Michigan residents recently sued over a their unemployment benefits being wrongly flagged for fraud.  The Michigan Unemployment Insurance Agency (MUIA) had flagged the workers for supposed benefit over payments they're not entitled to or for misrepresentation, and on Thursday, the federal case was dismissed as a deal was reached under U.S. District Judge Robert Cleland in Detroit. Evidently, a computer glitch is to blame in most cases, which affected more than 20,000 people, subjecting them to lost payouts and hefty fees.  The deal that was reached will effectively institute changes in the MUIA with the state agreeing to cease collections for alleged fraud between October 2013 and August 2015.  Notable plaintiffs in the suit include a law center and the United Auto Workers Union.

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Plaintiff attorney in the federal case, David Blanchard, states that his clients were “denied the problem and fought for a status quo that robbed unemployment beneficiaries of tax returns and income without due process. My clients and I are heartened by new leadership who finally acknowledge the problem and recognize that this settlement is this first step, but not the last step, of essential reform to the UIA.” Blanchard states that his clients will finally be awarded the "due process" they should have been entitled to from the start.  The win helps bring to light issues with state agencies in need of correction.  It encourages the average Joe to stick up himself against the system.  The state never admitted fault in the federal lawsuit settlement, but has agreed in the course of the changes being made to provide written notice in hard copy form to those who have been accused of receiving over payments or other forms of fraud moving forward. Email will no longer be seen as an acceptable means to notify these individuals, as many had claimed they never received the original emailed notices - either because they were filtered to spam or sent to inactive accounts.  Better methods of reporting, and keeping individuals updated on their status every step of the way, will also be implemented.  The settlement did not award monetary damages to the plaintiffs, however, above the necessary refunds owed to them.  A separate lawsuit has been filed seeking additional financial compensation.  This class action suit is still active.  

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Michigan Settles Lawsuit Over False Unemployment Fraud CasesMichigan settles federal unemployment fraud case