Program integrity in regular and pandemic unemployment insurance

CLASSIFICATION
   EMPLOYMENT AND TRAINING ADMINISTRATION                Unemployment Insurance
               ADVISORY SYSTEM                           CORRESPONDENCE SYMBOL
          U.S. DEPARTMENT OF LABOR                       OUI/DPM
             Washington, D.C. 20210                      DATE
                                                         May 11, 2020

ADVISORY:       UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 23-20

TO:             STATE WORKFORCE AGENCIES

FROM:           JOHN PALLASCH
                Assistant Secretary

SUBJECT:        Program Integrity for the Unemployment Insurance (UI) Program and the UI
                Programs Authorized by the Coronavirus Aid, Relief, and Economic Security
                (CARES) Act of 2020 - Federal Pandemic Unemployment Compensation
                (FPUC), Pandemic Unemployment Assistance (PUA), and Pandemic
                Emergency Unemployment Compensation (PEUC) Programs

1. Purpose. To remind states of program integrity functions required for the regular UI
   program and to provide states with guidance regarding required program integrity functions
   for the UI programs authorized by Sections 2102 (PUA), 2104 (FPUC), and 2107 (PEUC) of
   the CARES Act.
2. Action Requested. State Workforce Administrators must, and have an obligation to, provide
   the information in this Unemployment Insurance Program Letter (UIPL) to appropriate
   program and other staff in state workforce systems.

3. Summary and Background. On March 27, 2020, the President signed the CARES Act,
   which includes the Relief for Workers Affected by Coronavirus Act set forth in Title II,
   Subtitle A. The CARES Act creates new unemployment compensation (UC) programs,
   including FPUC, PUA, and PEUC, that states are administering. At the same time, the
   unemployment insurance (UI) program is experiencing the highest level of claims in the
   history of the program.

   a. Summary – This UIPL provides states with information and guidance on three topics
      related to program integrity in the regular UI program and the CARES Act programs: 1)
      conformity and compliance with federal UC laws; 2) program integrity functions for the
      regular UI program and the CARES Act programs; and 3) technical assistance resources.

   b. Background – Addressing improper payments and fraud in the UI program is a top
      priority for the U.S. Department of Labor (Department), as well as the entire UI system.
      For the last eight years, the Department’s Office of the Inspector General (OIG) has
      determined that the UI program is out of compliance with the Improper Payment
      Elimination and Recovery Act of 2010 due to an improper payment rate over 10 percent.
      While progress has been made to bring down the UI improper payment rate, the program

 RESCISSIONS                                            EXPIRATION DATE
 None                                                   Continuing

continues to be at risk for high levels of improper payments and there is more work to do.
In an ongoing effort to address the OIG’s concerns, the entire UI system, including
federal and state partners in the system, must continue to partner to promote program
integrity.

States are in the midst of managing extraordinary workloads due to the effects of the
spread of the COVID-19 virus. The UI system is facing historically high levels of claims
in the regular UI program while simultaneously implementing the newly-created
temporary programs authorized by the CARES Act (FPUC, PUA, and PEUC).
During this time, there is a heightened need for states to maintain a steadfast focus on UI
functions and activities that ensure program integrity and the prevention and detection of
improper payments and fraud across all UI programs. This means that states need to
adhere to federal laws and guidance addressing program eligibility requirements and the
fundamental established processes that ensure accurate benefit payments. States must
continue to operate their programs, both new and existing, in conformity and compliance
with federal laws and guidance.

Conversely, as states begin the process of phased reopening, we expect historically high
levels of suitable return to work opportunities. As such, states must work to maintain
program integrity by ensuring that claimants are not continuing to claim benefits when
they have been offered suitable work.

A number of states have requested relief from conformity and compliance activities to
support more expedited processing of claims. While the Department understands the
rationale behind these requests, UI mandates, such as the weekly certification process and
reviewing and processing out of state wages, remain fundamental requirements—both in
conformity and compliance—which must be adhered to, as discussed in more detail
below in Section 4(a)(i). These functions are also critical to the operations of the UI-
related CARES Act programs.

The temporary programs enacted by the CARES Act operate in tandem with the
fundamental eligibility requirements of the federal-state UI program. In addition, the
CARES Act programs have new eligibility requirements that states must apply in order to
ensure that only eligible individuals receive benefits. The UI program has longstanding
processes designed to support UI program integrity, many of them carried out by state
Benefit Payment Control (BPC) units. These program integrity processes must now also
be applied to the CARES Act programs as discussed in more detail below.

It is important to note that the CARES Act requires that the Department’s OIG oversee
the federal and state implementation of the CARES Act provisions. The CARES Act
includes an appropriation of $26 million to the OIG to carry out audits, investigations,
and other oversight activities related to states’ adherence to existing UI laws and policies,
as well as the provisions of the CARES Act. The OIG has also already identified areas of
risk for improper payments and fraud in these programs in its Pandemic Response

                                          2

          Oversight Plan1 published April 15, 2020, and Advisory Report – CARES Act: Initial
          Areas of Concern Regarding Implementation of Unemployment Insurance Provisions
          published on April 21, 2020 (Report Number: 19-20-001-03-315). In addition, the OIG
          recently initiated an audit of the self-certification process used by States to determine
          claimant eligibility for PUA, with specific focus on the actions taken by states
          participating in the PUA program to deter and detect fraud relating to self-certifications.
          The U.S. Government Accountability Office has also implemented a study of the
          “Oversight and Monitoring of DOL’s Efforts Related to Coronavirus Legislation.”

          Given the size and scope of the UI program, including the new CARES Act programs, we
          should all expect significant oversight, review, and scrutiny of state program integrity.

4. Guidance.

      a. Conformity and compliance with Federal UC laws. The Department requires that
         states maintain key eligibility determination processes for regular UC claims in order to
         be in conformity and compliance with federal UC laws. Specifically, states must
         maintain weekly certification processes to ensure continuing eligibility of UI claimants
         and must complete required checks for interstate wages. This guidance is not intended to
         be an exhaustive list of federal requirements; rather, it addresses recent state requests and
         actions in the two areas addressed below. This section also addresses how these two
         requirements impact the CARES Act UI programs.

                  i. Weekly Certification Process Required for Conformity and Substantial
                     Compliance

          The weekly certification process ensures that claimants continue to meet program
          eligibility requirements, including the requirements to be “able to work” and “available to
          work.” Although UIPL No. 10-20 describes flexibilities available to states regarding how
          individuals meet the “able to work” and “available to work” requirements in light of
          efforts to respond to the spread of COVID-19, states must continue to require weekly
          certifications by claimants. Suspension of the weekly certification process puts the state
          out of conformity and substantial compliance with federal UC law. A state’s failure to
          administer its UI program in conformity and substantial compliance with federal law can
          result in loss of the state’s certification and loss of its administrative grant to operate the
          program and/or its employers’ tax credits under the Federal Unemployment Tax Act
          (FUTA).

          Section 303(a)(1), of the Social Security Act (SSA) (42 U.S.C. §503(a)(1)) requires, as a
          condition for a state to receive administrative grants for its UI program, that state law
          provide for “such methods of administration . . . as are found by the Secretary of Labor to
          be reasonably calculated to insure full payment of unemployment compensation when
          due.” This means that states must have in place “methods of administration” to ensure
          that eligible claimants are paid UC promptly when determined eligible and to ensure that

1
    https://www.oig.dol.gov/?_ga=2.66601902.1247221550.1588334509-630625990.1574790726

                                                    3

claimants who are not eligible are not paid UC. In addition, states must have in place
methods of administration to protect against improper payments and fraud.

Claimants’ eligibility for UC is determined on a weekly basis, and claimants are required
to take certain actions to maintain that eligibility on a weekly basis. Ensuring that
claimants have completed these actions, therefore, must be documented and verified by
the state on a weekly basis. For example, section 303(a)(12) of the SSA requires that an
individual is able to work, available to work, and actively seeking work as a condition of
eligibility for regular UC for any week, though the state may temporarily waive the
requirement to actively seek work as needed to respond to COVID-19, as explained
below. Also, as a condition for employers in a state to receive a tax credit of up to 90
percent of their federal unemployment tax liability, section 3304(a)(15) of FUTA requires
the state to reduce the amount of UC payable to an individual in a given week by the
amount of any pension or retirement payment that an individual receives from a base
period employer that is attributable to such week.

Additionally, the money withdrawn from a state’s unemployment trust fund may only be
used to pay UC to claimants if they are in fact experiencing “unemployment.” See
section 303(a)(5), SSA, and section 3304(a)(4), FUTA. Likewise, the FUTA definition
of “compensation” includes only “benefits payable to individuals with respect to their
unemployment.” Section 3306(h), FUTA. One component of the weekly certification
process is for claimants to report any income earned while collecting UC. States must
use this information to ensure that claimants meet the definition of unemployment, to
confirm that each claimant continues to be eligible for UC benefits each week, and to
calculate the correct amount of partial unemployment benefits for individuals who are
working part-time while collecting benefits.

Appendix A to 20 C.F.R. Part 614 (section 5001 of the Employment Security Manual)
requires claimants to file a claim weekly or biweekly in order to claim UC for total or
part-total unemployment. Even when states allow for a biweekly reporting, the claimant
must answer the series of questions for each individual week. This process helps ensure
benefits are paid properly, prevents fraud, and allows states to identify and recoup
fraudulently obtained benefits.

Eligibility for UC is based on claimants demonstrating that they meet certain eligibility
requirements on a weekly basis. By suspending the requirement for claimants to certify
eligibility on a weekly or biweekly basis, the state is no longer able to determine whether
continuing claimants remain eligible for benefits, and so is no longer able to “insure
payment when due.” As a result, the state would be out of conformity and substantial
compliance with federal UC law. As noted above, a state’s failure to administer its UI
program in conformity and substantial compliance with federal law can result in loss of
the state’s certification and loss of its administrative grant to operate the UC program
and/or its employers’ tax credits under FUTA.

While flexibilities available to states in determining ongoing eligibility factors such as
“able to work” and “actively seeking work” were identified in UIPL No. 10-20, as the

                                          4

spread of COVID-19 virus diminishes and emergency orders are lifted, they may no
longer be appropriate and states will need to readjust how they apply and adjudicate these
eligibility requirements.

       ii. Participation in the Interstate Benefits System Must be Maintained

The process by which states check for interstate wages in order to determine UC
eligibility is a requirement under both the federal conformity and substantial compliance
standards.

Section 3304(a)(9)(B) of FUTA requires, as a condition for employers in a state to
receive up to a 90 percent tax credit against their Federal unemployment tax liability, that
the state:

        shall participate in any arrangements for the payment of compensation on
        the basis of combining an individual’s wages and employment covered
        under the State law with his wages and employment covered under the
        unemployment compensation law of other states which are approved by
        the Secretary of Labor in consultation with the State unemployment
        compensation agencies as reasonably calculated to assure the prompt and
        full payment of compensation in such situations. Any such arrangement
        shall include provisions for (i) applying the base period of a single State
        law to a claim involving the combining of an individual’s wages and
        employment covered under two or more state laws, and (ii) avoiding
        duplicate use of wages and employment by reason of such combining.

States are required to participate in arrangements for combining an individual’s wages
earned in other states. By suspending the check for out-of-state wages, a state would
violate section 3304(a)(9)(B), putting the state out of conformity and substantial
compliance with federal UC law. Again, as previously noted, a state’s failure to
administer its UI program in conformity and substantial compliance with federal law can
result in loss of the state’s certification and loss of its administrative grant to operate the
program and/or its employers’ tax credits under FUTA.

Key applications on the Interstate Connection (ICON) Network (the State Identification
(SID) Claim and Overpayment (SCO) Inquiry and the Interstate Benefits (IB) 8606)
have been enhanced to include the UI-related CARES Act programs’ claim types (as
well as other regular UI claim types) for easier identification of initial claims filed, as
well as type of overpaid claims for recovery. The Department strongly encourages
states to access and use these enhancements for program integrity purposes.

       iii. Temporary Nature of Changes to Eligibility Requirements

On March 18, 2020, the President signed the Families First Coronavirus Response Act,
which includes the Emergency Unemployment Insurance Stabilization and Access Act of
2020 (EUISAA) set out at Division D. Section 4102(b) of EUISAA states:

                                           5

       Notwithstanding any other law, if a State modifies its unemployment
       compensation law and policies with respect to work search, waiting week,
       good cause, or employer experience rating on an emergency temporary
       basis as needed to respond to the spread of COVID-19, such modifications
       shall be disregarded for the purposes of applying section 303 of the [SSA]
       and section 3304 of [FUTA] to such state law.

This provision allows emergency temporary flexibility as needed to respond to the spread
of COVID-19 for the specified UC requirements, and is further discussed in UIPL No.
13-20, issued on March 22, 2020. While implementing these flexibilities, states must be
mindful of the temporary duration of the flexibilities.

Unlike the requirement to actively search for work, the EUISAA emergency temporary
flexibility provision does not apply to the “able to work” and “available to work”
provisions of Section 303(a)(12) of the SSA. UIPL No. 10-20 details existing state
flexibilities regarding how individuals meet the “able to work” and “available to work”
requirements in light of efforts to mitigate the spread of COVID-19. However,
EUISAA’s temporary flexibility does not allow for even temporary departure from the
application of these provisions. Thus, a temporary suspension of the weekly certification
process, including the “able to work” and “available to work” provisions, for any amount
of time runs afoul of the SSA Section 303(b) requirement that states receiving payments
“comply substantially” with the relevant provisions of the Act in administering their
laws. As already noted, a state’s failure to apply these conditions of UC eligibility puts
the state out of conformity and substantial compliance with federal UC law.

      iv. Relationship with the CARES Act Programs

Conducting the weekly certification process and checking for wages in other states are
requirements necessary to determine whether an individual satisfies the eligibility
requirements for PEUC or PUA.

Among the other eligibility conditions for PEUC, the claimant must “have no rights to
regular UC with respect to a week under such law or any other State unemployment
compensation law or to compensation under any other federal law,” and be “able to work,
available to work, and actively seeking work.” See Sections 2107(a)(2)(B) and (a)(2)(D)
of the CARES Act. Confirming that these requirements are met requires weekly
certification, including that no change has occurred in the PEUC claimant’s eligibility for
regular UC on a weekly basis. In addition, the Implementing and Operating Instructions
for the PEUC Program, Attachment I of UIPL No. 17-20, at section D.5.b (page I-10),
provide that weekly certifications for PEUC are required: “the state agency must
promptly, upon the filing of a claim for payment of PEUC for a week of unemployment,
determine whether the individual is entitled to a payment of PEUC for such week . . . .”

Among the eligibility criteria for PUA in section 2102(a)(3)(A)(i) of the CARES Act,
there is a requirement that an individual is “not eligible for regular compensation or

                                         6

extended benefits under State or federal law…” Eligibility for regular UC, as explained
above, is based on requirements that claimants must meet on a weekly basis. Similarly,
section 2102(b) of the CARES Act permits states to pay PUA to covered individuals who
are “unemployed, partially unemployed, or unable to work for the weeks of such
unemployment with respect to which the individual is not entitled to any other
unemployment compensation...” Determining whether an individual is not entitled to any
other UC for a week requires states to confirm whether the individual has met the
requirements to receive UC for that week. The PUA Implementing and Operating
Instructions, set out at Attachment I of UIPL No. 16-20, at section C.13.b (page I-11)
require weekly certifications for PUA. It states that “[t]he state agency must promptly,
upon the filing of a claim for a payment of PUA for a week of unemployment, determine
whether the individual is entitled to a payment of PUA for such week . . . .” We note that
in determining whether an individual is ineligible for regular unemployment benefits as a
condition to receive PUA, states are not required to fully process and adjudicate a claim
for each week of PUA benefits. However, states must have a weekly certification process
for claimants to self-certify that they meet one of the COVID-19 related reasons and
states must check quarterly to confirm an individual is ineligible for regular
unemployment benefits.

In addition, it is important to note that the eligibility requirements for PUA are temporary
in nature and will expire at the end of 2020, and states must continue to message to
claimants that their self-certification of their lack of work as a result of COVID-19
reasons is under penalty of perjury.

The additional $600 payment offered through the FPUC program under section 2104 of
the CARES Act is also contingent on an individual being eligible for one of a list of
unemployment benefit programs. Each of these benefit programs requires the individual
to be eligible on a weekly basis. Therefore, if a state suspends weekly certifications, it
will not be able to properly determine if an individual is eligible for FPUC.

The CARES Act only allows the Secretary to provide the assistance in section 2102
“through agreements with States which … have an adequate system for administering
such assistance through existing State agencies.” See Sec. 2102(f)(1), CARES Act.
Failure to determine eligibility of claimants prior to paying benefits suggests that the
state’s system is not adequate. Similarly, the “Agreement Implementing the Relief for
Workers Affected by Coronavirus Act” executed between the state and the Secretary of
Labor provides that the state’s workforce agency “will make payments of benefits in
accordance with the provisions of the Act.”

If the Department were to determine that the state does not have an adequate system for
administering these programs, it would be obligated to terminate its agreement with the
state to administer the PUA program under section 2102 of the CARES Act. The
Department would have authority to terminate its agreements pursuant to the terms of the
agreements for operating PEUC, PUA, and FPUC, based upon the state’s failure to
adequately ensure that individuals receiving benefits are eligible for such benefits.

                                         7

b. Program integrity functions for the regular UI programs and CARES Act
   programs.

   While states have been provided with some flexibility in the short term to stop sampling
   under the Benefit Accuracy Measurement (BAM) program, it will be critical for states to
   resume BAM audits at the earliest possible time. BAM is a mission critical audit
   function that provides states with valuable information on the quality and accuracy of
   their regular UI program functions and it supports estimation the UI improper payment
   rate.

   The essential functions performed by Benefit Payment Control (BPC) units or other
   designated staff must be performed for all UI programs, including PEUC and PUA.

   Section 7511, Part V, of the Employment Security Manual (ESM) requires state
   unemployment compensation (UC) laws to include provisions for such methods
   of administration as are, within reason, calculated (1) to detect benefits paid
   through error by the state UC agency or through willful misrepresentation or error
   by the claimant or others, (2) to deter claimants from obtaining benefits through
   willful misrepresentation, and (3) to recover benefits overpaid under certain
   circumstances.

   These required functions are accomplished through state agency BPC units or other
   designated staff responsible for promoting and maintaining the integrity of the UI
   program through prevention, detection, investigations, establishment, and recovery of
   overpayments. BPC units or designated staff also prepare cases for prosecution.

   The following BPC activities are mandatory for states to implement for the regular UI
   programs on an ongoing basis. States must implement these functions for the PEUC and
   PUA programs in the same manner as for the regular UI programs.

         National Directory of New Hires Cross-match (UIPL Nos. 13-19 and 19-11).
          UIPL 13-19 provides detailed, recommended operating procedures for cross-
          matching with state and national directories of new hire data;
         Quarterly Wage Records Cross-match (20 CFR § 603.23); and
         Systematic Alien Verification for Entitlement (SAVE) (Section 1137(d) of the
          Social Security Act (SSA) (42 U.S.C. §1320b-7).

   The Department strongly recommends the following additional BPC activities as part of a
   state’s effective BPC operation for the regular UI programs, PUA, and PEUC:

         State Directory of New Hires Cross-match;
         Social Security Administration (SSA) Cross-match;
         Interstate Benefits (IB) Cross-match;
         State Identification Inquiry (SID) and IB8606 enhancements made to the
          Interstate Connection (ICON) network cross match to prevent concurrent claim
          filing in multiple states;

                                           8

       State Information Data Exchange System (SIDES) (Training and Employment
        Notice No. 12-16);
       Identity Verification;
       Incarceration Cross-match; and
       UI Integrity Center’s Integrity Data Hub (IDH) tools including the Suspicious
        Actor Repository (SAR), Suspicious E-Mail Domains, Multi-State Cross-Match
        (MSCM), Foreign Internet Protocol (IP) Address Detection, and Fraud Alert
        application.

States are strongly encouraged to use the various exchange formats available through the
SIDES to request and receive information from employers and third party administrators.
SIDES ensures that data exchanges are complete and that valid information is received in
an established consistent format. When fully implemented by states, SIDES Web
Services and SIDES E-Response improve the timeliness and quality of the job separation
and earnings verification information necessary to adjudicate monetary and non-
monetary determinations, thereby improving improper payment rates.

The IDH is a secure, robust, centralized, multi-state data system that allows participating
State UI agencies to submit claims for cross-matching, provides fraud alerts to states, and
supports data analytics on multi-state claims. The following IDH functionality is
currently available to participating states:

   SAR allows states to match UI claims against other states’ known suspicious claims
    data. This tool allows each State to benefit from the investigative work of all States
    as claims data associated with known or probable UI fraud is submitted and stored in
    the SAR for cross-matching purposes.

   Suspicious E-Mail Domains allows participating states to cross-match their claims
    against a database of suspicious E-mail domains that have been associated with
    fraudulent activity (ex. Yopmail). The IDH flags claims with these domains for
    further investigation by the submitting State.

   MSCM allows the IDH to collect and store claims data submitted by states creating a
    multi-State database of UI claims data. Using this database, the IDH is able to
    identify where UI claims data is being used across multiple states (ex. flagging a
    Social Security Number that is being used across four different states). The MSCM
    capability also provides a lookback capability to identify after-the-fact matches based
    on new claims or fraud activity data submitted to the IDH.

   Fraud Alerting Capability allows states to share information through the secure
    IDH environment on emergent fraud schemes/activity identified in their states. The
    capability allows participating states to review information on emergent fraud
    schemes and to receive updates to improve awareness across the community. The
    IDH Fraud Alerting capability is being made available to all states independent of the
    state participating in other IDH functionality.

                                         9

          Foreign IP Address Detection: The IDH integrated with an open-source service that
           provides a continuously updated list of Foreign (non-US) based IP addresses. The
           IDH now allows states to cross-match claims against this service to detect claims with
           non-US based IP addresses. This service is particularly valuable for states who do
           not currently have access to a Foreign IP detection tool.

       Additionally, BPC units or designated staff must complete the same recovery activities
       that are normally performed for regular UI programs, when managing overpaid claims
       under the FPUC, PEUC, and PUA programs. Overpayment recovery activities are an
       essential function of the BPC unit or designated staff. The following overpayment
       recovery activities are mandatory:

              Benefit Offsets (Title II, Subtitle A of the Middle Class Tax Relief and Job
               Creation Act of 2012, UIPL No. 05-13);2
              Treasury Offset Program (TOP) (Bipartisan Budget Act of 2013, UIPL Nos. 02-
               19 and 12-14);
              Cross Program Offset Recovery Agreement (CPORA) (UIPL No. 05-13); and
              Interstate Reciprocal Offset Recovery Arrangement (IPORA) (UIPL No. 05-13).

       The Department strongly recommends the following additional overpayment recovery
       activities, where allowed by law, as part of an effective BPC operation for the regular UI
       programs, FPUC, PUA, and PEUC:

              State Income Tax Offset Program;
              Wage Garnishments;
              Civil Actions;
              Property Liens;
              Collection Agency Referrals;
              Credit Bureau Referrals; and
              Other recovery methods as determined by state law or policy.

       As noted above, key applications on the Interstate Connection (ICON) Network (the State
       Identification (SID) SCO Inquiry and the Interstate Benefits (IB) 8606) have been
       enhanced to include the CARES Act programs’ claim types (as well as other regular UI
       claim types) for easier identification of initial claims filed, as well as type of overpaid
       claims for recovery. The Department strongly encourages states to access and use these
       enhancements for program integrity purposes.

       Additionally, as with regular UC, states must perform other recovery activities such as
       negotiating repayment plans with claimants, accepting repayments through various
       methods, and working with and referring cases to the OIG, as part of FPUC, PEUC, and
       PUA recovery activities.

2
 Note that benefit offsets from PEUC, PUA, and FPUC payments are limited to no more than 50
percent. See UIPL Nos. 15-20, 16-20, and 17-20.
                                               10

   To support states in identifying claimants that have turned down suitable work, states are
   strongly encouraged to request employers to provide information when workers refuse to
   return to their jobs for reasons that do not support their continued eligibility for benefits.
   We also strongly encourage states to remind employers and the public about the claimant
   and employer fraud resources within each state.

c. Technical assistance resources.

   To support program integrity efforts for the full array of UI programs, including the
   CARES Act programs, states are strongly encouraged to access the technical assistance,
   tools and resources available through the UI Integrity Center at
   https://integrity.naswa.org/ and the UI Community of Practice on the Department’s
   knowledge sharing site, WorkforceGPS at
   https://www.workforcegps.org/login?returnUrl=https://ui.workforcegps.org/&siteFor=ui.

   The UI Integrity Center, established by the Department and operated by the National
   Association of State Workforce Agencies, is designed to assist states in their efforts to
   more effectively prevent, detect, and recover improper and fraudulent payments, and
   improve program integrity by developing and promoting innovative program strategies.
   Working with states and a broad array of partners, the UI Integrity Center:

         Identifies, organizes, shares, and supports promising and innovative integrity
          practices;
         Builds sustainable, adaptable, and credible tools, services, and analytical
          resources;
         Provides state-specific consulting, mentoring, and technical assistance; and
         Develops and facilitates relevant, state-centered training.

   Among the most valuable assets provided by the UI Integrity Center include the
   following:
        IDH: The tools available through the IDH are described above. The IDH is
          rapidly expanding its data sets including the addition of an identity verification
          (IDV) dataset that is available resource for all states.
        National Integrity Academy (NIA): The NIA currently offers 120 eLearning
          lessons and modules for the four Academy certificate programs - UI Operations
          Integrity Certificate; UI Tax Integrity Certificate, UI Fraud Investigations; and UI
          Program Leadership that are available
        Knowledge Exchange: The Knowledge Exchange has become an increasingly
          valuable tool as it captures information on state practices and makes
          recommendations to states. Through the Knowledge Exchange, the Center has
          been able to document specific practices, create model operational blueprints, and
          effortlessly share that information with all states. Nearly 2,000 resource
          documents are currently available on the knowledge exchange, including 93
          documented successful integrity practices that support the Model BPC Blueprint.

                                             11

       In the context of the COVID-19 crisis, the UI Integrity Center has turned its attention to
       help states focus on integrity activities to prevent and detect improper payments and
       fraud in the CARES Act programs, in addition to the regular UI program. States are
       strongly encouraged to engage with the UI Integrity Center and to utilize its important
       integrity resources.

       Finally, states are reminded that key applications on the Interstate Connection (ICON)
       Network (the State Identification (SID) SCO Inquiry and the Interstate Benefits (IB)
       8606) have been enhanced to include the UI-related CARES Act programs’ claim types
       (as well as other regular UI claim types) for easier identification of initial claims filed, as
       well as type of overpaid claims for recovery. The Department strongly encourages states
       to access and use these enhancements for program integrity purposes.

5. Inquiries. Please direct inquiries to the appropriate ETA Regional Office.

6. References.
       Coronavirus Aid, Relief, and Economic Security (CARES) Act (Pub. L. 116-136),
         Title II, Subtitle A – Relief for Workers Affected by Coronavirus Act;
       Families First Coronavirus Response Act (Pub. L. 116-127)
       Division DEmergency Unemployment Insurance Stabilization and Access Act of
         2020;
       Payment Integrity Information Act of 2019 (Pub. L. 116-117);
       Improper Payments Information Act of 2002 (Pub. L. 107-300);
       Improper Payments Elimination and Recovery Act of 2010, Pub. L. 111-204;
       Sections 3304 and 3306 of the Federal Unemployment Tax Act (FUTA), 26 U.S.C. §
         3304;
       Sections 303 and 1137(d) of the Social Security Act (SSA), 42 U.S.C. § 504 &
         1320b-7;
       Appendix A, 20 C.F.R. Part 614, Standard for Claim Filing, Claimant Reporting, Job
         Finding, And Employment Services;
       20 C.F.R. § 603.23;
       UIPL No. 10-20, Unemployment Compensation (UC) for Individuals Affected by the
         Coronavirus Disease 2019 (COVID-19), issued March 12, 2020,
         https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=8893;
       UIPL No. 13-20, Families First Coronavirus Response Act, Division D Emergency
         Unemployment Insurance Stabilization and Access Act of 2020 (EUISAA), issued
         March 22, 2020, https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=8634;
       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;
       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;

                                                 12

   UIPL No. 16-20, Coronavirus Aid, Relief, and Economic Security (CARES) Act of
    2020 – Pandemic Unemployment Assistance (PUA) Program Operating, Financial,
    and Reporting Instructions, issued April 5, 2020,
    https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=4628;
   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. 17-20, Coronavirus Aid, Relief, and Economic Security (CARES) Act of
    2020 – Pandemic Emergency Unemployment Compensation (PEUC) Program
    Operating, Financial, and Reporting Instructions, issued April 10, 2020,
    https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=8452;
   UIPL No. 18-20, Coronavirus Aid, Relief, and Economic Security (CARES) Act of
    2020 – Emergency Unemployment Relief for State and Local Governmental Entities,
    Certain Nonprofit Organizations, and Federally-Recognized Indian Tribes, issued
    April 27, 2020, https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=5893;
   UIPL No. 13-19, National Directory of New Hires (NDNH) and State Directory of
    New Hires (SDNH) Guidance and Best Practices, issued June 7, 2019,
    https://wdr.doleta.gov/directives/corr_doc.cfm?docn=5373;
   UIPL No. 02-19, Recovery of Certain Unemployment Compensation Debts under the
    Treasury Offset Program, issued December 12, 2018,
    https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=8457;
   Training and Employment Notice 12-16, Unemployment Insurance (UI) State
    Information Data Exchange System (SIDES), issued September 27, 2016,
    https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=8026;
   UIPL No. 12-14, Required Use of the Treasury Offset Program to Collect Covered
    Unemployment Compensation Debt, issued May 20, 2014,
    https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=9344;
   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,
    https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=3698;
   UIPL No. 19-11, National Effort to Reduce Improper Payments in the Unemployment
    Insurance (UI) Program, issued June 10, 2011,
    https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=3036.

                                     13