Legal Question in Employment Law in Michigan

Re: UnEmployment Legal or not

An unemployed person who qualifies for unemployment benefits may collect them. An employed person may not, regardless of what an employer "instructs" the employee to do. Both the employer and employee likely are defrauding the State.

Additionally, an employer must make all deductions required by law and to report all income paid to an employee. An employer who engages in a scheme to defraud the State for unemployment benefits likely would avoid reporting any payments to the employee, as that would be evidence that the employee was working. An employee who actively participates in a scheme to defraud the IRS also could be liable for both civil and criminal sanctions.

A person who has engaged in this activity should immediately consult with an attorney to determine whether he/she has violated any law and to determine his/her legal rights and obligations. This is a very serious matter which could have criminal consequences. It will be necessary for an attorney to consider all relevant facts before advising a person regarding this matter.

This response is not intended as legal advice. Your rights and obligations will depend upon the particular facts and circumstances affecting this matter. You should consult an attorney in your area to discuss all of the relevant facts and circumstances. No attorney/client relationship is created as a result of this response.