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Legislation Introduced Reforming Unemployment Insurance Agency

Oct 20, 2017

This week, a bipartisan plan was unveiled reforming Michigan’s Unemployment Insurance Agency.  The legislation is based on findings of a workgroup consisting of industry experts and legislators. The goal of the plan is to provide clarity, restore integrity and improve accountability within the agency and address the faults of the unemployment system.

To end the lack of communication between employers and the Unemployment Insurance Agency, the proposal improves the process for determining the validity of an unemployment claim.

The plan will address identity theft claims by creating a “watchdog” position to investigate fraud and make recommendations to improve the system. The legislation also will require claimants to submit more proof to be eligible for unemployment benefits and maintains the nation’s toughest penalties on fraud.

Additionally, the legislation:

  • Gives those accused of fraud access to an advocacy program;
  • Allows the agency to reopen a fraud case within three years with good cause;
  • Addresses interest owed by claimants in overpayment due to agency error; and
  • Clarifies the eligibility for hardship waivers and the agency’s process for ruling on applications for a waiver.

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