Great Lakes Wire

This week, the Michigan Chamber of Commerce announced its opposition to Senate Bill 700, which would prevent the Michigan Unemployment Insurance Agency (UIA) from recovering unemployment insurance benefits that were improperly paid due to clerical or administrative errors if more than three years have passed.

The Chamber stated that while the bill is designed to protect claimants from unexpected bills, it could negatively affect the financial stability of the state's unemployment insurance trust fund. The organization emphasized that this fund is entirely financed by employers in Michigan and warned that limiting collections could increase the risk of fraud and misuse within the system.

"While SB 700 is intended to protect claimants from unexpected bills, it undermines the integrity and solvency of the state’s 100% employer-financed UI trust fund and exposes the system to increased risk of fraud, waste and abuse," said a spokesperson for the Michigan Chamber.

The Chamber, along with other business groups, has submitted a memo outlining their concerns to the Senate Labor Committee, where the bill is currently under consideration.