A final settlement with the Michigan Unemployment Insurance Agency (UIA) has been approved in a pandemic-era class action lawsuit that inspired innovative and transparent reforms in how Michiganders access jobless benefits.
Michigan Court of Claims Judge Brock Swartzle signed off this week on the settlement and directed UIA to end a pause in collecting certain benefit overpayments on pandemic unemployment assistance and standard unemployment insurance claims filed since March 1, 2020.
The $55 million settlement in Saunders v Unemployment Ins. Agency et al. affects more than 23,000 Michigan workers who filed claims asserting UIA wrongly asked them to repay pandemic-era unemployment benefits before determining whether a protest or appeal was submitted on time or at all.
“UIA will continue its efforts to make sure claimants know of their rights and receive a timely response to their protests and appeals,” UIA Director Jason Palmer said. “UIA was happy to work in partnership with the court to resolve this case. This journey has guided us as we developed impactful ways – such as our Claimant Roadmap and Online Coaching Sessions -- to improve how Michiganders access unemployment.”
Under the settlement agreement, UIA will refrain from collecting overpayments until protest or appeal rights have been exhausted and claimants are given a chance to request a waiver based on financial hardship, administrative or clerical error, or a wage reporting error.
A new, modern computer system, other technological upgrades, and plain-language instructions are just some of the innovative reforms UIA has developed to address issues raised in the case that will benefit Michiganders when navigating the unemployment filing landscape such as:
• Plain language instructions at Michigan.gov/UIA for submitting protests and appeals.
• Online Coaching Sessions, including one that explains the protest and appeals process.
• The UIA Claimant Roadmap, a six-step, easy-to-understand guide to filing for and understanding unemployment benefits.
• Developing a new computer system to replace the decade-old Michigan Web Account Manager (MiWAM) system. The modern MiUI system will automate the protests and appeals process.
• Plain language forms and correspondence in MiUI that will clearly explain rights and next steps for claimants who appeal or protest a determination.
• New optical scanning technology will be used for accurate and quicker processing of claimant forms mailed to UIA.
• Piloting the development of an artificial intelligence chatbot at Michigan.gov/UIA that will provide detailed information about unemployment and links to resources.
The lawsuit was filed in January 2022, and in rulings by Swartzle the following summer UIA paused collecting all established overpayments from claimants who had appealed or protested a determination in a timely manner. The directive from the judge means claimants who were paid more benefits than they were entitled to receive on regular or pandemic claims may now be required to pay back the funds.
“UIA will work to understand the full implications of the court’s order to end the collections pause and determine the best path forward,” UIA Director Palmer said. “When the time comes, UIA is committed to issuing clear guidance to the public outlining next steps and expectations for those asked to repay benefits they were not entitled to receive.”
UIA supported the process that led to the lawsuit settlement approval, highlighting one of the many ways the agency is addressing issues that arose from an unprecedented global health crisis. The settlement is part of UIA’s commitment to becoming a national model for fast, fair, and fraud-free service.
Michigan Court of Claims Judge Brock Swartzle signed off this week on the settlement and directed UIA to end a pause in collecting certain benefit overpayments on pandemic unemployment assistance and standard unemployment insurance claims filed since March 1, 2020.
The $55 million settlement in Saunders v Unemployment Ins. Agency et al. affects more than 23,000 Michigan workers who filed claims asserting UIA wrongly asked them to repay pandemic-era unemployment benefits before determining whether a protest or appeal was submitted on time or at all.
“UIA will continue its efforts to make sure claimants know of their rights and receive a timely response to their protests and appeals,” UIA Director Jason Palmer said. “UIA was happy to work in partnership with the court to resolve this case. This journey has guided us as we developed impactful ways – such as our Claimant Roadmap and Online Coaching Sessions -- to improve how Michiganders access unemployment.”
Under the settlement agreement, UIA will refrain from collecting overpayments until protest or appeal rights have been exhausted and claimants are given a chance to request a waiver based on financial hardship, administrative or clerical error, or a wage reporting error.
A new, modern computer system, other technological upgrades, and plain-language instructions are just some of the innovative reforms UIA has developed to address issues raised in the case that will benefit Michiganders when navigating the unemployment filing landscape such as:
• Plain language instructions at Michigan.gov/UIA for submitting protests and appeals.
• Online Coaching Sessions, including one that explains the protest and appeals process.
• The UIA Claimant Roadmap, a six-step, easy-to-understand guide to filing for and understanding unemployment benefits.
• Developing a new computer system to replace the decade-old Michigan Web Account Manager (MiWAM) system. The modern MiUI system will automate the protests and appeals process.
• Plain language forms and correspondence in MiUI that will clearly explain rights and next steps for claimants who appeal or protest a determination.
• New optical scanning technology will be used for accurate and quicker processing of claimant forms mailed to UIA.
• Piloting the development of an artificial intelligence chatbot at Michigan.gov/UIA that will provide detailed information about unemployment and links to resources.
The lawsuit was filed in January 2022, and in rulings by Swartzle the following summer UIA paused collecting all established overpayments from claimants who had appealed or protested a determination in a timely manner. The directive from the judge means claimants who were paid more benefits than they were entitled to receive on regular or pandemic claims may now be required to pay back the funds.
“UIA will work to understand the full implications of the court’s order to end the collections pause and determine the best path forward,” UIA Director Palmer said. “When the time comes, UIA is committed to issuing clear guidance to the public outlining next steps and expectations for those asked to repay benefits they were not entitled to receive.”
UIA supported the process that led to the lawsuit settlement approval, highlighting one of the many ways the agency is addressing issues that arose from an unprecedented global health crisis. The settlement is part of UIA’s commitment to becoming a national model for fast, fair, and fraud-free service.
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