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Legislature expected to OK unemployment agency misconduct deal

Unemployment Insurance Agency
/
michigan.gov

The state has reached a tentative 55-million dollar agreement to resolve a class-action lawsuit filed by workers who were wrongly forced to repay jobless benefits

In some cases, workers had wages and tax refunds garnished while they were still contesting the unemployment agency’s determination that they were improperly paid. The deal has been given a court’s preliminary OK.

The class action claim says the state’s pursuit of these workers during the pandemic intensified their stress and drove some into bankruptcy.

Amber McCann is the press secretary for the House Democratic majority. She says funding the settlement should not be an issue.

“Details have yet to be worked out, but I’m sure the Legislature will comply with whatever the terms of the settlement are.”

The unemployment agency won’t admit liability under the deal, but will take steps to prevent similar errors in the future.

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