In reply refer
Bureau of Employment Security
Washington 25, D.C,
    Unemployment Insurance Program
Letter No. 291
July 1, 1952













Adoption of Uniform Interpretation of the Definition of Employment With Respect to Service Performed Within and Without a State



A statement of principles for applying the statutory provisions on localization of work to actual situations in making coverage determinations was sent for comment to all State agencies with Unemployment Insurance Porgram Letter No. 273. The comments received from State agencies were overwhelmingly in favor of adopting the recommended principles. The replies were discussed with the Interstate Benefit Payments Committee at its April 1952 meeting, and the statement is now being reissued, with minor changes as agreed on by the Bureau and the Committee. We ask that all State agencies adopt it, and put it into operation as soon as possible.

The attached statement, as revised, has been strengthened by:

(1) Pointing out that a State agency must determine whether the application of a test results in coverage under its law, or under the law of some other State, before deciding that the test does not apply and before using the next test.

(2) Adding a fourth illustration to the types of factors to be considered in determining whether service is incidental or transitory (i.e., is the work performed outside the State of the same nature as, or is it different from, the work performed within the State).

(3) Suggesting that, while no fixed length of time can be used to determine whether service performed outside the State is incidental to that within the State, the calendar year can be used as a guide, taking into consideration also the circumstances under which the work is performed.

Although some question was raised concerning coverage of musicians, the majority of State agencies did not disagree with the special criteria suggested for determining the State of coverage of "name" bands when the leader is held to be the employer, and no change is made in the method recommended.

If any questions arise in applying to specific cases the principles recommended in the statement, please send them to the Bureau as a clearing house so that we may clarify and revise the statement as necessary to keep it abreast of actual situations. We appreciate the help that has been given us by the State agencies in developing the statement, and we hope that it will be useful in reducing differences in interpretation on coverage questions. After there has been sufficient experience under these principles, we shall incorporate them in the Employment Security Manual.

Please let us know, through the appropriate regional office, when you adopt the principles recommended and, as provided in the Employment Security Manual, part I, sections 1209 and 1260, send us the required number of copies of any policy statement procedures, and training or other material which you issue on this subject.

    Sincerely yours,
    Robert C. Goodwin