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ap photo In this 2020 file photo, Beth Townsend, Director of Workforce Development for Iowa, speaks at a press conference at the State Emergency Operations Center in Johnston. A lawsuit against Townsend and Iowa Governor Kim Reynolds on August 20 challenges their decision to cut enhanced federal unemployment benefits for up to 55,000 state residents.
IOWA CITY – Proposed class action lawsuit claims Iowa Gov. Kim Reynolds’ decision to cut improved unemployment benefits for tens of thousands of residents violated state law, asks court to restore eligibility .
The lawsuit, filed this week in Polk County, aims to make claimants eligible for hundreds of millions of dollars in unemployment assistance that have been denied them since Iowa abandoned federal unemployment benefit programs. pandemic on June 12.
Reynolds, a Republican, announced in May that Iowa would end its participation in federal programs that provided an additional $ 300 per week to normal unemployment benefits and expanded eligibility criteria. She cited a “Serious labor shortage”, saying the move would encourage people to return to work.
The lawsuit claims the ruling violated a law that says the Iowa Workforce Agency “Must cooperate with the United States Department of Labor to the greatest extent possible” necessary for “To assure this State and its citizens all the advantages available” under federal unemployment programs.
Several Des Moines attorneys, including BJ Stoltze, Jr. and Jeff Carter, have filed a lawsuit, which notes that Iowa law calls for economic insecurity caused by unemployment “A serious threat to health, morals and well-being” residents.
“The legislature decided that this was a serious threat. Unfortunately, the governor seems to treat it as if it is a disadvantage for big companies ”, said Stoltze.
Carter said lawyers heard from dozens of economically struggling Iowans after they were initially promised by the state that they would be eligible for the aid until early September.
Reynolds spokesman Pat Garrett said the governor believed “We cannot continue to pay able-bodied people to stay at home”. He said the number of people seeking employment at unemployment offices and participating in the state’s workforce has increased since May.
“It was not only the right decision, but also in accordance with the law and this trial has no basis”, he said.
Reynolds is one of 26 governors, mostly Republicans, who have taken similar action, before the September 6 date when federal aid will expire.
Lawsuits have been filed challenging the cuts in several of those states, including Ohio, Texas and Florida, and have had mixed success so far.
Amended Iowa lawsuit filed Wednesday names four plaintiffs, estimates group could involve 55,000 illegally private people “Vital benefits”.
They include claimants who received the weekly supplement of $ 300; who were eligible for unemployment after exhausting 26 weeks of state benefits; and others who were eligible if they had not been able to work due to COVID-19.
Iowa was paying $ 33 million a week into the programs when Iowa’s director of workforce development Beth Townsend recommended ending them in May. The lawsuit names Reynolds and Townsend as defendants.
The Century Foundation, a progressive group, estimated that $ 337 million in benefits is at stake for Iowa claimants during the 12-week period.
The lawsuit describes how the pandemic affected plaintiffs’ employment prospects before the cut hurt their finances, as the Delta variant causes a new wave of hospitalizations and deaths in Iowa.
These include Crystal Marciniak, 32, mother of Garner, who took time off from her job as a pig care manager to undergo carpal tunnel surgery in March 2020 and her return to work was delayed by the pandemic . She was using the allowance to pay for food, shelter and items for her two children, and has used up her savings since June.
Another is Holly Bladel, 64, of Clinton, who lost her job at a gas station after taking time off to care for an elderly relative at risk of COVID-19 and was unable to return to the job.
Karla Smith, 67, of Pleasantville, worked at a retired Casey’s convenience store to make ends meet, but resigned in March 2020 after a doctor said her pre-existing lung condition made it unsafe for her to work in the trade Retail.
Brian Wisch, 37, from Ankeny was laid off by Collins Aerospace in May 2020 due to lack of demand caused by the pandemic. The company told him he could be rehired when the company rebounded, but he’s not sure that will happen and has looked for a job.
The lawsuit seeks a temporary restraining order requiring the state to resume participation in the programs and an order requiring the state to repay benefits owed with interest.
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