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Law360 (May 14, 2020, 4:04 PM EDT) -- Two self-employed single moms from Reno, Nevada, have hit the state with a proposed class action seeking to compel Nevada to join other states in offering unemployment benefits to gig workers during the coronavirus pandemic.
Iris Podesta-Mireles, a dancer and bartender, and Amethyst Payne, a massage therapist, sued Nevada's state labor agency and its leaders in state court Tuesday. They seek to represent all Nevada-based independent contractors who had to stop working due to the stay-at-home order issued March 15, a group which they believe encompasses at least 1,000 people, according to the complaint.
The suit accuses state leaders of failing to make the enhanced unemployment benefits authorized by the federal Coronavirus Aid, Relief and Economic Security Act available to Nevadans.
The CARES Act, signed March 27, allowed people who don't usually qualify for unemployment, such as independent contractors, the self-employed and gig workers, to apply for these benefits. It also authorized an extra $600 per week in unemployment benefits to each out-of-work person.
The Associated Press reports that Nevada is the only state that hasn't used the CARES Act to make unemployment benefits available to gig workers.
Through their lawsuit, Podesta-Mireles and Payne ask the Nevada state court to force the Nevada Department of Employment, Training and Rehabilitation to "immediately pay unemployment compensation ... to each and every member of the class."
They also seek to compel the agency to set up a website making it easy for Nevada independent contractors to sign up for unemployment benefits.
The lawsuit accuses the agency and two of its leaders, Heather Korbulic and Kimberly Gaa, of violating the CARES Act and denying due process to the proposed class members.
Attorneys for Podesta-Mireles and Payne and spokespeople for Nevada's labor agency did not immediately respond to requests for comment Thursday.
Podesta-Mireles and Payne are represented by Mark R. Thierman, Joshua D. Buck, Leah L. Jones and Joshua R. Hendrickson of Thierman Buck LLP.
Counsel information for the Nevada Department of Employment, Training and Rehabilitation, its director Heather Korbulic and its Employment Security Division administrator Kimberly Gaa could not be determined Thursday.
The case is Payne at al. v. State of Nevada et al. in the Second Judicial District Court of the State of Nevada in and for the County of Washoe. The case number could not be determined Thursday.
--Editing by Abbie Sarfo.
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