Unemployment Insurance

Increasing the ability of individuals to maintain consistent financial security to meet current and future financial obligations.

To implement and oversee unemployment insurance programs for eligible workers through federal and state cooperation; including unemployment compensation for federal employees or ex-service members, Disaster Unemployment Assistance, and to assist in the oversight of Trade Adjustment Assistance and Alternative Trade Adjustment Assistance, Reemployment Trade Adjustment Assistance programs, and temporary UI programs enacted in times of economic shocks or downturns.

U.S. Territories and possessions, state workforce agencies, including those in the District of Columbia, Puerto Rico and Virgin Islands. The Workforce Innovation and Opportunity Act (WIOA) (Pub. L. 113-128) was passed on July 22, 2014. It supersedes titles I and II of the Workforce Investment Act of 1998, and amends the Wagner-Peyser Act and the Rehabilitation Act of 1973. The law went into effect on July 1, 2015. Also, unless otherwise stipulated, recipients are subject to Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards; Final Rule on December 26, 2013, and found at 2 CFR Part 200 along with the OMB approved exceptions for DOL at 2 CFR Part 2900 published on December 19, 2014, in the Federal Register.

All workers whose wages are subject to state unemployment insurance laws, federal civilian employees, ex-service members, and workers whose unemployment is caused by a presidentially declared disaster under the Robert T. Stafford Disaster Relief and Emergency Assistance Act or pandemic under the Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020, as amended, are eligible if they meet the qualification and eligibility requirements of the relevant unemployment compensation program. For regular unemployment compensation (UC), UCFE, UCX, EB, and PEUC claims this generally means that the individual is involuntarily unemployed, able to work, available for work, meets the eligibility and qualifying requirements of the state law, and are free from disqualifications. For PUA claims, the individual must self-certify that they are otherwise able to work and available for work within the meaning of applicable state law except that they are unemployed, partially unemployed, or unable or unavailable to work for COVID-19 related reason(s) identified in Section 2102 of the CARES Act and Department guidance. Some states provide Short Time Compensation or Self Employment Assistance for eligible individuals. Workers who became unemployed or underemployed because of the adverse effect of increased imports or because of shifts in production outside the U.S. may be eligible for Trade Readjustment Allowance, Alternative Trade Adjustment Assistance or Reemployment Adjustment Assistance and other types of Trade Adjustment Assistance (see program 57.001). Individual state information on eligibility requirements is available from local American Job Centers or at https://www.careeronestop.org/LocalHelp/service-locator.aspx. Temporary UI programs may target other categories of workers.

The states have the direct responsibility for establishing and operating its own unemployment insurance programs, while the federal government finances the cost of administration. State unemployment insurance tax collections are used solely for the payment of benefits. Federal unemployment insurance tax collections are used to finance expenses deemed necessary for proper and efficient administration of the state unemployment insurance laws; to reimburse state funds for one-half the costs of extended benefits paid under the provisions of state laws which conform to the provisions of the Social Security Act and the Federal Unemployment Tax Act; and to make repayable advances to states when needed to pay benefit costs. Funds used for benefit payments may not be used for any program administration costs nor for training, job search, and job relocation payments. Disaster Unemployment Assistance (DUA) is paid out of funds provided by the Federal Emergency Management Agency (FEMA); and Pandemic Unemployment Assistance (PUA), Federal Pandemic Unemployment Compensation (FPUC), Pandemic Emergency Unemployment Compensation (PEUC) , and Mixed Earners Unemployment Compensation (MEUC) are paid from funds provided by the Federal government. Benefits for former Federal civilian employees, including postal workers, and former members of the Armed Forces are paid out of the Federal Employees Compensation Account (FECA) in the Unemployment Trust Fund, subject to reimbursement by the former employing agency. Trade Adjustment Assistance payments are made by states for workers adversely affected by trade imports or shifts in production.

Annual grants for base operation of programs are based on workload projections pursuant to economic assumptions and nationally developed workload estimates. Additional quarterly funding is based on actual workloads. Financing of administrative costs is accomplished through letter of credit draw downs needed to meet immediate cash requirements.

The Employment and Training Administration (ETA) requires states to submit a State Quality Service Plan (SQSP) to the appropriate ETA regional office in order to apply for grants. Grants are based on target performance levels, pursuant to nationally-developed workload estimates. The SQSP should be constructed in terms of selected workloads to be undertaken, and the resources and numbers of employees needed to accomplish them.

The Regional Administrator for ETA issues a preliminary approval for a state within the dollar target provided by the ETA national office, based on the SQSP submitted.

At the national office level 30 to 60 days. Approximately 45 days at the regional office level.

Contact federal agency. A hearing is required if state law is not certified to be in conformity. Funding is based on workload formula.