Legislature cuts fines after jobless fraud scandal

LANSING, Mich. (AP) — The Michigan Legislature has unanimously voted to cut high financial penalties for collecting excessive unemployment benefits while easing the ability for employers and claimants to report cases of identity theft.

The legislation was approved Wednesday and will soon reach Gov. Rick Snyder. The bills are a response to thousands of people being wrongly accused of fraudulently receiving benefits.

In many cases between 2013 and 2015, claimants did not commit fraud and were hit with interest along with penalties above the overpayment.

Under the legislation, first-time offenders who receive an overpayment under $500 would have to pay it back instead of being required to refund the overpayment plus a penalty equal to four times the amount that was improperly obtained. Large fines would stay in place for “impostor” claimants.

To see past FOX 17 Problem Solvers reports on the UIA system, click here.

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  • patty priest

    We would like your help on our problem with a kitty that has lived at our library now 2 years, as of yesterday the board said that Awe kitty would have to leave because some one make a complient about her, first of all why after 2 years the kitty has been fixed so she could no have babies her shots and has a can at the library that people put money in for the kitty wants and needs, we are a community with lots of low income families so many children seniors just anybody goes to the library just to see awe kitty, make note she even has a stocking for the kitty for santa to fill, how is the general public going to handle the awe kitty is gone it sure it going to be a huge heart break for so many of us can you try and help us solve the problem please if you go to my face book page you can see a picture and some f what people are say about this issue

  • Julie Spencer

    Hello, my name is, Julie Spencer. About year 2012, I was laid off for the holidays about December, while working at Herman Miller, off Grand Haven Road in Muskegon, Mi. I kept calling to come back to work, and finally made it back in about February. While at work, at Herman Miller, I got a letter that I refused work. I wrote back, and said, “I’m back to work”. Next thing I know they charged me with fraud, while at work! They made me pay $7,000. As penalties. Taking my income, and taxes. I appealed my times without success. Is it to late to help me? I’m sure they still have all that information. They set me up with a phone call from a Judge while at work. Of course I missed it. I thought it was a mistake, and did’nt want to miss a day at work. Can you help me?