Michigan lawmakers press agency head on efforts to address fraudulent unemployment claims

Members of the House Oversight Committee on Tuesday questioned the head of the Michigan Department of Labor and Economic Opportunity on the agency’s efforts to support Michigan workers, many of which centered on the Unemployment Insurance Agency.

Following a presentation, members of the committee inquired about several areas of the department’s operations, with multiple members focusing their questions on $8.5 billion in fraudulent claims during the COVID-19 Pandemic uncovered through a third-party audit. 

Director Susan Corbin told members of the committee that the Unemployment Insurance Agency is working to modernize its unemployment system. The agency has launched an online chatbot to answer general unemployment insurance questions. It is also in the process of rolling out a new user platform, which Corbin said incorporates plain language forms and correspondence, as well as stronger anti-fraud protections.

She later noted that they had recently activated the employers’ side of that platform, and that they planned to do the same later this summer for the segment serving employees who are filing claims. 

While the agency is meeting its goals on payment promptness and reemployment, it still has work to do on improper payments, Corbin said, noting that is a major goal for 2026. 

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The Unemployment Insurance Agency’s goal is to keep its improper payment rate below 10%. It currently sits at 21%, Corbin said.

During the hearing Rep. Jason Woolford (R-Howell), who chairs the House Oversight Subcommittee on State and Local Assistance Programs, called attention to the Michiganders who believed they had received approval for unemployment benefits, only for the government to demand those payments back years later. 

“The confusion, the stress and the sleepless nights is very real for people,” Woolford said. “For every person on this panel as a representative, they’re hearing those pains. And while I understand that these are federal funds that the UIA cannot legally waive, the fact remains that mismanagement of the agency created this mess, and that’s fact, it’s before us, and now taxpayers are paying the price.”

Corbin noted that the agency’s previous system struggled to keep track of the unprecedented number of claims they received due to the pandemic.

“I do believe what my responsibility is now, is to make sure that we have strong leadership at the Unemployment Insurance Agency, and that we are working on a system that is fair and fraud free,” said Corbin, who served as the department’s senior chief deputy director at the beginning of the pandemic.

While members asked a number of questions tied to Michigan Auditor General’s reports on the agency, Corbin was unable to answer at Tuesday’s hearing, promising to follow up with additional information afterward.