LANSING, Mich. (WLNS) – Relief is coming to those ordered to repay unemployment due to overpayment.
The Michigan Unemployment Insurance Agency has secured a second approval from the United States Department of Labor to suspend collection activities for nearly 400,000 workers who applied for federal jobless benefits during the pandemic.
The suspension halts new wage garnishments and State of Michigan tax refund intercepts. It is the second suspension Michigan UIA Director Julia Dale has secured from the U.S. Department of Labor.
“The suspension will put money back in the pockets of people who needed pandemic unemployment benefits and followed the rules when they asked for help. This federal action will allow us the time we need to evaluate claims for overpayment waivers, which we will be announcing soon,” Dale said in a press release.
Dale also announced last week that waivers were granted for approximately 7,300 overpayment claims, relieving past unemployment recipients from the burden of $53.2 million in repayments.
A total of $484.2 million in overpayments have been waived on 62,300 claims this year.
The recent suspensions do not apply to claims determined to be fraudulent, claims being investigated for fraud, state unemployment insurance program overpayments or delinquent debts owed to other states or federal agencies.