Michigan UIA to pause collections for all pandemic overpayments

The Michigan unemployment insurance agency is suspending collection efforts for all claimants who have been told their unemployment benefits have been overpaid due to the pandemic.

For example, the suspension of collection activities, such as the seizure of a claimant’s wages and the seizure of tax returns, applies to overpayments related to claims filed on or after March 1, 2020, and is part of a class action court order. done as a department. Litigation Against Agency.

Implementation of the suspension is expected to begin next week, according to a joint status report filed with the Michigan Court of Claims on Thursday.

The suspension of collection activities will continue until the agency has processed the outstanding claims and the court has agreed to terminate the preliminary injunction, but it is broader than the court requested. In August, Court of Claims Judge Brock Swartzle clarified that the stay applies to all plaintiffs who have overpayment notices, have appealed or protested the decision, and have not yet exhausted all their options. (and not just the plaintiffs named in the lawsuit).

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