Michigan Resumes Collection on $2.7B Unemployment Overpayments for 350,000 Workers

Michigan will resume collecting overpaid unemployment benefits from roughly 350,000 workers, with the first payments due by September 29. These overpayments, totaling about $2.7 billion, mostly date back to the COVID-19 pandemic era when state and federal eligibility rules were rapidly changing. Collection efforts had been paused due to a class action lawsuit alleging mistaken claims and wrongful wage garnishments, which resulted in a $55 million settlement and a temporary halt to repayments. Michigan's Unemployment Insurance Agency Director, Jason Palmer, acknowledged the financial burden this might impose on households but emphasized the state's legal obligation to recover funds to maintain the Unemployment Insurance Trust Fund. Those affected will receive notices starting September 9 via their Michigan Web Account Manager accounts and letters, and can apply for financial hardship waivers, though payments linked to fraud cases will not be waived. Payment options include online through MiWAM or by check, with resources available for those needing assistance.