Supreme Court paves the path for a lawsuit regarding unemployment claims from the COVID-19 pandemic in Alabama.

WASHINGTON — Individuals who faced lengthy delays on their unemployment claims during the COVID-19 pandemic in Alabama can now proceed with legal action against the state, as ruled by the U.S. Supreme Court on Friday.

The decision, reached with a 5-4 vote, stems from a previous case where the Alabama Supreme Court dismissed a lawsuit involving 21 individuals. Some of these claimants waited several months for a determination on their eligibility for benefits, while others either never received any rulings or experienced abrupt halts in their benefits without explanation. Notably, one claimant’s application was thrown out after he failed to meet a deadline due to being on a ventilator, according to the lawsuit.

The Alabama Supreme Court initially rejected the lawsuit, asserting that the plaintiffs should exhaust the unemployment agency’s appeals process before seeking legal redress.

In their appeal, the group contended that the appeals process was immensely backlogged at that time, and referenced the Supreme Court’s longstanding position that legal action may be initiated prior to the completion of a bureaucratic procedure. They urged that requiring completion of the appeals stage before filing suit would jeopardize various other lawsuits, including those related to civil rights and business challenges against state regulations, citing support from multiple organizations across the political spectrum such as the American Civil Liberties Union and the U.S. Chamber of Commerce.

During the pandemic, Alabama struggled with one of the highest per-capita death rates in the nation and reported an overwhelming influx of unemployment claims that outpaced the resources of its already understaffed unemployment agency. However, the state noted that many of the claims made by the plaintiffs have since been addressed.