Federal Law Requires States to Improve Responses to Unemployment Insurance Claims | Practical Law

Federal Law Requires States to Improve Responses to Unemployment Insurance Claims | Practical Law

Under the Unemployment Insurance Integrity Act, a recent amendment to the Trade Adjustment Assistance Extension Act of 2011 (TAAEA), all US states must implement laws penalizing employers for insufficient responses to unemployment insurance claims.

Federal Law Requires States to Improve Responses to Unemployment Insurance Claims

Practical Law Legal Update 4-553-1105 (Approx. 3 pages)

Federal Law Requires States to Improve Responses to Unemployment Insurance Claims

by Practical Law Labor & Employment
Published on 23 Dec 2013USA (National/Federal)
Under the Unemployment Insurance Integrity Act, a recent amendment to the Trade Adjustment Assistance Extension Act of 2011 (TAAEA), all US states must implement laws penalizing employers for insufficient responses to unemployment insurance claims.
Under an amendment to the federal Trade Adjustment Assistance Extension Act of 2011 (TAAEA) that recently became effective, employers are now legally required to respond timely and completely to all notices of claims for unemployment benefits. The amendment to the TAAEA is known as the Unemployment Insurance Integrity Act. The amendment requires that by October 21, 2013, all US states issue laws providing that an employer or agent's accounts will not be relieved of charges relating to an unemployment payment from the state fund if the state determines that the employer both:
  • Did not respond timely or adequately to an unemployment compensation claim or request for information on an unemployment compensation claim.
  • Established a pattern of failing to respond to an unemployment compensation claim or request for information on an unemployment compensation claim.
The TAAEA provides only general guidelines, allowing each state to implement its particular conforming law. For example, Georgia's law penalizes employers that do not timely and adequately respond to three or more individual unemployment insurance claims within the current calendar year (see Legal Update, Georgia Law Penalizes Employers Unresponsive to Unemployment Claims).