WASHINGTON — Individuals in Alabama who faced delays of several months concerning their unemployment claims during the COVID-19 pandemic now have the option to take legal action against the state, as determined by a recent U.S. Supreme Court ruling.
In a narrow 5-4 decision, the Supreme Court intervened after the Alabama Supreme Court dismissed a lawsuit brought by a group of 21 plaintiffs. These individuals experienced significant wait times regarding their eligibility for unemployment benefits, while some did not receive any decisions on their claims or faced abrupt termination of their benefits without clear rationale, as detailed in the filed documentation. Notably, one individual had his claim rejected because he was unable to meet an appeals deadline since he was on a ventilator, according to the lawsuit.
The state’s highest court had previously ruled that the plaintiffs needed to exhaust all options through an appeals process within the unemployment agency before initiating a lawsuit. However, the plaintiffs appealed this ruling, arguing that the appeals process was effectively paralyzed at that time. They cited a longstanding legal principle that allows for lawsuits to proceed even while an administrative process is not yet completed.
Support for the plaintiffs’ case came from various groups representing a range of political ideologies, including the American Civil Liberties Union and the U.S. Chamber of Commerce. They contended that mandating individuals to complete the appeals process prior to litigation could negatively impact other legal actions, such as those related to civil rights or business disputes with state regulations.
Alabama’s unemployment agency has stated that it was inundated with an unprecedented volume of claims during the pandemic, which overtaxed its limited staff. Additionally, the agency noted that many claims raised by the plaintiffs have been addressed in the time since their original filing.
