UIPL12-09_ch1_a1acc.pdf

ETA Advisory File Text

ATTACHMENT I Extended Benefits Questions and Answers IN GENERAL CH 1-1. Question Section 2005 c of Public Law No. 111-5 includes a six-month phase-out of the temporary 100-percent Federal financing for Extended Benefits EB that the Public Law establishes. For individuals who received EB for a week of unemployment beginning before Friday January 1 2010 EB payments made for weeks ending before June 1 2010 will continue to be eligible for 100-percent Federal financing. However payments to individuals who first received EB for weeks of unemployment beginning after January 1 2010 would be funded through a 50-percent Federal share and a 50-percent state share. After January 1 2010 can a state limit EB to only those individuals who were covered by full Federal funding Answer No. If the state is in an EB period it must pay all individuals who qualify for EB regardless of Federal sharing. Conversely if a state is not in an EB period it may not pay any EB. CH 1-2. Question My state is in the process of adding the Total Unemployment Rate TUR trigger to its law. May my state law provide that the EB period will begin prior to the date of enactment Answer Assuming that the requirements for an EB period are met nothing in Federal law or regulation prohibits the retroactive EB period described in the question. CH 1-3. Question To follow-up on the preceding question how will eligibility for any retroactive weeks be determined particularly with respect to backdating claims and to the EB program s requirement that an individual engage in a systematic and sustained search for work Answer For purposes of backdating claims state law applies. See 20 CFR 615.8 a 1 . The EB work search requirements do not apply to retroactive weeks. The EB work search requirements only apply after individuals are notified in writing that their prospects of finding employment are not good . See Q A CH 1-7. CH 1-4. Question Q A 5 in UIPL No. 12-09 states that the changes made by Public Law No. 111-5 do not affect Federal sharing for EB based on service performed in the employ of state and local governments and federally-recognized Indian tribes. How should the state charge EB based on service for these entities 2 Answer The answer differs for reimbursing employers and contributing employers Because section 204 a 3 of the EB law denies Federal reimbursement for EB based on service for state and local governments and federally-recognized Indian tribes 20 CFR 615.10 b requires these employers when they elect the reimbursement option to reimburse 100 percent of these EB costs. Public Law No. 111-5 does not change this result because it does not change the fact that there is no Federal reimbursement for these costs. State law dictates whether or not contributory employers are charged for EB. However states must continue to charge contributing employers for their share of sharable regular compensation. See 20 CFR 615.10 a . EB WORK SEARCH REQUIREMENTS CH 1-5. Question Where can I find more information on the EB work search requirements Answer Regulations governing the EB work search requirements and other matters related to the EB program are available at 20 CFR Part 615. The core provisions are summarized in Q As CH 1-6 through CH 1-14. CH 1-6. Question When must individuals begin the EB work search Answer Individuals must begin a work search after the state provides notification that their prospects for obtaining work within a reasonably short period of time are good or not good. The state must provide this notification no later than the end of the week in which individuals file their first EB claim. Individuals whose job prospects are not good must be notified of the EB work search requirements at the same time. The work search requirements apply to the week following the week in which the individual receives such notice. See 20 CFR 615.8 d 1 . CH 1-7. Question How does the state determine whether an individual s prospects for obtaining work within a reasonably short period of time are good or not good Answer State law specifies what constitutes a reasonably short period of time. See 20 CFR 615.2 o 3 . Since individuals claiming EB have exhausted regular compensation and Emergency Unemployment Compensation EUC08 they have been unemployed for a long time. There is a presumption that their prospects of obtaining work within a reasonably short period of time generally will be considered not good. Individuals can rebut this presumption by furnishing to the state satisfactory evidence to the contrary. CH 1-8. Question What are the work search requirements for an individual who is claiming EB 3 Answer The answer depends on whether the individual s prospects for obtaining work within a reasonable time are good or not good. Individuals whose prospects are good must conduct the same search for suitable work as is required of individuals claiming regular compensation under state law. Many state laws allow such individuals to establish eligibility if they limit their work search to their usual occupation. In other words many state laws do not require individuals to immediately search for any kind of work available. The EB law and regulations set forth the work search requirements that states must require for individuals whose work prospects are not good. Taken together this authority requires a systematic and sustained effort to search for suitable work for each week of EB claimed. See Sections 202 a 3 C - E of the EB law and 20 CFR 615.8 d 4 and 615.2 o 8 . A systematic and sustained effort means among other things that the search is not limited to the classes of work or rates of pay to which the individual is accustomed or which represent the individual s higher skills and which includes all types of work within the individual s physical and mental capabilities . . . . 20 CFR 615.2 o 8 iv . CH 1-9. Question How do the work search requirements relate to individuals participating in a short-time compensation STC program Answer The job prospects for individuals participating in a STC program are considered good because they are working although at reduced hours. Moreover Section 401 d 1 of Public Law No. 102-318 defines STC as a program under which among other things eligible employees are not required to meet . . . work search requirements while collecting STC. Thus individuals are not required to seek work as a condition of receiving STC regardless of whether the individual is claiming regular compensation or EB. SUBMISSION OF TANGIBLE EVIDENCE CH 1-10. Question What tangible evidence of seeking work must the individual submit Answer The individual must supply information which includes the 1 actions taken 2 methods of applying for work 3 type s of work sought 4 dates and places where work was sought 5 name of the employer or person contacted and 6 outcome of the contact. See 20 CFR 615.2 o 9 . CH 1-11. Question Must the individual actually submit the tangible evidence of work search to the state prior to the state issuing payment Alternatively may states issue payment based on the individual s certification via Interactive Voice Response IVR or other means that the tangible evidence has been transmitted to the state Answer It is preferable that a state require an individual to submit the tangible evidence with each claim. However the Department of Labor Department will permit states to make 4 payment based on the individual s certification that s he has conducted the required work search and transmitted the evidence to the state. Section 615.8 g 1 of 20 CFR requires the submission of tangible evidence of actively seeking work with each claim suggesting that the state must receive the evidence at the same time as other claims materials. However that section was drafted when simultaneous submittal of work- search data was more practical since claims were filed either in person or through the mail. The current use of technologies such as IVR generally allows the states to process claims quickly and efficiently but does not readily permit a claimant to submit tangible evidence that is a written record 20 CFR 615.2 o 9 with each claim. Accordingly the Department interprets section 615.8 g as permitting a state to make payment upon the individual certifying with each claim that s he has conducted the required work search and is submitting the tangible evidence. At a minimum a state must periodically audit reasonable samples of the tangible evidence submitted to ensure that it has received these written records and that they are complete. CH 1-12. Question Must the state review the tangible evidence before making each payment Answer No. It is not practical for states to review all tangible evidence before making payments. However states must at a minimum periodically review for completeness a reasonable sample of such evidence after payment. CH 1-13. Question How may the tangible evidence of an active search be submitted Answer No single method of submission is required. What is essential is that the individual provide the necessary information in a verifiable form. As a result states may require submission through paper on-line IVR fax or any other method that assures the state obtains the information. For audit purposes the state is required to maintain the individuals responses for the same length of time as any written record s . See 20 CFR 615.15 b . SUSPENSION OF WORK SEARCH REQUIREMENTS CH 1-14. Question May a state suspend the EB work search requirement Answer The work search requirements for individuals whose job prospects are not good may be suspended when S evere weather conditions or other calamity forces suspension of such activities by most members of the community. See 20 CFR 615.2 o 8 vi . High unemployment is not a calamity which forces suspension of work search. Individuals are on jury duty or h ospitalized for treatment of an emergency or life- threatening condition. However such suspension criteria only apply when state law 5 authorizes suspension for both EB and regular UC. See 20 CFR 615.8 g 3 . Any illnesses or disabilities not requiring hospitalization for the reasons described are not permissible reasons to suspend the EB work search requirements. In addition State law applies regarding whether members of labor organizations shall be required to seek nonunion work in their customary occupations. See 20 CFR 615.8 g 4 . INTERSTATE CLAIMS CH 1-15. Question Federal law limits EB eligibility to two weeks for certain individuals who file from a state that is not in an EB period. Does this limitation pertain to commuter claims Answer No. The two-week limitation applies only to claims filed under the Interstate Benefit Payment Plan IBPP . Commuter claims are made by individuals who regularly traveled across a state line from home to work and file for UC with the state of employment. Because commuter claims are not filed through the IBPP the two-week limitation does not apply. See EB law Section 202 c and 20 CFR 615.9 c . TERMINATING DISQUALIFICATIONS USING WORK CH 1-16. Question My state law provides that individuals are not required to return to work to terminate certain disqualifications. Instead they must only wait a certain number of weeks to qualify. To be eligible for EB an individual must terminate a disqualification using employment. How in practice does this work Answer The Department s regulations provide that for EB purposes a state shall require that the individual be employed again subsequent to the date of the disqualification before it may be terminated. 20 CFR 615.8 c 2 . Under this rule when the individual first files for EB the state will apply the EB provisions of its UC law which require employment to terminate a disqualification. If the state finds that the individual has performed the employment required by its law prior to filing for EB the disqualification will be terminated and initial EB eligibility may be established. If the state finds that such employment has not been performed the state will issue an appealable determination specifying the amount of employment required for EB eligibility. ENTITLEMENT DURING HIGH UNEMPLOYMENT PERIODS CH 1-17. Question My state has triggered off the 8 percent high unemployment period HUP provided for under the TUR trigger. It remains triggered on under the 6.5 percent TUR trigger. How does my state treat individuals with remaining HUP entitlement 6 Answer In general when a state triggers on to a HUP an individual s maximum entitlement to EB will equal up to 20 weeks of benefits as opposed to up to 13 weeks of benefits for basic EB. These additional weeks of benefits are payable only for weeks of unemployment occurring in a HUP. As a result when a state triggers on a HUP the state will redetermine amounts payable for an otherwise eligible individual. However when a state triggers off a HUP and the individual has not exhausted all entitlement the state must redetermine the individual s remaining entitlement. Specifically when a HUP triggers off the state must redetermine entitlement based upon the basic EB monetary determination minus benefits paid. For example if an individual first becomes EB-eligible during a HUP the individual will initially be entitled to 20 weeks. If the individual is paid six weeks and the HUP ends the individual s remaining entitlement will be recalculated based on the current 13-week maximum entitlement minus any weeks of EB paid. In this case the individual s remaining entitlement would equal seven weeks. 13 6 7. As another example assume the above individual was paid 15 weeks of EB and the HUP ends. In this case the individual would have no remaining entitlement because the individual s current entitlement is capped at 13 weeks and an amount exceeding 13 weeks has already been paid. BEGINNING AND ENDING DATES OF EB PERIODS CH 1-18. Question When does my state s EB period begin and end if it triggers on and off under different triggers For example my state Triggers on EB under the TUR trigger. While still meeting the TUR trigger also meets the mandatory insured unemployment rate IUR on trigger. While still meeting the IUR trigger stops meeting the TUR trigger. Finally stops meeting the IUR trigger. Answer The state s EB period will begin with the first week payable under the TUR trigger and end with the last week payable under the IUR trigger. In this case although there are different triggers for determining when an EB period may begin and end there is only one EB period. As long as EB remains triggered on throughout this period under any trigger the EB period continues. See UIPL No. 45-92. The answer would be different if the on triggers do not overlap. For example if the last week payable under the TUR trigger is week 14 of the calendar year and the first week payable under the IUR trigger is week 15 then the EB period would not be continuous. Instead the TUR EB period would end. In this case even though the state is continuing to experience high unemployment the state must trigger off EB for a minimum of 13 weeks as required by EB law Section 203 b 1 B and 20 CFR 625.11 d . 7 CH 1-19. Question An EB period based on the TUR trigger begins the third week following the Department s EB trigger notice identifying that the state meets the on indicator. For the IUR trigger the EB period begins the week immediately following the release of the trigger notice with an on notice. What is the reason for this difference Answer Under Federal law an EB period based on either the IUR or the TUR trigger begins the third week after the first week for which there is a State on indicator. EB law Section 203 a 1 . However since the on indicators for the IUR and TUR triggers are based upon different events the EB periods they trigger begin at different times following the trigger notices Under the IUR trigger the week of the on indicator is the last week of a 13-week period when the state s IUR reaches the levels specified in law and regulation. See Section 203 d 1 of the EB law and 20 CFR 615.12 a . Under Section 203 a 1 of the EB law the EB period begins the third week after this on indicator week. The week that the EB period begins is the week after the trigger notice is published because the process proceeds as follows o Week 1 is the week when individuals submit benefit claims for the prior week. That prior week will be deemed the on indicator week if these benefit claims meet the IUR trigger requirements o Week 2 is the week the state compiles the benefit claims submitted during Week 1 the state reports its IUR to the Department and the Department issues the EB trigger notice based on the state report o Week 3 is the beginning of the EB period. Under the TUR trigger the week of the on indicator is the week the average rate of total unemployment in a State seasonally adjusted for the period consisting of the most recent 3 months for which data for all States are published meets certain criteria. EB law Section 203 f 1 A i . Thus the statute ties the TUR on indicator to the week of publication and the EB period begins the third week following this indicator week. As a result for example when data for the month of February for all states was published on March 27 2009 the EB period for states triggering on using this data began April 12 2009. Similarly the end dates of EB periods in relation to the Department s EB trigger notice depend on whether the state triggers off an EB period based on the TUR trigger or the IUR trigger.