Michigan employers can now cut employee hours by as much as 60% under an expanded Work Share program that took effect July 19, 2026 — up from a previous cap of 45%. The change is part of a broader package of unemployment law updates that also loosened financial hardship waiver rules and sped up the appeals process, all stemming from bipartisan legislation signed in December 2024.
What Work Share Actually Does
Work Share (sometimes called short-time compensation) lets an employer reduce staff hours instead of laying workers off outright. Employees whose hours get cut receive partial unemployment benefits to make up for a portion of the wages they lose — so instead of losing a job entirely, a worker keeps employment at reduced hours while unemployment insurance fills part of the gap.
The Expanded Range
Before this change, employers could reduce hours somewhere between 15% and 45% under Work Share. As of July 19, 2026, that range widened to between 10% and 60%. The wider band gives employers more flexibility on both ends — they can make a smaller cut (as little as 10%) for a lighter business slowdown, or a much deeper cut (up to 60%) during a more severe downturn, while still keeping trained staff on payroll rather than laying them off and having to rehire and retrain later.
| Work Share parameter | Before July 19, 2026 | After July 19, 2026 |
|---|---|---|
| Allowed hour reduction range | 15%–45% | 10%–60% |
| Worker benefit while enrolled | Partial unemployment compensation | Same, over wider range |
| Employer goal | Retain trained staff, avoid layoffs | Same, with more flexibility |
Two Other Changes Bundled Into the Same Update
The Work Share expansion didn’t arrive alone. The same round of July 2026 changes also affects how claimants handle financial hardship and appeals:
Financial hardship waivers: Claimants can now submit up to four financial hardship waiver applications per year, up from just one every six months. That’s a meaningful increase in flexibility — a claimant facing a hardship earlier in the year is no longer locked out of applying again for months afterward.
Appeals process: As of July 17, 2026, Michigan’s unemployment appeals process allows for a faster, more streamlined way to resolve multiple issues on a single claim at once, rather than requiring separate appeals for each disputed issue.
Why It’s All Happening at Once
All of these changes stem from the same piece of bipartisan legislation that passed the Michigan House and Senate and was signed into law in December 2024. Lawmakers built in an implementation runway between passage and the effective date, which is why claimants and employers are only seeing these changes take effect in mid-to-late July 2026 — roughly a year and a half after the underlying law passed.
Frequently Asked Questions
Does Work Share mean my job is safer than a straight layoff?
It’s designed as an alternative to layoffs — instead of losing your job outright, your hours get reduced and unemployment insurance covers part of the difference. Whether an employer chooses Work Share over layoffs is still their decision, but the program gives them a middle option.
Can an employer cut my hours by any amount they want under this program?
No. The employer has to stay within the approved range — now 10% to 60% — to qualify for Work Share, and the program itself has to be approved through the state’s process.
How many hardship waiver applications could I submit before this change?
Only one every six months. The new rule allows up to four per year, giving claimants more opportunities to apply if they face hardship more than once.
Does the faster appeals process change whether I win an appeal?
No. It changes how efficiently multiple disputed issues on one claim get resolved — it doesn’t change the substantive standard used to decide an appeal.