Plaintiff alleges NC State Agency mishandled unemployment benefits amid racial discrimination

New Bern Federal Courthouse
New Bern Federal Courthouse
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A legal battle is brewing in North Carolina as a resident takes on a state agency over alleged mishandling of unemployment benefits and racial discrimination. Kimarlo Ragland, the plaintiff, filed a complaint against the NC Division of Employment Security in the United States District Court for the Eastern District of North Carolina on January 12, 2026. The lawsuit accuses the defendant of multiple infractions, including intentional infliction of emotional distress, negligence, harassment, and racial discrimination.

The case centers around Ragland’s claims that the NC Division of Employment Security wrongfully accused him of owing an invalid debt related to unemployment benefits he received during the COVID-19 pandemic. According to Ragland, he was initially deemed eligible for these benefits by two separate adjudicators but later received a “notice of appeal” packet from the agency nine months after his employment separation and well beyond the appeal deadline. He argues that this notice omitted crucial evidentiary documents that supported his eligibility.

Ragland contends that his due process rights were violated when he was denied an in-person hearing to confront witnesses who provided testimony via telephone conference. Despite requesting a postponement until in-person hearings resumed following lifted pandemic restrictions, his request was denied. The hearing officer ultimately reversed the prior decision granting him benefits, creating what Ragland describes as an unlawful overpayment debt.

Throughout this ordeal, Ragland has fought tirelessly to have this alleged debt waived due to what he calls “unique circumstances.” He sought judicial review in Vance County Civil Superior Court and succeeded in having his petition acknowledged—a rare feat against such agencies. However, despite being declared the prevailing party at one point, Ragland continues to face challenges as subsequent rulings affirmed decisions against him without thorough consideration or written opinions.

In addition to seeking redress for what he sees as procedural injustices and racial discrimination—citing violations under various amendments and civil rights acts—Ragland demands recovery of withheld unemployment benefits and state income tax refunds wrongfully taken by the agency. He also seeks punitive damages and any other relief deemed appropriate by the court.

Representing himself pro se, Kimarlo Ragland navigates this complex legal landscape without formal legal representation. The case awaits further proceedings under Judge John Dunlow with Case ID 5:24-cv-00204.

Source: 526cv00013_Ragland_v_NC_Division_of_Employment_Security_Complaint_Eastern_District_North_Carolina.pdf


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