State of Michigan to resume collection efforts on overpaid unemployment benefits
Michigan residents who owe the state for previously overpaid unemployment benefits now face a deadline to repay that money.
The change is because a court-approved settlement has halted a pause in those collections, and the first payments are due Sept. 29.
About 350,000 people are on that list. Some of these overpayments date back to March 2020, a press release from the State of Michigan explained. While the identified workers previously received notices about the overpayments, a court order prevented state officials from insisting on repayment until Sept. 12.
"We understand the impact these collections will have on household budgets. That is why we are providing notice and information about applying for a financial hardship waiver," said Jason Palmer, Michigan's Unemployment Insurance Agency Director.
"At the same time, we are legally obligated under the Michigan Employment Security Act to seek repayment and we must fulfill our responsibility to ensure taxpayer money is returned to the Unemployment Insurance Trust Fund, so workers can count on money being available if they need it in the future."
Affected workers will find a reminder starting Sept. 9 in their Michigan Web Account Manager (MiWAM) accounts as to the balance due. There will also be collection letters sent.
Most of the people affected received unemployment benefits during 2020 and 2021, state officials said. State and federal eligibility rules were in flux during that time due to the COVID-19 pandemic's impact on the workforce.