In reply refer
to UO
  U. S. DEPARTMENT OF LABOR
Bureau of Employment Security
Washington, D.C. 20210
 
    Unemployment Insurance Program Letter No. 782
September 1, 1964

 

 

 

 

 

 

TO : ALL STATE EMPLOYMENT SECURITY AGENCIES
 
SUBJECT : Secretary's Decision in the New Hampshire Case: Practices in the Payment and Delivery of Checks to Persons Other Than Claimants, Including Attorneys
 
REFERENCES : UIPL No. 779
 
PURPOSE : To obtain information from State agencies on current practices in the payment and delivery of checks to persons other than claimants, including their attorneys.

 

The decision of the Secretary of Labor in the matter of the hearing to the New Hampshire Department of Employment Security, sent to you under cover of UIPL No. 779, stated in part:

"I, therefore, direct the Bureau of Employment Security within six months of this date and following a full review of the various practices followed by the States in the payment and delivery of checks to persons other than claimants, including their attorneys, to prepare for my consideration a standard which would be applicable before finally adopting any standard in this matter, I will submit it to the States with a request for comment. After receiving these comments, and making any changes which I deem desirable as a result of the comments, I will inform the States of the standard which I will make effective at a future date according to the terms of the standard."

As an initial step in the "full review" directed by the Secretary, we request you to furnish the following information:

  1. A detailed description of any situation in which you pay a claimant's benefits or deliver the check knowingly to someone other than the claimant.

  2. With respect to each type of situation included in response to item 1:

    1. The number of cases in which it has occurred in each of the years 1962, 1963, and 1964 to date. (If you are unable to establish the exact number of cases as to any type of situation, please give your best estimate.)

    2. At whose request was such "payment" or "delivery" made and was the request oral or written?

    3. The legal basis which authorizes the "payment" or "delivery," such as statutory provision, attorney general's opinion, or regulation.

          d. A brief description of the manner in which these practices are carried out, including references to written procedures or instructions, if any.

    4. Any discussion you may wish to present of the considerations involved in any of the practices described. (These will be most helpful to us in developing our recommendations to the Secretary.)

  3. Complete the "Report on Court Decisions On Benefit Appeals," a copy of which is attached to this letter, for 1962, 1963, and 1964 to date.

  4. Any specific facts you may have as to whether your practice and procedure, whatever it may be, with respect to paying benefits or delivering benefit checks to attorneys who represent claimants in appeals at the administrative or judicial level has affected the ability of claimants to obtain representation by attorneys in such appeals.

  5. A full report on the particular types of requests you have not honored for "payment" or "delivery" of benefits, by cash or check, to persons other than the claimant. To the extent applicable, please also provide information such as that requested in item 2 above.

In responding to this letter, the following two paragraphs may be helpful. They do not purport to cover the varieties of situations which should be included in your reply and are intended to be merely illustrative.

Examples of "payment" to persons other than claimants are those in which the benefit check is made payable to (1) a claimant's attorney, guardian, survivor, spouse, relative, or a creditor; or (2) another agency of the State, another State, or any governmental authority such as counties, courts, welfare units, taxing authorities, etc. Do not include payments made by a "transferring" State to the "paying" State on a wage-combining claim or reimbursement of one State by another for benefits paid based on improperly allocated contributions.

By "delivery" of benefit checks to a person other than the claimant, we mean any situation in which the check is made payable to the claimant but is knowingly delivered in person or by mail to an individual other than the claimant or knowingly mailed to an address other than the claimant's permanent or temporary residence. Examples would be checks mailed to any of the persons or agencies described in the immediately preceding paragraph, including those in which it may be reasonably expected that the recipient, such as an attorney or landlord, may be a creditor of the claimant.

Since this study will furnish the facts on the basis of which we will develop our recommendations as to a standard we will propose to the Secretary, it is most important that your responses be comprehensive and factual, and that your evaluation be concrete and objective.

In order to permit adequate time for review and analysis, for obtaining any necessary additional data, and for developing conclusions and recommendations, you are requested to furnish this information within 3 weeks of the receipt of this letter.

MANUALIZATION REQUIRED: None

RESCISSIONS: None

Sincerely yours,
Robert C. Goodwin
Administrator

Attachment

Format for "Report on Court Decisions on Benefit Appeals"

 

 

 

 

Attachment UIPL No. 782

Report on Court Decisions on Benefit Appeals
For the Year ___

Number       Number in which claimants were represented before the court by an attorney

 

 

 

Total court decisions on benefit appeals:

  1. Court decisions on appeals taken by claimants:

    1. Decisions in favor of appellant

    2. Decisions unfavorable to appellant

  2. Court decisions on appeals taken by employers:

    1. Decisions in favor of appellant

    2. Decisions unfavorable to appellant

  3. Court decisions on appeals taken by the State employment security agency

- - - - - - - - - - - - - - - - - - - - - - - - - -  - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -  - - - - - - - -

INSTRUCTIONS

  1. Complete this form for each of the following years: calendar years 1962 and 1963; calendar year 1964 to date.

  2. All terms have the same meaning as in ES-221, Benefit Appeals (see sections 4400-4450, part III, Employment Security Manual), except that "appeals taken" refers to actions to obtain judicial review of a benefit decision.

  3. If a decision involves more than one type of appellant (e.g., both a claimant and an employer appealed to the court):

    1. Report it under 1 only, if a claimant was one of the appellants.

    2. Report it under 2 only, if a claimant was not one of the appellants.

  4. On the reverse side of this report form, please include any notes and comments needed to explain your entries.