Shaw v. McMahon

THE STATE-U PROGRAM IS ELIMINATED, EFFECTIVE AUGUST 1, 1991. NO PAYMENTS WILL BE ISSUED UNDER THIS COURT ORDER AFTER THAT DATE.

Issue

THE FINAL COURT JUDGEMENT PROHIBITS THE DEPARTMENT FROM APPLYING THE FEDERAL LUMP SUM REGULATION WHEN DETERMINING ELIGIBILITY FOR THE STATE-U PROGRAM.

History

A permanent injunction was issued September 20, 1984. The final judgement has now been issued and is the result of negotiations between the State and the plaintiffs.

On December 31, 1987, the Appeal Court ruled that the State was correct in providing State-U only to families whose principal earner does not have a connection to the labor force. This applies to
two-parent households. Therefore, any State-U which was paid under the previous Shaw court order where the unemployed principal earner had a connection with the labor force, shall be considered an overpayment. If workers discover such cases, they shall refer them to the CROP Unit.

Note: On December 2, 1988, the Contra Costa Superior Court ruled that the State must cease applying the federal unemployment test to Shaw applicants whose federal eligibility is AFDC-FG.

Date of Final Judgement

January 23, 1985

Date of Appeal Decision

December 31, 1987

Retroactivity

The judgement is effective back to October 1, 1984.

Duration

This is a final judgement.