The Michigan Unemployment Insurance Agency will begin collecting overpaid benefits again starting Friday following a multi-year pause imposed by a class action lawsuit. An estimated 350,000 workers are affected—and the agency is offering hardship waivers for those unable to repay.
Why collections are resuming now
The pause was ordered in the Saunders v. UIA case, which temporarily blocked the agency from pursuing repayment on overpayments made during the height of the COVID-19 pandemic. A recent court-approved settlement now allows the state to resume collections.
- First payments are due by September 29, 2025
- Workers will receive notices via MiWAM (Michigan Web Account Manager)
- Official collection letters (Form 1088) will be issued starting September 12
UIA Director Jason Palmer said the agency must comply with the law:
“We are legally obligated under the Michigan Employment Security Act to seek repayment… while also offering support for those in hardship.”
How to check if you owe—and what to do next
Claimants can log into their MiWAM accounts to view any balances owed. Those receiving overpayment notices will have two repayment options:
- Online: Submit payment through MiWAM
- By mail: Send check/money order with Form 1088 to the designated Detroit address
Waiver available for financial hardship
Workers unable to pay may request a waiver, including a financial hardship waiver.
To apply:
- Use the MiWAM system (fastest method)
- Or submit Form 1795: Request to Waive Repayment of Benefit Overpayment Balance
Important: Overpayments linked to fraud are not eligible for waiver.
Reforms and resources from UIA
As part of a broader modernization effort, the agency is rolling out tools to improve transparency and access:
- Claimant Roadmap: Step-by-step guide to UIA benefits
- Online coaching sessions on claims, appeals, and filing requirements
- AI chatbot and FAQs at Michigan.gov/UIA
- UIA Economic Dashboard for data transparency
- A new, more user-friendly MiUI system is in development
UIA is also expanding its Advocacy Program, offering free legal help to those appealing UIA decisions.
Why this matters
The repayment pause stretched over five years, dating back to March 2020, when UIA issued millions in emergency unemployment aid during the pandemic. Many claimants were later flagged for overpayments—often due to changing federal eligibility rules.
Now, as collections resume, workers are encouraged to:
- Monitor MiWAM for notices
- Apply for waivers early if needed
- Call UIA’s Benefit Overpayment Collections Unit at 1-866-500-0017 for help
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