State duties after pandemic unemployment programs end

CLASSIFICATION
   EMPLOYMENT AND TRAINING ADMINISTRATION                  Unemployment Insurance
               ADVISORY SYSTEM                             CORRESPONDENCE SYMBOL
          U.S. DEPARTMENT OF LABOR                         OUI/DL
             Washington, D.C. 20210                        DATE
                                                           July 12, 2021

ADVISORY:       UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 14-21,
                Change 1

TO:             STATE WORKFORCE AGENCIES

FROM:           SUZAN G. LEVINE
                Principal Deputy Assistant Secretary

SUBJECT:      State Responsibilities After the Temporary Unemployment Benefit Programs
              under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, as
              amended, End Due to State Termination of Administration or When the Programs
              Expire.

1. Purpose. To advise states of the operational requirements after the temporary unemployment
   benefit programs authorized under the CARES Act, as amended, end. These operational
   requirements apply after the temporary programs expire on September 6, 2021, or earlier if a
   state chooses to end participation before September 6, 2021.

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

3. Summary and Background.

   a. Summary – The temporary unemployment benefit programs authorized under the
      CARES Act, as amended, are set to expire on September 6, 2021. These programs
      include Pandemic Unemployment Assistance (PUA), Federal Pandemic Unemployment
      Compensation (FPUC), Pandemic Emergency Unemployment Compensation (PEUC),
      and Mixed Earners Unemployment Compensation (MEUC). Full federal funding for the
      first week of compensable regular unemployment for states with no waiting week will
      also expire on September 6, 2021. Additionally, some states have chosen to end
      participation in some or all of these programs earlier than September 6, 2021, which is
      permissible with 30-days written notice, under the state’s agreement with the Secretary of
      Labor (Secretary) to administer such programs.

       The agreement to administer the PUA, FPUC, PEUC, and MEUC programs remains in
       effect with respect to weeks of unemployment ending on or before the date of termination
       or expiration (whichever comes first) until all issues relating to those weeks are resolved.

   RESCISSIONS                                              EXPIRATION DATE
   None                                                     Continuing

       States: (1) are required to accept all PUA, FPUC, PEUC, and MEUC claims for a certain
       period of time after the date of termination or expiration (whichever comes first) and
       determine all eligibility issues associated with such claims in a timely manner, including
       establishing overpayments as appropriate and processing appeals; (2) must individually
       notify individuals of the termination or expiration; and (3) must continue to comply with
       the return to work reporting requirements described in Section 4.c. of UIPL No. 09-21
       during any period for which the agreement remains in effect. States are also advised of
       the effect that termination or expiration will have on the transfer of federal funds to
       provide emergency unemployment relief to governmental entities and certain nonprofit
       organizations, as well as the first week of compensable regular unemployment for states
       with no waiting week. After terminating participation, states may choose to reinstitute
       participation prior to the September 6, 2021 end date of the programs.

       Additionally, states are strongly encouraged to identify procedures and resources across
       available workforce partners to ensure individuals are provided access to reemployment
       services.

   b. Background – The CARES Act (Public Law (Pub. L.) 116-136), enacted on March 27,
      2020, allows, among other things, states to enter into an agreement with the Secretary to
      administer the PUA, FPUC, and PEUC programs. States without a waiting week may
      also enter into an agreement with the Secretary to receive full federal funding of the first
      week of compensable regular unemployment. See UIPL No. 14-20. The Continued
      Assistance for Unemployed Workers Act of 2020 (Continued Assistance Act), set forth at
      Division N, Title II, Subtitle A of the Consolidated Appropriations Act, 2021 (Pub. L.
      116-260), extended the dates for states to administer these programs and allowed states to
      also enter into an agreement with the Secretary to administer the MEUC program. See
      UIPL No. 09-21. The American Rescue Plan Act of 2021 (ARPA) (Pub. L. 117-2)
      further extended the dates for states to administer the PUA, FPUC, PEUC, and MEUC
      programs through September 6, 2021. See UIPL No. 14-21.

4. Guidance. All states signed an “Agreement Implementing the Relief for Workers Affected
   by Coronavirus Act” (Agreement) with the Secretary in March 2020 to administer the PUA,
   FPUC, and PEUC programs. States without a waiting week also signed an addendum to
   receive full federal funding for the first week of compensable regular unemployment.
   Additionally, nearly all states signed an addendum to the Agreement in January 2021 to also
   administer the MEUC program. The Agreement incorporates amendments to the CARES
   Act made by the Continued Assistance Act and ARPA. As provided in paragraph I. of the
   Agreement:

              The [insert state name] State Workforce Agency, hereinafter referred to as the
              “Agency,” will make payments of benefits in accordance with the provisions of
              the Act identified in paragraph XIV [the CARES Act], and any future
              amendments thereto (which are incorporated herein by reference), and will
              cooperate with the U.S. Department of Labor (Department of Labor), and with
              other state agencies in making such payments.

Under the Agreement, each state is required to operate the programs as required by any
statutory amendments and the Department’s guidance.

While all states must prepare for the expiration of temporary unemployment benefit
programs authorized under the CARES Act, as amended, which is currently on September 6,
2021, some states have chosen to end participation in some or all of these programs earlier
than the current September 6, 2021 expiration date. As set forth in Section XI of the
Agreement, a state may terminate specific provisions within the agreement listed in Section
XIV or terminate the agreement itself with thirty days’ written notice if it chooses to
discontinue administration of such provisions. Although Section 261(c) of the Continued
Assistance Act permits a state to administer the FPUC program without administering
MEUC, states do not have authority to administer MEUC and not FPUC. As such, states
may not continue to administer the MEUC program after terminating the agreement to
administer the FPUC program.

a. Processing PUA, FPUC, PEUC, and MEUC claims after the date of termination or
   expiration. The state must process and pay benefits to eligible individuals under the
   PUA, FPUC, PEUC, and MEUC programs for all weeks of unemployment ending on or
   before the date of termination or expiration (whichever comes first). The state must also
   comply with all responsibilities with respect to claims filed under these programs for
   those weeks, including, without limitation, the requirements under the Agreement and in
   guidance. Accordingly, the Agreement remains in effect with respect to the PUA, FPUC,
   PEUC, and MEUC programs for weeks of unemployment ending on or before the date of
   termination or expiration (whichever comes first) until all issues relating to those weeks
   are resolved.

   In all states, under current federal law, no PUA, FPUC, PEUC, and MEUC payments
   may be made with respect to weeks of unemployment ending after September 6, 2021. In
   states where the week of unemployment ends on a Saturday, the last payable week for
   these programs is the week ending September 4, 2021. In states where the week of
   unemployment ends on a Sunday, the last payable week for these programs is the week
   ending September 5, 2021.

   For states that terminate the Agreement to operate some or all of these programs before
   September 6, 2021, no payments for the terminated programs may be made with respect
   to weeks of unemployment ending after the date the state terminates participation in the
   Agreement.

           i. PUA claims.

                  A. Taking new applications after the date of termination or expiration.
                     The state must continue to take new applications for PUA for 30 days
                     after the date of termination or expiration (whichever comes first).
                     The state must backdate such claims, as appropriate, to the first week
                     during the Pandemic Assistance Period in which the individual was
                     unemployed, partially unemployed, or unable or unavailable to work

          because of an approved COVID-19 related reason, subject to the
          limitation described in Section C.15. of Attachment I to UIPL No. 16-
          20, Change 4.

       B. Continued compliance with responsibilities under the Agreement and
          in guidance. A state that chooses to terminate the PUA program prior
          to September 6, 2021 must comply with all responsibilities under the
          Agreement and in guidance with respect to claims filed under the PUA
          program for weeks of unemployment ending on or before the date of
          termination. This includes the processing of claims using the
          expanded list of COVID-19 related reasons described in Section 4.b.
          of UIPL No. 16-20, Change 5.

       C. Accepting submission of income documentation for purposes of
          calculating a higher PUA weekly benefit amount (WBA). As described
          in Question 2 of Attachment I to UIPL No. 16-20, Change 2, states
          must accept documentation of income to determine an individual’s
          eligibility for a higher PUA WBA at any time during the Pandemic
          Assistance Period. For the purpose of submitting proof of wages to
          calculate the PUA WBA, the Pandemic Assistance Period does not
          change. States terminating participation in the Agreement before
          September 6, 2021, must continue to allow for submission of such
          proof through September 6, 2021.

          Note that the requirement to provide documentation substantiating
          employment or self-employment is separate from providing
          documentation to support the calculation of a higher WBA and has its
          own deadline, as described in Section C.2. of Attachment I to UIPL
          No. 16-20, Change 4.

ii. FPUC claims. Individuals do not submit an application to receive the
    supplementary FPUC payment. Insofar as an individual is eligible to receive
    payment under one of the qualifying programs described in Section 4.a. of
    UIPL No. 15-20, the state must pay FPUC with respect to weeks of
    unemployment ending on or before the date of termination or expiration
    (whichever comes first). States are reminded that FPUC is not payable with
    respect to any week of unemployment ending after July 31, 2020, through
    weeks of unemployment ending on or before December 26, 2020. See Section
    4.b.iii. of UIPL No. 09-21.

iii. PEUC claims.

       A. Taking new applications after the date of termination or expiration.
          Insofar as state UC law provides for claims to be backdated, the state
          must continue to take new applications for PEUC as provided in their

                      state law for late filing of claims after the date of termination or
                      expiration (whichever comes first).

                  B. Addressing state options for determining eligibility for PEUC or
                     regular UC payments for states terminating PEUC early. Generally,
                     to be eligible for PEUC, an individual must have exhausted all rights
                     to regular UC. However, as described in Section 4.e.iii. of UIPL No.
                     17-20, Change 2, certain individuals that are eligible for a new regular
                     UC claim may be eligible to continue receipt of PEUC. States must
                     choose one of four options for administering this provision, as
                     described in Section 4.e.ii. of that same UIPL. As such, certain
                     individuals receiving PEUC in states that are terminating the PEUC
                     program before September 6, 2021, may be eligible for a new regular
                     UC claim upon termination of the PEUC program.

          iv. MEUC claims.

                  A. Taking new applications after the date of termination or expiration.
                     Insofar as state UC law provides for claims to be backdated, the state
                     must continue to take new applications for MEUC as provided in their
                     state law for late filing of claims after the date of termination or
                     expiration (whichever comes first).

                  B. States that signed the MEUC addendum and have not yet implemented
                     the MEUC program. Nearly all states signed an addendum to the
                     Agreement in January 2021 to administer the MEUC program, though
                     some states have not yet implemented the MEUC program. Upon
                     signing the Agreement to administer MEUC, the state agreed to
                     operate the MEUC program through the date of termination or
                     expiration (whichever comes first). Therefore, states must pay MEUC
                     for weeks of unemployment beginning after they signed the agreement
                     through the date of termination or expiration (whichever comes first).

b. Required notifications. The state must individually notify individuals of the termination
   or expiration (whichever comes first) of these programs. This includes all individuals
   who: (1) are currently receiving PUA, PEUC, FPUC, or MEUC; and (2) anyone for
   whom a PUA or PEUC claim was previously established (i.e., individuals with remaining
   PUA or PEUC balances who stopped filing such claims).

   States that are not terminating the Agreement early and that included notification of the
   September 6, 2021 expiration date at the time of notifying individuals of the changes
   related to the enactment of ARPA (as described in Section 4.d. of UIPL No. 14-21), do
   not need to provide additional individual notification to individuals.

           i. Content of notification. The individual notification must include the specific
              date on which the temporary unemployment benefit program(s) end.

              Generally, receipt of benefits under the temporary unemployment benefit
              programs indicates that an individual is not eligible for regular UC. However,
              if the individual is receiving PEUC at the time a state terminates the PEUC
              program and the individual is eligible for a regular UC claim as described in
              Section 4.a.iii.B. of this UIPL, the state must include instructions for
              reopening or filing the new regular UC claim.

              States are also encouraged to provide information about reemployment
              services, as described further in Section 4.f. of this UIPL.

          ii. Distribution method for notification. The distribution method for these
              notifications must be consistent with other correspondence provided to the
              individuals receiving these benefits by the state, which may include
              notification by mail, email, or through the individual’s online web portal.

              Additionally, the state may also post general information about the date of
              termination or expiration on their websites and on social media.

c. “Return to Work” reporting requirement. The state must continue to comply with the
   Return to Work Reporting Requirement, described in Section 4.c. of UIPL No. 09-21,
   during any period in which an Agreement for any of the UI-related provisions under the
   CARES Act, as amended, remains in effect. This includes PUA, FPUC, full federal
   funding of the first week of compensable regular unemployment for states with no
   waiting week, PEUC, MEUC, and/or 100 percent reimbursement of STC benefit costs
   paid under state law.

   As described in Section 4.a. of this UIPL, the Agreement remains in effect with respect to
   PUA, FPUC, PEUC, MEUC, and the first week of compensable regular unemployment
   for states with no waiting week for weeks of unemployment ending on or before the date
   of termination or expiration (whichever comes first) until all issues relating to those
   weeks are resolved.

   This reporting requirement includes: (1) having a procedure for how work refusals are
   received, evaluated/adjudicated, and resolved; (2) providing a reporting method for
   employers to notify the State agency when an individual refuses an offer of employment;
   and (3) providing a plain-language notice to claimants containing specific provisions
   described in Section 4.c. of UIPL No. 09-21 at the time an adjudication issue for refusing
   work is created.

d. Emergency unemployment relief for governmental entities and certain nonprofit
   organizations. Some states have provided written notice to terminate participation in the
   Emergency Unemployment Relief for Governmental Entities and Nonprofit
   Organizations provision under Section 2103 of the CARES Act, as amended. The

   Department interprets this to mean that the state does not intend to use the fund transfers
   under Section 2103 of the CARES Act, as amended, for the authorized purpose specified
   in Section 903(i)(1)(C) of the Social Security Act (SSA). See UIPL No. 18-20, Change

    2. As such, unless notified otherwise by the state, the Department will discontinue
   transferring funds to those states for weeks of unemployment beginning on or after the
   date of termination. States will receive funds for weeks of unemployment that occurred
   prior to the termination date. If a state wishes to resume receiving the transfers of funds
   and reducing the reimbursement amounts owed by governmental entities and certain
   nonprofit organizations, it must notify the Department immediately.

e. Full federal funding of the first week of compensable regular unemployment for
   states with no waiting week. The State must comply with all responsibilities with
   respect to all waiting week payments for weeks of unemployment ending on or before the
   date of termination or expiration (whichever comes first) and comply with all
   responsibilities with respect to claims filed under these programs for those weeks,
   including, without limitation, the requirements under the Agreement. See UIPL No. 20-

    20. Accordingly, the Agreement remains in effect with respect to the first compensable
   week for weeks of unemployment ending on or before the date of termination or
   expiration (whichever comes first) until all issues relating to those weeks are resolved.

   In addition, the state must reconcile any drawdowns consistent with the guidance
   provided in UIPL No. 20-20 to ensure that any funds that are drawn pursuant to the line
   labeled, “WD For 2105 Temporary Comp,” in the Automated Standard Application for
   Payments system are drawn down only for the reason attributable to Section 2105 of the
   CARES Act, as amended, and are no longer drawn for any weeks of unemployment
   beginning on or after the date of termination or expiration (whichever comes first).

f. Reinstituting participation in the pandemic UI programs. Any state that has provided
   notice to the Department of its intent to terminate any of the pandemic UI programs prior
   to the September 6, 2021 end date may reinstitute participation in any or all programs it
   previously indicated it would be terminating. If the state’s date of termination has not
   become effective, the state simply needs to provide the Department with written notice
   that it is rescinding or modifying the effective date of its prior notice of termination for
   the particular program(s) and the state will then be able to continue making payments
   under the program(s).

   If the date of termination has occurred and the state has terminated participation, the state
   may need to enter into a new agreement with the Department to reinstitute operations.
   By entering into a new agreement, the state may experience a lapse in time period for
   which the state may pay benefits under the FPUC, MEUC, and PEUC programs as the
   new agreement becomes effective the week of unemployment beginning after a new
   agreement is signed. The state will not experience a lapse in time period for which the
   state may pay benefits under the PUA program and the state must provide an opportunity
   for individuals receiving PUA to certify for the missing weeks.

       If a state enters into a new agreement or rescinds, rather than modifies, the previous
       notice of termination, the state would need to provide 30-day notice of any future
       termination of participation in the pandemic UI programs.

       States interested in reinstituting previously terminated programs should contact ETA for
       further assistance in doing so.

   g. Importance of assisting individuals in utilizing available reemployment resources.
      The Department strongly encourages states to identify procedures and resources across
      available workforce partners to ensure individuals affected by the termination or
      expiration of these temporary unemployment benefit programs are provided access to
      services through the workforce system. Refer to the resources in Training and
      Employment Notice (TEN) No. 08-20. Additionally, states may inform individuals of the
      wide array of activities that support reemployment in today’s labor market, including
      receiving services through American Job Centers. See the sample list of activities for an
      individual to be “actively seeking work” provided in Attachment I to TEN 17-19.

5. Inquiries. Please direct inquiries to [email protected] with a copy to the appropriate ETA
   Regional Office.

6. References.

      American Rescue Plan Act of 2021 (ARPA), including Title IX, Subtitle A, Crisis
       Support for Unemployed Workers (Pub. L. 117-2);
      Consolidated Appropriations Act, 2021, including Division N, Title II, Subtitle A, the
       Continued Assistance for Unemployed Workers Act of 2020 (Continued Assistance Act)
       (Pub. L. 116-260);
      Coronavirus Aid, Relief, and Economic Security (CARES) Act, including Title II,
       Subtitle A, Relief for Workers Affected by Coronavirus Act (Pub. L. 116-136);
      UIPL No. 20-21, State Instructions for Assessing Fraud Penalties and Processing
       Overpayment Waivers under the Coronavirus Aid, Relief, and Economic Security
       (CARES) Act, as Amended, issued May 5, 2021,
       https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=6830;
      UIPL No. 14-21, American Rescue Plan Act of 2021 (ARPA) – Key Unemployment
       Insurance (UI) Provisions, issued March 15, 2021,
       https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=5669;
      UIPL No. 09-21, Continued Assistance for Unemployed Workers Act of 2020 (Continued
       Assistance Act) - Summary of Key Unemployment Insurance (UI) Provisions, issued
       December 30, 2020, https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=3831;
      UIPL No. 20-20, Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020 -
       Operating, Financial, and Reporting Instructions for Section 2105: Temporary Full
       Federal Funding of the First Week of Compensable Regular Unemployment for States
       with No Waiting Week, issued April 30, 2020,
       https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=6324;
      UIPL No. 18-20, Change 2, American Rescue Plan Act of 2021 (ARPA) – Amendments to
       the Emergency Unemployment Relief for State and Local Governmental Entities, Certain

       Nonprofit Organizations, and Federally-Recognized Indian Tribes, issued March 26,
       2021, https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=7171;
      UIPL No. 17-20, Change 2, Continued Assistance for Unemployed Workers Act of 2020 –
       Pandemic Emergency Unemployment Compensation (PEUC) Program: Extension,
       Transition Rule, Increase in Total Benefits, and Coordination Rules, issued December
       31, 2020, https://wdr.doleta.gov/directives/corr_doc.cfm?docn=9291;
      UIPL No. 16-20, Change 5, Expanded Eligibility Provisions for the Pandemic
       Unemployment Assistance (PUA) Program, issued February 25, 2021,
       https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=3202;
      UIPL No. 16-20, Change 4, Continued Assistance to Unemployed Workers Act of 2020 –
       Pandemic Unemployment Assistance (PUA) Program: Updated Operating Instructions
       and Reporting Changes, issued January 8, 2021,
       https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=6973; and
      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. 15-20, Change 3, Continued Assistance for Unemployed Workers (Continued
       Assistance) Act of 2020 – Federal Pandemic Unemployment Compensation (FPUC)
       Program Reauthorization and Modification and Mixed Earners Unemployment
       Compensation (MEUC) Program Operating, Reporting, and Financial Instructions,
       issued January 5, 2021, https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=6122;
      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 4, 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 Guidance Regarding
       Temporary Emergency State Staffing Flexibility, issued April 2, 2020,
       https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=3390;
      TEN No. 08-20, Public Workforce System Role in Reopening State and Local Economies,
       issued December 10, 2020, https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=5171;
       and
      TEN No. 17-19, Model Unemployment Insurance State Work Search Legislation, issued
       February 10, 2020, https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=4227.

7. Attachment(s). None.