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Rep. Posthumus votes to protect workers from costs resulting from unemployment agency blunder
RELEASE|January 26, 2022

State Rep. Bryan Posthumus joined the Michigan House of Representatives today in approving a plan to ensure hundreds of thousands of recipients of an emergency federal unemployment program are not forced to repay money due to a government error.

The plan would protect recipients of the Pandemic Unemployment Assistance (PUA) program who were approved under one of four criteria included on the application by the state Unemployment Insurance Agency (UIA) but were deemed invalid by the federal government.

“The notion of forcing innocent people to repay money that was sent to them in error unbeknownst to them is ridiculous,” said Posthumus, of Kent County. “These workers and their families endured enough when the governor ordered their workplaces to close, effectively denying them a source of income. After applying for unemployment benefits, the unemployment agency granted their request and paid them. These individuals had no reason to think they would ever have to repay that money, so they used it to pay bills and put food on the table.”

The legislation approved today would waive repayment for improperly paid PUA benefits that were approved by the state solely under the four invalid reasons.

Another measure Posthumus helped approve today deposits $250 million into the state unemployment trust fund to ensure local employers do not pay more in taxes to make up for the staggering $8.5 billion the Unemployment Insurance Agency lost to fraud during the pandemic.

The $250 million appropriation, when combined with another $150 million deposit included in the current state budget for the same purpose, makes up for the portion of the fraudulent payments that independent investigators and the Auditor General believe came specifically from the state unemployment trust fund, which is supported by unemployment insurance taxes on employers.

Other parts of the plan to fix problems at the Unemployment Insurance Agency include:

  • Accountability for the people: To address continued customer service concerns, the plan creates a new independent unemployment insurance advocate to serve as a point-of-contact for families who need help getting the jobless benefits they deserve. The UIA would be required to submit a report to the citizens’ advocate outlining the number of cases appealed by the agency and sent to the internal Board of Appeals Commission, as well as the length of time cases have sat before the commission before a final resolution is reached.
  • New provisions to protect workers: Limiting the time during which the Unemployment Insurance Agency can claw back funds paid in error will give jobless claimants and job providers more certainty moving forward.
  • More communication within state government: The proposal requires UIA to provide accurate and timely data regarding the status of the agency’s trust fund that is used to pay out benefits. The fund was heavily depleted as millions sought benefits over the last 18 months – causing concerns that money would not be available for benefits and that businesses, which are charged with paying into the fund, would see a contribution increase. The reporting would improve communication between a vital administrative arm and representatives of the people.

All three bills passed the House with overwhelming bipartisan support and now move to the Senate for further consideration.

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