JTPA training and UI eligibility clarification

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| U.S. DEPARTMENT OF LABOR | CLASSIFICATION |
| Employment and Training Administration | |
| Washington, D. C. 20210 | UI |
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| | CORRESPONDENCE SYMBOL |
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| | TEURL |
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| | ISSUE DATE |
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| | December 27, 1984 |
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| RESCISSIONS | EXPIRATION DATE |
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| | September 30, 1986 |
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| DIRECTIVE | : | UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 32-83, Change 1 |
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| TO | : | ALL STATE EMPLOYMENT SECURITY AGENCIES |
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| FROM | : | BERT LEWIS |
| | | Administrator |
| | | for Regional Management |
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| SUBJECT | : | Clarification of Interpretation of Section 302(d) of the Job Training Partnership Act (JTPA) |
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1. Purpose. To respond to questions concerning the interpretation of Section 302(d), (second sentence), JTPA, in relation to the requirements of Section 3304(a)(8), Federal Unemployment Tax Act (FUTA), as stated in UIPL 32-83.

2. References. Section 302(d), JTPA; Section 3304(a)(8), FUTA; and UIPL 32-83.

3. Background. UIPL 32-83 provided an interpretation of the requirement of the second sentence of Section 302(d), JTPA, relating to the payment of unemployment benefits to those accepting training under Title III of the JTPA. Questions have arisen as to whether the interpretation can be construed to mean that individuals who are or who become ineligible for unemployment benefits (for example, have exhausted all benefit rights) should be eligible again because of enrollment in JTPA training.

4. Response. The second sentence of Section 302(d), JTPA, provides:

   The acceptance of training for such opportunities shall be deemed to be acceptance of training with the approval of the State within the meaning of any other provision of Federal law relating to unemployment benefits.

   Section 3304(a)(8), FUTA, requires State unemployment compensation law to provide that:

   Compensation shall not be denied to an individual for any week because he is in training with the approval of the State agency (or because of the application, to any such week of training, of State law provisions relating to availability for work, active search for Work, or refusal to accept work).

   Section 3304(a)(8), FUTA, constitutes an "other provision of Federal law relating to unemployment benefits" within the meaning of section 302(d), JTPA. Therefore, if an individual is accepted for training under Title III of the JTPA, that person is deemed to have been accepted for training with the approval of the State within the meaning of section 3304(a)(8), FUTA.

   However, neither JTPA nor Section 3304(a)(8), FUTA, require that individuals who are ineligible for unemployment benefits must be paid benefits upon enrollment in approved training. For example, Section 302, JTPA, permits individuals who have exhausted benefits to participate in training programs. These individuals remain ineligible for regular unemployment compensation because of State law regarding exhaustion of benefits, despite acceptance of JTPA training. Of course, individuals must satisfy other basic State law requirements for eligibility, such as establishing sufficient qualifying wages or showing good cause for voluntarily leaving employment. These requirements are not waived by any provision of FUTA or JTPA.

   In conclusion, although the State agency is precluded from denying benefits to an individual for the reasons listed in Section 3304(a)(8), FUTA, a State agency must apply other provisions of State law regarding eligibility and disqualification.

5. Action Required. Administrators are requested to review their laws to assure that none were enacted or are being interpreted to permit the payment of benefits to individuals enrolled in JPTA training who do not meet the eligibility requirements of the State UI law.

6. Inquiries. Direct questions to the appropriate regional office.