Michigan overhauled its unemployment insurance system nearly a decade ago to save money, root out fraud and make it harder for jobless workers to qualify for benefits. Now, with more than one million workers jobless, the state has flagged 1 in 3 claimants for fraud amid the coronavirus pandemic.
Jobs & Economic Development
He took down Michigan’s unemployment system. Now, he’s struggling to fix it.
Four years before Steve Gray took over the Michigan Unemployment Insurance Agency, he exposed a false fraud scandal that rocked state government and prompted reforms. Now, some lawmakers are calling for his ouster as he tries to fix a system crushed by record jobless claims amid the coronavirus pandemic.
Unemployment fraud tools harming Detroiters lawfully seeking benefits during coronavirus pandemic
The state is overwhelmed by the staggering number of unemployment claims and its system used to determine fraudulent claims from sincere ones is inefficient. Detroiters, who lawfully should have access to these funds, are stuck in financial limbo as bills continue to stack up.