Legal Services Alabama Wins Landmark U.S. Supreme Court Case Against Alabama Department of Labor
By Sheila Duncan, Reporter
Legal Services Alabama (LSA) won a major U.S. Supreme Court case, Williams v. Reed, helping thousands of Alabamians who faced delays and unfair denials of unemployment benefits. The Court ruled in favor of LSA’s clients, affirming their right to challenge the Alabama Department of Labor’s long processing times.
At the U.S. Supreme Court, LSA partnered with Jenner & Block, with Adam Unikowsky as lead counsel. LSA’s team included Michael Forton, Farah Majid, Larry Gardella, and Chisolm Allenlundy. Many unemployment applicants faced long delays or were denied benefits without a hearing. Others, years later, were told to repay benefits they relied on during the pandemic due to ADOL’s overpayments. Those overpaid were threatened with tax refund garnishments through the Treasury Offset Program.
LSA filed the lawsuit in February 2022 against ADOL and Labor Secretary Fitzgerald Washington for mishandling unemployment funds. The Alabama Supreme Court rejected the case in June 2023, saying applicants should use the appeals process instead of suing. Since many applicants lacked fair and consistent appeal hearings, LSA took the case to the U.S. Supreme Court, representing over 20 plaintiffs.
The U.S. Supreme Court ruling is a major victory for Alabama residents. LSA’s plaintiffs lost their jobs during the pandemic through no fault of their own but faced endless hurdles from the Alabama Department of Labor. Many waited years for a decision, receiving only confusion and delays.
The Supreme Court recognized the hardship ADOL’s backlog caused unemployed workers during COVID-19. Many faced financial struggles, eviction, and difficulty meeting basic needs. Calling it a “catch-22,” the Court upheld their right to sue without waiting endlessly for ADOL to act.
The ruling lets LSA continue its lawsuit to push for important reforms in ADOL. LSA remains dedicated to improving claim processing, ensuring a fair appeals system, and supporting affected communities.
These cases will go back to Alabama courts, where LSA can challenge the delays, and while this ruling doesn’t directly impact those outside the lawsuit, it may help others challenge state agencies under federal law. Those facing unemployment issues can contact Legal Services for help with appeals and legal guidance.”
