UIPL_2_12_Chg1_Acc.pdf

ETA Advisory File Text

RESCISSIONS None EXPIRATION DATE CONTINUING EMPLOYMENT AND TRAINING ADMINISTRATION ADVISORY SYSTEM U.S. DEPARTMENT OF LABOR Washington D.C. 20210 CLASSIFICATION UI CORRESPONDENCE SYMBOL DL DUIO DATE August 7 2012 ADVISORY UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 02-12 Change 1 TO STATE WORKFORCE AGENCIES FROM JANE OATES s Assistant Secretary SUBJECT Unemployment Compensation UC Program Integrity Amendments made by the Trade Adjustment Assistance Extension Act of 2011 TAAEA -- Questions and Answers 1. Purpose . To respond to questions from state workforce agencies about the UC program integrity provisions of the TAAEA. 2. References TAAEA Pub. L. 112-40 . Sections 303 and 453A of the Social Security Act SSA 42 U.S.C. 503 and 42 U.S.C. 653A Sections 3303 3304 and 3309 of the Federal Unemployment Tax Act FUTA 26 U.S.C. 3303 3304 and 3309 Unemployment Insurance Program Letter UIPL No. 26 -85 Interest on Overpayment of Federal Claims and UIPL No. 02-12 Unemployment Compensation UC Program Integrity Amendments made by the Trade Adjustment Assistance Extension Act of 2011 TAAEA . 3. Background . TAAEA amended sections 303 and 453A of the SSA and sections 3303 3304 and 3309 of FUTA to a. Require states to impose a monetary penalty an amount not less than 15 percent of the erroneous payment on claimants whose fraudulent acts resulted in overpayments b. Prohibit states from providing relief from charges to an employer s UC account when a UC overpayment result s from an employer or an employer s agent failing to respond timely or adequately to a request for information by the state agency i.e. employer or agent at fault and at minimum the employer or its agent has established a pattern of failing to respond to such requests and 2 c. Expand the scope of employees that employers report to a state directory of new hires as newly hired employees to also include individuals who were previously employed by the employer but who have been separated from the employer for at least 60 consecutive days. The first two changes may require states to amend their state UC law with respect to penalty assessments on fraud overpayments and noncharging provisions for employers. State provisions implementing these two Federal amendments must apply to overpayments established after October 21 2013. The Federal amendment on newly hired employees became effective April 21 2012 unless the U.S. Department of Health and Human Services HHS which is responsible for the n ew hires data determined that the state must amend its state law to meet the new reporting requirement. In that case the state has until the first day of the second calendar quarter that follows the close of the first regular session of the state legislature beginning after October 21 2011 to amend its UC law. If the state has a 2-year legislative session each year of the session is considered a separate session. HHS will be issuing guidance on this requirement. 4. Action Requested . State Administrators are requested to provide this guidance to appropriate staff. 5. Inquiries . Questions should be directed to the appropriate Regional Office. 6. Attachment . Unemployment Compensation UC Program Integrity Amendments made by the Trade Adjustment Assistance Extension Act of 2011 Questions and Answers.