Michigan Unemployment Insurance Agency updates job search requirements for claimants

In a recent meeting of the Michigan Legislature's Subcommittee on State and Local Public Assistance Programs, significant discussions centered around the management of unemployment insurance (UI) and measures to combat fraud. The meeting highlighted the importance of implementing stricter verification processes and enhancing the requirements for claimants.

One of the key topics was the introduction of a new employee cross-match system that utilizes incarceration and death records to prevent fraudulent claims before payments are made. This proactive approach aims to reduce the financial losses associated with fraudulent unemployment claims, which have been a growing concern.

The committee also discussed the frequency of check-ins required for claimants receiving unemployment benefits. Currently, individuals must demonstrate their job search efforts once a week. However, starting in July 2026, this requirement will increase to three activities per week. This change is intended to encourage more active job searching among recipients, thereby facilitating their return to the workforce.

A notable suggestion raised during the meeting involved incentivizing businesses to report individuals who are attempting to work while receiving unemployment benefits illegally. The proposal includes the idea of offering a finder’s fee to businesses that help identify fraudulent activities. This initiative could potentially save the state significant amounts of money by reducing fraud.

Additionally, concerns were expressed regarding the reliance on self-attestation for verifying eligibility for unemployment benefits. The committee members emphasized the need for more rigorous verification processes to ensure that only eligible individuals receive assistance. This shift from self-attestation to more thorough checks is seen as a necessary step to maintain the integrity of the unemployment insurance system.

In conclusion, the discussions during this meeting reflect a growing commitment to reforming Michigan's unemployment assistance programs. By enhancing verification processes and increasing job search requirements, the state aims to reduce fraud and support individuals in their efforts to find employment. As these changes are implemented, ongoing communication with constituents will be essential to ensure understanding and compliance.