LANSING, Mich. — State Sen. John Damoose applauded the Senate’s recent passage of legislation to protect Michigan residents from being forced to repay unemployment benefits that were paid during the COVID-19 pandemic.
“This was the state’s mistake,” said Damoose, R-Harbor Springs. “Things were changing very quickly during the pandemic, and people acted under the state’s guidance to apply for the benefits they needed. For the UIA to send out threatening letters and go after people who acted in good faith five years later is ridiculous.”
Senate Bill 700 would prohibit the Unemployment Insurance Agency from recovering an improperly paid benefit three or more years after the date on which the benefit was paid.
“This bill would put a stop to the UIA’s attempts to collect COVID-related unemployment payments that were issued because of a mistake on the part of the government,” Damoose said. “I’ve received panicked calls from people who thought they were doing the right thing in the whirlwind of pandemic-related layoffs and job losses, saying the UIA is demanding that money back. That would end under this bill.”
The bill would also protect businesses from footing the bill for the state’s mistake by prohibiting the state from attempting to recoup costs from the Unemployment Insurance Agency Trust Fund, which is 100% funded by employers.
“These collection attempts are causing both families and businesses undue financial stress, and we didn’t have an option — this needed to be done,” Damoose said. “This was a tremendous display of bipartisanship and proof that when we come together, we can do great things.
“I encourage my colleagues in the House and the governor to recognize the urgency with which this needs to be finalized so we can get it signed into law and protect both our residents and our employers.”
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