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U.S. DEPARTMENT OF LABOR
Employment and Training Administration
Washington, D. C. 20213

CLASSIFICATION

UI

CORRESPONDENCE SYMBOL

TURL

ISSUE DATE

March 31, 1981

RESCISSIONS

None

EXPIRATION DATE

January 31, 1982

DIRECTIVE

:

UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 14-81, Change 1

 

TO

:

ALL STATE EMPLOYMENT SECURITY AGENCIES

 

FROM

:

OFFICE OF THE DEPUTY ASSISTANT SECRETARY

ROBERTS T. JONES
Administrator
Office of Management Assistant

 

SUBJECT

:

Amendments made P.L. 96-499 (Omnibus Reconciliation Act of 1980) which Affect the Unemployment Compensation Program.

 

  1. Purpose. To advise State agencies of a clarifying change to the draft language and commentary provided in Unemployment Insurance Program Letter No. 14-81 to implement and explain section 202(a)(4) of the Federal State Extended Unemployment Compensation Act of 1970 (EUCA).

  2. Reference. UIPL No. 14-81; section 1024 of P.L. 96-499, section 202(a)(4), (EUCA).

  3. Explanation of changes. New section 202(a)(4), added to the Federal-State Extended Unemployment Compensation Act of 1970 by section 1024 of P.L. 96-499, provides that no disqualification which has been imposed under a State law for "voluntary leaving employment, being discharged for misconduct, or refusing suitable employment will be deemed terminated for purposes of determining eligibility for extended benefits "unless such termination is based upon employment subsequent to the date of such disqualification". This provision applies if the disqualification is imposed on individuals who file claims for either regular or extended benefits since there is no specific limitation in section 202(a)(4) as to the type of claim on which the disqualification is imposed. The explanation provided on pages 17 and 18 of UIPL No. 14-81 under the heading "Requirement for duration of unemployment disqualification" properly indicates that section 202(a)(4) applies to disqualifications for regular benefits but does not stress that it also applies to such disqualification when imposed on individuals claiming extended benefits. Similarly, the draft language to implement section 202(a)(4), which appears in paragraph (7) on page 3 of the attachment to UIPL No. 14-81, refers only to individuals who have been "disqualified for regular benefits".

    Pages 17 and 18 of UIPL No. 14-81 have been revised to clarify the fact that section 202(a)(4) applies to disqualifications imposed under State law on claims for both regular and extended benefits. Additionally a change has been made to the draft language in paragraph (7) on page 3 of the attachment so that it applies to the specified disqualifications when applied to claimants in either regular or extended benefit claim status. The last sentence on page 17 is also revised to make clear what changes are required in State laws to meet the requirement of section 202(a)(4).

    In our efforts to provide an early release of UIPL No. 14-81 a phrase was erroneously added to the last sentence at the end of the first full paragraph on page 22. The phrase reads, "or the first week beginning after the end of the first regular session of the legislature ending more than 30 days after December 5, 1980." That phrase relates to the grace period allowed to States who need to amend their laws to eliminate their policy of paying regular compensation for the first week of otherwise compensable unemployment in order to avoid loss of the Federal share of the costs for the first week of extended benefits paid to any claimant. The phrase is totally inapplicable to the matters discussed in the above mentioned sentence and paragraph and, therefore, should be deleted.

  4. Action Required. State Administrators are requested to provide the above information to the appropriate staff who should be instructed to discard the present pages 17 and 18, and page 3 of the attachment, and insert in their place the new pages 17 and 18 and page 3 of the attachment. The phrase on page 22 to the extent quoted above should also be deleted.

  5. Inquiries. Questions should be directed to the appropriate regional office.

  6. Attachments. Pages 17 and 18 to UIPL 14-81 and page 3 of the attachment to UIPL 14-81.