DIRECTIVE	:	UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 120-83
TO	:	ALL REGIONAL ADMINISTRATORS
FROM	:	ROYAL DELLINGER Administrator for Regional Management
SUBJECT	:	DOL Enforcement of Coverage of Private Schools not Directly Affiliated with a Church

1. Purpose. To express the position of Employment and Training Administration (ETA) that it would not be appropriate to intiate conformity proceedings against States on an issue of exemption of schools with a religious orientation until resolution of constitutional challenges.

2. References. Section 3309(a)(1) and 3309(b)(1), FUTA; and UIPL 2-82.

3. Background. Church-related schools affiliated with a church are deemed exempt, pursuant to Section 3309(b)(1), FUTA, from mandatory coverage of nonprofit organizations. Nonpublic schools with a religious orientation but no church affiliation are not exempt from coverage required by Section 3309(a)(1), FUTA. Their coverage under State law is, however, under constitutional challenge.

4. ETA Position. Until the constitutional issue is definitely resolved, it would not be appropriate to initiate conformity proceedings against States on this matter.

5. Action Required. RAs are requested to inform their SESAs of ETA's position.

6. Inquiries. Direct questions to Ted Wagman on 8-376-7308.