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Iowa Unemployment Benefits Class Action Lawsuit Overview:
- Who: Plaintiffs Crystal Marciniak, Holly Bladel, Karla Smith, and Brian Wisch filed a class action lawsuit against Iowa Gov. Kim Reynolds and Workforce Development Director Beth Townsend.
- Why: Lawsuit claims Reynolds broke state law when she chose to end the state’s participation in federal programs that were providing extra unemployment benefits to residents.
- Where: The class action lawsuit was filed in Iowa federal court.
Iowa Gov. Kate Reynolds’ decision to end enhanced unemployment benefits for tens of thousands of unemployed residents violated state law, a new class action lawsuit states.
Lead plaintiffs Crystal Marciniak, Holly Bladel, Karla Smith, and Brian Wisch are hoping to become eligible for what could turn out to be hundreds of millions of dollars in unemployment aid denied to them since Reynolds dropped out of federal programs that provided extra unemployment on June 12.
Marciniak, Bladel, Smith, and Wisch are representing a Class of 55,000 Iowa residents being denied federal aid and are seeking a temporary restraining order requiring the state to resume participation in the federal programs in addition to receiving back-pay from the state with interest.
Iowa had been paying residents collecting unemployment $33 million per week when Beth Townsend, the state’s workforce development director, recommended the state put an end to the programs in May.
Reynolds agreed, citing a “severe workforce shortage,” while ending participation in federal programs that gave residents on unemployment an extra $300 per week. The programs also expanded the criteria for being eligible to receive unemployment.
Plaintiffs allege Reynolds’ decision violated the Iowa Employment Security Law, which states Iowa’s workforce agency “shall cooperate with the United States department of labor to the fullest extent consistent,” and shall “take such action, through the adoption of appropriate rules, regulations, administrative methods, and standards, as may be necessary to secure to this state and its citizens all advantages available” under provisions set out by the Social Security Act related to unemployment compensation.
An Iowa code on unemployment security and compensation, meanwhile, says unemployment in the state is “a serious menace to the health, morals, and welfare of the people of this state.”
Plaintiffs also describe how the pandemic – which has now been exasperated by the delta variant – hurt their job prospects and cut into their finances.
Reynolds spokesman Pat Garrett said the number of Iowa residents seeking employment at unemployment offices and joining the state’s labor force has increased since Reynolds announced she was cutting the extra benefits.
“This was not only the right decision, but also in accordance with the law and this lawsuit has no merit,” Garrett told the Associated Press.
Residents in several states have already filed class action lawsuits after their governors also chose to end participation in the federal programs, including Ohio, Florida, Texas, and Maryland. A total of 26 governors have taken similar steps in ending federal aid.
Are you an Iowa resident on unemployment that feels you are entitled to federal aid? Let us know in the comments!
The plaintiffs are represented by B.J. Stoltze, Jr. and Jeff Carter.
The Iowa Unemployment Benefits Class Action Lawsuit is Marciniak et al v. Iowa, Case No. unknown, in the U.S. District Court for the Southern District of Iowa.
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78 thoughts onIowa Gov. Kim Reynolds Sued For Ending Federal Unemployment Benefits Under New Action Lawsuit
The Iowa Workforce Development is awful to deal with and they remain a totally dysfunctional agency. You are on hold for over an hour, emails not returned,phone calls not returned, wait period after applying was 4 to 6 months. This is not an acceptable standard of operating for tax payers. But what was done about this inadequate business practice and treatment towards Iowa citizens….not a damn thing. As Governor Reynolds and Director Townsend judge the unemployed Iowans due to Covid19, I say they should look at their own failures and substandard performance. Stopping the Covid Unemployment benefits (which was promised to us on a federal level) was just plain cruel. A 30 day notice was insufficient time to secure adequate employment. Also, there is plenty of Economic research that does not support this decision as means to improve the economy. Meanwhile, news media outlets did not provide information to help unemployed Iowans. State Senators and Representatives did not reach out and help Unemployed Iowans. I am an American citizen and was promised by my President to receive assistance until September 4th 2021. Governor Reynolds was wrong to take this benefit away due to her personal politics. She did not operate in good faith. It is my hope that this is corrected as a matter of law.
I am self employed i have not found work and its not up to the governor to stop the unemployment she is never getting reelected i have not had any income since she cut it off its politics thats stupid i want to be part of law suit
I am self employed for 14 years, in recent years started being my mom’s caretaker after she got cancer and kidney disease. Business crashed in early 2020 because of the pandemic. Due to my mom’s conditions and the fact that I am giving her a kidney soon, I am still limited on work. If either of us gets Covid it could ruin our end goal of the kidney transplant we have been fighting towards since 2016.
If the state wanted to end benefits, it should have been done on a case by case basis. Some people have completely legitimate reasons for needing to be on unemployment during this worsening yet again pandemic.
Im a single father of 2 kids 13 and 5 year old who is autistic and non verbal. I have been in contact with the gov assistant and stated my concerns about ending unemployment because of special needs care issues pertaing to daycare as my son cannot wear a mask and daddy cares dont want the liability. Our governor is fully aware of the daycare shortage not to mention when it comes to kids with special needs! I know she knows this is an issue because as soon as she announced that she’s ending the benefits early for everybody no exceptions she also announced that she’s putting together a task force for childcare issues and they was going to report back in six weeks to advise her on what to do. So not only did our governor know about the issue she had no solutions for the issue and cut off the benefits anyway! Me and my kids will be homeless shortly because we have not been or have access to these benefits for quite some time now we was told September but she decided to go ahead and cut everybody off early. Not to mention I have been charged an overpayment fee of $5000 because they failed to put me in to the right program at the end of 2020. So not only did they take half of everything I had coming in 2021 the end of the benefits shortly after and I failed to pay me all of that money back. What I was told was is that that money wasn’t technically earned by me anyway so they’re not obligated to pay them back! The governor should have to reinstate these payments and pay back with interest because for some of us this literally is a potential life and death issue
My PUA unemployment was abruptly ended on June 12, 2021 as well. It has been a struggle to simply survive! I would like to be a part of this as well.
I was receiving unemployment as well as many thousands of other Iowans, I would really like to know what Reynolds did with the money that was to be given to the unemployed, and yes like so many others jobs maybe saying they’re hiring but are they really? Haven’t heard back from any of the employees that I’ve applied at not a word. Kinda funny Reynolds is quick to end the money and now so many of us are trying to figure out how to pay our bills while she sits back in luxury not caring about her Iowans, I hope something can be done and our funds can be returned to us as they should of never stopped in the first place Thank you for representing the 55,000 + Iowans who are entitled to the unemployment federal program funding.
My kids dad still has a job but due to my daughter having heart problems his boss don’t want him there hes a tile setter and nobody wants people in there house right now and I agree where is the money that’s supposed to be in people’s pockets for unemployment
I was a self employed individual on the federal program PUA & I was cute off on June 12 , 2021 also. My business has NEVER recovered from this pandemic & I have NOT found another job ,even though I’ve been looking. NO ONE will hire me !!! I want in on this lawsuit too !!!!
I am self employed and quailfied for pamdemic unemployment my Dr wrote a letter as with my medical conditions not to go looking for outside work and my ebay business has slowed as people have no money to buy from me
My name’s Bryan Stone they cut off my unemployment benefits June 12th and am still without a job I’ve put in over 60 applications and haven’t even gotten a call back I would like to get in on this lawsuit I have 3 kids
My name is Thomas VanDyke. My Iowa pandemic unemployment benefits were stopped abruptly around June 12 of this year. I would like to participate in the class action case