LaFave part of bipartisan plan to improve the states unemployment system

first_img Categories: LaFave News State Rep. Beau LaFave, of Iron Mountain, today introduced a bill in a bipartisan plan to fix Michigan’s Unemployment Insurance Agency.The legislation is based on findings of a workgroup consisting of industry experts and legislators. The plan will provide clarity, restore integrity and improve accountability within the agency and address the faults of the unemployment system.“It is obvious the current state of the unemployment system is flawed,” LaFave said. “Both sides of the aisle agreed something must be done to make sure reforms are made to fix the system.”The proposal will adjust interest owed by claimants in overpayment situations. There will be no interest if overpayment is due to agency error, and 1 percent interest accrued after one year if due to claimant error.“No one should be punished for a state agency’s failure,” LaFave said. “Our plan gives breathing room to those who have been overpaid due to the agency’s error by eliminating interest on payments.”The plan will address identity theft claims by creating a “watchdog” position to investigate fraud and make recommendations to improve the system. The legislation also will require claimants to submit more proof in order to be eligible for unemployment benefits and maintains the nation’s toughest penalties on fraud.The legislation also:Gives those accused of fraud access to an advocacy program;Allows the agency to reopen a fraud case within three years with good cause;Improves the process for determining the validity of an unemployment claim; andClarifies the eligibility for hardship waivers and the agency’s process for ruling on applications for a waiver. 19Oct LaFave part of bipartisan plan to improve the state’s unemployment systemlast_img