DETROIT (AP) – Michigan lawmakers agreed to set aside $20 million to settle a lawsuit by thousands of people who were wrongly accused of fraud when seeking unemployment benefits.
The money was included in a larger bill recently signed into law by Gov. Gretchen Whitmer. It follows an agreement reached by the attorney general’s office and lawyers for people who said their constitutional rights were violated.
An automated computer system used during the administration of Gov. Rick Snyder was a disaster.
People were accused of cheating to get jobless aid. They were forced to repay money, along with substantial penalties, before the Unemployment Insurance Agency acknowledged widespread errors.
Some victims filed for bankruptcy, lost wages, suffered poor credit ratings and had trouble finding jobs.