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

WASHINGTON — In a significant ruling, the U.S. Supreme Court announced on Friday that residents in Alabama who have been kept waiting for months on their unemployment claims due to the pandemic have the right to file lawsuits against the state.

The decision arrived as a result of a narrow 5-4 vote following the Alabama Supreme Court’s earlier dismissal of a case involving 21 individuals, many of whom faced lengthy delays in determining their eligibility for unemployment benefits. Some claimants reported that they never received any decisions, while others had their benefits abruptly discontinued without any explanation. One specific case highlighted was that of a man who was unable to meet an administrative deadline because he was on a ventilator, which resulted in his claim being dismissed, according to information presented in the lawsuit.

The state Supreme Court ruled that these individuals first needed to exhaust the state’s unemployment agency’s appeals process before pursuing legal action. However, the affected individuals contended that the appeals process was severely backlogged, thus hindering their ability to seek timely relief. They further argued that the Supreme Court has historically permitted lawsuits to proceed even when internal bureaucratic processes remain unresolved.

Support for the plaintiffs came from a diverse array of advocacy groups extending across various political viewpoints, including the American Civil Liberties Union and the U.S. Chamber of Commerce. They warned that imposing a requirement to finalize the appeals process before allowing lawsuits would jeopardize numerous other legal challenges, including those related to civil rights and disputes confronting state regulations. They emphasized that such a mandate could create significant obstacles for those seeking justice.

In reaction to the case, Alabama acknowledged the staggering rise in unemployment claims during the pandemic, which overwhelmed the state’s already under-resourced agency. However, the state also noted that many of the plaintiffs have since had their claims resolved, indicating a shift in the handling of unemployment issues as the agency adapts to the increased demand for services.