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

WASHINGTON — Individuals who faced lengthy delays in their unemployment claims during the COVID-19 outbreak in Alabama now have the right to take legal action against the state, as ruled by the U.S. Supreme Court on Friday.

The decision, delivered by a narrow 5-4 margin, follows a prior dismissal by the Alabama Supreme Court of a lawsuit brought forth by 21 claimants. Many of these individuals endured significant waits to determine their eligibility for benefits, with some experiencing abrupt discontinuation of their benefits without clear reason. One claimant cited in the lawsuit had his application thrown out after he failed to meet an administrative deadline due to being on a ventilator.

The Alabama Supreme Court had determined that the plaintiffs needed to navigate the unemployment agency’s appeals process before considering a lawsuit. However, the plaintiffs contended that during the time they sought justice, the appeals process was essentially in a state of paralysis, prompting the Supreme Court’s intervention as it has historically supported the notion that lawsuits can be initiated prior to the completion of administrative procedures.

Support for the plaintiffs emerged from a variety of organizational groups across different ideological lines, including the American Civil Liberties Union and the U.S. Chamber of Commerce. These organizations emphasized that forcing individuals to complete an appeals process before filing a lawsuit could jeopardize essential legal actions, impacting everything from civil rights claims to businesses challenging state regulations.

Alabama’s response highlighted the challenges faced during the pandemic, stating that the rapid influx of unemployment claims overwhelmed the already understaffed agency. Significantly, they noted that many of the claims brought forth by the plaintiffs have been addressed since the initial lawsuit was filed.