Federal Standards in Unemployment Insurance

Some of the most vigorous arguments during meetings of the Federal Advisory Council of the Bureau of Employment Security have concerned federal standards.' "Federalizers" was the name attached by industry groups to those advocating change in existing standards, and labor groups strongly denounced industry members of the Council for insisting that existing federal standards are sufficient. Nor did industry members hesitate to condemn the Secretary of Labor, the Director of the Bureau of Employment Security and other Bureau employees for suggesting legislation to strengthen federal standards. Discussions of the subject at Council meetings were never free from emotion. Yet an unemotional re-examination of the question of federal standards is certainly in order.

This article will attempt such a re-examination. A discussion of the present standards and how they have been changed since the enactment of the Social Security Law will be followed by a history of the use of the present standards in enforcing federal will upon recalcitrant states. Some proposals for changing standards will then be considered. Finally, an attempt will be made to evaluate the arguments which are given both by advocates of change and by those who think the status quo is adequate.