A $55 million settlement has been earmarked for Michigan residents whose pandemic-era unemployment benefits were pulled by the state, but you have until the end of today to decide.
The unemployment rate in the United States has risen to an alarming level during the COVID-19 pandemicas numerous businesses were forced to either lay off their workers or close up shop entirely. According to Center for Budget and Political Prioritiesthe unemployment rate during this period peaked at an average of 13% in the second quarter of 2020, a huge jump from 3.5% in February 2020.
Some of those affected by this surge in unemployment later claimed in a lawsuit that their benefits were scaled back by the state of Michigan in a way that violated their rights. A substantial settlement has now been reached for these claimants, and there's still a chance to get a handle on it.
There are only a few days left before the deadline to decide on this settlement, which should help some workers get a measure of restitution. Read on to get all the answers you need, and for more settlement news, find out if you qualify for a recent settlement against 23andMe.
Why was there a class action lawsuit?
The settlement arose out of the Saunders et al. vs. State of Michigan Unemployment Insurance. Originally filed in January 2022, the lawsuit accused the Michigan Unemployment Insurance Agency of illegally taking unemployment benefits that were issued during the COVID-19 pandemic. The settlement was reached in April, setting aside $55 million for the claimants.
The lawsuit accused the unemployment agency of claiming that certain individuals were overpaid in benefits during the pandemic, then leading it to make repayments before appeals could be properly evaluated. This, the plaintiffs argued, was a violation of their due process rights, and led to the garnishment of their wages and the seizure of their tax returns.
Who is eligible for this class action settlement?
Michigan residents whose benefits were reinstated by the agency between March 1, 2020 and April 25, 2024 are eligible to apply.
Those eligible for settlement should already have been alerted by mail or email. You can also log into your Michigan Web Account Manager unemployment insurance bill and see if there is a message titled, “Saunders v. UIA for Improper Collection Alert”. You can also check your eligibility with the neighborhood administrator by calling 866-499-4565 or emailing info@bwclassactions.com.
How do I decide on this neighborhood?
You can apply for website of the settlement administratorwhich requires a claim number and PIN. You can contact the settlement administrator if you are unsure about the credentials you will need.
The deadline for submitting these requests was previously set to November 4, but was later extended to this Friday, December 20.
How much will this settlement pay?
Payment estimates for this settlement are around $250 or more per claimant. However, it is not clear when these payments will be delivered. There is a final hearing in the case scheduled for March 20, 2025, but the settlement could still be appealed if approved, potentially delaying things further.
For more, find out if you're eligible for the Fortnite class neighborhood.