Paying state for unemployment combined-wage claims

UIPL01-09acc.pdf (https://www.dol.gov/sites/dolgov/files/ETA/advisories/UIPL/2008/UIPL01-09acc.pdf)

                                                                        CLASSIFICATION
            Employment and Training Administration                          UI-CWC
                       Advisory System                                  CORRESPONDENCE SYMBOL

                  U. S. Department of Labor                                OWS/DUIO
                                                                        DATE
                        Washington, D.C. 20210
                                                                           November 14, 2008

ADVISORY: UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 1-09

TO:            STATE WORKFORCE AGENCIES

FROM:          BRENT R. ORRELL /s/
               Deputy Assistant Secretary

SUBJECT:       Interstate Arrangement for Combining Employment and Wages; New
               Definition of Paying State for Combined-Wage Claims

1.    Purpose. To provide guidance to states regarding the change in the definition of
      “paying state” for an unemployment compensation (UC) combined-wage claim (CWC)
      filed under the Interstate Arrangement for Combining Employment and Wages.

2.    References. Section 3304(a)(9)(B) of the Federal Unemployment Tax Act (FUTA), 20 CFR
      Part 616; ET Handbook No. 399; ET Handbook No. 392; 20 CFR Part 616, as amended at 73
      Federal Register (FR) 63068 (October 23, 2008).

3.    Summary. The CWC program allows an unemployed individual with employment and
      wages in more than one state to combine his/her wages to establish a CWC under the
      law of a single state called the “paying state” to qualify for benefits or to receive
      additional benefits (i.e., a higher weekly benefit amount). On October 23, 2008, the
      U. S. Department of Labor published a final rule in the Federal Register changing the
      definition of “paying state.” Effective January 6, 2009, the definition of “paying state”
      at 20 CFR 616.6(e) is amended to mean a single state against which the claimant files a
      CWC, if (1) the claimant has employment and wages in that state’s base period, and (2)
      the claimant qualifies for UC in that state using the combined employment and wages.
      (73 FR 63068 (Oct. 23, 2008)).

      All 50 states, plus the District of Columbia, the Commonwealth of Puerto Rico, and the
      U.S. Virgin Islands are required to participate in the Interstate Arrangement for
      Combining Employment and Wages and will be affected by this change. The attached
      set of questions and answers provide guidance to states about the new definition of
      paying state and the states’ responsibilities for providing CWC filing options.

4.    Action. Administrators are requested to provide this information to appropriate staff.



 RESCISSIONS                                                                    EXPIRATION DATE
 None                                                                           Continuing


5.   Inquiries. States should direct questions to the appropriate Regional Office.

6.   Attachments.

       Attachment #1: Combined-Wage Claims - Questions and Answers on the New
       Definition of Paying State

       Attachment #2: States’ Responsibilities for Providing Combined-Wage Claim
       (CWC) Filing Options Effective January 6, 2009

      Attachment #3: Sample Scripts for Providing Combined-Wage Claim (CWC) Filing
      Options

UIPL01-09a1.pdf (https://www.dol.gov/sites/dolgov/files/ETA/advisories/UIPL/2008/UIPL01-09a1.pdf)

                                                                   Attachment 1 to UIPL No. 1-09

                                  Combined-Wage Claims
                 Questions and Answers on the New Definition of Paying State

A. New Definition of Paying State

1. Question: How does the new definition of paying state change the way an individual files a
CWC?

Answer: Prior to the new amendment, which becomes effective on January 6, 2009, the paying
state is the state in which the individual files the CWC (usually the state where the individual is
physically located at the time of filing a CWC), if s/he qualifies for benefits under the UC law of
that state on the basis of combined employment and wages. The current definition also identifies
the paying state when the individual does not qualify for unemployment benefits under the UC law
of the state in which s/he files the CWC or when the individual applies for a CWC from Canada.

Effective January 6, 2009, the new definition of paying state for a CWC is the state against which
the individual elects to file a CWC, provided the individual has employment and wages in that
state’s base period(s), and the individual qualifies for UC under the law of that state using
combined employment and wages. (See revised 20 CFR 616.6(e).)

2. Question: What is the earliest possible effective date of an initial CWC based on the new
rule?

Answer: The earliest possible effective date of an initial CWC based on the new rule is Tuesday,
January 6, 2009, in states where the effective date of an initial claim may begin on a Tuesday. In
most states, where weeks of unemployment begin on Sunday, the earliest effective date of a CWC
is Sunday, January 11, 2009. This means that individuals filing a CWC in these states during the
week beginning Sunday, January 4, 2009, will be subject to the regulations prior to the
amendment. Individuals filing a CWC during the week beginning Sunday, January 11, 2009, and
thereafter, will be subject to the amended rule that is effective January 6, 2009.

B. States’ Responsibilities Regarding the New Definition of Paying State

1. Question: When an individual contacts a state about filing a CWC, what are the state’s
responsibilities in advising the individual of his/her options?

Answer: The responsibility of the state varies depending on the circumstances of the individual.

If the individual has employment and wages in the state, the state must advise the individual of the
state’s qualifying requirements and his/her potential eligibility for benefits (if any) under its law.
The individual must also be told that s/he has the option to file in any other state(s) where s/he has
employment and wages. The state must advise the individual that there are differences in weekly
benefit amounts and other qualifying requirements (i.e., state laws vary). If the individual wishes
to explore options with any other state(s), the state must provide information about how to contact
any such state(s).


If the individual has no employment and wages in the state, the state must provide general
information about the CWC program and information about how to contact the state(s) where the
individual has employment and wages. (See Attachment 2.)

2. Question: Does the new definition of paying state require states to follow any specific order
in determining which state is the paying state for a CWC claim?

Answer: No. Individuals may establish a CWC in any state in which they have employment and
wages in the base period(s) of the state and qualify based on combining their wages. This includes
individuals residing in Canada who have performed work in the United States.

3. Question: How will individuals determine the appropriate state to file a CWC?

Answer: The individual is responsible for deciding the state against which to file a CWC. States
receiving inquiries from individuals potentially eligible to apply for CWCs must assist such
individuals by providing general information about the CWC program advising that states’
programs/entitlements vary and contact information for the state(s) where the individual worked.

States may refer individuals to America’s Service Locator, which is located at:
http://www.servicelocator.org/OWSLinks.asp and/or to specific states’ Web sites.

4. Question: How does the state inform the individual of other filing options when a state
determines that an individual is monetarily ineligible for a CWC after all wage transfers are complete?

Answer: Under the new rule, a state’s written determination of monetary ineligibility under a
CWC must contain information indicating that the individual may file a CWC claim in another
state where the individual has employment and wages during the state’s base period(s). (See
revised 20 CFR 617.7(f).) States will meet this requirement by including a statement such as the
following:

You may be eligible for benefits on the basis of combining your employment and wages in another
state where you have worked. To file a claim, you will need to contact the other state(s) where you
worked.

5. Question: Prior to the new amendment, there were cases where the paying state did not know
if wages from other states were available for transfer. Does the new definition affect the way
states handle these cases?

Answer: The new amendment does not change current procedures in this regard. When a state is
a potential paying state, it should assist the individual in filing a CWC when the individual wishes
to pursue a claim. As in the past, there will be some instances where individuals’ wages will not
be available for use on a CWC because of administrative complications. States will need to
address these cases on an individual basis. In some cases, a claim may need to be withdrawn and a
backdated claim filed with another state. States should follow existing backdating policies and
procedures.


6. Question: Does the new definition affect the way Federal (civilian and/or military) wages are
assigned?

Answer: The rules about the assignment of Federal wages have not changed.

C. CWC Filing Options

1. Question: When an individual has employment and wages in more than one state, must the
individual file a CWC?

Answer: No, filing a CWC remains voluntary on the part of the individual. (Refer to 20 CFR
616.7(a) and (c).)

2. Question: Under the new definition may an individual establish a CWC under the law of the
state where s/he resides?

Answer: Yes, but only if the individual has sufficient base period wages to qualify for benefits in
the state of residence. An individual’s residence is not relevant in determining the paying state.
(Refer to 20 CFR 616.6(e).)

3. Question: The individual is eligible in State A for a regular intrastate claim using regular base
period wages. State A also has an alternative base period, but it is available only if the individual
is monetarily ineligible under the state’s regular base period. The individual could also establish
eligibility in State B, where s/he has lag quarter wages, which permits the use of the alternative
base period at the individual’s option. What are this individual's filing options?

Answer: The individual has the option to establish: 1) a regular intrastate UC claim in State A, or
2) an interstate CWC against State B.

4. Question: Under the new definition, is an individual who has elected to withdraw a CWC
filed in State A able to establish a CWC in State B in which s/he also has employment and wages?

Answer: Yes, provided the individual is otherwise eligible, does not have an active claim with
available benefits in State A, and has covered employment and/or wages in State B. The fact that
s/he has withdrawn a prior CWC from State A has no effect on whether s/he may establish a CWC
in State B (or any other state in which s/he had employment and wages).

5. Question: What impact does the new rule have on the states’ responsibilities for providing
claim filing options to individuals potentially eligible to file CWCs?

Answer: A state will have different responsibilities with respect to an individual potentially
eligible for a CWC depending on whether it is the CWC “paying state,” “potential paying state,”
“agent state,” or “inquiry state” as defined below:

    • A “paying state” is a single state against which the individual files a CWC, if the
      individual has employment and wages in that state’s base period(s) and the individual
      qualifies for UC under that state’s law using combined employment and wages.
    • A “potential paying state” is a state in which an individual might establish a CWC.


    • An “agent state” is the state that takes the interstate CWC on behalf of the paying state
      because the paying state does not accept interstate claims, including any interstate CWC,
      by phone/Internet.
    • An “inquiry state” is the state contacted by an individual who is potentially eligible for a
      CWC, but who has no employment and wages in that state.

There are generally three levels of responsibility states will have with respect to providing filing
options; these include inquiry filing options, detailed filing options and other filing options. (See
Attachment 2.)

UIPL01-09a2.pdf (https://www.dol.gov/sites/dolgov/files/ETA/advisories/UIPL/2008/UIPL01-09a2.pdf)

                                                                     Attachment 2 to UIPL No. 1-09

     States’ Responsibilities for Providing Combined-Wage Claim (CWC) Filing Options
                                    Effective January 6, 2009

Inquiry Filing Options:
   • States without base period employment and wages (an inquiry state) for the individual must
      provide:
          o general information about the CWC program advising that states’
              programs/entitlements vary; and,
          o contact information for the state(s) where the individual worked during the base
              period(s) of such state(s).

   •   States with base period employment and wages (a potential paying state) for the individual
       must provide:
           o general information about the CWC program advising programs/entitlements vary
              between states;
           o information about its eligibility requirements and the individual’s potential
              eligibility (including weekly benefit amount, maximum benefit amount) under its
              law for:
                  • A regular UI claim; and/or a CWC (based on available information);
           o if available, the maximum weekly benefit amount(s) of the other state(s) where the
              individual worked; and,
           o contact information for the other state(s) where the individual worked during the
              base period(s) of such state(s).

Detailed Filing Options:
     • States with base period employment and wages and any state(s) against which the
         individual decides to file a claim must provide:
              o general information about the CWC program advising programs/entitlements vary
                 between states;
              o a review of the individual’s work history to determine which filing options are
                 available; and,
              o information about its eligibility requirements and the individual’s potential
                 eligibility (including weekly benefit amount, maximum benefit amount) under its
                 law for:
                     • A regular UI claim; and/or a CWC.
If a state is an agent state taking the claim on behalf of the paying state, the agent state will provide
detailed filing options using available information at the time the interstate CWC is filed/taken.

Other Filing Options:
   • If a CWC “paying state” issues a determination that the claimant is monetarily ineligible on
      a CWC after all wages are transferred, it must provide information to the claimant about
      his/her right to establish a claim in another state where s/he worked in its written
      determination of ineligibility. Language similar to the following will satisfy this
      requirement:
          o You may be eligible for benefits on the basis of combining your employment and
              wages in another state where you have worked. To file a claim, you will need to
              contact the other state(s) where you worked.

UIPL01-09a3.pdf (https://www.dol.gov/sites/dolgov/files/ETA/advisories/UIPL/2008/UIPL01-09a3.pdf)

                                                                  Attachment 3 to UIPL No. 1-09

        Sample Scripts for Providing Combined-Wage Claim (CWC) Filing Options


Inquiry Filing Options:
   • States without base period employment and wages (an inquiry state) for the individual must
      provide:
          o General information about the CWC program advising that states’
              programs/entitlements vary; and
          o Contact information for the state(s) where the individual worked during the base
              period(s) of such state(s).

An example of information that must be provided to an individual in a state where the
individual has no employment or wages: “Mr. Jones, because you have worked in three states,
you may be able to establish an unemployment claim with any of those states under the Combined-
Wage Claim program. Your wages will be combined and the amount of your benefits will be
determined under the law of the state where you file your combined-wage claim. This might
increase your benefit amount. You should know that state unemployment laws, weekly benefit
amounts, and eligibility requirements vary between the states. I will provide information to you
about how you may contact each of the states where you have worked to obtain this type of state
information and their filing procedures. Although you may be eligible to receive unemployment
benefits in more than one of these states, you may only establish a combined-wage claim against
one of these states.”

   •   States with base period employment and wages (a potential paying state) must provide:
           o General information about the CWC program advising programs/entitlements vary
              between states;
           o Information about its eligibility requirements and the individual’s potential
              eligibility (including weekly benefit amount, maximum benefit amount) under its
              law for:
                  • A regular UI claim; and/or a CWC (based on available information);
           o If available, the maximum weekly benefit amount(s) of the other state(s) where the
              individual worked; and,
           o Contact information for the other state(s) where the individual worked during the
              base period(s) of such state(s).

An example of information that must be provided to an individual in a state where the
individual has employment and wages (a potential CWC paying state): “Mr. Jones, because
you have worked in three states including this one, you may be able to establish an unemployment
claim with any one of these states under the Combined-Wage Claim program. Your wages will be
combined and your monetary entitlement will be determined under the law of the one state where
you file your combined-wage claim. You should know that state unemployment laws, weekly
benefit amounts, and eligibility requirements vary between the states. Can you tell me where you
have worked in this state? (Follow your state’s procedures on verifying identity.) Thank you. In
what other states did you work? Based on the wages reported by your employer(s), you would
qualify for a weekly benefit amount of $__ and a maximum benefit amount of $__ if you establish
a claim in this state using only your wages earned here. If you establish a combined-wage claim
here using wages earned in the other state(s), you would potentially qualify for a weekly benefit


amount of $___ and a maximum benefit amount of $___. This amount is only an estimate and will
not become final until all out-of-state wages are received here. As I mentioned before, state
unemployment laws and benefit amounts vary between the states. Because of this, you may want to
contact the other states where you have worked to find out your potential eligibility there before
making a decision on which state to file in. Since I have information available concerning the
maximum weekly benefit amounts in the two other states in which you worked I can provide it to
you; the weekly amounts are $___ and $___. I will provide information to you about how you may
contact each of the states where you have worked to obtain information about your potential
entitlement in these states and their filing procedures. Although you may be eligible to receive
unemployment benefits in more than one of these states, you may only establish a combined-wage
claim against one state. Do you have any questions for me?”

Detailed Filing Options:
     • States with base period employment and wages and any state(s) against which the
         individual decides to file a claim must provide:
              o General information about the CWC program advising programs/entitlements vary
                  between states;
              o A review of the individual’s work history to determine which filing options are
                  available; and,
              o Information about its eligibility requirements and the individual’s potential
                  eligibility (including weekly benefit amount, maximum benefit amount) under its
                  law for:
                      • A regular UI claim; and/or a CWC.
If a state is acting as an agent state taking the claim on behalf of the paying state, the agent state
will provide detailed filing options using available information at the time the interstate CWC is
filed/taken.

Scenario 1. An example of information that must be provided to a individual when a filing
decision (i.e., the state where s/he will file the CWC) has been made by the individual: “Mr.
Jones, because you have worked in three states including this one, you may be able to establish an
unemployment claim with any of these states under the Combined-Wage Claim program. Your
wages will be combined and the amount of your benefits will be determined under the law of the
state where you establish your combined-wage claim. You should know that state unemployment
laws, weekly benefit amounts, and eligibility requirements vary between the states. Can you tell
me where you have worked in this state? (Follow your state’s procedures on verifying identity.)
Thank you. In what other states did you work? Based on the wages reported by your employer(s),
you would qualify for a weekly benefit amount of $___ and a maximum benefit amount of $___ if
you establish a claim using only your wages earned here. If you establish a combined-wage claim
here using wages earned here and in the two other state(s), you would potentially qualify for a
weekly benefit amount of $___ and a maximum benefit amount of $___. This amount is only an
estimate and will not become final until all out of state wages are received here. As I mentioned
before, state unemployment laws and benefit amounts vary between the states. Have you contacted
the other states in which you worked to find out about your potential entitlement there? (Claimant
answers yes.) Good. Would you like to establish a combined-wage claim with this state, using the
wages you earned here and wages from the other two states in which you worked? (Claimant
answers yes.) Great, I have a few more questions for you.”


Scenario 2. An example of information that must be provided to an individual when there is
no employment and wages in the state, the individual has chosen to file an agent interstate
CWC claim, and the liable CWC state does not accept phone or Internet claims: “Mr. Jones,
because you have worked in three other states, you may be able to establish an unemployment
claim with any of these states under the Combined-Wage Claim program. Your wages will be
combined and the amount of your benefits will be determined under the law of the one state where
you establish your combined-wage claim. You should know that state unemployment laws, weekly
benefit amounts, and eligibility requirements vary between the states. Can you tell me where you
have worked, the dates of such work and the states in which you worked? (Follow your state’s
procedures on verifying identity.) Thank you. Based on what you have provided to me, you could
establish a claim with any of these states. Have you contacted any of these states to obtain
information about potential eligibility? (Individual answers yes.) And, do you know which state
you wish to establish a claim with? (Claimant answers yes and indicates s/he wants to file a claim
with State A, which does not accept interstate claims by phone or Internet.) I will be happy to take
your claim against State A for you. Please keep in mind that I am acting as their agent in taking
your claim. You will receive detailed information about the amount of benefits for which you
qualify and continuing filing instructions from that state. The exact amount of your entitlement
will not become final until your claim is established and your wages are transferred to the paying
state. I have a few more questions so let’s get started.”