Ohio Supreme Court to Hear Appeal Over $900 Million in Unclaimed Unemployment Benefits
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The Ohio Supreme Court will review a lower court ruling demanding Governor Mike DeWine distribute $900 million in federal coronavirus unemployment benefits that he initially declined in 2021, reigniting a legal battle with significant implications for hundreds of thousands of Ohioans. The 5-1 decision to hear the case follows previous rulings by two lower state courts finding Governor DeWine, a Republican representing Greene County, acted improperly when he halted the acceptance of Pandemic Unemployment Compensation funds in June 2021.
DeWine’s Initial Decision and Subsequent Legal Challenges
Had Governor DeWine not terminated the program, approximately 320,000 Ohio residents would have continued receiving the $300 weekly supplemental payments through September 2021. The governor justified his decision by arguing the federal funds were exacerbating labor shortages, hindering employers’ ability to fill open positions during the pandemic recovery.
However, plaintiffs in the case, represented by the law firm of former Ohio Attorney General Marc Dann, contend that state law mandates the governor and his administration to secure and distribute all eligible federal benefits to Ohio citizens, despite the passage of over four years.
The legal saga began in 2022 when the Ohio Supreme Court dismissed an initial request for a temporary restraining order and preliminary injunction, deeming the matter “moot.” At the time, Ohio Attorney General Dave Yost asserted this ruling concluded the lawsuit.
Lower Courts Reverse Course, Issue Injunction
That interpretation was challenged when the Franklin County Common Pleas court and the Tenth Circuit Court of Appeals reversed course, granting the plaintiffs a permanent injunction. This prompted the state to appeal, with Ohio Solicitor General Mathura J. Sridharan arguing that state law only requires participation in a specific set of federal unemployment programs, and the COVID-era payments fell outside that scope.
Sridharan further emphasized that the Ohio legislature, through its 2023 state budget, explicitly granted the governor the authority to discontinue participation in special or emergency federal programs. She argued that, given the current economic climate, Governor DeWine’s concerns about the “perverse effects” of continued payments are “even more heightened.”
“Such payments tighten the market for labor; employers may be unable to find employees; and therefore they may be forced out of business, forced to forgo investment opportunities, or forced to make investments in States with more favorable labor markets,” Sridharan wrote in court filings. “It is telling that no State, nor the federal government, is suggesting that such enhanced unemployment benefits are needed or helpful in 2025.”
Plaintiffs Dispute State’s Arguments
Brian Flick, representing the plaintiffs, countered that the 2022 Supreme Court ruling only addressed the preliminary injunction request, not the underlying case itself. He also pointed out that the state previously argued the 2023 legislative change should not apply retroactively to the lawsuit, as it was enacted after the initial filing.
Flick further disputed the state’s interpretation of Ohio law, asserting the COVID-era payments were not a new benefit but rather an extension of existing unemployment benefits already covered under state statutes.
“Although the governor might believe he is entitled to have this court decide any dispute he is involved in, he must, like any ordinary citizen, establish a sound basis for this court to accept jurisdiction,” Flick argued. “And in this case, he has failed.”
Court Divisions and Next Steps
The Ohio Supreme Court’s decision to hear the appeal was not unanimous. Justice Jennifer Brunner of Columbus, the court’s sole Democrat, dissented. Justice Pat DeWine, a Cincinnati Republican and the governor’s son, recused himself from the decision. Neither justice provided a written explanation for their respective positions.
The case now returns to the Ohio Supreme Court for full consideration, with a ruling expected to have a significant impact on the financial well-being of potentially hundreds of thousands of Ohioans and set a precedent for the state’s future participation in federal emergency programs.
