Bill > HB5008

This bill amends Michigan's employment security law to modify how the Unemployment Insurance Agency (UIA) handles improperly collected unemployment benefits. The key changes include reducing the maximum percentage of wages that can be garnished from 50% to 20% for most overpayment cases, establishing clearer time limits for issuing restitution determinations (generally within 3 years), and creating more specific guidelines for waiving repayment of improperly paid benefits. The bill provides three primary conditions under which the UIA must waive recovery: when incorrect wage information was provided without intent to misrepresent, when the claimant's household income is at or below 150% of the federal poverty guidelines, or when overpayments resulted from administrative errors. Additionally, the bill maintains strict penalties for intentional fraud, including canceling the claimant's benefits for the year and potentially prohibiting the use of wages from that year to establish future benefits. The legislation also requires the UIA to provide an annual report detailing waiver applications and determinations, and mandates that the agency review potential waiver eligibility before initiating recovery of improperly paid benefits. The bill will take effect 90 days after being enacted into law.

Government Affairs

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-5008