Court orders Ohio to pursue federal Pandemic Unemployment Funds
A Franklin County Common Pleas Court judge has ordered the state of Ohio to pursue remaining federal funds from the Pandemic Unemployment Assistance program, a move that could provide back pay to eligible residents. Judge Michael Holbrook's ruling, issued Wednesday, found that the state violated state law when it prematurely ended its participation in the program in June 2021.
The case stems from lawsuits filed by several individuals, including Candy Bowling and James Parker, who claimed they were wrongly denied benefits when Gov. Mike DeWine ended Ohio's participation in the Federal Pandemic Unemployment Compensation program. The program, funded by the CARES Act, provided additional unemployment benefits during the COVID-19 pandemic.
"These are people who were out of work during the pandemic through no fault of their own," explained Rep. Lauren McNally. "Strictly because of the pandemic and they did not receive their money. I think it's asinine that the State did not take this federal money from the very beginning and put it in the hands of Ohioans at a time when it was desperately needed. For the Governor to not do that the first time around is ridiculous. I'm baffled."
"$3,000 could really help people get back on their feet," said Marc Dann of Dann Law and former Ohio Attorney General. "It's earmarked for the State of Ohio for people who were unemployed at that time. Working-class men and women in the state and the Governor just simply refuses to go get it."
While the Ohio Supreme Court previously dismissed the case as moot after the FPUC program expired, Judge Holbrook's ruling addresses the issue of potential remaining funds. The judge cited a declaration from Jim Garner, Administrator of the U.S. Department of Labor's Office of Unemployment Insurance, indicating that states could potentially recoup funds if they rescinded their program termination.
Holbrook's order directs the state to "take all action necessary to obtain Ohio’s share of FPUC program benefits from the United States Department of Labor." The ruling declares that the state acted illegally when it ended participation in the program early.
Marc Dann's law firm filed suit in July of 2021 on behalf of thousands of Ohioans who were denied $300 in weekly supplemental unemployment benefit payments.
“Judge Holbrook validated our contention that Governor DeWine and ODJFS were required by Ohio law to accept and distribute the FUPC payments to Ohioans devastated by COVID-19,” Dann said. “The Governor’s decision to deny federal aid to families in crisis was arbitrary and unconscionable, and illegal. It is our sincere hope that he will now honor his obligation to obey the law without delay. The 10th District Court of Appeals has already very clearly said that the law, in this case, requires the Governor to go get the money that is available to people on unemployment."
DeWine argued by the summer of 2021, there was a surplus of open jobs, with more than enough time for Ohioans to find work.
"With these dollars, people can get Handel's Ice Cream or take their family out to dinner. And all of that money will immediately be pumped back into Ohio's economy," Dann added. "It's not just those 320,000 people affected."
The court's decision grants summary judgment to the plaintiffs on claims of declaratory judgment and injunctive relief and a petition for mandamus related to restoring Ohio’s participation in the FPUC program and obtaining benefits. It denies summary judgment on a second mandamus claim related to prompt payment of benefits, citing remaining questions of fact.
"It's free federal money coming to the State of Ohio to help Ohioans," McNally added. "We should take that every single time. The Democratic Caucus released a letter today asking the Governor to not appeal this court decision so we could just move on from this and get that money into people's hands."
"For Millionaire Mike DeWine, $3,000 doesn't seem like a lot of money," Dann added. "Most of the folks who were on unemployment during the pandemic have still not totally financially recovered. That $3,000 injection into people's lives will make a huge difference," Dann said.
It is unclear when the recipients could get their money.
The state does plan to appeal this decision.
