Louisiana residents who say they were unfairly denied unemployment benefits during the coronavirus pandemic have filed a federal class-action lawsuit that alleges the Louisiana Workforce Commission (LWC) mishandled thousands of cases.
Plaintiffs filed the claim late last month in the Middle District of Louisiana. The lawsuit alleges the plaintiffs have faced financial uncertainties and hardships as a result of failures of the state’s unemployment insurance system, even though the federal government has provided billions of dollars to help laid-off Louisiana residents in the form of the Coronavirus Aid, Relief and Economic Security (CARES) Act.
The lawsuit seeks a restraining order to stop the commission from delaying the processing of unemployment claims that have been pending for more than 30 days prior to the execution of such an order.
“I think it’s incredibly important because you have tens of thousands, maybe even hundreds of thousands, of people affected, and these are the people the CARES Act was intended to protect,” Wendy Manard, the New Orleans attorney representing the plaintiffs, told the Louisiana Record.
Many people throughout the state, including small business owners, service industry employees, plant workers and construction workers, have been affected by the benefit delays and difficulties in filing appeals, according to Manard.
“This was supposed to be a way for these people to buy groceries and keep the lights on,” she said. “The LWC has had more than a year to make this process efficient and better, and they haven’t gotten better.”
The federal court has indicated that the case represents a matter of great interest to the people of Louisiana and that it would be expedited, Manard said.
The LWC has been inconsistent in awarding claimants back pay, and many residents have been unable to communicate with the agency by phone or online, as a result of computer system maintenance issues, the complaint says.
Despite the unprecedented nature of the pandemic and the pressures it has placed on state governments, it’s not reasonable that the LWC’s processing problems have persisted for a year, according to Manard.
“I can understand that in the first couple of months, but it’s been almost a year for the LWC to get this process streamlined,” she said, adding that some unemployed residents have gone homeless or have had their cars repossessed.
Due to the state’s experience with crises such hurricanes, state officials have developed systems and protocols for getting relief to people quickly, according to Manard.
“There’s no excuse for how claims are being mishandled at this point,” she said.