Virginia’s Sluggish Unemployment Payments Hurt Vulnerable Residents, Class Action Lawsuit Claims

Unemployed Virginians have slammed the state’s employment commission with a class action lawsuit alleging “gross failures” in getting desperately-needed unemployment benefits to residents during the pandemic.

In a class action lawsuit filed Thursday in a Virginia federal court, Plaintiffs Ashley Cox, Emily Dimond, Penny Williams, Amber Dimmerling and Lenita Gibson allege the Virginia Unemployment Commission violated the constitution and federal and state laws in its processing of unemployment benefits. 

The trio allege the unemployment benefits system failed tens of thousands of Virginians when they desperately needed money. Claims for benefits were either left languishing for months without any decisions made, or suddenly cut off without notice, the class action lawsuit alleges. The alleged failures of the state commission also impacted people’s federal benefits.

“Making matters worse, these unconscionable bureaucratic failures have not just blocked access to regular state unemployment benefits,” the class action states. 

“Significant federal aid – including additional federal payments of up to $600 per week – has also been blocked, because those benefits are to be paid through the state unemployment system.”

The group says the commission’s delays hurt Virginia’s most vulnerable populations, and had a disproportionate impact on Black Virginians, who made up 45 percent of those applying for unemployment benefits by June 2020.

The unemployment system’s role is to provide cash assistance to workers as quickly as possible after they lose their jobs, the claim states.

However, Virginia has only established eligibility in 2 percent of cases in a timely manner, it alleges, saying Virginia ranks 53rd out of 53 U.S. jurisdictions in determining basic eligibility issues, according to U.S. Department of Labor data.

The class action seeks to represent two Classes: one Class of residents who applied for benefits but have not received them, and a second Class of residents who were paid benefits but then had them abruptly stopped without explanation. 

“There are thousands in a similar posture,” the class action alleges.

The class action lawsuit alleges the commission violated the Social Security Act, the individuals’ 14th amendment right to due process and the Virginia Unemployment Compensation Act. Virginia Employment Commissioner Ellen Marie Hess is the sole defendant named.

The group is seeking declaratory and injunctive relief, payment of unemployment benefits, a prohibition against further alleged violations of law, attorneys’ fees and costs and a jury trial.

This is not the first state commission to be sued for slow rollout of unemployment benefits. In February, a proposed settlement was reached in a class action lawsuit that claimed people seeking Oregon unemployment benefits during the coronavirus pandemic faced long delays in receiving their payments.

What do you think of this class action lawsuit against Virginia’s employment commission? Let us know in the comments! 

The plaintiffs are represented by Craig C. Marchiando, Leonard A. Bennett and Amy Austin of Consumer Litigation Associates PC, Steven Fischbach of the Virginia Poverty Law Center, Brenda Castaneda, Patrick Levy-Lavelle and Granville Warner of the Legal Aid Justice Center, Daniel Turczan of Legal Aid Works and Kristi Cahoon Kelly, Andrew J. Guzzo and Casey S. Nash of Kelly Guzzo PLC.

The Virginia Unemployment Benefits Class Action Lawsuit is Ashley Cox et al. v. Ellen M. Hess, Case No. 3:21-cv-00253, in the U.S. District Court for the Eastern District of Virginia.

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