Bills to improve handling of unemployment insurance fraud headed to Gov. Snyder
The state
"This legislation is a great bipartisan effort to help improve the unemployment insurance operations on a number of important issues both for the general public and employers," said
Business and labor groups are supportive of the bills they say will help prevent another rash of false fraud accusations, while at the same time addressing a growing problem of genuine unemployment insurance fraud resulting from identify theft.
But advocates for claimants say the legislation does little or nothing to help those whose lives were turned upside down when the state's
"These bills are by no means comprehensive, nor are they perfect," said
"There is still more work that must be done to make things right for people who were falsely accused of unemployment fraud," but "this bipartisan legislation will go a long way towards preventing another disaster like this from happening again."
Senate Bills 5165-5172, would, among other changes:
(ASTERISK) Require the
(ASTERISK) Allow alleged fraud cases to be reopened, after the appeal period has expired, if claimants can show the notice was sent to an incorrect address.
(ASTERISK) Reduce Michigan's highest-in-the-nation 400% fraud penalties to 100% for a first offense and 150% for subsequent offenses. The 400% penalty would be maintained for impostors who fraudulently obtain benefits through identify theft.
(ASTERISK) Create an advocacy program to help claimants navigate administrative hearings. Claimants accused of fraud would only have to pay the costs of the advocacy if the fraud finding was upheld.
(ASTERISK) Remove the 1% monthly interest charge on overpayment of unemployment benefits in cases where the overpayment was because of an error by the agency, not the claimant.
Another key remedy -- prohibiting MiDAS from making a fraud determination without review by a human being -- was implemented in 2015.
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