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Temporary 2010 extended benefits look-back and nonreduction rule

Summary ETA explained a temporary option for states to compare current unemployment rates with the preceding three years when determining extended benefit periods. It also reminded states of the EUC08 nonreduction rule and supplied draft legislation and revised reporting instructions. ETA still lists this change as Active, though its cited temporary periods ended in 2011 and 2012; current applicability is unclear.
Document
Federal guidance
Agency
U.S. Department of Labor, Employment and Training Administration (ETA)
Document number
UIPL No. 04-10, Change 7
Date issued
December 23, 2010
Status
Unknown
ETA lists this change Active as of 2026-10-24 and the PDF prints “Continuing,” but its optional three-year look-back authority ended December 31, 2011 and its EUC08 period ended in 2012. Current applicability is unclear.
Status last verified October 24, 2026

Apply this to your situation

This page explains the general guidance. Ask about your specific situation and see what current federal labor law says, with citations.

The current status of this document is unclear
ETA lists this change Active as of 2026-10-24 and the PDF prints “Continuing,” but its optional three-year look-back authority ended December 31, 2011 and its EUC08 period ended in 2012. Current applicability is unclear. It may no longer reflect the agency's current position. Treat this page as historical context, not current guidance, and verify current law before relying on anything here.
About this page: The full text below is the official document from U.S. Department of Labor, Employment and Training Administration (ETA). Ezel adds the plain-English summary and tracks the document's status. The official source linked on this page is authoritative for any reliance.
2010/UIPL04-10_Ch7acc.pdf (https://www.dol.gov/sites/dolgov/files/ETA/advisories/UIPL/2010/UIPL04-10_Ch7acc.pdf)

                                                         CLASSIFICATION
   EMPLOYMENT AND TRAINING ADMINISTRATION                Extended Benefits and EUC
               ADVISORY SYSTEM                           CORRESPONDENCE SYMBOL
          U.S. DEPARTMENT OF LABOR                       OUI/DL
             Washington, D.C. 20210                      DATE
                                                         December 23, 2010



ADVISORY:          UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 04-10,
                   Change 7

TO:                STATE WORKFORCE AGENCIES

FROM:              JANE OATES /s/
                   Assistant Secretary

SUBJECT:           Extended Benefits Program – Temporary Changes made by the Tax Relief,
                   Unemployment Insurance Reauthorization, and Job Creation Act of 2010,
                   and Reminder of the Continuation of the Emergency Unemployment
                   Compensation Nonreduction Rule


1. Purpose. To provide additional information about the temporary changes to the federal-state
   extended benefits (EB) program made by the Tax Relief, Unemployment Insurance
   Reauthorization, and Job Creation Act of 2010, and remind states of the continuation of the
   Emergency Unemployment Compensation (EUC08) nonreduction rule.
2. References. Sections 501 and 502 of the Tax Relief, Unemployment Insurance Reauthorization,
   and Job Creation Act of 2010, P.L. 111-312; the Federal-State Extended Unemployment
   Compensation Act of 1970 (“EB law”), 26 U.S.C. 3304 note; 26 U.S.C. 3304(a)(11); 20 CFR Part
   615; Unemployment Insurance Program Letter (UIPL) No. 45-92; UIPL No. 4-10, changes 3 and
   6; UIPL No. 24-10; and Employment and Training Administration (ETA) 539 Report (OMB
   number 1205-0028).
3. Summary of EB Changes. P.L. 111-312 permits states to amend their laws to temporarily
   modify the provisions concerning EB “on” and “off” indicators. Specifically, it permits
   states to make determinations of whether there is an EB “on” or “off” indicator by comparing
   current unemployment rates to the unemployment rates for the corresponding period in the
   three preceding years. This comparison is called a “look-back”. (Under permanent EB law,
   the look-back compares current unemployment rates to rates in the previous two years.) This
   modification to the look-back provisions will enable many states to remain “on” EB much
   longer. This authority expires on December 31, 2011. This UIPL provides:




RESCISSIONS                                            EXPIRATION DATE
None                                                   Continuing

                                               -2-

              Additional information about this optional temporary change to the EB program.

              Draft legislation that states may use when enacting legislation to implement it.

              Revised reporting instructions for the ETA 539.

4. EB Background. Permanent EB law establishes “on” or “off” indicators to determine when
   EB periods begin and end in a state. To ensure that EB is only payable during periods of high
   and rising unemployment, both the mandatory indicator based on the insured unemployment
   rate (IUR) and the optional indicator based on the total unemployment rate (TUR) include
   look-back requirements. Under the mandatory IUR indicator (section 203(d) of the EB law),
   a state will begin and remain in an EB period (under which up to 13 weeks of EB is available)
   if the IUR for the previous 13 weeks is at least 5 percent and equals or exceeds 120 percent of
   the average of the rates for the corresponding period in each of the two previous years. Under
   the optional TUR indicator (section 203(f) of the EB law), a state will begin and remain in an
   EB period (under which up to 13 weeks of EB is available) if the average seasonally adjusted
   TUR for the most recent three months is at least 6.5 percent and equals or exceeds 110 percent
   of the rate for the corresponding three-month period in either or both of the two previous
   years. Additionally, under the optional TUR indicator, a state will begin and remain in a high
   unemployment period (section 202(b)(3)(B) of the EB law)(under which up to 20 total weeks
   of EB is available) if the TUR is at least 8.0 percent and equals or exceeds 110 percent of the
   rate for the corresponding 3-month period in either or both of the two previous years.

  Under permanent EB law, because of sustained high unemployment rates during the last two
  years, many states are expected to trigger “off” EB based on the TUR indicator by early
  spring 2011. Even though states’ TURs are expected to remain high enough to continue to
  meet the first requirement of an EB “on indicator” (i.e., a TUR of at least 6.5 percent), they
  would not likely continue to meet the look-back requirement because the average seasonally
  adjusted TUR for the most recent three months would no longer equal or exceed 110 percent
  of the rate for the corresponding three-month period in either or both of the two previous
  years.

  To enable states to remain “on” EB, section 502 of the Tax Relief, Unemployment Insurance
  Reauthorization, and Job Creation Act of 2010 amends the EB law to permit states to use a
  three-year look-back for the mandatory IUR and/or optional TUR indicator. (In general,
  unemployment rates three years ago were low enough to meet the look-back requirements for
  the EB “on” indicators.) This optional authority applies only to weeks of unemployment
  beginning after December 17, 2010, through weeks of unemployment ending on or before
  December 31, 2011. Since EB is payable under state law, states must amend the EB
  provisions in their laws to apply the three-year look-back when determining EB “on” or “off”
  indicators. States that want to use the three-year look-back should ensure this provision is
  effective before they would trigger “off” EB based on the two-year look-back. Otherwise, the
  state must remain “off” EB for at least 13 weeks, as required by section 203(b)(1)(B) of the
  EB law.

                                               -3-

  Attachment I offers draft legislation for the convenience of states wishing to adopt the
  temporary three-year look-back.

5. EB Reporting. States that adopt the three-year look-back provision for the IUR indicator
   will need to modify the reporting of the ETA 539 to reflect the actual number of prior years
   used in the calculation of the look-back percentage. Current guidance for the ETA 539 only
   allows for two years in the computation of the average rate in prior years, referred to as “AR”
   and defined on page I-1-14 of current reporting guidance. Revised guidance, provided in
   Attachment II, provides for states to use the appropriate number of prior years in the
   computation of the look-back percentage. It also requires states to report in the “comments”
   section the effective date of an enacted three-year look-back provision for any indicator.
   These instructions have been approved by the Office of Management and Budget as a non-
   substantive change to the existing ETA 539 collection.

6. EUC08 Nonreduction Rule Reminder. Section 501 of the Tax Relief, Unemployment
   Insurance Reauthorization, and Job Creation Act of 2010 extends the phase-out period and
   expiration date of the EUC08 program. As outlined in UIPL No. 04-10, Change 3, a state’s
   EUC08 agreement will no longer apply and EUC08 will not be payable in a state if the U.S.
   Department of Labor determines that the method governing the computation of regular
   compensation under the state law has been modified in a manner such that the average weekly
   benefit amount of regular compensation which will be payable during the period of the
   agreement will be less than the average weekly benefit amount of regular compensation which
   would otherwise have been payable during such period under the state law in effect on June 2,
   2010. The period of the agreement includes EUC08 phase-out, which is currently set to
   expire on June 9, 2012. States considering modification of the method governing the
   computation of regular compensation that would be inconsistent with this rule should ensure
   that such amendments to their law become effective after this date. For additional
   information about the applicability of the nonreduction rule, see UIPL No. 24-10.

7. Action Requested. State administrators should distribute this advisory to appropriate staff.

8. Inquiries. Questions should be addressed to your Regional Office.

9. Attachments.

       Attachment I – Draft Legislation – Temporary Three-Year “Look-back”
       Attachment II – Pending Update to HB401 Guidance for the ETA 539

2010/UIPL04-10_Ch7a1.pdf (https://www.dol.gov/sites/dolgov/files/ETA/advisories/UIPL/2010/UIPL04-10_Ch7a1.pdf)

                                                                                 ATTACHMENT I


            DRAFT LEGISLATION – TEMPORARY THREE-YEAR “LOOK-BACK”


DISCUSSION
Below is suggested legislative language for states that choose to amend their extended benefits
(EB) law to provide for a temporary three-year “look-back” when determining “on” and “off”
indicators as provided in Section 502 of the Tax Relief, Unemployment Insurance
Reauthorization, and Job Creation Act of 2010, P.L. 111-312. This language supplements the
draft language for subparagraphs (a)(2)(A) and (C) transmitted in Attachment II to UIPL No. 45-
92 by creating a new subsection (b).
This suggested legislative language pertains to both the mandatory insured unemployment rate
(IUR) indicator and the optional total unemployment rate (TUR) indicator. Although, in general,
states are currently “on” EB through the TUR indicator, states, particularly those with temporary
TUR indicators, may want to adopt the language pertaining to the IUR indicator as well as the
TUR indicator language. (If authority for the three-year look-back is extended beyond
December 31, 2011, it would be possible to remain “on” EB through the IUR indicator after
states’ temporary TUR indicators expire due to lack of continued 100 percent Federal funding of
most EB costs.) States that have not been “on” EB during this recession may not wish to adopt
any of this language, as it would have no practical effect.
There are two parts of the suggested legislative language that states may want to customize—the
effective date and expiration date of this provision. The effective date was written to become
effective upon enactment of P.L. 111-312. The bracketed bold language following is an
alternative effective date based on the date established under state law, if it is later than the date
of enactment of P.L. 111-312. The expiration date was written to mirror the current statutory
end date for the three-year “look-back” – December 31, 2011. The bracketed bold language
following provides an alternative, based on the possibility that Congress will extend this
provision. It ties expiration of the provision to the date Congress chooses. There also are
placeholders in bold for insertion of citations to the appropriate sections of the state’s code.



DRAFT LANGUAGE
 (b)(1) With respect to compensation for weeks of unemployment beginning after date of
enactment of P.L. 111-312 [or, if later, the date established under State law], and ending on
or before December 31, 2011 [or the date established in Federal law permitting this
provision]--
     (A)(i)(I) there is a State "on" indicator for a week if the average rate of insured
unemployment under section XX of the state’s code for the period consisting of such week and
the immediately preceding twelve weeks equals or exceeds 5 percent, and

        (II) the average rate of insured unemployment under section XX of the state’s code for
the period consisting of such week and the immediately preceding twelve weeks equals or
exceeds 120 percent of the average of such rates for the corresponding 13-week period ending in
each of the preceding three calendar years;
        (ii) there is a State "off" indicator for a week based on the rate of insured unemployment
only if for the period consisting of such week and the immediately preceding twelve weeks,
paragraph (1)(A)(i) does not result in an "on" indicator.
     (B)(i)(I) there is a State "on" indicator for a week if the average rate of total unemployment
(seasonally adjusted), as determined by the United States Secretary of Labor, for the period
consisting of the most recent 3 months for which data for all States are published before the
close of such week equals or exceeds 6.5 percent, and
       (II) the average rate of total unemployment in the State (seasonally adjusted), as
determined by the United States Secretary of Labor, for the 3-month period referred to in
subclause (I), equals or exceeds 110 percent of such average for any or all of the corresponding
3-month periods ending in the 3 preceding calendar years;

        (III) there is a “high unemployment period” as provided in section YY of the state’s
code if subclause (I) were applied by substituting “8 percent” for “6.5 percent”;
        (ii) there is a State "off" indicator for a week based on the rate of total unemployment
only if for the period consisting of the most recent 3 months for which data for all States are
published before the close of such week, paragraph (1)(B)(i) does not result in an "on" indicator.

2010/UIPL04-10_Ch7a2.pdf (https://www.dol.gov/sites/dolgov/files/ETA/advisories/UIPL/2010/UIPL04-10_Ch7a2.pdf)

                     UI REPORTS HANDBOOK NO. 401
          ETA 539 Weekly Claims and Extended Benefits Trigger Data

                                                                                                   ATTACHMENT II

                                                    CONTENTS

A.   Facsimile of Form .........................................................................................I-1-3
     1. ETA 539 Screen......................................................................................I-1-3
     2. Recommended Worksheet......................................................................I-1-4
B.   Purpose..........................................................................................................l-1-5
C.   Due Date and Transmittal .............................................................................l-1-5
D.   General Reporting Instructions ...................................................................l-1-5
     1. Interstate Claims .....................................................................................I-1-5
     2. Initial Claims............................................................................................I-1-6
     3. Continued Weeks Claimed......................................................................I-1-6
     4. Adjustment of Data..................................................................................I-1-6
     5. Checking the Report ...............................................................................I-1-7
E.   Definitions......................................................................................................l-1-7
     1. Federal-State UI Extended Compensation Program ...............................I-1-7
     2. State UI Additional Compensation Program............................................I-1-7
     3. Shot Time Compensation Program .........................................................I-1-7
     4. State UI Regular Compensation Program ...............................................I-1-8
     5. State Extended Benefit Period ................................................................I-1-8
     6. 13-Week Period ......................................................................................I-1-8
     7. Week Numbers .......................................................................................I-1-8
     8. Comparison Weeks.................................................................................I-1-8
     9. Covered Employment..............................................................................I-1-8
     10. Determination of State Extended Benefit Period ....................................I-1-9
F.   Item by Item Instructions..............................................................................I-1-12
     1. IC ............................................................................................................I-1-13
     2. FIC ..........................................................................................................I-1-13
     3. XIC ..........................................................................................................I-1-13
     4. WSIC.......................................................................................................I-1-13
     5. WSEIC ....................................................................................................I-1-13
     6. CW ..........................................................................................................I-1-13
     7. FCW ........................................................................................................I-1-13
     8. XCW........................................................................................................I-1-13
     9. WSCW ....................................................................................................I-1-13
     10. WSECW ..................................................................................................I-1-13
     11. EBT .........................................................................................................I-1-13
     12. EBUI........................................................................................................I-1-13
     13. ABT .........................................................................................................I-1-13
     14. ABUI........................................................................................................I-1-13
     15. AT ...........................................................................................................I-1-13
     16. CE ...........................................................................................................I-1-14
     17. R .............................................................................................................I-1-14
     18. AR ...........................................................................................................I-1-14

                                                           I-1-1
                                                          4/2007

                     UI REPORTS HANDBOOK NO. 401
          ETA 539 Weekly Claims and Extended Benefits Trigger Data
     19. P..............................................................................................................I-1-14
     20. Status ......................................................................................................I-1-15
     21. Status Change Date................................................................................I-1-15
     22. Comments...............................................................................................I-1-15
G.   Standby Emergency Reporting ....................................................................I-1-16
H.   Recommended Worksheet ...........................................................................I-1-16




                                                           I-1-2
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                        UI REPORTS HANDBOOK NO. 401
             ETA 539 Weekly Claims and Extended Benefits Trigger Data


A.        Facsimile of Forms

          1. ETA 539 Screen

                                   ETA 539 - CLAIMS AND EXTENDED BENEFITS DATA
       STATE                  REGION                                   REPORT FOR PERIOD ENDING




Week Number:                                    Reflected Week Ending:
IC:                     FIC:                    XIC:                     WSIC:                          WSEIC:
CW:                     FCW:                    XCW:                     WSCW:                          WSECW:
EBT:                    EBUI:                   ABT:                     ABUI:
AT:                     CE:                     R:                       AR:                            P:
STATUS:                                   STATUS CHANGE DATE:

Comments:




OMB No.: 1205-0028             OMB Expiration Date: 09/30/2012         Average Response Time: 50 minutes

O M B Burden Statement: These reporting instructions have been approved under the Paperwork reduction Act of 1995. Persons
are not required to respond to this collection of information unless it displays a valid OMB control number. Public reporting burden
for this collection of information includes the time for reviewing instructions, searching existing data sources, gathering and
maintaining the data needed, and completing and reviewing the collection of information. Submission is required to obtain or retain
benefits under SSA 303(a)(6). Send comments regarding this burden estimate or any other aspect of this collection of information,
including suggestions for reducing this burden, to the U.S. Department of Labor, Office of Unemployment Insurance, Room S-4231,
200 Constitution Ave., NW, Washington, DC, 20210.




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                                                             4/2007

                        UI REPORTS HANDBOOK NO. 401
             ETA 539 Weekly Claims and Extended Benefits Trigger Data

            2.         Recommended Worksheet

RECOMMENDED WORKSHEET FOR THE TRIGGER PORTION OF THE ETA 539

For states using a two year look-back, enter zero into column 11 of the worksheet below. For states
using a three year look-back, enter the rate from the third year into column 11 of the worksheet below.
The calculations in columns 12 and 13 will be identical regardless of the number of years in the state
look-back.


      (1)        (2)            (3)            (4)           (5)          (6)        (7)          (8)        (9)     (10)    (11)      (12)          (13)
                            Insured                       13 Week                                                                    Average
             Insured                       Total                                               Rate         Rate    Rate     Rate
     Week                   Unemployment                  Total         13 Week                                                      Rate for
WK           Unemployment                  Insured                                Covered      Current 13   First   Second   Third                  Percent
     End                    STC                           Current (4)   Average                                                      Prior years
NO           Regular                       Unemployment                           Employment   Week year    Prior   Prior    Prior                  (8)/(12)
     Date                   Equivocal                     + prior 12    (5)/13                                                       { (9) + (10)
             (CW)                          (2) + (3)                                           (6)/(7)      Year    Year     Year
                            (WSECW)                       weeks                                                                      + (11) } / 3


01
02
03
04
.
.
.
.
50
51
52




                                                                         I-1-4
                                                                        4/2007

                     UI REPORTS HANDBOOK NO. 401
          ETA 539 Weekly Claims and Extended Benefits Trigger Data

B.   Purpose

     The Federal-State Extended Unemployment Compensation Act of 1970 (Title II of
     Public Law 91-373, Employment Security Amendments of 1970) and amendments
     govern the triggering on or off of the Extended Benefit (EB) program. This report
     serves as the state Administrator's initial notice to the Employment and Training
     Administration (ETA) National Office that a state extended benefit period will begin
     or end for a specified week. Subchapter 5724, Part V of the ES Manual, contains
     additional instructions for a letter from the state agency head to the Secretary of
     Labor stating the date of the beginning or ending of a state extended benefit
     period. That letter, along with this report, will enable the ETA National Office to
     confirm that an extended benefit period will begin or end in an individual state, and
     will enable the Secretary to have published in the Federal Register the notices
     required by the Act.

     The claims data contained on the ETA 539 report are used in current economic
     analysis of unemployment trends in the Nation, and in each state. Initial claims
     measure emerging unemployment and continued weeks claimed measure the
     number of the insured unemployed. These data are published in ETA's weekly
     release "Unemployment Insurance Claims." The comments on claims activity are
     used to explain the changes in the levels of the data reported from week to week.

C.   Due Date and Transmittal

     Weekly reports shall be submitted in time to reach the ETA National Office by the
     opening of business Thursday following the week in which the claims were filed. If
     necessary to meet the due date, any state agency may cut off its report period at
     noon Friday.

     This report will be transmitted electronically. If electronic transmittal is not
     possible, the data should be phoned or faxed into the ETA National Office.

D.   General Reporting Instructions

     1.    Interstate Claims. Some liable states have claims taking arrangements with
           one or more agent states where a considerable number of claimants reside
           whose work prior to unemployment was in the liable state.                  These
           arrangements may consist of liable state staff taking interstate claims on its
           claims forms in one or more agent state's local offices; agent state staff taking
           related interstate claims on the liable state's claims forms; or terminals are
           used to enter claims directly into liable state's automated reporting system. In
           these arrangements, interstate claims should be counted as agent interstate
           claims for the purposes of ETA 539 by the agent state from which the claim is
           filed.




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                UI REPORTS HANDBOOK NO. 401
     ETA 539 Weekly Claims and Extended Benefits Trigger Data

2.    Initial Claims. Initial claims reported should consist of intrastate initial claims
      and interstate initial claims filed from the agent state. This count of interstate
      agent initial claims includes those taken by the agent state and those reported
      to the agent state as having been taken directly by the liable state.

3.    Continued Weeks Claimed. This figure represents the insured unemployed in
      the reporting state and is used for economic purposes. The counts of
      continued weeks claimed for all unemployment benefit programs described in
      section E. consist of intrastate and interstate continued weeks claimed filed
      from the agent state whether actually taken by the agent state or reported
      back to the agent state by liable states. Interstate weeks claimed reported to
      the agent state by liable states should represent the total interstate weeks
      claimed to be included in this report as all claims filed from the agent state
      because the figures reported by the liable state include those claims taken
      directly by the agent state.

      Counts of weeks compensated or of checks issued, or of processed weeks
      claimed should not be substituted for any part of the continued weeks claimed
      count unless rigid processing schedules are adhered to so that the count is
      not affected by administrative factors and does reflect the count of weeks
      claimed. Automated systems using proxy counts must be modified to gather
      the interstate agent state count, not the interstate liable weeks claimed count.

      Continued weeks claimed should include weeks that benefits were claimed,
      even though such benefits were not paid or payment status is uncertain or
      unknown, e.g., waiting weeks, partial weeks, weeks for which denials are
      being served (when this is a local office reporting requirement) and weeks for
      which a monetary or nonmonetary issue is pending. The figures should
      reflect, as closely as possible, the normal seasonal level of claims activity.
      They should be adjusted as much as possible for administrative factors such
      as holiday rescheduling, the beginning or ending of biweekly reporting and
      reporting disruptions because of non-economic factors or emergencies such
      as computer failure, floods, fires, storms, etc.

4.    Adjustment of Data. When claimants' filing dates for continued claims are
      rescheduled by the local office to a week other than their "normal" reporting
      week, or the state agency reschedules claimants from weekly to biweekly
      reporting, the counts of continued weeks claimed will often be affected.
      Estimates of continued weeks claimed under the UI, UCFE, UCX, and other
      programs should be made for each item and reported on the ETA 539 for
      each week that claims counts are thus affected. Because of the importance
      of accurate economic representation of the claims counts, only figures
      adjusted for non-economic distortions should be submitted. Adjustments of
      the weeks claimed should be made separately for each program. Only these
      adjusted figures should be reported on this report. Particular care should be
      taken to adjust biweekly data to eliminate the application of judgmental


                                        I-1-6
                                       4/2007

                     UI REPORTS HANDBOOK NO. 401
          ETA 539 Weekly Claims and Extended Benefits Trigger Data
           factors. This is easily accomplished by relying upon the application of
           predetermined allocation or proration rules. Worksheets supporting these
           adjustments should be retained for future statistical audits.

           For those weeks when continued weeks claimed were adjusted, the
           unadjusted figures should not be reported. That is, for each report week, only
           the adjusted continued weeks claims should be reported.

     5.    Checking the Report. Entries should be made for all items. IC and CW
           figures should be compared with the same figures in the prior week and any
           large differences explained in the comments section if possible. If no activity
           corresponding to the items occurred during the report period, a zero should
           be entered. A report containing missing data can not be sent to the National
           Office but can be stored on the state's system. Edit checks can be found in
           Handbook 402, Unemployment Insurance Required Reports User’s Manual,
           Appendix C.

E.   Definitions

     Except as noted below, definitions will be the same as those used in the UI
     program and found in the instructions for the ETA 5159, section I-2 of this
     handbook.

     1.    Federal-State UI Extended Compensation Program. A program to pay
           extended compensation to an individual:

           a. For weeks of unemployment beginning in an extended benefit period.

           b. Under those provisions of a state law which satisfy the requirements of
              Title II of the Employment Security Amendments of 1970, as amended.
              This excludes compensation payable under the UCFE and UCX program.

     2.    State UI Additional Compensation Program. A program totally financed by a
           state to pay additional compensation under a state law to exhaustees by
           reason of conditions of high unemployment or other special factor.

     3.    Short-Time Compensation (STC) Program (also known as Worksharing). A
           program to pay benefits to those in an approved state short-time
           compensation or worksharing program.

           a. Short-Time Compensation Equivalent Initial Claims. This is the equivalent
              of the full time layoff initial claims that would have taken place if not for the
              STC program. This should be based on the employer's agreement with
              the state as to the proportion of hours STC claimants from their firm are
              being reduced. That is, if the agreement is for a 20 percent reduction in
              each STC claimant's hours, then each of these claimants’ initial claims


                                             I-1-7
                                            4/2007

                UI REPORTS HANDBOOK NO. 401
     ETA 539 Weekly Claims and Extended Benefits Trigger Data
         would represent 20 percent of an equivalent full time layoff initial claim.
         Include any residual initial claims which result from a crossover from the
         STC program to the regular program.

      b. Short-Time Compensation Equivalent Continued Weeks Claimed. This is
         based on the proportion of the week being claimed. That is, if two STC
         claimants each claimed 1/5th of a week and another STC claimant
         claimed 2/5ths of a week, the equivalent continued weeks claimed for the
         three claimants would be 4/5ths or .8 weeks.

4.    State UI Regular Compensation Program. A program to pay compensation
      under any state unemployment compensation law other than extended,
      additional compensation or STC; and excluding compensation payable
      pursuant to 5 U.S.C., chapter 85.

5.    State Extended Benefit Period. A payment period when Federal-State UI
      extended compensation is paid in a state because of the state indicator for
      that state.

6.    13-Week Period. The 13-week period referred to in section 9. below, includes
      weeks of unemployment experienced during a given calendar week and the
      12 immediately preceding calendar weeks. Conceptually, weeks claimed
      during a week reflect insured unemployment in the prior week, so the 13-
      week period of unemployment will always end 1 week prior to the week in
      which the claims were filed.

7.    Week Numbers. The first week of unemployment in the year (i.e., week one
      appearing in Trigger Notice YY-1) is considered the week containing January
      1. Note that week one in a year represents the second report for the year,
      i.e., weeks claimed for the second week in the year which represent insured
      unemployment during the first week in the year.

8.    Comparison Weeks. For the purpose of determining the corresponding 13-
      week period ending in each of the preceding calendar years, each calendar
      week shall be identified by the date (calendar month and day of the month) on
      which it ends. For any specific calendar week, the date of the comparable
      week in the immediately preceding calendar year is determined by adding
      one (1) to the date of the end of the specific week, or by adding two (2) if the
      date of the end of the specific week is February 29, or if a February 29 falls
      between the beginning date of the week which contains the date established
      by the addition of one to the specific week, and the ending date of the specific
      week.

9.    Covered Employment. The covered employment figure used to determine the
      insured unemployment rate includes all employment covered by state law
      including private sector employment, employment in covered state and local


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              UI REPORTS HANDBOOK NO. 401
   ETA 539 Weekly Claims and Extended Benefits Trigger Data
     government establishments and in nonprofit organizations whether the
     establishment is paying contributions or reimbursing for benefits. It excludes
     employment in Federal Government establishments.

    The covered employment figure used for this report is always the 12-month
    average covered employment for the first 4 of the last 6 complete calendar
    quarters prior to the end of the last calendar week of the current 13-week
    period to which the insured unemployment data relate. As stated in 6. above,
    the 13-week period for insured unemployment will always end 1 week prior to
    the end of the week in which the claims were filed. (For determining the
    proper covered employment figure, the end of the week should always be
    considered to be a Saturday.) For example, the report for the week ending
    April 1, 2006 (due in the ETA National Office on April 6, 2006), would relate to
    insured unemployment for the period ending March 25, 2006. Since this latter
    date is still in the first calendar quarter, the covered employment figure
    included on the report and used in the rate calculations would be the figure for
    the 12-month period ending June 2005. The covered employment figure for
    the 12-month period ending September 30, 2005 would first be reported and
    used on the report for the week ending April 8, 2006 (due in the National
    Office by April 13, 2006, relating to the insured unemployment for the week
    ending April 1, 2006).

     When the figure on covered employment for a quarter has been used in
     computing a rate of insured unemployment under P.L. 91-373, as amended,
     which triggers a state "on" or "off", the figure is frozen so far as trigger rate
     computations are concerned, and cannot be revised.

10. Determination of State Extended Benefit Period. Each week the state agency
    must determine whether a state extended benefit period will begin, will end, or
    whether there will be no change. The state indicator is the primary factor in
    making this determination, subject to the limitation that a state extended
    benefit period, once begun, continues for a minimum of 13 weeks, and once
    ended, must not begin again for 13 weeks. There must be an interval of at
    least 13 weeks between the beginning and the end of one extended benefit
    period or, between the end of one and the beginning of a next extended
    benefit period based on the state indicator.

    The final items on the ETA 539 report are the notification of the status of the
    state extended benefit period and the date of change of status. In addition to
    this report, a letter of confirmation of the beginning or ending of a state
    extended benefit period must be sent in accordance with instructions in the
    Employment Security Manual, Part V section 5700.

     a. Beginning an EB Period. There are two ways a state may trigger "on"
        using the insured unemployment rate (IUR). First, an extended benefits
        period begins when all three of the following indicator conditions are met:


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           UI REPORTS HANDBOOK NO. 401
ETA 539 Weekly Claims and Extended Benefits Trigger Data


   (1)   R as described in F.17 below is 5.00 percent or over; and

   (2)   P as described in F.19 below is 120 percent or over; and

   (3)   State extended benefit payments have not been paid for at least 12
         weeks including the current report week, so that there will have been
         at least 13 weeks of nonpayment before the week benefit payments
         begin.

   A State must have the above trigger in it’s law to be in conformity.
   Alternatively, under the Unemployment Compensation Amendments of
   1976, a state has the option to modify its "on" trigger criteria based on the
   insured unemployment rate (IUR) if appropriate state legislative action is
   taken. The amendments combined with those in the Omnibus Budget
   Reconciliation Act of 1981 provide that with respect to compensation for
   weeks of unemployment beginning September 25, 1982 (or, if later, the
   date established pursuant to state law), a state may by law determine
   whether there has been a state "on" indicator beginning an extended
   benefit period provided the following two indicator conditions are met.

   (1)   R as described in F.17. below is 6.00 percent or over.

   (2)   State extended benefit payments have not been paid for at least 12
         weeks including the current report week, so that there will have been
         at least 13 weeks of nonpayment before the week benefit payments
         begin.

   EB law also allows states the option of using a trigger based on the total
   rate of unemployment as determined by the Bureau of Labor Statistics.

   Report the beginning of a state extended benefit period as the first week
   payable in the period using the Sunday date (or first day of the week as
   defined in state UI Law) to designate the beginning of the third week
   following the end of the insured week (the 13th week of a 13-week period
   for which an "on" determination is made) and 2 weeks from the end of the
   report week in which the claims were filed provided the above indicator
   conditions are met.

   Example: If a state indicator was "on" (i.e., both R and P criteria as
   defined above are met) for the 13-week period ending December 4, 2010,
   the extended benefit period would begin on the first day of the third
   calendar week thereafter, namely, December 19, 2010. Therefore, the
   ETA 539 report for the week ending December 11, 2010, which represents
   insured unemployment for the week ending December 4, 2010, and is due
   in the ETA National Office by the opening of business on Thursday,


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           UI REPORTS HANDBOOK NO. 401
ETA 539 Weekly Claims and Extended Benefits Trigger Data
    December 16, 2010, would read "Status Change - B" and "Change Date
    12/19/2010".

    Example: Assume that a state had been paying extended benefits for at
    least 13 weeks and the state indicator was first "off" (i.e., either R or P as
    defined above is not met) for the week ending November 13, 2010. This
    first extended benefit period would therefore end on the last day of the
    third week thereafter, namely, December 4, 2010. (Note that the minimum
    13-week extended benefit period could be for a longer period.) Since no
    extended benefit period may begin before the 14th week after the close of
    a prior extended benefit period, the earliest date a second extended
    benefit period could begin would be March 6, 2011, provided a state
    indicator were "on" for the week ending February 19, 2011. The ETA 539
    report for the week ending February 26, 2011, which represents insured
    unemployment for the week ending February 19, 2011, is due in the ETA
    National Office by the opening of business on Thursday, March 3, 2011,
    and this report would read "Status change - B" and "Change Date -
    03/06/2011", that is March 6, 2011.

 b. Ending an EB Period. A state would report the ending of a state extended
    benefit period as the last week payable in the period using the Saturday
    date (or the last day of the week as defined in state UI law) to designate
    the close of the 3rd week following the end of the insured week (the 13th
    week of a 12-week period for which an "off" determination is made) and 2
    weeks from the end of the report week in which the claims were filed
    provided item (1) below and either item (2) or (3) are met.

    (1)   State extended benefit payments have been paid for at least 12
          weeks including the current week so that there will have been at least
          13 weeks of benefit payments before the period ends.

    (2)   R as described in F.17 is less than 5.00 percent or

    (3)   P as described in F.19 is less than 120 percent.

    Alternately, when a state, by law, has modified its "on" trigger conditions to
    include the optional IUR trigger as described in 10.a. above, the "off"
    trigger conditions ending a state extended benefit period must meet both
    items (1) and (2) and either item (3) or (4) below.

    (1)   State extended benefit payments have been paid for at least 12
          weeks including the current week so that there will have been at least
          13 weeks of benefits before the period ends.

    (2)   R as described in F.17 is less than 6.00



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                   UI REPORTS HANDBOOK NO. 401
        ETA 539 Weekly Claims and Extended Benefits Trigger Data
             (3)   R as described in F.17 is less than 5.00 percent.

             (4)   P as described in F.19 is less than 120 percent.

             Report the ending of a state extended benefit period as the last week
             payable in the period using the Saturday date to designate the close of the
             3rd week following the end of the insured week (the 13th week of a 12-
             week period for which an "off" determination is made) and 2 weeks from
             the end of the report week in which the claims were filed.

             Example: Assume that a state indicator was "on" for the 13-week period
             ending April 9, 2011, and the extended benefit period began on April 24,
             2011. Assume further that a state indicator was "off" for the week ending
             August 27, 2011, which represents insured unemployment for the week
             ending August 20, 2011. This would be due in the National Office by the
             opening of business on Thursday, September 1, 2011, and would read
             "Status Change - E" and "Date Change - 08/27/2011."

          c. No Change of Status. When there is no change of status for the week
             being reported, Status and Change Date may be "returned through"
             because the system will default the values to the values of the prior week.

             Status and Change Date will be the same for at least 11 weeks--for the
             week immediately preceding an extended benefit period and for each of
             the first 10 consecutive weeks of an extended benefit period. This
             minimum period of 11 weeks contains the number of weeks which lapse
             between the weekly report showing a Beginning date and the weekly
             report reflecting an Ending date. Note that a Status and Change Date
             may continue to be unchanged for a period of time which exceeds this
             minimum.

F.   Item by Item Instructions

     Items to be reported are listed below. More detailed information can be found in
     section E. above. The letter or letters used to identify each item on the weekly
     report are given in parentheses before the title of the item. Each state must report
     the weekly numbers associated with the items listed below, identified by the
     underlined code. These data refer to claims activity under the state UI and Federal
     UCFE and UCX programs (refer to Introduction, section K for program
     classification). When applicable, data pertaining to Federal/State extended benefit
     (EB) activity should be reported as identified in items 11 and 12. When
     appropriate, data pertaining to state additional benefits programs should be
     reported as identified in items 13 and 14. States which have an STC or workshare
     program should report appropriate data in items 4, 5, 9, and 10. If a particular
     program does not apply to your state, those items should be zero filled.



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                UI REPORTS HANDBOOK NO. 401
     ETA 539 Weekly Claims and Extended Benefits Trigger Data

1.    IC. State UI Initial Claims, less intrastate transitionals.

2.    FIC. UCFE-no UI Initial Claims.

3.    XIC. UCX only Initial Claims

4.    WSIC. STC or workshare total initial claims

5.    WSEIC. STC or workshare equivalent initial claims

6.    CW. State UI adjusted continued weeks claimed

7.    FCW. UCFE-no UI adjusted continued weeks claimed

8.    XCW. UCX only adjusted continued weeks claimed

9.    WSCW. STC or workshare total continued weeks claimed

10. WSECW. STC or workshare equivalent continued weeks claimed

11. EBT. Total continued weeks claimed under the Federal/State Extended
    Benefit Program--includes all intrastate and interstate continued weeks
    claimed filed from an agent state under the state UI, UCFE and UCX
    programs.

12. EBUI. That part of EBT which represents only state UI weeks claimed under
    the Federal/State EB program.

13. ABT. Total continued weeks claimed under a state additional benefit
    program for those states which have such a program. (Includes UCFE and
    UCX.)

14. ABUI. That part of ABT which represents only state UI additional continued
    weeks claimed for those states which have such a program.

15. AT. Average adjusted Total Continued Weeks Claimed. Report the average
    of the sum of the CW and WSECW figures for the most recent calendar week
    of unemployment experience and the immediately previous 12 calendar
    weeks of unemployment experience (CW+WSECW) divided by 13; i.e.,
    AT = ∑ ( CWi + WSECWi )
                   13               where i = 1 to 13

      AT should have no decimals and should be rounded up for .5 or more.

16. CE. Covered Employment. Report the 12-month average monthly covered
    employment for the first 4 of the last 6 completed calendar quarters prior to


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              UI REPORTS HANDBOOK NO. 401
   ETA 539 Weekly Claims and Extended Benefits Trigger Data
     the end of the last week of the current 13-week period to which the insured
     unemployment data relate. This figure will change only once each quarter, as
     specified in section F.9. above.

17. R. Rate of Insured Unemployment. Report the rate of insured unemployment
    for the current 13-week period. The insured unemployment rate for a 13-
    week period is the result of dividing the average adjusted total continued
    weeks claimed (AT) by the covered employment (CE); i.e.,

     R = AT
         CE

     This quotient or decimal fraction is to be computed to four decimal places, is
     not to be otherwise rounded, and is to be expressed as a percent by
     multiplying the resultant decimal fraction by 100. Examples: 0.0439 x 100 =
     4.39% and 0.0246 x 100 = 2.46%

18. AR. Average Rate of Insured Unemployment in Prior Years. Report the
    average of the rates of insured unemployment for the corresponding 13-week
    periods in the number of prior years allowed for in state law (See E.6. above).
    The average rates in each of the prior years is computed as the sum of the
    rates divided by the number of years; i.e.,

            R1  R2    R N
     AR 
                    N

     where R1 + R2 + … + RN refer to the rates for the corresponding 13-week
     period in prior years and N is the number of prior years specified in state law.
     The quotient AR is to be computed to three decimal places, is not to be
     otherwise rounded, and is to be expressed as a percent.

     Example using two prior years : If R1=4.39% and R2=2.46% then:

     AR 
            4.39%  2.46%   6.85  3.425%
                   2            2

     Example using three prior years: If R1=5.12% and R2=4.86% and R3=4.25%
     then:

     AR 
            5.12%  4.86%  4.25%  14.23  4.743%
                       3                3

     These detailed illustrations are provided to clarify the intent of the Secretary's
     Regulations. Since all three statistics--P, R, and AR--are defined in terms of



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              UI REPORTS HANDBOOK NO. 401
   ETA 539 Weekly Claims and Extended Benefits Trigger Data
     rates, the quotient of AR is to be computed in a manner identical to and
     consistent with the computations of statistics P and R.

19. P. Current Rate as Percent of Average Rate in Prior Years. This percent is
    defined as:

     P= R
       AR

     P is to be computed to four decimal places, is not to be otherwise rounded,
     and is to be expressed as a percent by multiplying the resultant decimal
     fraction by 100. Example: 1.2515 x 100 = 125.15%, and .8753 x 100 =
     87.53%.

20. Status (B or E). Indicate the beginning (B) or ending (E) of a state extended
    benefit period.

21. Change Date. If Status has changed since the prior week, enter the date the
    change is effective.

22. Comments.       Each weekly ETA 539 report should contain adequate
    information to support and explain the nature of the claims data. The material
    used for such information should be readily available in local offices without
    additional data gathering procedures.

     Information should include both economic and administrative factors which
     affect significantly the data reported weekly on the ETA 539. The comments
     are of interest to Federal agencies monitoring economic activity. They are
     particularly important when there are significant rises or declines in either
     initial claims or continued weeks claimed counts. The importance of the
     comments from each state can not be overstated.

     The following describes the types of information needed to support weekly
     fluctuations for both initial claims and continued weeks claimed:

        Primary cause of significant increase or decrease in activity such as
         temporary mass layoff, plant closing, or cutback in military procurement.

        Approximate number or percent of total initial claims and/or continued
         weeks claimed involved.

        Industry involved.

        Administrative factors such as the beginning of a new benefit year
         (excluding those filing transitional claims), delayed claims for partial
         unemployment, etc. that significantly affect the volume of weekly claims.

                                    I-1-15
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                   UI REPORTS HANDBOOK NO. 401
        ETA 539 Weekly Claims and Extended Benefits Trigger Data
             Also, when weekly claims exhaustions are numerous enough to affect
             claims data, an estimate of the number of exhaustions, if available, should
             be included.

          Using meaningful abbreviations, these comments can usually be kept to the
          four lines supplied on the input screen. An example of a comment might be:

          "IC up 5% due to seasonal layoffs in Ag., Const. and layoffs at Alpha
          Corp.,NAICS 278,. CW down 8% due to call back at Beta Co., NAICS 349."
          (SIC codes may be used if they are labeled as such.)

          In addition, anytime a state law is changed with regard to the number of years
          used in the look-back related to the triggering of EB, or other federal
          programs dependent on rates calculated and reported on the ETA 539, a
          comment should be provided indicating the effective date of the state law
          change and the number of years used in calculating the look-back.

          Note: When claims filing is effected by holidays or other noneconomic events
          such as computer failure or natural disaster, the data should be adjusted as in
          section D.4.

G.   Standby Emergency Reporting

     When national, state, or local emergencies occur, special standby reporting
     procedures are required. Emergency reporting could include energy-related fuel
     shortages, major labor disputes, and such local or regional emergencies as floods,
     windstorms, droughts, fires or other disasters. Emergency reporting is required in
     addition to the weekly ETA 539 report and, depending on the emergency, the
     request may be by telephone, letter or facsimile as an addendum to the ETA 539,
     or under separate cover, on a daily, weekly, or monthly basis.

     In the event of an emergency, special reporting instructions will be sent to the
     concerned Regional Office. Such instructions will vary according to the particular
     emergency and data needed. For most emergencies, reporting will be activated by
     facsimile and will cover: The method of submittal (electronic, facsimile, letter,
     telephone, etc.); when and where to submit the report; and the items to be
     reported.

H.   Recommended Worksheet

     It is recommended that the state maintain a worksheet which contains all the
     information used in the calculation of the weekly trigger rate. If the data is kept on
     a computer and the trigger rate is computer generated, it is recommended that one
     of the outputs for the trigger system be a worksheet which would show all the data
     used in the computation. This worksheet should be submitted when a state
     experiences a change in trigger status.


                                          I-1-16
                                          4/2007

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