Michigan residents falsely accused of unemployment fraud win major court ruling
Get breaking news alerts and special reports. The news and stories that matter, delivered weekday mornings.DETROIT — Residents who were wrongly accused of defrauding Michigan's unemployment program won a major ruling Friday as the state Supreme Court set a favorable deadline for people to sue over decisions spit out from a disastrous computer system and enforced by staff.
An automated computer system used by then-Gov. Rick Snyder's administration was a mess. People were accused of cheating to get jobless aid based solely on computers. They were forced to repay money, along with substantial penalties, and some were even forced into bankruptcy. Attorneys representing Snyder's Unemployment Insurance Agency argued last fall that the six-month deadline to sue kicked in when the fraud notices were received. But the Supreme Court, in a 6-0 decision, said the clock started ticking later, when people saw their money getting seized.
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