Legal Services Alabama (LSA) has achieved a groundbreaking victory at the U.S. Supreme Court in the case of Williams v. Reed, securing justice for thousands of Alabamians who faced systemic delays and unjust denials in accessing unemployment benefits. In a ruling that underscores the fundamental right to due process, the Court sided with LSA’s clients, affirming their ability to challenge the Alabama Department of Labor’s (ADOL) extensive delays in processing unemployment claims.
At the U.S. Supreme Court, LSA’s team was joined by Jenner & Block, with Adam Unikowsky serving as lead counsel for the plaintiffs. The LSA high impact team included Michael Forton, Director of Advocacy; Farah Majid, Assistant Director of Advocacy; Larry Gardella, Volunteer Attorney; and Chisolm Allenlundy, Staff Attorney. Many unemployment applicants faced extreme delays in receiving their benefits, while others were denied early and given no hearings. Additionally, a significant number of recipients who relied on unemployment compensation to survive the pandemic were years later asked to repay large sums of their benefits back to ADOL – the institution responsible for the over payments. Applicants who were overpaid received threat of being placed in a Treasury Offset Program that would garnish any potential tax refunds to cover the overpayments issued by ADOL.
Filed in February 2022, 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 should make use of the appeals process in lieu of a lawsuit. In the absence of access to consistent and quality appeals hearings for unemployment applicants, LSA in turn appealed the decision to the U.S. Supreme Court. Over 20 plaintiffs were represented by LSA in the suit.
According to Majid, “Today’s decision from the United States Supreme Court is very significant for Alabama residents. Our plaintiffs were individuals who were unemployed during the pandemic through no fault of their own. They faced administrative hurdles and burdens from the Alabama Department of Labor at every turn. Most of them waited years for a hearing or a decision and received nothing but confusing communication- if that.”
The Supreme Court’s decision acknowledges the critical impact that ADOL’s backlog had on unemployed workers during the COVID-19 pandemic. Through no fault of their own, many individuals were left in financial limbo—facing eviction and struggling to afford basic necessities. The Court recognized the procedural failings as a “catch-22,” reaffirming the right of affected individuals to seek legal recourse without being forced to wait indefinitely for ADOL to act.
“I am highly gratified that the Supreme Court recognized that Alabama may not bar unemployment benefits claimants from suing in state court to seek redress under federal law for administrative delays in processing their claims,” says Unikowsky.
The ruling now allows LSA to litigate its original lawsuit, with an ultimate goal of critical reforms within ADOL. LSA will continue to work towards having the agency process claims more efficiently and provide a fair and accessible appeals process. LSA remains committed to working alongside impacted communities to ensure these changes are implemented and that all unemployment applicants receive timely and just determinations.
Next steps are coming. “The case for our specific plaintiffs will now be remanded to the Alabama courts, and we will be able to proceed with our lawsuit challenging the delays in the process. It will not directly impact anyone not part of the suit. Although the U.S. Supreme Court’s holding was narrow, it could impact other people who need to challenge state agencies under federal law. People having issues with unemployment can contact LSA for help. Our attorneys may be able to assist them with their individual cases and navigating the appeal process,” says Majid.
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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.
