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State of Michigan Overpays Big on Unemployment Claims

3,000 Michigan Residents Received Duplicate Payments

With unemployment benefit claims already on the rise, it should come as no surprise that mistakes would be made. Early on during the increased layoffs and Government mandated shutdowns, the unemployment offices for the State of Michigan were experiencing unprecedented delays. To no one's surprise, this was causing great stress and frustration for those finding themselves needing to file for unemployment for the first time in their lives.

It turns out though, there was a small segment of the unemployed here in Michigan that may have received an additional benefit due to an oversight in the system.

The Unemployment Insurance Agency issued duplicate payments to a "small percentage of claimants" due to the fact that they were trying to put payments in the hands of those in need as soon as possible. The result? 8.2 Million Dollars in over payments in the form of duplicate benefit pay outs to nearly 3,000 residents. Now the hard part...they have to try and collect it back.

Claimants moved the extra money out of their bank accounts before the agency could automatically retrieve it, according to state officials.

Record Setting Numbers

The Coronavirus Pandemic has caused record setting numbers in the state of Michigan for unemployment rates and the trend continues across the United States. After experiencing a rise of upwards of 22% in the month of April, the accounting error was discovered shortly thereafter on May 11 after an internal review. Not surprisingly though, many of the additional funds were quickly moved out of the bank account where they were deposited before an automatic retrieval could take place.

While millions across the United States continue to claim that unemployment payouts have yet to reach them and with the additional $600 in stimulus payouts ending a week earlier in July than originally anticipated, the States need to make it a priority to ensure that mistakes like these are limited and funding is not wasted. More importantly, the States have a duty to resolve the issue for those who haven't received anything yet.

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