Michigan House Bill HB4371

Michigan 2023-2024 Regular Session

• Introduced: 4/11/23
• Refer: 4/11/23

Caption

Employment security: benefits; time period to initiate administrative or court action to recover improperly paid benefits or issue a restitution determination; modify and require notice of certain rights for certain determinations to become final. Amends sec. 62 of 1936 (Ex Sess) PA 1 (MCL 421.62).

Impact

Significantly, the bill changes the time frames for which the unemployment agency can initiate recovery actions. It allows recovery actions to be initiated within three years of a determination, with exceptions for cases involving suspected identity fraud or intentional misrepresentation. By placing these time limits and conditions on recovery actions, the bill seeks to provide more clarity and protection for individuals wrongfully identified as having impropriately received benefits.

Summary

House Bill 4371 aims to amend the Michigan Employment Security Act, specifically section 62, concerning the recovery of improperly paid unemployment benefits. The bill outlines the conditions under which the unemployment agency may recover erroneous benefit payments, primarily focusing on ensuring that claimants face due process while dealing with overpayments. It allows the agency to recover funds via deductions from future benefits or wages, cash payments, or tax refunds, with certain protections intended for claimants who may have received benefits without malicious intent.

Contention

One of the critical aspects of contention within the discussions surrounding HB 4371 is the balance it seeks to strike between protecting the rights of claimants and empowering the unemployment agency to act against fraudulent claims. While proponents argue that such measures are essential to ensure accountability and reduce misuse of funds, there are concerns that the stipulations could unduly penalize individuals who may have received benefits due to clerical errors or inadequate information from employers. Highlights of the bill include provisions for waiving repayments in cases where it would contradict equity and good conscience, amplifying the need for fair assessment of individual circumstances.