The Department of Labor recently proposed a new rule to limit unemployment compensation (UC) to aliens working in the United States.  The proposed limitation would augment the Social Security Act (SSA) and the Federal Unemployment Tax Act (FUTA) by placing restrictions on states’ UC spending to only those unemployed who are able and available (A&A) to work.  The A&A requirement states that an unemployed person must be able to work and available for work, provided that there is a labor market open in which they can participate. 

Because the A&A requirement is not made explicit under federal law, the Department of Labor deemed it necessary to define its purpose and to propose its implementations.  Examples of those who would be denied UC are those who refuse government-sponsored re-employment programs or who are unwilling to re-enter the work market.  The principles underlying UC are that a worker can be assured of a reserve of funds during employment from which they can withdraw necessary funds should they become unemployed and unable to find other work.  To be eligible for UC, an individual must be able to accept an offer of work, available to accept that offer and cannot refuse the offer.  State laws differ regarding the requirements for UC.

Concerning an alien’s right to receive UC, the Department of Labor expects that they also meet the A&A requirements.  Furthermore, the alien must be legally permitted to work in the United States, according to the regulations of the United States Citizenship and Immigration Services, in order to be considered “available” for work.  Any alien not meeting the requirements of the USCIS will be considered unavailable for work, and, thus, denied unemployment compensation.  The rule does not address particular statuses of aliens, nor does it require proof that the alien is authorized to work in the U.S. 

For further information on this proposal, see http://www.workforcesecurity.doleta.gov.