Bill > HB5391

This bill amends Michigan's unemployment insurance law to modify how the unemployment insurance agency can recover improperly paid benefits. The key provision is that, except in cases of suspected identity fraud, the agency cannot recover improperly paid benefits more than one year after the claimant receives the payment. The bill maintains existing provisions that allow the agency to recover overpaid benefits through methods like deducting from future benefits or tax refunds, with a limit of 50% deduction per payment. The law continues to provide waivers for repayment in certain circumstances, such as when the overpayment resulted from agency administrative errors, the claimant provided incorrect wage information without intent to misrepresent, or the claimant's household income is below 150% of the federal poverty guidelines. The bill also preserves stricter rules for cases involving intentional fraud, where the agency can cancel benefits for the entire benefit year and potentially impose additional penalties. Additionally, the bill requires the agency to review potential waivers before initiating recovery and to provide detailed notices to claimants about their rights and the reasons for potential overpayment recovery.

Budget and Finance

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-5391