Based on the numbers alone, the odds are that you, somebody you know, or somebody you once worked with is now collecting unemployment benefits. If that's the case for you, chances are you know all too well how important those benefits are in order to make ends meet. One of our viewers found himself in the middle of a dispute over his benefits. He may have to pay them all back. He had questions. The answers I found for him are the subject of this Fact Finder.
Gary Kiernan remembers it as if it all happened yesterday, "I was terminated on September 25th of last year on October 2nd I went into Michigan Works and started the chain of events filing for unemployment benefits."
After 13 years on the job, Gary Kiernan found himself looking for another job, and in the mean time, filing out paper work to get unemployment benefits. It was an especially challenging time for the single parent.
Things got a little easier in November when his unemployment eligibility letter arrived from the State. It clearly says, "It is found that you were not fired for a deliberate disregard of your employer's interest. You are not disqualified for benefits."
The bottom line, according to Gary, was that he thought he qualified for unemployment. He didn't think twice about using his unemployment payments to cover his family's expenses. Until just a few days ago when Gary says "I received a letter from the state saying that my hearing for unemployment would be on Thursday and I guess my question is why after 4 months are they fighting it this time?"
This past weekend, Gary found out his former employer is now disputing his unemployment benefit on questions surrounding his termination. A hearing that could have a big impact on Gary because as he sees it, "as of right now my understanding is that if I fail to prove that I am eligible for these benefits that I will have to pay back approximately $6000." Gary doesn't have a problem with any employer disputing a claim, but thinks the time, and thus the money he maybe on the hook for, is unreasonable. Gary says "I feel it should be a 30 day period to say yes we are going to schedule a hearing and get it taken care of. My problem is now its taken 4 months for all of this to come about and I don't have pocket change to pay back $6000."
Gary wanted answers. How could take this long after he started to receive payments before a dispute arose? So I contacted the State's Department of Energy, Labor, and Economic Growth. Here is what they told me.
An employer or an employee has 30 days to protest the initial determination of unemployment eligibility. In this case, it appears Gary's former employer disputed his claims in early December. A UIA staff member was notified of the dispute, and than gathered more information, but was not required to notify Gary that his benefit eligibility was in question at that time.
In fact, Gary didn't know anything was even remotely wrong until he got this hearing notice in early February. Four months of checks cashed, and spent, he says without any thought that he might have to pay it back. But payback is a real possibility if a hearing on Thursday goes in his employer's favor. According to the state "If a claimant has been receiving benefits and is then found not to be entitled to those benefits, the person must repay the benefits received."
So what can you do if you find yourself in a dispute with an employer or employee when it comes to benefits? Here is what the Department of Energy, Labor and Economic Growth told me:
"The Unemployment Insurance Agency has an "Advocacy Program" that unemployed workers and employers can use when they have a hearing before an administrative law judge (ALJ). The program provides access to no-cost advocates who can provide their clients with information, consultation and representative services in preparation for most issues heard at an ALJ hearing. To secure an advocate the individual needs to call the program at 1-800-638-3994 and press #2 for advocacy assistance. Information about the program is included in the green "Unemployment Benefits in Michigan" booklet that every individual receives when they apply for unemployment benefits. Also, on the reverse side of the "Notice of Hearing" there is description of the Advocacy program and how people can contact it for help."
So what do you think? Should there be limit on how long an employer has to dispute an initial unemployment claim? What have your experiences been in dealing with unemployment benefits?
Please take part in our poll on this subject and leave a comment with your thoughts below.
