What the law says: This issue is discussed in Section 27(o) of the Michigan Employment Security Act.

Generally, Section 27(o) provides for a denial of unemployment benefits, under certain circumstances, to seasonal workers who have reasonable assurance from their seasonal employer that at the end of a seasonal work period, they will be rehired when the new season begins.

Responsibilities of the Employer

• Apply to UIA, not less than 20 days before the estimated beginning of a season, to be designated as a seasonal employer
  
  
• Receive designation from UIA as a seasonal employer
  
  
• Post notice to workers, at the time of application, that application for seasonal designation has been made
  
  
• Post notice to workers, once seasonal designation has been granted, of: — the designation, and
  
  — the beginning and ending dates of the normal seasonal work period, and
  
  — the fact that retroactive benefits may be payable to a worker for the period between seasons if the work assured for the next season does not materialize and if the worker timely applies for the benefits
  
  
• Notify a worker in writing, at the time of hire, of the employee's status as a seasonal worker, and notify the worker in writing of any subsequent changes in that status
  
  
• Give reasonable assurance to the worker at the end of the season that work will be available in the next season.
  
  

To be seasonal employment, the work must be in an industry that does either of the following:

— customarily operates during regular seasons of not more than 26 weeks within a period of 52 consecutive weeks, or — customarily employs at least 50% of its employees during regular seasons of not more than 26 weeks within a period of 52 consecutive weeks.

In addition, the employer’s business must, itself, operate seasonally, as described above.

Application of Denial Period
A seasonal worker is one who is paid wages by a seasonal employer for work performed only during the normal seasonal work period. The UIA will determine each employer’s normal seasonal work period. The benefits are denied during the period between normal seasonal work periods if the worker has reasonable assurance of re-employment.

If a worker either begins working before the start of an employer’s normal seasonal work period, or finishes working after the end of that employer’s normal seasonal work period, the worker no longer satisfies the definition of seasonal worker and would not be subject to the seasonal denial period for that year.

Example: The UIA  has determined that the employer’s normal seasonal work period lasts from May 12 until August 28. The worker works from May 5 until August 20 in a particular year and is given reasonable assurance of returning to the job the next season.

However, a seasonal worker is one who is paid wages by a seasonal employer for work performed only during the normal seasonal work period. Since the worker in this example started working before the start of the employer’s normal seasonal work period, the worker no longer satisfies the definition of seasonal worker and would not be subject to the seasonal denial period for that year.

Proof at the Hearing: If the UIA determines that the employer is not a seasonal employer, the employer can appeal a redetermination of that finding to an Administrative Law Judge. If the UIA decides that the employer is a seasonal employer, the unemployed worker can appeal that designation at any time to an Administrative Law Judge.

If the worker was denied benefits but should not have been because the worker began work before the start of the employer’s normal seasonal work period or finished work after the end of the employer’s normal seasonal work period, the worker can appeal the denial. The worker can also appeal the denial of benefits if the worker did not receive reasonable assurance, or if the worker believes the reasonable assurance that was given was not bona fide. The employer can refute the worker’s allegations, at the hearing.

For Further Help: The Unemployment Insurance Agency (UIA) Advocacy Program can provide further assistance to employer and unemployed workers in preparing for Administrative Law Judge and Board of Review hearings on this issue. Call 1-800-638-3994.

The information on this sheet is intended to provide a general understanding of the subject matter. It does not have the force of law or regulation.