An Act to extend and improve the unemployment compensation program
PL 83-767 (H.R.9709), enacted 09/01/1954

1130 
PUBLIC LAW 767-SEPT. 1, 1954 
[68 ST A T . 
Repeals. 
63 Stat. 532. 
42 u s e 214a. 
purposes, or used principally within the confines of a regularly estab-
lished military post, camp, or depot, and any vehicle regularly used 
by an agency in the performance of investigative, law enforcement, or 
intelligence duties if the head of such agency determines that exclusive 
control of such vehicle is essential to the effective performance of such 
duties." 
SEC. 5. Section 474 of title 14 of the United States Code and the 
proviso of section 204 of the Act of July 31, 1953 (67 Stat. 257), are 
hereby repealed. 
Approved September 1, <1954. 
September 1, 1954 
[H. R. 9709] 
Public Law 767 
- .. 
.; H,,,. 
CHAPTER 1212 
AN ACT 
To extend and improve the unemployment compensation program. 
U n e m p 1 oyment 
compensation. 
Number o f e m-
ployees. 
68A Stat. 447. 
68A Stat. 440. 
Reduced rates. 
New employers. 
Quarterly install-
ments. 
68A Stat. 758. 
49 Stat. 620. 
42 u s e 1305. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States 
of America 
in Congress assembled, That, effective 
with respect to services performed after December 31, 1955, section 
3306 (a) of the Internal Revenue Code of 1954 is hereby amended 
by striking out "eight or more" and inserting in lieu thereof "4 or 
more". 
SEC. 2. Effective with respect to rates of contributions for periods 
after December 31, 1954, section 3303 (a) of the Internal Revenue 
Code of 1954 is hereby amended by adding after paragraph (3) the 
following: 
"For any person (or group of persons) who has (or have) not been 
subject to the State law for a period of time sufficient to compute the 
reduced rates permitted by paragraphs (1), (2), and (3) of this sub-
section on a 3-year basis, the period of time required may be reduced 
to the amount of time the person (or group of persons) has (or have) 
had experience under or has (or have) been subject to the State law, 
whichever is appropriate, but in no case less than 1 year immediately 
preceding the computation date." 
SEC. 3. Effective w4th respect to the taxable year 1955 and suc-
ceeding taxable years, section 6152 (a) (3) of the Internal Revenue 
Code of 1954 is hereby repealed. 
SEC. 4. (a) The Social Security Act, as amended, is further amended 
by adding after title X I V thereof the following new title: 
"TITLE 
XV—UNEMPLOYMENT 
COMPENSATION 
FOR 
~ 
FEDERAL 
EMPLOYEES 
22 u s e 801 note. 
6 8 A Stat. 9 3 9, 
453. 
"DEFINITIONS 
"SEC. 1501. When used in this title— 
"(a) The term 'Federal service' means any service performed after 
1952 in the employ of the United States or any instrumentality thereof 
which is wholly owned by the United States, except that the term 
shall not include service performed— 
"(1) by an elective officer in the executive or legislative branch 
of the Government of the United States; 
"(2) as a member of the Armed Forces of the United States; 
"(3) by foreign service personnel for whom special separation 
allowances are provided by the Foreign Service Act of 1946 (60 
Stat. 999) ; 
"(4) prior to January 1, 1955, for the Bonneville Power 
Administrator if such service constitutes employment under sec-
tion 1607 (m) of the Internal Revenue Code of 1939; 
68 S T A T . ] 
PUBLIC LAW 767-SEPT. 1, 1954 
1131 
"(5) outside the United States by an individual who is not a 
citizen of the United States; 
"(6) by any individual as an employee who is excluded by 
Executive order from the operation of the Civil Service Retire- 
5^us*c*69f note, 
ment Act of 1930 because he is paid on a contract or fee basis; 
"(7) by any individual as an employee receiving nominal 
compensation of $12 or less per annum; 
"(8) in a hospital, home, or other institution of the United 
States by a patient or inmate thereof ; 
"(9) by any individual as an employee included under section 
2 of the Act of August 4,1947 (relating to certain interns, student 
^^ ^*^*- '^^^• 
nurses, and other student employees of hospitals of the Federal 
Government; 5 U. S. C , sec. 1052) ; 
" (10) by any individual as an employee serving on a temporary 
basis in case of fire, storm, earthquake, flood, or other similar 
emergency; 
"(11) by any individual as an employee who is employed 
under a Federal relief program to relieve him from unem-
ployment ; 
"(12) as a member of a State, county, or community committee 
under the Production and Marketing Administration or of any 
other board, council, committee, or other similar body, unless 
such board, council, committee, or other body is composed exclu-
sively of individuals otherwise in the full-time employ of the 
United States; or 
"(13) by an officer or a member of the crew on or in connection 
with an American vessel (A) owned by or bareboat chartered to 
the United States nd (B) whose business is conducted by a gen-
eral agent of tht Secretary of Commerce, if contributions on 
account of such service are required to be made to an unemploy-
ment fund under a State unemployment compensation law pur-
suant to section 1606 (g) of the Internal Revenue Code of 1939 
or section 3305 (g) of the Internal Revenue Code of 1954." 
^^^ s*°*- *'^^-
For the purpose of paragraph (5) of this subsection, the term 'United 
States' when used in a geographical sense means the States, Alaska, 
Hawaii, the District of Columbia, Puerto Rico, and the Virgin Islands. 
"(b) The term 'Federal wages' means all remuneration for Federal 
service, including cash allowances and remuneration in any medium 
other than cash. 
"(c) The term 'Federal employee' means an individual who has 
performed Federal service. 
"(d) The term 'compensation' means cash benefits payable to indi-
viduals with respect to their unemployment (including any portion 
thereof payable with respect to dependents). 
"(e) The term 'benefit year' means the benefit year as defined in the 
applicable State unemployment compensation law; except that, if 
such State law does not define a benefit year, then such term means 
the period prescribed in the agreement under this title with such State 
or, in the absence of an agreement, the period prescribed by the 
Secretary. 
"(f) The term'Secretary'means the Secretary of Labor. 
ii COMPENSATION 
FOR 
FEDERAL 
EMPLOYEES 
UNDER 
STATE 
AGREEMENTS 
"SEC. 1502. (a) The Secretary is authorized on behalf of the United 
States to enter into an agreement with any State, or with the agency 
administering the unemployment compensation law of such State, 
under which such State agency (1) will make, as agent of the United 
1132 
PUBLIC LAW 767-SEPT. 1, 1954 
[68 S T A T . 
States, payments of compensation, on the basis provided in subsec-
tion (b) of this section, to Federal employees, and (2) will other-
wise cooperate with the Secretary and with other State agencies in 
making payments of compensation under this title. 
"(b) Any such agreement shall provide that compensation will 
be paid by the State to any Federal employee, with respect to unem-
ployment after December 31, 1954, in the same amount, on the same 
terms, and subject to the same conditions as the compensation which 
would be payable to such employee under the unemployment com-
pensation law of the State if the Federal service and Federal wages 
of such employee assigned to such State under section 1504 had been 
included as employment and wages under such law. 
"(c) Any deterhiination by a State agency with respect to entitle-
ment to compensation pursuant to an agreement under this section 
shall be subject to review in the same manner and to the same extent 
as determinations under the State unemployment compensation law, 
and only in such manner and to such extent. 
"(d) Each agreement shall provide the terms and conditions upon 
which the agreement may be amended or terminated. 
"COMPENSATION FOR FEDERAL EMPLOYEES IN ABSENCE OF STATE 
AGREEMENT 
"SEC. 1503. (a) In the case of a Federal employee whose Federal 
service and Federal wages are assigned under section 1504 to a State 
which does not have an agreement under this title with the Secretary, 
the Secretary, in accordance witli regulations prescribed by him, shall, 
upon the filing by such employee of a claim for compensation under 
this subsection, make payments of compensation to him with respect 
to unemployment after December 31, 1954, in the same amounts, on 
the same terms, and subject to the same conditions as would be paid 
to him under the unemployment compensation law of such State if 
such employee's Federal service and Federal wages had been included 
as employment and wages under such law, except that if such employee, 
without regard to his Federal service and Federal wages, has employ-
ment or wages sufficient to qualify for any compensation during the 
benefit year under the law of such State, then payments of compen-
sation under this subsection shall be made only on the basis of his 
Federal service and Federal wages. 
"(b) In the case of a Federal employee whose Federal service and 
Federal wages are assigned under section 1504 to Puerto Rico or the 
Virgin Islands, the Secretary, in accordance with regulations pre-
scribed by him, shall, upon the filing by such employee of a claim for 
compensation under this subsection, make payments of compensation 
to him with respect to unemployment after December 31, 1954, in the 
same amounts, on the same terms, and subject to the same conditions 
as would be paid to him under the unemployment compensation law 
of the District of Columbia if such employee's Federal service and 
Federal wages had been included as employment and wages under 
such law, except that if such employee, without regard to his Federal 
service and Federal wages, has employment or wages sufficient to 
qualify for any compensation during the benefit year under such law, 
then payments of compensation under this subsection shall be made 
only on the basis of his Federal service and Federal wages. 
"(c) Any Federal employee whose claim for compensation under 
subsection (a) or (b) of this section has been denied shall be entitled 
to a fair hearing in accordance with regulations prescribed by the 
Secretary. 
Any final determination by the Secretary with respect to 
68 S T A T . ] 
PUBLIC LAW 7 6 7 - S E P T . 1, 1954 
1133 
entitlement to compensation under this section shall be subject to re-
view by the courts in the same manner and to the same extent as is pro-
vided in section 205 (g) with respect to final decisions of the Secretary 
4^ ulc 4
o
^
5
^
(
g
*
)
. 
of Health, Education, and Welfare under title II. 
"(d) The Secretary may utilize for the purposes of this section the 
personnel and facilities of the agencies in Puerto Rico and the Virgin 
Islands cooperating with the United States Employment Service 
under the Act of June 6, 1933 (48 Stat. 113), as amended, and may 
29usc49efseq. 
delegate to officials of such agencies any authority granted to him by 
this section whenever the Secretary determines such delegation to be 
necessary in carrying out the purposes of this title. 
For the purpose 
of payments made to such agencies under such Act, the furnishing of 
such personnel and facilities shall be deemed to be a part of the admin-
istration of the public employment offices of such agencies. 
"STATE TO WHICH FEDERAL SERVICE AND WAGES ARE ASSIGNABLE 
"SEC. 1504. In accordance with regulations prescribed by the Sec-
retary, the Federal service and Federal wages of an employee shall be 
assigned to the State in which he had his last official station in Fed-
eral service prior to the filing of his first claim for compensation for 
the benefit year, except that— 
"(1) if, at the time of the filing of such first claim, he resides 
in another State in which he performed, after the termination of 
such Federal service, service covered under the unemployment 
compensation law of such other State, such Federal service and 
Federal wages shall be assigned to such other State; 
"(2) if his last official station in Federal service, prior to the 
filing of such first claim, was outside the United States, such 
Federal service and Federal wages shall be assigned to the State 
where he resides at the time he files such first claim; and 
"(3) if such first claim is filed while he is residing in Puerto 
Rico or the Virgin Islands, such Federal service and Federal 
wages shall be assigned to Puerto Rico or the Virgin Islands. 
"TREATMENT or ACCRUED ANNUAL LEAVE 
"SEC. 1505. For the purposes of this title, in the case of a Federal 
employee who is performing Federal service at the time of his separa-
tion from employment by the United States or any instrumentality 
thereof, (1) the Federal service of such employee shall be considered 
as continuing during the period, subsequent to such separation, with 
respect to which he is considered as having received payment of 
accumulated and current annual or vacation leave pursuant to any 
Federal law, and (2) subject to regulations of the Secretary concerning 
allocation over the period, such payment shall constitute Federal 
\Vages. 
"PAYMENTS TO STATES 
"SEC. 1506. (a) Each State shall be entitled to be paid by the United 
States an amount equal to the additional cost to the State of payments 
of compensation made under and in accordance with an agreement 
under this title which would not have been incurred by the State but 
for the agreement. 
"(b) In making payments pursuant to subsection (a) of this section, 
there shall be paid to the State, either in advance or by way of reim-
bursement, as may be determined by the Secretary, such sum as the 
Secretary estimates the State will be entitled to receive under this title 
for each calendar month, reduced or increased, as the case may be, by 
any sum by which the Secretary finds that his estimates for any prior 
1134 
PUBLIC LAW 767-SEPT. 1, 1954 
[68 STAT. 
calendar month were greater or less than the amounts which should 
have been paid to the State. Such estimates may be made upon the 
basis of such statistical, sampling, or other method as may be agreed 
upon by the Secretary and the State agency. 
" (c) The Secretary shall from time to time certify to the Secretary 
of the Treasury for payment to each State sums payable to such State 
under this section. The Secretary of the Treasury, prior to audit or 
settlement by the General Accounting Office, shall make payment to 
the State in accordance with such certification, from the funds for 
carrying out the purposes of this title. 
"(d) All money paid a State under this title shall be used solely 
for the purposes for which it is paid; and any money so paid which 
is not used for such purposes shall be returned, at the time specified 
in the agreement under this title, to the Treasury and credited to 
current applicable appropriations, funds, or accounts from which 
payments to States under this title may be made. 
"(e) An agreement under this title may require any officer or em-
ployee of the State certifying payments or disbursing funds pursuant 
to the agreement, or otherwise participating in its performance, to 
give a surety bond to the United States in such amount as the Secre-
tary may deem necessary, and may provide for the payment of the 
cost of such bond from funds for carrying out the purposes of this 
title. 
"(f) No person designated by the Secretary, or designated pur-
suant to an agreement under this title, as a certifying officer, shall, 
in the absence of gross negligence or intent to defraud the United 
States, be liable with respect to the payment of any compensation 
certified by him under this title. 
"(g) No disbursing officer shall, in the absence of gross negligence 
or intent to defraud the United States, be liable with respect to any 
payment by him under this title if it was based upon a voucher signed 
by a certifying officer designated as provided in subsection (f) of 
this section. 
4 2^u°s*c^5o'i et 
"(^) ^^^ ^^^ purpose of payments made to a State under title III, 
seq. 
administration by the State agency of such State pursuant to an agree-
ment under this title shall be deemed to be a part of the administra-
tion of the State unemployment compensation law. 
li INFORMATION 
"SEC. 1507. (a) All Federal departments, agencies, and wholly 
owned instrumentalities of the United States are directed to make 
available to State agencies which have agreements under this title 
or to the Secretary, as the case may be, such information with respect 
to the Federal service and Federal wages of any Federal employee 
as the Secretary may find practicable and necessary for the determi-
nation of such employee's entitlement to compensation under this 
title. 
Such information shall include the findings of the employing 
agency with respect to—-
"(1) whether the employee has performed Federal service, 
"(2) the periods of such service, 
"(3) the amount of remuneration for such service, and 
"(4) the reasons for termination of such service. 
The employing agency shall make the findings in such form and 
manner as the Secretary shall by regulations prescribe (which regula-
tions shall include provision for correction by the employing agency 
of errors or omissions). Any such findings which have been made 
in accordance with such regulations shall be final and conclusive for 
the purposes of sections 1502 (c) and 1503 (c). 
68 S T A T . ] 
PUBLIC LAW 7 6 7 - S E P T . 1, 1954 
1135 
"(b) The agency administering the unemployment compensation 
law of any State shall furnish to the Secretary such information as 
the Secretary may find necessary or appropriate in carrying out the 
provisions of this title, and such information shall be deemed reports 
required by the Secretary for the purposes of paragraph (6) of sub-
section (a) of section 303. 
'^"^^ '^'^^'^''-
ii-PENALTIES 
"SEC. 1508. (a) Whoever makes a false statement or representa-
tion of a material fact knowing it to be false, or knowingly fails to 
disclose a material fact, to obtain or increase for himself or for any 
other individual any payment authorized to be paid under this title 
or under an agreement thereunder shall be fined not more than $1,000 
or imprisoned for not more than one year, or both. 
"(b) (1) If a State agency or the Secretary, as the case may be, 
or a court of competent jurisdiction, finds that any person— 
"(A) has made, or has caused to be made by another, a false 
statement or representation of a material fact knowing it to be 
false, or has knowingly failed, or caused another to fail, to dis-
close a material fact, and 
"(B) as a result of such action has received any amount as 
compensation under this title to which he was not entitled, 
such person shall be liable to repay such amount to the State agency 
or the Secretary, as the case may be. In lieu of requiring the repay-
ment of any amount under this paragraph, the State agency or the 
Secretary, as the case may be, may recover such amount by deduc-
tions from any compensation payable to such person under this title 
during the two-year period following the date of the finding. 
Any 
such finding by a State agency or the Secretary, as the case may be, 
may be made only after an opportunity for a fair hearing, subject 
to such further review as may be appropriate under sections 1502 (c) 
and 1503 (c). 
"(2) Any amount repaid to a State agency under paragraph (1) 
shall be deposited into the fund from which payment was made. Any 
amount repaid to the Secretary under paragraph (1) shall be returned 
to the Treasury and credited to the current applicable appropriation, 
fund, or account from which payment was made. 
"REGULATIONS 
"SEO. 1509. The Secretary is hereby authorized to make such rules 
and regulations as may be necessary to carry out the provisions of 
this title. The Secretary shall insofar as practicable consult with 
representatives of the State unemployment compensation agencies 
before prescribing any rules or regulations which may affect the per-
formance by such agencies of functions pursuant to agreements under 
this title. 
"APPROPRIATIONS 
"SEC. 1510. There are hereby authorized to be appropriated out of 
any moneys not otherwise appropriated such sums as are necessary to 
carry out the provisions of this title." 
(b) Section 1606 (e) and section 1607 (m) of the Internal Revenue 
^^^ ^tat. 939. 
Code of 1939 are each hereby amended by inserting after "December 
31,1945," the following: "and before January 1, 1955,". 
(c) Effective with respect to services performed after December 
31,1954, section 3305 (e) and section 3306 (1) of the Internal Revenue 4s^3f ^ s*"*- ^^^ 
Code of 1954 are hereby repealed. 
Approved September 1, 1954.