Implementation of Interstate Arrangement for Combining Employment and Wages; New Definition of Paying State for Combined-Wage Claims, 5682-5686 [E9-2000]

Agencies

• Employment and Training Administration
• DEPARTMENT OF LABOR

[Federal Register Volume 74, Number 19 (Friday, January 30, 2009)]
[Notices]
[Pages 5682-5686]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-2000]


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DEPARTMENT OF LABOR

Employment and Training Administration


 Implementation of Interstate Arrangement for Combining 
Employment and Wages; New Definition of Paying State for Combined-Wage 
Claims

AGENCY: Employment and Training Administration, Labor.

ACTION: Notice.

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SUMMARY: The Employment and Training Administration (ETA) of the United 
States Department of Labor (the Department) is publishing, for public 
information, notice of the issuance and availability of the 
Unemployment Insurance Program Letter (UIPL) that provides guidance to 
the states regarding the implementation of the new definition of 
``paying state'' for an unemployment compensation (UC) combined-wage 
claim (CWC) filed under the Interstate Arrangement for Combining 
Employment and Wages, as amended at 73 Federal Register (FR) 63038 
(October 23, 2008).

FOR FURTHER INFORMATION CONTACT: Stephanie C. Garcia, 202-693-3207.

SUPPLEMENTARY INFORMATION: The CWC program allows an unemployed 
individual with employment and wages in more than one state to combine 
his/her wages to establish a CWC under the law of a single state called 
the ``paying state'' to qualify for benefits or to receive additional 
benefits (i.e., a higher weekly benefit amount). On October 23, 2008, 
the U.S. Department of Labor published a final rule in the Federal 
Register changing the definition of ``paying state.'' Effective January 
6, 2009, the definition of ``paying state'' at 20 CFR 616.6(e) is 
amended to mean a single state against which the claimant files a CWC, 
if (1) the claimant has employment and wages in that state's base 
period, and (2) the claimant qualifies for unemployment compensation in 
that state using the combined employment and wages.
    On November 14, 2008, UIPL No. 1-09 was issued. The complete text 
of the guidance documents are provided in

[[Page 5683]]

this notice. In addition, the guidance documents are available on the 
ETA Advisory Web site: UIPL No. 1-09 -at https://wdr.doleta.gov/
directives/corr_doc.cfm?DOCN=2681.

Unemployment Insurance Program Letter No. 1-09

    To: State Workforce Agencies.
    From: Brent R. Orrell, Deputy Assistant Secretary.
    Subject: Interstate Arrangement for Combining Employment and Wages; 
New Definition of Paying State for Combined-Wage Claims.
    1. Purpose. To provide guidance to states regarding the change in 
the definition of ``paying state'' for an unemployment compensation 
(UC) combined-wage claim (CWC) filed under the Interstate Arrangement 
for Combining Employment and Wages.
    2. References. Section 3304(a)(9)(B) of the Federal Unemployment 
Tax Act (FUTA), 20 CFR Part 616; ET Handbook No. 399; ET Handbook No. 
392; 20 CFR Part 616, as amended at 73 Federal Register (FR) 63068 
(October 23, 2008).
    3. Summary. The CWC program allows an unemployed individual with 
employment and wages in more than one state to combine his/her wages to 
establish a CWC under the law of a single state called the ``paying 
state'' to qualify for benefits or to receive additional benefits 
(i.e., a higher weekly benefit amount). On October 23, 2008, the U.S. 
Department of Labor published a final rule in the Federal Register 
changing the definition of ``paying state.'' Effective January 6, 2009, 
the definition of ``paying state'' at 20 CFR 616.6(e) is amended to 
mean a single state against which the claimant files a CWC, if (1) the 
claimant has employment and wages in that state's base period, and (2) 
the claimant qualifies for UC in that state using the combined 
employment and wages. (73 FR 63068 (Oct. 23, 2008)).
    All 50 states, plus the District of Columbia, the Commonwealth of 
Puerto Rico, and the U.S. Virgin Islands are required to participate in 
the Interstate Arrangement for Combining Employment and Wages and will 
be affected by this change. The attached set of questions and answers 
provide guidance to states about the new definition of paying state and 
the states' responsibilities for providing CWC filing options.
    4. Action. Administrators are requested to provide this information 
to appropriate staff.
    5. Inquiries. States should direct questions to the appropriate 
Regional Office.
    6. Attachments.
    Attachment 1: Combined-Wage Claims--Questions and Answers 
on the New Definition of Paying State.
    Attachment 2: States' Responsibilities for Providing 
Combined-Wage Claim (CWC) Filing Options Effective January 6, 2009.
    Attachment 3: Sample Scripts for Providing Combined-Wage 
Claim (CWC) Filing Options.

Attachment 1 to UIPL No. 1-09

Combined-Wage Claims; Questions and Answers on the New Definition of 
Paying State

A. New Definition of Paying State
    1. Question: How does the new definition of paying state change the 
way an individual files a CWC?
    Answer: Prior to the new amendment, which becomes effective on 
January 6, 2009, the paying state is the state in which the individual 
files the CWC (usually the state where the individual is physically 
located at the time of filing a CWC), if s/he qualifies for benefits 
under the UC law of that state on the basis of combined employment and 
wages. The current definition also identifies the paying state when the 
individual does not qualify for unemployment benefits under the UC law 
of the state in which s/he files the CWC or when the individual applies 
for a CWC from Canada.
    Effective January 6, 2009, the new definition of paying state for a 
CWC is the state against which the individual elects to file a CWC, 
provided the individual has employment and wages in that state's base 
period(s), and the individual qualifies for UC under the law of that 
state using combined employment and wages. (See revised 20 CFR 
616.6(e).)
    2. Question: What is the earliest possible effective date of an 
initial CWC based on the new rule?
    Answer: The earliest possible effective date of an initial CWC 
based on the new rule is Tuesday, January 6, 2009, in states where the 
effective date of an initial claim may begin on a Tuesday. In most 
states, where weeks of unemployment begin on Sunday, the earliest 
effective date of a CWC is Sunday, January 11, 2009. This means that 
individuals filing a CWC in these states during the week beginning 
Sunday, January 4, 2009, will be subject to the regulations prior to 
the amendment. Individuals filing a CWC during the week beginning 
Sunday, January 11, 2009, and thereafter, will be subject to the 
amended rule that is effective January 6, 2009.
B. States' Responsibilities Regarding the New Definition of Paying 
State
    1. Question: When an individual contacts a state about filing a 
CWC, what are the state's responsibilities in advising the individual 
of his/her options?
    Answer: The responsibility of the state varies depending on the 
circumstances of the individual.
    If the individual has employment and wages in the state, the state 
must advise the individual of the state's qualifying requirements and 
his/her potential eligibility for benefits (if any) under its law. The 
individual must also be told that s/he has the option to file in any 
other state(s) where s/he has employment and wages. The state must 
advise the individual that there are differences in weekly benefit 
amounts and other qualifying requirements (i.e., state laws vary). If 
the individual wishes to explore options with any other state(s), the 
state must provide information about how to contact any such state(s).
    If the individual has no employment and wages in the state, the 
state must provide general information about the CWC program and 
information about how to contact the state(s) where the individual has 
employment and wages. (See Attachment 2.)
    2. Question: Does the new definition of paying state require states 
to follow any specific order in determining which state is the paying 
state for a CWC claim?
    Answer: No. Individuals may establish a CWC in any state in which 
they have employment and wages in the base period(s) of the state and 
qualify based on combining their wages. This includes individuals 
residing in Canada who have performed work in the United States.
    3. Question: How will individuals determine the appropriate state 
to file a CWC?
    Answer: The individual is responsible for deciding the state 
against which to file a CWC. States receiving inquiries from 
individuals potentially eligible to apply for CWCs must assist such 
individuals by providing general information about the CWC program 
advising that states' programs/entitlements vary and contact 
information for the state(s) where the individual worked.
    States may refer individuals to America's Service Locator, which is 
located at: https://www.servicelocator.org/OWSLinks.asp and/or to 
specific states' Web sites.
    4. Question: How does the state inform the individual of other 
filing

[[Page 5684]]

options when a state determines that an individual is monetarily 
ineligible for a CWC after all wage transfers are complete?
    Answer: Under the new rule, a state's written determination of 
monetary ineligibility under a CWC must contain information indicating 
that the individual may file a CWC claim in another state where the 
individual has employment and wages during the state's base period(s). 
(See revised 20 CFR 616.7(f).) States will meet this requirement by 
including a statement such as the following:

    You may be eligible for benefits on the basis of combining your 
employment and wages in another state where you have worked. To file 
a claim, you will need to contact the other state(s) where you 
worked.

    5. Question: Prior to the new amendment, there were cases where the 
paying state did not know if wages from other states were available for 
transfer. Does the new definition affect the way states handle these 
cases?
    Answer: The new amendment does not change current procedures in 
this regard. When a state is a potential paying state, it should assist 
the individual in filing a CWC when the individual wishes to pursue a 
claim. As in the past, there will be some instances where individuals' 
wages will not be available for use on a CWC because of administrative 
complications. States will need to address these cases on an individual 
basis. In some cases, a claim may need to be withdrawn and a backdated 
claim filed with another state. States should follow existing 
backdating policies and procedures.
    6. Question: Does the new definition affect the way Federal 
(civilian and/or military) wages are assigned?
    Answer: The rules about the assignment of Federal wages have not 
changed.
C. CWC Filing Options
    1. Question: When an individual has employment and wages in more 
than one state, must the individual file a CWC?
    Answer: No, filing a CWC remains voluntary on the part of the 
individual. (Refer to 20 CFR 616.7(a) and (c).)
    2. Question: Under the new definition may an individual establish a 
CWC under the law of the state where s/he resides?
    Answer: Yes, but only if the individual has sufficient base period 
wages to qualify for benefits in the state of residence. An 
individual's residence is not relevant in determining the paying state. 
(Refer to 20 CFR 616.6(e).)
    3. Question: The individual is eligible in State A for a regular 
intrastate claim using regular base period wages. State A also has an 
alternative base period, but it is available only if the individual is 
monetarily ineligible under the state's regular base period. The 
individual could also establish eligibility in State B, where s/he has 
lag quarter wages, which permits the use of the alternative base period 
at the individual's option. What are this individual's filing options?
    Answer: The individual has the option to establish: (1) a regular 
intrastate UC claim in State A, or (2) an interstate CWC against State 
B.
    4. Question: Under the new definition, is an individual who has 
elected to withdraw a CWC filed in State A able to establish a CWC in 
State B in which s/he also has employment and wages?
    Answer: Yes, provided the individual is otherwise eligible, does 
not have an active claim with available benefits in State A, and has 
covered employment and/or wages in State B. The fact that s/he has 
withdrawn a prior CWC from State A has no effect on whether s/he may 
establish a CWC in State B (or any other state in which s/he had 
employment and wages).
    5. Question: What impact does the new rule have on the states' 
responsibilities for providing claim filing options to individuals 
potentially eligible to file CWCs?
    Answer: A state will have different responsibilities with respect 
to an individual potentially eligible for a CWC depending on whether it 
is the CWC ``paying state,'' ``potential paying state,'' ``agent 
state,'' or ``inquiry state'' as defined below:
     A ``paying state'' is a single state against which the 
individual files a CWC, if the individual has employment and wages in 
that state's base period(s) and the individual qualifies for UC under 
that state's law using combined employment and wages.
     A ``potential paying state'' is a state in which an 
individual might establish a CWC.
     An ``agent state'' is the state that takes the interstate 
CWC on behalf of the paying state because the paying state does not 
accept interstate claims, including any interstate CWC, by phone/
Internet.
     An ``inquiry state'' is the state contacted by an 
individual who is potentially eligible for a CWC, but who has no 
employment and wages in that state.
    There are generally three levels of responsibility states will have 
with respect to providing filing options; these include inquiry filing 
options, detailed filing options and other filing options. (See 
Attachment 2.)

Attachment 2 to UIPL No. 01-09

States' Responsibilities for Providing Combined-Wage Claim (CWC) Filing 
Options Effective January 6, 2009

    Inquiry Filing Options:
     States without base period employment and wages (an 
inquiry state) for the individual must provide:
    [cir] General information about the CWC program advising that 
states' programs/entitlements vary; and,
    [cir] Contact information for the state(s) where the individual 
worked during the base period(s) of such state(s).
     States with base period employment and wages (a potential 
paying state) for the individual must provide:
    [cir] General information about the CWC program advising programs/
entitlements vary between states;
    [cir] Information about its eligibility requirements and the 
individual's potential eligibility (including weekly benefit amount, 
maximum benefit amount) under its law for:
    [dec221] A regular UI claim; and/or a CWC (based on available 
information);
    [cir] if available, the maximum weekly benefit amount(s) of the 
other state(s) where the individual worked; and,
    [cir] contact information for the other state(s) where the 
individual worked during the base period(s) of such state(s).
    Detailed Filing Options:
     States with base period employment and wages and any 
state(s) against which the individual decides to file a claim must 
provide:
    [cir] General information about the CWC program advising programs/
entitlements vary between states;
    [cir] A review of the individual's work history to determine which 
filing options are available; and,
    [cir] Information about its eligibility requirements and the 
individual's potential eligibility (including weekly benefit amount, 
maximum benefit amount) under its law for:
    [dec221] A regular UI claim; and/or a CWC.
    If a state is an agent state taking the claim on behalf of the 
paying state, the agent state will provide detailed filing options 
using available information at the time the interstate CWC is filed/
taken.
    Other Filing Options:
     If a CWC ``paying state'' issues a determination that the 
claimant is monetarily ineligible on a CWC after all wages are 
transferred, it must provide information to the claimant about his/her 
right to establish a claim in another state where s/he worked in its 
written

[[Page 5685]]

determination of ineligibility. Language similar to the following will 
satisfy this requirement:
    [cir] You may be eligible for benefits on the basis of combining 
your employment and wages in another state where you have worked. To 
file a claim, you will need to contact the other state(s) where you 
worked.

Attachment 3 to UIPL 1-09

Sample Scripts for Providing Combined-Wage Claim (CWC) Filing Options

    Inquiry Filing Options:
     States without base period employment and wages (an 
inquiry state) for the individual must provide:
    [cir] General information about the CWC program advising that 
states' programs/entitlements vary; and
    [cir] Contact information for the state(s) where the individual 
worked during the base period(s) of such state(s).
    An example of information that must be provided to an individual in 
a state where the individual has no employment or wages: ``Mr. Jones, 
because you have worked in three states, you may be able to establish 
an unemployment claim with any of those states under the Combined-Wage 
Claim program. Your wages will be combined and the amount of your 
benefits will be determined under the law of the state where you file 
your combined-wage claim. This might increase your benefit amount. You 
should know that state unemployment laws, weekly benefit amounts, and 
eligibility requirements vary between the states. I will provide 
information to you about how you may contact each of the states where 
you have worked to obtain this type of state information and their 
filing procedures. Although you may be eligible to receive unemployment 
benefits in more than one of these states, you may only establish a 
combined-wage claim against one of these states.''
     States with base period employment and wages (a potential 
paying state) must provide:
    [cir] General information about the CWC program advising programs/
entitlements vary between states;
    [cir] Information about its eligibility requirements and the 
individual's potential eligibility (including weekly benefit amount, 
maximum benefit amount) under its law for:
    [dec221] A regular UI claim; and/or a CWC (based on available 
information);
    [cir] If available, the maximum weekly benefit amount(s) of the 
other state(s) where the individual worked; and,
    [cir] Contact information for the other state(s) where the 
individual worked during the base period(s) of such state(s).
    An example of information that must be provided to an individual in 
a state where the individual has employment and wages (a potential CWC 
paying state): ``Mr. Jones, because you have worked in three states 
including this one, you may be able to establish an unemployment claim 
with any one of these states under the Combined-Wage Claim program. 
Your wages will be combined and your monetary entitlement will be 
determined under the law of the one state where you file your combined-
wage claim. You should know that state unemployment laws, weekly 
benefit amounts, and eligibility requirements vary between the states. 
Can you tell me where you have worked in this state? (Follow your 
state's procedures on verifying identity.) Thank you. In what other 
states did you work? Based on the wages reported by your employer(s), 
you would qualify for a weekly benefit amount of $-- and a maximum 
benefit amount of $-- if you establish a claim in this state using only 
your wages earned here. If you establish a combined-wage claim here 
using wages earned in the other state(s), you would potentially qualify 
for a weekly benefit amount of $-- and a maximum benefit amount of $--. 
This amount is only an estimate and will not become final until all 
out-of-state wages are received here. As I mentioned before, state 
unemployment laws and benefit amounts vary between the states. Because 
of this, you may want to contact the other states where you have worked 
to find out your potential eligibility there before making a decision 
on which state to file in. Since I have information available 
concerning the maximum weekly benefit amounts in the two other states 
in which you worked I can provide it to you; the weekly amounts are $-- 
and $--. I will provide information to you about how you may contact 
each of the states where you have worked to obtain information about 
your potential entitlement in these states and their filing procedures. 
Although you may be eligible to receive unemployment benefits in more 
than one of these states, you may only establish a combined-wage claim 
against one state. Do you have any questions for me?''
    Detailed Filing Options:
     States with base period employment and wages and any 
state(s) against which the individual decides to file a claim must 
provide:
    [cir] General information about the CWC program advising programs/
entitlements vary between states;
    [cir] A review of the individual's work history to determine which 
filing options are available; and,
    [cir] Information about its eligibility requirements and the 
individual's potential eligibility (including weekly benefit amount, 
maximum benefit amount) under its law for:
    [dec221] A regular UI claim; and/or a CWC.
    If a state is acting as an agent state taking the claim on behalf 
of the paying state, the agent state will provide detailed filing 
options using available information at the time the interstate CWC is 
filed/taken.
    Scenario 1. An example of information that must be provided to a 
individual when a filing decision (i.e., the state where s/he will file 
the CWC) has been made by the individual: ``Mr. Jones, because you have 
worked in three states including this one, you may be able to establish 
an unemployment claim with any of these states under the Combined-Wage 
Claim program. Your wages will be combined and the amount of your 
benefits will be determined under the law of the state where you 
establish your combined-wage claim. You should know that state 
unemployment laws, weekly benefit amounts, and eligibility requirements 
vary between the states. Can you tell me where you have worked in this 
state? (Follow your state's procedures on verifying identity.) Thank 
you. In what other states did you work? Based on the wages reported by 
your employer(s), you would qualify for a weekly benefit amount of $-- 
and a maximum benefit amount of $-- if you establish a claim using only 
your wages earned here. If you establish a combined-wage claim here 
using wages earned here and in the two other state(s), you would 
potentially qualify for a weekly benefit amount of $-- and a maximum 
benefit amount of $--. This amount is only an estimate and will not 
become final until all out of state wages are received here. As I 
mentioned before, state unemployment laws and benefit amounts vary 
between the states. Have you contacted the other states in which you 
worked to find out about your potential entitlement there? (Claimant 
answers yes.) Good. Would you like to establish a combined-wage claim 
with this state, using the wages you earned here and wages from the 
other two states in which you worked? (Claimant answers yes.) Great, I 
have a few more questions for you.''
    Scenario 2. An example of information that must be provided to an 
individual when there is no employment and wages in the state, the 
individual has chosen to file an agent interstate CWC claim, and the 
liable CWC state does not accept phone or Internet claims: ``Mr. Jones, 
because you have worked in three other states, you may be able to 
establish an unemployment

[[Page 5686]]

claim with any of these states under the Combined-Wage Claim program. 
Your wages will be combined and the amount of your benefits will be 
determined under the law of the one state where you establish your 
combined-wage claim. You should know that state unemployment laws, 
weekly benefit amounts, and eligibility requirements vary between the 
states. Can you tell me where you have worked, the dates of such work 
and the states in which you worked? (Follow your state's procedures on 
verifying identity.) Thank you. Based on what you have provided to me, 
you could establish a claim with any of these states. Have you 
contacted any of these states to obtain information about potential 
eligibility? (Individual answers yes.) And, do you know which state you 
wish to establish a claim with? (Claimant answers yes and indicates s/
he wants to file a claim with State A, which does not accept interstate 
claims by phone or Internet.) I will be happy to take your claim 
against State A for you. Please keep in mind that I am acting as their 
agent in taking your claim. You will receive detailed information about 
the amount of benefits for which you qualify and continuing filing 
instructions from that state. The exact amount of your entitlement will 
not become final until your claim is established and your wages are 
transferred to the paying state. I have a few more questions so let's 
get started.''

    Signed at Washington, DC, this 26th day of January, 2009.
Douglas F. Small,
Deputy Assistant Secretary, Employment and Training Administration, 
U.S. Department of Labor.
 [FR Doc. E9-2000 Filed 1-29-09; 8:45 am]
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