LANSING — A statewide executive order expanded a program that allows Michigan businesses to avoid laying off workers during the coronavirus pandemic.

Almost 1.2 million Michigan residents have filed for unemployment since March 15, the week the first COVID-19 cases were identified in the state, according to the U.S. Department of Labor.

More workers are eligible for unemployment benefits during the pandemic, including self-employed and "gig" workers, and the federal government is temporarily adding $600 to weekly payments.

More:Self-employed, contract workers can apply for unemployment on Monday, and $600 federal benefits are on their way

The latest expansion of benefits, signed by Gov. Gretchen Whitmer on Wednesday, temporarily expanded the state's work share program, which helps employers avoid laying off employees when budgets are tight.

Work share program expanded

The program works like this: When companies are faced with a reduction in work and need to save money on payroll, they can partially lay off a lot of employees instead of totally laying off a smaller number. Companies save the same amount, and — through the work share program — those partially laid-off workers get partial unemployment benefits to make up a portion of their lost wages.

The Wednesday order made more workplaces eligible for the program.

For example, employees who have worked at a certain job for less than three months can participate in a work share plan and workplaces that use the program can now reduce payroll costs by 10% to 60%, an increase from the normal 15% to 45% range.

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Other expansions since pandemic started

The state has made a number of changes to unemployment eligibility since COVID-19 was identified in Michigan, including:

Workers who voluntarily leave jobs after accepting new ones but are unable to start their new positions because of the pandemic are now eligible for benefits.

Claimants no longer need to request registrations and work search waivers from employers.

​​​​​​​People who have active unemployment claims can receive up to 26 weeks of benefits. Before the pandemic, claimants were limited to 20 weeks.

People who are out of work because they are sick with COVID-19, display COVID-19 symptoms, were exposed to the disease, are caring for someone with the disease or are at elevated risk of complications from the disease may be considered laid off and therefore eligible for unemployment.

Claims can be filed up to 28 days after a person's last work day. Previously, they had to be filed within 14 days.

More than $1 billion in benefits paid out

About 820,000 Michigan residents affected by the coronavirus shutdowns have received about $1.37 billion in state- and federally-funded unemployment benefits, according to a Thursday release from the Unemployment Insurance Agency. More will be paid when they certify their claims two weeks after filing.

Last week, 134,119 more people filed for unemployment benefits in Michigan, including 42,099 in Ingham, Clinton and Eaton counties.

The drastic increase in claims has overwhelmed the unemployment system, causing delays for some people, particularly those who need to help from customer service.

More:Dropped calls, long waits preventing some from filing unemployment during coronavirus in Michigan

The UIA has expanded call center hours, added staff and instituted a schedule to help manage the increases. Whitmer's Wednesday order also allows retired UIA workers to keep their retirement benefits if they return to the agency to process unemployment claims.

Thousands of state workers laid off

About 3,000 state employees soon will join the ranks of unemployed Michiganders. State officials announced the layoffs this week. The layoffs will last at least 10 consecutive days.

State workers will be automatically enrolled in unemployment, which some have criticized as special treatment. State workers will not jump ahead of unemployed private sector workers, Whitmer said during a press conference Wednesday.

More:Thousands of state workers to be laid off as coronavirus threatens Michigan economy

Contact Carol Thompson at (517) 377-1018 or ckthompson@lsj.com. Follow her on Twitter @thompsoncarolk.