CARES Act unemployment program questions and answers

CLASSIFICATION
   EMPLOYMENT AND TRAINING ADMINISTRATION
                                                         OUI
                                                         CORRESPONDENCE SYMBOL
               ADVISORY SYSTEM
                                                         OUI/DL
          U.S. DEPARTMENT OF LABOR
                                                         DATE
             Washington, D.C. 20210
                                                         August 12, 2020

ADVISORY:       UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 14-20,
                Change 1

TO:             STATE WORKFORCE AGENCIES

FROM:           JOHN PALLASCH
                Assistant Secretary

SUBJECT:        Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020 –
                Questions and Answers

1. Purpose. As states have gained experience administering programs under the CARES Act,
   states have identified questions about program operations. The purpose of this
   Unemployment Insurance Program Letter (UIPL) is to address those questions.

2. Action Requested. The Department of Labor’s (Department) Employment and Training
   Administration (ETA) requests State Workforce Administrators provide the information
   contained in this UIPL to appropriate program and other staff in state workforce systems as
   they continue implementation of the Unemployment Insurance (UI)-related provisions of the
   CARES Act that respond to the economic effects of the Coronavirus Disease 2019 (COVID-
   19).

3. Summary and Background.

   a. Summary – This UIPL provides states with further technical assistance in the
      administration of the CARES Act provisions. Attachment I sets out Questions and
      Answers on several topics.

   b. Background – The CARES Act (Public Law (Pub. L.) 116-136) was signed into law by
      the President on March 27, 2020, and includes the Relief for Workers Affected by
      Coronavirus Act set out in Title II, Subtitle A. This law provides emergency assistance
      for certain individuals, families, and businesses affected by the COVID-19 pandemic.
      The Department issued UIPL No. 14-20 on April 2, 2020, to provide a summary of the
      key Unemployment Insurance (UI) provisions in the CARES Act and guidance regarding
      the temporary emergency state staffing flexibility provided in Section 2106 of the

 RESCISSIONS                                            EXPIRATION DATE
 None                                                   Continuing

CARES Act. Since UIPL No. 14-20 was published, the Department issued the following
UIPLs regarding specific provisions of the CARES Act:

      UIPL Nos. 15-20, 15-20, Change 1, and UIPL 15-20, Change 2, with instructions
       for Section 2104 of the CARES Act Emergency Increase in Unemployment
       Compensation Benefits or Federal Pandemic Unemployment Compensation
       (FPUC);
      UIPL Nos. 16-20, 16-20, Change 1, and UIPL 16-20, Change 2, with instructions
       for Section 2102 of the CARES Act Pandemic Unemployment Assistance (PUA);
      UIPL Nos. 17-20 and 17-20, Change 1 with instructions for Section 2107 of the
       CARES Act Pandemic Emergency Unemployment Compensation (PEUC);
      UIPL No. 18-20 with instructions for Section 2103 of the CARES Act
       Emergency Unemployment Relief for Governmental Entities and Nonprofit
       Organizations;
      UIPL No. 20-20 with instructions for Section 2105 of the CARES Act Temporary
       Full Federal Funding of the First Week of Compensable Regular Unemployment
       for States with No Waiting Week; and
      UIPL Nos. 21-20 and 22-20 with guidance for the CARES Act Sections 2108-
       2111 provisions addressing Short-Time Compensation.

The Department issued UIPL 02-16, Change 1 on May 11, 2020, to remind states of their
statutory and regulatory obligations to provide individuals with access to UI benefits,
services, and information.

Importance of Program Integrity. UIPL No. 23-20 discusses program integrity for the
UI system and the unemployment compensation (UC) programs authorized by the
CARES Act. Addressing improper payments and fraud is a top priority for the
Department and the entire UI system. States are in the midst of managing extraordinary
workloads due to the effects of the spread of COVID-19. During this time, there is a
heightened need for states to maintain a steadfast focus on UI functions and activities that
ensure program integrity and the prevention and detection of improper payments and
fraud across all programs operated within the UI system.

The programs and provisions within the CARES Act operate in tandem with the
fundamental eligibility requirements of the Federal-State UI program, which remain in
place and must be adhered to. In addition, the CARES Act programs include new
eligibility requirements which states must apply. These requirements include that
individuals are only entitled to benefits if they are no longer working through no fault of
their own and that individuals must be able and available to work.

States play a fundamental role in ensuring the integrity of the UI program. While states
have been provided some flexibilities as a result of COVID-19, those flexibilities are

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       generally limited to dealing with the effects of COVID-19. States must ensure that
       individuals only receive benefits in accordance with these statutory provisions.

       Further, quitting work without good cause to obtain UI benefits is fraud. Sections
       2104(f), 2105(f), and 2107(e) of the CARES Act expressly provides that if an individual
       has obtained these benefits through fraud, the individual is ineligible for any additional
       benefit payments in accordance with state law, must pay back the benefits, and is subject
       to criminal prosecution under 18 U.S.C. §1001 and other Federal laws. States are
       expected to enforce these statutory provisions.

       To aid in minimizing improper payments, states are strongly encouraged to request that
       employers provide information when workers refuse to return to their jobs for reasons
       that do not support their continued eligibility for benefits.

       The Department is continuously working with states receiving funding under the CARES
       Act to provide UI benefits only to individuals who are entitled to such benefits. The
       Department is actively engaged with its Office of the Inspector General (OIG) to ensure
       program integrity. The CARES Act includes an appropriation of $26 million to the
       Department’s OIG to carry out audits, investigations, and other oversight activities related
       to states’ adherence to existing UI laws and policies, as well as the provisions of the
       CARES Act.

       A list of guidance, policies, and resources to help states respond to the COVID_19
       pandemic is available at https://oui.doleta.gov/unemploy/coronavirus/.

4. Questions and Answers. ETA began a series of webinars with states in March 2020
   addressing key provisions of the CARES Act. Recordings of these webinars are available
   under the “Events” section on the UI Community of Practice. Attachment I of this UIPL
   contains answers to questions received during the webinars and through ETA’s designated e-
   mail address for all UI COVID-19 related inquiries ([email protected]) that were not
   covered specifically in other guidance and cover the following topics: emergency flexibility
   for merit staffing, Paycheck Protection Program (PPP), Trade Readjustment Allowances
   (TRA), and the coordination of programs.

5. Inquiries. We encourage states to contact ETA for technical assistance. Please direct
   inquiries to [email protected], with a copy to the appropriate ETA Regional Office.

6. References.

      Coronavirus Aid, Relief, and Economic Security (CARES) Act (Pub. L. 116-136),
       including Title II Subtitle A Relief for Workers Affected by Coronavirus Act;
      Families First Coronavirus Response Act (Pub. L. 116-127), including Division D
       Emergency Unemployment Insurance Stabilization and Access Act of 2020 (EUISAA);

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   Trade Act of 1974 (Pub. L. 93-618), as amended;
   20 C.F.R. Part 603 , Federal-State Unemployment Compensation (UC) Program;
    Confidentiality and Disclosure of State UC Information;
   20 C.F.R. Part 617, Trade Adjustment Assistance for Workers Under the Trade Act of
    1974;
   UIPL No. 24-20, Temporary Changes to the Federal-State Extended Benefits (EB)
    Program in Response to the Economic Impacts of the Coronavirus Disease 2019
    (COVID-19) Pandemic Emergency, issued May 14, 2020,
    https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=7132;
   UIPL No. 23-20, Program Integrity for the Unemployment Insurance (UI) Program and
    the UI Programs Authorized by the Coronavirus Aid, Relief, and Economic Security
    (CARES) Act of 2020 – Federal Pandemic Unemployment Compensation (FPUC),
    Pandemic Unemployment Assistance (PUA), and Pandemic Emergency Unemployment
    Compensation (PEUC) Programs, issued May 11, 2020,
    https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=4621;
   UIPL No. 18-20, Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020 –
    Emergency Unemployment Relief for State and Local Governmental Entities, Certain
    Nonprofit Organizations, and Federally-Recognized Indian Tribes, issued April 27, 2020,
    https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=5893;
   UIPL No. 17-20, Change 1, Coronavirus Aid, Relief, and Economic Security (CARES)
    Act of 2020 – Pandemic Emergency Unemployment Compensation (PEUC) Program:
    Questions and Answers, and Revised Reporting Instructions for the PEUC ETA 227,
    issued May 13, 2020, https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=8689;
   UIPL No. 17-20, Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020 –
    Pandemic Emergency Unemployment Compensation (PEUC) Program Operating,
    Financial, and Reporting Instructions, issued April 10, 2020,
    https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=8452;
   UIPL No. 16-20, Change 2, Coronavirus Aid, Relief, and Economic Security (CARES)
    Act of 2020 – Pandemic Unemployment Assistance (PUA) Additional Questions and
    Answers, issued July 21, 2020,
    https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=5479;
   UIPL No. 16-20, Change 1, Coronavirus Aid, Relief, and Economic Security (CARES)
    Act of 2020 – Pandemic Unemployment Assistance (PUA) Program Reporting
    Instructions and Questions and Answers, issued April 27, 2020,
    https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=5899;
   UIPL No. 16-20, Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020 –
    Pandemic Unemployment Assistance (PUA) Program Operating, Financial, and
    Reporting Instructions, issued April 05, 2020,
    https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=4628;
   UIPL No. 15-20, Change 2, Coronavirus Aid, Relief, and Economic Security (CARES)
    Act of 2020 – New Data Collection Instrument and Revised Reporting Instructions for
    Federal Pandemic Unemployment Compensation (FPUC), issued June 15, 2020,
    https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=7785;

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      UIPL No. 15-20, Change 1, Coronavirus Aid, Relief, and Economic Security (CARES)
       Act of 2020 – Federal Pandemic Unemployment Compensation (FPUC) Program
       Reporting Instructions and Questions and Answers, issued May 9, 2020,
       https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=3946;
      UIPL No. 15-20, Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020 –
       Federal Pandemic Unemployment Compensation (FPUC) Program Operating,
       Financial, and Reporting Instructions, issued April 14, 2020,
       https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=9297;
      UIPL No. 14-20, Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020 –
       Summary of Key Unemployment Insurance (UI) Provisions and Temporary Emergency
       State Staffing Flexibility, issued April 2, 2020,
       https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=3390;
      UIPL No. 10-20, Unemployment Compensation (UC) for Individuals Affected by the
       Coronavirus Disease 2019 (COVID-19), issued on March 12, 2020,
       https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=8893; and
      Training and Employment Notice (TEGL) No. 05-15, Change 1, Change 1 to the Trade
       Adjustment Assistance (TAA) Operating Instructions for Implementing the Amendments to
       the Trade Act of 1974 Enacted by the Trade Adjustment Assistance Reauthorization Act of
       2015 (TAARA 2015), issued on September 23, 2016,
       https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=8845.

7. Attachment(s).

      Attachment I: Questions and Answers about the CARES Act Unemployment Insurance
       (UI) Related Provisions.

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                                                                          Attachment I of UIPL No. 14-20, Change 1

                                   Questions and Answers about the
                      Coronavirus Aid, Relief, and Economic Security (CARES) Act
                            Unemployment Insurance (UI) Related Provisions

Emergency Flexibility for Merit Staffing ........................................................................................ 2
Paycheck Protection Program (PPP)................................................................................................ 3
Trade Readjustment Allowances (TRA).......................................................................................... 5
Coordination of Programs ................................................................................................................ 8

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Emergency Flexibility for Merit Staffing

Refer to Section 4.d. of UIPL No. 14-20 for additional information regarding permissible
flexibilities around merit staffing.

    1. Question: My state is bringing over staff from other state agencies and contracting with a
      third-party vendor to process COVID-19 related applications and claims. What do we
      need to consider when it comes to confidentiality of unemployment compensation (UC)
      information?

       Answer: Staff from other state agencies and from the third-party vendor are performing
       such tasks on the agency’s behalf, which is permissible under the temporary emergency
       state staffing flexibility in Section 2106 of the CARES Act. Section 303(a)(1) of the
       Social Security Act (SSA) has long been interpreted to require states to have methods of
       administration in place to maintain the confidentiality of UC information. The basic
       confidentiality requirement is implemented through 20 C.F.R. Part 603. These other state
       agencies and third-party vendors are providing services necessary for the proper
       administration of the state’s UC law and, as such, they may be permitted access to
       confidential UC information under 20 C.F.R. 603.6(a).

       For state employees from other agencies, an agreement is not necessary because such
       employees are acting directly on behalf of the UI agency and are subject to the same
       requirements as UC agency state employees to maintain the confidentiality of the data.

       For vendors and contractors, the agency must enter into a written, enforceable, terminable
       agreement that, at a minimum, contains the following:

              A listing of all parties to the agreement;
              A description of the specific tasks the agent or contractor will perform on behalf
               of the agency;
              A statement that those who are granted access to confidential UC information
               under the agreement will be limited to those with a need to access it and only for
               purposes listed in the agreement;
              Provision for safeguarding the information, as described in 20 C.F.R. 603.9; and
              Provision for on-site inspections of the agent or contractor to assure that the
               requirements of state law and the agreement are being met. Agents or contractors
               performing services on behalf of the agency should maintain a system sufficient to
               allow such inspections, should the agency decide that is necessary.

       With regard to safeguards, the agreement must require the agent or contractor to use the
       information only for purposes authorized by law and consistent with the agreement.

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    2. Question: My state is planning to hire additional administrative law judges for an
      anticipated significant increase in appeals resulting from the unprecedented number of
      unemployment claims filed during the COVID-19 pandemic. Do the flexibilities around
      merit staffing described in UIPL No. 14-20 also apply to the appeals function?

       Answer: Yes. The state has maximum flexibility to utilize non-merit staff through
       December 31, 2020, to quickly process applications and claims, as provided under
       Section 2106 of the CARES Act. This includes the appeals function as it relates to
       responding to workload and increased demand resulting from the spread of COVID-19.

       As discussed in Section 4.d. of UIPL No. 14-20, the state must ensure that individuals
       making decisions have the knowledge and training necessary to make the correct
       decisions. The quality standards, as described in 20 C.F.R. Part 602 and further discussed
       in ET Handbook No. 301 (5th Edition, Change 1), UI Performs: Benefits Timeliness and
       Quality Nonmonetary Determinations Quality Review, ET Handbook No. 382 Handbook
       for Measuring Unemployment Insurance Lower Authority Appeals Quality (3rd Edition)
       and ET Handbook No. 395 (5th Edition), Revision to the State Operations Handbook for
       the Unemployment Insurance (UI) Benefit Accuracy Measurement (BAM) Program,
       remain in effect.

Paycheck Protection Program (PPP)

The Paycheck Protection Program (PPP) is a loan program enacted by Section 1102 of the
CARES Act and administered by the U.S. Small Business Administration (SBA). The PPP is
designed to assist small businesses keep their workers on the payroll by providing federally-
guaranteed loans to eligible borrowers. Section 1106 of the CARES Act provides for forgiveness
of up to the full principal amount of qualifying loans guaranteed under the PPP, depending on
factors including the employer’s use of the loan proceeds and maintenance of employee
headcount and payroll as specified. Various features of the PPP and the loan forgiveness
requirements have been altered by subsequently enacted legislation. Additional details are
available at https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-
protection-program.

The issues described below can impact any unemployment program, including regular UC and
those provided for under the CARES Act.

    3. Question: If an individual is working and being paid through PPP, how does this impact
      his or her eligibility for unemployment benefits?

       Answer: The source of the funds an employer uses to pay salary or wages to an
       individual, whether the PPP or otherwise, does not change how an individual’s eligibility
       for unemployment is determined.

       If the individual is working full-time, he or she does not meet the definition of being
       “unemployed” and would be ineligible for benefits. Additionally, an individual receiving

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   full compensation through paid sick leave or paid family leave is not “unemployed” and
   is ineligible for UC. If the individual is working part-time, the state’s policies regarding
   partial unemployment and deductible earnings would apply when determining their
   eligibility for unemployment benefits.

   If the individual filed for UC and received benefits for a given week, and later receives
   retroactive pay from his or her employer for that same week, the individual must inform
   the UC agency of the payment received. The amount of retroactive pay is deducted from
   the weekly benefit amount according to state law for deductible income. The state would
   establish an overpayment as appropriate under its normal procedures.

4. Question: If an individual is being paid through PPP but not performing any services,
   how does this impact his or her eligibility for unemployment benefits?

   Answer: If an individual is receiving money from his or her employer, regardless of the
   source from which the employer obtained that money, state law provisions concerning
   deductible income would apply as described in Question 3.

   As discussed most recently in UIPL No. 10-20, the Department has a longstanding legal
   interpretation of federal UC law that “unemployment” includes a reduction of both work
   hours and earnings. If an individual is receiving full compensation, then he or she does
   not meet the definition of being “unemployed” and would be ineligible for benefits.

5. Question: An individual was offered 80% of his or her previous salary to return to work
   under PPP. If the individual refuses to return, how does this impact his or her eligibility
   for unemployment benefits?

   Answer: The state must apply the provisions of its law and Section 3304(a)(5) of the
   Federal Unemployment Tax Act (FUTA) with respect to prevailing wage to determine if
   this is an offer of suitable work, whether the source of the salary offered is a PPP loan or
   not. If the offer to return to work at a reduced salary is considered to be an offer of
   suitable work, then the state must assess whether the individual has good cause, under
   state law, for refusing the offer of suitable work. Refusing suitable work without “good
   cause” to continue collecting UC, including Federal Pandemic Unemployment
   Compensation (FPUC), is not allowable.

6. Question: May a sole proprietor or other self-employed individual apply for a PPP loan
   and also collect unemployment benefits?

   Answer: It depends. The individual may be eligible for a partial unemployment benefit.
   Regardless of the source of funds, the sole proprietor or self-employed individual must
   report any income, which will be deducted consistent with state law as described in
   Question 3.

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Trade Readjustment Allowances (TRA)

For additional information on Trade Readjustment Allowances (TRA) or Trade Adjustment
Assistance (TAA) programs during this time, refer to the Frequently Asked Questions (FAQs) on
the “Coronavirus (COVID-19) Resources” page at https://www.workforcegps.org/.

To qualify for TRA, an individual must have been entitled to regular UC (or would have been
entitled to it if the individual had applied) for a week within the benefit period after the first
qualifying separation and must have exhausted all rights to any regular UC benefits (section
231(a)(3) of the Trade Act of 1974 (Trade Act)). This regular UC claim filed or in effect (which
includes an existing claim) after the first qualifying separation establishes the first benefit period
and is often referred to as the “parent claim” for the individual’s TRA claim.

Coordination of Benefit Programs with TRA

    7. Question: How is the order of benefit payments described in Section 4.b. of UIPL No.
      14-20 coordinated for individuals eligible to receive TRA when an individual is collecting
      any TRA benefits (basic, additional, or completion)?

       Answer: An individual must exhaust unemployment insurance benefits before payment
       of TRA (section 231(a)(3) of the Trade Act), which includes regular compensation,
       extended compensation, and federal supplemental compensation (section 247(11) of the
       Trade Act). This means that an individual must exhaust regular UC (except additional
       compensation), as well as any PEUC or EB that he or she may be eligible for before
       collecting TRA.

       Section 4.b.i of UIPL No. 14-20 states that “[i]f the individual meets the qualifications to
       receive [TRA], such benefits will be payable after the programs listed above [including
       regular UC, PEUC, EB, and PUA].” However, eligibility for DUA (and accordingly
       PUA) requires that the individual NOT be eligible for “compensation” at 20 C.F.R.
       625.4(i). The definition of “compensation” at 20 C.F.R. 625.2(d) includes TRA.

       Therefore, to correct what was stated in UIPL No. 14-20, PUA is payable only if the
       individual is not eligible for or has exhausted TRA (basic, additional, or completion).

    8. Question: The individual received 26 weeks of regular UC and 26 weeks of basic TRA
      at the time that PEUC becomes available. Would the individual be eligible to receive
      the full 13 weeks of PEUC, if otherwise eligible?

       Answer: Yes. Receiving TRA and regular UC does not reduce the amount of PEUC
       available. Provided the regular UC claim has a benefit year end date on or after July 1,
       2019, PEUC is payable to the individual based on the regular UC claim if all other
       eligibility requirements are met. Reference Questions B.5. and 6. from Attachment I of
       UIPL No. 17-20, Change 1, for additional information on the correct benefit year to use
       for establishing PEUC entitlement.

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    9. Question: If the individual covered by a TAA certification exhausts PEUC and is not
      participating in TAA training, is the claimant potentially eligible for PUA?

       Answer: It depends. An individual may receive basic TRA with a waiver of the TAA
       training if the state determines it is not feasible or appropriate for the worker to be in the
       training. If the individual is eligible to receive basic TRA, then the individual would not
       be eligible for PUA.

       Additional and completion TRA require actual participation in TAA training. If an
       individual is receiving additional or completion TRA and is no longer participating in
       training, the individual will no longer be eligible for TRA and may be eligible for PUA.
       However, not being able to participate in TAA training because the school closed in
       response to the spread of COVID-19 does not make the individual a covered individual
       under PUA. The individual must be unemployed, partially unemployed, or unable or
       unavailable to work because of a listed COVID-19 related reason in Section
       2102(a)(3)(A)(ii)(I) of CARES Act.

Coordination of Benefit Programs with TRA – Subsequent UC Eligibility

Section 232(d) of the Trade Act provides that when an individual collecting TRA establishes a
subsequent UC eligibility and is eligible to receive UC, the individual has the option of choosing
to receive UC or remain on TRA. Questions 10-12 address this particular situation.

    10. Question: If an individual elects to remain on TRA, how does this impact the individual’s
       eligibility for other benefits once the TRA claim is exhausted?

       Answer: If, after exhausting TRA, the individual remains unemployed, the individual may
       qualify for a new regular UC claim. If the individual is no longer eligible for a regular
       UC claim and is unemployed, partially unemployed, or unable or unavailable to work for
       a listed COVID-19 related reason under Section 2102(a)(3)(A)(ii)(I) of the CARES Act,
       the individual may be eligible for PUA.

    11. Question: If the individual is collecting PEUC at the time he or she becomes eligible for
       the new UC claim, what options does the claimant have?

       Answer: If the individual is collecting PEUC at the time he or she becomes eligible for
       the new UC claim, the individual would no longer qualify for the PEUC claim. At this
       point the individual can either establish the new UC claim and collect on that claim, or
       establish the new UC claim and then switch back to TRA on the parent claim to collect
       the remaining TRA benefits.

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    12. Question: If an individual elects to file a new regular UC claim, how does it impact the
       individual’s eligibility for TRA once the new regular UC claim is exhausted?

       Answer: If, after exhausting the new regular UC claim, the individual remains
       unemployed, the individual must exhaust all entitlement to PEUC and EB based on this
       new regular UC claim before returning to the original TRA claim.

Duration of TRA Benefits

    13. Question: Basic TRA allows for up to 52 weeks of benefits, minus any amount of regular
       UC or EB collected for that benefit period. Are weeks of PEUC also deducted from basic
       TRA entitlement? If so, does this only apply to PEUC based on the same benefit period
       as the basic TRA claim or to all PEUC claims?

       Answer: Yes. Weeks of PEUC are deducted from basic TRA entitlement. UI entitlement
       includes regular UC, PEUC, and EB. As such, the weeks of PEUC entitlement with
       respect to the “first” benefit period reduce the maximum basic TRA entitlement.

    14. Question: PUA provides for up to 39 weeks of benefits, minus any weeks of regular UC
       or EB collected during the Pandemic Assistance Period. Are weeks of basic TRA also
       deducted from PUA entitlement?

       Answer: No. Section 2102(c)(2) of the CARES Act provides that PUA is payable for 39
       weeks including any weeks for which the individual received regular compensation or
       extended benefits. Because section 2102 of the CARES Act defers to DUA regulations
       for the definition of “regular compensation” and TRA is not included in this reference (20
       C.F.R. 625.2(d)(1)), weeks of basic TRA are not deducted from PUA entitlement.

    15. Question: An individual received 26 weeks of regular UC and 22 weeks of basic TRA
       prior to qualifying for 13 weeks of PEUC. After exhausting PEUC, what remaining TRA
       entitlement might the individual have?

       Answer: The maximum benefit amount (MBA) for basic TRA is 52 times the TRA
       WBA, minus the total sum of UI entitlement (section 233(a) of the Trade Act). As
       described earlier, UI entitlement includes regular UC, PEUC, and EB. The 26 weeks
       of regular UC plus the 22 weeks of basic TRA plus the 13 weeks of PEUC exceed the
       maximum amount of TRA payable. As such, the individual would have no remaining
       basic TRA entitlement for this benefit period.

       Reference TEGL No. 05-15, Change 1 for information about potential eligibility for
       additional and completion TRA.

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Coordination of Programs

    16. Question: What is the relationship between PUA and Disaster Unemployment Assistance
       (DUA) when a location is triggered onto DUA?

      Answer: It depends. As stated in Section 4.b of UIPL No. 16-20, if an individual is
      eligible for DUA with respect to a week of unemployment, he or she is not eligible to
      receive PUA for that week. This is because eligibility for both PUA and DUA is based
      on the reason for an individual’s unemployment. If an individual’s unemployment is
      directly caused by a major disaster then the individual’s unemployment is not due to a
      COVID-19 reason and the individual would not qualify for PUA.

      Conversely, if the reason for the individual’s unemployment is because of a listed
      COVID-19 related reason in Section 2102(a)(3)(A)(ii)(I) of the CARES Act, the
      individual’s unemployment is not a direct result of a major disaster and the individual
      would not qualify for DUA.

    17. Question: If an individual elects to take “leave without pay,” is he or she eligible for
       unemployment benefits?

      Answer: Leave without pay is considered a temporary separation from employment. Its
      effect on UI eligibility depends on the reason that the individual took leave without pay.
      If an individual separates from his or her job solely to receive unemployment benefits, the
      individual would be disqualified from receiving unemployment benefits. Additionally,
      because the individual is not unemployed because of a listed COVID-19 related reason
      under Section 2102(a)(3)(A)(ii)(I) of the CARES Act, the individual would also not be
      eligible for PUA.

      The state must determine what the individual is taking “leave without pay” in lieu of, as
      this separation may be considered a discharge, voluntary quit, or lay-off under existing
      state law and state good cause/just cause provisions would apply depending on the facts.

    18. Question: In UIPL No. 23-20, ETA strongly encourages states to request that employers
       provide information when a worker refuses to return to his or her job for reasons that do
       not support continued eligibility for benefits. What should a state do to meet this request?

      Answer: States have ultimate flexibility in achieving this request. ETA suggests that the
      state provide an option to report this information directly to the state UI agency, such as
      an email address or by providing a link on its website that allows employers to file a
      report. ETA also encourages the state to communicate the availability of such a reporting
      mechanism to employers through its social media platforms and other regular employer
      communications.

      If the state receives information to substantiate refusal of a bona fide offer of work, the
      state must investigate the issue and make a determination of eligibility according to state

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   law. Such an investigation will consider whether the offer of work was for suitable work
   under state law and, if so, whether the claimant had good cause under state law for
   refusing the offer.

19. Question: May an individual receive STC benefits while filing against a PEUC claim?

   Answer: Yes. Provided that the state has an STC law that conforms to Section 3306(v) of
   the Federal Unemployment Tax Act (FUTA) and the individual is part of an employing
   unit that is subject to a state-approved STC agreement, he or she may continue to receive
   STC benefits after exhaustion of the regular UC claim during the period the individual is
   eligible to receive PEUC (i.e., STC-PEUC).

20. Question: May a state be reimbursed for both PEUC under Section 2107 of the CARES
    Act and STC benefits under either Section 2108 or 2109 of the CARES Act?

   Answer: No. STC-PEUC benefits that are payable while an individual is filing PEUC
   cannot be double-reimbursed. Any STC-PEUC benefits that are subject to payment under
   Sections 2104 and 2107 of the CARES Act for costs of FPUC and PEUC cannot also be
   submitted for reimbursement under Sections 2108 or 2109 of the CARES Act. Because
   FPUC and PEUC are federally funded programs, there is no state cost for which to seek
   reimbursement.

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