LANSING, Mich. (Michigan News Source) – Michigan will start distributing $20 million to workers falsely accused of unemployment fraud.

Last week, the Michigan Court of Claims approved a settlement that resolves a class-action lawsuit filed against the Michigan Unemployment Insurance Agency (UIA) in 2015. Michigan Attorney General Dana Nessel and the law firm Pitt, McGehee, Palmer, Bonanni & Rivers reached the agreement in October 2022.

MORE NEWS: Michigan-based Dow to Cut 2,000 Employees from Workforce

Payments are estimated to go out between Aug. 19 and Sept. 8.

Workers sued the state after it accused 40,000 people of fraud between 2013 and 2015. The UIA system flagged thousands of accounts, then garnished wages and seized tax refunds.

Only claimants who meet the definition of the settlement class will be eligible for money from the state.

A notice of settlement will be mailed to known class members on Feb. 1.