Michigan House Bill HB5008

Michigan 2025-2026 Regular Session

• Introduced: 9/18/25
• Refer: 9/18/25

Caption

Employment security: benefits; restitution of improperly collected benefits; decrease percentage of wages permitted to be garnished. Amends sec. 62 of 1936 (Ex Sess) PA 1 (MCL 421.62).

Impact

The bill's impact on state laws includes a clearer framework for the process and timeline related to benefit overpayment recoveries. The UIA is required to issue restitution determinations within three years of final decisions on benefit eligibility. The bill also introduces provisions that allow claimants to apply for a waiver of repayment under specific circumstances, particularly when payment of restitution would be deemed contrary to equity and good conscience. By providing clearer rules for repayment and the criteria for hardship waivers, the bill seeks to balance the recovery of funds with the financial realities of affected individuals.

Summary

House Bill 5008 seeks to amend section 62 of the Michigan Employment Security Act, specifically concerning the recovery of improperly paid unemployment benefits. The amendment modifies how the Michigan Unemployment Insurance Agency (UIA) can recover benefits deemed incorrectly awarded, including changes to the percentage of wages that can be garnished for restitution. Notably, the bill limits deductions from wages or benefits for the repayment of these overpayments to a maximum of 20% from the previous threshold of 50%. This change aims to ease the financial burden on claimants who may be subject to wage garnishment due to benefit overpayments.

Contention

Discussions surrounding HB 5008 likely focus on the efficacy of the changes to garnishment percentages and the criteria for hardship waivers. There may be concerns from advocacy groups about the balance between enforcing benefit repayment and ensuring that individuals are not left in dire financial situations due to overzealous recovery practices. Lawmakers may also debate the implications of these changes on the state’s ability to effectively manage unemployment insurance and what safeguards should be put in place to prevent abuse of the system, such as false statements or misrepresentations made by claimants.