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Action Required: Remove and discard the Attachment (dated 4/16/97) to TEGL 8-96 and replace with the attached revised Attachment, dated 5/8/97.

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Agenda: A copy of the tentative agenda is attached. Participants: The agenda has been designed for the managers of the lower and higher authority appeals units and the chief appeals clerks and/or appeals administrative staff supervisors of the lower and higher authority appeals units. The primary goal of the meeting is to provide forums for management and administrative staff audiences to exchange ideas and experiences in managing the high level of appeals workloads that have occurred in recent years. The conference will be of interest to unemployment insurance appellate boards and commission members, chief hearing officers responsible for lower authority appellate adjudications, and the chief counsel and chief executive officers of the various higher authority boards and commissions. Meeting Particulars and Inquiries: Travel and per diem costs for SESA participants will have to be paid from available State Fiscal Year 1997 allocations. Additional funds from the Employment and Training Administration are not available for this purpose. Details about the meeting site, costs, and contact persons for additional information are contained in the attached materials. The Oklahoma Employment Security Commission, Board of Review, is hosting this cooperative conference and has graciously agreed to handle the logistics of registration and related matters. Action Required: SESA Administrators are requested to provide this information to the appropriate SESA personnel and appellate board members and staff.

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Action Required. a. Remove canceled GALs listed on Attachment A from your active files. While a GAL may be canceled, the GAL and any material transmitted with it may be retained as long as it is useful. b. Place the current checklist (Attachment B) at the front of the appropriate binder to serve as a source of reference.

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Background: Due to interest by national, regional, and State UI managers and policy makers about the growth in the employee leasing industry and its impact on, and implications for, the State UI programs, the USDOL entered into a contract with KRA Corporation to study the effect of the employee leasing industry on State UI programs. The particular interests of State UI managers, with respect to the employee leasing industry, were exhibited through a survey conducted by a committee formed by the Interstate Conference of Employment Security Agencies (ICESA). Primary among the areas of interest were: (a) the aggregation of employees into the employee leasing industry rather than the industry in which the workers normally performed services; (b) reduced experience rating; (c) tax rate manipulation; and (d) bankruptcies of employee leasing companies. Study Purpose: The purpose of this study was to develop a national perspective on the impact of employee leasing on the UI system. To meet the study objective, KRA Corporation conducted a survey of States between September 1 and November 1, 1994; aggregated the State employee leasing statutes and regulations; delineated the State definitions of employee leasing and of temporary help; and performed an analysis of wage data provided by four State UI agencies. Of the fifty-three (53) State Employment Security Agencies (SESAs), only fourteen (14) do not have a definition of employee leasing in their laws, regulations or agency policies. Although the majority of SESAs have developed a definition for the industry, few track the activities of employee leasing firms or have techniques with which to differentiate employee leasing companies from other firms. Many SESAs currently track the activities of various industries and analyze the impact of the industries on the State UI program. Development of similar methods of analyses by the SESAs for the leasing industry could provide useful information for decision makers in the future. Required Action: SESA Administrators are requested to distribute the referenced report to appropriate SESA staff. SESA Administrators are also encouraged to take steps to track and analyze the impact of the employee leasing industry on the State's UI program. Separate Cover: The final study entitled, Employee Leasing: Implications for State Unemployment Insurance Programs, was mailed under separate cover.