Case Over the Michigan Unemployment Insurance Agency’s Faulty Automated System Finally Settled
In late January 2024, Michigan’s Court of Claims approved a long-awaited settlement in Bauserman v. Michigan Unemployment Insurance Agency (UIA), a case investigating the agency’s use of an automated system resulting in thousands of wrongful accusations of unemployment insurance fraud. The plaintiffs in this class-action lawsuit consisted of approximately 3,000 Michiganders falsely accused of fraud by UIA’s Michigan Integrated Data Automated System (MiDAS). They will receive a $20 million settlement for the severe financial damages inflicted upon them by MiDAS.
This policy brief explains how Michigan’s failed experience with MiDAS and other states’ experiences serve as cautionary tales of how the perceived benefits of implementing civic technology to streamline services can overshadow the real dangers and downstream consequences these systems can inflict on citizens who are trying to receive their much-needed and deserved government benefits.
