STC Guidance And Model Legislation

100% Reinbursement

Get 100% Reimbursement of STC Benefits Paid:

Note: The reimbursement of STC benefits is subject to sequestration. Please contact ETA for the percentage of reimbursement for the applicable Fiscal Year.

If your state was administering an STC Program on February 22, 2012:

  • If your state was administering an STC program on February 22, 2012, and the state’s STC law does not conform to the new federal definition of STC, your state can still receive 100% reimbursement of STC benefits paid. Reimbursement is available for up to 130 weeks and, for most states, until the week ending on August 23, 2014.
  • Your state can continue to receive the 100% reimbursement if your state amends its STC law to conform to the new federal definition of STC by August 22, 2014. Your state can receive up to 156 weeks of reimbursement (which includes the weeks reimbursed prior to conformity) in most states, until the week of unemployment ending August 22, 2015.
  • Your state enters into an agreement with the Secretary of Labor to receive the 100% reimbursement.

For more information on the 100% Reimbursement see Unemployment Insurance Program Letter No. 22-12.

For information on the Model Language refer to UIPL No. 22-12, Change 1, and UIPL No. 22-12, Change 2.

If your State was not administering an STC Program on February 22, 2012:

  • If your state was not administering an STC program at the time of the Act, your state can enact a law conforming to the new federal definition of STC and then receive 100% reimbursement of STC benefits paid.  Reimbursement is available for up to 156 week and, in most states, until the week of unemployment ending August 22, 2015.
  • Your state enters into an agreement with the Secretary of Labor to receive the 100% reimbursement.

For more information on the 100% Reimbursement see Unemployment Insurance Program Letter No. 22-12.

For information on the Model Language refer to UIPL No. 22-12, Change 1, and UIPL No. 22-12, Change 2.


50% Reinbursement

Try out STC - Federal STC program and Get 50% Reimbursement of STC Benefits Paid:

Note: The reimbursement of STC benefits is subject to sequestration. Please contact ETA for the percentage of reimbursement for the applicable Fiscal Year.

Federal STC Program:

  • If you don’t have STC in your state law, you can still try it out and receive 50% federal reimbursement of STC benefits paid.  Reimbursement is up to 104 weeks and available until May 24, 2014.  The STC employer pays the other 50% of the STC benefits paid.
  • Your state enters into an agreement with the Secretary of Labor to operate a Federal STC program (the operation of the Federal STC program must conform to the new federal definition) and receive reimbursement.

Transitioning from Federal STC Program to State STC Program:

  • If your state later enacts an STC law which conforms to the new federal definition of STC, your state can receive the 100% reimbursement of STC benefits after the effective date of the new STC law. Reimbursement is up to 156 weeks until August 22, 2015.  Weeks reimbursed under the Federal STC program count towards the 156 weeks maximum.  
  • You state must enter into an agreement with the Secretary of Labor to receive the 100% reimbursement. 

For more information about the Federal STC program see Unemployment Insurance Program Letter No. 22-12, page 11, section 8, and Unemployment Insurance Program Letter No. 03-13


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Implement, Improve and Promote your STC Program with DOL Grants:

Federal grant funds are available for program implementation or improved administration, or for program promotion and employer enrollment, if your state’s STC law conforms to the new federal definition of STC, your STC program is not subject to discontinuation, and the conforming STC law is scheduled to take effect no later than 12 months from the Secretary’s certification of grant approval.

Find out how much grant funding is available for your state!

For complete grant funding information see Unemployment Insurance Program Letter No. 27-12. See also, Unemployment Insurance Program Letter No, 22-12, page 12, section 9.


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