HB 5562 Summary

• Amends penalties in Michigan's Employment Security Act for willful violations and fraud related to unemployment benefits and employment reporting.

• Establishes tiered criminal penalties based on amount obtained through violations: up to 1 year imprisonment for amounts under $25,000; up to 2 years for $25,000-$100,000; up to 5 years for amounts over $100,000.

• Changes language for quarterly wage report penalties from "no penalty shall apply" to "an administrative fine shall not be imposed" when employer files corrected report within 14 days of notification; adds waiver for errors within $1.00 or omitted amounts less than $1.00.

• Allows unemployment agency to recover amounts obtained through knowing violations plus treble damages (3 times the amount), with ability to refer cases to prosecuting attorney for criminal prosecution.

• Creates felony offense for unemployment benefits obtained exceeding $3,500 but less than $25,000 through knowing false statements or willful failure to disclose material facts.