City of Detroit AFSCME Unfair Labor Practices Settlement

City of Detroit employees whom the American Federation of State, County and Municipal Employees represented between 2009 and 2013 may be eligible to claim a cash payment from a settlement.

The City of Detroit agreed to resolve claims the AFSCME brought on behalf of its members stemming from alleged unfair labor practices that were pending when the city filed for bankruptcy in 2013. After more than a decade of litigation and negotiation, eligible members can now claim their share of the settlement.

Who can file a claim?

Individuals must meet all of the following criteria:

• They were a City of Detroit employee AFSCME represented at any time from 2009 to 2013.
• They have not previously received payment for these specific unfair labor practice claims.

This includes both current and former employees.

Surviving spouses, children or other next of kin may file on behalf of a deceased class member.

How much can class members get?

Pro rata payment: Each eligible class member who submits the required forms will receive an equal share of the total proceeds from the settlement. The exact amount each person will receive depends on several factors:

• The total value of AFSCME’s claim as determined by the bankruptcy court
• The number of eligible claimants who submit valid claim forms
• The final amount realized from the sale of B-Notes (municipal bonds issued by the City of Detroit as part of the bankruptcy resolution)

How to claim a settlement payment

Eligible individuals must submit both a claim form and a W-9 tax form. The claim deadline is Nov. 20, 2025.

• Those who received a settlement notice with a paper claim form can complete and return it to the settlement administrator or file a claim online.
• Those who did not receive a settlement notice can download, print, complete and mail or email the non-list claim form to the settlement administrator or file a claim online.
• Those filing on behalf of a deceased member can download, print, complete and mail or email the deceased former employee claim form or file a claim online.

Settlement administrator's contact information: Epiq, PO Box 1234, Portland, OR 97208-1234, info@CityofDetroitBankruptcyClaim.com

What proof or documentation required to submit a claim?

• Those filing on behalf of a deceased member must provide documentation that establishes their next-of-kin status.
• Those who did not receive a settlement notice must provide supporting documentation to prove eligibility (such as employment records).

Payout options

• The settlement administrator will mail payment by check to the last address on file.
• It will report the payment to the Internal Revenue Service and issue a W-2.

Settlement fund information

The American Federation of State, County and Municipal Employees already paid legal fees and claims administration costs and will not recoup its legal expenses.

Important dates

• Deadline to file a claim: Nov. 20, 2025

When is the City of Detroit AFSCME bankruptcy payout date?

The settlement administrator will issue payments after it processes all claims and the AFSCME determines the value of the B-Notes and converts them cash.

Why did this settlement happen?

The settlement resolves claims that the City of Detroit committed unfair labor practices against American Federation of State, County and Municipal Employees-represented employees prior to filing for bankruptcy in 2013. When the city filed for bankruptcy, all pending legal actions, including AFSCME’s unfair labor practice charges, halted and needed to be addressed through the bankruptcy process.

AFSCME filed a proof of claim in bankruptcy court, and after years of litigation, reached a settlement to compensate affected employees.

Sources

1. Settlement website
2. Settlement FAQ
3. Claim forms