The deadline to file a claim to qualify for a settlement from the Michigan Unemployment Insurance Agency is approaching.
Thousands of workers filed for unemployment benefits during the COVID-19 pandemic. Some received them — and then had to repay that money. A class-action lawsuit alleges the agency took some of those benefits back without properly reviewing workers' appeals.
That includes pending appeals, appeals that could not be filed because the system was down, or appeals that the agency didn’t respond to in a timely manner.
David Blanchard is one of the attorneys representing the claimants. He said the agency’s online system for managing claims is partially to blame.
“That is money that belongs to the people of the state of Michigan that the unemployment agency took,” he said. “And they took it because that's how their system works, because they've set up a tilted stage that operates to automate everything in the direction of clawing back benefits, depriving people of due process, and generally holding back benefits that should be paid to people.”
The benefits were garnished without review because of the unprecedented volume of claims and appeals filed during the pandemic, according to a statement from the Office of Labor and Economic Opportunity. The office, which oversees the Unemployment Insurance Agency, was unable to provide someone for a recorded interview.
This isn’t the first time Blanchard’s firm has filed a lawsuit against the agency. In the 2010s, it settled a similar case with the agency for $20 million.
The agency is making changes to prevent similar problems from happening again, according to the press release. They’re hiring more advocacy workers and providing online guidance for first-time claims. But Blanchard is skeptical that those changes will solve the problem.
“They're Band-Aids at best. They're duct tape and gum,” he said. “There's a lot of work for the agency to do still.”
The agency has not assumed liability as part of the terms of the settlement, according to the press release.
The court still has to make a final decision on the settlement. That should happen at a hearing on March 20, 2025. But there may be appeals after that, which could lengthen the process — and delay payment to eligible claimants.
For now, Blanchard is urging workers to check their mail for the final notice mailed out this week. If you received a notice in the mail, that means you’re eligible. But you still have to file a claim to receive any money.
The deadline to file a claim, object to the settlement, or opt out and retain the ability to make other claims against the UIA is December 20.
If you’re not sure if you qualify, or have questions about the claims process, you can contact the settlement administrator:
- By phone: 1-866-499-4565
- By email: info@bwclassactions.com
- By mail: Saunders v UIA Improper Collections Class Action
c/o Analytics Consulting LLC
PO Box 2010
Chanhassen, MN 55317-2010
You can also learn more at the website Blanchard’s office set up or by visiting the Office of Labor and Economic Opportunity’s website.
