Back to Federal guidance
Fiscal Year 2027 unemployment insurance State Quality Service Plan guidance
Summary ETA tells state unemployment insurance agencies how to prepare their fiscal year 2027 State Quality Service Plans. It sets priorities for fraud prevention, payment accuracy, program performance, reemployment and reporting, and requires an Integrity Action Plan and corrective plans where performance falls short. Each ETA regional office will tell its states the submission deadline; ETA says states must keep the plan and integrity plan from public release because they contain sensitive operational information.
Document
Federal guidance
Agency
U.S. Department of Labor, Employment and Training Administration (ETA)
Document number
UIPL No. 14-26
Date issued
September 8, 2026
Status
Active
The letter states that it rescinds nothing and expires December 30, 2027.
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.
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.
CLASSIFICATION
EMPLOYMENT AND TRAINING ADMINISTRATION Unemployment Insurance
ADVISORY SYSTEM CORRESPONDENCE SYMBOL
U.S. DEPARTMENT OF LABOR OUI/DPM
Washington, D.C. 20210 DATE
September 8, 2026
ADVISORY: UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 14-26
TO: STATE WORKFORCE AGENCIES
FROM: MAREK LACO
Acting Assistant Secretary
SUBJECT: Additional Planning Guidance for the Fiscal Year 2027 Unemployment
Insurance State Quality Service Plan
1. Purpose. To initiate the fiscal year (FY) 2027 State Quality Service Plan (SQSP) process and
define additional requirements relevant to the FY.
2. Action Requested. The Department of Labor (Department) Employment and Training
Administration (ETA) requests State Workforce Agencies (SWAs) to:
• Make this information available to appropriate staff;
• Prepare the SQSP in accordance with planning and reporting instructions contained in
Employment and Training (ET) Handbook No. 336, 18th Edition, Change 4 (SQSP
Handbook) and additional instructions in this Unemployment Insurance Program Letter
(UIPL);
• Coordinate specifics, as appropriate, with the ETA Regional Office (RO) for electronic
submission of the SQSP; and
• Submit the FY 2027 SQSP by the deadline to the appropriate ETA RO.
3. Summary and Background.
a. Summary –This UIPL provides guidance relevant to the SQSP process for FY 2027,
including:
• FY 2027 national priorities (section 4.a. and Attachment I to this UIPL);
• Fraud risk management expectations and the Integrity Action Plan (IAP) (section 4.b.
of this UIPL);
• Unemployment insurance (UI) program performance (section 4.c. of this UIPL),
including data availability, Federal program emphasis, Corrective Action Plans
(CAPs), additional UI programs, narrative requirements for other UI performance
issues, and new performance requirements with respect to the “Reemployment Rate
in the 2nd Quarter after Program Exit for Reemployment Services and Eligibility
Assessment (RESEA) Participants”;
• Planning requirements for FY 2027 (section 4.d. of this UIPL); and
RESCISSIONS EXPIRATION DATE
None December 30, 2027
• Funding period (section 4.e. of this UIPL).
Attachment I to this UIPL describes the FY 2027 national priorities in more detail.
Attachment II provides the Measures/Programs to be addressed in the FY 2027 SQSP.
Attachment III provides a glossary for the Core Measures.
b. Background – The SQSP is a comprehensive performance management system for the UI
program and the principal vehicle that SWAs use to plan, record, and manage
improvement efforts as they strive for excellence in service. It is intended to be a
dynamic document that states can use as a management tool - much like a business plan -
not only to ensure strong program performance, but also to guide key management
decisions, such as where to focus resources. The statutory basis for the SQSP is Title III,
Section 303(a)(1) of the Social Security Act (SSA), which authorizes the Secretary of
Labor to provide funds to administer the UI program and Sections 303(a)(8) and (9),
SSA, which govern the expenditure of those funds.
The SQSP Handbook provides guidelines for the completion and submittal of the SQSP
and is approved under the Office of Management and Budget (OMB) No. 1205-0132.
The current approval expires on June 30, 2027.
***Note: Due to the sensitivity of information about integrity controls and certain other
UI operational matters, SWAs must not make the SQSP or IAP publicly available.
4. FY 2027 SQSP Guidance
ETA urges each SWA to focus its SQSP on building a strategic plan and vision for UI
operational excellence in the state. This includes a commitment to the proper and efficient
administration of the UI program and good stewardship of taxpayer dollars. SWAs
must ensure not only the integrity of the UI system but also improved performance.
This SQSP process is intended to function as a meaningful management tool and a strategic
road map to improve program administration, strengthen program integrity, and ensure
quality service delivery. This section highlights the major areas SWAs must use in
developing their FY 2027 SQSPs. Additionally, ETA recommends that SWAs identify
potential barriers and threats to success, technical assistance needs, and establish additional
state-level priorities for their UI programs.
a. FY 2027 National Priorities for the UI Program
Each year, ETA establishes national priorities for the UI program. The following national
priorities are provided for FY 2027 to assist SWAs in their development of the SQSP.
See Attachment I to this UIPL for additional details.
• Priority #1: Proactively Identify and Prevent Fraud and Appropriately Recover
Improper Payments, in accordance with the Model National Unemployment
Insurance Standards. In July 2026, ETA announced model National UI
Standards. These standards represent the integrity practices a state should have in
place to give the UI system a credible chance of stopping improper payments,
including fraudulent payments, before they are issued. ETA expects SWAs to
incorporate these model National UI Standards into their SQSP strategies and
include robust discussion in the IAP regarding how the SWA is addressing each
of the practices outlined in Attachment I, Priority #1 to mitigate fraud risks.
• Priority #2: Improve Program Performance and Operate the UI Program
Effectively. In FY 2026, ETA prioritized its resources toward more direct
oversight of the UI program by sending UI Strike Teams to SWAs whose
performance had fallen short of acceptable levels. In FY 2027, ETA will continue
to hold SWAs accountable for meeting UI performance metrics through increased
oversight.
• Priority #3: Strengthen Reemployment Connection. The UI program supports
reemployment through a variety of targeted strategies, including through
administration of RESEA, providing for robust work search activities, and the
Short-Time Compensation (STC) program.
• Priority #4: Ensure Timely, Accurate, and Complete Submission of ETA UI
Required Reports. SWAs must continue to prioritize the timely and accurate
submission of UI required reports.
b. Fraud Risk Management Expectations and the IAP
i. Assessing Fraud Risk. A critical component of effective integrity management is the
ability to assess fraud risks using a risk‑based approach and adjust activities based on
evaluation results. To effectively manage fraud risks, ETA expects each SWA to
develop and document a comprehensive anti‑fraud strategy that:
• Identifies the SWA’s approach for assessing, prioritizing, and addressing fraud
risks within the UI program;
• Describes the framework for ongoing monitoring, evaluation, and refinement of
fraud‑prevention and fraud‑detection activities;
• Incorporates data analysis, performance outcomes, audit findings, and emerging
fraud trends to inform continuous improvement;
• Demonstrates how the SWA uses risk assessments to guide the allocation of
resources, technology investments, and staff capacity; and
• Aligns SWA activities with Federal requirements, recommended practices, and
core integrity principles.1
ii. Preparing an IAP. As part of the annual SQSP submission, each SWA must submit
an IAP that outlines the state’s UI anti-fraud strategy and provides a detailed and
comprehensive plan for improving UI program integrity for the upcoming fiscal year.
See A Framework for Managing Fraud Risks in Federal Programs at https://www.gao.gov/assets/gao-15-593sp.pdf.
The IAP provides ETA with essential information to assess SWA progress in
addressing improper payment root causes, strengthening fraud detection and
prevention capabilities, improving overpayment recovery efforts, and enhancing
overall UI program integrity.
To promote the development of actionable, detailed plans while allowing flexibility
for SWAs to clearly articulate their integrity priorities, operational processes, and
strategic approaches, ETA is no longer requiring the use of an IAP template.
In addition to outlining the SWA’s UI anti-fraud strategy, ETA expects SWAs to
address and incorporate the following specific topics into the IAP as part of the FY
2027 SQSP submission.
• Discussion on how the SWA is addressing each of the practices outlined in the
model National UI Standards (Attachment I, Priority #1).
• Strategies and actions currently in place to prevent and detect fraud, waste, and
abuse;
• Activities underway or planned to address fraud and reduce improper payments;
• Efforts being taken to target the top root causes contributing to improper
payments;
• Alignment with required UI program integrity functions and recommended
practices;
• Efforts to recover overpayments, including coordination with state and Federal
investigative partners and financial institutions; and
• Recommendations implemented and/or improvements being made as a result of
ETA monitoring, a UI Strike Team engagement2, and/or compliance assistance
review.
SWAs are encouraged to revisit and refine their anti-fraud and UI program integrity
strategies on a regular basis to reflect lessons learned, operational changes, updated
performance results, and evolving fraud threats. This approach ensures the IAP serves
as both a strategic document and a mechanism for continuous improvement in UI
integrity performance. As such, ETA requires SWAs to provide a six-month update to
the IAP, covering the first two quarters of the FY (October – March) when submitting
the SQSP quarterly update for the quarter ending March 31. The update must include
details on any new strategies, solutions, and/or activities; changes to existing
strategies; planning or strategy delays and/or challenges in implementing the IAP;
positive outcomes (e.g., progress toward the achievement of objectives); and
identified successes.
ETA will continue to provide technical assistance to SWAs to support their integrity
activities through guidance, webinars, individual SWA technical assistance, and in
partnership with the many available resources to support SWAs with strengthening
UI program integrity
Applicable to SWAs that had a UI Strike Team engagement in FY 2026,
iii. Coordination with Department of Labor (DOL)-Office of Inspecter General (OIG).
SWAs are reminded of their obligation to report alleged or suspected UI fraud to the
DOL-OIG as outlined in UIPL No. 04-17, Change 1. SWAs must refer allegations
that they reasonably believe constitute UI fraud, waste, abuse, mismanagement, or
misconduct to the DOL-OIG. SWAs are also required to disclose confidential UC
information related to the Coronavirus Aid, Relief, and Economic Security (CARES)
Act, as amended, to the DOL-OIG for the purpose of UI fraud investigations and
audits for the entire pandemic relief period (see UIPL No. 04-17, Change 1).
Additionally, Training and Employment Notice (TEN) No. 05-22 reminded SWAs of
the DOL-OIG’s authority under the Inspector General Act, and ETA expects SWAs
to comply with data requests made by DOL-OIG.
iv. Coordination with the Integrity Data Hub (IDH). SWAs are also strongly
encouraged to report suspected UI fraud to the IDH by creating fraud alerts and
submit to the IDH all UI claims data for cross-matching. Providing all UI claims data
to the IDH gives SWAs the ability to analyze data against activity in other SWAs, and
the IDH’s numerous data sources can help SWAs quickly identify suspicious activity
and potential fraud across the UI system.
c. UI Program Performance
In FY 2027, ETA expects SWAs to focus on improving performance and promoting
overall excellence. See Attachment II to this UIPL for further supporting information.
i. Data Availability. ETA ROs will provide SWAs with data showing their
performance measured against the Core Measures, Secretary’s Standards, and other
information relevant to the SQSP (e.g., reporting deficiencies). The measurement
period for the FY 2027 SQSP is April 1, 2025 – March 31, 2026, unless otherwise
indicated.
ii. Federal Program Emphasis: SWAs should continue to strive to meet and exceed the
goals specified in the Government Performance and Results Act of 1993 (GPRA),3 as
amended, Pub. L. 103-62, and must describe in the SQSP Narrative the SWA’s
performance in comparison to the GPRA goals, as well as actions planned to correct
any identified deficiencies.
A. Percent of Intrastate Payments Made Timely (Make Timely Benefit Payments): 87
percent of intrastate first payments for full weeks of UC will be made within
14/21 days from the week ending date of the first compensable week.
B. Detection of Recoverable Overpayments (Detect Benefit Overpayments):
Overpayments established at a rate that is at least 57.5 percent of the estimated
detectable, recoverable overpayments.
GPRA was designed to improve program management throughout the Federal government. Under this Act, Federal
agencies are required to develop a strategic plan outlining its mission, long-term goals for the agency's major
functions, performance measures, and reporting results.
C. Percent of Employer Tax Liability Determinations Made Timely (Establish Tax
Accounts Promptly): 90 percent of status determinations for new employers will
be made within 90 days of the end of the first quarter in which liability occurred.
iii. Corrective Action Plans (CAPs): CAPs are expected whenever performance for Core
Measures or Secretary’s Standards is below established performance levels for the
SQSP measurement period.
iv. UI Programs: SWAs must address the following UI Programs as described below:
A. State Directory of New Hires (SDNH)/National Directory of New Hires
(NDNH): State Benefit Accuracy Measurement (BAM) operations that, based on
the BAM Administrative Determination, are not compliant with the NDNH
matching requirements in ET Handbook No. 395, 5th Edition, Chapter VI, UIPL
No. 03-07, and UIPL No. 03-07, Change 1, must address the deficiency in a CAP
for FY 2027.
B. BAM: State BAM operations or operational components that are not compliant
with investigative and/or methods and procedures requirements established in ET
Handbook No. 395, 5th Edition, and through findings established through ET
Handbook No. 396, 4th Edition monitoring reviews (based on the annual
determination letter issued on or before May 1, 2026), must address this non-
compliance in a CAP. This includes paid and denied claim population variances
outside established control limits.
C. Tax Performance System (TPS): To ensure that UI tax operations are in
substantial compliance with Federal reporting and oversight requirements, a
SWA’s failure to conduct one or more TPS sample reviews will be subject to a
CAP. Additionally, a tax function that is not sampled will be included in the
number of total failing functions as measured by Tax Quality Part A (no more
than three tax functions may fail TPS review) and Part B (a tax function may not
fail for three consecutive years). Exceptions include universes that are too small
to support a sample (“S”), an Experience Rate sample that was not scheduled for
review during the performance year (“E”), or the granting of a temporary waiver
(“W”) by the Regional Office (RO). SWAs should note exceptions, if any, on
their Program Review Findings screens in the Unemployment Insurance
Reporting System, accordingly.
D. Data Validation (DV): The deadline for submitting DV results for Validation
Year (VY) 2026 was June 10, 2026. The VY coincides with the SQSP
performance year. It covers data of any reporting period during the twelve
months, beginning on April 1st and ending on the following March 31st. DV
items that fail to pass validation, or were due but not submitted, are expected to be
addressed in the SWA’s FY 2027 SQSP. Non-submitted items also include failure
to certify that the state-specific instructions in the Module 3 for Benefits and Tax
are current and accurate during the April 1 – June 10, 2026 certification window.
Any DV items due for VY 2026 that did not pass or were not submitted by the
deadline (June 10, 2026) are expected to be addressed in a CAP for FY 2027.
ROs will monitor SWAs every three years on cycles coinciding with the DV
Years. ROs will assess the accuracy of the SWAs’ DV results considered passing
at the time of the monitoring review to verify that the SWAs are properly
implementing the DV program according to the program handbooks. DV items
submitted as passing, but which a monitoring review determined to have failed,
are also expected to be addressed in the SQSP. All subsequent SQSP cycles will
address items changed from pass to fail in the previous year’s monitoring review.
v. Narrative Requirements for Other UI Performance Issues. SWAs are expected to
address the following performance deficiencies in the SQSP State Plan Narrative,
unless otherwise indicated.
• Failure to meet reporting requirements for Federally-required reports.
• Invalid recording of the Issue Detection Date (IDD) and Determination Date
(DD). The validity of the UI Performs nonmonetary determination timeliness
measure depends on the accuracy of the SWA’s IDD and DD data. IDD and DD
data are considered accurate if dates were correct in at least 95 percent of the
nonmonetary determinations evaluated in the quarterly quality samples (obtained
from the ETA 9056 report for the measurement period (see Attachment I)). Since
the accuracy of IDD and DD data is based on sample results, sampling variation
will be taken into account in setting the percentage below which a SWA’s data
will be considered inaccurate. SWAs with invalid IDD or DD data are expected to
address the steps they will take to record the IDD and DD correctly in the SQSP
Narrative.
vi. New Performance Requirements. UIPL No. 07-21, published in FY 2021, announced
for SWAs with Reemployment Services and Eligibility Assessment (RESEA)
programs a new reemployment core measure: Reemployment Rate in the 2nd Quarter
after Program Exit for RESEA Participants. This core measure is designed to focus on
RESEA program performance, given that the RESEA program is now permanently
authorized within the context of the broader workforce development system. This
measure aligns with the Workforce Innovation and Opportunity Act’s (WIOA)
primary indicators of performance and will utilize data that SWAs already report for
Employment Service programs. This will enable ETA to assess SWA performance
related to the employment outcomes of RESEA participants.
To accommodate time necessary to capture RESEA participant outcomes, the FY
2027 SQSP process will assess performance using RESEA outcome data from FYs
2023-2025. SWAs that do not meet performance criteria will be expected to submit
CAPs for the FY 2027 SQSPs.
UIPL No. 07-21 also announced two new program performance measures that are
meant to assist SWAs in managing reemployment performance, but these measures
are not core measures and do not have associated ALPs.
d. Planning Requirements for FY 2027
i. SQSP Submittal Cycle. The SQSP process provides a 24-month window for SWAs to
adequately plan and implement performance improvement efforts. The process
provides for two types of submittals: a Formal two-year (Biennial) plan, and an
Alternate Year plan. Descriptions of the Biennial and Alternate Year SQSP
submittals, significant activities, and dates relating to the submittal and approval of
the SQSP are outlined in the SQSP Handbook and this UIPL. For FY 2027, all SWAs
will submit a Biennial SQSP.
Each ETA RO will set a date and inform SWAs of the deadline to submit their SQSPs
for FY 2027.
ii. SQSP Preparation. In addition to submitting their Transmittal Letter, Budget
Worksheets/Forms, State Organization Chart, and SQSP Signature Page, SWAs must
use the Excel CAP Workbook to develop their CAPs for the SQSP submissions.
SWAs must also use the Excel CAP Workbook for reporting updates to specific CAP
milestones and CAP performance each quarter.
To promote the development of actionable, detailed plans while allowing flexibility
for SWAs to clearly articulate their integrity priorities, operational processes, and
strategic approaches, ETA is no longer requiring the use of an IAP template. In
addition to outlining the SWA’s UI anti-fraud strategy, ETA expects SWAs to
address and incorporate the specific topics listed above in section b, Fraud Risk
Management Expectations and the IAP, into the IAP as part of the FY 2027 SQSP
submission.
iii. SQSP Assurances and Approval. By signing the SQSP Signature Page, a SWA
certifies that it will comply with the assurances listed in ET Handbook No. 336, 18th
Edition, Change 4, and will institute plans or measures to comply with the
requirements for each of the assurances. SWAs must also comply with the Assurance
of Disaster Unemployment Assistance as described below:
• Assurance of Disaster Unemployment Assistance (DUA): Each SWA must
ensure that it will conduct annual training for DUA staff and develop and
maintain a Standard Operating Procedures manual for DUA. SWAs are
encouraged to use the DUA training modules available on ETA’s learning
platform hosted by the National Association of State Workforce Agencies at
https://www.naswa.org/learning.
Each SWA must: (1) indicate that it has conducted training and provide the
date(s) of the training; and (2) indicate that it has developed and/or maintained
DUA Standard Operation Procedures for use during a major disaster declaration.
SWAs may contact the RO for a copy of a DUA Standard Operating Procedure
Template. ROs will also obtain an initial copy from each SWA for the
Department’s record. See TEN No. 13-21 for additional information.
iv. Electronic Submission of the SQSP. SWAs must submit the SQSPs electronically and
should contact their respective RO SQSP Coordinators before submittal to coordinate
specific details. Standard forms required as part of the budget reporting process
(Chapter II of ET Handbook No. 336, 18th Edition, Change 4) are available in PDF and
may be downloaded from the OMB website at: grants.gov/forms/forms-repository/sf-
424-family.
SWAs may submit the SQSP Signature Page electronically if state law permits.
SWAs that do not submit the signature page electronically (which includes by fax or
scan) must submit the signature page by mail by the deadline set by the RO.
v. WIOA Combined State Plans. Given that the UI program is a mandatory one-stop
partner under WIOA, SWAs have the option of including the UI program as part of
the Combined State Plan. Regardless, each SWA must participate in the UI Performs
SQSP process whether or not the SWA decides to include the UI program as part of
its Combined State Plan.
If a SWA chooses to submit a WIOA Combined State Plan with UI as a required
partner, the SWA must incorporate SQSP into the Combined State Plan via the
WIOA State Plan Portal at https://wioaplans.dol.gov/. Those SWAs must incorporate
only the allowable documents for FY 2026 into the Combined State Plan upon ETA’s
approval of the SQSP, but no later than October 31, 2026.
Because of the sensitive nature of some SQSP documents, only the following SQSP
documents are allowed to be included in the WIOA Combined State Plan:
• Transmittal Letter
• A list of CAPs (the Biennial year SQSP Overview Page from the SQSP CAPs and
Quarterly Reporting Workbook)
• Budget Worksheets/Forms
• Organization Chart
• SQSP Signature Page
e. Funding Period. The Department's proposed FY 2027 appropriation act language for
State UI and Employment Service Operations reflects the revised language enacted in the
Consolidated Appropriations Act, 2026, Pub. L. 119-75. This language: (1) removes the
state obligational authority reference, which means SWAs' obligational authority for
automation is no longer limited to the period ending on December 31 immediately
following the fiscal year; and (2) adds a "recapture" provision letting the Department
recapture and reissue states' unexpended funds after the period of expenditure (but before
return to the Trust Fund) for UI-related automation activities.
As a result, funds are available for state obligation beginning on October 1, 2026, and for
Federal obligation through December 31, 2027, except for RESEA outcome payments
under section 306(f)(2) of the Social Security Act, which remain available through March
31, 2028.
The period of performance for SWAs' grants will be set by the terms and conditions in
the corresponding Notice of Award and is expected to match each fund source's
maximum statutory/regulatory life (subject to fund availability). States have 90 additional
days after the funding period ends to liquidate obligations; extensions require the ETA
Grant Officer's written approval, requested through the appropriate regional office at least
30 days before the deadline.
Grant management resources, including terms and conditions, are at
https://www.dol.gov/agencies/eta/grants/resources. FY 2027 terms and conditions are not yet
available and will be issued through ROs and posted to that page.
5. Inquiries. Please direct inquiries to the appropriate ETA RO.
6. References.
• Social Security Act (SSA), sections 303(a)(1), 303(a)(8) and (9), and 306 (42 U.S.C.
503(a)(1) and 506);
• Government Performance and Results Act (GPRA) of 1993, Pub. L. 103-62, as amended
by GPRA Modernization Act of 2010, Pub. L. 111-352;
• Payment Integrity Information Act of 2019 (PIIA), Pub. L. 116-117
https://www.congress.gov/116/plaws/publ117/PLAW-116publ117.pdf;
• Workforce Innovation and Opportunity Act (WIOA), Pub. L. 113-128, 29 USC 3101 note
and Title I;
• Wagner-Peyser Act, 29 U.S.C. Sec. 49 et seq., as amended by Title III of WIOA;
• Trade Act of 1974, Pub. L. 93-618, as amended;
• Bipartisan Budget Act of 2013, Pub. L. 113-67;
• Bipartisan Budget Act of 2018, Pub. L. 115-123;
• 20 CFR Parts 601, 640, 650, 652, and 660;
• 2 CFR Part 200, Subpart F, The Uniform Administrative Requirements, Cost Principles,
and Audit Requirements for Federal Awards at 2 CFR Parts 200 and 2900;
• Appendix C to Office of Management and Budget (OMB) Circular A123, Requirements
for Payment Integrity Improvement;
• UIPL No. 13-26, Fiscal Year 2026 Funding Allotments and Operating Guidance for
Unemployment Insurance Reemployment Services and Eligibility Assessments Grants,
issued July 29, 2026, UNEMPLOYMENT INSURANCE PROGRAM LETTER No. 13-
26 | U.S. Department of Labor;
• UIPL No. 01-22, Announcing the Availability of an Incarceration Data Exchange and
Instructions to Access the Data Exchange between the Unemployment Insurance (UI)
Interstate Connection Network (ICON) and the Social Security Administration (SSA)
Prisoner Update Processing System (PUPS), issued October 29, 2021,
UNEMPLOYMENT INSURANCE PROGRAM LETTER No. 01-22 | U.S. Department
of Labor;
• UIPL No. 07-21, Performance Measures for Reemployment Services and Eligibility
Assessments (RESEA) and Unemployment Insurance (UI) participants, issued December
17, 2020, UNEMPLOYMENT INSURANCE PROGRAM LETTER No. 07-21 | U.S.
Department of Labor;
• UIPL No. 13-19, National Directory of New Hires (NDNH) and State Directory of New
Hires (SDNH) Guidance and Best Practices, issued June 7, 2019, UNEMPLOYMENT
INSURANCE PROGRAM LETTER No. 13-19 | U.S. Department of Labor;
• UIPL No. 14-17, States' Responsibilities for Internal Security in the Unemployment
Insurance Program, issued March 23, 2017, UNEMPLOYMENT INSURANCE
PROGRAM LETTER No. 14-17 | U.S. Department of Labor;
• UIPL No. 04-17, Change 1, Requirement for States to Refer Allegations of
Unemployment Compensation (UC) Fraud, Waste, Abuse, Mismanagement, or
Misconduct to the Department of Labor's (Department) Office of Inspector General's
(DOL-OIG) and to Disclose Information Related to the Coronavirus Aid, Relief, and
Economic Security (CARES) Act to DOL-OIG for Purposes of UC Fraud Investigation
and Audits, issued August 3, 2021, UNEMPLOYMENT INSURANCE PROGRAM
LETTER No. 04-17, Change 1 | U.S. Department of Labor;
• UIPL No. 17-16, Reengineering Unemployment Insurance (UI) Benefits Program
Accountability Process: High Priority Designation of States with Sustained Poor
Performance, issued July 13, 2016, UNEMPLOYMENT INSURANCE PROGRAM
LETTER No. 17-16 | U.S. Department of Labor;
• UIPL No. 02-16, Change 1, State Responsibilities for Ensuring Access to Unemployment
Insurance Benefits, Services, and Information, issued May 11, 2020,
UNEMPLOYMENT INSURANCE PROGRAM LETTER No. 02-16, Change 1 | U.S.
Department of Labor;
• UIPL No. 02-16, State Responsibilities for Ensuring Access to Unemployment Insurance
Benefits, issued October 1, 2015, UNEMPLOYMENT INSURANCE PROGRAM
LETTER No. 02-16 | U.S. Department of Labor;
• UIPL No. 01-16, Change 1, Federal Requirements to Protect Claimant Rights in State
Unemployment Compensation Overpayment Prevention and Recovery Procedures –
Questions and Answers, issued January 13, 2017, UNEMPLOYMENT INSURANCE
PROGRAM LETTER No. 01-16, Change 1 | U.S. Department of Labor;
• UIPL No. 01-16, Federal Requirements to Protect Individual Rights in State
Unemployment Compensation Overpayment Prevention and Recovery Procedures, issued
October 1, 2015, UNEMPLOYMENT INSURANCE PROGRAM LETTER No. 01-16 |
U.S. Department of Labor;
• UIPL No. 17-14, Revised Employment and Training (ET) Handbook No. 336, 18th
Edition: “Unemployment Insurance (UI) State Quality Service Plan (SQSP) Planning
and Reporting Guidelines”, issued July 7, 2014, UNEMPLOYMENT INSURANCE
PROGRAM LETTER No. 17-14 | U.S. Department of Labor;
• UIPL No, 09-13, Change 1, Integrity Performance Measure for Unemployment
Insurance, issued January 27, 2015, UNEMPLOYMENT INSURANCE PROGRAM
LETTER No. 09-13, Change 1 | U.S. Department of Labor;
• UIPL No. 09-13, Integrity Performance Measures for Unemployment Insurance (UI),
issued January 29, 2013, UNEMPLOYMENT INSURANCE PROGRAM LETTER No.
09-13 | U.S. Department of Labor;
• UIPL No. 05-13, Work Search and Overpayment Offset Provisions Added to Permanent
Federal Unemployment Compensation Law by Title II, Subtitle A of the Middle Class Tax
Relief and Job Creation Act of 2012, issued January 10, 2013, UNEMPLOYMENT
INSURANCE PROGRAM LETTER No. 05-13 | U.S. Department of Labor;
• UIPL No. 03-11, Implementation of the Effective Audit Measure, issued December 30,
2010, UNEMPLOYMENT INSURANCE PROGRAM LETTER No. 03-11 | U.S.
Department of Labor;
• UIPL No. 03-07, Change 1, Use of National Directory of New Hires (NDNH) in
Unemployment Insurance (UI) Benefit Accuracy Measurement (BAM) Audits, issued
February 27, 2008, UNEMPLOYMENT INSURANCE PROGRAM LETTER No. 03-07,
Change 1 | U.S. Department of Labor;
• UIPL No. 03-07, Use of National Directory of New Hires (NDNH) in Unemployment
Insurance (UI) Benefit Accuracy Measurement (BAM) Audits, issued October 31, 2006,
UNEMPLOYMENT INSURANCE PROGRAM LETTER No. 03-07 | U.S. Department
of Labor;
• UIPL No. 14-05, Change 3, Acceptable Levels of Performance (ALP) Criteria for
Appeals Case Aging Measures and Nonmonetary Determination Quality Review, issued
April 16, 2008, UNEMPLOYMENT INSURANCE PROGRAM LETTER No. 14-05,
Change 3 | U.S. Department of Labor;
• UIPL No. 14-05, Change 2, Performance Criteria for Appeals Case Aging Measures and
the Starting Date for Measuring Nonmonetary Determinations Time Lapse, issued
December 13, 2006, UNEMPLOYMENT INSURANCE PROGRAM LETTER No. 14-
05, Change 2 | U.S. Department of Labor;
• UIPL No. 14-05, Change 1, Performance Criterion for the Overpayment Detection
Measure; Clarification of Appeals Timeliness Measures; and Implementation of Tax
Quality Measure Corrective Action Plans (CAPs), issued October 12, 2005,
UNEMPLOYMENT INSURANCE PROGRAM LETTER No. 14-05, Change 1 | U.S.
Department of Labor;
• UIPL No. 14-05, Changes to UI Performs, issued February 18, 2005,
UNEMPLOYMENT INSURANCE PROGRAM LETTER No. 14-05 | U.S. Department
of Labor;
• TEGL No. 01-26, Fiscal Year 2026 Funding Allotments and Operating Guidance for
Unemployment Insurance Reemployment Services and Eligibility Assessments Grants,
issued July 29, 2026, TRAINING AND EMPLOYMENT GUIDANCE LETTER No. 01-
26 | U.S. Department of Labor;
• TEN No. 28-23, Announcement of a New Data Sharing Partnership Between the U.S.
Department of Treasury’s (Treasury) Bureau of the Fiscal Service (Fiscal Service) and
the National Association of State Workforce Agencies’ (NASWA) Unemployment
Insurance (UI) Integrity Center to provide State UI Agencies Access to Do Not Pay
Working System (DNP) Data Sources and Services through the UI Integrity Data Hub
(IDH), issued May 2, 2024, TRAINING AND EMPLOYMENT NOTICE No. 28-23 |
U.S. Department of Labor;
• TEN No. 05-22, Authority of the U.S. Department of Labor’s (Department) Office of
Inspector General (DOL-OIG) to Receive Confidential Unemployment Compensation
(UC) Data, issued September 15, 2022, TRAINING AND EMPLOYMENT NOTICE
No. 05-22 | U.S. Department of Labor;
• TEN No. 24-21, Encouragement for States to Use the Integrity Data Hub (IDH)
available through the Unemployment Insurance (UI) Integrity Center, issued May 5,
2022, TRAINING AND EMPLOYMENT NOTICE No. 24-21 | U.S. Department of
Labor;
• TEN No. 15-21, Announcing the National Association of State Workforce Agencies
(NASWA) Unemployment Insurance (UI) Integrity Center’s Behavioral Insights Toolkit,
issued November 17, 2021, TRAINING AND EMPLOYMENT NOTICE No. 15-21 |
U.S. Department of Labor;
• TEN No. 13-21, State Quality Service Plan Assurances Required for Disaster
Unemployment Assistance, issued October 19, 2021, TRAINING AND EMPLOYMENT
NOTICE No. 13-21 | U.S. Department of Labor;
• TEN No. 17-19, Model Unemployment Insurance State Work Search Legislation, issued
February 10, 2020, TRAINING AND EMPLOYMENT NOTICE No. 17-19 | U.S.
Department of Labor;
• TEN No. 12-16, Unemployment Insurance (UI) State Information Data Exchange System
(SIDES), issued September 27, 2016, TRAINING AND EMPLOYMENT NOTICE No.
12-16 | U.S. Department of Labor;
• TEN No. 08-14, Reengineering Unemployment Insurance (UI) Benefits Program
Accountability Processes, issued September 2, 2014, TRAINING AND EMPLOYMENT
NOTICE No. 08-14 | U.S. Department of Labor;
• ET Handbook No. 336, Unemployment Insurance (UI) State Quality Service Plan (SQSP)
Planning and Reporting Guidelines, 18th Edition, Change 4 (March 2019), ET
HANDBOOK No. 336, 18th Edition, Change 4 | U.S. Department of Labor;
• ET Handbook No. 361, State Unemployment Insurance (UI) Data Validation (DV)
Handbook, Benefits and Tax (August 2026), ET HANDBOOK No. 361 | U.S.
Department of Labor;
• ET Handbook No. 395, Benefit Accuracy Measurement State Operations Handbook, 5th
Edition (November 2009), ET HANDBOOK No. 395, 5th Edition | U.S. Department of
Labor;
• ET Handbook No. 396, Unemployment Insurance Benefit Accuracy Measurement
Monitoring Handbook, 4th Edition (November 2009), ET HANDBOOK No. 396, 4th
Edition | U.S. Department of Labor; and
• ET Handbook No. 401, 5th Edition, UI Report Handbook No. 401 (July 2017), ET
HANDBOOK No. 401, 5th Edition | U.S. Department of Labor.
7. Attachments.
• Attachment I: FY 2027 National Priorities for the UI Program.
• Attachment II: Measures/Programs to be Addressed in the Fiscal Year (FY) 2027 State
Quality Service Plan (SQSP).
• Attachment III: Core Measures Glossary.
Attachment I
FY 2027 National Priorities for the UI Program
PRIORITY #1
Proactively Identify and Prevent Fraud and Appropriately Recover Improper Payments, in
accordance with the Model National Unemployment Insurance (UI) Standards.
In July 2026, ETA announced model National Unemployment Insurance (UI) Standards. These
standards represent the integrity practices a state should have in place to give the UI system a
credible chance of stopping improper payments, including fraudulent payments, before they are
issued.
The standards include practices that many states have themselves determined necessary to run a
secure program. What is missing is consistency. Where these standards are applied unevenly -
strong in one state, weak or absent in the next - fraud migrates to the weakest point, and the
interstate data sharing that makes these checks effective breaks down.
ETA requests that SWAs incorporate these model National UI Standards into their SQSP
strategies and include robust discussion in the IAP regarding how the SWA is addressing each of
these practices and mitigating the underlying fraud risks that drive them:
1) Verify every initial claim before issuing payment. Each initial claim should be checked
to:
a. Determine whether the same individual is receiving UI benefits in another state;
b. Crossmatch the claim against known fraudulent attributes - including those flagged in
other states - using email address, IP address, bank account, employer, mailing
address, and telephone number;
c. Confirm the individual is not deceased;
d. Verify bank account information before making a deposit;
e. Verify current and base period work authorization; and
f. Enable multi-factor authentication for all user accounts.
2) Verify every continued claim, not just the first. Each continued claim should be checked
to confirm that:
a. The claimant continues to meet eligibility requirements for being able to work,
available to work, and actively seeking work;
b. Work authorization remains current;
c. The claimant is not receiving UI benefits also in another state; and
d. Where a claimant has made any material change to their account, that claim should
again be screened for suspicious attributes across email, IP address, bank account,
mailing address, and telephone number - leveraging the same and additional tools
used for the initial claim check.
3) Verify identity before any money moves. Every claimant should have their identity
verified before any payment is issued.
Attachment I
4) Confirm separations with employers. Every effort should be made to confirm separation
information directly with the employer, including through the use of the electronic
exchange of information with employers, and to resolve any discrepancy before the claim
is paid – not after. The Department reminds states of the prohibition on providing relief
of charges to an employer when the employer fails to respond timely or adequately to a
request for information by the state agency and has an established pattern of failing to
respond to such requests.
5) Confirm work performance while an individual is receiving UI payments.4 For
continued claims, states should:
a. Check the claim against interstate and intrastate wage records, state and national New
Hire registries, and where possible under state data sharing parameters, state tax
records;
b. Use data analytics to identify trends on a claim reflecting unreported work and
earnings or job separations and leverage electronic information exchange with
employers; and
c. Prioritize reviewing claims in active filing status and where other factors reflect an
increased risk of fraud - considering a claim's eligibility in its totality rather than
siloed by individual cross matching results.
6) Confirm base period wages against verifiable records. Claims should be checked against
wage records upon submission, with any discrepancy resolved before payment where
possible. This is necessary to ensure that individuals do not self-report or overstate their
wage history to fraudulently receive additional UI amounts.
7) Include the reporting of work search activities before payment is issued. States'
processes should:
a. Include reporting details on work search activities upfront, rather than requiring a
simple yes/no answer, to facilitate downstream auditing; and
b. Leverage its RESEA program as an opportunity to communicate expectations for
work search activities, and to review actual logs and supporting documentations for
compliance with state law.
8) Shut down UI tax fraud schemes. States should actively monitor for fictitious employer
schemes, State Unemployment Tax Act (SUTA) dumping, and other fraudulent behaviors
or manipulation of the experience-rating system, watching for the changes in business
ownership that typically accompany these practices. Monitoring should use data and
technological tools as available.
ETA acknowledges the constraints around crossmatch hits that are received after the work has been completed, and
expects states to seriously consider enhancing their wage records to: (1) collect and report certain enhanced wage
record elements; (2) increase the frequency of employer wage reporting to occur at least monthly; and (3) prepare
for and engage in robust, proactive communication with employers and employer representatives so that employers
can successfully implement enhanced reporting expectations.
Attachment I
9) Robust internal quality control to continuously assess effectiveness of antifraud
efforts5. A state must have a robust internal quality control program for assessing risk,
evaluating outcomes, and adapting mitigation activities to improve fraud risk
management strategies. States should:
a. Use the sample cases reviewed through the BAM program6 as a floor, not a ceiling -
reviewing additional cases, regularly updating the Fraud Risk Profile, and
maintaining a continuous feedback loop with information technology (IT), policy, and
operations staff to address the findings; and
b. Designate a responsible party who is looking at this activity UI systemwide – with
consideration for Benefits, Tax, Integrity, and Appeals operations.
PRIORITY #2
Improve Program Performance and Operate the UI Program Effectively
In FY 2026, ETA prioritized its resources toward more direct oversight of the UI program by
sending UI Strike Teams to SWAs whose performance had fallen short of acceptable levels. In
FY 2027, ETA will continue to hold SWAs accountable for meeting UI performance metrics
through increased oversight. SWAs with poor performance will be subject to intensive
monitoring and audit, and failure to improve UI performance will result in escalation, up to and
including, the withholding of administrative grant funding.
In developing their SQSPs, SWAs are strongly encouraged to incorporate administrative
capacity-building strategies such as:
• Conducting business process analysis in key areas to identify opportunities for improving
program operations, and implementing recommendations from the analysis to improve
performance;
• Assessing possible modifications to the states’ processes, policy, IT, and staffing resources to
support efficient administration of the program;
• Reviewing staff training strategies to support succession planning and ongoing staff
development (https://www.naswa.org/services/learning); and
• Using technical assistance opportunities offered by the Department, the UI Information
Technology Support Center (ITSC), and the UI Integrity Center, as well as the peer-to-peer
communication platforms and other information sharing tools available through the UI
Community of Practice (CoP).
WorkforceGPS, Unemployment Insurance Fraud Risk Management,
https://ui.workforcegps.org/resources/2024/05/01/18/20/Unemployment_Insurance_Fraud_Risk_Management. An
authorized account is required for access. The Department discusses internal security in more detail under UIPL No.
14-17, States' Responsibilities for Internal Security in the Unemployment Insurance Program, issued March 23,
2017, https://www.dol.gov/agencies/eta/advisories/unemployment-insurance-program-letter-no-14-17.
6
The BAM program provides the basis for assessing the accuracy of UI payments and is a diagnostic tool for
identifying errors and their causes.
Attachment I
PRIORITY #3
Strengthen the Reemployment Connection
The UI program supports reemployment through a variety of targeted strategies, including
through administration of RESEA, providing for robust work search activities, and the Short-
Time Compensation (STC) program.
1) RESEA as an Individualized Reemployment Program. Among other statutory purposes,
the RESEA program is intended to promote the alignment of reemployment programs
and serve as an entry point to Federal, state, and local workforce, training, and education
programs, such as the Wagner-Peyser Act-funded Employment Service, the WIOA
Dislocated Worker program, and Registered Apprenticeship. As a dedicated funding
stream for evidence-based, individualized reemployment services for claimants of UI
benefits, RESEA is a permanent partner within the public workforce development
system. RESEA is also explicitly identified as a designated component of America’s
Talent Strategy: Building the Workforce for the Golden Age. Specifically, RESEA’s
ability to support the rapid reemployment of UI claimants is identified as a key
component of strategic Pillar II: Worker Mobility and other RESEA components may
also contribute to other strategic pillars, including Pillar III: Integrated Systems and Pillar
IV: Accountability.
The Department is working to identify opportunities to enhance SWAs’ capacity to
connect UI claimants to reemployment services and other resources that meet their
specific needs, such as referrals to Registered Apprenticeship programs and using
technology to provide customized labor market information and reemployment plans.
The Department is also working with SWAs on opportunities to reform work search
protocols, a required component of RESEA, to better align UI claimants with meaningful
work search activities that improve reemployment outcomes and lower duration of
unemployment compensation receipt.
The RESEA program requires SWAs to submit an annual RESEA state plan as a
precondition to receiving their formula allocated grant. Annual operating guidance
published by the Department provides instruction and policy updates for SWAs to
develop their plans. These plans describe a SWA’s implementation of RESEA services
and activities and provide information about their use of required evidence-based
interventions. UIPL No. 13-26 and TEGL No. 01-26 provide the FY 2026 RESEA
operating guidance. SWAs are permitted to reference their RESEA and WIOA state plans
in the SQSP rather than replicate these strategies and approaches. SWAs should also
discuss in their SQSPs how their RESEA strategies support reducing improper payments,
including the review of claimant eligibility and providing services that help participants
comply with work search requirements.
2) Robust Work Search Requirements that Actively Support Reemployment. Another
targeted strategy to support reemployment is through the work search requirements set
Attachment I
forth in Section 303(a)(12) of the SSA. Each state defines acceptable work search
activities through its laws and policies, which vary across the SWAs. In TEN No. 17-19,
ETA provides SWAs with model work search legislation. ETA reminds SWAs that this
TEN focuses on proactively referring claimants to suitable work, establishing a
comprehensive definition of acceptable work search activities that focuses on rapid
reemployment, and providing fair notice and documentation of requirements. It is a
promising practice for SWAs to have a fully integrated workforce system that focuses its
collective efforts on assisting claimants to return to suitable work as quickly as possible.
The following items reflect work search strategies that SWAs should consider:
• Requiring work search activities that embrace a wide array of activities that support
reemployment in today’s labor market and include receiving services through
American Job Centers;
• Supporting claimant compliance with required work search activities through a
reemployment service delivery design that includes developing clear, plain language
work search requirements and behavioral insights that: 1) ensure claimants
understand work search requirements (both acceptable activities and documentation
requirements); 2) ensure claimants understand the consequences of failing to comply
with these requirements; and 3) provide assistance in developing a reemployment
plan that meets the requirements, including through customer-friendly technology
applications that facilitate claimants carrying out tasks that meet the work search
requirements;
• Leveraging the design of the SWA’s RESEA program to support the development of
an individual reemployment plan that can help each claimant effectively plan work
search activities, and make such services available virtually to support a broader
reach; and (2) encourage RESEA (and other career and reemployment service
providers) to take advantage of the My Reemployment Plan to support development
of individualized reemployment plans and connect claimants to effective
reemployment resources (see Pathways to Reemployment);
• Proactively identifying and referring claimants to suitable job openings from public
and private job banks, and requiring claimants to apply to all referred suitable job
openings (which may be beyond any minimum number of required work search
activities) and accept employment in suitable work if offered;
• Developing and facilitating continuous review of completed work search activities to
verify claimant compliance;
• Documenting these activities through the SWA’s case management system or other
IT systems that support documentation requirements; and
• Providing case management services through American Job Center career counselors,
which include following up with claimants and employers on the results of job
Attachment I
referrals to inform future job referrals and/or the need for additional reemployment
services for the claimant.
3) Short-Time Compensation (STC) as a Lay-Off Aversion Program. The STC program
(known also as “work-sharing” or “shared work”) is a lay-off aversion program in which
an employer, under a state-approved plan, reduces the work hours for a group of workers,
and these workers in turn receive reduced UI payments for the weeks in which they
worked reduced hours. ETA also encourages the use of STC to support workers and
employers.
PRIORITY #4
Ensure Timely, Accurate, and Complete Submission of ETA UI Required Reports
In FY 2025 and FY 2026, ETA, in coordination with the Department’s Office of the Chief
Information Officer, launched the UI required reporting application in the modernized UI
Reporting System (UIRS) (UIPL No. 15-24 and its Changes). This new cloud-based system
aligns SWAs and Federal users within a single system through a modern and streamlined user
interface. In this new system, SWAs should continue to prioritize the timely and accurate
submission of UI required reports and notify the Department through the hotline team for any
system support requirements.
Also in FY 2026, ETA, in conjunction with the Department’s Office of the Chief Financial
Officer, continued to work with SWAs to reconcile outstanding financial reporting issues
primarily tied to the expired pandemic-era programs. While ETA expects to complete this
reconciliation work in FY 2026, SWAs must continue to report accurate and timely data in FY
2027, reconcile Federal and state financial funding, and respond to outreach on key UI financial
reports. Key ongoing financial reporting includes, but is not limited to, the ETA 2112 Monthly
Financial Summary Report, the ETA 227 Overpayment Detection and Recovery Report
(including the report versions for both the regular and CARES Act programs) and the ETA 902P
Pandemic Unemployment Assistance Report.
The SWA’s SQSP Narrative is required to include actions planned to address financial and
performance reporting issues, including, but not limited to, report timeliness in FY 2027.
Attachment II
Measures/Programs to be Addressed in the Fiscal Year (FY) 2027
State Quality Service Plan (SQSP)
Core Measures Measurement Period Criteria Requirement
First Payment Promptness Apr 1, 2025 – Mar 31, 2026 87% CAP
Nonmonetary Determination Apr 1, 2025 – Mar 31, 2026 80%
CAP
Time Lapse (combined score)
Nonmonetary Determination Apr 1, 2025 – Mar 31, 2026
75% CAP
Quality – Non-separations
Nonmonetary Determination Apr 1, 2025 – Mar 31, 2026
75% CAP
Quality – Separations
BPC
50% CAP
Apr 1, 2023 – Mar 31, 2026
BAM 95% CAP
Detection of Overpayments
Oct. 1, 2022 – Sep. 30, 2025
If rate over 95% is a result of
improper administration of 95% CAP
BAM and/or BPC
Average Age of Pending Lower Apr 1, 2025 – Mar 31, 2026
30 days CAP
Authority Appeals
Average Age of Pending Higher Apr 1, 2025 – Mar 31, 2026
40 days CAP
Authority Appeals
Lower Authority Appeals Apr 1, 2025 – Mar 31, 2026
80% CAP
Quality
New Employer Status
Jan 1, 2025 – Dec 31, 2025 70% CAP
Determinations Time Lapse
Jan 1, 2025 – Dec 31, 2025 No more than 3 tax
functions failing Tax
Tax Quality – Part A CAP
Performance System
(TPS) in a year
Jan 1, 2025 – Dec 31, 2025 The same tax
function may not fail
Tax Quality – Part B CAP
for 3 consecutive
years
Jan 1, 2025 – Dec 31, 2025 Score >7 and pass
Effective Audit Measure CAP
all 4 factors
BAM batches 202427
Improper Payments Measure < 10% CAP
through 202526
UI Overpayment Recovery
Jul 1, 2024 – Jun 30, 2025 68% CAP
Measure
Attachment II
Secretary’s Standards
Measurement Period Criteria Requirement
in Regulation
First Payment Promptness Apr 1, 2025 – Mar 31, 2026
87% CAP
(Intrastate 14/21 Days)
First Payment Promptness Apr 1, 2025 – Mar 31, 2026
93% CAP
(Intrastate 35 Days)
First Payment Promptness Apr 1, 2025 – Mar 31, 2026
70% CAP
(Interstate 14/21 Days)
First Payment Promptness Apr 1, 2025 – Mar 31, 2026
78% CAP
(Interstate 35 Days)
Lower Authority Appeals (30 Apr 1, 2025 – Mar 31, 2026
60% CAP
Days)
Lower Authority Appeals (45 Apr 1, 2025 – Mar 31, 2026
80% CAP
Days)
UI Programs, etc. Measurement Period Criteria Requirement
Results not
submitted by CAP
June 10, 2026
Data Validation –Populations &
Apr 1, 2025 – Mar 31, 2026 Failing/
Modules (Benefits and Tax)
incomplete
CAP
submissions by
June 10, 2026
Compliance with NDNH
Must meet
matching requirements for Status as of March 31, 2026 CAP
requirements
BAM
BAM operations not compliant
with investigative and/or
Based on the annual
method and procedure Must meet
determination letter issued CAP
requirements including requirements
on or before May 1, 2026
construction of valid samples
and sample populations
Incorrect recording of the Issue
Detection Date and/or Apr 1, 2025 – Mar 31, 2026 95% Narrative
Determination Date
TPS Sample Reviews Jan 1, 2025 – Dec 31, 2025 Must submit CAP
Reporting Deficiencies Ongoing Must submit Narrative
May not fail target
RESEA Participant
Jan 1, 2025 – Dec 31, 2025 for 3 consecutive CAP
Reemployment Rate
years
Attachment II
UI Program Integrity Ongoing Must submit IAP
Attachment III
Core Measures Glossary
• The Detection of Overpayments Measure. This measure is the percentage of detectable /
recoverable overpayments estimated by the Benefit Accuracy Measurement (BAM) survey that
was established for recovery through regular UI Benefit Payment Control (BPC) program
operations. For this Program Integrity Measure, the acceptable level of performance is a range of
>50% and <95%. Any SWA reporting an overpayment detection rate below 50 percent is expected
to address the deficiency in a CAP. In addition, because it is challenging for most SWAs to cost-
effectively detect and establish more than 90 percent of estimated overpayments, the upper limit of
95 percent was established. If an overpayment detection rate is above 95 percent and is found to be
the result of improper administration of BAM or BPC activities, or misreporting of data on the
ETA 227 (Overpayment Detection and Recovery Activities) report, the SWA is expected to submit
a CAP (for BAM/Overpayment Detection, BPC/Overpayment Detection, or address ETA 227
reporting issues) to address the deficiency. (See UIPL No. 14-05, Change 1, Section 5.c.) The
performance period for the BPC component is the three-year period ending on March 31, 2026.
The performance period for the BAM component is the three-year period ending on September 30,
2025.
• Effective Audit Measure. The Effective Audit Measure, as noted in UIPL No. 03-11, is a blended
measure of the following four factors: 1) Percentage of Contributory Employers Audited Annually;
2) Percentage of Total Wages Changed as a Result of Audit; 3) Percentage of Total Wages
Audited; and 4) Average Number of Misclassifications Detected Per Audit. Each of the four
factors has a minimum standard score that SWAs are expected to meet to pass the Effective Audit
Measure as well as an overall combined score that is expected to be achieved. The measure also
instructs each SWA to direct additional emphasis to the factor(s) that state personnel deem
important. An additional two points must be earned among any of the four factors to attain the
overall passing score of at least 7.0. A CAP is expected for SWAs that do not meet the measure
based on calendar year 2025 data.
• Improper Payments Measure. The Improper Payments Measure is defined as UI overpaid plus UI
underpaid divided by the total amount of UI paid. It is based on estimates from the results of the
BAM survey of paid UI claims in the State UI, Unemployment Compensation for Federal
Employees, and Unemployment Compensation for Ex-Servicemembers programs. The Payment
Integrity Information Act (PIIA) of 2019, codified in 31 U.S.C. 3351 et seq., requires agencies to
examine the risk of erroneous payments in all programs and activities they administer. PIIA also
requires Federal programs to report an annual improper payment rate and include all identified
improper payments in the reported estimate, regardless of whether the improper payment in
question has been or is being recovered (see UIPL No. 09-13 for ETA’s approved improper
payment rate computation methodology). CAPs and IAP root causes for FY 2027 are based on
ETA’s approved computation methodology. PIIA, in 31 U.S.C. 3351(4), defines the term
“improper payment” as:
(A) …any payment that should not have been made or that was made in an incorrect amount,
including an overpayment or underpayment, under a statutory, contractual, administrative, or
other legally applicable requirement; and
Attachment III
(B) includes—(i) any payment to an ineligible claimant; (ii) any payment for an ineligible good
or service; (iii) any duplicate payment; (iv) any payment for a good or service not received,
except for those payments where authorized by law; and (v) any payment that does not
account for credit for applicable discounts.
In accordance with the PIIA, under the compliance requirements in 31 U.S.C. 3351(2), an ALP of
less than 10 percent has been established for the Improper Payments Measure. SWAs are expected
to maintain an improper payment rate of less than 10 percent for covered UI programs. This ALP
is applicable to the 2025 PIIA performance period (July 1, 2024, to June 30, 2025). A SWA failing
to meet the ALP for the 2025 PIIA performance period will be expected to develop a CAP as part
of the FY 2027 SQSP.
• UI Overpayment Recovery Measure. As explained in UIPL No. 09-13, the recovery rate is “the
amount of improper overpayments recovered divided by the amount of improper overpayments
identified.” The ALP for the recovery rate measure is 68 percent for the 2025 PIIA performance
period. The Department will compute future recovery targets based on the most recent recovery
and other performance data available.
The performance period will be based on data from the ETA 227 report, Overpayment Detection
and Recovery Activity (Regular), and ETA 227 report, Overpayment Detection and Recovery
Activity (Emergency Unemployment Compensation) (EUC), for the PIIA 2025 performance
period (July 1, 2024, to June 30, 2025). Pursuant to the UI Reports Handbook (ET Handbook No.
401, 5th edition), the June quarter ETA 227 reports are due on August 1 each year. A SWA failing
to meet the ALP for the 2025 PIIA performance period will be expected to develop a CAP as part
of the FY 2027 SQSP.
What does federal law require in your situation?
Ezel checks current federal labor law against your facts and answers with citations.
Opens in Ezel Pro.
- Checks the law as it stands today, not only this page
- Cites every source it relies on, so you can verify it
- Chat, drafting and research in one workspace