A new lawsuit alleges that numerous insurers have violated Michigan law by systematically underpaying non-professional, in-home attendant care providers. Specifically, the class action claims the defendants unlawfully withheld the overtime pay that family members and non-agency caregivers deserve for the care they provide to injured accident victims.

Michigan’s No-Fault Act Provides Fair Compensation for In-Home Attendant Care

Michigan courts have routinely interpreted Michigan’s Automobile No-Fault Insurance Act to fully and fairly compensate policyholders for in-home attendant care provided by an injured person’s family, friends, and neighbors. This law allows an accident victim to employ family members or other private individuals to provide care so they can recover from their injuries at home rather than in an in-patient facility.

Michigan courts have also held that fair compensation for these workers is comparable to what professional agencies would charge for these services. Professional in-home care agencies are required by state and federal overtime laws to pay employees time-and-a-half rates for all the time they work once they’ve worked 40 hours in a week.

Systemic Undervaluation and Underpayment of Non-Professional Caregivers

In many cases, non-professional individuals providing in-home care for Michigan accident victims work more than 40 hours per week. This case illustrates how insurers routinely undervalue and underpay these workers, violating state law.

The lead plaintiff in the class action, Candace Boyer, has served as her mother’s primary in-home caregiver since the latter was injured in an auto accident in April 2024. Her mother was prescribed attendant care exceeding 40 hours per week, which her insurer approved. When Ms. Boyer received payment, she discovered her time was paid at a straight-time hourly rate. None of her overtime service was paid at time-and-a-half.

The parties agree the prescribed care was reasonably necessary and related to the motor vehicle accident and do not dispute the accuracy of the charge, adequacy of the supporting documentation, or timeliness of the request in question. The insurer honored the No-Fault claim, approved the attendant care benefits, and issued payment for Ms. Boyer’s mother’s care. However, it failed to compensate her at the appropriate rate for her overtime hours.

Holding Insurers Accountable for Underpayment of Earned Benefits

Ms. Boyer’s lawsuit levies claims against her mother’s insurer, Liberty Mutual Insurance Company, and additional insurers she alleges are controlled by the same entity or entities. The other named defendants are Safeco Insurance Company of Illinois, State Auto Mutual Insurance Companies, Liberty Mutual Group Inc., LMHC Massachusetts Holdings Inc., and Liberty Mutual Holding Company Inc.

The suit alleges that the insurers unlawfully established and implemented a policy of improperly valuing and compensating family-provided, non-agency attendant care benefits. This policy violates their obligation to correctly value overtime and pay a reasonable charge for such services. Because it is a systemic problem, this policy has likely caused similar damage to many other similarly situated caregivers.

If you, a loved one, or someone you know has been improperly underpaid for attendant care benefits related to a Michigan No-Fault Insurance claim, Sommers Schwartz can help. We are interviewing people to join the class action lawsuit. Please contact attorney Kathryn Milz for a free consultation.