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

CLASSIFICATION

UI/QC

CORRESPONDENCE SYMBOL

TEUQI

ISSUE DATE

December 20, 1985

RESCISSIONS

None

EXPIRATION DATE

December 31, 1986

DIRECTIVE

:

UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 04-86

 

TO

:

ALL STATE EMPLOYMENT SECURITY AGENCIES

 

FROM

:

BARBARA ANN FARMER
Acting Administrator
for Regional Management

 

SUBJECT

:

Revisions to Unemployment Insurance (UI) Quality Control (QC) Program Design Arising from Secretary of Labor's Review

 

  1. Purpose. To announce revisions to the UIQC program design arising from the recent review directed by the Secretary of Labor.

  2. Background. In July 1985, the Secretary of Labor decided to delay implementation of the UIQC program in order to conduct an extensive review of the proposed system. Launched in response to concerns raised about the initial program design, the review consisted of a formal notice in the Federal Register asking for written comments, a special request for comments from Governors and groups interested in Unemployment Insurance, and a public meeting.

    In August 1985, mare than 100 people attended the public meeting and written comments were received from 34 Governors and 27 other interested parties. These comments were instrumental in pointing out needed changes in the design of the Quality Control program.

  3. Policy. In response to comments received, the Department has modified its initial design for QC to incorporate the following changes:

    1. The revised QC program will be implemented in March 1986.

    2. All States will perform "core QC". A minimum of 400 weeks claimed cases per State per year will be investigated to determine whether the payments were proper.

    3. The core QC program will be expanded to include the investigation of claims that had been denied and employer tax collection activities. In addition, other categories of U7 payments (interstate benefits, combined wage claims, and Federal UI benefits) will eventually be included in the program.

    4. Information will not be furnished to the Federal government about individuals whose claims were audited unless that information is provided without revealing the identity of the individuals.

    5. The collection of demographic data elements that do not relate to an individual's eligibility for UI benefits will not be a part of QC.

    6. Obtaining information needed for QC by telephone rather than in faceto-face interviews will be tested on a limited basis.

    7. A portion of additional resources will be used for analysis of data generated by QC, to increase the number of claims sampled in areas where more information is needed, and for corrective action.

    8. No sanctions nor funding "incentives" will be used to force the achievement of specified error rates.

    9. States will release the results of the QC program at the same time each year, providing calendar year results using a standardized format to present the data. States will have the opportunity to release this information prior to, any release at the national level.

  4. Continuing consultations. The Department will continue to consult with States and other interested parties throughout the QC implementation period. Plans to continue the dialogue include the formation of a QC Roundtable consisting of representatives of States, organized labor, and business. The roundtable will help the Department build in consensus changes needed in redesigning and implementing Quality Control and help ensure that significant concerns continue to be identified and addressed. A technical workgroup composed of SESA staff and UIS staff will provide technical support to the roundtable.

  5. Inquiries. Direct questions to your regional office.