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Rep. Wakeman fights to fix problems plaguing state unemployment agency
RELEASE|January 26, 2022

State Rep. Rodney Wakeman today stood up for Michigan families and job providers by voting to fix problems that have plagued the state’s Unemployment Insurance Agency.

Wakeman, of Saginaw Township, said most of the measures approved today address procedural issues and mistakes made by the agency that forced hundreds of thousands of people to wait far too long for the unemployment insurance checks they were owed. Another measure ensures hundreds of thousands of recipients of an emergency federal unemployment program do not have to repay money due to a government error on the program application.

“So many hardworking people were put out of work by the governor’s pandemic orders, only to be kept waiting for weeks or months while the unemployment agency delayed paying their claims,” Wakeman said. “Now, that same agency is sending bills to some of these same families, requiring them to pay back thousands of dollars because of a bureaucratic mistake. The level of additional pain inflicted upon innocent Michigan residents by the unemployment agency is truly astounding. Additional accountability measures are clearly needed.”

There currently is no clear-cut timeframe or deadline to review a jobless claim. House Bill 5553 requires the unemployment agency to review and determine someone’s eligibility within 15 business days of a claim being submitted.

House Bill 5265 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 but were deemed invalid by the federal government. The bill would waive repayment for improperly paid PUA benefits that were approved solely under the four invalid reasons.

Another measure approved 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. UIA would be required to submit a report to the citizens’ advocate outlining the number of cases that have been 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.

House Bills 5265, 5549-54 and 5525 now advance to the Senate for further consideration.

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