The Michigan unemployment settlement is a $55 million class action resolution in Saunders v. Michigan Unemployment Insurance Agency, which accused the UIA of taking back pandemic-era benefits from claimants whose protests and appeals had not yet been decided. The Michigan Court of Claims granted final approval on May 13, 2025, and payment checks for valid, timely claims were mailed on August 1, 2025.1BW Class Actions. Saunders v. UIA Improper Collections Class Action If you missed the claim deadline, you can still submit a late claim, but payment will not come until roughly fall 2026.
What the Lawsuit Was About
Filed in January 2022 by eleven named plaintiffs including Kellie Saunders, the case alleged that the UIA collected money back from claimants even when those claimants had pending protests or appeals, had been locked out of the agency’s online system and unable to file a protest, or had submitted protests the agency never processed or deleted.2Michigan Attorney General. Notice of Settlement, Saunders v. State of Michigan Unemployment Insurance Agency The collections took several forms: wage garnishments, tax-refund intercepts, and seizure of future benefits. The agency denied the allegations throughout the case.3Michigan Department of Labor and Economic Opportunity. What You Need to Know About the UIA Overpayment Lawsuit Settlement
The settlement also obligated the UIA to change its procedures so that claimants receive proper notice and an opportunity to appeal before collections begin.4Blanchard & Walker PLLC. UIA Class Action Litigation: What You Need to Know
Who Qualifies
The class covers anyone who was subject to those collection practices on an unemployment claim filed between March 1, 2020, and April 25, 2024.2Michigan Attorney General. Notice of Settlement, Saunders v. State of Michigan Unemployment Insurance Agency More than 23,000 Michigan residents were estimated to be eligible, with an average payout of about $1,400 per person.5Fox 2 Detroit. Approval of $55M Michigan Class Action Lawsuit Involving Unemployment Payments Delayed a Month
This settlement is separate from the earlier Bauserman case, which produced a $20 million settlement for about 3,000 people falsely accused of fraud by the MiDAS computer system between 2013 and 2015.6Michigan Legal News. Bauserman v. State of Michigan Unemployment Insurance Agency Settlement Approved Different years, different class, different payments.
How Payments Were Calculated
Payments come from the “Net Common Fund,” which is the $55 million plus accrued interest, minus attorneys’ fees (class counsel requested up to $18,333,333), administrative costs, and service payments of $25,000 to each of the eleven named plaintiffs.7BW Class Actions. Frequently Asked Questions
Each class member earned one “award point” for every dollar the agency had collected from them and not yet refunded. The more money that was improperly taken, the larger your share of the fund.1BW Class Actions. Saunders v. UIA Improper Collections Class Action Class members who believed they suffered additional harm could request an “Enhanced Award” by submitting supporting documentation.7BW Class Actions. Frequently Asked Questions
Deadlines and What to Do If You Missed Them
The original claim deadline was November 4, 2024, later extended to December 20, 2024.5Fox 2 Detroit. Approval of $55M Michigan Class Action Lawsuit Involving Unemployment Payments Delayed a Month Claims could be filed through the settlement administrator’s online portal or by calling 1-866-499-4565.2Michigan Attorney General. Notice of Settlement, Saunders v. State of Michigan Unemployment Insurance Agency Analytics Consulting LLC serves as the claims administrator and may request additional documentation to verify a claim.7BW Class Actions. Frequently Asked Questions
Late claims are still being accepted through the online portal, but they require separate court approval and are paid from a Reserve Fund the court established in the final order. Payments on valid late claims are expected to be determined roughly 18 months from the May 2025 order, which puts them around fall 2026.1BW Class Actions. Saunders v. UIA Improper Collections Class Action
If you did nothing and did not opt out, you are still bound by the settlement’s release of claims, even without a payment.2Michigan Attorney General. Notice of Settlement, Saunders v. State of Michigan Unemployment Insurance Agency
When Checks Went Out
Checks for valid, timely claims were mailed on August 1, 2025. The final order also directed money into a Relief Fund administered by the State Bar Foundation under terms spelled out in the settlement agreement.1BW Class Actions. Saunders v. UIA Improper Collections Class Action
The Settlement Does Not End UIA Collections
If you are currently facing a UIA overpayment demand, the Saunders settlement probably does not resolve it. The agency was pursuing nearly $2.7 billion in pandemic-era overpayments from roughly 350,000 claimants as of late 2025.8Michigan Advance. Workers Shouldn’t Pay for UIA’s Latest Mistakes A court-ordered pause on those collections expired in September 2025, and the state resumed collecting through tax-refund intercepts, wage garnishments, and bank levies.9Michigan League for Public Policy. Workers Shouldn’t Pay for UIA’s Latest Mistakes
Legislation is pending that could change this. On December 9, 2025, the Michigan Senate unanimously passed Senate Bill 700, sponsored by Senator Darrin Camilleri. The bill would impose a three-year statute of limitations on UIA collections, require the agency to notify claimants of their eligibility for time-based waivers, and apply retroactively to claims filed on or after February 1, 2020.8Michigan Advance. Workers Shouldn’t Pay for UIA’s Latest Mistakes It would also classify pandemic-era benefits paid between February 2020 and September 2021 as administrative error and waive them, as long as there was no final fraud determination. Overpayments tied to actual claimant fraud would not be affected.10Michigan Legislature. Senate Fiscal Agency Bill Analysis, SB 700 As of early 2026, the bill was awaiting action in the Michigan House.