<Home
Michigan House Republicans
COLUMN: Concerns with UIA’s customer service continue with overpayment issue
RELEASE|April 11, 2022

By State Rep. Jack O’Malley of Lake Ann

As people throughout Michigan and the state’s Unemployment Insurance Agency continue to deal with pandemic assistance overpayments, clarity is a rarity.

Many workers, including self-employed individuals and gig workers, who were authorized by the state to receive unemployment under expanded federal rules during the pandemic were informed weeks and months later of their ineligibility – in many cases after the money was already spent on bills and groceries.

An Auditor General report later disclosed UIA paid roughly $3.9 billion in improper benefits after including Pandemic Unemployment Assistance criteria that was not federally complaint. The report was clear that this was a mistake on the state’s end.

Over the last several months I have seen an alarming rise in the number of people in communities I represent contacting my office regarding overpayment issues with UIA. In each case, the person is being informed they supposedly owe the agency thousands or tens of thousands of dollars.

Understandably, this is alarming and stressful to get a notice like this out of the blue. The money has already been spent in a lot of cases. People are worried they’ve done something wrong or illegal. Also concerning – they lose trust in the agency’s ability to perform effectively and efficiently.

This confusion, hassle and uncertainty has been a big mess and it has not gone away. People who have found themselves in this position through no fault of their own are unsure if they are off the hook or not. Currently, the only way for someone to resolve an overpayment issue is to file a protest with UIA. This process often takes several months, and communications about overpayments are received even as an individual is actively working to get it all fixed or believes they have. Some do get through to the agency and receive some level of assurance over the phone, but they want more for their own protection – and rightfully so.

In response to these concerns, I recently sent a letter to UIA Director Julia Dale calling for additional, needed safeguards for people who have received overpayments due to state error. It is imperative for UIA to identify claimants who are eligible for overpayment waivers, waive their remaining balance and provide them with a legal letter or some form of binding documentation to confirm they do not owe the state and put their mind at ease.

We need proactive, practical steps to rectify this lingering issue. The burden should not rest on claimants to resolve a mistake they didn’t make. But in conversations I have with folks across northern Michigan who are stuck in this situation, that’s exactly what is being expected of them. This is a backwards approach. When someone goes through court-ordered community service or applies for a license or ID, the state expects proper documentation to move forward – not a promise from someone that everything is above board. People deserve the same from a state agency in this case.

I served on the Joint Select Committee on the COVID-19 Pandemic during the previous legislative term and examined UIA inefficiency as unemployment claims surged. On the House Oversight Committee during the current term, UIA issues have also been at the forefront. On both panels, the top issue in testimony with people who were put out of work and small business owners caught up in shutdown orders has been UIA’s customer service. It was made clear it could be better – and this is a huge opportunity to show that it will be going forward. I am hopeful the agency will provide people with this needed documentation.

State Rep. Jack O’Malley, of Lake Ann, is in his second term in the Michigan House serving residents in Leelanau, Benzie, Manistee and Mason counties.  

Michigan House Republicans
RELATED POSTS

© 2009 - 2024 Michigan House Republicans. All Rights Reserved.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.