What is an overpayment?

An overpayment occurs when you receive unemployment benefits that you are not entitled to. This could occur if you made a mistake when certifying for benefits, if you were not able or available to work, or you knowingly gave false or misleading information when filing a claim.

If you are overpaid unemployment benefits, you will receive a letter notifying you of the overpayment and how to start the repayment process. If you have been overpaid benefits and are currently employed, contact the UI Benefit Overpayment Collection Unit at 1-800-638- 6372 to arrange repayment terms.

If you are still receiving unemployment benefits while you have an overpayment, 50 percent (or 100 percent if fraud was involved) of your weekly unemployment benefits will be taken for repayment (this is called recoupment).

Interest on overpayments is one percent per month. Interest accrues daily and will continue to accrue until the total amount due is paid.

Failure to repay benefits improperly received can also result in:

  • Garnishment of your wages.
  • Your Federal and State of Michigan income tax refunds can be taken to pay the debt.
  • Lottery winnings you claim in excess of $1,000 may be intercepted.
  • Your claim being referred for criminal prosecution as a felony.
  • You may not be able to receive future benefit payments.