Ingram, who oversaw the career centers throughout the state, claims in the lawsuit, "In many cases the replacements did not have qualifications, including knowledge and experience equal to the persons they replaced but were compensated at a higher level."
In fact, NewsChannel 5 Investigates has learned the Department of Labor has not been meeting federal standards for getting benefits to people filing for unemployment.
The state is supposed to process claims in 21 days.
But currently 10,000 people have waited longer than that, according to the Department of Labor.
Some people have waited two months for a decision on their benefits.
"When I took my letter into the career center they told me that it may be as much as 8 weeks before I received my first check," Kristine Bolden said in an interview last month.
She was let go from her job and desperate to get her unemployment benefits. She couldn't understand what was taking so long.
A spokesman for the Department of Labor said last month that they are working to meet federal standards.
"We know the federal government requires, at least sets a standard, that we do that in 21 days. We're only doing that 80 percent of the time," said spokesman Jeff Hentschel.
Hentschel said the department is now hiring more employees to deal with the backlog.
On Tuesday, the department did not have any comment on the lawsuit.