Advocacy News – Dec. 10, 2025
What’s new: This week, the Michigan Senate unanimously approved legislation that bars the Michigan Unemployment Insurance Agency (UIA) from recovering improperly paid unemployment insurance (UI) benefits caused by clerical or administrative errors after three years.
- Thanks to the Michigan Chamber’s advocacy, the bill clearly states that employers will not be held financially liable through the 100% employer-funded UI Trust. However, additional work is still needed to secure federal approval, since most of the outstanding funds are owed to Washington, D.C.
Why it matters: SB 700 aims to protect claimants from unexpected bills resulting from UIA mistakes, but it also encompasses an estimated $2.7 billion in overpaid claims. Because this money is owed to the federal government, Michigan must secure approval from the U.S. Department of Labor (DOL) to avoid unintended consequences for the state or for the solvency of the UI Trust Fund — which could be forced to repay the federal government if DOL determines SB 700 is impermissible.
What’s next: The MI Chamber will continue advocating for Michigan employers, who fund the system, to ensure the solution is sound. We simply can’t afford to get this wrong.
Go deeper: Read the leave behind the Chamber and other business groups submitted to the Michigan Senate this week.
Contact Wendy Block with questions.