UIPL_04-17_Change_1.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 DL DATE August 3 2021 RESCISSIONS UIPL No. 29-05 EXPIRATION DATE Continuing ADVISORY UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 04-17 Change 1 TO STATE WORKFORCE AGENCIES FROM SUZAN G. LEVINE Acting Assistant Secretary SUBJECT Requirement for States to Refer Allegations of Unemployment Compensation UC Fraud Waste Abuse Mismanagement or Misconduct to the Department of Labor s Department Office of Inspector General s EDOi-OId and to Disclose Information Related to the Coronavirus Aid Relief and Economic Security CARES Act to DOi-OId for Purposes of UC Fraud Investigation and Audits 1.Purpose. This Unemployment Insurance Program Letter UIPL 1 advises states that they must refer allegations which they reasonably believe constitute UC fraud waste abuse mismanagement or misconduct to DOL-OIG 2 rescinds UIPL No. 29-05 3 provides revised guidance that supersedes Section 5 of UIPL No. 04-17 and 4 requires states to disclose confidential UC information related to the Coronavirus Aid Relief and Economic Security CARES Act as amended to the DOL-OIG for the purpose of UC fraud investigations and audits for the entire pandemic relief period. 2.Action Requested. The Department s Employment and Training Administration ETAF requests that State Administrators provide the information in this UIPL to appropriate program and other staff in state workforce agencies involved in the cross-functional integrity task force Benefit Payment Control Internal Security IS and other integrity-related operations. 3.Summary and Background. a.Summary This UIPL provides a description of state responsibilities for notifying DOi- OId of allegations which the state reasonably believes constitutes UC fraud waste abuse mismanagement or misconduct. Attachment I provides a memorandum from DOi-OIG that i describes DOL-OIG s process for accepting and reporting fraud waste abuse or misconduct referred by states ii describes DOL-OIG s process for notifying states of the DOi-OIG s information requirements and iii sets forth states responsibilities under the Inspector General IG Act. 2 This UIPL re scinds and replaces UIPL No. 29 -05 Memorandum of Understanding Regarding Unemployment Insurance Criminal Investigations between the U.S. Department of Labor s Office of Inspector General and the Employment and Training Administration issued August 2 2005. This UIPL also supersedes Section 5 of UIPL No. 04 -17 Disclosure of Confidential Unemployment Compensation UC Information to the Department of Labor s Office of Inspector General OIG issued on December 16 2016 . Additionally Section 5 of t his U IPL expands the description of responsibilities in Section 4 of this UIPL to require disclosure of confidential UC information for both UC fraud investigations and audits within the context of the CARES Act as amended including administering Pandemic Unemployment Assistance PUA Federal Pandemic Unemployment Compensation FPUC Pandemic Emergency Unemployment Compensation PEUC Mixed Earners Unemployment Compensation MEUC and receivin g full federal funding for the first week of regular UC for states with no waiting week in accordance with Section 2105 of the CARES Act as amended. This required disclosure includes all weeks of unemployment covered by the CARES Act programs which for most states will be weeks of unemployment beginning after January 27 2020 through weeks of unemployment ending before September 6 2021. This includes claims for these weeks of unemployment even if states are not able to process them until after Septembe r 6 2021. b. Background As discussed in UIPL No. 04 -17 states must disclose confidential UC information to DOL -OIG for the purpose of investigating UI fraud as a condition for proper and efficient administration of the UC program under Section 303 a 1 of the Social Security Act SSA . Furthermore as ETA Grant Recipients states are responsible for reporting instances of fraud as described in Training and Employment Guidance Letter TEGL No . 02-12 Employment and Training Administration ETA Grant Recipient Responsibilities for Reporting Instances of Suspected Fraud Program Abuse and Criminal Conduct . DOL -OIG has a statutory mandate under the Inspector General Act Pub. L. 95 -452 as amended other laws and delegations by the U.S. Attorney Gener al and Secretary of Labor to detect and prevent fraud waste and abuse in the Department s programs and operations. To carry out this mandate DOL -OIG has the authority to conduct audits and investigations to discover fraud waste and abuse or inefficie ncies and to refer any findings to the appropriate program manager for action or to the U.S. Department of Justice U.S. Attorney or cognizant prosecutor for criminal or civil prosecution. ETA and states must continuously assess the UI program s vulnerabilities and seek new ways to ensure its integrity. In 2005 ETA and DOL -OIG executed a Memorandum of Understanding MOU to highlight DOL -OIG s role in investigating cases of fraud and other crimes in the UI pr ogram. The MOU defined the types of fraud required to be reported to the DOL -OIG and established monetary thresholds for states to refer cases to DOL -OIG . DOL -OIG agreed to assume responsibility for investigating certain fraud 3 cases that meet the establi shed criteria and upon request to a ssist states in certain other incidences of fraud or abuse. DOL -OIG plays an essential role in working collaboratively with states to investigate fraud in state UI programs. Over the years joint investigations between DOL -OIG and states have led to successful prosecutions and monetary recoveries. Many of these investigations include successfully pursued sophisticated multi -state fraud schemes by organized criminal groups inv olving millions of dollars in fraudulent claims. Additionally t he CARES Act Pub. L. 116 -136 enacted on March 27 2020 provide s among other things for states to enter into an agreement with the Secretary to administer the PUA FPUC and PEUC progr ams. States without a waiting week may also enter into an agreement with the Secretary to receive full federal funding of the first week of compensable regular UC . Section 2115 of the CARES Act i ncluded an appropriation to DOL -OIG to carry out audits in vestigations and other oversight activities related to the UI provisions of the CARES Act. Section 2116 of the CARES Act provides authority for ETA to issue operating instructions or other guidance necessary to carry out the UI - relat ed provisions of the CARES Act. See UIPL No. 14 -20. The Continued Assistance for Unemployed Workers Act of 2020 Continued Assistance Act set forth at Division N Title II Subtitle A of the Consolidated Appropriations Act 2021 Pub. L. 116 -260 extended the dates for st ates to administer these programs and provided for states to also enter into an agreement with the Secretary to administer the MEUC program. See UIPL No. 09 -21. The American Rescue Plan Act of 2021 ARPA Pub. L. 117 -2 further extended the dates for states to receive federal funding for the first compensable waiting week for regular UC and to administer the PUA FPUC PEUC and MEUC programs thr ough September 6 2021. See UIPL No. 14 -21. 4. Guidance . States must maintain a steadfast focus on UI program integrity broadly and the prevention and detection of fraud and improper payments across all UI programs. States must adhere to federal laws and guidance establishing program eligibility requirements and the fundamental processes that ensure accurate benefit payments. UIPL No. 29 -05 is now rescinded . a. State Responsibilities . States are required to comply with the reporting and UC information disclosure processes outlined in the attached DOL -OIG memorandum . These reporting processes apply to all new and existing allegations which the state reasonably believes constitute fraud waste abuse mismanagement or misconduct . This section supersedes Section 5 of UIPL No. 04 -17. There is no federal requirement that state UI agencies must enter into an agreement with DOL -OIG before any disclosures of confidential UC information are made for the purposes of investigating UC fraud including in 20 C.F.R. Part 603. In addition if a state makes a permissive disclosure of confidential UC information under 20 C.F.R. Part 603.5 i for audits of UC programs there is also no federal requirement for an agreement . 4 States also have a responsibility to report without delay any suspected cases of fraud or abuse to their own state investigative agencies as required by state laws or regulations. b. Payment of Costs for Disclosure of Information . Reimbursement for the costs of states providi ng the information to DOL -OIG is not required as disclosure of this information for the purpose of investigating UC fraud is necessary for the proper and efficient administration of the UC program. In addition if a state makes a permissive disclosure of confidential UC information under 20 C.F.R. 603.5 i for audits reimbursement for the costs of states providing the information to DOL -OIG is not required. See 20 C .F.R. 603.8. c. Redisclosure Parameters . The DOL -OIG memorandum provided in Attachment I provides that DOL -OIG will redisclose data and information only when necessary for purposes consistent with the IG Act Privacy Act and other applicable federal laws and regulations . For purposes of UC programs this includes the regulations set fort h at 20 C.F.R. 603.9 c . 5. Guidance Specific to Administration of the CARES Act UC P rograms . Within the context of administering PUA FPUC PEUC MEUC and full federal funding of the first week of regular UC for states with no waiting week that is reimbursed in accordance with Section 2105 of the CARES Act as amended states must disclos e all information to DOL - OIG for the purposes of investigating UC fraud and for audits of UC programs . W ithin this context states must adhere to the guidance provided in Section 4 of this UIPL . States must also disclose all confidential UC information including for the regular UC program for audits for weeks covered by the CARES Act programs which for most states will be weeks of unemployment beginning after January 27 2020 through weeks of unemployment ending before September 6 2021. This includes claims for these weeks of unemployment that states are not able to process until after September 6 2021. Further t here is no federal requirement that state UI agencies must enter into an agreement with DOL -OIG before any disclosures of confidential UC information are made for the purposes of investigating UC fraud and for audits of UC programs including in 20 C.F.R. Part 603 . 6. Inquiries . Please d irect inquiries to the appropriate ETA Regional Office. 7. References . American Rescue Plan Act of 2021 ARPA including Title IX Subtitle A Crisis Support for Unemployed Workers Pub. L. 117 -2 Consolidated Appropriations Act 2021 including Division N Title II Subtitle A the Continued Assistance for Un employed Workers Act of 2020 Continued Assistance Act Pub. L. 116 -260 Coronavirus Aid Relief and Economic Security CARES Act including Title II Subtitle A Relief for Workers Affected by Coronavirus Act Pub. L. 116 -136 5 Section 303 a 1 SS A 42 U.S.C. 503 a 1 Inspector General Act of 1978 Pub. L. 95 -452 as amended 20 C.F.R. Part 603 Federal -State Unemployment Compensation UC Program Confidentiality and Disclosure of State UC Information UIPL No. 14 -21 American Rescue Plan Act of 2021 ARPA Key Unemployment Insurance UI Provisions issued March 15 2021 https wdr.doleta.gov directives corr doc.cfm DOCN 5669 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 do c.cfm DOCN 3831 UIPL No. 14 -20 Coronavirus Aid Relief and Economic Security CARES Act of 2020 Summary of Key Unemployment Insurance UI Provisions and Guidance Regarding Temporary Emergency State Staffing Flexibility issued April 2 2020 https wdr.doleta.gov directives corr doc.cfm DOCN 3390 UIPL No. 04-17 Disclosure of Confidential Unemployment Compensation UC Information to the Department of Labor s Office of Insp ector General OIG issued December 16 2016 https wdr.doleta.gov directives corr doc.cfm DOCN 7523 TEGL No. 02 -12 Employment and Training Administration ETA Grant Recipient Responsibilities for Reporting Instances of Suspected Fraud Program Abuse and Criminal Conduct issued July 12 2012 https wdr.doleta.gov directives corr doc.cfm DOCN 9222 UIPL No. 29 -05 Memorandum of Understanding Regarding Unemployment Insurance Criminal Investigations Between the U.S. Department of Labor s Office of Inspector General and the Employment and Training Administration issued August 2 2005 https wdr.doleta.gov directives corr doc.cfm DOCN 2104 and UIPL No. 04 -01 Payment of Compensation and Timeliness of Determinations during a Continued Claim Series issued October 27 2000 https wdr.doleta.gov directives corr doc.cfm DOCN 1746 . 8. Attachment s . Attachment I DOL -OIG Memorandum dated July 30 2021 Referral of Suspected Unemployment Insurance Fraud Abuse and Other Misconduct to the U.S. Department of Labor Office of Inspector General and Notification of Requirement for State Unemployment Insurance Information U.S. Department of Labor Office of Inspector General 200 Constitution Avenue N.W. Washington DC 20210 July 30 2021 MEMORANDUM FOR SUZAN G . LEVINE Acting Assistant Secretary Employment and Training Administration FROM MICHAEL C. MIK ULKA Assistant Inspector General U.S. Department of Labor Office of Inspector General Office of Investigations-Labor Racketeering Fraud SUBJECT Referral of Sus pected Unemployment Insurance Fraud Abuse and Other Misconduct to the U.S. Department of Labor Office of Inspector General and Notification of Requirement for State Unemployment Insurance Information The U.S. Department of Labor Office of Inspector General DOL-OIG has a statutory mandate under the Inspector General Act IG Act 1 other federal laws and delegations by the U.S. Attorney General and Secretary of Labor to detect and prevent fraud waste and abuse in DOL programs and operations. To carry out this mandate the DOL-OIG is authorized to conduct audits and investigations and refer any findings to the appropriate program manager for action or to the Department of Justice U.S. Attorney or cognizant prosecutor for criminal or civil prosecution. The purpose of this memorandum is to inform SWAs of the DOL- OIG s intake processing and investigation of UI matters referred by SWAs. This memorandum also informs SWAs of the DOL-OIG s notification process for UI information data requirements. I.SWA Notification to the DOL-OIG State workforce ag encies SWAs are obligated to report alleged or suspected unemployment insurance UI fraud misfeasance malfeasance nonfeasance waste and program abuse mismanagement misconduct and other criminal activities to the DOL-OIG to the Employment and Training Administration ETA or both. SW As must also cooperate with the DOL-OIG during its engagements in accordance with the IG Act. When reporting alleg ed or suspected fraud misfeasance malfeasance nonfeasance waste and program abuse mismanagement or misconduct and other criminal activities to the DOL-OIG SWA Administrators or their designees 1 Pub. L. 95 452 92 Stat. 1101 as amended. 2 should be cognizant of the DOL -OIG s criteria specified below. Allegations and suspicions should be promptly reported to the DOL-OIG through the DOL-OIG s regional Special Agent-in-Charge SAC with responsibility over the geographic area that encompasses the cognizant SWA. When reporting to the DOL-OIG any allegations or suspicions that fit the criteria below the SWA Administrator or designee will initiate contact by sending an e- mail to the responsible DOL-OIG SAC. II. Criteria for Reporting to DOL-OIG SWA Administrators or their designees report the following to the DOL-OIG A. Suspected or alleged illegal or fraudulent activity with a loss in excess of 10 000 from the following categories will be reported to the DOL-OIG but with the understanding that upon mutual agreement between the regional DOL-OIG SAC and SWA Administrator the dollar threshold for reporting may be adjusted on a State-by-State or Regional basis for the following programs Unemployment Compensation for Federal Employees UCFE Unemployment Compensation for Ex-Service Members UCX Federal-State Extended Benefits EB Disaster Unemployment Assistance DUA and Any temporary UC program enacted by Congress. B. Suspected or alleged illegal or fraudulent activity in any amount from the following categories Internal and external thefts and embezzlements of UI administrative funds Any matter involving alleged misconduct by a U.S. DOL employee Fictitious fraudulent employer schemes potentially involving multiple states and or international boundaries Schemes involving claims or taxes in multiple states and or international boundaries Multi-claimant or multi-state schemes involving identity theft and Schemes involving counterfeit benefit checks or multi-victim forgery cases such as forged UI weekly certifications and forged UI check cashing. C. For allegations or suspicions related to the UI program that do not meet the criteria above or when there is uncertainty on whether a suspicion or allegation should be reported the SWA Administrator or designee should report the activity as outlined in Section I above to the DOL-OIG to determine if further action is necessary. 3 D. Nothing in this memorandum should be construed to limit the SWAs ability to also report suspected fraud or other matters related to a U.S. DOL program or employee. III. DOL-OIG Notifications of Investigations and Reporting When a suspected fraud matter is referred to the DOL-OIG by an SWA the DOL- OIG will inform the SWA Administrator or designee and ETA Regional Administrator in writing whether the DOL-OIG will initiate an action including an investigation based on the SWA s report. This notification will generally take place within 30 days of a referral being received by the DOL-OIG. If an investigation is initiated the SAC will provide the SWA Administrator and ETA Regional Administrator with a DOL-OIG case number for the matter. In instances where in the opinion of the DOL-OIG a DOL-OIG action or investigation will be furthered by the continuation of payment of benefits the DOL-OIG will notify the SWA Administrator and provide justification for the request. In all instances involving regular State-UI funds the decision to continue to pay benefits or not rests with the SWA Administrator. At its discretion the DOL-OIG may accept an invitation from a SWA or a law enforcement agency to initiate an investigation or conduct joint investigations involving regular state benefits in a single state. When feasible and mutually agreed upon the DOL-OIG will coordinate investigative efforts with the appropriate SWA personnel. DOL-OIG may provide periodic status updates to the SWA Administrator and ETA Regional Administrator as appropriate and when such updates would not interfere with an investigation. When DOL-OIG initiates an investigation as a result of information received from sources other than an SWA the DOL-OIG may as appropriate notify the SWA Administrator or ETA Regional Administrator of the initiation of the investigation and provide periodic updates regarding the investigation so long as such notifications do not interfere with an investigation. SWA and ETA personnel are not authorized to redisclose information received from DOL-OIG regarding ongoing investigations unless the DOL-OIG SAC gives prior written approval. Following completion of an investigation of a suspected fraud matter referred by an SWA the SAC will notify the SWA Administrator and ETA Regional Administrator of the investigation s outcome. In cases involving state employee fraud program weakness or other issues significant to state-UI program management DOL-OIG may provide a memorandum or report to the SWA Administrator and ETA Administrator detailing the results. DOL-OIG may issue a memorandum or report to the responsible U.S. DOL management official in 4 cases involving U.S. DOL employee misconduct. Further if a DOL-OIG investigation audit or other oversight activity discloses any systemic weakness DOL-OIG may provide recommendations for solutions to identified weaknesses. When appropriate in its communications to stakeholders DOL-OIG will acknowledge the contributions of the states and ETA in UI investigations. IV. Notification of DOL-OIG Requirement for SWA Electronic Information The DOL-OIG needs SWA information including electronic data for the performance of its responsibilities pursuant to the IG Act. The DOL-OIG only accesses such data and information when necessary for a purpose authorized by the IG Act and other applicable laws and delegations. SWAs must cooperate with the DOL-OIG. The DOL-OIG will notify SWAs when the DOL-OIG requires ongoing recurring or regularly-scheduled access to SW A electronic information or data. The DOL- OIG will use DOL-OIG Form 202 Notification of DOL-OIG Requirement for State Workforce Agency Electronic Information to notify SWA Administrators of specific access requirements. Using DOL-OIG Form 202 the DOL-OIG will describe the needed electronic information DOL-OIG user access or both. This process does not affect the DOL-OIG s ability to obtain information using other established means including DOL-OIG s ad hoc single requirements to access information systems or obtain data. The DOL-OIG s access to a SWA s electronic information does not change its ownership status. SWA information remains the property of the SWA. In obtaining and handling the information the DOL-OIG will 1. Comply with federal system and data security safeguards including Privacy Act FISMA NIST applicable Executive Orders and OMB guidelines. 2. Only access such data and information when necessary for a purpose authorized by the IG Act and other applicable laws and delegations and comply with DOL-OIG internal procedures and directives regarding necessary approvals for access to and handling and securing of electronic information. 3. Redisclose data and information only when necessary for purposes consistent with the IG Act Privacy Act and other applicable federal laws and regulations as they relate to executive branch agencies in the disclosure of confidential or sensitive information. 4. When required provide SWAs with DOL-OIG s Interconnection Security Standards to ensure secure data access or transfer. 5. Not take any action to compromise system or user operation and performance or create cybersecurity risks to information systems and 5 pro mptly cease access to at-risk systems and notify the system owner when DOL-OIG becomes aware of any such compromise or risk. 6. Complete appropriate training or obtain SWA guidance to understand information in their information systems for user accounts and to the greatest extent possible use the program agency system documentation. 7. Erase destroy copied data records and information when the DOL-OIG no longer needs it in accordance with applicable federal laws and guidelines. 8. Promptly notify SWA system owners when DOL-OIG user account holders can be removed. UNITED STATES DE PARTMENT OF LABOR OFFICE OF INSPECTOR GENERAL NOTIFICATION OF DOL-OIG REQUIREMENT FOR STATE WORKFORCE AGENCY SWA INFORMATION 1. TO The SWA Administrator may forward this Notification to the appropriate Information System point of contact. The Office of the Inspector General U.S. Department of Labor DOL-OIG needs the SWA electronic information described below for the performance of Inspector General responsibilities in accordance with the Inspector General Act of 1978. SWAs must cooperate with the DO L-OIG on UI -related audits and investigations. 2. Description of Electronic Information or System The DOL-OIG m ay attach additional information on required data elements recurrence of data transfers or interconnection security standards. 3. Obtain Transfer Method 4. DOL-OIG Main Point of Contact 5. Name s and Title s of DOL-OIG Personnel for System Accounts if applicable 6. Information System Due by date The DOL-OI G will Comply with federal system and data security safeguards including Privacy Act FISMA NIST applicable Executive Orders an d OMB guidelines. Only access such data and information when necessary for a purpose authorized by the Inspector General Act and other applicable laws and delegations and comply with OIG internal procedures and directives regarding necessary approvals for access to and handling and securing of electronic information. Redisclose data and information only when necessary for purposes consistent with the IG Act Privacy Act and other applicable federal laws and regulations as they relate to executive branch agencies in the disclosure of confidential or sensitive information. When required provide SWAs with DOL-OIG s Interconnection Security Standards to ensure secure data access or transfer. Not take any ac tion to compromise system or user operation and performance or create cybersecurity risks to information systems and promptly cease access to at-risk systems and notify the system owner when OIG becomes aware of any such compromise or risk. Complete appropriate training or obtain SWA guidance to understand information in their information systems f or user accounts and to the greatest extent possible use the program agency system doc umentation. Erase destroy copied data records and information when the DOL-OIG no longer needs it i n accordance with applicable federal laws and guidelines. Promptly notify SWA system owners when DOL-OIG user account hol ders can be removed. 7. Issued By 8. TO BE COMPLETED BY STATE ADMINISTRATOR OR DESIGNEE. RETURN THI S TO DOL-OIG. The specified information data or system access was provided to on . I certify that the information provided to the DOL-OIG is accurate complete and true to the best of my belief and knowledge. Signature Name of State Administrator or Designee