If you worked at a Macy’s store in West Virginia and signed up for voluntary benefits like accident, critical illness, or hospital indemnity coverage, a newly filed class action may directly affect you. The lawsuit raises serious questions about whether the premiums deducted from your paychecks were quietly inflated to pay oversized commissions to an outside insurance broker – and whether the retailer failed in its legal duty to protect its own employees.
At New Law Office in Beckley, we represent workers across West Virginia whose hard-earned wages may have been eroded by employer or broker misconduct. Here is what the case alleges, who may be liable, and what you can do if you believe you were harmed.
What Happened
According to a complaint filed on October 3, 2026 in the U.S. District Court for the Southern District of New York, a former operations supervisor at a Macy’s location in West Virginia is pursuing a class action against Macy’s and three affiliated brokerage entities tied to Aon. The suit alleges that between 2019 and 2024, approximately $13.2 million in commissions and fees were extracted from premiums that Macy’s employees paid out of their own paychecks for voluntary benefits coverage offered through the Macy’s, Inc. Enhanced Benefits Program.
The filing alleges those commissions averaged roughly 36.7% of every premium dollar – meaning that, according to the complaint, about 37 cents of each dollar withheld from employee wages for these benefits allegedly went to the broker rather than to actual insurance coverage. For comparison, the complaint cites publicly available filings showing other large employers paid broker compensation in the range of roughly 3% to 9% for similar products.
The lawsuit also alleges that enrollment materials given to seasonal, part-time, and hourly workers described the coverage as being offered at “discounted group rates,” even though – according to the filing – the embedded commissions pushed costs well above market benchmarks. None of these allegations have been tested in court, and no ruling on the merits has been issued.
Who May Be Liable
The class action targets two general categories of defendants, and workers in West Virginia should understand how each role may expose a party to potential liability under federal benefits law:
- The employer and plan sponsor. Macy’s, as the sponsor of the Enhanced Benefits Program, could be liable if a court finds it failed to act in the sole interest of plan participants when selecting, monitoring, and compensating the plan’s broker.
- The insurance broker and affiliated entities. The Aon-affiliated brokerage entities named in the suit may be liable if they are deemed functional fiduciaries or knowing participants in alleged breaches, or if their compensation is found to be unreasonable under federal law.
- Carriers (as non-parties). Allstate- and Aflac-affiliated carriers are referenced in the complaint as the underwriters at different points, but are reportedly not named as defendants.
Again, these are allegations. Whether any party is ultimately liable will depend on how the court rules.
Legal Theories That May Apply
For West Virginia workers who paid into these programs, several overlapping legal theories could support a claim:
- ERISA breach of fiduciary duty. The federal Employee Retirement Income Security Act requires employers that sponsor benefit plans to act prudently and loyally. Allowing allegedly excessive broker compensation may violate those duties.
- ERISA prohibited transactions. Certain arrangements between a plan and a service provider can be prohibited unless the compensation is “reasonable.” Commissions far above market benchmarks could trigger this theory.
- Failure to monitor. Plan sponsors have an obligation to monitor the parties they appoint. A failure to competitively bid or re-evaluate broker compensation over years may support a claim.
- Misrepresentation in plan communications. Describing coverage as offered at “discounted group rates” when premiums allegedly carried inflated commissions could support claims for misleading plan communications.
- Co-fiduciary and knowing participation liability. A broker who allegedly knows a plan sponsor is breaching its duties, or who exercises discretion over plan assets, may itself be treated as a fiduciary under ERISA.
Damages Victims May Recover
Under ERISA, remedies in cases like this are typically equitable rather than tort-based, but they can be meaningful. Workers who are confirmed class members may potentially recover:
- Restoration of plan losses – the difference between what was paid and what reasonable compensation would have looked like. In this case, the complaint seeks approximately $9.6 million in alleged excess compensation.
- Disgorgement of profits – forcing the broker to return commissions it allegedly should not have received.
- Injunctive and structural relief – such as appointing an independent fiduciary, requiring competitive bidding, and correcting allegedly misleading plan materials.
- Attorney’s fees and costs if the case succeeds.
ERISA generally does not permit recovery of traditional “pain and suffering” or punitive damages. However, if related state-law claims (such as consumer protection or fraud theories) are available on separate facts, additional categories could potentially come into play. A lawyer can evaluate whether any state-law theories apply to your specific situation.
Evidence That Strengthens a Case
If you worked at a Macy’s location in West Virginia and enrolled in accident, critical illness, or hospital indemnity coverage during the relevant years, the following documentation may help preserve your rights:
- Pay stubs showing voluntary benefit deductions.
- Enrollment materials, benefits guides, and “Benefits at a Glance” summaries – particularly any that reference “discounted group rates.”
- Summary Plan Descriptions and annual notices.
- Emails or portal screenshots describing the plan or carrier changes between 2019 and 2024.
- Any claims you filed and the payouts you received.
- Form 5500 filings and other publicly available plan documents (your attorney can help obtain these).
Witness statements from co-workers, internal HR communications, and expert analysis of commission benchmarks also play significant roles in cases of this type.
What to Do Next
If you believe you were affected, protect yourself with a few conservative steps:
- Preserve your records. Gather pay stubs, benefits paperwork, and any communications about the voluntary benefits program. Do not throw anything away.
- Document your enrollment history. Note the years you were enrolled, the products you selected, and the amounts deducted.
- Be cautious with insurers and HR representatives. You are not required to give recorded statements or sign releases, and doing so without counsel may limit your rights.
- Mind the deadlines. ERISA has strict limitations periods, and some claims can be lost if not raised in time.
- Talk to an experienced attorney. A lawyer can evaluate whether you may be a class member, whether to opt in or stay in, and whether you have additional individual claims.
If you or a loved one has been harmed by negligence or wrongdoing in West Virginia, contact New Law Office in Beckley for a free, confidential consultation. We work on contingency – you pay nothing unless we win your case. Call (304) 355-5565 or visit https://newlawoffice.com to speak with a member of our team.
Frequently Asked Questions
Can I sue Macy’s if I bought voluntary benefits as a West Virginia employee?
You may be eligible to participate in the pending class action if you paid premiums for accident, critical illness, or hospital indemnity coverage through the Macy’s benefits program during the relevant years. Eligibility depends on the class definition the court ultimately certifies. An attorney can review your records and advise whether you fit within the proposed class.
How do I know if I was overcharged for my voluntary benefits?
According to the complaint, broker commissions allegedly averaged about 36.7% of premiums, compared to roughly 3% to 9% at other large employers. If deductions came out of your paycheck for these products between 2019 and 2024, you may have been affected. Only a detailed review of plan documents and pay records can confirm this.
What is ERISA and why does it matter in this case?
ERISA is the federal law that governs most employer-sponsored benefit plans. It requires employers and other fiduciaries to act loyally and prudently when managing those plans. The lawsuit alleges Macy’s and its broker fell short of those duties, which is why federal court is the forum for the dispute.
How long do I have to file a claim?
ERISA claims are subject to strict time limits, which can vary depending on when the alleged misconduct occurred and when it was discovered. Waiting too long may bar your claim entirely. If you think you were affected, it is important to speak with an attorney as soon as possible.
Will I have to pay anything to join a class action?
In most ERISA class actions, individual class members do not pay out of pocket. Attorneys typically work on a contingency basis, meaning fees come only from a recovery if the case succeeds. New Law Office handles qualifying cases on contingency – you pay nothing unless we win.
What if I no longer work at Macy’s – can I still participate?
Yes. Former employees who paid into the voluntary benefits program during the covered years may still be eligible, depending on how the class is defined. Keep any old pay stubs, benefits guides, or enrollment confirmations you can find.
Does it matter that the lawsuit was filed in New York instead of West Virginia?
No. ERISA is federal law and permits suits in jurisdictions tied to the plan or employer. West Virginia workers can still potentially participate as class members or witnesses even though the case is pending in the Southern District of New York.
Can New Law Office help me even if I’m not sure I have a claim?
Yes. A free consultation is designed exactly for that – to help you understand whether you may have been harmed and what your options are. There is no obligation, and we will give you a straight answer about your rights.
Original reporting: insurancebusinessmag.com.
