[Federal Register Volume 62, Number 143 (Friday, July 25, 1997)]
[Notices]
[Pages 40118-40120]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-19648]
-----------------------------------------------------------------------
DEPARTMENT OF LABOR
Employment and Training Administration
Federal-State Unemployment Compensation Program: Unemployment
Insurance Program Letters Interpreting Federal Unemployment Insurance
Law
The Employment and Training Administration interprets Federal law
requirements pertaining to unemployment compensation as part of its
role in the administration of the Federal-State unemployment
compensation program. These interpretations are issued in
[[Page 40119]]
Unemployment Insurance Program Letters (UIPLs) to the State Employment
Security Agencies (SESAs). The UIPL described below is published in the
Federal Register in order to inform the public.
UIPL 37-96 Change 1
The Personal Responsibility and Work Opportunity Reconciliation Act
of 1996, popularly known as the ``welfare reform'' bill, made several
changes which affect the unemployment compensation (US) program. The
purpose of this UIPL is to provide information on one of these changes
which was not discussed in the Department's previous issuance on
PRWORA, UIPL 37-96. This change relates to the definition of ``legal
process'' used for purposes of intercepting child support obligations
from UC.
UIPL 34-97
For a number of years, State US agencies have been seeking guidance
concerning the permissible disclosure of UC information, particularly
in the areas of payment of costs and safeguarding information. In March
of 1992, the Department of Labor published a Notice of Proposed
Rulemaking in the Federal Register on the confidentiality and
disclosure of State records compiled or maintained for the Purposes of
the Federal-State UC program. As an interim step, until the rule is
published, the Department is issuing this UIPL to inform States of the
Department's position in this area.
Dated: July 22, 1997.
Raymond J. Uhalde,
Acting Assistant Secretary of Labor.
U.S. Department of Labor
Employment and Training Administration, Washington, D.C. 20210
Classification: UI
Correspondence Symbol: TEUL
Date: June 10, 1997
Rescissions: None
Expiration Date: Continuing
Directive: Unemployment Insurance Program Letter No. 34-97
To: All State Employment Security Agencies
From: Grace A. Kilbane, Director, Unemployment Insurance Service
Subject: Disclosure of Confidential Unemployment Compensation
Information
1. Purpose. To advise States of the Department of Labor's
(Department) interpretation of Federal law regarding the basic
confidentiality and disclosure requirements for the Federal-State
unemployment compensation (UC) program and to announce that the
Department is planning to move ahead with development of a rule.
2. References. Sections 303(a)(1) and 303(a)(8) of the Social
Security Act (SSA); Income and Eligibility Verification System
(IEVS) regulations at 20 CFR Part 603; Unemployment Insurance
Program Letter (UIPL) No 52-80, dated September 9, 1980 (disclosure
to food stamp agencies and to child support enforcement agencies);
UIPL No. 12-87, dated March 11, 1987 (disclosure to agencies
participating in a State IEVS); UIPL No. 11-89, dated January 5,
1989 (disclosure to the Department of Housing and Urban Development
and to representatives of a public housing agency; this disclosure
provision expired on October 1, 1994); UIPL No. 23-96, dated May 31,
1996 (disclosure to private entities); UIPL No. 37-96, dated
September 25, 1996 (disclosure to child support enforcement agencies
and redisclosure to an agent, and disclosure to the Secretary of
Health and Human Services for purposes of the National Directory of
New Hires operated by the Federal Parent Locator Service).
3. Background. For a number of years, State UC agencies have
been seeking guidance concerning the permissible disclosure of UC
information, particularly in the areas of payment of costs and
safeguarding information. Accordingly, the Department published a
Notice of Proposed Rulemaking (NPRM) in the Federal Register (57 FR
10064) on March 23, 1992, on the confidentiality and disclosure of
State records compiled or maintained for the purposes of the
Federal-State UC program. Just over 100 responses were received from
various interested parties. As an interim step, until the rule is
published, the Department is issuing this UIPL.
4. Rulemaking. The Department will seek to place in regulations
all of the requirements of statutory provisions relating to the
confidentiality and disclosure of State records compiled or
maintained for the purposes of the Federal-State UC program. The aim
of the rule will be to prescribe comprehensive requirements for
protecting the confidentiality of State records collected for the
purposes of the Federal-State UC program, define the limits on the
rule of confidentiality, set forth the statutorily required and
permitted exceptions to the rule of confidentiality, and prescribe
the conditions under which the required and permitted disclosures
shall or may be made. Among the various issues to be discussed in
the rule will be disclosure to governmental entities and ``quasi''
governmental entities and redisclosure to private entities acting as
agents for governmental entities, as well as issues raised in
response to the NPRM.
Until a rule is issued, this UIPL, the UIPLs cited above in item
2, References, other UIPLs subsequently issued and 20 CFR Part 603
are the Department's interpretation of Federal law with respect to
confidentiality and disclosure.
5. Interpretaiton. The basic confidentiality requirement for the
Federal-State UC program has its origin in the beginning of the
program and is derived form Sections 303(a)(1) and 303(a)(8), SSA.
It pertains to information required from individuals and employers
or employing units for the purposes of the administration of the
revenue and benefit provisions of State UC laws, hereafter ``UC
information.'' It applies to State UC agencies and the entire
executive branch of State government.
Section 303(a)(1), SSA, requires, as a condition for a State to
receive administrative grants, that the State law provide for:
[S]uch methods of administration * * * as are found by the
Secretary of Labor to be reasonably calculated to insure full
payment of unemployment compensation when due.
Section 303(a)(8), SSA requires, as a condition for a State to
receive administrative grants, that the State law provide for:
The expenditure of all moneys received * * * solely for the
purposes and in the amounts found necessary by the Secretary of
Labor for the proper and efficient administration of such State law
* * *.
It has been the Department's longstanding interpretation of
Sections 303(a)(1) and 303(a)(8), SSA, that UC information is
confidential and, except as noted in item 6 below, is not subject to
disclosure. The basis for this prohibition is that disclosure may
discourage individuals claiming benefits from exercising their
rights under the law, may deter employers from furnishing
information necessary for UC program operations, may impede the
``proper and efficient administration'' of the UC program, and may
create notoriety for the UC program if the information were misused.
Any publicity could have disrupting effects on the operations of the
State agency and effect the agency's mission of insuring claimants
``full payment of unemployment compensation when due.''
6. Exceptions. Following are exceptions to the rule of
confidentiality.
a. Disclosure to Public Officials--Permissible. UC records may
be disclosed to Federal, State and local public officials, including
law enforcement officials, in the administration or enforcement of a
law by the public official. The Department encourages such
disclosure in the interest of effective government. This disclosure
of records to public officials is permitted only under the following
conditions:
Disclosure of the specific record(s) requested is
permitted by the State law of the State to which the request is
made.
Such disclosure would not significantly hinder or delay
the processing of UC claims or other UC activities, and such
disclosure would not impede the efficient administration of the
State UC law.
The use of the disclosed information is limited to
official governmental duties.
If disclosure entails more than casual or incidental
staff time, arrangements are made for the reimbursement of the costs
involved in providing the information.
b. Disclosure to Public Officials--Required. Several specific
provisions of Federal law require disclosure of UC information to
certain governmental entities, which are food stamp agencies, child
support enforcement agencies, the National Directory of New Hires
and agencies participating in a State IEVS. This UIPL will not
discuss these requirements as they have already been addressed in 20
CFR Part 603 and the various UIPLs cited above in item 2,
References.
c. Disclosure to Private Entities--UIPL No. 23-96. UC
information may be disclosed to a private entity under a written
agreement
[[Page 40120]]
which requires ``informed consent'' from the individual to whom the
information pertains, safeguards the information once it is in the
hands of the private entity and closely restricts or prohibits
further dissemination, and requires the private entity to pay all
costs associated with disclosure. Consent is not informed if an
individual is not told that governmental records, including a
State's records, may be released and to whom the information may be
provided. A more complete discussion is found in UIPL No. 23-96.
d. Subpoenas. Where a subpoena requests the disclosure of
confidential UC information that is not permitted to be disclosed to
the party seeking it, disclosure is permitted only after a motion to
quash, on the grounds that it is privileged UC information, has been
overruled by a court. This is because, while subpoenas may be issued
by a public official (e.g., a clerk of court), they are generally
requested for a private party, such as a claimant or an employer.
Cooperation with law enforcement officials is encouraged so that
there should be no need for these officials to rely upon subpoenas.
7. Action Required. State administrators are requested to
provide the above information to appropriate staff.
8. Inquiries. Direct questions to the appropriate Regional
Office.
U.S. Department of Labor
Employment and Training Administration
Washington, D.C. 20210
Classification: UI
Correspondence Symbol: TEUL
Date: July 21, 1997
Rescissions: None
Expiration Date: Continuing
Directive: Unemployment Insurance Program Letter No. 37-96 Change 1
To: All State Employment Security Agencies
From: GRACE A. KILBANE, Director, Unemployment Insurance Service
Subject: The Personal Responsibility and Work Opportunity
Reconciliation Act of 1996--Deduction of Child Support Obligations
from Unemployment Compensation through Legal Process
1. Purpose. To advise States of an amendment to the definition
of legal process made to Federal law by the Personal Responsibility
and Work Opportunity Reconciliation Act of 1996.
2. References. The Personal Responsibility and Work Opportunity
Reconciliation Act of 1996 (P.L. 104-193); the Social Security Act
(SSA); and Unemployment Insurance Program Letter (UIPL) No. 37-96.
3. Background. The Personal Responsibility and Work Opportunity
Reconciliation Act of 1996 (PRWORA), popularly known as the
``welfare reform'' bill, made several changes which affect the
unemployment compensation (UC) program. The purpose of this UIPL is
to provide information on one of these changes which was not
discussed in the Department's previous issuance on PRWORA, UIPL 37-
96. This change relates to the definition of ``legal process'' used
for purposes of intercepting child support obligations from UC.
4. Legal Process. The child support intercept requirement for UC
is found at Section 303(e)(2)(A)(iii)(III), SSA. It requires States,
as a condition for UC administrative grants, to deduct and withhold
child support obligations from any UC otherwise payable to an
individual if the obligation is ``required to be so deducted and
withheld from such unemployment compensation through legal process
(as defined in section 462(e)),'' SSA. This definition of legal
process was repealed by Section 362(b)(1), PRWORA. Although a new
definition of legal process was added to the SSA, the UC intercept
provisions were not amended to reference this new definition.
The new definition of legal process is found at Section
459(i)(5), SSA, as amended by Section 362(a), PRWORA. It is
substantially similar to the old definition. However, whereas the
old definition included only courts of competent jurisdiction, the
new definition is expanded to include administrative agencies of
competent jurisdiction. Thus, a writ, order, summons, or other
similar process in the nature of garnishment which is issued by an
administrative agency of competent jurisdiction is now included in
the definition of legal process.
Under the repealed Section 462(e), the definition of legal
process applied to Section 459. In contrast, the new definition is
itself contained in Section 459. In the Department's view, the
shifting of the definition from Section 462 to Section 459 is merely
technical. Further, the child support intercept provision must be
effectuated. Therefore, although the child support intercept
provision was not amended to reference the new definition, the
Department interprets it as re/quiring that States deduct and
withhold UC in accordance with the new definition of legal process.
This interpretation gives effect to one of the purposes of the
PRWORA--to strengthen child support enforcement mechanisms.
States should be aware that any additional costs incurred by the
State UC agency in administering this new definition must be
reimbursed by the appropriate State or local child support
enforcement agency as required by Section 303(e)(2)(C), SSA.
5. Action. States will need to determine whether amendment to
State law is necessary.
6. Inquiries. Please direct inquiries to the appropriate
Regional Office.
[FR Doc. 97-19648 Filed 7-24-97; 8:45 am]
BILLING CODE 4510-30-M