(a) This standard is responsive to the overriding concern of the
U.S. Supreme Court in California Department of Human Resources v. Java,
402 U.S. 121 (1971), and that of other courts with delay in payment of
unemployment compensation to eligible individuals, including delays
caused specifically by the adjudication process. The standard seeks to
assure that all administrative appeals affecting benefit rights are
heard and decided with the greatest promptness that is administratively
feasible.
(b) Sections 303(a) (1) and (3) of the Social Security Act require,
as a condition for the receipt of granted funds, that State laws include
provisions for methods of administration reasonably calculated to insure
full payment of unemployment compensation when due, and opportunity for
a fair hearing for all individuals whose claims for unemployment
compensation are denied. The Secretary has construed these provisions to
require, as a condition for receipt of granted funds, that State laws
include provisions for hearing and deciding appeals for all unemployment
insurance claimants who are parties to an administrative benefit appeal
with the greatest promptness that is administratively feasible. What is
the greatest promptness that is administratively feasible in an
individual case depends on the facts and circumstances of that case. For
example, the greatest promptness that is administratively feasible will
be longer in cases that involve interstate appeals, complex issues of
fact or law, reasonable requests by parties for continuances or
rescheduling of hearings or other unforeseen and uncontrollable factors
than it will be for other cases.
(c) In addition, the Secretary has construed section 303(b)(2) of
the Social Security Act as requiring States to comply substantially with
the required provisions of State law. The Secretary considers as
substantial compliance the issuance of minimum percentages of first
level benefit appeal decisions within the periods of time specified in
Sec. 650.4.
(d) Although the interpretation of Federal law requirements in
Sec. 650.3 below applies to both first and second level administrative
benefit appeals, the criteria for review of State compliance in
Sec. 650.3(b) apply only to first level benefit appeals.
