Protecting Your Company from Avoidable Unemployment Costs

This article appeared in the October 2025 issue of MiMfg Magazine. Read the full issue and find past issues online.

Now that unemployment insurance benefits have dramatically risen, this is a question many employers are faced with.

Earlier in the year, the maximum amount a claimant could collect was $362 a week for 20 weeks — a total payout of $7,240. Recent legislation extended eligibility to 26 weeks and raised the weekly maximum to $446. The new maximum amount you can collect is $11,596, with increases coming over the next few years.

Employers, more than ever, are questioning if there is something that could be done about this new $11, 596 expenditure. A common sentiment is that there is not much employers can do to influence this government- run program to cut costs. That is not true — employers actually have several tools at their disposal.

It all starts with hiring the right people at the right time. Making sure you cover all your bases when hiring an employee to make sure they are a good fit for the position. After hiring an individual, are you following through with proper discipline techniques when issues arise? Are discipline issues being documented properly to enable you to present a well-documented list of infractions? Are employees with behavior issues clearly notified that their job may be in jeopardy? At the time of separation, is this separation getting documented in the correct manner so that when a claim comes up you are prepared to make a presentation on why the person was terminated?

When a claim for unemployment is filed, thorough and timely documentation must be presented to the Michigan Unemployment Insurance Agency (UIA). Providing the UIA complete information in a timely fashion can prevent a claim from starting and stop benefits going out that should not be paid.

So, let’s return to the question: is there a better use of $11,596 than paying someone who is not working for you for 26 weeks?

Employers must ensure that staff is prepared to put your company in a prime position to defend against an unemployment claim. It starts at the hiring process and continues throughout the employment term and, if necessary, through litigation. Work with your HR team or human resources provider to keep that money in your company’s ledger.

About the Author

Brian Packer is President of Packer Associates. He may be reached at 248-348-5610.

Packer Associates is an MMA Basic Associate Member. They have been an MMA member since May 2025.