Advocacy News – Nov. 12, 2025
What happened: This week, the Michigan Chamber voiced its opposition to legislation prohibiting the MI Unemployment Insurance Agency (UIA) from collecting improperly paid unemployment insurance (UI) benefits due to clerical or administrative errors after three years.
Why it matters: While SB 700 is intended to protect claimants from unexpected bills, it undermines the integrity and solvency of the state’s 100% employer-financed UI trust fund and exposes the system to increased risk of fraud, waste and abuse.
- There’s an alternative: The MI Chamber has suggested that, rather than barring collections altogether and asking employers to foot the bill of these errors, the Legislature could make a public policy decision and make an appropriation to the UI Trust to cover these claims. An appropriation would fairly recognize that neither employers or employees should be held responsible for the UIA’s fiscal mismanagement of the Trust Fund and left paying these improper claims.
Go deeper: Read the MEMO the Chamber and other business groups submitted to the Senate Labor Committee, where this bill is being considered.