Unemployment coverage for Public Health Service officers

CLASSIFICATION
   EMPLOYMENT AND TRAINING ADMINISTRATION                  Unemployment Insurance
               ADVISORY SYSTEM                             CORRESPONDENCE SYMBOL
          U.S. DEPARTMENT OF LABOR                         OUI/DUIO
             Washington, D.C. 20210                        DATE
                                                           June 25, 2014


ADVISORY:          UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 16-14

TO:                STATE WORKFORCE AGENCIES

FROM:              PORTIA WU /s/
                   Assistant Secretary

SUBJECT:           Unemployment Compensation for Employees of the United States Public
                   Health Service Commissioned Corps (PHSCC)

1. Purpose. To ensure that states are aware that PHSCC employees are covered under the
   Unemployment Compensation for Federal Employees (UCFE) program.

2. References.
    • Public Health Service Act, Pub. L. 78-410, 42 U.S.C. Chapter 6A;
    • 20 CFR Part 609, Unemployment Compensation for Federal Civilian Employees;
    • 20 CFR Part 614, Unemployment Compensation for Ex-Servicemembers; and
    • ET Handbook No. 391, Unemployment Compensation for Federal Employees
       Instructions for State Agencies for State Agencies, Chapter II, section 2, subsection d.

3. Background. The U.S. Department of Labor has received several inquiries from state
   unemployment compensation (UC) agencies about whether PHSCC employees are covered
   under the UCFE program or the Unemployment Compensation for Ex-Servicemembers
   (UCX) program. The UCFE program provides benefits for eligible unemployed former
   civilian Federal employees. The UCX program provides benefits for eligible ex-military
   personnel and also former members of the National Oceanographic and Atmospheric
   Administration Commissioned Corps. Both programs are administered by the states acting as
   agents of the Federal government. The UCFE and UCX programs are generally operated
   under the same terms and conditions that apply to regular state UC programs. There is no
   payroll deduction from a Federal employee's wages for either UCFE or UCX. Benefits are
   charged to the appropriate Federal agency or branch of service.

  The United States Public Health Service Commissioned Corps

  The PHSCC was originally established in the Department of the Treasury as the Marine
  Hospital Service in 1798, authorizing marine hospitals for the care of American merchant
  seamen. It was renamed the Public Health and Marine Hospital Service in 1902 to reflect
  enhanced public health responsibilities in areas of research, disease prevention and education.
  In 1912, it was renamed again as the United States Public Health Service, which is its current
  designation. The Public Health Service Act was amended to state that the President might

 RESCISSIONS                                               EXPIRATION DATE
 None                                                      Continuing

  declare the PHSCC to be a military service not only in a time of threatened or actual war, but
  also in “an emergency involving the national defense proclaimed by the President.” See 42
  U.S.C. 217.

  Since 1979, the PHSCC has been under the direction of the U.S. Surgeon General within the
  U.S. Department of Health and Human Services (HHS), a Federal agency. The PHSCC is a
  uniformed service whose commissioned officers are in the employ of HHS and may be
  assigned to other Federal agencies. Although some military benefits are available to
  commissioned officers of PHSCC, they are not defined as a “Federal military service.” The
  definition of “Federal military service” for UCX purposes is found at 20 CFR 614.2(g); this
  definition does not include commissioned officers of the PHSCC.

  Federal Civilian Service for UCFE Purposes

  The definition of “Federal civilian service” is found at 20 CFR 609.2(f). This definition
  includes certain exceptions to “service performed in the employ of any Federal agency”;
  however, these exceptions do not apply to commissioned officers of the PHSCC. Therefore,
  the service of commissioned officers of the PHSCC falls under the definition of Federal
  civilian service for UCFE purposes. The requirement for assignment of Federal civilian
  service and Federal wages are found at 20 CFR 609.8(b). Federal civilian service and Federal
  wages used to establish a UCFE benefit year are assigned to the state in which the individual
  had his or her last “official station” (as defined in 20 CFR 609.2(k)) before filing a first claim.
  Therefore, for UCFE purposes, the state in which the last official duty station in Federal
  civilian service was performed by commissioned officers of the PHSCC will be the state that
  determines their eligibility for benefits under the state UC law.

4. UCFE Program Guidance Related to PHSCC Federal Service. Commissioned officers of
   the PHSCC are covered under the UCFE program. All their Federal civilian service and
   wages must be assigned in accordance with the interpretation of 20 CFR 609.8(b) and as
   outlined in ET Handbook 391 Chapter II, Section 2, subsection d.

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

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




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