(a) Purpose. (1) Section 303(a)(1) of the Social Security Act
requires, for the purposes of title III of that act, that a State
unemployment compensation law include provision for methods of
administration of the law that are reasonably calculated to insure the
full payment of unemployment compensation when determined under the
State law to be due to claimants. The standard in this part is issued to
implement section 303(a)(1) in regard to promptness in the payment of
unemployment benefits to eligible claimants.
(2) Although the standard applies to the promptness of all benefit
payments and the criteria apply directly to the promptness of first
benefit payments, it is recognized that adequate performance is
contingent upon the prompt determination of eligibility by the State as
a condition for the payment or denial of benefits. Accordingly, implicit
in prompt performance with respect to benefit payments is the
corresponding need for promptness by the State in making determinations
of eligibility. However, applicable Federal laws provide no authority
for the Secretary of Labor to determine the eligibility of individuals
under a State law.
(b) Scope. (1) The standard in this part applies to all State laws
approved by the Secretary of Labor under the Federal Unemployment Tax
Act (section 3304 of the Internal Revenue Code of 1954, 26 U.S.C. 3304),
and to the administration of the State laws.
(2) The standard specified in Sec. 640.4 applies to all claims for
unemployment compensation. The criteria for State compliance in
Sec. 640.5 apply to first payments of unemployment compensation under
the State law to eligible claimants following the filing of initial
claims and first compensable claims.
