An Ohio appeals court has ordered Gov. Mike DeWine to pursue $900 million in federal pandemic unemployment benefits for 300,000 workers who lost aid when the state ended the program early in 2021. The Tenth District Court of Appeals ruling Monday marks the second time courts have sided with unemployed Ohioans in the four-year legal battle over the prematurely terminated benefits.
The decision upholds a February ruling by Franklin County Common Pleas Court Judge Michael Holbrook that found DeWine violated state law by withdrawing from the Federal Pandemic Unemployment Compensation program in June 2021, three months before it expired.
The appeals court rejected the state's argument that the case became moot when the federal program ended in September 2021. "This is the second time that's happened," said Marc Dann, the Democratic former attorney general who filed the lawsuit1. "My expectation is that now that the stay is lifted, that the governor will send that letter immediately."
The ruling requires DeWine and the Ohio Department of Jobs and Family Services to "take all action necessary to obtain Ohio's share of FPUC program benefits from the Department of Labor"2. DeWine has 45 days to appeal to the Ohio Supreme Court1.
The case affects roughly 300,000 Ohioans who would receive $3,000 each in back payments1. Dann argued the funds would flow "into the hands of some of the poorest people in Ohio" at a time when many lack emergency savings2.
"The governor, for whatever reason, is fighting like hell to keep $900 million from flowing into the hands of the poorest Ohioans at a time when they would probably spend all that money on Ohio businesses," Dann said3.
Ohio House Democrats have urged DeWine not to appeal, while Republican members of Congress have asked federal labor officials to block retroactive payments4. The House Ways and Means Committee argued the payments would wrongfully burden taxpayers with "four year old pandemic era unemployment insurance benefits"4.
DeWine joined 25 other mostly Republican-led states in ending the $300 weekly federal supplements early, citing business groups' concerns about worker shortages1. The Chamber of Commerce and Ohio Restaurant Association had requested the termination, arguing the benefits made it difficult to find workers2.
Policy Matters Ohio research director Zach Schiller noted the irony: "DeWine should correct his error and aid workers as he did employers," referencing the state's use of nearly $1.5 billion in federal rescue funds to bail out employers and the unemployment trust fund3.
"$3,000 could really help people get back on their feet," Dann said4.
