Unemployment Compensation for Dislocated Workers Act

Unemployment Compensation for Dislocated Workers Act - Allows States to enter into agreements with the Secretary of Labor under which the State agency will make payments of Federal unemployment compensation for dislocated workers to individuals who are participating in a job training program for dislocated workers under title III of the Job Training Partnership Act. Requires such individuals to have exhausted all rights to unemployment compensation under State, Federal, or Canadian law. Limits such payments to a maximum period of ten weeks of unemployment which begin in the individual's period of eligibility. Prohibits such payments to any individual for any week of unemployment which begins more than two years after the end of the benefit year for which the individual exhausted rights to regular compensation.

Requires that such Federal-State agreements provide that the State establish a Federal unemployment compensation for dislocated workers account for a benefit year for each individual who files an application for such compensation. Provides that the amount in such account shall be equal to ten times the individual's average weekly benefit amount.

Provides that each State which has entered into such an agreement shall be paid an amount equal to 100 percent of the Federal unemployment compensation for dislocated workers paid to individuals by the State pursuant to such agreement.

Provides that funds in the extended unemployment compensation account of the Unemployment Trust Fund shall be used for making such payments to States, through transfers of such funds to the State account in the Fund. Authorizes appropriations to the extended unemployment compensation account to carry out the purposes of this Act. Authorizes appropriations to the general fund of the Treasury to assist States in meeting the costs of administration of agreements under this Act.

Sets forth provisions relating to fraud and overpayments under this Act.