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Conformity: Methods of Administration - Payment When Due

Overview

Section 303(a)(1), SSA, requires, as a condition for a state to receive administrative grants for its UC program, that the law of the state provide for "such methods of administration … as are found by the Secretary of Labor to be reasonably calculated to insure full payment of unemployment compensation when due."

This means that states must have "methods of administration" to ensure that eligible claimants are paid UC promptly when determined eligible and claimants who are not eligible are not paid UC. In addition, states must have methods of administration to protect against improper payments and fraud. Section 303(a)(1), SSA, has also been interpreted to require that state laws provide for reasonable means to enforce employer liabilities to the state unemployment fund so that UC may be paid when due.

This requirement, along with other sections of Federal UC law that are discussed elsewhere, is the basis for the Claims Filing Standard, Claims Determination Standard, and Standard for Fraud and Overpayment Detection. (These standards are published as Appendices A, B, and C to 20 CFR Parts 614, 617, and 625.) It is also the basis for the Benefit Payment Promptness Standard (20 CFR Part 640) and the Appeals Promptness Standard (20 CFR Part 650).

Frequently Asked Questions

What does when due mean?

In its 1971 decision, California Department of Human Resources Development v. Java, the U.S. Supreme Court held that the words "when due" in §303(a)(1) mean "at the earliest stage of unemployment that such payments [are] administratively feasible after giving both the worker and the employer an opportunity to be heard."

Resources:

UIPL 1145. Discusses implementation of 1971 Supreme Court Java decision and the "when due" requirements.

UIPL 04-01. Discusses payment of compensation and timeliness of determinations during a continued claim.

UIPL 35-95. Discusses that the Department's overall position is to promote methods of administration that ensure that UI applicants are afforded prompt and efficient service.

UIPL 15-01. Requires the state to make a reasonable attempt to contact employers, claimants, or third parties to obtain information.