Part of a larger effort by the federal government to address the growing U.S. deficit, Sec. 252 of the 2011 Federal Trade Adjustment Assistance Extension Act, the UI Integrity Act, was specifically designed to help prevent the improper and/or fraudulent payment of unemployment benefits which have been a far-reaching drain on the state unemployment insurance (UI) system.
Tuesday, October 22nd, is the deadline, set by Federal law, for all 50 states to enact their own UI Integrity legislation. But will all 50 states actually be compliant? Well, probably not.
As of this publication, 22 states, and D.C., have not yet passed any legislation in relation to Sec. 252. (Neither has Puerto Rico or the Virgin Islands.) Of those, only 7 have pending Sec. 252 compliant UI integrity legislation.
Sec. 252′s mandate required states to require employers to respond in a timely and adequate manner to all state requests for UI benefit information in order to reduce improper payments. If an employer fails to respond in a timely or adequate manner, it becomes the employer’s responsibility to pay for either part of or all of the improper payments made to claimants.
Nonprofit employers participating in the state UI system can opt out of paying their state unemployment taxes and instead directly reimburse the state for the dollar-for-dollar cost of benefits paid to their former employees. By participating in the Unemployment Services Trust (UST) nonprofits with choose to directly reimburse the state have added help in ensuring that all communications are timely and adequate– but should a claim have to be tried, expert hearing representatives aid our members in presenting the best witnesses and evidence available.
Read more about your state’s legislative actions here.