Michigan's Unemployment Insurance Agency (UIA) is taking significant steps to enhance its operations and combat fraud, following a series of unethical actions that led to the termination of 35 employees. These actions, which included criminal activities and policy violations related to unemployment claims, have prompted the agency to evolve and improve its systems.

In 2026, the UIA plans to launch a new computer system called MyUI, which will replace the outdated MiWayam system. This upgrade aims to streamline the unemployment insurance experience for both workers filing claims and employers paying taxes. MyUI will incorporate advanced anti-fraud measures, including a new integrity hub dashboard and machine learning technologies to detect fraudulent activities.

Notably, Michigan will be the first state to implement an altered image pilot program designed to identify fake documents created by fraudsters using artificial intelligence. The new system will also feature redesigned forms that prioritize clarity and user-friendliness, ensuring that claimants and employers understand their responsibilities and next steps.

To support these initiatives, the UIA has received a $2.6 million integrity grant from the U.S. Department of Labor, which will fund 35 temporary positions aimed at investigating fraud and reclaiming stolen benefits. These efforts are part of a broader commitment to process improvement and data-informed decision-making within the agency.

Recent audits from the Office of Auditor General have shown progress in addressing fraud and claims processing issues. All findings from a December 2023 audit have been closed, demonstrating the agency's commitment to continuous improvement and accountability.

As the UIA moves forward with these enhancements, it aims to better serve Michigan workers and employers while ensuring the integrity of the unemployment insurance system. The upcoming changes are expected to significantly reduce fraud and improve the overall efficiency of claims processing.