MI UIA MIDAS Reform Rules
Michigan UIA — Post-MIDAS Rules on Automated Fraud Determinations in Unemployment Insurance
MI · MCL § 421.62a; 2017 Mich. Pub. Acts 224-228
- Status
- In effect
- Took effect
- December 13, 2017
- Applies to
- Michigan Unemployment Insurance Agency; LEO (Dept. of Labor and Economic Opportunity)
- Enforced by
- Michigan Department of Labor and Economic Opportunity; Michigan AG (Bauserman class)
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.
Who is protected: Michigan unemployment insurance claimants
Legal 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.
Key facts
| Jurisdiction | MI |
|---|---|
| Level | State |
| Strength | Moderate |
| Enacted | December 13, 2017 |
| Citation | MCL § 421.62a; 2017 Mich. Pub. Acts 224-228 |
| 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 |
| Statute | MCL § 421.62a (Michigan UIA Determinations) |
More AI rules in MI
Related AI hiring and employment rules elsewhere
- CA EO N-6-26 (AI Workforce) · 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) · Blocked / in litigation
- Kistler v. Eightfold AI (FCRA, AI hiring) · Blocked / in litigation
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