Michigan Compiled Laws

Mich. Comp. Laws § 421.40 (2026)

“Employing unit” defined.

✓ current as of July 2026
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MICHIGAN EMPLOYMENT SECURITY ACT


Act 1 of 1936 (Ex. Sess.)


421.40 “Employing unit” defined.

Sec. 40.

    "Employing unit" means any individual or type of organization, including, but not limited to, a governmental entity as defined in section 50a, a partnership, association, trust, estate, joint-stock company, insurance company or corporation, whether domestic or foreign, or the receiver, trustee in bankruptcy, trustee or successor thereof, or the legal representative of a deceased person, which has or subsequent to this amendatory act, had in its employ 1 or more individuals performing services for it within this state. All individuals performing services within this state for any employing unit which maintains 2 or more separate establishments within this state shall be considered to be employed by a single employing unit for all the purposes of this act. Each individual employed to perform or to assist in performing the work of any agent or employee of an employing unit shall be considered to be employed by that employing unit for all the purposes of this act, whether the individual was hired or paid directly by that employing unit or by the agent or employee, provided the employing unit had actual or constructive knowledge of the work.

History: 1936, Ex. Sess., Act 1, Imd. Eff. Dec. 24, 1936 ;-- CL 1948, 421.40 ;-- Am. 1954, Act 197, Imd. Eff. May 7, 1954 ;-- Am. 1955, Act 281, Eff. July 15, 1955 ;-- Am. 1971, Act 231, Imd. Eff. Jan. 3, 1972 ;-- Am. 1977, Act 277, Eff. Jan. 1, 1978

Notes of Decisions
Cited in 11 cases, 1952–2020 · leading case: Empire Iron Mining P'ship v. Orhanen, 565 N.W.2d 844 (Mich. 1997).
Empire Iron Mining P'ship v. Orhanen, 565 N.W.2d 844 (Mich. 1997). · cites it 2× “§ 421.40; M.S.A. § 17.542 defines employing unit.”
Park v. Emp. Sec. Comm'n, 94 N.W.2d 407 (Mich. 1959). · cites it 2× “" CL 1948, § 421.40 (Stat Ann 1950 Rev § 17.542). And, in the second sentence of the same definition paragraph, it makes such use of the word "establishment" as, in our view, to preclude any attempt at definition in terms of all integrated plants of a company, wherever located:…”
Logan v. Manpower of Lansing, Inc., 847 N.W.2d 679 (Mich. Ct. App. 2014). “[MCL 421.40 (emphasis added).] Claimant’s reliance on this statute is misplaced.”
Lyons v. Emp. Sec. Comm'n, 108 N.W.2d 849 (Mich. 1961). · cites it 2× “" CLS 1956, § 421.40 (Stat Ann 1960 Rev § 17.542). [4] Kempfer, Disqualifications for Voluntary Leaving and Misconduct, 55 Yale LJ 147.”
Merren v. Emp. Sec. Comm'n, 142 N.W.2d 493 (Mich. Ct. App. 1966). · cites it 3× “” *387 CLS 1961, § 421.40 (Stat Ann 1955 Rev § 17.542) defines “employing unit” in its relevant part as follows : “ ‘Employing unit’ means any * * * corporation whether domestic or foreign, * * * which has or subsequent to this amendatory act, had in its employ 1 or more…”
Emp. Sec. Comm'n v. Crane, 54 N.W.2d 616 (Mich. 1952). · cites it 3× “The weakness in appellant’s position might appear from the question involved as stated by appellant: “Where the same individuals employ workers in each of 2 businesses which they operate as separate enterprises under separate partnership agreements, is each business organization…”
In Re Pine Knob Inv., 20 B.R. 714 (Bankr. E.D. Mich. 1982). “Where the transfer involves more than 75% of the assets of the business, the rating account transfers intact if the transferee had no rate of contribution applicable to it before the transfer.”
Fifth Dist. Repub. Comm. v. Empoyment Sec. Comm'n, 172 N.W.2d 825 (Mich. Ct. App. 1969). · cites it 2× “First, plaintiff contends that it is not an “employing unit” within the meaning of § 40 of the act (MCLA § 421.40 [Stat Ann 1968 Rev § 17.542]).”
Merren v. Emp. Sec. Comm'n, 156 N.W.2d 524 (Mich. 1968). · cites it 2× “) CLS 1961, § 421.40 (Stat Ann 1960 Rev § 17.542). Section 41 defines “employer”: “‘Employer’means: (1) * * * “(h) Any employing unit which in each of 20 different weeks within the calendar year 1956 or within any succeeding calendar year * * * has or had in employment 4 or more…”
Robinson v. Young Men's Christian Ass'n, 333 N.W.2d 306 (Mich. Ct. App. 1983). “MCL 421.40; MSA 17.542. Clearly the term employer as used in the act does not include out-of-state employers.”
Dept of Labor & Econ. Opportunity v. Jce Acquisitions LLC (Mich. Ct. App. 2020). · cites it 3× “MCL 421.40 provides: “Employing unit” means any individual or type of organization, including, but not limited to, a governmental entity as defined in section 50a, a partnership, association, trust, estate, joint-stock company, insurance company or corporation .”
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