Michigan claimants told to repay unemployment benefits can join class action settlement
Pandemic-era unemployment insurance claimants who believe they were wrongly told they owed money back to the state, or had their wages garnished or tax returns seized, can now go online for information about joining a class action settlement.
The website, BWClassActions.com, offers claimants the option to file a claim to be reimbursed for money paid back to the UIA before protests and appeals were resolved or opt out of the settlement, a news release from the UIA announcing the website said.
Michigan's Unemployment Insurance Agency agreed to pay $55 million in April and make changes to how it processes claims as part of a settlement it reached in a lawsuit filed by several workers who received unemployment insurance benefits in the pandemic and then were told they owe the money back, and in some cases, had their wages garnished or tax returns seized.
More on the settlement: Michigan's unemployment agency settles lawsuit for $55 million, will make changes
More on claimants waiting on benefits: Years post-pandemic, some out-of-work Michiganders are waiting on unemployment benefits
The claimants filed the lawsuit, Saunders v. Michigan Unemployment Insurance Agency, in the Michigan Court of Claims in January 2022. They argued that their due process rights had been violated after they received benefits in the pandemic and then were told they were overpaid benefits and had to pay them back.
As many as 1.83 million claimants were approved for some form of unemployment insurance benefits and received them and then were told they weren't eligible amid evolving guidance on eligibility from the federal government. The Unemployment Insurance Agency said those claimants had to pay the money back and in some cases, the agency clawed back money from those claimants.
Collection activities were paused in December 2022 as part of a court order for any claimant who filed for benefits on or after March 1, 2020, and who received an overpayment letter and appealed or protested the decision. The Court of Claims will decide when collections resume, the news release said.
"Our focus has always been on doing what’s right for claimants and this settlement reflects our commitment to a fair conclusion for all parties involved," Julia Dale, director of Michigan's UIA, said in the new release. "UIA is committed to correcting past wrongs and redoubling efforts to make sure workers get the benefits they deserve."
Claimants have until Nov. 4 to file a claim, object to the settlement or opt out. A final approval hearing is scheduled for March 20.
Claimants will need a claim number and pin to be reimbursed. Claimants who believe they are eligible for payment should:
Watch for an email from the UIA called "Saunders v. UIA improper collections settlement alert."
Log in to Michigan's online unemployment benefits system, MiWAM, regularly to see if there's a web message with the title "Saunders v. UIA Improper Collections Alert."
Look for a postcard notice in the mail.
If a claimant believes they're eligible for the settlement but hasn't received a claim number, they can call the settlement administrator at 866-499-4565 or email info@bwclassactions.com.
Contact Adrienne Roberts: amroberts@freepress.com.
This article originally appeared on Detroit Free Press: Unemployment claimants who paid back money can register for settlement
