Bill > HB5394

This bill amends the Michigan Employment Security Act to modify rules around unemployment insurance benefit overpayments and waivers. The bill provides expanded opportunities for individuals to avoid repaying improperly received benefits under certain circumstances, 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 caused by an administrative or clerical error by the unemployment insurance agency. Notably, the bill introduces a specific provision that benefits paid between February 7, 2020, and September 5, 2021, are presumed to be the result of an administrative error unless fraud is proven. The bill also requires the unemployment insurance agency to review potential waiver eligibility before initiating recovery of improperly paid benefits and to provide claimants with detailed information about their waiver options, potential consequences, and appeal rights. Additionally, the bill maintains strict penalties for intentional fraud, including canceling benefits for the year and prohibiting the use of wages from that period to establish future claims. The legislation aims to balance preventing fraudulent claims with providing relief to individuals who received benefits through unintentional errors or during challenging economic circumstances.

Budget and Finance

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-5394