Federal Unemployment Payouts Should Continue, Says Maryland Class Action Lawsuit

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Out-of-work residents want to stop Maryland’s governor from ending supplemental federal unemployment payments early in a class action lawsuit filed Thursday.  

The lead plaintiffs, including half a dozen unemployed Maryland residents, are seeking a temporary restraining order from a Baltimore Circuit Court against Governor Larry Hogan and Maryland Secretary of Labor Tiffany Robinson. The class action lawsuit was reportedly organized by the Unemployed Workers Union and, if successful, would allow them and other state residents to continue to get a $300 federal supplement to their weekly unemployment benefits.  

On June 1, Governor Hogan gave the federal government a 30-day notice that the state would be opting out of the Federal Pandemic Unemployment Compensation and several other programs early, reports local news source Fox Baltimore. Without intervention, the programs will end on July 3.  

The plaintiffs want to represent approximately 50,000 Class Members who filed for unemployment in Maryland during the pandemic.  

The Governor’s Office defended the move to end the federal supplemental unemployment benefits, citing worker shortages across the state.  

“On bonus benefits: Go anywhere in the state right now, and employers will tell you their top challenge is finding enough workers. In fact, there are more jobs available now than ever before,” said a spokesperson in an email to Fox Baltimore. “Even the White House has distanced itself from bonus benefits, saying that states have every right to opt out.” 

The email from the Governor’s office also pointed out that Maryland’s unemployment department is dealing with “an onslaught of fraudulent claims each week.” 

More than two dozen states plan to opt-out of the federal unemployment assistance program enacted during the pandemic earlier than the official expiration date of Sept 6.

The program initially offered an extra $600 a week, which was reduced to $300 a week, to those who lost their jobs as the coronavirus led to lockdowns and shuttering of major sectors of the economy. Critics of the program say that workers who make more in unemployment benefits than they would in wages have no incentive to find jobs. 

Indeed, complaints of hard-to-find workers in certain sectors led Maryland and other states to opt-out of the federal unemployment program early; however, early data shows that ending the program may not be prompting would-be workers to look for employment in those states. 

Recent jobs data showed that the number of people searching for work actually dropped by a percentage point in a number of states which opted out of the federal unemployment program early, reports CNBC.  

The Unemployed Workers Union told Fox Baltimore that they expect a response from the court next week.  

Do you think unemployment recipients should continue to get the federal supplement? Do you need the extra benefits? Tell us about it in the comment section below.  

The plaintiffs are represented by Alec Summerfield. 

The Federal Unemployment Assistance Class Action Lawsuit is Harp, et al. v. Governor Larry Hogan, et al., Case No. Unknown in the Circuit Court for Baltimore City.  

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