Quick Answer: Michigan’s Unemployment Insurance Agency agreed to pay $55 million to over 23,000 workers whose benefits were improperly collected during the pandemic. The original claim deadline passed in December 2024, but late claims are still being accepted. Timely filers should expect payment around July 2025, while late claim payments are expected in fall 2026.
If you’re a Michigan worker who had unemployment benefits clawed back during the pandemic, you may be owed money — and you can still file a late claim even though the original deadline has passed.
On May 13, 2025, Judge Brock Swartzle of the Michigan Court of Claims approved a $55 million settlement in Saunders v. State of Michigan UIA (Case #22-000007-MM). This settlement addresses the Michigan Unemployment Insurance Agency’s practice of collecting money from workers while their appeals and protests were still pending — something they should never have done. (Source: Blanchard & Walker PLLC)
Debt is math wrapped in emotion. When a government agency takes money it shouldn’t have, that’s not your moral failing — that’s their math error.— Steve Rhode
What Happened: UIA Collected Money It Shouldn’t Have
Between March 1, 2020 and April 25, 2024, the Michigan UIA collected unemployment benefit overpayments from workers who were still in the process of appealing or protesting those overpayment determinations. In plain English: the state took money from people before their cases were even decided.
More than 23,000 Michigan workers were affected by this practice. The broader context is staggering — the UIA overpaid approximately $2.7 billion to roughly 350,000 Michigan residents during the pandemic. (Source: WZZM13)
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You Can Still File a Late Claim
Here’s the good news: you missed the December 20, 2024 deadline, but late claims are still being accepted and will be paid subject to court approval.
Key Difference: Timely filers (before December 20, 2024) are expected to receive payment around July 2025. Late claim filers should expect payment in fall 2026. Either way, you can still get paid.
Individual payouts are estimated between $1 and $25,000, calculated on a pro rata basis depending on how much was improperly collected from you.
To file a late claim, contact the Settlement Administrator:
- Administrator: Analytics Consulting LLC
- Phone: 1-866-499-4565
- Email: info@bwclassactions.com
- Website: bwclassactions.com
What About the $18.3 Million in Attorney Fees?
Yes, up to $18.3 million (one-third of the settlement) goes to attorney fees, and the named plaintiffs in the case each receive $25,000 service awards. I know that number stings. But here’s the reality: without the attorneys who brought this case, the state would still be collecting money from people while their appeals were pending. Nobody was going to fix this voluntarily.
After fees, the remaining funds are distributed pro rata to qualifying class members based on the amount improperly collected from each person.
The Bigger Problem: Collections Are Resuming
Even if you qualify for this settlement, you may still face collection activity from the UIA for separate overpayment amounts. And here’s the part that makes my blood boil: interest is accruing at 1% per month on these balances. (Source: MLPP)
Warning: The UIA is actively resuming collections on pandemic-era overpayments. Interest at 1% per month (12% annually) means your balance is growing. Do not ignore collection notices — you have options.
Michigan State Senator Darrin Camilleri has introduced legislation to waive pandemic-era unemployment overpayments entirely, but that bill hasn’t passed yet. Don’t count on it — deal with what’s in front of you now.
Your Options If You Owe the UIA
This is where I want you to think clearly, not emotionally. You have real options. Here’s what they look like:
Options That May Help
- File a late settlement claim — Get money owed to you from the $55M
- Request a financial hardship waiver — UIA does have a waiver process, but only for financial hardship (not errors)
- Contact the UIA Advocacy Program — Free help navigating the system
- Consult a bankruptcy attorney — Non-fraud unemployment overpayments CAN be discharged in bankruptcy
- Use Michigan Legal Help — Free legal resources at michiganlegalhelp.org
What to Watch Out For
- No error-based waiver form exists — UIA only offers financial hardship waivers, not “they made a mistake” waivers
- 1% monthly interest — Delay makes the balance grow fast
- Tax intercepts — UIA can intercept your state and federal tax refunds
- New UIA software (summer 2026) — May bring more automated collection activity
Bankruptcy Can Erase Unemployment Overpayments
Most people don’t know this, and most debt advisors won’t tell you: non-fraud unemployment overpayments can be discharged in bankruptcy. If the UIA says you were overpaid but doesn’t allege fraud, that debt can potentially be wiped clean through a bankruptcy filing.
Key Insight: Bankruptcy doesn’t ruin your credit the way people think. It’s stupid easy to rebuild exceptional credit quickly after filing. The question isn’t “will my credit score drop?” — it’s “what serves my future best?” If you’re facing thousands in UIA overpayments with 12% annual interest, a fresh start might be the smartest math.
I filed bankruptcy myself in 1990 when my business crashed. It felt like my biggest failure at the time. But it led me to understand that facts were clouded in emotion, not logic. The Federal Reserve has studied this — bankruptcy filers do better financially than people who grind it out for years trying to repay. (Source: Michigan LEO)
Free Legal Help Available
You don’t have to navigate this alone, and you don’t have to pay someone to help you:
- UIA Advocacy Program — Free assistance specifically for unemployment insurance issues
- Michigan Legal Help — Free online legal information and self-help tools at michiganlegalhelp.org
- Settlement Administrator — Call 1-866-499-4565 for claim-specific questions
Not sure what to do about your debt situation? Take the free Find Your Path quiz to get personalized guidance on your best options. It takes less than 2 minutes.
What to Do Right Now
Stop overthinking this. Here’s your action plan:
- Step 1: Check if UIA collected money from you while your appeal was pending (March 2020 – April 2024)
- Step 2: If yes, file a late claim at bwclassactions.com or call 1-866-499-4565
- Step 3: If you still owe the UIA separately, contact Michigan Legal Help for free guidance
- Step 4: If the balance is large and growing, talk to a bankruptcy attorney about whether discharge makes sense for your situation
- Step 5: Do NOT ignore collection notices — the interest is 1% per month and tax refund intercepts are real
Key Takeaways
- The $55 million Michigan UIA settlement covers improper collections from March 2020 to April 2024
- Late claims are still being accepted — contact Analytics Consulting LLC at 1-866-499-4565
- Timely filers get paid around July 2025; late filers around fall 2026
- UIA collections are resuming with 1% monthly interest — don’t wait
- Non-fraud unemployment overpayments can be discharged in bankruptcy
- Free help is available through Michigan Legal Help and the UIA Advocacy Program
The Bottom Line: The Michigan UIA took money from workers it shouldn’t have, and now there’s $55 million on the table. If you were affected, file your late claim. If you owe more than you can handle, know that bankruptcy is a real, legitimate option — not a failure. Deal with it and look to the future rather than spend years grinding against government debt with 12% annual interest. You are not your debt.
Sources
- Blanchard & Walker PLLC — Official Settlement Site
- Michigan LEO — What You Need to Know About the UIA Overpayment Lawsuit Settlement
- WZZM13 — Michigan Unemployment Insurance Lawsuit Settled
- Michigan Legal Help — PUA Overpayment Information
- Michigan League for Public Policy — Breaking Down the New Wave of Unemployment-Related Collections
Frequently Asked Questions
Can I still file a claim for the Michigan UIA $55 million settlement?
Yes. While the original December 20, 2024 deadline has passed, late claims are still being accepted and will be paid subject to court approval. Contact the Settlement Administrator at Analytics Consulting LLC by calling 1-866-499-4565 or emailing info@bwclassactions.com. Late claim payments are expected in fall 2026.
How much money will I get from the Michigan UIA settlement?
Individual payouts are estimated between $1 and $25,000, calculated on a pro rata basis. The amount depends on how much was improperly collected from you during the March 2020 to April 2024 period while your appeal or protest was still pending. After attorney fees of up to $18.3 million, the remaining funds are split among all qualifying class members.
Can I file bankruptcy to erase my Michigan unemployment overpayment?
Yes. Non-fraud unemployment overpayments can be discharged in bankruptcy. If the UIA determined you were overpaid but did not allege fraud, this debt may be eligible for discharge through a Chapter 7 or Chapter 13 bankruptcy filing. Consult a bankruptcy attorney to evaluate whether this makes sense for your specific situation.
What happens if I ignore UIA collection notices?
Ignoring UIA collection notices is risky. Interest accrues at 1% per month (12% annually), which means your balance grows quickly. The UIA can also intercept your state and federal tax refunds to recover overpayments. Additionally, a new UIA software system launching in summer 2026 may increase automated collection activity. Contact Michigan Legal Help or the UIA Advocacy Program for free assistance.
Is Michigan going to waive pandemic unemployment overpayments?
Michigan State Senator Darrin Camilleri has introduced legislation to waive pandemic-era overpayments, but the bill has not passed as of this writing. Do not rely on this legislation passing. Instead, take action now by filing your settlement claim, requesting a financial hardship waiver if you qualify, or exploring bankruptcy if the balance is unmanageable.
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