AL – On October 7, 2024 , the U.S. Supreme Court will hear a critical case regarding unemployment benefits filed by Legal Services Alabama (LSA), Alabama’s only statewide provider of civil legal aid. The case will be argued on behalf of LSA’s clients by Adam Unikowsky, a pro bono attorney with the firm of Jenner Block, LLP. The lawsuit addresses systemic issues within the Alabama unemployment benefits system that left countless qualified applicants without the financial support they were entitled to during the COVID-19 pandemic.

The lawsuit was filed in February 2022 against the Alabama Department of Labor (ADOL) for its excessive backlog of unemployment determinations and the resulting controversies it created for newly unemployed Alabamians laid off at the pandemic’s peak. The backlog led to severe consequences for many individuals and families, including evictions, inability to pay for necessities, and increased mental health struggles.

Many unemployment applicants faced extreme delays in receiving their benefits, while others were denied and given no options to appeal. Additionally, many recipients who relied on unemployment compensation to survive the pandemic were years later asked to repay large sums of their benefits to ADOL – the institution responsible for the overpayments. Overpaid applicants were threatened to be placed in a Treasury Offset Program that would garnish any potential tax refunds to cover the overpayments issued by ADOL.

The original suit against ADOL and Labor Secretary Fitzgerald Washington over the mismanagement of unemployment funds was rejected by the Alabama Supreme Court in June 2023. The state court ruled that applicants needed to wait and proceed through the appeals process and held that no remedy was available for the delay. Without access to consistent and quality appeals hearings for unemployment applicants, LSA had to appeal the decision to the U.S. Supreme Court.

The LSA suit against ADOL centers on the fundamental right to timely access to unemployment benefits and argues that the backlog violates constitutional protections and statutory obligations.

A ruling in this matter is anticipated for next spring. LSA advocates are currently representing over 20 plaintiffs who experienced unjustified financial crises due to the actions of ADOL.

Goal: ADOL processes claims in reasonable time frame

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The LSA law firm provides free, client-centered, civil legal advocacy to low-income Alabamians and collaborates with others across the state and nation to find solutions to systemic issues caused by poverty and social justice inequities. LSA is one of the preeminent legal aid organizations in the country in bridging the civil justice gap through its recognized commitment to racial, social, and economic justice and support of a talented, diverse, and innovative staff.

LSA offices are located in Anniston/Gadsden, Birmingham, Dothan, Huntsville, Mobile, Montgomery, Selma and Tuscaloosa. LSA offices handle civil cases only. Each office has lawyers licensed to practice in Alabama and other staff who know how to help low-income people resolve their legal problems.