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 restitution determination within three years of the finality of a decision reversing a previous finding of benefit entitlement, with specific provisions for cases involving identity fraud. Notably, the bill introduces a one-year limit for recovering improperly paid benefits for claims made after the effective date of the amendment, except in cases of suspected identity fraud.

Additionally, the bill outlines conditions under which the agency may waive recovery of improperly paid benefits, emphasizing that waivers can be granted if repayment would be contrary to equity and good conscience. It specifies criteria for waivers, including situations involving clerical errors by the agency or incorrect wage information provided without intent to misrepresent. The bill also mandates annual reporting by the unemployment insurance agency regarding 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:
House Introduced Bill: 421.62