UIPL 09-25 (Accessible PDF).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 7 2025 RESCISSIONS UIPL 15-20 Attachment I Section C subsection 7b UIPL 16-20 Attachment I Section C subsection 18b UIPL 17-20 Attachment I Section C subsection 8b EXPIRATION DATE Continuing ADVISORY UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 09-25 TO STATE WORKFORCE AGENCIES FROM JOS JAVIER RODR GUEZ s Assistant Secretary SUBJECT New Instructions for Data Retention Requirements Concerning the Coronavirus Aid Relief and Economic Security CARES Act Unemployment Compensation UC Programs 1. Purpose. To provide urgent instructions to State Workforce Agencies SWAs on data retention requirements for temporary pandemic-related UC programs authorized under the CARES Act as amended. This guidance reflects a change in policy and replaces prior guidance on this specific topic. 2. Action Requested. The U.S. Department of Labor s Department Employment and Training Administration ETA requests state administrators provide the information contained in this Unemployment Insurance Program Letter UIPL to the appropriate staff including information technology staff supporting Unemployment Insurance UI operations. 3. Summary and Background. a.Summary This UIPL instructs states to retain data regarding the temporary pandemic- related UC programs created under the CARES Act as amended until further notice and direction from the Department. This guidance reflects a change in policy and replaces prior guidance on the specific topic of data retention concerning the CARES Act UC programs. This UIPL also provides instruction on which funding sources states may use to support data retention and that ETA plans on providing additional funding opportunities to cover costs associated with expanded data retention requirements in the future. b. Background From April 2020 through January 2021 the Department published various guidance documents instructing states that they were required to retain UI data data related to temporary pandemic-related UC programs authorized under the CARES Act as 2 amended. The previous guidance documents 1 state in general that records must be retained and available for three years after final action including appeals or court action on the payments or for less than the three-year period if copied by micro photocopy or by an electronic imaging method. At the end of the three-year period the records shall be transferred to state accountability under the conditions for the disposal of records that apply to Unemployment Compensation for Federal Employees UCFE and Unemployment Compensation for Ex-Servicemembers UCX records as explained in Chapter X of ET Handbook No. 391 1994 Edition OMB No. 1205-0179 and Chapter I of ET Handbook No. 384 1994 Edition OMB No. 1205-0176 . 4. Data Retention. Until further notice and future direction from the Department this UIPL is superseding previous guidance and hereby requiring states to retain data for pandemic-related UI programs indefinitely. Therefore all data for pandemic-related UC programs must be retained until further notice and direction. States agreed to abide by Department guidance as a condition of receiving funding when signing grant agreement s with the Secretary of Labor to administer the CARES Act pandemic programs. States are also required to follow the Uniform Guidance at 2 CFR part 200 in administering the CARES Act pandemic programs. The Uniform Guidance is incorporated into the pandemic UI grant agreements by reference in the Grant Terms and Conditions in part 1 Order of Precedence. Under the Uniform Guidance the standard data retention requirement is to maintain financial records supporting documents statistical records and all other non-Federal entity records pertinent to a Federal award for a period of three years from the date of submission of the final expenditure report. However Federal agencies can require states to retain data for longer periods of time. See 2 CFR 200.333 b 2021 for funds granted before October 1 2024 and 2 CFR 200.334 b October 2024 for 1 For FPUC see page I-4 of Attachment I to Unemployment Insurance Program Letter UIPL No. 15-20 Coronavirus Aid Relief and Economic Security CARES Act of 2020 Federal Pandemic Unemployment Compensation FPUC Program Operating Financial and Reporting Instructions issued April 4 2020 https www.dol.gov agencies eta advisories unemployment-insurance-program-letter-no-15-20. For MEUC see Section C of Attachment I of UIPL No. 15-20 Coronavirus Aid Relief and Economic Security CARES Act of 2020 - Federal Pandemic Unemployment Compensation FPUC Program Operating Financial and Reporting Instructions and 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 which applies the data and record retention instructions for FPUC to MEUC https www.dol.gov agencies eta advisories unemployment-insurance-program- letter-no-15-20-change-3. For PEUC see page I-6 of Attachment I to UIPL No. 17-20 Coronavirus Aid Relief and Economic Security CARES Act of 2020 Pandemic Emergency Unemployment Compensation PEUC Program Operating Financial and Reporting Instructions issued April 10 2020 https www.dol.gov agencies eta advisories unemployment- insurance-program-letter-no-17-20. For PUA see page I-28 of Attachment I to 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 www.dol.gov agencies eta advisories unemployment-insurance- program-letter-no-16-20-change-4. 3 grant funds awarded on and after October 1 2024. This UIPL notifies states that the Department is requiring states to retain this data indefinitely until further notice from the Department. The Department will send a notice in writing to each state of this extension requirement. a. Applicable Programs. These revised data retention requirements apply to the following temporary pandemic UC programs created by the CARES Act as amended Federal Pandemic Unemployment Compensation FPUC Section 2104 of the CARES Act Mixed Earners Unemployment Compensation MEUC Section 261 of the Continued Assistance for Unemployed Workers Act of 2020 amending Section 2104 of the CARES Act Pandemic Emergency Unemployment Compensation PEUC Section 2107 of the CARES Act Pandemic Unemployment Assistance PUA Section 2102 of the CARES Act Emergency Unemployment Relief for State and Local Governmental Entities Certain Nonprofit Organizations and Federally Recognized Indian Tribes Section 2103 of the CARES Act Temporary Full Federal Funding of the First Week of Compensable Regular Unemployment for States with No Waiting Week Section 2105 of the CARES Act and Short-Time Compensation STC Program Provisions and Guidance Regarding 100 Percent Federal Reimbursement of Certain State STC Payments Section 2108 of the CARES Act . b. Additional Context. The Department acknowledges that under prior guidance states and or third-party vendors supporting states operations of the temporary pandemic- related UC programs may have already begun to purge records and data. This activity may conflict with efforts to investigate and prosecute fraud in these programs. If a state has begun to purge records or data it must immediately discontinue further deletions of pandemic-related UC program data and where the cost and resources are reasonable states must attempt to recover previously purged or deleted information. Please contact your ETA Regional Office to discuss further if your state is in this situation. The Department supports efforts for federal prosecution of UI-related fraud. In Training and Employment Notice TEN No. 12-23 the Department reminded states about the statute of limitations for federal prosecution of UI fraud and encouraged states to submit timely referrals of pandemic-era UI fraud cases to the Department s Office of Inspector General DOL-OIG . The TEN noted the statute of limitations for federal fraud prosecutions is five 5 years under 18 U.S.C. 3282. Payments of benefits under the regular UI program and the temporary pandemic UI programs began as early as March 2020. Because of the five-year statute of limitations this means that individuals who received payments in March 2020 cannot be prosecuted after March 2025 absent a change in the statute of limitations. 4 The DOL-OIG has urged the Department to work with Congressional stakeholders to inform them of the urgency of the statute of limitations concerning pandemic-related UI fraud. 2 In April 2024 the Department published a plan to transform the UI program which notes the need for the extension of the statute of limitations for UI fraud as an administration priority. 3 In addition to the Department s communications the U.S. Department of Justice DOJ - established COVID-19 Fraud Enforcement Task Force in April 2024 released a report detailing its efforts to combat fraudsters and other criminals seeking to exploit the government s relief efforts for personal gain. 4 The taskforce encouraged legislation that extends the statute of limitations for all COVID-19 fraud-related offenses including but not limited to those associated with the UI program. There currently is legislation pending in both houses of Congress to extend the statute of limitations. If enacted these proposals would extend the time period for prosecutors to investigate and prosecute complex criminal syndicates that seek to exploit the government s relief efforts. The Administration has indicated its support for an extension of the statute of limitations in anti-fraud proposals in 2023 5 and 2024. 6 In light of these ongoing activities and the possibility of an extension of the statute of limitations the Department has determined that states must retain the data related to the temporary pandemic-related UC programs described above until further notice and direction from the Department. This will ensure data necessary for prosecution of these crimes is available if needed. c. Administrative Funding. States can utilize funding provided through ongoing state workload-based administrative funding and the recently issued supplemental budget request as announced under UIPL No. 02-25 and UIPL No. 17-24 respectively to support data retention activities. States may need to amend the UIPL 17-24 grant agreements already in place to add system maintenance as an included activity for the allowable use of funds in order to support the retention of CARES Act data. Please contact your ETA Regional Office to discuss further if your state is in this situation. 2 DOL-OIG Report No. 19-23-012-03-315 Alert Memorandum ETA Needs to Incorporate Data Analytics Capability to Improve Oversight of the Unemployment Insurance Program issued September 25 2023 https www.oig.dol.gov public reports oa 2023 19-23-012-03-315.pdf. 3 UI Transformation Plan. Building Resilience A plan for transforming unemployment insurance published April 2024 https oui.doleta.gov unemploy transformation plan.asp. 4 U.S. Department of Justice COVID-19 Fraud Enforcement Task Force 2024 Report issued April 9 2024 COVID- 19 Fraud Enforcement Task Force 2024 Report April 2024 - Council of the Inspecors General on Integrity and Efficiency. 5 The White House FACT SHEET President Biden s Sweeping Pandemic Anti-Fraud Proposal Going After Systemic Fraud Taking on Identity Theft Helping Victims issued March 2 2023 https www.whitehouse.gov briefing-room statements-releases 2023 03 02 fact-sheet-president-bidens-sweeping- pandemic-anti-fraud-proposal-going-after-systemic-fraud-taking-on-identity-theft-helping-victims . 6 The White House FACT SHEET President Biden s Sweeping Proposals to Crack Down on Pandemic Fraud and Help Victims Recover Introduced in Congress issued April 9 2024 https www.whitehouse.gov briefing- room statements-releases 2024 04 09 fact-sheet-president-bidens-sweeping-proposals-to-crack-down-on-pandemic- fraud-and-help-victims-recover-introduced-in-congress . 5 The Department recognizes that workload-based funding may be insufficient to cover all ongoing costs associated with data retention efforts especially as workload activities continue to decline following the expiration of these programs. The Department also recognizes that states have different costs associated with data retention particularly in states that implemented separate standalone systems to support certain temporary pandemic-related UC programs. The CARES Act as amended provides that states will be funded for the full cost of the administration of the temporary pandemic-related UC programs. As a result of the likely ongoing costs resulting from this change in guidance revising the data retention requirements ETA plans to address additional funding needs and opportunities at a later date. 5. Inquiries. Please direct inquiries to the appropriate ETA Regional Office. 6. References. The Coronavirus Aid Relief and Economic Security CARES Act Pub. L. 116-136 including Title II Subtitle A Relief for Workers Affected by Coronavirus Act Consolidated Appropriations Act 2021 Pub. L. 116-260 including Division H Title II Subtitle A Chapter 1 Continued Assistance to Unemployed Workers Act of 2020 American Rescue Plan Act of 2021 ARPA including Title IX Subtitle A Crisis Support for Unemployed Workers Pub. L. 117-2 Unemployment Insurance Program Letter UIPL No. 15-20 Coronavirus Aid Relief and Economic Security CARES Act of 2020 Federal Pandemic Unemployment Compensation FPUC Program Operating Financial and Reporting Instructions issued April 4 2020. https www.dol.gov agencies eta advisories unemployment- insurance-program-letter-no-15-20 UIPL 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 www.dol.gov agencies eta advisories unemployment- insurance-program-letter-no-15-20-change-3 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 www.dol.gov agencies eta advisories unemployment-insurance-program- letter-no-16-20 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 www.dol.gov agencies eta advisories unemployment-insurance-program- letter-no-16-20-change-4 6 UIPL No. 17-20 Coronavirus Aid Relief and Economic Security CARES Act of 2020 Pandemic Emergency Unemployment Compensation PEUC Program Operating Financial and Reporting Instructions issued April 10 2020. https www.dol.gov agencies eta advisories unemployment-insurance-program- letter-no-17-20 UIPL No. 17-24 Supplemental Budget Request SBR Opportunity for Additional Administrative Funding to Support States Ongoing Administrative Activities Associated with Certain Coronavirus Aid Relief and Economic Security CARES Act Unemployment Compensation UC Programs issued August 26 2024. https www.dol.gov agencies eta advisories uipl-17-24 UIPL No. 02-25 Instructions to States for Ongoing Workload-Based Administrative Funding for the Federal Benefit Programs Under the Coronavirus Aid Relief and Economic Security CARES Act as amended issued November 6 2024 https www.dol.gov agencies eta advisories uipl-02-25 Training and Employment Notice TEN No. 12-23 Reminder on Federal Statute of Limitations on Criminal Prosecutions of Unemployment Insurance UI Fraud issued December 1 2023. https www.dol.gov agencies eta advisories ten-12-23 U.S. Department of Labor Employment and Training Administration UI Transformation Plan Building Resilience A plan for transforming unemployment insurance issued April 2024. https oui.doleta.gov unemploy transformation plan.asp U.S. Department of Labor Office of Inspector General OIG Alert Memorandum ETA Needs to Incorporate Data Analytics Capability to Improve Oversight of the Unemployment Insurance Program issued September 25 2023 https www.oversight.gov sites default files documents reports 2023-10 19-23-012- 03-315.pdf U.S. Department of Justice COVID-19 Fraud Enforcement Task Force 2024 Report issued April 2024. https www.justice.gov coronavirus media 1347161 dl inline and U.S. Department of Labor OIG Report. COVID-19 Pandemic Unemployment Assistance for Non-Traditional Claimants Weakened by Billions in Overpayments Including Fraud issued September 27 2023. https www.oig.dol.gov public reports oa 2023 19-23-014-03-315.pdf. 7. Attachment s . N A.