House Economic Competitiveness Committee Testimony on HB 4516, Kelli Saunders

Summary

Testimony on HB 4516 to the House Economic Competitiveness Committee by Kelli Saunders, Vice President of Policy and Engagement at the Small Business Association of Michigan. Saunders states that the association has 33,000 members and formed an Unemployment Insurance Task Force in 2023. The testimony says the task force named "ghosting" as one of its biggest challenges and recommended that the UIA be able to share when applicants no show or refuse job offers. It cites a 2024 summer survey of the membership, with a 3-to-1 margin, and says small businesses fully support the legislation.

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House Economic Competitiveness Committee Testimony on HB 4516

Kelli Saunders, Small Business Association of Michigan

Mr. Chair and members of the committee – thank you for having us here today to talk about an
issue that has been at the forefront of small business owners’ minds for years. I am Kelli
Saunders the Vice President of Policy and Engagement at the Small Business Association of
Michigan. We are 33,000 members strong – the largest state based small business association in
the country – and proud of the deep entrepreneurial spirit that is seeded here in our great state of
Michigan.

Back in 2023, SBAM formed an Unemployment Insurance Task Force to address concerns and
issues within the UIA after a long and tumultuous experience with COVID that ended up ravaging
the UIA Trust Fund to nearly broke. The UIA is a 100% employer-funded system. We know the
pivotal role the UIA plays in our state to support those who do not have work under no fault of
their own, but safeguards within the system to make sure that claimants are seeking a new path
forward with available and suitable work is of the essence to a healthy and vibrant economy.
Small business owners today say that one of their greatest challenges is finding talent to fill their
respective open roles, so connecting claimants to these positions is imperative for both
employers and future employees.

In 2023, the SBAM UI Task Force stated “ghosting” as one of their biggest challenges within the
system without the ability to report back to the UIA on this chronic issue. The #1
recommendation back then and still to this day is that the UIA create the ability to share when
applicants no show or refuse o ers to ensure accountability related to work search and work
availability requirements. Furthermore, information sharing across the spectrum of the process
is necessary to identify trends and provide supports to those who may be experiencing barriers or
issues to employment. In our 2024 summer survey to our membership (1 year after the Task
Force Report) when considerations were being made to increase UIA benefit weeks and benefit
amounts, the resounding message to the legislature was “Not until the trust fund is restored to
pre-pandemic levels and there is accountability within the system to report no shows and refusal
of job o ers” by a 3-to-1 margin. Unfortunately, after many discussions with the department and
the seated legislature at that time – this consideration was not taken into account. The trust fund
was not restored to pre-pandemic levels, and the expansion of weeks and benefits was advanced
and signed into law.

Here we are in 2025 and finally this bill addresses the very issue small business owners have
been asking for. Our small businesses fully support this legislation, and we thank you for taking
steps to advance it through the legislative process for implementation to strengthen our UIA
system in accountability.

With that – I will yield my time back to my colleague for a few additional comments.


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