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UIA awarded $2.6 million federal grant to fight fraud
December 19, 2023
U.S. Department of Labor funding pays for extra staff to review cases
The Michigan Unemployment Insurance Agency (UIA) has been awarded $2,609,000 from the U.S. Department of Labor (USDOL) to expand the agency’s fight against fraud by pursuing bad actors and recovering federal and state money stolen from taxpayers.
“Integrity is central to the success of Michigan’s unemployment insurance program. Our agency has zero tolerance for anyone who fraudulently steals money from hard-working Michigan residents who rely on the safety net UIA provides when they lose their jobs,” said UIA Director Julia Dale. “This grant will allow us to expand our efforts to aggressively pursue bad actors and make them pay for their crimes.”
The American Rescue Plan Act (ARPA) Integrity Grant will pay for 30 new limited term unemployment insurance examiners and regulation agents in the UIA’s Fraud and Investigations Division. The staff will be dedicated to resolving outstanding claims arising from identity theft during the COVID-19 pandemic. Despite the majority of fraudulent claims being unsuccessful, the removal of these fraud claims is crucial to safeguarding the access of identity theft victims to vital UIA services and benefits in the future.
The new employees, many with previous UIA work experience, will support the efforts of nearly 50 limited-term employees in the Fraud and Investigations Division scheduled to work through June 2024.
At the height of the global pandemic, fraudsters took advantage of shifting rules for federal unemployment benefits programs to file fake claims using stolen identities. While under pressure to urgently provide unemployment benefits to millions of Michiganders who had lost jobs during the pandemic, the UIA used proprietary and collaborative tools to block numerous attempts to steal state and federal money. To date, 162 individuals have been charged with fraud or identity theft, 90 convicted, and 69 sentenced. More than $90 million has been recovered from bad actors.
UIA rebuilds program integrity
The UIA continues to prioritize anti-fraud efforts as part of an agency transformation into a national model for fast, fair, and fraud-free service.
The added staff coincides with reforms UIA has launched to stop criminal activity, including:
- Naming a Legal Advisor and creating the Legal and Compliance Bureau to leverage collaborative anti-fraud practices for pursuing bad actors.
- Launching the design and implementation of a new computer system to replace the aging MiWAM computer system. The new system, expected to be fully functional in 2025, will include robust anti-fraud measures.
- Collaborating with the Michigan Attorney General’s office as well as local, state and federal law enforcement to bring bad actors to justice and combat fraud.
- Implementing new ethics and security clearance policies for employees and contractors.
New ways to help workers, employers
Besides a commitment to fighting fraud, Director Dale is modernizing the UIA through improved customer service and providing new resources for workers and employers.
- The new UIA Claimant Roadmap is an easy-to-follow, six-step guide to applying for and understanding benefits. New First-time Filer Coaching Sessions provide online, web-based guidance to completing an application and qualifying for payments.
- The UIA Community Connect program provides hands-on expertise from staff in 10 regions across the state on navigating the unemployment insurance application process. They also connect workers or employers to resources within the UIA and provide outreach and education.
- Six new advocates have been added to the UIA’s Advocacy Program and their pay boosted by 30 percent. The program provides free, legal advice to claimants and employers who appeal UIA determinations.
- Outside stakeholders have open lines of communication to the UIA through the Modernization Workgroup, created in January. The workgroup includes members who represent labor, the business community, and jobless advocates to advise the agency on significant improvements in how it can better serve Michigan’s workers and employers.
Other significant agency successes, reforms
Since being named director of the UIA in October 2021 – the agency's 11th leader in as many years – Director Dale has also:
- Secured a more than $2.3 million equitable access and communications grant from the USDOL Tiger Teams initiative to redesign and simplify how UIA engages with employers and develop a help center for accessing agency services.
- Revamped the agency’s public website at Michigan.gov/UIA to be more user-friendly and responsive for those accessing services using cell phones or tablets.
- Rebuilt the UI Trust Fund to more than $2.3 billion (and growing), from which weekly benefits are paid to workers.
- Scored 100 percent for the third year in a row from the USDOL, meeting the reasonable assurance of quality benchmark for employer audits in 2022, 2021, and 2020.
- Reassigned staff and resources to address the largest categories of claims that are contributing to the agency’s case backlogs.
- Approved more than 76,000 overpayment waivers (with more to come) of state and federal benefits paid during the global pandemic, waiving more than $555 million.
- Halted overpayment collections on claims filed since March 1, 2020, while the agency addresses pending protests and appeals. More than $13 million has been refunded to workers since May 2022.
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