Bill > SB0625

This bill amends Michigan's employment security law to establish clearer guidelines for repaying improperly received unemployment benefits. The bill allows the Unemployment Insurance Agency (UIA) to recover overpaid benefits through methods like wage deductions, cash payments, or tax refund reductions, with deductions limited to 50% of each payment. The bill introduces more precise time limits for initiating recovery actions, generally setting a 3-year statute of limitations for most cases. Importantly, the bill provides several conditions under which the UIA may waive repayment of improperly paid benefits, including situations where: the claimant provided incorrect wage information without intent to misrepresent, the claimant's household income is below 150% of the federal poverty guidelines, the overpayment resulted from an administrative error, or the claimant was honest and accepted benefits in good faith. For cases involving intentional fraud, the bill allows the UIA to cancel the claimant's benefits for the current benefit year and potentially prevent using those wages to establish future benefit years. The bill also requires the UIA to provide an annual report detailing waiver applications and outcomes, and mandates that determinations of fraud cannot be based solely on computer-identified discrepancies, requiring independent human review.

Labor and Employment

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-SB-0625