• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

Daily News Chicago

The Chicagoland's Top Daily News Source

DAILY NEWS CHICAGO
The Chicagoland's Top Daily News Source

  • Home
  • LOCAL NEWS
  • BUSINESS
  • POLITICS
  • REAL ESTATE
  • MEET THE TEAM

Texas unemployment benefits lawsuit: what’s the reason and what could be the consequences?

June 27, 2021 by Abbie Falpando-Knepp

As the US economy reopens with over half the population vaccinated, businesses are searching for employees to staff their establishments but having difficulties finding willing bodies. Blaming enhanced unemployment benefits, there has been a move in over half the states to cancel the additional assistance to prod people back to work. However, workers are beginning to push back against those executive decisions.

Due to the unpreceded situation created by the covid-19 pandemic the US Congress created enhanced unemployment programs which were extended under the American Rescue Plan until 6 September. However, citing the need to get people back to work 25 Republican governors took the executive decision to end benefits early.

In Louisiana the Democrat governor reached an agreement with Republican lawmakers to do the same. So far, in a handful of other states, Republican legislatures are trying to get their states to follow suit.

Texas workers say the governor’s decision to stop $300 pandemic unemployment benefit is unlawful

Texas Governor Greg Abbott announced in May that his state would stop participation in the enhanced unemployment benefits programs, including a weekly booster of $300 on top of other jobless aid, on 26 June. His decision was one of two dozen that followed Montana’s lead to end one or all of the enhanced benefits before the 6 September expiration date.

There is no federal obligation for states to participate in the programs, however unemployed workers in Texas allege that the governor overstepped his authority in canceling the enhanced unemployment benefits. Through Facebook, two separate groups of jobless aid recipients, Texas Unemployment Updates and Unemployment Petition and Peaceful Protest, organized to stop the state from ending the financial assistance.

More than 30,000 people from two groups on Facebook are filing a lawsuit against Texas Gov. Greg Abbott for ending federal unemployment benefits https://t.co/9r2eqQZeDN

— Houston Chronicle (@HoustonChron) June 25, 2021

The 30,000-plus members among the two groups say that Governor Abbott did not have the legal authority to take the decision on his own, but that it should be determined by the Texas Workforce Commission. The lawsuit states that Governor Abbott “exceeded his power” when he opted out of the program, and seeks a restraining order to keep benefits from ending for nearly a million Texans. A judge was set to hear the case on Friday.

Indiana judge stops state from ending enhanced unemployment benefits

Judge John Hanley of the Marion Superior Court granted a preliminary injunction on Indiana’s suspension of the enhanced unemployment compensation programs on Friday. The decision reinstates payments for around 230,000 Indiana residents which stopped on 19 June. Judge Hanley said there was a “preponderance of evidence” that Governor Eric Holcomb had violated Indiana law with his decision to end the pandemic jobless aid early. Under Indiana law the state is required “to procure all available federal insurance benefits to citizens.”

Judge Hanley in his ruling wrote “A loss of housing or medical care and the inability to provide food, shelter and adequate childcare for a family constitute irreparable harm pending resolution of this cause of action and are not adequately compensable by an award of damages.”

Indiana must continue paying pandemic unemployment benefits to roughly 230,000 Hoosiers until a lawsuit challenging the early termination of the compensation is decided, a state judge has ruled https://t.co/f7oxgKhZDE

— CNN (@CNN) June 25, 2021

A handful of legislatures push to have enhanced unemployment benefits stopped

Three states – Michigan, North Carolina and Wisconsin, now have legislation pending the signature of their respective state’s governor to end the $300 a week in extra unemployment compensation. All three states have Republican-controlled state legislatures and Democrat governors. It is expected that all three governors will veto the bills but have yet to do so.

Lawmakers in Kansas passed a non-binding resolution calling on Governor Laura Kelly to end the $300 weekly extra payment. Governor Kelly is opposed to such a move. Likewise, New Mexico Governor Michelle Grisham received a letter from Republican leaders in the state House of Representatives with a similar request to encourage jobless New Mexicans to return to work. In the case of New Mexico though lawmakers asked for a “one-time $1,200 return-to-work bonus once an unemployed worker has been on the job for a month,” to be created in place of the weekly additional payment.

>>>#ad: Don't Miss Today's BEST Amazon Deals!
Originally Appeared Here

Filed Under: US

Primary Sidebar

More to See

Escaped bison recaptured near Chicago after 8 months in wild

WAUCONDA, Ill. (AP) — A bison that escaped a suburban Chicago farm last September and had been living in the wild since was recaptured Wednesday, officials said. The 1,300-pound bison some had come … [Read More...] about Escaped bison recaptured near Chicago after 8 months in wild

Which Chicago suburb has the hottest real estate market?

With suburban home value growth surpassing that of urban homes, the most popular areas appear to be outside the city. According to Zillow, all 10 of its current top markets are located roughly 30 … [Read More...] about Which Chicago suburb has the hottest real estate market?

Chicago City Council approves new curfew

The measure passed 30-19. After the first meeting adjourned, the City Council briefly met for a second time during a special meeting called for by 30 aldermen to grill city leaders about Chicago’s … [Read More...] about Chicago City Council approves new curfew

Privacy Policy | Terms and Conditions | About/ Contact
As an Amazon Associate I earn from qualifying purchases.
Copyright © 2022 · Daily News Chicago . Log in