UIPL_14-21-Change_1.pdf

ETA Advisory File Text

CLASSIFICATION EMPLOYMENT AND TRAINING ADMINISTRATION Unemployment Insurance ADVISORY SYSTEM CORRESPONDENCE SYMBOL U.S. DEPARTMENT OF LABOR OUI DL Washington D.C. 20210 DATE July 12 2021 RESCISSIONS EXPIRATION DATE None Continuing ADVISORY UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 14-21 TO FROM Change 1 STATE WORKFORCE AGENCIES SUZAN G. LEVINE Principal Deputy Assistant Secretary SUBJECT State Responsibilities After the Temporary Unemployment Benefit Programs under the Coronavirus Aid Relief and Economic Security CARES Act as amended End Due to State Termination of Administration or When the Programs Expire. 1.Purpose. To advise states of the operational requirements after the temporary unemployment benefit programs authorized under the CARES Act as amended end. These operational requirements apply after the temporary programs expire on September 6 2021 or earlier if a state chooses to end participation before September 6 2021. 2.Action Requested. The Department of Labor s Department Employment and Training Administration ETA requests that State Workforce Administrators provide the information contained in this Unemployment Insurance Program Letter UIPL to appropriate program and other staff in state workforce systems as they implement the Uf-related provisions that respond to the economic effects of the Coronavirus Disease 2019 COVID-19 pandemic. 3.Summary and Background. a.Summary The temporary unemployment benefit programs authorized under the CARES Act as amended are set to expire on September 6 2021. These programs include Pandemic Unemployment Assistance PUA Federal Pandemic Unemployment Compensation FPUC Pandemic Emergency Unemployment Compensation PEUC I and Mixed Earners Unemployment Compensation MEUC . Full federal funding for the first week of compensable regular unemployment for states with no waiting week will also expire on September 6 2021. Additionally some states have chosen to end participation in some or all of these programs earlier than September 6 2021 which is permissible with 30-days written noticeI under the state s agreement with the Secretary of Labor Secretary to administer such programs. The agreement to administer the PUA FPUC PEUC and MEUC programs remains in effect with respect to weeks of unemployment ending on or before the date of termination or expiration whichever comes first until all issues relating to those weeks are resolved. 2 States 1 are required to accept all PUA FPUC PEUC and MEUC claims for a certain period of time after the date of termination or expiration whichever comes first and determine all eligibility issues associated with such claims in a timely manner including establishing overpayments as appropriate and processing appeals 2 must individually notify individuals of the termination or expiration and 3 must continue to comply with the return to work reporting requirements described in Section 4.c. of UIPL No. 09-21 during any period for which the agreement remains in effect. States are also advised of the effect that termination or expiration will have on the transfer of federal funds to provide emergency unemployment relief to governmental entities and certain nonprofit organizations as well as the first week of compensable regular unemployment for states with no waiting week. After terminating participation states may choose to reinstitute participation prior to the September 6 2021 end date of the programs. Additionally states are strongly encouraged to identify procedures and resources across available workforce partners to ensure individuals are provided access to reemployment services. b. Background The CARES Act Public Law Pub. L. 116-136 enacted on March 27 2020 allows among other things states to enter into an agreement with the Secretary to administer the PUA FPUC and PEUC programs. 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 unemployment. 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 states to administer these programs and allowed 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 administer the PUA FPUC PEUC and MEUC programs through September 6 2021. See UIPL No. 14-21. 4. Guidance. All states signed an Agreement Implementing the Relief for Workers Affected by Coronavirus Act Agreement with the Secretary in March 2020 to administer the PUA FPUC and PEUC programs. States without a waiting week also signed an addendum to receive full federal funding for the first week of compensable regular unemployment. Additionally nearly all states signed an addendum to the Agreement in January 2021 to also administer the MEUC program. The Agreement incorporates amendments to the CARES Act made by the Continued Assistance Act and ARPA. As provided in paragraph I. of the Agreement The insert state name State Workforce Agency hereinafter referred to as the Agency will make payments of benefits in accordance with the provisions of the Act identified in paragraph XIV the CARES Act and any future amendments thereto which are incorporated herein by reference and will cooperate with the U.S. Department of Labor Department of Labor and with other state agencies in making such payments. 3 Under the Agreement each state is required to operate the programs as required by any statutory amendments and the Department s guidance. While all states must prepare for the expiration of temporary unemployment benefit programs authorized under the CARES Act as amended which is currently on September 6 2021 some states have chosen to end participation in some or all of these programs earlier than the current September 6 2021 expiration date. As set forth in Section XI of the Agreement a state may terminate specific provisions within the agreement listed in Section XIV or terminate the agreement itself with thirty days written notice if it chooses to discontinue administration of such provisions. Although Section 261 c of the Continued Assistance Act permits a state to administer the FPUC program without administering MEUC states do not have authority to administer MEUC and not FPUC. As such states may not continue to administer the MEUC program after terminating the agreement to administer the FPUC program. a. Processing PUA FPUC PEUC and MEUC claims after the date of termination or expiration. The state must process and pay benefits to eligible individuals under the PUA FPUC PEUC and MEUC programs for all weeks of unemployment ending on or before the date of termination or expiration whichever comes first . The state must also comply with all responsibilities with respect to claims filed under these programs for those weeks including without limitation the requirements under the Agreement and in guidance. Accordingly the Agreement remains in effect with respect to the PUA FPUC PEUC and MEUC programs for weeks of unemployment ending on or before the date of termination or expiration whichever comes first until all issues relating to those weeks are resolved. In all states under current federal law no PUA FPUC PEUC and MEUC payments may be made with respect to weeks of unemployment ending after September 6 2021. In states where the week of unemployment ends on a Saturday the last payable week for these programs is the week ending September 4 2021. In states where the week of unemployment ends on a Sunday the last payable week for these programs is the week ending September 5 2021. For states that terminate the Agreement to operate some or all of these programs before September 6 2021 no payments for the terminated programs may be made with respect to weeks of unemployment ending after the date the state terminates participation in the Agreement. i. PUA claims. A. Taking new applications after the date of termination or expiration. The state must continue to take new applications for PUA for 30 days after the date of termination or expiration whichever comes first . The state must backdate such claims as appropriate to the first week during the Pandemic Assistance Period in which the individual was unemployed partially unemployed or unable or unavailable to work 4 because of an approved COVID-19 related reason subject to the limitation described in Section C.15. of Attachment I to UIPL No. 16- 20 Change 4. B. Continued compliance with responsibilities under the Agreement and in guidance. A state that chooses to terminate the PUA program prior to September 6 2021 must comply with all responsibilities under the Agreement and in guidance with respect to claims filed under the PUA program for weeks of unemployment ending on or before the date of termination. This includes the processing of claims using the expanded list of COVID-19 related reasons described in Section 4.b. of UIPL No. 16-20 Change 5. C. Accepting submission of income documentation for purposes of calculating a higher PUA weekly benefit amount WBA . As described in Question 2 of Attachment I to UIPL No. 16-20 Change 2 states must accept documentation of income to determine an individual s eligibility for a higher PUA WBA at any time during the Pandemic Assistance Period. For the purpose of submitting proof of wages to calculate the PUA WBA the Pandemic Assistance Period does not change. States terminating participation in the Agreement before September 6 2021 must continue to allow for submission of such proof through September 6 2021. Note that the requirement to provide documentation substantiating employment or self-employment is separate from providing documentation to support the calculation of a higher WBA and has its own deadline as described in Section C.2. of Attachment I to UIPL No. 16-20 Change 4. ii. FPUC claims. Individuals do not submit an application to receive the supplementary FPUC payment. Insofar as an individual is eligible to receive payment under one of the qualifying programs described in Section 4.a. of UIPL No. 15-20 the state must pay FPUC with respect to weeks of unemployment ending on or before the date of termination or expiration whichever comes first . States are reminded that FPUC is not payable with respect to any week of unemployment ending after July 31 2020 through weeks of unemployment ending on or before December 26 2020. See Section 4.b.iii. of UIPL No. 09-21. iii. PEUC claims. A. Taking new applications after the date of termination or expiration. Insofar as state UC law provides for claims to be backdated the state must continue to take new applications for PEUC as provided in their 5 state law for late filing of claims after the date of termination or expiration whichever comes first . B. Addressing state options for determining eligibility for PEUC or regular UC payments for states terminating PEUC early. Generally to be eligible for PEUC an individual must have exhausted all rights to regular UC. However as described in Section 4.e.iii. of UIPL No. 17-20 Change 2 certain individuals that are eligible for a new regular UC claim may be eligible to continue receipt of PEUC. States must choose one of four options for administering this provision as described in Section 4.e.ii. of that same UIPL. As such certain individuals receiving PEUC in states that are terminating the PEUC program before September 6 2021 may be eligible for a new regular UC claim upon termination of the PEUC program. iv. MEUC claims. A. Taking new applications after the date of termination or expiration. Insofar as state UC law provides for claims to be backdated the state must continue to take new applications for MEUC as provided in their state law for late filing of claims after the date of termination or expiration whichever comes first . B. States that signed the MEUC addendum and have not yet implemented the MEUC program. Nearly all states signed an addendum to the Agreement in January 2021 to administer the MEUC program though some states have not yet implemented the MEUC program. Upon signing the Agreement to administer MEUC the state agreed to operate the MEUC program through the date of termination or expiration whichever comes first . Therefore states must pay MEUC for weeks of unemployment beginning after they signed the agreement through the date of termination or expiration whichever comes first . b. Required notifications. The state must individually notify individuals of the termination or expiration whichever comes first of these programs. This includes all individuals who 1 are currently receiving PUA PEUC FPUC or MEUC and 2 anyone for whom a PUA or PEUC claim was previously established i.e. individuals with remaining PUA or PEUC balances who stopped filing such claims . States that are not terminating the Agreement early and that included notification of the September 6 2021 expiration date at the time of notifying individuals of the changes related to the enactment of ARPA as described in Section 4.d. of UIPL No. 14-21 do not need to provide additional individual notification to individuals. 6 i. Content of notification. The individual notification must include the specific date on which the temporary unemployment benefit program s end. Generally receipt of benefits under the temporary unemployment benefit programs indicates that an individual is not eligible for regular UC. However if the individual is receiving PEUC at the time a state terminates the PEUC program and the individual is eligible for a regular UC claim as described in Section 4.a.iii.B. of this UIPL the state must include instructions for reopening or filing the new regular UC claim. States are also encouraged to provide information about reemployment services as described further in Section 4.f. of this UIPL. ii. Distribution method for notification. The distribution method for these notifications must be consistent with other correspondence provided to the individuals receiving these benefits by the state which may include notification by mail email or through the individual s online web portal. Additionally the state may also post general information about the date of termination or expiration on their websites and on social media. c. Return to Work reporting requirement. The state must continue to comply with the Return to Work Reporting Requirement described in Section 4.c. of UIPL No. 09-21 during any period in which an Agreement for any of the UI-related provisions under the CARES Act as amended remains in effect. This includes PUA FPUC full federal funding of the first week of compensable regular unemployment for states with no waiting week PEUC MEUC and or 100 percent reimbursement of STC benefit costs paid under state law. As described in Section 4.a. of this UIPL the Agreement remains in effect with respect to PUA FPUC PEUC MEUC and the first week of compensable regular unemployment for states with no waiting week for weeks of unemployment ending on or before the date of termination or expiration whichever comes first until all issues relating to those weeks are resolved. This reporting requirement includes 1 having a procedure for how work refusals are received evaluated adjudicated and resolved 2 providing a reporting method for employers to notify the State agency when an individual refuses an offer of employment and 3 providing a plain-language notice to claimants containing specific provisions described in Section 4.c. of UIPL No. 09-21 at the time an adjudication issue for refusing work is created. d. Emergency unemployment relief for governmental entities and certain nonprofit organizations. Some states have provided written notice to terminate participation in the Emergency Unemployment Relief for Governmental Entities and Nonprofit Organizations provision under Section 2103 of the CARES Act as amended. The 7 Department interprets this to mean that the state does not intend to use the fund transfers under Section 2103 of the CARES Act as amended for the authorized purpose specified in Section 903 i 1 C of the Social Security Act SSA . See UIPL No. 18 -20 Change 2. As such un less notified otherwise by the s tate the Department will discontinue transferring funds to th os e state s for weeks of unemployment beginning on or after the date of termination. States will receive funds for weeks of unemployment that occurred prior to the termination date. If a state wishes to resume receiving the transfers of funds and reducing the reimb ursement amounts owed by governmental entities and certain nonprofit organizations it must notify the Department immediately. e. Full federal funding of the first week of compensable regular unemployment for states with no waiting week. The State must comp ly with all responsibilities with respect to all waiting week payments for weeks of unemployment ending on or before the date of termination or expiration whichever comes first and comply with all responsibilities with respect to claims filed under these programs for those weeks including without limitation the requirements under the Agreement. See UIPL No. 2 0- 20. Accordingly the Agreement remains in effect with respect to the first compensable week for weeks of unemployment ending on or before the date of termination or expiration whichever comes first until all issues relating to those weeks are resolved. In addition the state must reconcile any drawdowns consistent with the guidance provided in UIPL No. 20 -20 to ensure that any funds that are drawn pursuant to the line labeled WD For 2105 Temporary Comp in the Automated Standard Application for Payments system are drawn down only for the reason attributable to Section 2105 of the CARES Act as amended and are no longer drawn for any weeks of unemployment beginning on or after the date of termination or expiration whichever comes first . f. Reinstituting participation in the pandemic UI programs. Any state that has provided notice to the Department of its intent to terminate any of the pandemic UI programs prior to the September 6 2021 end date may reinstitute participation in any or all program s it previously indicated it would be terminating. I f the state s date of termination has not become effective the state simply needs to provide the Department with written notice that it is rescinding or modifying the effective date of its prior notice of termination for the particular program s and the state will then be able to continue making payments under the program s . If the date of termination has occurred and the state has terminat ed participation the state may need to enter into a new agreement with the Department to reinstitute operations . By entering into a new agreement the state may experience a lapse in time period for which the state may pay benefits under the FPUC MEUC and PEUC programs as the new agreement becomes effective the week of unemployment beginning after a new agreement is signed. The state will not experience a lapse in time period for which the state may pay benefits under the PUA program and the state must provide an opportunity for individuals receiving PUA to certify for the missing weeks . 8 If a state enters into a new agreement or rescinds rather than modifies the previous notice of termination the state would need to provide 30 -day notice of any future termination of participation in the pandemic UI programs. States interested in reinstituting previously ter minated programs should contact ETA for further assistance in doing so. g. Importance of assisting individuals in utilizing available reemployment resources . The Department strongly encourages states to identify procedures and resources across available workforce partners to ensure individuals affected by the termination or expiration of these temporary unemployment benefit programs are provided access to servi ces through the workforce system. Refer to the resources in Training and Employment Notice TEN No. 08 -20. Additionally states may inform individuals of the wide array of activities that support reemployment in today s labor market including receiving service s through American Job Centers. See the sample list of activities for an individual to be actively seeking work provided in Attachment I to TEN 17 -19. 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 Consolidated Appropriations Act 2021 including Division N Title II Subtitle A the Continued Assistance for Unemployed Workers Act of 2020 Continued Assistance Act Pub. L. 116 -260 Coronavirus Aid Relief and Economic Security CARES Act includ ing Title II Subtitle A Relief for Workers Affected by Coronavirus Act Pub. L. 116 -136 UIPL No. 20 -21 State Instructions for Assessing Fraud Penalties and Processing Overpayment Waivers under the Coronavirus Aid Relief and Economic Security CARES Act as Amended issued May 5 2021 https wdr.doleta.gov directives corr doc.cfm DOCN 6830 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 doc.cfm DOCN 3831 UIPL No. 20 -20 Coronavir us Aid Relief and Economic Security CARES Act of 2020 - Operating Financial and Reporting Instructions for Section 2105 Temporary Full Federal Funding of the First Week of Compensable Regular Unemployment for States with No Waiting Week issued Apri l 30 2020 https wdr.doleta.gov directives corr doc.cfm DOCN 6324 UIPL No. 18 -20 Change 2 American Rescue Plan Act of 2021 ARPA Amendments to the Emergency Unemployment Rel ief for State and Local Governmental Entities Certain 9 Nonprofit Organizations and Federally -Recognized Indian Tribes issued March 26 2021 https wdr.doleta.gov directives corr d oc.cfm DOCN 7171 UIPL No. 17 -20 Change 2 Continued Assistance for Unemployed Workers Act of 2020 Pandemic Emergency Unemployment Compensation PEUC Program Extension Transition Rule Increase in Total Benefits and Coordination Rules issued Decem ber 31 2020 https wdr.doleta.gov directives corr doc.cfm docn 9291 UIPL No. 16 -20 Change 5 Expanded Eligibility Provisions for the Pandemic Unemployment Assistance PUA Progr am issued February 25 2021 https wdr.doleta.gov directives corr doc.cfm DOCN 3202 UIPL No. 16 -20 Change 4 Continued Assistance to Unemployed Workers Act of 2020 Pandemic Unemployment Assistance PUA Program Updated Operating Instructions and Reporting Changes issued January 8 2021 https wdr.doleta.gov directives corr doc.cfm DOCN 6973 and UIPL No. 16 -20 Change 2 Coronavirus Aid Relief and Economic Security CARES Act of 2020 Pandemic Unemployment Assistance PUA Additional Questions and Answers issued July 21 2020 https wdr.doleta.gov directives corr doc.cfm DOCN 5479 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 is sued April 27 2020 https wdr.doleta.gov directives corr doc.cfm DOCN 5899 UIPL No. 15 -20 Change 3 Continued Assistance for Unemployed Workers Continued Assistance Act of 2020 Federal Pandemic Unemployment Compensation FPUC Program Reauthorization and Modification and Mixed Earners Unemployment Compensation MEUC Program Operating Reporting and Financial Instructions issued January 5 2021 https wdr.doleta.gov directives corr doc.cfm DOCN 6122 UIPL No. 15 -20 Coronavirus Aid Relief and Economic Security CARES Act of 2020 Federal Pandemic Unemployment Compensation FPUC Program Operat ing Financial and Reporting Instructions issued April 4 2020 https wdr.doleta.gov directives corr doc.cfm DOCN 9297 UIPL No. 14 -20 Coronavirus Aid Relief and Economic Secu rity CARES Act of 2020 Summary of Key Unemployment Insurance UI Provisions and Guidance Regarding Temporary Emergency State Staffing Flexibility issued April 2 2020 https w dr.doleta.gov directives corr doc.cfm DOCN 3390 TEN No. 08 -20 Public Workforce System Role in Reopening State and Local Economies issued December 10 2020 https wd r.doleta.gov directives corr doc.cfm DOCN 5171 and TEN No. 17 -19 Model Unemployment Insurance State Work Search Legislation issued February 10 2020 https wdr.doleta.gov direct ives corr doc.cfm DOCN 4227 . 7. Attachment s . None.