![]() ![]() Ģ3 Michigan Unemployment Insurance Agency, “Work search requirements for unemployment benefits to be reinstated,” Michigan Department of Labor and Economic Opportunity (2021), –,00.html.Ģ4 Department of Workforce Development, “Work search,” State of Wisconsin (2022). Ģ1 Employment and Training Administration, “Comparison of state unemployment laws,” U.S. Whitmer solidifies anti-fraud measures to protect unemployed workers,” Michigan Department of Labor and Economic Opportunity (2021), –,00.html.Ģ0 FGA, “Unemployment program integrity,” Foundation for Government Accountability (2020). ġ9 Michigan Unemployment Insurance Agency, “Gov. ġ8 Employment and Training Administration, “Quarterly data summary,” U.S. ġ7 Michigan Unemployment Insurance Agency, “Single audit report package-administration fund,” Michigan Department of Labor and Economic Opportunity (2021). ġ6 Michigan Unemployment Insurance Agency, “Single audit report package-Unemployment compensation fund,” Michigan Department of Labor and Economic Opportunity (2021). ġ5 Treasury Direct, “Unemployment trust fund report selection,” U.S. ġ3 Hayden Dublois and Jonathan Ingram, “How indexing unemployment can restore state trust funds, cut taxes, and grow the workforce in the wake of COVID-19,” Foundation for Government Accountability (2021). ġ2 Michigan Unemployment Insurance Agency, “Deloitte UIA report,” Michigan Department of Labor and Economic Opportunity (2020). Attorney’s Office, “Detroit Man Pleads Guilty in Unemployment Fraud Scheme,” U.S. Attorney’s Office, “Defendants charged in $4M unemployment fraud case,” U.S. Attorney’s Office, “Two Defendants Charged with Unemployment Insurance Benefit Fraud Combined Actual Losses in Excess of $3.2 Million,” U.S. Ĩ Beth LeBlanc, “Michigan’s unemployment fraud was so bad Kardashians got paid,” (2021). ħ Michigan Unemployment Insurance Agency, “Deloitte report,” Michigan Department of Labor and Economic Opportunity (2021). Ħ Scott McClallen, “LexisNexis: Michigan jobless agency lost $11 billion in fraud,” Losco County News-Herald (2022). ĥ Treasury Direct, “Unemployment trust fund report selection,” U.S. Ĥ Michigan Unemployment Insurance Agency, “Deloitte report,” Michigan Department of Labor and Economic Opportunity (2021). 25 The state should require a minimum of three work search activities per week.ġ Employment and Training Administration, “IPIA 2020 integrity rates all states,” U.S. 24 Since these activities are broad-encompassing not only applying for a job, but also attending a job fair, interviewing with an employer, and much more-they are fairly easy for claimants to complete. 23 This is wholly inadequate, especially compared to neighboring states which require as many as four times the number of work search activities. Michigan only requires unemployment recipients to conduct one work search activity per week. 22 Lawmakers should require the state to recover all unemployment overpayments by any means necessary. 21 Michigan also fails to fully offset overpayments against future unemployment benefits. For example, the state issues waivers to recover certain overpayments in instances of agency error or due to “equity or good conscience” considerations, which gives broad discretion to bureaucrats to waive the recovery of overpayments. This is largely because the state simply does not have robust recovery mechanisms in place. Michigan’s unemployment overpayment recovery is inadequate. 20 IMPROVING OVERPAYMENT AND FRAUD RECOVERY Other states that have adopted unemployment program integrity measures have been able to avoid unnecessary headaches brought on by fraud. ![]() Specifically, lawmakers can codify cross-checks against data the state already has at its disposal-like new hire records and incarceration records-to further prevent fraud and overpayments. Michigan should build on the state’s initial attempts to engage with data vendors to detect and prevent fraud at the earliest stages. ![]() This includes: BUILDING COMPREHENSIVE UNEMPLOYMENT PROGRAM INTEGRITY Put simply, there’s more Michigan policymakers can do. 19 While these executive orders contain a few modestly helpful provisions, they are severely lacking in the fundamental reforms needed to fix Michigan’s broken unemployment system. In response to mounting evidence of widespread fraud by independent investigators, Governor Whitmer issued a series of executive orders related to unemployment insurance. THE BOTTOM LINE: Governor Whitmer’s response to Michigan’s unemployment crisis is inadequate, but there are real solutions. ![]()
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