statute expressed in MCL 421.2; MSA 17.502, to provide benefits to workers who are involuntarily unemployed.”
Storey v. Meijer, Inc., 429 N.W.2d 169 (Mich. 1988).
· cites it 2× “Noblit v The Marmon Group, 386 Mich 652 ; 194 NW2d 324 (1972); MCL 421.2; MSA 17.502. The system is designed to get "money into the pocket of the unemployed worker at the earliest point that is administratively feasible.”
Dow Chem. Co. v. Curtis, 430 N.W.2d 645 (Mich. 1988).
· cites it 4× “" MCL 421.2; MSA 17.502. Contributions to these accumulated funds are based upon actuarial studies conducted by the commission at the direction of the advisory council.”
Empire Iron Mining P'ship v. Orhanen, 565 N.W.2d 844 (Mich. 1997).
· cites it 2× “§ 421.2; M.S.A. § 17.502.] As the MESA is a remedial statute, it should be liberally construed to achieve its intended goal.”
Thomas v. Emp. Sec. Comm'n, 97 N.W.2d 784 (Mich. 1959).
· cites it 4× “Employer points to the declaration of policy, in section 2 of the act (CL 1948, § 421.2 [Stat Ann 1950 Rev § 17.502]), that, inter alia, the reserves established under the act are "to be used for the benefit of persons unemployed through no fault of their own".”
Parks v. Emp. Sec. Comm'n, 398 N.W.2d 275 (Mich. 1986).
· cites it 4× “[MCL 421.2; MSA 17.502. Emphasis added.] Section 29 of the act establishes instances in which those seeking unemployment benefits are disqualified.”
Corl v. Huron Castings, Inc., 544 N.W.2d 278 (Mich. 1996).
· cites it 2× “[12] The Employment Security Act provides that the term "wages" does not include amounts paid by an employer for insurance or annuities payable on account of an employee's retirement, sickness, or accidental disability; or for related medical or hospitalization expenses; or for…”
William Berrington v. Wal-Mart Stores, Inc., 696 F.3d 604 (6th Cir. 2012).
“The systematic accumulation of funds during periods of employment to provide benefits for periods of unemployment by the setting aside of unemployment reserves to be used for the benefit of persons unemployed through no fault of their own, thus maintaining purchasing power and…”
Lyons v. Emp. Sec. Comm'n, 108 N.W.2d 849 (Mich. 1961).
· cites it 4× “" CL 1948, § 421.2 (Stat Ann 1960 Rev § 17.502). (Emphasis supplied.”
Bingham v. Am. Screw Prods. Co., 248 N.W.2d 537 (Mich. 1976).
· cites it 2× “The result achieved by reversing the Court of Appeals in this case is contrary to one of the most basic policies underlying the Michigan Employment Security Act, which is to encourage employers to provide stable employment.”
— Mich. Comp. Laws § 421.2(1) — 11 cases
— Mich. Comp. Laws § 421.2(2) — 2 cases
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