The bill amends the Michigan Employment Security Act, specifically section 62, to update the procedures for recovering improperly paid unemployment benefits. Key changes include a reduction in the maximum deduction from benefits or wages for repayment from 50% to 20%, and a stipulation that the unemployment insurance agency must issue a determination requiring restitution within three years after a final decision regarding benefit entitlement. Additionally, the agency is prohibited from initiating recovery actions more than three years after the last determination unless the improper payments were due to suspected identity fraud. The bill also introduces provisions for waiving recovery of benefits if repayment would be contrary to equity and good conscience, detailing specific circumstances under which waivers may be granted.

Furthermore, the bill mandates that the unemployment insurance agency must conduct a thorough review before initiating recovery actions and provide claimants with detailed information regarding their eligibility for waivers and the implications of any determinations made. It also requires the agency to report annually on the waiver process, including the number of applications received and granted, as well as the total amount of restitution waived. The changes aim to enhance fairness in the recovery process while ensuring that claimants are adequately informed of their rights and options.

Statutes affected:
House Introduced Bill: 421.62