Imagine receiving a letter in the mail telling you that you committed Unemployment Insurance (UI) fraud several years ago and owed the government thousands of dollars in benefit repayments and penalties.
Beginning in 2013, workers who became unemployed began filing claims using Michigan’s new online unemployment system called the Michigan Integrated Data Automated System, or MiDAS. These workers did not expect to receive notices in the mail, in some cases long after they had found work and stopped receiving UI benefits, wrongly accusing them of fraud. The letters demanded thousands of dollars in repayment of their benefits plus large penalties, but did not provide information as to why the claimants were determined to have committed fraud. (more…)