Michigan Settlement Reached in Unemployment “Robo-Fraud” Lawsuit

Blanchard & Walker has obtained a far-reaching settlement with the state of Michigan regarding the past, present, and future handling of unemployment claims in Michigan.  We have fought this fight for nearly two years on behalf of our clients – the UAW, Detroit’s Sugar Law Center for Economic and Social Justice, individual UIA claimants – and on behalf of all Michigan workers.  Today, the Court confirmed an unprecedented settlement and restructuring agreement with the State.  Read it here: Zynda ORD 2017-02-02 Robo Fraud Settlement and Dismissal.   Here are some of the things that we have achieved today on behalf of Michigan UIA claimants:  [Read more…]

Major Breakthrough in the Fight Against Unemployment “Robo-Fraud” Determinations as State Announces Plans to Review Old Determinations.

Since at least 2013, the Michigan’s Unemployment Insurance System has had its computers set on data-mining old claims data, sometimes going back up to six years, to find data discrepancies and automatically issue “Robo-Fraud” determinations against unemployment claimants.

Now, just more than a year after we filed the federal court lawsuit challenging the constitutionality of the state’s unemployment fraud accusations, the UIA is showing the first signs of a break under mounting pressure from multiple quartersHouse Testimony.  In April, the federal judge hearing the constitutional challenge issued an Order denying the State’s motion to dismiss and clearing the way for the case to move forward. Meanwhile in Lansing, Reforms to the State System are being contemplated in the Michigan Legislature, where attorney David Blanchard testified last week on the impact of the system for Michigan UIA claimants and on the need to strengthen protections.

Last week saw another major development [Read more…]