UIPL_16-20_Change_4_acc.pdf

ETA Advisory File Text

EMPLOYMENT AND TRAINING ADMINISTRATION ADVISORY SYSTEM U.S. DEPARTMENT OF LABOR Washington D.C. 20210 CLASSIFICATION Unemployment Insurance CORRESPONDENCE SYMBOL OUI DUIO DATE January 8 2021 RESCISSIONS None EXPIRATION DATE Continuing ADVISORY UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 16-20 Change 4 TO STATE WORKFORCE AGENCIES FROM JOHN PALLASCH s Assistant Secretary SUBJECT Continued Assistance to Unemployed Workers Act of 2020 Pandemic Unemployment Assistance PUA Program Updated Operating Instructions and Reporting Changes 1. Purpose. To provide states with updated guidance for the PUA program as amended by the Continued Assistance to Unemployed Workers Act of 2020 Continued Assistance Act and updated instructions for reporting PUA program activities. 2. Action Requested. The U.S. Department of Labor s Department Employment and Training Administration ETA requests that State Workforce Administrators provide the information in this Unemployment Insurance Program Letter UIPL and all attachments to appropriate program and other staff in state workforce systems as they implement the changes to the PUA program and the required reporting of PUA activities as amended by the Continued Assistance Act. 3. Summary and Background. a. Summary On December 27 2020 the President signed into law the Continued Assistance Act which includes Unemployment Insurance UI related provisions that make the following changes to PUA i. extending PUA program authorization until March 14 2021 ii. adding a phaseout period through weeks beginning on or before April 5 2021 for individuals who have remaining entitlement to PUA and who are receiving PUA as of the end of the program March 13 2021 for states with a Saturday week ending date and March 14 2021 for states with a Sunday week ending date iii. adding a new limitation on backdating claims filed after December 27 2020 the enactment date of the Continued Assistance Act 2 iv. increasing the maximum number of PUA weeks available from 39 weeks to 50 weeks subject to limitations on the dates in which these additional 11 weeks may be collected v. adding a requirement for individuals to submit documentation of employment or self-employment vi. establishing the self-certification process for continued claims in statute vii. permitting states to waive PUA overpayments under certain conditions viii. providing a hold harmless provision for individuals who are currently receiving PUA after having exhausted Pandemic Emergency Unemployment Compensation PEUC but who are now eligible to receive additional benefit amounts available on the PEUC claim ix. establishing in statute the existing PUA appeals guidance and x. adding a requirement for states to verify the identity of PUA applicants. In addition to the changes made by the Continued Assistance Act the Department provides further guidance regarding fraud penalties imposed on individuals for PUA overpayments. ETA has also revised the ETA 902P report to include additional data items for tracking PUA overpayment recovery activities claim exhaustions and overpayments resulting from identity theft. All other PUA program parameters as provided in Section 2102 of the CARES Act PUA agreements UIPL Nos. 16-20 16-20 Change 1 16-20 Change 2 and 16-20 Change 3 remain the same. b. Background The Coronavirus Aid Relief and Economic Security CARES Act of 2020 Pub. L. 116-136 created the PUA program to provide temporary assistance to individuals who are unemployed partially unemployed unable or unavailable for work due to specified COVID-19 related reasons and who are not eligible for regular state or federal unemployment benefits. The CARES Act authorized PUA through weeks of unemployment ending before December 31 2020. Importance of Program Integrity. Addressing improper payments and fraud is a top priority for the Department and the entire UI system. It is critical that states implement UI programs and provisions to ensure that payments are being made to eligible individuals and that states have aggressive strategies and tools in place to prevent detect and recover fraudulent payments with a particular emphasis on imposter fraud by claimants using false identities. The programs and provisions within the Continued Assistance Act the Emergency Unemployment Insurance Stabilization and Access Act and the CARES Act operate in tandem with the fundamental eligibility requirements of the Federal-State UI program. These requirements include that an individual file certifications with respect to each week of unemployment that is paid and that an individual be able to work and available for work except as specifically provided for in statute. In addition the Continued Assistance 3 Act includes new program integrity requirements for the PUA and PEUC programs with which states must comply. Some states remain in the midst of managing extraordinary workloads due to the effects of the spread of COVID-19. During this time there is a heightened need for states to maintain a steadfast focus on UI functions and activities that ensure program integrity and the prevention and detection of improper payments and fraud across all programs operated within the UI system. UIPL No. 23-20 published on May 11 2020 discusses program integrity for the UI system. UIPL No. 28-20 published on August 31 2020 provides states with funding to assist with efforts to prevent and detect fraud and identity theft and recover fraud overpayments in the PUA and PEUC programs. States play a fundamental role in ensuring the integrity of the UI system. While states have been provided some flexibilities as a result of the COVID-19 pandemic those flexibilities are generally limited to emergency temporary actions as needed to respond to the spread of COVID-19. States must ensure that individuals only receive benefits in accordance with federal and state law. ETA strongly encourages states to utilize the tools resources and services of the UI Integrity Center funded by the Department and operated in partnership with the National Association of State Workforce Agencies. One of the key assets to support addressing fraud is the Integrity Data Hub IDH which includes a variety of data sets to prevent and detect fraud based on identity theft at the time of application including an identity verification solution. ETA also encourages states to consult with the UI Integrity Center on data analytics and to prioritize IDH hits as well as on other tools and solutions available through the private sector that complement the IDH. In UIPL No. 28-20 the Department explained its expectation that states connect to the IDH no later than March 31 2021 and encouraged states to use their share of the funding provided through that UIPL to support IDH connection as soon as possible. There is also a range of other tools on the market that states should consider when combating fraud and ensuring program integrity. 4. Guidance on Changes to PUA in the Continued Assistance Act. An overview of key changes to the PUA program is provided below. The Agreement Implementing the Relief for Workers Affected by Coronavirus Act that was signed by each state in March 2020 remains in effect along with the modifications and extensions required as a result of these updated provisions. When determining the appropriate course of action in administering the PUA program states should first consult Section 2102 of the CARES Act as amended by the Continued Assistance Act and the subsequent operating instructions provided by the Department. Where the CARES Act as amended and the operating instructions are silent states should refer to the Disaster Unemployment Assistance DUA regulations at 20 C.F.R. Part 625. All other PUA program 4 parameters as provided in Section 2102 of the CARES Act PUA agreements UIPL Nos. 16- 20 16-20 Change 1 16-20 Change 2 and 16-20 Change 3 remain the same. Detailed instructions for implementing the amendments are included in Attachment I Pandemic Unemployment Assistance PUA Implementation and Operating Instructions and Attachment II Handbook 401 Instructions for ETA 902 Pandemic Unemployment Assistance. Attachment III provides a matrix of eligibility requirements and benefit availability dependent on the claim filing date. Attachment I Pandemic Unemployment Assistance PUA Implementation and Operating Instructions is structured to enable states to know what guidance is new what is modified and what has not changed. a. Changes to Program Dates and Benefit Duration. i. Extension of Program. Section 201 a of the Continued Assistance Act extends PUA authorization through weeks of unemployment ending on or before March 14 2021. This means that for states where weeks of unemployment end on a Saturday the last week payable is the week ending March 13 2021 and for states with weeks ending on Sunday the last week payable is the week ending March 14 2021. Refer to section C.14. of Attachment I to this UIPL for additional detail. ii. Phaseout Period. Section 201 a 3 of the Continued Assistance Act provides a phaseout period for individuals receiving PUA as of the end of the program March 13 2021 for states with a Saturday week ending date and March 14 2021 for states with a Sunday week ending date who have not yet exhausted their PUA entitlement. These individuals may continue to collect PUA for any week in which they have remaining entitlement and are otherwise eligible except that no PUA is payable for any week beginning after April 5 2021 April 10 2021 for states with a Saturday week ending date and April 11 2021 for states with a Sunday week ending date . Refer to section C.5. of Attachment I to this UIPL for additional detail. States may not accept any new PUA claims for weeks of unemployment after March 13 2021 for states with a Saturday week ending date and March 14 2021 for states with a Sunday week ending date. iii. New Limitations on Backdating. As discussed in Question 4 of Attachment I to UIPL No. 16-20 Change 1 individuals filing for PUA must have their claims backdated to the first week during the Pandemic Assistance Period PAP that the individual was unemployed partially unemployed or unable or unavailable to work because of a COVID-19 related reason listed in Section 2102 a 3 A ii I of the CARES Act. However Section 201 f of the Continued Assistance Act limits the availability of backdating for claims that are filed after December 27 2020 to no earlier than December 1 2020. Refer to section C.15. of Attachment I to this UIPL for additional detail. 5 iv. Modification to Benefit Duration. The maximum number of weeks of PUA benefits is modified to increase from 39 weeks to 50 weeks. The number of weeks available continues to be reduced by any weeks of regular UC and Extended Benefits EB that the individual receives during the PAP. Individuals may only collect these additional 11 weeks of benefits with respect to weeks of unemployment beginning on or after December 27 2020. Refer to section C.17. of Attachment I to this UIPL for additional detail. v. Notification Requirements. States must re-determine existing PUA claims to reflect the additional weeks of potential eligibility. States must also identify each individual with a PUA claim on file and advise these individuals that they are potentially eligible for additional PUA benefits. States must provide these individuals with instructions for reopening their PUA claims if the individual has stopped collecting PUA . Refer to section C.28 of Attachment I of this UIPL for additional detail. b. New Requirement for Individuals to Submit Documentation of Employment or Self-Employment. Section 241 of the Continued Assistance Act creates a new requirement for individuals to submit documentation substantiating employment or self-employment. Refer to section C.2. of Attachment I to this UIPL for additional detail. i. Filing New Applications for PUA. Individuals filing a new PUA application on or after January 31 2021 regardless of whether the claim is backdated are required to provide documentation within 21 days of application or the date the individual is directed to submit the documentation by the State Agency whichever is later. The deadline may be extended if the individual has shown good cause for not submitting documentation under state UC law within 21 days. ii. Filing Continued Claims for PUA. Individuals who applied for PUA before January 31 2021 and receive a payment of PUA on or after December 27 2020 regardless of which week ending date is being paid are required to provide documentation substantiating employment or self-employment or the planned commencement of employment or self-employment within 90 days of application or when directed to submit the documentation by the State Agency whichever is later. The deadline may be extended if the individual has shown good cause under state UC law. c. Continued Eligibility Requirements. Individuals must provide a self-certification that their unemployment partial unemployment or inability or unavailability to work is specifically attributable to one or more of the COVID-19 related reasons specified in section 2102 a 3 A ii I aa through kk of the CARES Act and must identify that specific reason for each week that PUA is claimed. This applies with respect to weeks beginning on or after January 26 2021 30 days after the enactment of the Continued Assistance Act . 6 Additionally in the case of states that made a good faith effort to implement the PUA program prior to the effective date of this provision an individual will not be denied benefits for the weeks ending prior to January 26 2021 solely for failing to submit a weekly self-certification. Refer to section C.7. of Attachment I to this UIPL for additional detail. d. Overpayment Waiver Authority. Section 201 d of the Continued Assistance Act permits a state to waive repayment of a PUA overpayment if the state determines that i the overpayment was without fault on the part of the individual and ii that repayment would be contrary to equity and good conscience. Refer to section C.21.b. of Attachment I to this UIPL for additional detail. e. Hold Harmless Provision for Individuals who are Provided Additional Benefit Amounts on a Previous PEUC claim. Under the CARES Act an individual must have exhausted all entitlement to regular UC PEUC and EB before filing for PUA. However section 201 e of the Continued Assistance Act provides a hold harmless provision for an individual who previously exhausted PEUC and is now receiving PUA but as a result of Section 206 b of the Continued Assistance Act becomes eligible for additional amounts of PEUC beginning on or after December 27 2020. Refer to section C.6. of Attachment I to this UIPL for additional detail. f. Requirement to Verify Identity. Section 242 of the Continued Assistance Act requires that states must include procedures for identity verification or validation for timely payment to the extent reasonable and practicable by January 26 2021 30 days after the enactment of the Continued Assistance Act to ensure that they have an adequate system for administering the PUA program. Refer to section C.3. of Attachment I to this UIPL for additional details. g. Technical Correction for the Commonwealth of Northern Mariana Islands CNMI . Section 265 of the Continued Assistance Act provides that a Commonwealth Only Transitional Worker CW-1 shall be considered a qualified alien for purposes of eligibility under the PUA and FPUC programs. This change primarily impacts claims in the Commonwealth of the Northern Mariana Islands. Refer to section C.8. of Attachment I to this UIPL for additional details. h. Appeals Processes. Section 201 c of the Continued Assistance Act provides that individuals may appeal their rights on any PUA determination or redetermination made by the state and that all levels of appeals filed in the 50 states the District of Columbia the Commonwealth of Puerto Rico and the U.S. Virgin Islands shall be carried out by the applicable state that made the determination or redetermination and shall be conducted in the same manner and to the same extent as the state would conduct appeals of determinations and redeterminations regarding rights to regular compensation under state law. 7 With respect to any appeals filed in Guam American Samoa the Commonwealth of the Northern Mariana Islands the Federated States of Micronesia Republic of the Marshall Islands and the Republic of Palau all levels of appeals shall be carried out by the applicable entity within the territory in the same manner and to the same extent as appeals of regular unemployment compensation conducted under the unemployment compensation law of Hawaii. Refer to section C.20. of Attachment I to this UIPL for additional detail. 5. Fraud Penalties for PUA Overpayments. Consistent with the requirements of Section 251 of the Trade Adjustment Assistance Extension Act of 2011 TAAEA Pub. L. 112-40 2011 if a state determines that it made an erroneous PUA payment to an individual due to fraud committed by the individual the state must apply a minimum 15 percent penalty on such individual. Refer to Section C.21 of Attachment I to this UIPL for additional detail. 6. Changes to the PUA Activity Report ETA 902P. ETA has revised the ETA 902P report to include additional data items that will be used to assess state overpayment recovery efforts for the PUA program inform policy makers about the program determine the effectiveness of identity theft prevention efforts and assess additional program integrity needs. Please refer to Section E of Attachment I to this UIPL for additional detail. 7. Inquiries. We encourage states to contact the Department for technical assistance. Please direct inquiries to covid-19 dol.gov with a copy to the appropriate ETA Regional Office. 8. References. Continued Assistance to Unemployed Workers Act of 2020 Continued Assistance Act Coronavirus Aid Relief and Economic Security CARES Act of 2020 Pub. L. 116- 136 Title II Subtitle A Section 251 of the Trade Adjustment Assistance Extension Act of 2011 TAAEA Pub. L. 112-40 Section 303 a 1 3 and 11 of the Social Security Act 5 C.F.R. Subpart C 845.303 - Standards for Waiver of Overpayments 20 C.F.R. Part 625 -Disaster Unemployment Assistance UIPL No. 09-21 Continued Assistance for Unemployed Workers Act of 2020 Continued Assistance Act Summary of Key Unemployment Insurance UI Provisions issued December 30 2020 https wdr.doleta.gov directives corr doc.cfm DOCN 3831 UIPL 28-20 Addressing Fraud in the Unemployment Insurance UI System and Providing States with Funding to Assist with Efforts to Prevent and Detect Fraud and Identity Theft and Recover Fraud Overpayments in the Pandemic Unemployment Assistance PUA and Pandemic Emergency Unemployment Compensation PEUC Programs August 31 2020 https wdr.doleta.gov directives corr doc.cfm DOCN 8044 8 UIPL No. 23-20 Program Integrity for the Unemployment Insurance UI Program and the UI Programs Authorized by the Coronavirus Aid Relief and Economic Security CARES Act of 2020 Federal Pandemic Unemployment Compensation FPUC Pandemic Unemployment Assistance PUA and Pandemic Emergency Unemployment Compensation PEUC Programs issued May 11 2020 https wdr.doleta.gov directives corr doc.cfm DOCN 4621 UIPL No. 16-20 Coronavirus Aid Relief and Economic Security CARES Act of 2020 Pandemic Unemployment Assistance PUA Program Operating Financial and Reporting Instructions issued April 5 2020 https wdr.doleta.gov directives corr doc.cfm DOCN 4628 UIPL No. 16-20 Change 1 Coronavirus Aid Relief and Economic Security CARES Act of 2020 Pandemic Unemployment Assistance PUA Program Reporting Instructions and Questions and Answers issued April 27 2020 https wdr.doleta.gov directives corr doc.cfm DOCN 5899 UIPL No. 16-20 Change 2 Coronavirus Aid Relief and Economic Security CARES Act of 2020 Pandemic Unemployment Assistance PUA Program Additional Questions and Answers issued July 21 2020 https wdr.doleta.gov directives corr doc.cfm DOCN 5479 UIPL No. 16-20 Change 3 Eligibility of Individuals who are Caregivers for Pandemic Unemployment Assistance in the Context of Scholl Systems Reopening issued August 27 2020 https wdr.doleta.gov directives corr doc.cfm DOCN 3849 and UIPL 03-20 Minimum Disaster Unemployment Assistance DUA Weekly Benefit Amount January 1 - March 31 2020 issued December 12 2019 https wdr.doleta.gov directives corr doc.cfm docn 3675. 9. Attachments. Attachment I Pandemic Unemployment Assistance PUA Implementation and Operating Instructions Attachment II UI Report Handbook No. 401 ETA 902P Pandemic Unemployment Assistance Attachment III Processing PUA Claims Based on the Claim Filing Date Attachment IV PUA Provisions under the Consolidated Appropriations Act 2021. Division N Title II Subtitle A Chapter I Continued Assistance to Unemployed Workers Act of 2020.