Supreme Court allows lawsuit regarding unemployment claims from COVID-19 pandemic in Alabama

In a significant ruling on Friday, the U.S. Supreme Court has determined that individuals who experienced extensive delays in their unemployment claims during the COVID-19 pandemic in Alabama are permitted to file lawsuits against the state. This 5-4 decision follows a prior dismissal by the Alabama Supreme Court of a lawsuit involving 21 claimants, some of whom faced prolonged waits for decisions regarding their eligibility for benefits. Others did not receive any decisions at all, and some had their benefits abruptly halted without any clear explanation, as indicated in court documentation. Notably, one claimant’s case was dismissed after he could not meet an administrative deadline while being on a ventilator, as per the lawsuit’s claims.


The Alabama Supreme Court had previously ruled that the plaintiffs were required to complete an appeals process through the unemployment agency before pursuing legal action. However, the group contested this requirement, asserting that the appeals process was significantly bogged down at that time. The U.S. Supreme Court has established that individuals can indeed initiate lawsuits even when a bureaucratic procedure is not fully completed.


This case garnered backing from a wide range of organizations, spanning various political viewpoints, including the American Civil Liberties Union and the U.S. Chamber of Commerce. They contended that mandating individuals to complete an appeals process prior to seeking legal recourse could hinder other lawsuits, encompassing civil rights issues and businesses’ disputes regarding state regulations, as articulated in their arguments.


Alabama, which experienced one of the highest per capita death rates in the nation during the COVID-19 crisis, asserted that the surge in unemployment claims overwhelmed an already understaffed agency. Nevertheless, the state noted that many of the claimants’ issues have been resolved in the time since the initial chaos of the pandemic began.