LANSING, Mich. — The state of Michigan has announced it will be participating in the federal Unemployment Insurance Agency Work Share program in order to help "offset budget implications as a result of the state's response to COVID-19."
The state said as part of the program, affected state employees will take two temporary layoff days per pay period beginning Sunday, May 17 until July 25. The state said this will result in up to $80 million in decreased wage costs.
“As we continue to combat COVID-19, it’s clear that we’re facing unprecedented challenges that will lead to serious budget implications for the state of Michigan,” said Governor Whitmer. “Utilizing this federal program keeps state employees working so they can continue to provide critical services to Michiganders and protects their paychecks so they can continue to support their families.”
The state said the federal program allows the state to keep employees working with reduced hours, while employees collect partial unemployment benefits in order to make up a portion of lost wages.
State managers who are at the 17 level and above will not participate in the Work Share program, but will instead take one layoff day every other pay period which is expected to result in an approximate 5% reduction in gross pay, according to the state of Michigan.
The state said over 31,000 state employees will be impacted by the temporary layoffs.
The state said they will be able to keep their health insurance and other benefits and will automatically be enrolled in the unemployment process in order to make sure they "have the support they need during this challenging time."
Last month, Gov. Whitmer announced she will be taking a 10% pay cut, directing her executive team and cabinet to take a 5% pay cut for the remainder of the fiscal year.
The state of Michigan said the Executive Office of the Governor will be participating in the Work Share program.
The state said the layoffs do not impact anyone who is working on the frontlines during the COVID-19 Crisis. The state said law enforcement, the prison system, veterans' homes and other key health and human services will all remain fully staffed with employees on site.
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