Federal computer-matching law and state unemployment records

U.S. Department of Labor
Employment and Training Administration
Washington, D.C. 20210
Classification: UI
Correspondence symbol: TEURL
Issue date: November 13, 1989
Rescissions: [blank in source]
Expiration date: November 30, 1990
Directive: UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 04-90
To: ALL STATE EMPLOYMENT SECURITY AGENCIES
From: DONALD J. KULICK, Administrator for Regional Management
Subject: Applicability of P.L. 100-503, The Computer Matching and Privacy Protection Act of 1988, to State Unemployment Insurance Service Operations

1. Purpose. To advise State agencies of the applicability of provisions of The Computer Matching and Privacy Protection Act of 1988, P.L. 100-503, to State agency operations, and to provide State agencies with the office of Management and Budget's guidance interpreting the provisions of the Act.

2. Reference. Public Law 100-503, The Computer Matching and Privacy Protection Act of 1988; 54 FR 25818 - 25829, Final Guidance Interpreting the Provisions of Public Law 100-503, the Computer Matching and Privacy Protection Act of 1988.

3. Background Discussion. The purpose of the Computer Matching and Privacy Protection Act of 1988 (CMPPA), which amends the provisions of the Privacy Act of 1974 found at 5 U.S.C. 552a, is to improve the oversight and procedures governing the disclosures of personal information in "computer matching programs" and to protect the privacy of individuals whose Federal records are used in such matching programs.

   These amendments apply to any "computer matching program" using any Federal "record which is contained in a system of records."

   "Matching program" is defined as:

   any computerized comparison of --

   • (i) two or more automated systems of records or a system of records with non-Federal records for the purpose of --

     • (I) establishing or verifying the eligibility of, or continuing compliance with statutory and regulatory requirements by, applicants for, recipients or beneficiaries of, participants in, or providers of services with respect to, cash or in-kind assistance or payments under Federal benefit programs, or

     (II) recouping payments or delinquent debts under such Federal benefit programs, or

     (ii) two or more automated Federal personnel or payroll systems of records or a system of Federal personnel or payroll records with non-Federal records."

   Federal "record" is defined as:

   • any item, collection, or grouping of information about an individual that is maintained by a Federal agency ... and that contains his name, or the identifying number, symbol, or other identifying particular assigned to the individual ...."

   "System of records" is defined as:

   • A group of any records under the control of any [Federal] agency from which information is retrieved by the name of the individual or by some identifying number, symbol, or other identifying particular assigned to the individual."

   The CMPPA provides that such computer matching programs may be conducted only pursuant to written matching agreements entered into by the Federal agency providing records contained in a system of records and the Federal or non-federal agency receiving records contained in a system of records for use in the matching program. Among the statutory requirements that must be met by the matching agreements is specification of the purpose and legal authority for the matching program, a description of the nature of the match and the expected results, a description of the procedures for notifying individuals affected and for verification of information, and a description of procedures for the protection of the records.

   The Office of Management and Budget (OMB) published, at 54 FR 25818, final guidance for the use of agencies in implementing the amendments made to 5 U.S.C. 552a. OMB indicated that these guidelines augmented and should be used with the "Office of Management and Budget (OMB) Guidelines on the Administration of the Privacy Act of 1974", issued on July 1, 1975, and supplemented on November 21, 1975, and Appendix 1 to OMB Circular No. A-130, published on December 24, 1985 (50 FR 52738).

4. Interpretation. Questions have arisen concerning the applicability of the amendments made by the CMPPA to the Federal-State unemployment compensation (UC) program and to the related Federal programs (UCFE, UCX, TAA, DUA, REPP, and AEPP). It has been determined that the CMPPA amendments to 5 U.S.C. 552a are inapplicable to State UC programs (including the EB program), to data exchanged by the States under the U.I. Interstate Crossmatch and Claimant Locator System, and to the Federal UC programs. Wage and claim information about individuals claiming benefits under the UC and related Federal programs is maintained by the States, not by DOL. Such documents do not, therefore, constitute a Federal "system of records", and are not subject to the CMPPA amendments.

   The only exception to this determination is where there is a use of a Federal "record which is contained in a system of records" for purposes of a "matching program", as defined above. This would occur, and the computer matching restrictions would thus be applicable, where a State makes a "computerized comparison" with any Federal "system of records" for the purpose of assuring proper payments or recouping payments under a Federal UC program. The computer matching restrictions would also be applicable where a State makes a "computerized comparison" of a system of Federal personnel or payroll records with non-Federal records, regardless of the purpose. Therefore, whether such a computerized comparison of Federal personnel or payroll records is performed for the purpose of assuring proper payments under a Federal UC program, a State program, or any reason whatsoever, the computer matching restrictions of amended 5 U.S.C. 552a are applicable.

   In passing, we note that Federal agencies furnish wage and separation information on UCFE and UCX claimants to State agencies as a permissible disclosure of a record for "routine use" under 5 U.S.C. 552a(b)(3). This information may be used by the State agency only for the purpose for which it was disclosed -- the adjudication of a claimant's UCFE or UCX claim. This use of these "records" is not subject to the CMPPA amendments because it is not a "computerized comparison" and therefore is not a "matching program" under 5 U.S.C. 552a(a)(8).

5. Action Required. State Administrators are requested to provide this information to appropriate staff.

6. Inquiries. Questions should be addressed to the appropriate Regional Office.

7. Attachments.

   • Public Law 100-503, the Computer Matching and Privacy Protection Act of 1988

   • 54 Federal Register 25818 - 25829, Privacy Protection Act of 1974, Final Guidance Interpreting the Provisions of Public Law 100-503, the Computer Matching and Privacy Protection Act of 1988.

The source page also reproduces Public Law 100-503 and the separate Office of Management and Budget guidance at 54 FR 25818–25829. These separate federal materials are available through the source URL above and are not transcribed here.