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unemployment insurance

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By now, it’s been widely reported that the state of Michigan’s unemployment insurance computer system wrongly alleged fraud against thousands of people who filed for unemployment benefits.

The mess is still being worked out. In  many cases, the state is resisting making the people it wronged whole.

A new report by Zach Gorchow, editor of the Gongwer News Service, indicates there were concerns about that computerized system going back to the early days of its implementation.

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The Michigan Court of Appeals dismissed a lawsuit claiming the state wrongfully accused thousands of people of unemployment fraud.  

In 2013, the state started using an automated system to flag fraud cases. But the system wrongly identified tens of thousands of people – and some of them sued to get their money back, plus fees and interest.

But the court says they waited too long to file the lawsuit.

Michigan's Unemployment Insurance Agency (UIA) has wrongly accused tens of thousands of people of cheating on their unemployment claims.
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Attorneys for a number of people who say the state of Michigan wrongfully garnished their wages or seized their tax refunds hope an appeals court will rule quickly in their case.

Karl Williams says he’s one of tens of thousands of people who were wrongly accused of fraud by the state’s automated system for unemployment insurance.

The Lansing resident says the state is still garnishing his wages. He’s been working a ton of overtime to make ends meet.

Michigan's Unemployment Insurance Agency (UIA) has wrongly accused tens of thousands of people of cheating on their unemployment claims.
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A group of experts will try to figure out how a state computer glitch wrongly accused thousands of people of fraud.

 

Between October of 2013 and August of 2015, the agency’s processing system wrongfully accused tens of thousands of people of unemployment fraud. The agency had been almost exclusively relying on a computer program to determine unemployment fraud with very little human verification.

A full Senate vote on Besty DeVos' U.S. education secretary nomination is expected next week.
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Michigan is one of two states that don't apply public records laws to the governor's office and the Legislature. This Week in Review, Weekend Edition host Rebecca Kruth and Michigan Radio senior news analyst Jack Lessenberry look at bills from a bipartisan group of lawmakers who want to expand the state's Freedom of Information Act.

(Support trusted journalism like this in Michigan. Give what you can here.)

They also talk about this week's settlement of a major lawsuit over the state's automated unemployment claims system, opposition to Betsy DeVos' nomination as U.S. education secretary, and former Snyder chief of staff Jarrod Agen's new job in the White House.

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As many as 1.87 million Michigan workers may have had their personal information exposed through a newly discovered security vulnerability in the computer system used by the Michigan Unemployment Insurance Agency.

The information release affects workers whose paychecks are processed by a third-party payroll vendor. A software update installed in October 2016 included a vulnerability that allowed those vendors to access social security numbers and names of people that they were not authorized to view. 

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This week, Republicans and Democrats in Lansing seem to agree that it’s time to expand the state’s open record laws to cover the governor and the Legislature. Michigan is one of only a couple states that don’t already require all lawmakers to be subject to Freedom of Information Act (FOIA) requests.

Ken Sikkema, senior policy fellow at Public Sector Consultants and a former Republican legislative leader, along with Vicki Barnett, a former Democratic legislator, joined Stateside and said it might not be smooth sailing to the governor's desk. 

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Michigan's Unemployment Insurance Agency has settled a lawsuit over an automated claims processing system that falsely accused tens of thousands of people of fraud.

Between October 2013 and August 2015, the system kicked out more than 50,000 potential fraud cases. An initial state review of those cases found a 93% error rate. 

A lawsuit filed on behalf of the United Auto Workers union, Sugar Law Center and several individuals accused of fraud was dismissed Thursday under an agreement between the state and the plaintiffs.

Michigan's Unemployment Insurance Agency (UIA) has wrongly accused tens of thousands of people of cheating on their unemployment claims.
Bytemarks / Flickr - http://j.mp/1SPGCl0

Michigan's Unemployment Insurance Agency (UIA) has wrongly accused tens of thousands of people of cheating on their unemployment claims. Then it began garnishing wages, and tax returns, often without the wrongly-accused person even knowing what he or she supposedly did.

The UIA's director has apologized for the errors. But the mistakes, pinned on a computer system, have had thunderous repercussions in homes all over Michigan.

A photograph of the Michigan Capitol building
Steve Carmody / Michigan Radio file photo

A report from the state auditor general says Michigan's Unemployment Insurance Agency isn't doing enough to collect the delinquent taxes from employers.   

In 2013, after the state began using an automated system to identify cases of unemployment insurance fraud, more than 20,000 people were wrongfully accused, with an error rate of 93%. Staff at the agency have since moved away from the automated system, and the director has been reassigned to work on special projects.

For those who were targeted by the faulty computer system, however, changes at the agency may offer little consolation.