Mercer County Commissioners are challenging the Ohio Department of Job and Family Services in court over unemployment payments the county says were connected to fraudulent claims.

The Board of Commissioners filed the lawsuit May 21 in Mercer County Common Pleas Court against the director of ODJFS. The case is assigned to Judge Matthew K. Fox.

According to the complaint, Mercer County is considered a reimbursing employer under Ohio unemployment law. That means the county reimburses the state for unemployment benefits paid to eligible former county employees rather than paying unemployment taxes in the same manner as some other employers.

The county is asking the court to determine its responsibility for payments it contends were tied to fraudulent unemployment claims and is also seeking injunctive relief.

The lawsuit traces the issue back to the COVID 19 pandemic, when unemployment claims increased dramatically across Ohio and the state created a fraud reporting portal.

ODJFS filed its answer to the lawsuit June 17.

In that filing, the state denied many of the county's allegations and argued that the court may lack jurisdiction over one or more of the claims.

ODJFS also argues that the county may have failed to exhaust available administrative remedies and that portions of the complaint may fail to state a claim upon which relief can be granted.

The department maintains that it acted lawfully, properly and in good faith.

The state is asking the court to deny the relief requested by Mercer County.

A Zoom conference in the case was scheduled for 9 a.m. Monday, August 24, before Judge Fox.

Any additional court filings or scheduling orders resulting from that conference are expected to provide the next indication of how the case will proceed.