(WXMI) — Relief could soon be coming for Michiganders who were told they would have to pay back unemployment money.
On Monday, the U.S. Department of Labor announced they are expanding guidance for waivers, meaning potentially thousands of Michiganders won’t have to pay back the benefits they received, even after the UIA initially told them to.
The state agency requested that money after they made mistakes in determining Pandemic Unemployment Assistance (PUA) eligibility, an audit found they overpaid billions of dollars in claims because of that and fraud.
The UIA issued waivers to more than 350,000 people, but there are still thousands who were told to pay the money back at no fault of their own.
On Monday, Michigan Governor Gretchen Whitmer said after meeting with the USDOL, waiver eligibility requirements will be expanded.
“Michiganders should not be penalized for doing what was right at the time they applied for federal pandemic benefits,” said Gov. Whitmer.
U.S. Labor Secretary Marty Walsh saying in a statement,”I appreciate Governor Whitmer sharing the challenges Michiganders were facing and the need for broader overpayment waiver flexibility. We’re hopeful the guidance issued by DOL today will enable states like Michigan to prevent any further undue hardship for claimants.”
The department approved 5 new scenarios that are waiver eligible including:
- An individual responded “no” to being able and available for work and the state issued payment for Pandemic Unemployment Assistance or Pandemic Emergency Unemployment Compensation without adjudicating the eligibility issue.
- An individual was eligible for payment and the state issued payment at a higher rate Weekly Benefit Amount under the Pandemic Unemployment Assistance or Pandemic Emergency Unemployment Compensation program.
- The individual responded “no” to being unemployed, partially unemployed or unable or unavailable to work due to the approved coronavirus-related reasons, and the state paid Pandemic Unemployment Assistance. When asked to self-certify, the individual did not respond or confirmed that none of the approved coronavirus-relaed reasons applied and the state issued payment, resulting in overpayment for the week.
- The individual submitted required proof of earnings used to calculate Pandemic Unemployment Assistance Weekly Benefit Amount and the state incorrectly processed the calculation resulting in a higher weekly benefit amount under the PUA program.
The individual submitted proof of self-employment earnings to establish eligibility for Mixed Earners Unemployment Compensation Program and the state incorrectly processed the information, resulting in overpayment.
Click here to see what was already included in their waiver guidance.
“We appreciate the USDOL’s swift action to provide much needed relief through expanded waivers for Michigan workers,” says UIA Director Julia Dale.
The agency says they will review claims and are working to see how quickly more waivers could be issued. As they make determinations, claimants will be updated by letter and through their MIWAM accounts.
“We ask that claimants remain patient and reply to any correspondence from UIA in a timely manner so we can get through these cases and provide relief to those facing repayment,” added Dale.
The agency says waivers will not be applied to claims where they believe fraud is involved and they are still working to reclaim those fraudulent payments.
Last month, the State House passed a bill that would grant waivers to people who received overpayments due to errors by the state. That bill is still in the Senate.
