UIA notifies claimants collections will resume this month on overpaid benefits

Agency offers waivers for those who cannot repay

Move comes after judge orders agency to resume collecting

Michiganders who received more unemployment benefits than they were entitled to are being notified by the Michigan Unemployment Insurance Agency (UIA) that collections on those overpayments will resume at the end of the month. Those who cannot afford the back payments can apply for a waiver. 

As part of a court-approved settlement in the Saunders v. UIA class action lawsuit, a pause in collections will be lifted on Sept. 12, 2025. First payments for affected workers are due two weeks later, on Sept. 29, 2025.

“We understand the impact these collections will have on household budgets. That is why we are providing notice and information about applying for a financial hardship waiver,” said Jason Palmer, UIA Director. “At the same time, we are legally obligated under the Michigan Employment Security Act to seek repayment and we must fulfill our responsibility to ensure taxpayer money is returned to the Unemployment Insurance Trust Fund, so workers can count on money being available if they need it in the future.”

Workers will receive a reminder starting Sept. 9 in their Michigan Web Account Manager (MiWAM) accounts that they were overpaid benefits which must be returned. Claimants will receive a follow-up collection notice – known as a Form 1088 – Sept. 12 or after that includes the amount owed and information about applying for a waiver.

Questions concerning balances should be directed to the Benefit Overpayment Collections Unit at 1-866-500-0017, option #1, then option #4, and then option #1. A Frequently Asked Questions (FAQ) document can be found at Michigan.gov/UIA.

Roughly 350,000 workers with claims in collections dating back to March 2020 will be required to return benefits to UIA. The majority of people affected by the collections pause filed claims in 2020 and 2021, during the height of the COVID pandemic.

Workers previously received a notice that they had an overpayment, but due to the court-imposed pause on collections, UIA was not able to request repayments for the past five years. That pause ends Sept. 12.

There are two ways to pay debt:

• Submit payment through your MiWAM account.
• Send a check or money order with the Form 1088 Payment Voucher sent on Sept. 15 to: Unemployment Insurance Agency-Restitution, Dept # 771760, P.O. Box 77000, Detroit, MI 48277-1760. If not including a Payment Voucher, be sure to write a claim number on the check or money order.

If unable to pay the debt, workers can request a waiver, including a financial hardship waiver. If UIA determines repaying the overpayment will cause an extraordinary financial hardship, the debt will be waived.

The fastest way for a claimant to apply for a financial hardship waiver is through their Michigan Web Account Manager (MiWAM) account. A hardship waiver request can be also submitted using Form 1795 Request to Waive Repayment of Benefit Overpayment Balance, found at Michigan.gov/UIA.

Overpayments will not be waived on claims where there have been findings of fraud. UIA continues to aggressively pursue bad actors who steal money from Michigan taxpayers. 

Protecting the Trust Fund   

Following the law to recover overpayments protects the integrity of the unemployment insurance Trust Fund, from which benefits are paid. Protecting the Trust Fund is a key part of the agency’s broad reform agenda, which is focused on fast, fair, and fraud-free service.

As part of its reforms, UIA is informing claimants and employers about the best option for submitting a protest or appeal: File the appropriate form online through a claimant’s or employer’s MiWAM account. The forms can also be mailed or faxed. Forms are available online at Michigan.gov/UIA. Staff at any of 12 UIA Local Offices across the state can assist with accessing the forms.

UIA is also looking to strengthen its Advocacy Program, which provides free legal help to qualified workers and employers who appeal a redetermination.

Solutions for workers, employers 

UIA continues to upgrade technology, streamline processes, and improve communication with claimants and employers. Some of the innovative solution-based modern resources UIA offers:

• The UIA Claimant Roadmap, a six-step, user-friendly guide to applying for and understanding benefits. Find the roadmap at Michigan.gov/UIAClaimantRoadmap.
• Online Coaching Sessions, which are web-based group sessions on topics such as filing a first-time claim, understanding a Monetary Determination Letter, the protest and appeals process, and seeking work and registration requirements. The First-time Filer Coaching Session is also available in Spanish.
• An artificial intelligence-powered chatbot at Michigan.gov/UIA that delivers quick and accurate responses to general questions from workers and employers about unemployment insurance and programs from UIA.
• A comprehensive library of helpful resources for federal employees who have been terminated can be found at Michigan.gov/FederalWorkerHelp.
• Developing a new computer system to replace the decade-old MiWAM system. The modern MiUI system will be easy to use, speed claims processing, and build on the agency’s aggressive anti-fraud tactics. It also will include plain language forms and correspondence for easier understanding of expectations.
• Free legal help through the Advocacy Program to help more workers and employers with appeals of UIA redeterminations.
• UIA Economic Dashboard, which provides a deep dive into underlying data and trends in unemployment insurance in Michigan. Find the dashboard at Michigan.gov/UIAEconomicDashboard.
• A Modernization Workgroup, a coalition of thought leaders from the labor, business, and jobless advocate communities who provide insight into how the agency can better serve Michigan’s workers and employers.
• The plain-language Employer Help Center at Michigan.gov/UIAEmployerHelpCenter that answers employers’ questions about unemployment tax and claim issues.

Need help or have questions? 

Meet with us: Schedule an in-person, phone, or virtual meeting at Michigan.gov/UIA.

Chat with us: Available through MiWAM Monday through Friday, 8 a.m. to 4:30 p.m.

Ask us: UIA’s chatbot at Michigan.gov/UIA can answer general claimant and employer questions. 

Search us online: FAQs, videos, toolkits at Michigan.gov/UIA. Videos on YouTube.

Talk with us: Claimants can call 1-866-500-0017, Monday through Friday, 8 a.m. to 4:30 p.m. Employers can call the Office of Employer Ombudsman, 1-855-484-2636, Option 4.