The bill amends the Michigan Employment Security Act, specifically section 62, to clarify the procedures for recovering improperly paid unemployment benefits. It allows the unemployment insurance agency to recover benefits deemed improperly received through various methods, including deductions from future benefits or wages, cash payments, or tax refund deductions. The agency is required to issue a determination for restitution within three years of the final decision regarding benefit entitlement. Additionally, the bill introduces provisions for waiving recovery of improperly paid benefits under certain conditions, such as administrative errors or if repayment would be contrary to equity and good conscience.

Key changes include the establishment of a three-year limit for the agency to initiate recovery actions, with specific exceptions for cases involving identity fraud or intentional misrepresentation. The bill also mandates that the agency must notify claimants of their eligibility for waivers and the consequences of determinations regarding overpayments. Furthermore, it requires the agency to report annually on waiver applications and outcomes, ensuring transparency in the process. Overall, the amendments aim to streamline the recovery process while providing protections for claimants against unjust repayment demands.

Statutes affected:
Substitute (S-3): 421.62
Substitute (S-4): 421.62
Senate Introduced Bill: 421.62
As Passed by the Senate: 421.62