02. Employer Liability, Tax Rate, Successorship

MESC v NL Industries (USA), Inc – 2.09

MESC v NL Industries (USA), Inc
Digest no. 2.09

Sections 21, 32a

Cite asMESC v NL Industries (USA), Inc, unpublished opinion of the Oakland County Circuit Court, issued January 5, 1994 (Docket No. 93-459745-AE).

Appeal pending: No
Claimant: N/A
Employer: NL Industries (USA), Inc.
Docket no.: L90-10851-2103
Date of decision: January 5, 1994

View/download the full decision

CIRCUIT COURT HOLDING: Where the MESC fails to issue rate determinations and, instead assigns temporary rates by means of quarterly contribution reports, for a period of years, those so-called temporary rates become final if the employer is not notified of a contribution rate within six months of the computation date (June 30).

FACTS: In 1985, MESC issued determination of successorship. No rate determination was issued, but employer’s quarterly contribution reports showed rate of 2.7%. Sometimes a “T” appeared before the rate. Employer paid the 2.7% rate until October 27, 1989, at which time the MESC issued rate determinations covering 1985-89 of 9.1%, 8.7%, 7.8%, 7.3% and 6.6%. MESC’s position was that the quarterly reports were not rate determinations and not subject to the finality provisions of Section 32a(2). Further, the statute and Administrative Rules do not provide for temporary rates and therefore, the rates shown on the quarterly contribution statements could not become final rates under Section 21(a).

DECISION: Decision of MES Board of Review affirmed. (Later MESC appeal to Court of Appeals withdrawn.)

RATIONALE: Under Section 21(a), employers are entitled to notification of contribution rate no later than six months after the computation date. This notification is mandatory, not discretionary. The computation date under Section 18(a) is June 30 of each year. Therefore, employers must be notified of rate by December 31 of each year. Otherwise the finality provisions of Section 32a(2) apply. A statement of a rate such as that on the quarterly contribution report is a “statement” of a rate determination pursuant to Section 21(a).

Digest Author: Board of Review (original digest here)
Digest Updated: 7/99

12. Misconduct

Ellison v. MESC – 12.138

Ellison v. MESC
Digest No. 12.138

Section 421.29

Cite as: In the matter of the claim of Ellison, unpublished opinion of the MESC, issued June 6, 1972 (Docket No. B71-1229-40927).

Appeal pending: No
Claimant: Thomas H. Ellison
Employer: Michigan Employment Security Commission
Docket no.: B71-1229-40927
Date of decision: June 6, 1972

View/download the full decision

HOLDING: An indefinite suspension of a Claimant is equivalent to a discharge. Claimant’s disqualification for benefits should begin with the week in which the act or discharge which caused the disqualification occurred.

FACTS: This is an appeal from a decision issued on May 1, 1972. Claimant originally appealed a February 23, 1972 holding that Claimant should be disqualified from benefits under Section 29(9) of the Act for the period from December 15, 1971 through December 31, 1971; disqualified from benefits under Section 29(1)(b) of the Act for the week ending on January 1, 1972; and subject to requalification under Section 29(3) of the Act.

DECISION: The Appeal Board affirms the February 23, 1972 holding, except the part of the decision that relates to the disqualification under Section 29(9), as well as the dates of separation and discharge. The Appeal Board modifies the decision to establish that Claimant was given an indefinite suspension for misconduct either directly or indirectly connected with the work, and then discharged on December 31, 1970. Claimant was discharged following his last day of work on December 15, 1970 and is disqualified for benefits for the week ending in December 18, 1970.

RATIONALE: When an individual is given an indefinite suspension, it is tantamount to a discharge, and the disqualification should begin with the week in which the act or discharge which caused the disqualification occurred. The disqualification will continue until the individual requalifies as provided under Section 29(3) of the Act.

Digest Author: Winne Chen, Michigan Law, Class of 2017
Digest Updated: 1/7/2016