Checks to be Issued Soon to 3,200 Workers Wrongfully Accused of Unemployment Fraud
Michigan workers falsely accused of unemployment fraud are expected to receive checks as a settlement of a $20 million class action lawsuit against the Michigan Unemployment Insurance Agency. The final hearing is scheduled for Jan. 29; if approved, more than 3,000 individuals will receive settlement checks later this year. The lawsuit originates from the period between 2013 and 2015, when 40,000 people were unjustly flagged as fraudulent by the state’s automated unemployment system, MiDAS. This resulted in wage garnishments, intercepted tax refunds, and forced repayments of benefits. Court documents reveal that 3,206 people stand to gain from a $5 million fund set up for financial loss compensation. Another group within the class, numbering 968, will receive additional payments if they suffered hardships like bankruptcy, foreclosure, or declining credit due to the state’s actions. These hardship claims total $4 million.