LANSING, Mich. (WILX) – Workers who owe the Michigan Unemployment Insurance Agency for benefit overpayments will soon have to resume payments.

The agency temporarily paused collections on benefit overpayments while a class-action lawsuit and settlement played out in court, and now it has been lifted. The pause prevented the agency from collecting benefits that were overpaid to workers dating back to 2020.

Roughly 350,000 workers will be required to return benefits to the agency, with the majority of people filing claims dating back to March 2020, during the COVID-19 pandemic.

Jason Palmer, the director for the Unemployment Insurance Agency, is urging affected workers that if they can’t afford to resume payments, they can apply for a waiver.

“When people receive these bills, if there’s a financial hardship, they should apply for a waiver,” Palmer said. “We are here to work with them and we are going to make this as painless as possible.”

Collection reminders have been sent through the claimants’ Michigan Web Account Manager and by mail. Claimants will also receive a follow-up collection notice, known as a Form 1088, that will include information about the amount owed and details on applying for a waiver.

Payments on overpaid benefits will resume on September 29. Workers who believe they owe money to the Michigan UIA can check their MiWAM account.

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