Political Misstep's Silver Lining



We debated earlier this year whether seasonal workers should be eligible for unemployment benefits. Friday’s editorial discusses why that debate will continue at least a few more months:

Earlier this year, as the legislature debated an exemption to unemployment insurance for seasonal businesses, Sen. Ray Cleary said the change would “save tens of millions of dollars a year.” Now, it seems, that savings will have to wait, not because anybody has changed their minds about cutting off unemployment benefits to seasonal workers, but because of a disconnect between the state’s bill and federal guidelines.

Somewhere along the way, those writing the law didn’t manage to do their due diligence in crafting a rule that would actually be enforceable. As a result, the changes will be delayed at least until next year, and perhaps forever, as the fix to the situation requires a new bill to be filed and passed by the legislature once again, not necessarily a foregone conclusion.

How does this sort of oversight occur? It’s unclear at this point. Adrienne Fairwell, spokeswoman for the State Department of Employment and Workforce, could say only that the rule’s seasonal language needed to be brought “into compliance with the federal guidelines,” and that “by the time the Department of Labor had contacted us to alert us there was an issue, it was too late in the session” to correct it.

Sen. Ray Cleary, R-Murrells Inlet, who had been involved with the crafting of the law, said he’s not sure what happened, particularly because South Carolina’s bill is modeled on a similar bill in North Carolina, but “the devil’s in the details” and one of those details must have been wrong.

Danny Varin, a legislative staffer who worked on the bill, was unsure why our state’s bill was turned down while North Carolina’s stands, but said “the feds decided they didn’t like the language we used.” Whatever the reason, the outcome is the same. The change, which Hospitality Association CEO Stephen Greene called “exceptionally important,” will be delayed while the next bill goes through the process of getting preapproved by the Labor Department before being voted on again.

The complication, which Varin hopes to have ironed out by early next year, could be a blessing for local seasonal workers, who will be eligible to collect benefits for one last offseason as they contemplate a future without that help. Whether or not it makes sense for our state to cut off unemployment benefits to seasonal workers or not is still largely unclear and untested.

On one hand, unemployment benefits were conceived as a temporary safety net to prevent workers from falling into sudden poverty at the unexpected loss of a job and to maintain a sense of social stability until that worker can find another job. Subsidizing a class of workers every year after the loss of a job that they knew at the outset was only temporary would not seem to be part of that mission. On the other hand, pulling away this support could lead to an even more transient and unstable population than our tourism-based region already experiences, as seasonal workers come to the Strand to work during the busy periods and then move elsewhere as work dries up.

Another few months to prepare for a new reality should help those in seasonal trades adjust and ready themselves, and it could be a welcome transition period. But that will depend on the willingness of workers to prepare for the change, whether by going back to school, finding a year-round job, saving some extra money or perhaps even moving out of the area. Whatever the strategy, if you’re in a seasonal job, now’s the time to think about your plans for next winter.

 

How does this sort of oversight occur? It’s unclear at this point. Adrienne Fairwell, spokeswoman for the State Department of Employment and Workforce, could say only that the rule’s seasonal language needed to be brought “into compliance with the federal guidelines,” and that “by the time the Department of Labor had contacted us to alert us there was an issue, it was too late in the session” to correct it.

Sen. Ray Cleary, R-Murrells Inlet, who had been involved with the crafting of the law, said he’s not sure what happened, particularly because South Carolina’s bill is modeled on a similar bill in North Carolina, but “the devil’s in the details” and one of those details must have been wrong.

Danny Varin, a legislative staffer who worked on the bill, was unsure why our state’s bill was turned down while North Carolina’s stands, but said “the feds decided they didn’t like the language we used.” Whatever the reason, the outcome is the same. The change, which Hospitality Association CEO Stephen Greene called “exceptionally important,” will be delayed while the next bill goes through the process of getting preapproved by the Labor Department before being voted on again.

The complication, which Varin hopes to have ironed out by early next year, could be a blessing for local seasonal workers, who will be eligible to collect benefits for one last offseason as they contemplate a future without that help. Whether or not it makes sense for our state to cut off unemployment benefits to seasonal workers or not is still largely unclear and untested.

On one hand, unemployment benefits were conceived as a temporary safety net to prevent workers from falling into sudden poverty at the unexpected loss of a job and to maintain a sense of social stability until that worker can find another job. Subsidizing a class of workers every year after the loss of a job that they knew at the outset was only temporary would not seem to be part of that mission. On the other hand, pulling away this support could lead to an even more transient and unstable population than our tourism-based region already experiences, as seasonal workers come to the Strand to work during the busy periods and then move elsewhere as work dries up.

Another few months to prepare for a new reality should help those in seasonal trades adjust and ready themselves, and it could be a welcome transition period. But that will depend on the willingness of workers to prepare for the change, whether by going back to school, finding a year-round job, saving some extra money or perhaps even moving out of the area. Whatever the strategy, if you’re in a seasonal job, now’s the time to think about your plans for next winter.