Clark Kauffman is deputy editor at Iowa Capital Dispatch, where this article first appeared.

A potential class-action lawsuit claims Governor Kim Reynolds’ refusal to pay pandemic-related jobless assistance to 30,000 Iowans was unlawful and deprived those individuals of “life-sustaining benefits.”

Lawyers for Karla Smith of Pleasantville and Holly Bladel of Clinton have filed a lawsuit in U.S. District Court for the Southern District of Iowa claiming the two women and thousands of other Iowans were illegally denied unemployment benefits in 2021 due to the actions of Reynolds and Iowa Workforce Development Director Beth Townsend.

The lawsuit alleges Reynolds and Townsend violated Iowa’s Employment Security law, which requires the state to “cooperate with the United States Department of Labor to the fullest extent” and make available to Iowans “all advantages available under the provisions of the Social Security Act that relate to unemployment compensation.”

“We want to get Iowans back to work!” Governor Kim Reynolds tweeted on October 20, touting a new business grant program financed through the American Rescue Plan, which she used to denounce as a “blue state bailout.”

But there was more: “We also announced a new reemployment case management system to refocus Iowa’s unemployment system and ensure Iowans can get back to work as quickly as possible.”

That’s a creative way of saying Reynolds plans to push more Iowans into available jobs by making it harder for them to collect unemployment benefits. However, the policy changes the governor announced at her latest news conference won’t address several important reasons many Iowans remain out of the workforce.

Iowa Workforce Development Director Beth Townsend acknowledged on April 30 that Iowans who refuse to go back to their jobs because of unsafe working conditions will not automatically be excluded from receiving unemployment payments.

However, she warned that “it takes more than a mere assertion by the employee” to qualify for benefits under those circumstances.

The scale of the economic collapse caused by the novel coronavirus (COVID-19) pandemic is beginning to come into view. The national economy may contract by 40 percent in the second quarter, with unemployment reaching 20 percent. One nationwide survey published this week indicated that 33 percent of voters–including 52 percent of respondents under age 45–have either lost their job, had work hours reduced, or been furloughed.

Iowa’s latest unemployment figures show yet another record number of new claims.

The novel coronavirus (COVID-19) outbreak is causing massive economic disruption as many workplaces close and consumers scale back their normal activities. Economists are predicting a “sharp increase in the unemployment rate nationally.”

The state agency that handles Iowa’s unemployment payments has been receiving as many new claims in a day as they would normally receive “in a busy month.”

Governor Kim Reynolds appointed former Iowa House Speaker Kraig Paulsen as director of the Iowa Department of Revenue on February 22, only six weeks after she had named Adam Humes to lead the agency. A late Friday afternoon news release did not explain the reason for the change, saying only that Humes “has decided to pursue other opportunities.”* Paulsen will start work this coming Monday. Leadership transitions at state agencies typically are weeks or months in the making.

Humes’ predecessor, Courtney Kay-Decker, also left under odd circumstances. Appointed by Governor Terry Branstad in 2011, she sounded excited to continue to lead the department after the 2018 election. But in early December, Kay-Decker announced her resignation, effective at the start of the new year.