On December 8, 2010, President Obama signed the Claims Resolution Act into law (Public Law 111-291) which
amended section 453A of the Social Security Act and requires that employers report to the State Directory of New Hires
(SDNH) the date that an employee first performs services for pay. Therefore, you must report the
hire date as the date that the employee first performs service for pay; not a hire date you have entered in your
payroll or personnel system. This is an anti-fraud measure aimed at reducing the number of overpayments to
individuals receiving UI benefits. The new SDNH reporting requirements were effective June 8, 2011.
Also on October 21, 2011, President Obama signed the Trade Adjustment Assistance Extension Act of 2011
(Public Law 112-40), which amends section 453A (a)(2) of the Social Security Act. The amendment defines
a Newly Hired Employee as: An employee who has not previously been employed by the employer or an employee
who was previously employed by the employer but has been separated from such prior employment for at least 60
consecutive days. The amendment is effective April 21, 2012.
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