My brother-in-law worked at a Florist shop making deliveries. He was required to use his own car. The car wasn't in good shape and he eventually could not continue to use his own vehicle. The Florist would not allow him to use their vehicles to make deliveries/work (though vehicles were available). They told him to come back when his vehicle was fixed. He could not afford to fix the vehicle. He submitted an unemployment claim and received benefits. The Florist claimed he was not unemployed though they refused him non-delivery work or the option to use their vehicle. He's being fined $10,000 for an "illegitimate claim" determination by unemployment. My view is that the employer refused him work. He was willing to work. Is there any way to fight this?
Michigan Employment Security (MES) Act, MCL 421.1 et seq. governs unemployment benefits and recovery of unemployment overpayments. Claimants for unemployment benefits, like your brother-in-law, must regularly certify to the State/UIA that they were available for employment and were seeking employment. During the certification process, claimants must indicate whether they were working full-time during the weeks for which they are certifying. In addition, claimants must report any earnings for the weeks for which they are certifying. Based on this, the state will make a benefits calculation and decide whether to pay benefits.
Under section 62 of the Act, the State/UIA is entitled to recover improperly-paid benefits plus interest. Section 15 of the Act allows interest on unpaid restitution at 1% per month. Doesn't seem so bad, right? But wait, there's more, and this is the part your brother-in-law really needs to understand. Section 54(b) of the Act, allows the State/UIA to impose penalties on a person who makes a false statement or representation knowing it to be false, or knowingly and willfully with intent to defraud fails to disclose a material fact, to obtain or increase a benefits payment. Penalties are double the amount of restitution if restitution is less than $500.00, and quadruple the amount of restitution if restitution is $500.00 or more! Quadrouple! 4 times! And now there is a finding of actual fraud hanging around out there, which can have other negative consequences for him later! The state will attempt to recover overpayments, impose interest, and the maximum penalty allowed. If your brother-in-law does not act immediately, this debt may become forever non-dischargeable in bankruptcy and it may stick with him until it is paid.
You must protest the determination or redetermination within 30 days of it being issued by the State/UIA MCL 421.32a. If he didn't do that he may still be able to protest the determination for cause within 1 year, but he must act now. If a determination is made by the State/UIA and he disagrees with it, he gets a hearing before an Administrative Law Judge, and when that decision is final after administrative review and appeal, you may be able to appeal to a court. Get a lawyer and get help now!
