State Rep. John Reilly and the Michigan House of Representatives today approved legislation to reform the state’s Unemployment Insurance Agency (UIA) to provide more transparent, efficient service for jobless workers.

“This concrete, comprehensive plan will help solve problems at the unemployment agency, which I have heard from Michigan residents and witnessed in oversight hearings,” said Reilly, of Oakland Township. “Set timelines, an unemployment advocate and heightened transparency will help reduce delays, improve service and increase accountability at the agency.”

The reform package, consisting of House Bills 5549-5554, seeks to improve both customer service and transparency at the UIA. To help applicants get a response, HB 5553 would establish a clear, prompt timeline for the agency to make a determination on each claim. A timeline in HB 5551 would also ensure the UIA does not delay seeking repayment from honest claimants who received benefits due to a mistake by the agency. When claims are appealed, HB 5554 would require the agency to provide all necessary information to the administrative law judge reviewing the appeal.

HB 5552 would create an independent unemployment insurance advocate to provide oversight and investigate complaints about the agency, including complaints from people who have applied for benefits. Two reporting requirements will strengthen transparency about critical aspects of the agency’s work. HB 5549 would require a regular report to the unemployment insurance advocate about administrative appeals and federal monitoring reviews. HB 5550 would require monthly online posting of the amount in the unemployment trust fund, which is supported by taxes on Michigan employers.

The House also approved a plan to ensure recipients of the federal Pandemic Unemployment Assistance (PUA) program do not owe money to the state because they were approved under invalid criteria that the state agency incorrectly listed on the application.

“A mistake on a government form caused ineligible payments and led to widespread havoc,” Reilly said. “This plan will prevent the unemployment agency from hunting down the people who received benefits, who weren’t responsible for the mistake.”

HB 5625 would waive repayment for the nearly 700,000 PUA recipients who were approved under the invalid criteria from repayment. HBs 5525 and 5528 would ensure employer-funded accounts are not affected by the improperly paid PUA benefits.

The legislation previously received strong support from Reilly and other members of the House Oversight Committee, which has been actively reviewing actions by the UIA.

The bills now proceed to the Senate for consideration.