Learn more about the Labor and Employment Group at Schiff Hardin. Attorneys In This Practice Thurston C. Bailey Eric L. Barnum Howard R. Barron Wendi J. Berkowitz Max G. Brittain Jr. William J. Carroll Ashley G. Eddy Nicole Finitzo Larry B. Garrett Stephen M. Hankins Victoria Hartanto Valarie Hays Charlene Q. Kalebic Bita A. Karabian Paula M. Ketcham Matthew D. Lahey Neil Lloyd Catherine M. Masters Ralph A. Morris Marc L. Silverman Henry W. Sledz Jr. Patricia Costello Slovak Drahcir M. Smith Julie Furer Stahr Kathleen A. Stimeling Catherine H. Thompson Richard L. Verkler Nora Kersten Walsh Tamera M. Woodard Schiff Hardin Offices One Atlantic Center, Suite 2300 1201 West Peachtree Atlanta, GA 30309 225 Franklin Street, Suite 2600  Boston, MA 02110  233 S Wacker Drive Suite 6600 Chicago, IL 60606 One Westminster Place Suite 200 Lake Forest, IL 60045 900 Third Avenue New York, NY 10022 One Market, Spear Tower 32nd Floor San Francisco, CA 94105 1666 K Street, NW Suite 300 Washington, DC 20006 - - - - - - - - - Join our mailing list. Forward this alert to a friend or colleague.

Schiff Hardin Labor and Employment Alert

Workers Who Have Been Discharged Due to Foreign Trade Are Now Entitled to Greater Benefits

By Matthew D. Lahey

The Trade Adjustment Assistance ("TAA") program, established under the Trade Act of 1974, includes numerous benefits for those workers who lose their jobs due to foreign trade. Now, as a part of the American Recovery and Reinvestment Act of 2009, the U.S. Department of Labor ("DOL") has expanded its TAA program and will provide increased benefits to those workers who qualify. Essentially, this governmental program provides a way for qualified employees to attain enhanced post-employment benefits over a longer period of time.

The TAA Program's Enhanced Benefits

Workers who lose their jobs due to foreign trade and file TAA petitions on or after May 18, 2009 are eligible to receive expanded TAA benefits. These benefits include:

• Up to 130 weeks of cash payments, known as trade readjustment allowances ("TRAs") for workers enrolled in full-time training (previously capped at 104 weeks), or up to 156 weeks of cash payments for workers enrolled in remedial training (previously capped at 130 weeks)
• Enhanced job search and relocation allowances — up to 100 percent of costs (previously set at 90 percent), not to exceed certain statutory limits
• Training services
• Health coverage tax credits ("HCTCs") covering 80 percent of an employee's monthly qualifying health premium (previously set at 65 percent)
• Enhanced flexibility in the administration of reemployment trade adjustment assistance, which is available to certain workers at least 50 years of age

The New TAA Program Also Covers More Workers

The scope of the TAA program also has been expanded. The TAA program now covers a number of foreign trade related layoffs that would not have been covered previously, including workers laid off by public agencies; companies that provide services; companies that supply testing, packaging, maintenance and transportation services to companies with TAA-certified workers; and companies that shift production to any foreign country.

Applying for the Enhanced Benefits

Any petition for TAA certification received by the DOL on or after May 18, 2009 will be analyzed under the new program and will be eligible for expanded benefits. Petitions that were filed prior to May 18, 2009 will be processed under the old program. However, petitioners who have not yet received a determination from the DOL may withdraw their existing petition and file a new one. It is important to remember that a TAA certification does not cover any worker who was laid off more than one year prior to the filing of the petition. Therefore, withdrawing and filing a new petition may result in the exclusion of some workers who would not have been excluded under the old petition. Petitioners who were denied coverage under the old program may reapply under the new eligibility rules, provided the petition is still timely. Lastly, the health coverage tax credit increase goes into effect beginning in May 2009, and applies to all petitioners, regardless of when the petition was filed.

If you have any questions about the contents of this article, please contact any attorney in Schiff Hardin's Labor and Employment group.

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