Lawsuit dismissed over Governor McMaster terminating SC’s participation in COVID-19 related federal unemployment programs

COLUMBIA, SC (WOLO)– On Friday, Governor Henry McMaster released a statement after officials say a lawsuit was dismissed which challenging his decision to terminate the state’s participation in federal unemployment benefit programs related to the COVID-19 pandemic.

“The Court correctly recognized that this lawsuit lacked merit from the start and appropriately rejected the plaintiffs’ effort to force the State to reenroll in these optional federal unemployment programs. I applaud the Court for dismissing this case and declining to reinstate the very  payments that helped create the current labor shortage,” said the governor.

McMaster went on to say, “these supplemental payments were intended to provide short-term assistance to individuals who lost their jobs, through no fault of their own, at the start of the pandemic. Continuing these supplemental benefits would have converted that emergency aid into a dangerous federal entitlement, incentivizing workers to stay at home rather than applying for one of the over 86,000 open positions in the State of South Carolina. Businesses large and small are fighting to survive and thrive, and they should not have to compete with federal benefits when looking for employees.”

The governor told the South Carolina Employment and Workforce to terminate the state’s participation in these programs in May through a letter.

South Carolina Chamber of Commerce President applauded the court’s decision to dismiss the lawsuit.

“Today’s court decision to dismiss the lawsuit challenging the Governor’s ability to terminate optional federal unemployment benefits is critical to keeping our economy moving forward,” said President and CEO of the South Carolina Chamber of Commerce Bob Morgan. “We commend Governor McMaster for making the decision in May to take this action, balancing the needs of our employers and the citizens of South Carolina. We look forward to continuing to support the Governor, DEW, and other business associations in opposition to this lawsuit.”

According to officials, the lawsuit was filed on July 28 by four anonymous plaintiffs. The full Court Order can be found here.