Reinstated eligibility rules for extended and trade benefits

U.S. Department of Labor
Employment and Training Administration
Washington, D.C. 20210

Classification: UI
Correspondence symbol: TEUMI
Issue date: January 5, 1995
Rescissions: None
Expiration date: January 31, 1996
Directive: UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 09-95
To: ALL STATE EMPLOYMENT SECURITY AGENCIES
From: MARY ANN WYRSCH, Director, Unemployment Insurance Service
Subject: Reinstatement of Sections 202(a)(3) and (4), Federal-State Extended Unemployment Compensation Act (FSEUCA) of 1970

1. Purpose. To remind State Employment Security Agencies that the eligibility requirement of Sections 202(a)(3) and (4), FSEUCA, apply to all extended benefit (EB) and Trade Readjustment Allowance (TRA) weeks claimed beginning on and after January 1, 1995.

2. References. Section 202 of the FSEUCA of 1970, as amended by Section 202(b)(1), Public Law (P.L.) 102-318; Section 231 (a)(4) of the Trade Act of 1974; GAL 10-92; GAL 12-92 (57 FED. Reg. 54106); UIPL 45-92 (57 FED. Reg. 47871, 47873); 20 CFR Part 615.

3. Background. Section 202(b)(1) of P.L. 102-318 added a new paragraph (7) to Section 202(a), FSEUCA, which suspended the eligibility requirements of Sections 202(a)(3) and (4), FSEUCA, for weeks of unemployment beginning after March 6, 1993, and before January 1, 1995, and provided that no provision of State law, in conformity with such sections applied to weeks of unemployment claimed during such period. As a result of the suspension of Section 202(a)(3), FSEUCA, Section 231(a)(4) of the Trade Act had no effect with respect to payment of TRA. To date, no legislation to repeal Sections 202(a) (3) and (4), FSEUCA, has been enacted (and there is no legislation pending before Congress). Therefore, the requirements of these sections will again be effective for weeks of unemployment beginning on and after January 1, 1995, with respect to the payment of EB and TRA.

4. Jobs Prospect Classification. The reinstatement of the eligibility requirements of Sections 202 (a)(3) and (4) of the FSEUCA requires States to assess each affected claimant's prospects of reemployment in his/her customary occupation within a reasonably short period as "good" or "not good" and provide written notification to the claimant of the eligibility requirements corresponding to such classification.

   Each individual claiming a week of EB or TRA beginning on or after January 1, 1995, must be classified as having "good" or "not good" prospects. To accomplish the required classification and notification of all claimants in current claim status, the State may wish to automatically classify each claimant's prospects as "not good." If the claimant provides satisfactory evidence that his/her prospects are "good" in obtaining work, the classification could be changed to "good."

5. Action Required. State administrators are requested to:

   1. Make a copy of this letter available to all appropriate staff;

   2. Ensure that the necessary actions are taken to ensure the State's payments of EB and TRA are consistent with the reinstated eligibility requirements; and

   3. Ensure that affected EB and TRA claimants are properly notified of the reinstatement of Sections 202(a)(3) and (4) of the FSEUCA.

6. Inquiries. Inquiries should be directed to your Regional Office.