Michigan House Bill HB5391

Michigan 2025-2026 Regular Session

• Introduced: 12/17/25
• Refer: 12/17/25

Caption

Employment security: benefits; recovery of an improperly paid unemployment benefit more than 1 year after payment; prohibit. Amends sec. 62 of 1936 (Ex Sess) PA 1 (MCL 421.62).

Impact

The key provisions of HB 5391 reinforce the agency's authority to recover benefits deemed overpaid and introduce stricter conditions around how and when these recoveries can occur. Notably, the bill includes measures to protect claimants, such as stipulations against agency actions initiated after three years unless related to identity fraud or intentional misstatements. This means that individuals who received benefits unintentionally due to errors not under their control may have more contextual recourse in terms of repayment obligations.

Summary

House Bill 5391 aims to amend the Michigan Employment Security Act, specifically targeted at the provisions regarding the recovery of improperly paid unemployment benefits. The bill seeks to stipulate that if the Unemployment Insurance Agency determines that a person has received benefits improperly, recovery of those benefits can be initiated through various means, including wage deductions, cash payments, or tax refund deductions. However, it places certain limitations, such as capping deductions from benefits or wages to a maximum of 50%. Furthermore, the bill establishes a time frame within which the agency must issue a restitution determination, specifically within three years following a final determination or redetermination.

Contention

While HB 5391 attempts to streamline the recovery process for improperly paid benefits, its implications lead to potential contention over the balance between stringent oversight of benefit payments and fair treatment of claimants. Advocates for the bill argue that it prevents misuse of public funds, ensuring that only eligible individuals receive benefits. Conversely, critics worry it may disproportionately affect vulnerable individuals who could face significant financial strain from recovery actions taken by the agency, particularly in cases involving clerical errors or misstatements not made intentionally.