# Application of State-Wide Personnel Actions to Unemployment Insurance Program
**AGENCY:**
Employment and Training Administration, Labor.
**ACTION:**
Notice.
**SUMMARY:**
The Employment and Training Administration provided guidance to States explaining the Department's position concerning the application of State-wide personnel actions to the unemployment compensation program. The original guidance, UIPL No. 09-98, was published in the *Federal Register* on February 10, 1998, as continuing guidance. This guidance had not been rescinded. However, to remind States of the Department's position, on March 11, 2009, the Department issued UIPL No. 18-09, with UIPL No. 09-98 as an attachment. UIPL No. 18-09 is published below to inform the public and is available at: *http://wdr.doleta.gov/directives/attach/UIPL/UIPL18-09.pdf* .
**SUPPLEMENTARY INFORMATION:**
**UIPL 18-09—
Application of State-Wide Personnel Actions, including Hiring Freezes, to the Unemployment Insurance Program**
*1. Purpose.* To advise states that Unemployment Insurance Program Letter (UIPL) 09-98 expresses the Department's position concerning the application of state-wide personnel actions such as hiring freezes, shutdowns, and furloughs to the unemployment insurance (UI) program.
*2. References.* Section 303(a)(1) of the Social Security Act (SSA) and UIPL 09-98, issued on January 12, 1998 (63 FR 6774, 6779 (February 10, 1998)).
*3. Background.* During economic downturns, State revenues decline while demands for UI services increase. As a result of declines in State revenues, States face budget constraints and some may impose hiring freezes or other personnel actions such as furloughs on a state-wide basis. When applied to the UI program, these actions will likely have a detrimental effect on unemployed workers and businesses and result in decreased performance against Federal standards.
UIPL 09-98 expresses the Department's interpretation of the Federal UI law requirements as applied to these state-wide personnel actions. In brief, UIPL 09-98 provides that any state-wide personnel action that does not take into account the needs of the UI program is not a “method of administration” for assuring the proper and prompt delivery of UI services consistent with Section 303(a)(1), SSA. If the UI program is not exempted from such state-wide actions, the UIPL requires States to demonstrate to the Department that it has adequately addressed the UI program's needs.
A copy of UIPL 09-98 is attached.
*4. Action.* States are to address state-wide personnel actions applied to the UI program consistent with UIPL 09-98.
*5. Inquiries.* Inquiries should be directed to your Regional Office.
*6. Attachment.* UIPL 09-98.
**Attachment I**
**UIPL 09-98**
UIPL 09-98 was published in the *Federal Register* , Volume 63, No. 27 on February 10, 1998 and may be found at: *http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?IPaddress=frwais.access.gpo.gov&dbname=1998_register&docid=98-3341-filed.pdf* .
Dated: This 11th day of August, 2009.
Jane Oates,
Assistant Secretary of Labor, Employment and Training Administration.