Settlement spurs significant reforms to Maryland’s broken unemployment system

December 16, 2022

We’re proud to announce the final settlement of our lawsuit against the Maryland Department of Labor concerning the administration of the state’s unemployment insurance system. The settlement makes critical reforms to address delays and interruptions in benefits payments and ensure fair process related to overpayments.

The Public Justice Center and Gallagher Evelius & Jones filed the lawsuit Gorres, et al v. Robinson just over a year ago on behalf of six Marylanders who experienced several problems with the unemployment system, including long delays in processing benefits applications; long and unexplained interruptions in benefits; and overpayment notices that required people to repay tens of thousands of dollars in benefits without an opportunity to be heard or appeal.

Under the settlement, the Maryland Department of Labor (MDOL) will make many improvements to the unemployment insurance system, including the following:

• Processing 92% of claims for unemployment insurance in no more than 21 days.
• Assigning an MDOL ombudsman to handle claims that take longer than 21 days.
• Improving the processes for applying, determining eligibility, correcting mistakes in applications, and resolving disputes.
• Limiting the suspension of benefits to 14 days when MDOL has questions about a person’s eligibility.
• Ensuring a fair process to investigate and inform claimants about alleged overpayments of benefits and providing the opportunity for people to appeal.
• Reimbursing eligible claimants who were sent overpayment notices during the COVID-19 pandemic and had to repay benefits to MDOL.
• Improving the online BEACON claims platform, allowing people to apply over the phone, providing the option to select a preferred method of communication, and enhancing customer service to claimants.

We’re proud to have represented the plaintiffs to achieve a major victory that will benefit tens of thousands of jobless workers in Maryland for years to come.

Thank you to the many people who worked on this case, including PJC attorneys Monisha Cherayil, David Rodwin, and Debra Gardner; former PJC attorneys Tyra Robinson and Sally Dworak-Fisher; PJC paralegal Emily Woo Kee and former paralegal Lena Yeakey; Gallagher Evelius & Jones attorneys Paul Caiola, Meghan Casey, and Sarah Simmons; and above all, the plaintiffs for their courage to stand up for their rights and the rights of others.