Did You Get COVID Unemployment? You May Owe It Back

If you received unemployment benefits during the COVID-19 pandemic, you might be one of the 350,000 Michiganders who may now be required to repay them.

The Michigan Unemployment Insurance Agency (UIA) defines an overpayment as unemployment benefits received by a claimant that they were not eligible to receive. Some Michiganders have already received a notice to repay the benefits they received during the pandemic.

Did You Receive Unemployment Benefits During The Pandemic?

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Many Michiganders filed for unemployment benefits when the pandemic began shutting down businesses in 2020. This led to a surge of applications to the UIA for assistance, during which the agency appears to have made some errors, resulting in benefits being granted to individuals who were not eligible.

In late September 2025, many Michiganders who had received unemployment benefits were sent letters informing them that they were not eligible for the payments and must now repay the funds. Many of these repayment demands involve large sums of money that recipients may not be able to afford to repay.

COVID Jobless Payments Under Review In Michigan

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The UIA is seeking to recover nearly $3 billion in unemployment benefits that it says were overpaid to workers who were ultimately found to be ineligible, despite initially being approved by the agency.

According to MLive, a White Cloud woman was sent a bill from the UIA claiming she owes $16,000 and needs to repay the unemployment benefits she received. The woman was one of 350,000 in Michigan that the UIA is going after.

In a 2024 lawsuit, a legal judgment required that, where an agreement was made to give workers due process before collection would begin. This process involves determining whether a worker made an error on their unemployment form that triggered a red flag with the agency, which could require them to repay the money unless they qualified for a waiver to be exempt from repayment.

If a worker is unable to secure a waiver that exempts them from repaying the benefits, the UIA has several options for recovery. These include garnishing the worker’s wages, seizing federal and Michigan state tax refunds, claiming lottery winnings over $1,000, and potentially referring the case for felony criminal prosecution.