# § 8503. Compensation absent State agreement
**(a)** In the case of a Federal employee whose Federal service and Federal wages are assigned under section 8504 of this title to a State which does not have an agreement with the Secretary of Labor, the Secretary, under regulations prescribed by him, shall, on the filing by the Federal employee of a claim for compensation under this subsection, pay compensation to him in the same amount, on the same terms, and subject to the same conditions as would be paid to him under the unemployment compensation law of the State if his Federal service and Federal wages had been included as employment and wages under that State law. However, if the Federal employee, without regard to his Federal service and Federal wages, has employment or wages sufficient to qualify for compensation during the benefit year under that State law, then payments of compensation under this subsection may be made only on the basis of his Federal service and Federal wages.
**(b)** A Federal employee whose claim for compensation under subsection (a) of this section is denied is entitled to a fair hearing under regulations prescribed by the Secretary. A final determination by the Secretary with respect to entitlement to compensation under this section is subject to review by the courts in the same manner and to the same extent as is provided by section 405(g) of title 42.
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**Source Credit**: (Pub. L. 89–554, Sept. 6, 1966, 80 Stat. 587; Pub. L. 90–83, § 1(87), Sept. 11, 1967, 81 Stat. 218; Pub. L. 94–566, title I, § 116(e)(2), Oct. 20, 1976, 90 Stat. 2673.)
| Derivation | U.S. Code | Revised Statutes andStatutes at Large |
| --- | --- | --- |
| | 42 U.S.C. 1363. | Sept. 1, 1954, ch. 1212, § 4(a) “Sec. 1503”, 68 Stat. 1132. |
| | | Sept. 13, 1960, Pub. L. 86–778, § 542(b)(1)(B), (C), (c)(1), 74 Stat. 986. |
In subsections (a) and (b), the words “with respect to unemployment after ” are omitted as obsolete.
In subsection (b), the last sentence is added on authority of the last sentence of former section 1362(b), which section is carried into section 8502.
In subsection (c), the words “with respect to final decisions of the Secretary of Health, Education, and Welfare under subchapter II of this chapter” are omitted as unnecessary.
Standard changes are made to conform with the definitions applicable and the style of this title as outlined in the preface to the report.
| Section of title 5 | Source (U.S. Code) | Source (Statutes at Large) |
| --- | --- | --- |
| 8503(b) | [Uncodified]. | Sept. 13, 1960, Pub. L. 86–778, § 542(a)(1), 74 Stat. 985. |
This section also amends to eliminate certain provisions that are now obsolete. The obsolete provisions were based on section 542(b)(1)(B) and (C) of the act of , , that amended section 1503 (a) and (b) of the Social Security Act effective , but only in the case of weeks of unemployment beginning before . Any existing rights are preserved by section 7 of this bill.
## Editorial Notes
### Amendments
1976—Subsecs. (b), (c). , redesignated subsec. (c) as (b) and substituted “subsection (a)” for “subsection (a) or (b)”. Former subsec. (b), which made special provision for Federal employees whose Federal service and Federal wages were assigned to the Virgin Islands, was struck out.
Subsec. (d). , struck out subsec. (d) which authorized the Secretary to use the personnel and facilities of the agency in the Virgin Islands cooperating with the United States Employment Service.
## Statutory Notes and Related Subsidiaries
### Effective Date of 1976 Amendment
Amendment by applicable with respect to benefit years beginning on or after later of , or first day of first week for which compensation becomes payable under an unemployment compensation law of Virgin Islands which is approved by Secretary of Labor under , Internal Revenue Code, see , set out as a note under .