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Lawmakers settle unemployment benefits lawsuit

(Lansing, MI) - An automated computer system used during the administration of Governor Rick Snyder was a disaster. People were accused of cheating to get jobless aid. They were forced to repay money, along with substantial penalties, before the Unemployment Insurance Agency acknowledged widespread errors. Some victims filed for bankruptcy, lost wages, suffered poor credit ratings and had trouble finding jobs.

Michigan lawmakers have agreed to set aside 20-million dollars to settle a lawsuit by thousands of people who were wrongly accused of fraud when seeking unemployment benefits. The money was included in a larger bill recently signed into law by Governor Gretchen Whitmer. It follows an agreement reached by the attorney general’s office and lawyers for people who said their constitutional rights were violated.

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