Topic: Fraud Penalty
Sponsor: Representative Kevin Hertel (D)
Introduced: October 24, 2017
Status: Enacted December 21, 2017
Effective Date: July 1, 2018
ISSUES WITH CURRENT LAW: Michigan’s current penalty rate for unemployment insurance fraud is up to 400% of the overpayment.
WHAT THE NEW BILL DOES:
- To impose fairer penalties for fraud (excluding identity fraud), the new bill establishes a penalty that is:
- 100% of the overpayment for the first instance of fraud
- 150% of the overpayment for subsequent instances of fraud
- For impostors who commit identity fraud, the penalty will be equal to 400% of the overpayment.
HOW THE NEW BILL HELPS CLAIMANTS:
- Establishes a fairer and more reasonable penalty for unemployment insurance fraud.
- Establishes a penalty that is closer to, but still higher than, other states’ fraud penalties.