Labor group sues over $500,000 unemployment benefits claim
Labor group claims it is owed $500 million in unemployment benefits.
The American Federation of Government Employees and the National Employment Law Project filed the lawsuit Monday in U.S. District Court in San Francisco, arguing that the federal government owes the state unemployment benefits it paid to companies for services that were never rendered.
The group alleges that the payments are owed to the states of Washington, Alaska, Oregon and Idaho.
The lawsuit seeks to stop the federal agency from discharging unemployment benefits to companies that are no longer subject to a federal unemployment program.
The agency has said that it plans to complete a review of the claims and that it could take a year or more to complete it.
A spokesman for the U.s.
Labor Department’s Office of Employment Policies, which is overseeing the unemployment claims, declined to comment on the lawsuit.
The claims, which cover companies that were involved in a series of events during the Great Recession, come as the unemployment benefits are scheduled to expire in about a year.
The Labor Department said it would pay the group $3 million in restitution to compensate for the costs of the lawsuit and to cover any court costs.
The group’s attorney, Stephen P. Sanger, said in a statement that he was confident that the lawsuit would be successful and that the department would pursue the claims with the utmost seriousness.
The state of Washington’s unemployment benefits will expire in January 2021.
The Oregon unemployment benefits have been set to expire this month.