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Report reveals problems with state unemployment insurance software before fraud scandal

Unemployment office sign
Michigan's Unemployment Insurance Agency (UIA) wrongly accused thousands of people of cheating on their unemployment claims.

By now, it’s been widely reportedthat the state of Michigan’s unemployment insurance computer system wrongly alleged fraud against thousands of people who filed for unemployment benefits.

The mess is still being worked out. In  many cases, the state is resisting making the people it wronged whole.

A new report by Zach Gorchow, editor of the Gongwer News Service, indicates there were concerns about that computerized system going back to the early days of its implementation.

Using the Freedom of Information Act, Gorchow dug up emails within the department indicating the problems extended beyond jobless benefit claims. It also failed when it came to the state’s cases against employers who were charged with not paying the state unemployment tax.

Gorchow joined Stateside today to explain. Listen above.

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