Bill > HB5006

This bill amends the Michigan Employment Security Act to modify the rules for recovering improperly paid unemployment benefits. The bill establishes clearer guidelines for how the Unemployment Insurance Agency (UIA) can recover overpaid benefits, including a 3-year time limit for initiating recovery actions (except in cases of suspected identity fraud). The bill introduces specific conditions under which the UIA can waive recovery of improperly paid benefits, such as when the overpayment resulted from incorrect wage information without intentional misrepresentation, when the claimant's household income is at or below 150% of the federal poverty guidelines, or when the overpayment was due to an administrative or clerical error. For cases involving intentional false statements or misrepresentation, the bill allows the UIA to cancel the claimant's benefits for the current benefit year and prohibit using those wages to establish a future benefit year. The bill also requires the UIA to provide claimants with a right to a hearing before recovering improperly paid benefits and mandates an annual report to legislative committees detailing waiver applications and outcomes. Additionally, the bill emphasizes that determinations of intentional false statements cannot be based solely on computer-identified discrepancies and must involve a thorough human review of the facts.

Government Affairs

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-5006