Governor Whitmer issued an Executive Order reorganizing several state agencies with responsibilities pertaining to talent, economic development and labor. The stated goal of the reorganization is to streamline programs and better coordinate efforts to achieve the Governor’s statewide goal of increasing the number of Michigan residents with a post-secondary credential.
The Department of Talent and Economic Development (TED) has been abolished. Effective August 11, the new Department of Labor and Economic Opportunity (LEO) will be led by Jeff Donofrio, current executive director of workforce development for the city of Detroit.
The new LEO will consist of the following agencies:
- Michigan Economic Development Corporation (MEDC) and the Michigan Strategic Fund (with a reorganized Board)
- Unemployment Insurance Agency
- Workforce Development Agency
- Workers’ Compensation Agency and Board of Magistrates
- Michigan Occupational Safety and Health Administration (MIOSHA)
- Wage and Hour Division
- Employment Relations Commission
- Michigan State Housing Development Authority (MSHDA), State Landbank Fast Track Authority and State Historic Preservation Office
- Michigan Rehabilitation Services
- Michigan Office of New Americans, Asian Pacific American Affairs Commission, Commission on Middle Eastern American Affairs and Hispanic/Latino Commission of Michigan
- Bureau of Services for Blind Persons
- Various entities and responsibilities for adult education, STEM advisory and youth employment
Of particular note, the directive also separates the Michigan Compensation Appellate Commission, which currently handles unemployment and workers’ comp appeals, into two new bodies: the Workers’ Disability Compensation Appeals Commission and the Unemployment Insurance Appeals Commission. This is likely to have a significant impact on workers’ compensation appeals.
We will be working closely with legislative leadership in the Senate, which has advice and consent powers for all appointees in the new LEO department. MMA will continue to keep you apprised of developments.