Michigan UIA — Post-MIDAS Rules on Automated Fraud Determinations in Unemployment Insurance
MI · MCL § 421.62a; 2017 Mich. Pub. Acts 224-228
After Michigan's MIDAS automated fraud-detection system wrongly accused tens of thousands of unemployment claimants of fraud and seized their tax refunds, Michigan adopted statutory and regulatory reforms requiring human review before fraud determinations, restitution for wrongful determinations, and prohibition on fully automated fraud findings.
Technical detail
2017 Mich. Pub. Acts 224-228 (codified in MCL §§ 421.62, 421.62a, 421.54), in response to Bauserman v. UIA (Mich. 2019, settled $20M class action). Prohibits Michigan UIA from making fraud determinations based solely on automated indicators; requires individualized review and adverse-action notice with right to contest.
Who is protected: Michigan unemployment insurance claimants
Who must comply: Michigan Unemployment Insurance Agency; LEO (Dept. of Labor and Economic Opportunity)
Key facts
| Jurisdiction | MI |
|---|---|
| Level | State |
| Status | In effect |
| Protection strength | Moderate protection |
| Effective date | 2017-12-13 |
| Enacted | 2017-12-13 |
| Citation | MCL § 421.62a; 2017 Mich. Pub. Acts 224-228 |
| Enforced by | Michigan Department of Labor and Economic Opportunity; Michigan AG (Bauserman class) |
| Private right of action | Yes — individuals can sue |
| Penalties | Restitution to wrongfully accused claimants; civil liability under MI tort claims act |
| Topics | AI hiring and employment · automated decision-making · consumer protection |
| Last verified | 2026-06-17 |
| Official source | MCL § 421.62a (Michigan UIA Determinations) ↗ |
More AI rules in MI
Related AI hiring and employment rules elsewhere
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- CO ADMT Act (SB 26-189, 2026) · Enacted (not yet in effect)
- Maine LD 61 (employer surveillance disclosure & prohibition) · In effect
- Washington SHB 1672 (employee monitoring notice, ADS restrictions, emotion AI ban) · In effect
- Stop Spying Bosses Act (Senate, 2026) · Proposed / pending
- Meta AI Layoff Discrimination Lawsuit (2026) · In effect
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