UIPL_24-20_Change_2.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 April 7 2021 ADVISORY UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 24-20 Change 2 TO FROM SUBJECT STATE WORKFORCE AGENCIES SUZAN G. LEVINE Principal Deput y Assistant Secretary American Rescue Plan Act of 2021 ARPA Provisions Affecting the Federal- State Extended Benefits EB Program 1.Purpose. This Unemployment Insurance Program Letter UIPL provides guidance on certain amendments related to the EB program contained in the American Rescue Plan Act of 2021 Public Law Pub. L. 117-2. 2.Action Requested. The Department of Labor s Department Employment and Training Administration ETA requests State Workforce Administrators to provide the information contained in this UIPL to appropriate program and other staff in state workforce systems as they implement the changes to the EB program. 3.Summary and Background. a.Summary On March 11 2021 the President signed ARPA into law. The law modifies and extends certain EB-related provisions in the Emergency Unemployment Insurance Stabilization and Access Act of 2020 EUISAA Pub. L. 116-127 the Coronavirus Aid Relief and Economic Security CARES Act EPub. L. 11S-13S and the Continued Assistance to Unemployed Workers Act of 2020 Continued Assistance Act EPub. L. 11S-26M . This includes full funding of EB and continuation of the coordination rule for the Pandemic Emergency Unemployment Compensation PEUC program and EB. b. Background On March 18 2020 the President signed the Families First Coronavirus Response Act Pub. L. 116-127 which includes EUISAA set out in Division D. Section 4 105 of EUISAA provides full federal funding under certain circumstances of 1 shara ble regular compensation and sharable extended compensation and 2 temporary federal matching for the first week of EB for states with no waiting week. Under EUISAA these provisions were set to expire on December 31 2020. The Continued Assistance Act extended the availability of these reimbursements as described above to March 14 2021. ARPA further extends these provisions through weeks of unemployment beginning before September 6 2021. RESCISSIO NS EXPIRATION DATE None Continuing 2 On March 27 2020 the President signed the CARES Act Pub. L. 113-136 which includes the Relief for Workers Affected by Coronavirus Act set out in Title II Subtitle A. Section 2107 of the CARES Act created PEUC which provides additional weeks of benefits to individuals who exhaust regular unemployment compensation UC . The Continued Assistance Act amended the relationship between PEUC and EB by adding a special rule related to an individual s eligibility for EB. A similar special rule was included in ARPA. Additionally the Continued Assistance Act provides optional time-limited and temporary waiver authority regarding the 13-week off period in Section 203 b 1 B of the Federal-State Extended Unemployment Compensation Act of 1970 EUCA if permitted by state law. This optional time-limited and temporary waiver is available for the purpose of determining if a state is in an EB period during the period beginning on November 1 2020 and ending December 31 2021. UIPL No. 24-20 Change 1 provides model language for states related to this provision. Lastly the additional 50 percent authorized by EUISAA the Continued Assistance Act and ARPA is not subject to sequestration however the 50 percent application to the permanent EB program as authorized in the EUCA remains subject to sequestration. Sequestration is discussed in more detail in UIPL No. 12-21 published on January 19 2021. Importance of Program Integrity. Addressing improper payments and fraud is a top priority for the Department and the entire UI system. States play a fundamental role in ensuring the integrity of the UI system. Especially during this time of extraordinary workloads states should 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 while ensuring that legitimate claimants are able to swiftly access benefits during this critical time. It is critical that states implement processes that ensure payments are being made only 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 or stolen identities. Additionally we remind states of UIPL No. 23- 20 regarding program integrity. 4. Federal Funding of EB and Program Eligibility Requirements. a. Full Federal Funding of EB. Section 9022 of ARPA amended two provisions in Section 4105 of EUISAA extending certain federal financing provisions of EB as set out below. These reimbursements are discussed in more detail in UIPL No. 13-20 published on March 22 2020 UIPL No. 24-20 published on May 14 2020 and UIPL No. 24-20 Change 1 published on December 31 2020. ARPA simply extends the availability of these reimbursements as described. 3 i. Extension of Full Federal Funding Period for Sharable Costs. Full federal funding of sharable regular compensation and sharable extended compensation for eligible states is extended through weeks of unemployment beginning before September 6 2021. In states where the week of unemployment ends on a Saturday the last week of unemployment for which full federal funding is available is the week ending on September 11 2021. In states where the week of unemployment ends on a Sunday the last week of unemployment for which full federal funding is available is the week ending on September 5 2021. Although the extension of full federal funding of shareable extended compensation and shareable regular compensation was not signed into law until March 11 2021 under Section 9022 b of ARPA the extension is effective as if included in the enactment of the Families First Coronavirus Response Act Public Law 116-127 . The Department interprets this to mean that full federal funding is retroactive to weeks of unemployment beginning after March 18 2020. Therefore there is no longer a gap between the expiration of the provisions as described in UIPL 24-20 and the extension of such provisions by ARPA as described in this UIPL. However while ARPA retroactively extended the full federal funding of sharable extended benefits the retroactive extension of the funding level does not prevent a state that previously began a mandatory 13-week off period from having to either 1 serve the 13-week off period or 2 adopt the optional time-limited and temporary waiver of the 13-week off period as authorized by Section 266 of the Continued Assistance Act as described in UIPL 24-20 Change 1. ii. Extension of Full Federal Funding Period for the First Week of EB in States without a Waiting Week. Temporary federal matching for the first week of EB for states with no waiting week is extended to weeks of unemployment beginning before September 6 2021. In states where the week of unemployment ends on a Saturday the last week of unemployment for which this funding is available is the week ending on September 11 2021. In states where the week of unemployment ends on a Sunday the last week of unemployment for which this funding is available is the week ending on September 5 2021. Under ARPA full federal funding is provided retroactively to weeks of unemployment beginning after March 18 2020. Note that this is a separate provision from the full federal funding of the first week of compensable regular UC which is provided for in the CARES Act and discussed in more detail in Section 4.c.iv. of UIPL No. 14-21. b. Coordination Rules for PEUC and EB. Sections 9016 c and d of ARPA amended Section 2107 a of the CARES Act as amended regarding EB eligibility for certain individuals. i. Requirement for Individuals Receiving EB to Exhaust EB before Collecting Additional Weeks of PEUC. Pursuant to Section 9016 c of ARPA if an individual previously exhausted PEUC and began receiving EB they must exhaust EB before 4 being eligible to receive the additional amount of PEUC now available as a result of ARPA. This applies to all individuals receiving EB for the week of unemployment that includes March 11 2021 the date on which ARPA was enacted . As such if an individual did not receive EB for the week ending March 13 2021 then the individual must resume their prior PEUC claim with the amounts augmented by the ARPA. ii. Related EB Provision. As provided for under Section 206 c 2 B of the Continued Assistance Act at a state s option an individual may be considered eligible for EB after they exhaust PEUC provided that such a week occurs during an EB period. This applies even if the individual s benefit year has expired provided the state is in an EB period as of the date the individual exhausts PEUC. Section 9016 d of ARPA extends the application of this provision to weeks of unemployment beginning before September 6 2021. In states where the week of unemployment ends on a Saturday this provision may apply to PEUC claims exhausting on or before week ending September 11 2021. In states where the week of unemployment ends on a Sunday this provision may apply to PEUC claims exhausting on or before week ending September 5 2021. 5. Inquiries. Please direct inquiries to covid-19 dol.gov with a copy to the appropriate ETA Regional Office. 6. References. American Rescue Plan Act of 2021 ARPA including Title IX Subtitle A Crisis Support for Unemployed Workers Pub. L. 117-2 Continued Assistance for Unemployed Workers Act Continued Assistance Act of 2020 enacted on December 27 2020 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 Families First Coronavirus Response Act including Division D Emergency Unemployment Insurance Stabilization and Access Act of 2020 EUISAA Pub. L. 116-127 Federal-State Extended Unemployment Compensation Act of 1970 EUCA 26 U.S.C. 3304 note 20 C.F.R. Part 615 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. 12-21 Implementation of Sequestration under the Budget Control Act of 2011 BCA for Mandatory Unemployment Insurance Programs for Fiscal Year FY 2021 issued January 19 2021 https wdr.doleta.gov directives corr doc.cfm DOCN 9913 5 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 No. 24-20 Change 1 Continued Assistance for Unemployed Workers Act Continued Assistance Act of 2020 - Provisions Affecting the Federal-State Extended Benefits Program issued December 31 2020 https wdr.doleta.gov directives corr doc.cfm DOCN 7779 UIPL No. 24-20 Temporary Changes to the Federal-State Extended Benefits EB Program in Response to the Economic Impacts of the Coronavirus Disease 2019 COVID-19 Pandemic Emergency issued May 14 2020 https wdr.doleta.gov directives corr doc.cfm DOCN 7132 and 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. 7. Attachments. Attachment I Statutory Language of Sections 9016 and 9022 of the American Rescue Plan Act of 2021. I-1 Attachment I to UIPL No. 24-20 Change 2 Statutory Language of Sections 9016 and 9022 of the American Rescue Plan Act of 2021 SEC. 9016. EXTENSION OF PANDEMIC EMERGENCY UNEMPLOYMENT COMPENSATION. a IN GE N E R A L. Section 2107 g of the CARES Act 15 U.S.C. 9025 g is amended to read as follows g AP P L I C A B I L I T Y. An agreement entered into under this section shall apply to weeks of unemployment 1 beginning after the date on which such agreement is entered into and 2 ending on or before September 6 2021. . b IN C R E A S E IN NU M B E R OF WE E K S. Section 2107 b 2 of such Act 15 U.S.C. 9025 b 2 is amended by striking 24 and inserting 53 . c CO O R D I N A T I O N OF PA N D E M I C EM E R G E N C Y UN E M P L O Y M E N T CO M P E N S A T I O N WI T H EX T E N D E D CO M P E N S A T I O N. Section 2107 a 5 B of such Act 15 U.S.C. 9025 a 5 B is amended by inserting or for the week that includes the date of enactment of the American Rescue Plan Act of 2021 without regard to the amendments made by subsections a and b of section 9016 of such Act after 2020 . d SP E C I A L RU L E FO R EX T E N D E D CO M P E N S A T I O N. Section 2107 a 8 of such Act 15 U.S.C. 9025 a 8 is amended by striking April 12 2021 and inserting September 6 2021 . e EF F E C T I V E DA T E. The amendments made by this section shall apply as if included in the enactment of the CARES Act Public Law 116 136 except that no amount shall be payable by virtue of such amendments with respect to any week of unemployment ending on or before March 14 2021. SEC. 9022. EXTENSION OF FULL FEDERAL FUNDING OF EXTENDED UNEMPLOYMENT COMPENSATION. a IN GE N E R A L. Section 4105 of the Families First Coronavirus Response Act 26 U.S.C. 3304 note is amended by striking March 14 2021 each place it appears and inserting September 6 2021 . b EF F E C T I V E DA T E. The amendment made by subsection a shall apply as if included in the enactment of the Families First Coronavirus Response Act Public Law 116 127 .