Dana v American Youth Foundation – 17.20

By | June 24, 2003

Dana v American Youth Foundation
Digest no. 17.20

Section 43(u)

Cite as: Dana v American Youth Foundation, 257 Mich App 208 (2003).

Appeal pending: No
Claimant: Candice Dana
Employer: American Youth Foundation
Docket no.: B97-00302-RO1-147335W
Date of decision: June 24, 2003

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COURT OF APPEALS DECISION: Service in an Americorps program is not exempt from coverage under Section 43(o)(v). (See statutory amendment described below.)

FACTS: Claimant served in the AmeriCorps program in a program administered by employer. Claimant received a monthly stipend, health insurance, childcare allowance, and an educational award. When she completed her term of service, claimant applied for unemployment benefits.

RATIONALE: The Michigan Court of Appeals held the claimant’s services to be covered employment under Section 43(o)(v). Under Section 43(o)(v) work-relief and work-training programs are exempt from coverage. The Court held that service in the AmeriCorps program was not a work-relief or work-training program and is not exempt from coverage under Section 43(o)(v).

However, AmeriCorps Service is exempt under Section 43 if the service ended on or after July 23, 2004, the effective date of Act 243 Public Acts 2004. The amendment added a new subsection to Section 43-Section 43(u) which provides:

Except as otherwise provided in section 42(6), the term “employment” does not include any of the following:

(u) Service performed in an Americorps program but only if both of the following conditions are met:

(i) The individual performed the service under a contract or agreement providing for a guaranteed stipend opportunity.

(ii) The individual received the full amount of the guaranteed stipend before the ending date of the contract or agreement.

Digest Author: Board of Review (original digest here)
Digest Updated:  
11/04