U.S. DEPARTMENT OF LABOR
Employment and Training Administration
Washington, D. C. 20210

CLASSIFICATION

UI/EUC

CORRESPONDENCE SYMBOL

TEUMI

ISSUE DATE

March 5, 1993

RESCISSIONS

None

EXPIRATION DATE

March 31, 1994

DIRECTIVE

:

GENERAL ADMINISTRATION LETTER NO. 07-93

 

TO

:

ALL STATE EMPLOYMENT SECURITY AGENCIES

 

FROM

:

Barbara Ann Farmer
Administrator
for Regional Management

 

SUBJECT

:

Implementation and Clarification of Certain Requirements in the Unemployment Compensation Amendments of 1992 (P.L. 102-318) Affecting the Emergency Unemployment Compensation (EUC), and Trade Readjustment Allowances (TRA) Programs effective March 6, 1993

 

  1. Purpose. To provide operating instructions for EUC and TRA and clarify requirements of amendments to the Federal-State Extended Unemployment Compensation Act (FSEUCA) of 1970, as amended, as they apply to the EUC and TRA eligibility.

  2. References. Titles I and II of the Emergency Unemployment Compensation Act (EUC Act) of 1991 (Public Law 102-164), as amended by P.L. 102-182, P.L. 102-244 and P.L. 102-318; the FSEUCA of 1970, as amended by P.L. 102-318; Section 231(a)(4) of the Trade Act of 1974; GAL 10-92; GAL 12-92 (57 Fed. Reg. 54106); UIPL 9-92 and Changes 1, 2, 3, 4, 5; UIPL 45-92 (57 Fed. Reg. 47871, 47873); 20 CFR Part 615; ET Handbook 392; ET Handbook 399.

  3. Background. Public Law 102-318 amended several sections of the EUC Act of 1991 and the FSEUCA. However, this letter will focus on the provisions that are effective with respect to weeks beginning after March 6, 1993. The suspension of the eligibility and requalification requirements of Section 202(a)(3) and (4) of FSEUCA that apply to claims for EUC effective with respect to weeks beginning after March 6, 1993, requires the determination and payment of EUC differently during the remaining period of the program. The suspension of the eligibility and requalification requirements of Section 202(a)(3) of FSEUCA also applies to claims for TRA in the same manner as the suspension affecting EUC claims. The effect of the suspension of these requirements on the eligibility of previously disqualified EUC and TRA claimants makes it necessary for the State agency to provide affected claimants with an additional claimant notification of potential eligibility.

  4. Controlling Guidance. The provisions of P.L. 102-318, as interpreted in these EUC and TRA operating instructions are issued to the States and cooperating State agencies as guidance provided by the Department of Labor in its role as the principal in the EUC and TRA programs and supplements GAL 12-92 (57 Fed. Reg. 54106). As agents of the United States, the States and cooperating State agencies may not vary from the operating instructions in this document (or subsequent or supplemental operating instructions) without the prior approval of the Department of Labor.

  5. Suspension of the Suitable Work and Systematic Work Search Provisions of Section 202(a)(3) of FSEUCA. Section 202(a)(7) of FSEUCA suspends the requirements of Sections 202(a)(3) of the FSEUCA, as amended, and prohibits the application of State law provisions in conformity with such provision to weeks beginning after March 6, 1993 and before January 1, 1995. Section 231(a)(4) of the Trade Act of 1974 applies the provisions of Section 202(a)(3) of the FSEUCA to TRA claimants for each week of unemployment that the claimant is not enrolled in a training program approved under Section 236(a) of the Trade Act of 1974. Therefore, for weeks of unemployment during the period of the suspension of such requirements, State law provisions applicable to claims for regular benefits will apply to claims for EUC and TRA.

    The suspension of this requirement is effective for weeks of unemployment beginning after March 6, 1993 for claims filed under the EUC Act of 1991, as amended, the Trade Act of 1974 and the requirements of the FSEUCA, as amended, without regard to whether or not the State law in conformity with the provision has been amended to implement the requirements of Section 202(a)(7) of FSEUCA. To implement the suspension of the requirements of Section 202(a)(3), FSEUCA, State agencies must identify each affected EUC and TRA claimant with an existing disqualification, under provisions of State law in conformity with the provisions of Section 202(a)(3), FSEUCA, and Section 231(a)(4) of the Trade Act of 1974, and EUC claimants in continued claim status, and notify each such claimant of the change in eligibility requirements for weeks of unemployment beginning after March 6, 1993.

    During the period of the suspension of the requirements of Sections 202(a)(3) FSEUCA, the requirements of paragraph (2) of Section 202(a), FSEUCA, which reads as follows will apply:

    Except where inconsistent with the provisions of this title, the terms and conditions of the State law which apply to claims for regular compensation and to the payment thereof shall apply to claims for extended compensation and to the payment thereof.

    Therefore, under the requirements of Section 202(a)(2), FSEUCA, States are required to apply the provisions of State law applicable to claims for regular compensation to claims for EUC and TRA in lieu of the State law requirements in conformity with Section 202(a)(3), FSEUCA. Hence, the continuing eligibility requirements pertaining to work search, suitable work, ability to work, availability for work and ES registration that apply to claims for regular compensation, apply to claims for EUC and TRA for weeks of unemployment beginning after March 6, 1993 and before January 1, 1995.

    1. Existing EUC Disqualifications.  The suspension of the requirements of Section 202(a)(3), FSEUCA, means that all outstanding EUC and TRA disqualifications under State laws in conformity with such provisions do not apply to weeks of unemployment beginning after March 6, 1993. Therefore, all claimants disqualified under such State law provisions may have EUC or TRA eligibility for weeks of unemployment beginning after March 6, 1993 if they meet the requirements of State law provisions applicable to regular compensation and other requirements of the EUC Act or the Trade Act of 1974, as applicable.

        (1)  Existing Work Search Disqualification. In the cases of individuals with disqualifications for failure to satisfy the systematic and sustained work search requirement, these denials do not apply to weeks beginning after March 6, 1993.

      The removal of the EUC or TRA denial and determination that the claimant is eligible under the State law applicable to claims for regular compensation does not constitute a countable nonmonetary determination.

    2. Existing Disqualifications for Failure to Accept a Referral to or an Offer of Suitable Work.  In the cases of individuals with disqualifications for failure to accept a referral to or an offer of suitable work, these denials do not apply to weeks beginning after March 6, 1993.

      These cases will have to be reviewed to determine if the application of provisions of State law applicable to claims for regular compensation results in an eligible or ineligible determination. If the review results in a determination that no issue exist under State law, such decision does not constitute a countable nonmonetary determination. If the review of the case results in a disqualifying determination under State law, it is a countable nonmonetary determination.

    3. ES Registration and Work Search Requirements.  The suspension of the requirements of Sections 203(a)(3), FSEUCA, eliminates the Job Prospects Classification and ES registration requirements for EUC and TRA claimants. Therefore, for weeks of unemployment beginning after March 6, 1993 the work search, ES registration and suitable work requirements for TRA and EUC claimants will be in accordance with the State law provisions applicable to claimants for regular benefits.

  6. Suspension of the Subsequent Work Requalification Requirement of Section 202(a)(4), FSEUCA. Section 202(a)(7) of FSEUCA suspends the requirements of Section 202(a)(4) of the FSEUCA, as amended, and prohibits the application of State laws in conformity with such provisions to weeks of unemployment beginning between March 6, 1993 and January 1, 1995. Therefore, for weeks of unemployment during the period of the suspension of such requirements, the requalification requirements of State law applicable to claims for regular benefits will apply to claims for EUC. The suspension of Section 202(a)(4) of FSEUCA has no affect on TRA claimants as it does not apply to such claims.

    To implement the suspension of the requirements of this provision, States must identify affected claimants with existing disqualifications and notify the claimants of the change in eligibility requirements for weeks of unemployment beginning after March 6, 1993.

    If a claimant who was previously disqualified under provisions of State law in conformity with Section 202(a)(4), FSEUCA, initiates a claim for EUC for a week beginning after March 6, 1993, the State must review the facts of the disqualifying issue under the State law applicable to claims for regular benefits. If no claim is filed after March 6, 1993, no review is necessary or appropriate. If the review results in a determination that no issue exists under State law, such decision does not constitute a countable nonmonetary determination. If the review results in a disqualification under State law provisions applicable to claims for regular benefits, such determination is a countable nonmonetary determination.

    1. EUC Disqualifications Based on Prior Termination of Regular Benefit Disqualifications Without a Subsequent Work Requirement.  If a provision of State law applicable to claims for regular benefits terminates a disqualification for voluntarily leaving employment, being discharged for misconduct, or refusing suitable employment without a requirement for employment/earnings subsequent to the date of the disqualifying act or determination, such provision of State law applies to claims for EUC for weeks of unemployment beginning after March 6, 1993 and before January 1, 1995. Therefore, if a claimant has been denied EUC due to a prior regular benefit disqualification that was not required to be terminated by subsequent work, the eligibility of such claimant must be redetermined for weeks beginning after March 6, 1993. If the claimant has satisfied the State law requirements for requalification for regular benefits, the claimant will be eligible for EUC, as appropriate, for weeks beginning after March 6, 1993 if all other eligibility requirements are met. The determination that a claimant has satisfied the applicable requalifying requirements and is eligible for EUC does not constitute a nonmonetary determination. If the review results in a disqualification under State law applicable to claims for regular benefits, the determination is a countable nonmonetary determination.

    2. EUC Disqualifications for a Separation or Job Refusal that Occurred During the EUC Claim.  In a case where a review of the facts of the issue under the applicable State law results in no disqualification or a lesser requalification requirement, the State must determine if the requirement has already been satisfied. When the review results in the removal of the disqualification or the lesser requalification requirement has already been satisfied, the removal of the disqualification does not constitute a countable nonmonetary determination. When the lesser requalification has not been satisfied, a redetermination under the appropriate State law will be issued and does constitute a countable nonmonetary determination.

      In cases where the review of the facts under State law applicable to the issue results in a greater requalification requirement, a redetermination will be issued under the appropriate State law and does constitute a nonmonetary determination.

    3. Existing EUC Disqualifications Satisfied Prior to a Claim for a Week Beginning After March 6.  Without regard to the date of the determination that the requalification requirements of a prior disqualification has been met, in cases where there is an existing disqualification and the claimant has met the requalification requirements prior to claiming a week of unemployment beginning after March 6, no readjudication of the issue under State law applicable to regular claims will occur. The claimant will be eligible for EUC, as appropriate, if all applicable eligibility requirements are met.

  7. Suggested Language for Claimant Notice. 

    Our records indicate that you were denied Emergency Unemployment Compensation (EUC) or Trade Readjustment Allowance (TRA) under provisions of (State) law, that are applicable to the payment of extended benefits as required by the Emergency Unemployment Compensation Act of 1991 or the Trade Act of 1974.

    Effective for weeks of unemployment beginning after March 6, 1993, amendments to Federal law require that (State) suspend the application of the State law provisions that apply to claims for extended benefits; and instead, determine eligibility under the same provisions of State law that are applied to claims under the regular State unemployment benefits program.

    The EUC or TRA disqualifications affected by this law change were issued for:

    If you are still unemployed, you may be eligible to receive EUC for weeks beginning after March 6, 1993. To allow us to reassess your eligibility for EUC or TRA benefits, report to the office where you filed your claim.

    Note: If your case involves a disqualifying separation from employment or a refusal of suitable work or a referral to suitable work while receiving EUC, the application of the State law provisions for regular State unemployment benefits may be more severe than the State law provisions for extended benefits.

  8. Administrative Funding. State agencies will receive additional administrative funds to notify and reassess the eligibility of individuals whose prior disqualifications are affected by the suspension of the requirements of Sections 202(a)(3) and (4), FSEUCA. Staffyears earned for reassessing the eligibility of those claimants who reopen EUC or TRA claims as a result of the notice but who receive no new nonmonetary determination will be computed by using an MPU value of no more than 20 minutes. States have the option to use a lesser value MPU if they deem it appropriate. This information should be included on line 13 of the regular UI-3 worksheet, Section B. Staffyears used for this activity should be included on line 1, Section A. Staffyears will not be separately reported for the identification and notification process. If a reportable nonmonetary determination under State law applicable to regular claims results from the reassessment, no additional staff-year earnings (using the 20 minute MPU) are to be reported on the UI-3.

  9. Action Required. State Administrators are requested to make a copy of this letter available to all appropriate staff.

  10. Inquiries. Questions regarding this directive should be directed to the appropriate Regional Office.