On July 12, 2021, the US Department of Labor, Employment and Training Administration provided guidance to states with respect to the transition from the temporary unemployment benefit programs under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. A link to the guidance may be found at doleta.gov. Highlights of this UI PL No. 14-21, Change 1 include:

  1. The agreements under which the provisions of the CARES Act are administered (PUA, FPUC, PEUC, MEUC) are set to expire September 6, 2021.
  2. Some states have elected  to terminate some or all of the agreements under which these programs are administered as of an earlier date.
  3. The agreements to administer the PUA, FPUC, PEUC, and MEUC programs remain in effect with respect to weeks of unemployment ending on or before the date of termination or expiration (whichever comes first) until all issues relating to those weeks are resolved.
  4. States are required to accept all PUA, FPUC, PEUC, and MEUC claims for a period of time after the date of termination or expiration (whichever comes first), and determine all such claims in a timely manner, including establishing overpayments as appropriate and processing appeals.
  5. States must individually notify individuals of the termination or expiration of the programs.
  6. Unless notified otherwise by the state, US DOL will discontinue transferring funds to those states for weeks of unemployment beginning on or after the date of termination. States will receive funds for weeks of unemployment that occurred prior to the termination date. If a state wishes to resume receiving the transfers of funds and reducing the reimbursement amounts owed by governmental entities and certain nonprofit organizations, it must notify the Department immediately.
  7. Full federal funding of the first week of compensable regular unemployment for states with no waiting week continues with respect to all waiting week payments for weeks of unemployment ending on or before the date of termination or expiration (whichever comes first).

Reinstituting participation in the pandemic UI programs. Any state that has provided notice to the Department of its intent to terminate any of the pandemic UI programs prior to the September 6, 2021 end date may reinstitute participation in any or all programs it previously indicated it would be terminating. If the state’s date of termination has not become effective, the state simply needs to provide the Department with written notice that it is rescinding or modifying the effective date of its prior notice of termination for the particular program(s) and the state will then be able to continue making payments under the program(s). If the date of termination has occurred and the state has terminated participation, the state may need to enter into a new agreement with the Department to reinstitute operations. By entering into a new agreement, the state may experience a lapse in time period for which the state may pay benefits under the FPUC, MEUC, and PEUC programs as the new agreement becomes effective the week of unemployment beginning after a new agreement is signed. The state will not experience a lapse in time period for which the state may pay benefits under the PUA program and the state must provide an opportunity for individuals receiving PUA to certify for the missing weeks. If a state enters into a new agreement or rescinds, rather than modifies, the previous notice of termination, the state would need to provide 30-day notice of any future termination of participation in the pandemic UI programs.

Emergency unemployment relief for governmental entities and certain nonprofit organizations. Some states have provided written notice to terminate participation in the Emergency Unemployment Relief for Governmental Entities and Nonprofit Organizations provision under Section 2103 of the CARES Act, as amended. USDOL interprets this to mean that the state does not intend to use the fund transfers under Section 2103 of the CARES Act, as amended, for the authorized purpose specified in Section 903(i)(1)(C) of the Social Security Act (SSA). See UIPL No. 18-20, Change 2. As such, unless notified otherwise by the state, the Department will discontinue transferring funds to those states for weeks of unemployment beginning on or after the date of termination. States will receive funds for weeks of unemployment that occurred prior to the termination date. If a state wishes to resume receiving the transfers of funds and reducing the reimbursement amounts owed by governmental entities and certain nonprofit organizations, it must notify the Department immediately.

Comment: States, employers and worker representatives should be prepared to transition from the temporary emergency program measures and take note of this guidance. Many claims determination issues will continue after the formal expiration or termination. States will need to decide how long to accept back dated claims and continue to process appeals and report to US DOL. States that changed state law to pay the waiting week in view of federal reimbursement in temporary law should immediately consider reinstating the waiting week provision to assure that the state meets the terms of reimbursement of the federal share under permanent extended benefits law. States that previously cancelled agreements under which to receive reimbursement and credits against charges to reimbursing employer accounts should also consider renewing the request for reimbursement.