PROVIDENCE – The American Civil Liberties Union of Rhode Island has filed a class-action lawsuit against the R.I. Department of Labor and Training in U.S. District Court over frozen unemployment insurance payments, the organization announced on Wednesday.
The DLT had previously frozen payments to certain individuals following a federal investigation into unemployment insurance fraud.
The lawsuit claims that the DLT had not provided notice to individuals who were legitimately eligible for unemployment insurance prior to halting payments. The lawsuit also alleges that those impacted by the freeze were not always able to ascertain a reason for the freeze via phone calls or emails to the DLT.
The ACLU is seeking a reversal of freezes of the benefits and retroactive pay for those who have not been receiving their benefits. The group also is seeking to stop the DLT from freezing benefits without adequate written notice to recipients, as well as relief for litigation costs and other relief, if it is determined to be proper.
The DLT in a statement responded, “Since the beginning of this pandemic, the department has received an unprecedented number of unemployment claims and we have been working relentlessly to ensure that Rhode Islanders are receiving payments as quickly as possible.
“As is the case in many other states, the pepartment has also seen instances of fraudulent activity. We take seriously our responsibility to protect taxpayers and ensure the integrity of the Unemployment Insurance Trust Fund,” the department said. “The department temporarily pauses payments on accounts associated with suspected fraudulent activity until an identity-verification process can be completed. Individuals whose payments have been paused receive a phone call from the department.”
The DLT also urged those who have had their payments paused to visit its website and report the issue, here.
The lead plaintiffs in the case are Steven Hanson, of Warwick, and Randall Pelletier, of Pawtucket. The lawsuit named DLT Director Scott R. Jensen as a defendant.
(ADDS grafs 5 and 6 with DLT response).
