2013 shutdown claims and administrative funding questions

CLASSIFICATION
   EMPLOYMENT AND TRAINING ADMINISTRATION                Unemployment Insurance
               ADVISORY SYSTEM                           CORRESPONDENCE SYMBOL
          U.S. DEPARTMENT OF LABOR                       OUI/DUIO
             Washington, D.C. 20210                      DATE
                                                         November 22, 2013



ADVISORY:         UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 31-13,
                  Change 2

TO:               STATE WORKFORCE AGENCIES

FROM:             ERIC M. SELEZNOW /s/
                  Acting Assistant Secretary

SUBJECT:          Impacts of the Federal Government Shutdown and Unemployment
                  Compensation for Federal Employees (UCFE) and State Administrative
                  Funding for State Unemployment Insurance (UI) Programs

1. Purpose. To respond to further questions from state workforce agencies and to provide
   guidance related to claims filed by furloughed workers during the October 1-16, 2013, Federal
   government lapse in appropriations, or “shutdown,” and administrative funding for the
   program pursuant to the Continuing Appropriations Act, 2014.

2. References.
   • Continuing Appropriations Act, 2014, Public Law (Pub. L.) No. 113-46 (Act), Sections
       115 and 116;
   • Code of Federal Regulations, Title 20, Part 609;
   • UCFE Handbook No. 391 for State Agencies; and
   • Unemployment Insurance Program Letter (UIPL) No. 31-13 and its Change 1.

3. Background. During the recent Federal government shutdown, hundreds of thousands of
   Federal workers were placed on “furlough” status. UIPL No. 31-13 advised state workforce
   agencies that the U.S. Department of Labor (Department) considered Federal workers who
   were placed on “furlough” status during the shutdown, during which time they were not
   allowed to perform their Federal services, to be unemployed. Effective October 17, 2013, the
   Act appropriated fiscal year 2014 funds through January 15, 2014, to allow government
   operations to resume, end furloughs due to the lapse in funding, and fully compensate the
   furloughed Federal employees. UIPL No. 31-13, Change 1, advised state workforce agencies
   that the Department now considers that these Federal employees are not eligible for UCFE for
   the shutdown period because they no longer may be considered unemployed based on their
   compensation under section 115 of the Act.

4. Action Requested. State Administrators must provide this information to appropriate staff.



 RESCISSIONS                                             EXPIRATION DATE
 None                                                    Continuing

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

6. Attachment. Questions and Answers: End of Federal Government Shutdown 2013




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Attachment 1 (official PDF: https://www.dol.gov/sites/dolgov/files/ETA/advisories/UIPL/2013/UIPL_31_13_Chg2_Acc_Attachment.pdf)

ATTACHMENT

                                 Questions and Answers:
                        End of Federal Government Shutdown 2013

A. UCFE Overpayments

    1. Question: May states waive UCFE overpayments caused by the compensation
      (reimbursement) that furloughed employees will receive for the period of time that they
      were furloughed?

      Answer: There are no special UCFE provisions that would allow for a waiver of UCFE
      overpayments caused by the compensation of furloughed Federal employees during the
      shutdown. Therefore, states must apply to UCFE overpayments the same waiver
      treatment they would apply to other UC overpayments.

    2. Question: May states require Federal agencies to recover benefit overpayments from the
      furloughed Federal employees?

      Answer: As explained in UIPL No. 31-13, Question and Answer E, if the state law
      provides for the employer to recover overpayments after providing claimants the
      opportunity for appeal and voluntary reimbursement, the state must notify and coordinate
      with each Federal agency employer to recover the overpayments. ETA Handbook No.
      391, page V-5, describes this process.

B. Benefit Accuracy Measurement, Non-Monetary Determination Count, and Benefits
   Timeliness and Quality (BTQ)

    1. Question: What is the effect of UCFE payments to furloughed employees on the Benefit
      Accuracy Measurement (BAM) sample when determining the accuracy of paid and
      denied claims?

      Answer: Once the state agency issues any UCFE payment (to furloughed workers or
      workers separated for other reasons), there is a potential that the payment may be selected
      for the BAM sample, in accordance with ETA Handbook 395, 5th Edition. If sampled,
      state agency BAM units should treat these UCFE payments as normal BAM cases, and
      evaluate them based on all applicable eligibility criteria, even when the claimants
      returned the payments.

      State BAM units should take into consideration that state agencies made UFCE payments
      based on all the facts of the status of furloughed Federal employees that existed at the
      time the payments were issued. Therefore, a legislative change that occurred after the
      payments were issued should not, in and of itself, constitute an improper payment for
      BAM purposes.

    2. Question: May states take a workload count on Form ETA 207, as described in

      Handbook No. 401 (4/2007), page 1-4-3, for non-monetary determinations regarding the
      “unemployment” status of furloughed Federal workers?

      Answer: Yes. States may take a workload count. ET Handbook No. 401 advises states
      that a non-monetary determination may be counted when there is a question about
      whether for a particular week: a) the claimant’s activities or status constitutes “service”
      or “employment,” or b) the claimant earns “wages” or receives “remuneration,” resulting
      in ineligibility as “not unemployed,” or only partially unemployed. In UIPL No. 31-13,
      Change 1, the Department explained its position that these individuals were not
      considered to have been totally, part-totally, or partially unemployed during the Federal
      government shutdown. The Department’s position is based on its interpretation of the
      Continuing Appropriations Act, 2014 (Pub. L. 113-46), which provided compensation for
      Federal employees furloughed during the shutdown. However, because of the unique
      situation created by the shutdown, which resulted in the issuance of UIPL No. 31-13,
      Change 1, states should exclude these non-monetary determinations from the BTQ
      sample.

C. Claim Cancellation/Withdrawal

    1. Question: May states offer claimants the opportunity to withdraw their claim(s) in order
      to avoid an overpayment(s); for example, on claims that have not yet been established
      (e.g., claims for which states have not issued a monetary determination)?

      Answer: Yes, the state may allow claimants the opportunity to withdraw claims that have
      not yet been established if: (1) the claimants request that their applications be withdrawn;
      and (2) such withdrawal is not prohibited under the state law.

    2. Question: May states cancel claims that have already been established (i.e., claims for
      which states have issued a monetary determination) but for which they have not issued
      payment(s)?

      Answer: States may take appropriate action in accordance with their state law on the
      cancellation of any UCFE claims. Cancellation of a claim may be initiated only by the
      claimant. Many states have posted information on the state website(s) about the process
      employees will need to follow to withdraw or cancel their claim.




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