House Bill 5166

House Bill 5166

Topic: Fraud Penalty
Sponsor: Representative Kevin Hertel (D)
Introduced: October 24, 2017
Status: Review by the House Oversight Committee

ISSUES WITH CURRENT LAW: Michigan’s current penalty rate for unemployment insurance fraud is up to 400% of the overpayment.

WHAT THE NEW BILL DOES:

  • To impose fairer penalties for fraud (excluding identity fraud), the new bill establishes a penalty that is:
    • 100% of the overpayment for the first instance of fraud
    • 150% of the overpayment for subsequent instances of fraud
  • For impostors who commit identity fraud, the penalty will be equal to 400% of the overpayment.

HOW THE NEW BILL HELPS CLAIMANTS:

  • Establishes a fairer and more reasonable penalty for unemployment insurance fraud.
  • Establishes a penalty that is closer to, but still higher than, other states’ fraud penalties.