Bill > SB0700

This bill amends Michigan's employment security law to modify the rules around recovering improperly paid unemployment benefits. The bill establishes a 3-year time limit for the unemployment insurance agency to initiate recovery of improperly paid benefits, with exceptions for cases involving suspected identity fraud or intentional false statements. The bill introduces several conditions under which the agency must waive recovery of improperly paid benefits, including situations where: the incorrect wage information was unintentional, the claimant's household income is below 150% of the federal poverty guidelines, the overpayment resulted from an administrative error, or three years have elapsed since the end of the benefit year. The bill also maintains provisions for more severe penalties in cases of intentional fraud, such as canceling the claimant's benefit rights for the year and preventing the use of those wages to establish future benefit years. Additionally, the bill requires the unemployment insurance agency to provide an annual report detailing waiver applications and outcomes, and mandates that the agency review potential waiver eligibility before initiating benefit recovery. The changes aim to provide more flexibility and fairness in handling unemployment benefit overpayments while maintaining mechanisms to prevent and address fraudulent claims.

Budget and Finance, Labor and Employment

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-SB-0700