Class Action Accuses USAA of Failing to Include Overtime Pay for Family-Provided and Non-Agency Attendant Care Benefits 

A new lawsuit alleges that United Services Automobile Association (USAA) and two of its subsidiaries violated Michigan statutory law by systematically underpaying attendant care benefits. Specifically, the class action claims the defendants unlawfully withheld premium overtime pay for care provided to injured accident victims by family members or non-agency caregivers.

Compensable Expenses Under the Michigan’s No-Fault Act

According to Michigan’s Automobile No-Fault Insurance Act and court interpretations of the statute, in-home attendant care rendered by an injured person’s family, friends, and neighbors are considered compensable allowable expenses. This No-Fault benefit lets an accident victim hire outside help or employ family members to provide care, letting the victim recover from their injuries at home rather than in an in-patient facility.

The Facts of the Case

The lead plaintiff in the class action was involved in an August 2023 auto accident. Because of his injuries, USAA adjusted and paid his claim for personal injury protection (PIP) benefits. The plaintiff was prescribed attendant care that exceeded 40 hours per week, the threshold for overtime pay. The plaintiff’s father provided that care, regularly working more than 40 hours each week. USAA paid for all of the father’s time at a straight hourly rate when he was entitled to a time-and-a-half premium for his overtime hours. 

There is no dispute as to whether the prescribed care was reasonably necessary or related to the motor vehicle accident, nor is the accuracy of the charge, adequacy of the supporting documentation, or timeliness of the request in question. USAA did, in fact, honor the No-Fault claim, approve the attendant care benefits, and issue payment for the father’s care, but at an unreasonably low rate.

USAA’s policy of improperly calculating family-provided, non-agency attendant care benefits violates its obligation to correctly value overtime and pay a reasonable charge for such services.

We Are Holding USAA Accountable

If you, a loved one, or someone you know has been denied overtime pay for attendant care benefits under a Michigan No-Fault Insurance claim, Sommers Schwartz is interviewing people to join the class action lawsuit. Please contact attorney Kathryn Milz for a free consultation.