Workforce Innovation and Opportunity Act; Notice of Proposed Rulemaking, 20689-20966 [2015-05530]
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Vol. 80
Thursday,
No. 73
April 16, 2015
Book 2 of 2 Books
Pages 20689–21150
Part III
Department of Labor
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Employment and Training Administration
20 CFR Parts 601, 651, 652 et al.
Workforce Innovation and Opportunity Act; Notice of Proposed Rulemaking;
Proposed Rules
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Federal Register / Vol. 80, No. 73 / Thursday, April 16, 2015 / Proposed Rules
DEPARTMENT OF LABOR
Employment and Training
Administration
20 CFR Parts 603, 651, 652, 653, 654,
658, 675, 679, 680, 681, 682, 683, 684,
685, 686, 687, and 688
[Docket No. ETA–2015–0001]
RIN 1205–AB73
Workforce Innovation and Opportunity
Act; Notice of Proposed Rulemaking
Employment and Training
Administration (ETA), Labor.
ACTION: Notice of Proposed Rulemaking
(NPRM).
AGENCY:
The Department of Labor
(DOL) is proposing, through rulemaking,
to implement titles I and III of the
Workforce Innovation and Opportunity
Act of 2014 (WIOA). Through these
regulations, the Department proposes to
implement job training system reform
and strengthen the workforce
investment system of the nation to put
Americans, particularly those
individuals with barriers to
employment, back to work and make the
United States more competitive in the
21st Century. This proposed rule
intends to provide guidance for
statewide and local workforce
investment systems that increase the
employment, retention and earnings of
participants, and increase occupational
skill attainment by participants, and as
a result, improve the quality of the
workforce, reduce welfare dependency,
and enhance the productivity and
competitiveness of the nation.
DATES: To be ensured consideration,
comments must be submitted in writing
on or before June 15, 2015.
ADDRESSES: You may submit comments,
identified by docket number ETA–
2015–0001, for Regulatory Information
Number (RIN) 1205–AB73, by one of the
following methods:
Federal e-Rulemaking Portal: https://
www.regulations.gov. Follow the Web
site instructions for submitting
comments.
Mail and hand delivery/courier:
Written comments, disk, and CD–ROM
submissions may be mailed to Adele
Gagliardi, Administrator, Office of
Policy Development and Research, U.S.
Department of Labor, 200 Constitution
Avenue NW., Room N–5641,
Washington, DC 20210.
Instructions: Label all submissions
with ‘‘RIN 1205–AB73.’’
Please submit your comments by only
one method. Please be advised that the
Department will post all comments
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SUMMARY:
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received that related to this NPRM on
https://www.regulations.gov without
making any change to the comments or
redacting any information. The https://
www.regulations.gov Web site is the
Federal e-rulemaking portal and all
comments posted there are available
and accessible to the public. Therefore,
the Department recommends that
commenters remove personal
information such as Social Security
Numbers (SSNs), personal addresses,
telephone numbers, and email addresses
included in their comments as such
information may become easily
available to the public via the https://
www.regulations.gov Web site. It is the
responsibility of the commenter to
safeguard personal information.
Also, please note that due to security
concerns, postal mail delivery in
Washington, DC may be delayed.
Therefore, the Department encourages
the public to submit comments on
https://www.regulations.gov.
Docket: All comments on this
proposed rule will be available on the
https://www.regulations.gov Web site
and can be found using RIN 1205–AB73.
The Department also will make all the
comments it receives available for
public inspection by appointment
during normal business hours at the
above address. If you need assistance to
review the comments, the Department
will provide appropriate aids such as
readers or print magnifiers. The
Department will make copies of this
proposed rule available, upon request,
in large print and electronic file on
computer disk. To schedule an
appointment to review the comments
and/or obtain the proposed rule in an
alternative format, contact the Office of
Policy Development and Research
(OPDR) at (202) 693–3700 (this is not a
toll-free number). You may also contact
this office at the address listed below.
Comments under the Paperwork
Reduction Act (PRA): In addition to
filing comments with ETA, persons
wishing to comment on the information
collection (IC) aspects of this rule may
send comments to: Office of Information
and Regulatory Affairs, Attn: OMB Desk
Officer for DOL–ETA, Office of
Management and Budget, Room 10235,
725 17th Street NW., Washington, DC
20503, Fax: 202–395–6881 (this is not a
toll-free number), email: OIRA_
submission@omb.eop.gov.
FOR FURTHER INFORMATION CONTACT:
Adele Gagliardi, Administrator, Office
of Policy Development and Research
(OPDR), U.S. Department of Labor,
Employment and Training
Administration, 200 Constitution
Avenue NW., Room N–5641,
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Washington, DC 20210, Telephone:
(202) 693–3700 (voice) (this is not a tollfree number) or 1–800–326–2577 (TDD).
SUPPLEMENTARY INFORMATION:
Preamble Table of Contents
I. Executive Summary
II. Acronyms and Abbreviations
III. Background
A. Workforce Innovation and Opportunity
Act Principles
B. Major Changes From Current Workforce
Investment Act of 1998
C. Rule Format
D. Legal Basis
IV. Section-by-Section Discussion of Proposal
A. Part 603—Federal-State Unemployment
Compensation Program
B. Part 675—Introduction to the
Regulations for the Workforce Innovation
and Opportunity Systems Under Title I
of the Workforce Innovation and Act
C. Part 679—Statewide and Local
Governance of the Workforce Innovation
and Opportunity System Under Title I of
the Workforce Innovation and
Opportunity Act
D. Part 680—Adult and Dislocated Worker
Activities Under Title I of the Workforce
Innovation and Opportunity Act
E. Part 681—Youth Activities Under Title
I of the Workforce Innovation and
Opportunity Act
F. Part 682—Statewide Activities Under
Title I of the Workforce Innovation and
Opportunity Act
G. Part 683—Administrative Provisions
Under Title I of the Workforce
Innovation and Opportunity Act
H. Part 684—Indian and Native American
Programs Under Title I of the Workforce
Innovation and Opportunity Act
I. Part 685—National Farmworker Jobs
Program Under Title I of the Workforce
Innovation and Opportunity Act
J. Part 686—The Job Corps Under Title I of
the Workforce Innovation and
Opportunity Act
K. Part 687—National Dislocated Worker
Grants
L. Part 688—Provisions Governing the
YouthBuild Program
M. Part 651—General Provisions Governing
the Federal-State Employment Service
System
N. Part 652—Establishment and
Functioning of State Employment
Services
O. Part 653—Services of the Employment
Service System
P. Part 654—Special Responsibilities of the
Employment Service System
Q. Part 658—Administrative Provisions
Governing the Employment Service
System
V. Rulemaking Analyses and Notices
A. Executive Orders 12866 and 13563:
Regulatory Planning and Review
B. Paperwork Reduction Act
C. Executive Order 13132 (Federalism)
D. Unfunded Mandates Reform Act of 1995
E. Plain Language
F. Assessment of Federal Regulations and
Policies on Families
G. Regulatory Flexibility Act
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H. Small Business Regulatory Enforcement
Fairness Act of 1996
I. Executive Order 13175 (Indian Tribal
Governments)
J. Executive Order 12630 (Government
Actions and Interference With
Constitutionally Protected Property
Rights)
K. Executive Order 12988 (Civil Justice
Reform)
L. Executive Order 13211 (Energy Supply)
I. Executive Summary
On July 22, 2014, President Obama
signed the Workforce Innovation and
Opportunity Act (WIOA) (Pub. L. 113–
128), comprehensive legislation that
reforms and modernizes the public
workforce system. It reaffirms the role of
the public workforce system, and brings
together and enhances several key
employment, education, and training
programs. WIOA provides resources,
services, and leadership tools for the
workforce system to help individuals
find good jobs and stay employed and
improves employer prospects for
success in the global marketplace. It
ensures that the workforce system
operates as a comprehensive, integrated
and streamlined system to provide
pathways to prosperity for those it
serves and continuously improves the
quality and performance of its services.
The Department of Labor is
publishing this NPRM to implement
those provisions of WIOA that affect the
core programs under titles I and III, and
the Job Corps and national programs
authorized under title I which will
administered by the Department. In
addition to this NPRM, the Departments
of Education (ED) and Labor (DOL) are
jointly publishing an NPRM to
implement those provisions of WIOA
that affect all of the WIOA core
programs (titles I–IV) and which will
have to be jointly overseen and
administered by both Departments.
Readers should note that there are a
number of cross-references to the Joint
NPRM published by ED and DOL, with
particular focus on those provisions in
the Joint NPRM that have to do with
performance reporting among all the
core programs. Finally, this NPRM has
been structured so that the proposed
Code of Federal Regulations (CFR) parts
will align with the Joint NPRM CFR
parts in once all of the proposed rules
of have been finalized.
WIOA seeks to deliver a broad array
of integrated services to individuals
seeking jobs and skills training, as well
as employers seeking skilled workers by
improving the workforce system, more
closely aligning it with regional
economies and strengthening the
network of about 2,500 one-stop centers.
Customers must have access to a
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seamless system of high-quality services
through coordination of programs,
services and governance structures. The
Act builds closer ties among key
workforce partners—business leaders,
workforce boards, labor unions,
community colleges, non-profit
organizations, youth-serving
organizations, and State and local
officials—in striving for a more jobdriven approach to training and skills
development.
WIOA will help job seekers and
workers access employment, education,
training, and support services to
succeed in the labor market and match
employers with the skilled workers they
need to compete in the global economy.
The purposes of WIOA described in the
Act include:
• Increasing access to and
opportunities for the employment,
education, training, and support
services that individuals need,
particularly those with barriers to
employment.
• Supporting the alignment of
workforce investment, education, and
economic development systems, in
support of a comprehensive, accessible,
and high-quality workforce
development system.
• Improving the quality and labor
market relevance of workforce
investment, education, and economic
development efforts.
• Promoting improvement in the
structure and delivery of services.
• Increasing the prosperity of workers
and employers.
• Providing workforce development
activities that increase employment,
retention, and earnings of participants
and that increase post-secondary
credential attainment and as a result,
improve the quality of the workforce,
reduce welfare dependency, increase
economic self-sufficiency, meet skill
requirements of employers, and enhance
productivity, and competitiveness of the
nation.
WIOA is complemented by the
groundwork laid by the Administrationwide review of employment, education,
and training programs to ensure Federal
agencies do everything possible to
prepare ready-to-work-Americans with
ready-to-be-filled jobs. The review
identified seven priorities for these
Federal programs:
• Work up-front with employers to
determine local or regional hiring needs
and design training programs that are
responsive to those needs;
• Offer work-based learning
opportunities with employers—
including on-the-job training,
internships, and pre-apprenticeships
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and registered apprenticeships—as
training paths to employment;
• Make better use of data to drive
accountability, inform what programs
are offered and what is taught, and offer
user-friendly information for job seekers
to choose what programs and pathways
work for them and are likely to result in
a job;
• Measure and evaluate employment
and earnings outcomes;
• Promote a seamless progression
from one educational stepping stone to
another, and across work-based training
and education, so individuals’ efforts
result in progress;
• Break down barriers to accessing
job-driven training and hiring for any
American who is willing to work,
including access to supportive services
and relevant guidance; and
• Create regional collaborations
among American Job Centers, education
institutions, labor, and nonprofits.
As WIOA implementation progresses,
success in accomplishing the purposes
of WIOA at the State, local, and regional
levels, will be assessed by whether:
• One-stop centers are recognized as
a valuable community resource and are
known for high quality, comprehensive
services for customers.
• The core programs and one-stop
partners provide seamless, integrated
customer service.
• Program performance, labor market
and related data drive policy and
strategic decisions and inform customer
choice.
• Youth programs reconnect out-ofschool youth (OSY) to education and
jobs.
• Job seekers access quality career
services either online or in a one-stop
career center through a ‘‘common front
door’’ that connects them to the right
services.
• One-stop centers facilitate access to
high quality, innovative education and
training.
• Services to businesses are robust
and effective, meeting businesses’
workforce needs across the business
lifecycle.
II. Acronyms and Abbreviations
AEFLA Adult Education and Family
Literacy Act
ALJ Administrative Law Judge
ANVSA Alaska Native Village Service Area
AOP Agricultural Outreach Plan
ARS Agricultural Recruitment System
AWOL Absent Without Official Leave
BLS Bureau of Labor Statistics
CBO Community-based organization
CCC Civilian Conservation Center
CEO Chief elected official
CFR Code of Federal Regulations
Complaint System Employment Service and
Employment-Related Law Complaint
System
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COSO Committee of Sponsoring
Organizations of the Treadway
Commission
CTT Career Technical Training
DINAP Division of Indian and Native
American Programs
DOL Department of Labor
ED Department of Education
E.O. Executive Order
EO Equal opportunity
ES Employment Service
ESA Employment Standards
Administration
ESARS Employment Security Automated
Reporting System
ETA Employment and Training
Administration
ETP Eligible training provider
ETPL Eligible training provider list
FECA Federal Employees Compensation
Act
FEIN Federal employer identification
number
FEMA Federal Emergency Management
Agency
FERPA Family Educational Rights and
Privacy Act
FLSA Fair Labor Standards Act
FOA Funding Opportunity Announcement
FR Federal Register
GED General Educational Development
GIS Geographic information system
GPRA Government Performance and
Results Act
HEARTH Homeless Emergency Assistance
and Rapid Transition to Housing Act of
2009
HHS Department of Health and Human
Services
HSD High School Diploma
HUD U.S. Department of Housing and
Urban Development
IC Information collection
IEVS Income and Eligibility Verification
System
INA Indian and Native American
ISDEAA Indian Self-Determination and
Education Assistance Act
ISY In-school youth
ITA Individual Training Account
JIS Job Information Service
JS Job Service
JTPA Job Training Partnership Act
JVSG Jobs for Veterans State Grants
LEHD Longitudinal Employer-Household
Dynamics
LEP Limited English proficiency
MOU Memorandum of Understanding
MSFW Migrant and Seasonal Farmworker
NAACP National Association for the
Advancement of Colored People
NAFTA North American Free Trade
Agreement
NAICS North American Industry
Classification System
NDWG National Dislocated Worker Grant
NEG National Emergency Grant
NFJP National Farmworker Jobs Program
NICRA Negotiated Indirect Cost Rate
Agreement
NPRM Notice of Proposed Rulemaking
OALJ Office of Administrative Law Judges
OBS On-board strength
OFLC Office of Foreign Labor Certification
OJT On-the-job training
OMB Office of Management and Budget
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OMS Outcome Measurement System
OPDR Office of Policy Development and
Research
OSHA Occupational Safety and Health
Administration
OSY Out-of-school youth
OTSA Oklahoma Tribal Service Area
OWI Office of Workforce Investment
PART Program Assessment and Rating Tool
PBP Program Budget Plan
PRA Paperwork Reduction Act of 1995
PRH Policy and Requirements Handbook
Pub. L. Public Law
PY Program year
RFA Regulatory Flexibility Act
RFP Requests for proposals
Richey Order Judge Richey Court Order
RIN Regulatory Information Number
SBA Small Business Administration
SBREFA Small Business Regulatory
Enforcement Fairness Act of 1996
SDA Service delivery area
sec. Section of a Public Law or the United
States Code
SESA State Employee Security Act
SMA State Monitor Advocate
SOC Standard Occupational Classification
SNAP Supplemental Nutrition Assistance
Program
SSA Social Security Act
SSN Social Security Number
State Board State Workforce Development
Board
STAWRS Simplified Tax and Wage
Reporting System
SWA State Workforce Agency
TAA Trade Adjustment Assistance
TANF Temporary Assistance for Needy
Families
TEGL Training and Employment Guidance
Letter
TEN Training and Employment Notice
UC Unemployment Compensation
UCX Unemployment Compensation for Exservice members
UI Unemployment insurance
U.S.C. United States Code
VA Department of Veterans Affairs
VETS Veterans’ Employments and Training
Service
VR Vocational rehabilitation
Wagner-Peyser Wagner-Peyser Act of 1933
WARN Worker Adjustment and Retraining
Notification
WDB Workforce Development Board
WHD Wage and Hour Division
WIA Workforce Investment Act of 1998
WIAC Workforce Information Advisory
Council
WIC Workforce Information Council
WIOA Workforce Innovation and
Opportunity Act of 2014
WLMI Workforce and Labor Market
Information
WLMIS Workforce and Labor Market
Information System
WRIS Wage Record Interchange System
III. Background
A. Workforce Innovation and
Opportunity Act Principles
On July 22, 2014, President Obama
signed the WIOA, the first legislative
reform of the public workforce system
in more than 15 years, which passed
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Congress by a wide bipartisan majority.
WIOA supersedes the Workforce
Investment Act of 1998 (WIA) and
amends the Adult Education and Family
Literacy Act (AEFLA), the WagnerPeyser Act, and the Rehabilitation Act
of 1973. WIOA presents an
extraordinary opportunity for the
workforce system to accelerate its
transformational efforts and
demonstrate its ability to improve job
and career options for our citizens
through an integrated, job-driven public
workforce system that links diverse
talent to our nation’s businesses. It
supports the development of strong,
vibrant regional economies where
businesses thrive and people want to
live and work.
WIOA reaffirms the role of the
customer-focused one-stop delivery
system, a cornerstone of the public
workforce investment system, and
enhances and increases coordination
among several key employment,
education, and training programs. Most
provisions in WIOA take effect on July
1, 2015, the first full program year (PY)
after enactment, although the new State
plans and performance accountability
system take effect July 1, 2016. Title IV,
however, took effect upon enactment.
WIOA presents an extraordinary
opportunity for the workforce system to
accelerate its transformational efforts
and demonstrate its ability to improve
job and career options for our citizens
through an integrated, job-driven public
workforce system that links diverse
talent to our nation’s businesses. It
supports the development of strong,
vibrant regional economies where
businesses thrive and people want to
live and work.
WIOA is designed to help job seekers
access employment, education, training,
and support services to succeed in the
labor market and to match employers
with the skilled workers they need to
compete in the global economy. WIOA
has six main purposes: (1) Increasing
access to and opportunities for the
employment, education, training, and
support services for individuals,
particularly those with barriers to
employment; (2) supporting the
alignment of workforce investment,
education, and economic development
systems in support of a comprehensive,
accessible, and high-quality workforce
development system; (3) improving the
quality and labor market relevance of
workforce investment, education, and
economic development efforts; (4)
promoting improvement in the structure
and delivery of services; (5) increasing
the prosperity of workers and
employers; and (6) providing workforce
development activities that increase
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employment, retention, and earnings of
participants and that increase postsecondary credential attainment and as
a result, improve the quality of the
workforce, reduce welfare dependency,
increase economic self-sufficiency, meet
skill requirements of employers, and
enhance productivity and
competitiveness of the nation.
Beyond achieving the requirements of
the new law, WIOA offers an
opportunity to continue to modernize
the workforce system, and achieve key
hallmarks of a customer centered
workforce system, where the needs of
business and workers drive workforce
solutions, where one-stop career centers
and partners provide excellent customer
service to job seekers and businesses,
where the workforce system pursues
continuous improvement through
evaluation and data-driven policy, and
where the workforce system supports
strong regional economies.
Regulations and guidance
implementing titles I and III are issued
by DOL, with the exception of joint
regulations that will be issued by DOL
and ED on the provisions in title I
relating to unified and combined
planning, performance, and the one-stop
delivery system. Regulations and
guidance on implementing titles II and
IV will be issued by ED.
WIOA retains much of the structure of
WIA, but with critical changes to
advance greater coordination and
alignment. Under title I–A, each State
will be required to develop a single,
unified strategic plan that is applicable
to four core workforce development
programs. The core programs consist of
(1) the adult, dislocated worker, and
youth formula programs administered
by the Department under title I of
WIOA; (2) the Adult Education and
Family Literacy program administered
by ED under title II of WIOA; (3) the
Wagner-Peyser Act employment
services (ES) program administered by
the Department, as amended by title III
of WIOA; and (4) the vocational
rehabilitation (VR) programs under title
I of the Rehabilitation Act administered
by ED, as amended by title IV of WIOA.
In addition to core programs, WIOA
provides States the opportunity to
include other key one-stop partner
programs such as the Supplemental
Nutrition Assistance Program (SNAP),
Unemployment Insurance (UI),
Temporary Assistance for Needy
Families (TANF), and Perkins Career
Technical Education in a Combined
State Plan. The law also includes a
common performance accountability
system applicable to all of the core
programs.
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The remainder of WIOA title I
authorizes the adult, dislocated worker,
and youth formula programs; the State
and local workforce development
(formerly investment) boards; the
designation of regions and local areas;
local plans; the one-stop system;
national programs, including Job Corps,
YouthBuild, Indian and Native
American programs, and Migrant and
Seasonal Farmworker (MSFW)
programs; technical assistance and
evaluations; and general administrative
provisions currently authorized under
title I of WIA. Title II retains and
amends the Adult Education and Family
Literacy Program currently authorized
under title II of WIA. Title III contains
amendments to the Wagner-Peyser Act
relating to the ES and Workforce and
Labor Market Information System
(WLMIS), and requires the Secretary to
establish a Workforce Information
Advisory Council (WIAC). Title IV
contains amendments to the
Rehabilitation Act of 1973, which were
also included under title IV of WIA; it
also requires the Secretary of Labor to
establish an Advisory Committee on
Increasing Competitive Integrated
Employment for Individuals with
Disabilities. Finally, title V contains
general provisions similar to the
provisions applicable under title V of
WIA as well as the effective dates and
transition provisions.
Since the enactment of WIOA, the
Department has used a variety of means
to coordinate with other Federal
agencies that have roles and
responsibilities under the Act. The
Department works closely with staff at
ED and the Department of Health and
Human Services (HHS) on all shared
policy and implementation matters. Key
areas of collaboration include the
Unified State Plan, performance
reporting, one-stop service delivery, and
services to disconnected youth and to
individuals with disabilities. WIOA
created an opportunity to enhance
coordination and collaboration across
other Federal programs through the
Combined State Plan and the
Department meets with the other
Federal agencies regarding those plans.
Before publishing the NPRM, the
Department solicited broad input
through a variety of mechanisms
including:
• Issued Training and Employment
Notice (TEN) No. 05–14 to notify the
public workforce system that WIOA was
enacted, accompanied by a statutory
implementation timeline, a fact sheet
that identified key reforms to the public
workforce system, and a list of
frequently asked questions.
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• Issued TEN No. 06–14 to announce
a series of webinars to engage WIOA
stakeholders in implementation of
WIOA.
• Issued TEN No. 12–14 to provide
guidance to States and other recipients
of funds under title I of WIA on the use
and reporting of PY 2014 funds for
planning and implementation activities
associated with the transition to WIOA.
• Established a WIOA Resource Page
(www.doleta.gov/WIOA) to provide
updated information related to WIOA
implementation to the public workforce
system and stakeholders;
• Established a dedicated email
address for the public workforce system
and stakeholders to ask questions and
offer ideas related to WIOA
(DOL.WIOA@dol.gov);
• Conducted, in conjunction with ED
and HHS outreach calls, webinars, and
stakeholder and in-person town halls in
each ETA region. The Department and
its Federal partners hosted 10 town
halls across the country, reaching over
2,000 system leaders and staff
representing core programs and onestop partners, employers, and
performance staff. This included a town
hall with Indian and Native American
leaders and membership organizations
serving Indians and Native Americans,
Hawaiians, and Alaskan Natives as well
as a formal consultation with members
of the Native American Employment
and Training Advisory Council to the
Secretary of Labor.
• Conducted readiness assessments to
implement WIOA in all States and 70
local workforce areas to inform
technical assistance.
B. Major Changes From Current
Workforce Investment Act of 1998
This section contains a summary of
the major changes from the current
WIA. As indicated above, WIOA retains
much of the structure of WIA.
Major changes in WIOA are:
• Aligns Federal investments to
support job seekers and employers. The
Act provides for States to prepare a
single Unified State Plan that identifies
a 4-year strategy for achieving the
strategic vision and goals of the State for
preparing an educated and skilled
workforce and for meeting the skilled
workforce needs of employers. States
govern the core programs as one system
assessing strategic needs and aligning
them with service strategies to ensure
the workforce system meets
employment and skill needs of all
workers and employers.
• Streamlines the governing bodies
that establish State, regional and local
workforce investment priorities. WIOA
makes State and Local Workforce
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Development Boards more agile and
well positioned to meet local and
regional employers’ workforce needs by
reducing the size of the boards and
assigning them additional
responsibilities to assist in the
achievement of the State and local
strategic workforce vision and goals.
The State Workforce Development
Boards (State Boards) continue to have
a majority of business representation
and a business chair that work for all
workers and jobseekers, including lowskilled adults, youth, and individuals
with disabilities, while they foster
innovation, and ensure streamlined
operations and service delivery
excellence.
• Creates a common performance
accountability system and information
for job seekers and the public. WIOA
ensures that Federal investments in
employment, education, and training
programs are evidence-based and datadriven, and accountable to participants
and the public. It establishes a
performance accountability system that
applies across the core programs, by
generally applying six primary
indicators of performance: entry into
unsubsidized employment at two points
in time, median earnings, attainment of
post-secondary credentials, measurable
skill gains, and effectiveness in serving
employers.
• Fosters regional collaboration to
meet the needs of regional economies.
WIOA promotes alignment of workforce
development programs with regional
economic development strategies to
meet the needs of local and regional
employers.
• Enhances access to high quality
services through the network of one-stop
system. WIOA helps jobseekers and
employers acquire the services they
need in centers and online, clarifies the
roles and responsibilities of the one-stop
partner programs, adds the TANF
program as a required one-stop partner
unless the Governor objects, requires
competitive selection of one-stop
operators, and requires the use by the
one-stop system of a common one-stop
delivery identifier or brand that is to be
developed by the Secretary of Labor.
• Improves services to individuals
with disabilities. WIOA stresses
physical and programmatic
accessibility, including the use of
accessible technology to increase
individuals with disabilities’ access to
high quality workforce services.
• Makes key investments for
disconnected youth. WIOA emphasizes
services to disconnected youth to
prepare them for successful
employment by requiring that a
minimum of 75 percent of youth
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formula program funds be used to help
OSY, in contrast to the 30 percent
required under WIA. WIOA increases
OSYs’ access to WIOA services,
including pre-apprenticeship
opportunities that result in registered
apprenticeship. It adds a requirement
that at least 20 percent of formula funds
at the local level be used on work-based
training activities such as summer jobs,
on-the-job training (OJT), and
apprenticeship.
• Helps Employers Find Workers with
the Necessary Skills. WIOA contributes
to economic growth and business
expansion by ensuring the workforce
system is job-driven—matching
employers with skilled individuals.
WIOA requires Local Boards to promote
the use of industry and sector
partnerships that include key
stakeholders in an industry cluster or
sector that work with public entities to
identify and address the workforce
needs of multiple employers.
Additionally, successful
implementation of many of the
approaches called for within WIOA,
such as career pathways and sector
strategies, require robust relationships
across programs and with businesses,
economic development, education and
training institutions, including
community colleges and career and
technical education, local entities, and
supportive services agencies.
C. Rule Format
The NPRM format reflects the
Department’s commitment to writing
regulations that are reader-friendly. The
Department has attempted to make this
NPRM clear and easy to understand. To
this end, the regulatory text is presented
in a ‘‘question and answer’’ format and
organized consistent with the Act.
While the Department has provided
cross-references to the statute(s), the
Department also has included the Act’s
provisions in the answers for
completeness.
While the Department has anticipated
many issues that may arise and
provided appropriate directions, there
are many other areas where the
Department continues to weigh options.
Thus, the Department raises questions
throughout the preamble where the
Department seeks additional
information or where the Department is
weighing options and seek comments.
D. Legal Basis
On July 22, 2014, the President signed
the Workforce Innovation Opportunity
Act (WIOA) (Pub. L. 113–128) into law.
WIOA repeals WIA (29 U.S.C. 2801 et
seq.). As a result, the WIA regulations
no longer reflect current law. Section
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503(f) of WIOA requires that the
Department issue an NPRM and then a
final rule that implements the changes
WIOA makes to the public workforce
system in regulations. Therefore, DOL
seeks to develop and issue a NPRM that
proposes to implement WIOA. The
Department of Labor will issue
regulations regarding the Section 188
Nondiscrimination provisions through
separate rulemaking.
IV. Section-by-Section Discussion of
Proposal
A. Part 603—Federal-State
Unemployment Compensation Program
Disclosure of Confidential
Unemployment Compensation
Information Under WIOA Sec. 116
Relationship Between 20 CFR Part 603
and WIOA
The Department is amending its
regulations at 20 CFR part 603 to help
States comply with the WIOA. WIOA
requires that States use ‘‘quarterly wage
records’’ in assessing the performance of
certain Federally-funded employment
and training programs.
States must make available
performance reports for local areas and
for eligible training providers (ETPs)
under title I of the WIOA. WIOA also
requires that States cooperate in
evaluations, by the Departments of
Labor and Education, of State programs
overseen by those Federal agencies.
To help States comply with these
requirements, the Department has
determined that it would be useful to
more clearly and specifically, describe
in unemployment compensation (UC)
confidentiality regulations, the
standards for disclosure between the
State UC, workforce, and education
systems. This proposal amends current
regulations to clarify, in a limited
fashion, those State government officials
with whom the State may share certain
confidential information in order to
carry out requirements under the law.
The regulations enumerate certain
additional public officials who may
access confidential State wage records
that are the basis for the State’s
performance reporting. Ensuring such
access to these State records would
allow State agencies to better manage
the information for the purpose of
making Federally-required reports on
certain program outcomes, and to
cooperate more effectively and be more
informative with respect to Federal
program evaluations.
WIOA section (sec.) 116(i)(2) and
proposed regulation § 677.175 (a)
require State workforce, training, and
education programs to use quarterly
wage records to measure the progress of
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the State on State and local performance
accountability measures. Under WIA,
the Department interpreted the
reference to ‘‘quarterly wage records’’ in
sec. 136(f)(2) to require States to use the
confidential UC information in the
employer-provided wage reports
collected under sec. 1137 of the Social
Security Act (SSA), 42 U.S.C. 1320b–7.
(See 20 CFR 677.175.) These are the
reports that the State UC agency obtains
from employers for determining UC tax
liability, monetary eligibility, or for
cross-matching against State UC
agencies’ files to determine if improper
payments have been made. The
Department adheres to this
interpretation in implementing WIOA
sec. 116(i)(2).
The ‘‘wage information’’ defined in
§ 603.2(k)—which the regulations allow
State agencies to disclose under limited
circumstances—includes the three data
categories or elements (wages, SSN(s),
employer information) that States must
use as their data source for State and
local performance reporting under
WIOA. The proposed WIOA
implementing regulation at 20 CFR
677.175 (b) defines ‘‘quarterly wage
record information’’ to include three
data elements or categories of data
elements: (1) A program participant’s
SSN(s); (2) information about the wages
program participants earn after exiting
from the program; and (3) the name,
address, State and (when known) the
Federal Employer Identification Number
(FEIN) of the employer paying those
wages. The disclosure of such wage
record data is governed by UC part 603
regulations, which establish
requirements for maintaining the
confidentiality of UC information along
with standards for mandatory and
permissive disclosure of such
information.
Part 603 permits State agencies to
disclose confidential UC information—
including ‘‘wage information’’—to
‘‘public officials’’ (defined at § 603.2(d))
under limited circumstances (defined
under § 603.5), and authorizes such
‘‘public officials,’’ in turn, to use the
information to develop Federallyrequired performance reports.
As explained in greater detail below,
the Department proposes changes to
§ 603.2 (definition of ‘‘public official’’)
and § 603.5 (governing disclosures to
public officials), to help States comply
with WIOA’s performance requirements,
including the performance reports of the
States, local areas, and ETPs. In
addition, the Department proposes to
amend § 603.6 to add a provision
requiring disclosure to implement the
new statutory requirement on State
cooperation with certain DOL and ED
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evaluations. These changes would
facilitate States’ obligations to report on
performance through the use of
quarterly wage records, and to cooperate
in DOL and ED evaluations.
The amendments the Department is
proposing to part 603 relate only to
State agency disclosures necessary to
comply with certain provisions of
WIOA. The Department is not proposing
to redefine or expand the confidential
State information—the confidential
wage records or wage information—that
is currently the basis for State
performance reporting, and is not
proposing to reduce in any way the
significant privacy protections and
confidentiality requirements that
currently govern that information. The
Department is not proposing to change
any requirements relating to the
permissible or mandatory disclosure of
confidential UC information for any
other purpose, or addressing any general
UC issues. We note, in particular, that
nothing in these proposed regulations
exempts disclosures made under these
regulations from the safeguards and
security requirements in § 603.9, the
requirements in § 603.10 governing
agreements, or the requirements for
payment of costs under § 603.8(a).
The Department invites comments on
our proposed additions to part 603, but
will not consider or address comments
on part 603 or other UC matters that are
outside the scope of this NPRM.
Section 603.2(d)(2)–(5)
Proposed §§ 603.2(d)(2)–(5) expand
the definition of who and what entities
are considered ‘‘public officials’’ for
purposes of complying with WIOA’s
requirements. Currently, § 603.2(d)
defines ‘‘public official’’ as ‘‘an official,
agency, or public entity’’ in the
executive branch of government with
‘‘responsibility for administering or
enforcing a law,’’ or ‘‘an elected official
in the Federal, State or local
government.’’ Proposed § 603.5(e)
allows disclosure to public officials who
need the information to carry out their
official duties. This exception allows
State agencies that collect ‘‘wage
information’’ (including the data
required for performance reporting
under WIOA sec. 677.175) to provide
that information to the State agencies
responsible for administering and
reporting on the WIOA core programs
and mandatory one-stop partner
programs. For example, State UC
agencies, which are governed by part
603, may disclose confidential UC
information to the State adult basic
education agency for purposes of
performing their official duties, as used
in § 603.5(e).
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The proposed amendments to
§ 603.2(d) would clearly enumerate that
‘‘public official’’ includes officials from
public post-secondary educational
organizations, State performance
accountability and customer
information agencies, the chief elected
officials (CEOs) of local Workforce
Development Areas (as that term is used
in WIOA sec. 106), and a public State
educational authority, agency, or
institution. Proposed § 603.2(d)(2)
would permit disclosure to public postsecondary educational institutions,
regardless of how those institutions are
structured or organized under State law.
The regulation, as proposed, specifically
mentions three categories of
institutions. Proposed § 603.2(d)(2)(i)
would permit disclosure to public postsecondary educational institutions that
are part of a State’s executive branch,
i.e., derive their authority either directly
from the Governor or from an entity
(State Board, commission, etc.)
somewhere in that line of authority.
Proposed § 603.2(d)(2)(ii) would permit
disclosure to public post-secondary
educational institutions that are
independent of the State’s executive
branch, which means those institutions
whose directors derive their authority
either directly from an elected official in
the State other than the Governor or
from an entity (again, a State Board,
commission, or other entity) in that line
of authority. Proposed § 603.2(d)(2)(ii)
covers any public post-secondary
educational institution established and
governed under State law, for example,
a State Board of Regents. Proposed
§ 603.2(d)(2)(iii) would allow disclosure
specifically to State technical colleges
and community colleges. (Those
institutions may also be covered under
(i) or (ii))
Proposed § 603.2(d)(5) permits
disclosure to a public State educational
authority, agency or institution’’ as the
terms are used in the Family
Educational Rights and Privacy Act
(FERPA) to clarify that the Department
considers the heads of public
institutions that derive their authority
from a State educational authority or
agency to be ‘‘public officials’’ for
purposes of part 603.
The Department proposes these
changes to help States comply with
WIOA’s requirement to use wage
records to measure performance (WIOA
sec. 116(i)(2)) and to facilitate the
performance reporting required for ETPs
under secs. 116(d) and 122 of WIOA.
WIOA mandates the use of wage records
to measure State and local performance.
As long as the recipients of the data
adhere to all of the requirements in 20
CFR part 603, this proposed section
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would permit States to make these
disclosures to comply with WIOA
requirements for Federal, State, or local
government reporting on program
outcomes and for other specified
purposes.
Non-public educational institutions,
including non-profit or for-profit
educational institutions or other ETPs
which are not subject to the authority of
the executive branch or another State
elected official would not be permitted
to obtain confidential UC information,
including wage information, under this
authority because they are not public
entities. Any disclosures of confidential
UC information to those entities for
purposes of complying with WIOA
would have to be authorized under the
provisions of § 603.5 other than
§ 603.5(e). However, it is permissible
and encouraged to develop processes or
systems, such as the Wage Record
Interchange System, to enable a State
agency or State educational authority
(including a State Education Agency)
that collects wage records to match
program participant data with wage
records, and to provide aggregate
participant outcome data to nongovernmental educational entities,
including ETPs under title I of WIOA.
Section 603.5(e)
Proposed § 603.5(e), as amended,
would assist State workforce and State
education programs in complying with
WIOA, and in particular with WIOA’s
sec. 116 performance accountability
responsibilities, by explicitly stating
that confidential UC information may be
disclosed to a ‘‘public official’’ as
defined in § 603.2(d)(2) for limited,
specified WIOA purposes.
Proposed § 603.5(e), as amended, in
conjunction with the revised definition
of ‘‘public official’’ under 603.2(d)(2),
would enable State UC agencies to
disclose confidential UC information to
State and local agencies and other
public officials authorized to carry out
their responsibilities under WIOA for
performance accountability, including
audits and evaluations of the programs
and other required reporting of
outcomes, as described in proposed
§ 603.2(d)(2). To enable States to comply
with WIOA, State UI agencies, or other
State agencies responsible for collection
of wage record information, must
collaborate with the entities under
WIOA that are required to use wage
record data for performance to make the
data available pursuant to part 603.
The Department notes that the
proposed amendment to § 603.5(e)
would permit disclosure to a public
official for purposes of performance
accountability of the entities on the
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State’s eligible training provider list
(ETPL). In addition, disclosure of
confidential UC information for other
programs’ performance accountability
purposes (e.g., TANF or SNAP) may be
accomplished under existing § 603.5, as
these entities are public officials and are
performing their public duty, as defined
in this section.
A new clause (iii) under proposed
§ 603.5(e) would permit disclosures ‘‘as
otherwise required for education or
workforce training program performance
accountability and reporting under
Federal or State law.’’ The Department
intends that this provision apply only in
the limited instance where a Federal or
State law requires performance
reporting for which data covered by part
603 is needed in a way that is not
covered by the other WIOA-specific
provisions. In those instances, this
provision would permit a State agency
to disclose confidential UC information
to a ‘‘public official’’ seeking the
information to comply with that statute.
Section 603.6(8)
Proposed § 603.6(8) makes the
disclosure of confidential UC
information for certain Federal
evaluations mandatory when the
disclosure would not interfere with the
efficient administration of State UC law.
The Department proposes this change to
§ 603.6 to implement the requirement,
under WIOA sec. 116(e)(4), that States
cooperate, ‘‘to the extent practicable,’’ in
the conduct of evaluations by either the
Secretary of Labor or the Secretary of
Education. WIOA sec. 116(e)(4) defines
cooperation to include ‘‘the provision of
data (in accordance with appropriate
privacy protections established by the
Secretary of Labor)’’; this includes 20
CFR part 603 and any other privacy
protections the Secretary may establish.
The proposed new regulation at
§ 603.6(8) would implement these
requirements for purposes of providing
confidential UC information regulated
by part 603. The new regulation would
require disclosure of confidential UC
information to Federal officials, or their
agents or contractors, requesting such
information in the course of an
evaluation covered by WIOA § 116(e)(4)
and 116(e)(1), to the extent that such
disclosure is ‘‘practicable.’’
In these cases, the Department
interprets ‘‘to the extent practicable’’ to
mean that the disclosure would not
interfere with the efficient
administration of State UC law. This
standard is consistent with the standard
the regulation applies to disclosures
under § 603.5, in situations where the
disclosure is permitted but a State must
determine, first, that the disclosure
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would not interfere with the efficient
administration of State UC law. In
effect, the proposed provision would
require that State UC agencies make
disclosures to Federal education and
labor agencies carrying out evaluations
when it would not interfere with the
efficient administration of the State UC
law. The Department anticipates this
cooperation and related disclosures
would include responding to surveys
and allowing site visits, as well as
disclosure of confidential UC
information needed for the evaluation.
B. Part 675—Introduction to the
Regulations for the Workforce
Innovation and Opportunity Systems
Under Title I of the Workforce
Innovation and Opportunity Act
Proposed part 675 discusses the
purpose of title I of the WIOA, explains
the format of the regulations governing
title I, and provides additional
definitions which are not found and
defined in the Act.
Proposed § 675.100 describes the
purposes of title I of WIOA.
Proposed § 675.200 outlines the
structure of the proposed WIOA
regulations.
Proposed § 675.300 provides a list of
proposed definitions that are applicable
across the WIOA regulations.
In addition to the definitions in the
WIOA regulations and at secs. 3, 142,
166(b), 167(i), 170(a), 171(b), 203, 302,
and 404 of WIOA, proposed § 675.300
provides additional definitions that
apply to the programs and activities
authorized and funded under title I of
WIOA.
Included in this list of definitions, the
Department proposes to adopt the
following relevant definitions from the
Office of Management and Budget’s
(OMB) ‘‘Uniform Administrative
Requirements, Cost Principles and
Audit Requirements for Federal
Awards’’ found at 2 CFR part 200:
Contract, Contractor, Cooperative
Agreement, Federal Award, Federal
Financial Assistance, Grant Agreement,
Non-Federal Entity, Obligations, PassThrough Entity, Recipient, Subaward,
Subrecipient, Unliquidated Obligations,
and Unobligated Balance. All other
definitions at 2 CFR part 200 apply to
these regulations where relevant, but
have not been included in this section.
Contract: The proposed definition for
‘‘contract’’ incorporates the definition
established by OMB at 2 CFR 200.22.
Specifically, the proposed term
‘‘contract’’ refers to the legal document
that a non-Federal entity uses to
purchase property or services used to
carry out its duties under a grant
authorized under WIOA. If the
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Department determines that a particular
transaction entered into by the entity is
a Federal award or subaward it will not
be considered a contract.
Contractor: The proposed definition
of ‘‘contractor’’ incorporates the
definition contained in OMB’s Uniform
Guidance at 2 CFR 200.23. The Uniform
Guidance has replaced the term
‘‘vendor’’ with the term ‘‘contractor.’’ As
used in these regulations, the term
‘‘contractor’’ includes entities that the
Act refers to as ‘‘vendors.’’ Additionally,
it is important to note that contractors
are not subrecipients. Additional
guidance on distinguishing between a
contractor and a subrecipient can be
found at 2 CFR 200.330.
Cooperative Agreement: The proposed
definition of ‘‘cooperative agreement’’
incorporates the definition contained in
the Uniform Guidance at 2 CFR 200.24.
Department or DOL: This proposed
term refers to the United States DOL, its
agencies, and organizational units.
Employment and Training Activity:
As used in these regulations, the
proposed term ‘‘employment and
training activity’’ refers to any
workforce investment activities carried
out for an adult or dislocated worker
under sec. 134 of WIOA and 20 CFR
part 678.
Equal Opportunity (EO) Data: This
proposed term refers to the data
required by the Department’s
regulations at 29 CFR part 37
implementing sec. 188 of WIOA.
ETA: This proposed term refers to the
ETA, an agency of DOL, or its successor
organization.
Federal Award: This proposed
definition incorporates the definition in
the Uniform Guidance at 2 CFR 200.38.
Federal Financial Assistance: The
proposed definition of ‘‘Federal
financial assistance’’ incorporates the
definition contained in the Uniform
Guidance at 2 CFR 200.40.
Grant or Grant Agreement: The
proposed definition of ‘‘grant
agreement’’ incorporates the definition
contained in the Uniform Guidance at 2
CFR 200.51. Because both WIOA and
these regulations use ‘‘grant’’ and ‘‘grant
agreement’’ interchangabily, the
inclusion of both terms here clarifies
that the terms are synonymous.
Grantee: The proposed definition of
‘‘grantee’’ refers to a recipient of funds
under a grant or grant agreement.
Grantees are also referred to as
recipients in these regulations.
Individual with a Disability: This
proposed definition adopts the
definition from sec. 3 of the Americans
with Disabilities Act, as amended, and
is further defined at 29 CFR 37.4.
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Labor Federation: This proposed
definition remains unchanged from the
definition used in the regulations under
WIA at 20 CFR 660.300.
Literacy: The proposed definition for
‘‘literacy’’ as used in these regulations is
a measure of an individual’s ability to
participate and successfully function
both in the workplace and in society.
Local Board: This proposed definition
clarifies that the term ‘‘Local Board’’ as
used in these regulations refers to the
Local Workforce Development Boards
established under sec. 107 of WIOA.
Non-Federal Entity: The proposed
definition of ‘‘non-Federal entity’’
incorporates the definition contained in
the Department’s Exceptions to the
Uniform Guidance at 2 CFR 2900.2.
Obligations: The definition of
‘‘obligations’’ incorporates the
definition contained in the Uniform
Guidance at 2 CFR 200.71.
Outlying Area: The proposed term
‘‘outlying area’’ refers to those
Territories of the United States which
are not within the definition of ‘‘State,’’
including the U.S. Virgin Islands, Guam,
American Samoa, the Commonwealth of
the Northern Mariana Islands, and, in
certain circumstances, the Republic of
Palau.
Pass-through entity: The proposed
definition of pass-through entity
incorporates the definition in the
Uniform Guidance at 2 CFR 200.74.
Recipient: The proposed definition of
‘‘recipient,’’ which is different than the
current definition of recipient under
WIA at 20 CFR 660.300, incorporates
the definition in the Uniform Guidance
at 2 CFR 200.86.
Register: The proposed definition of
‘‘register’’ means the point at which an
individual seeks more than minimal
assistance from staff in taking the next
step towards self-sufficient
employment. This is also when
information that is used in performance
information begins to be collected. At a
minimum, individuals must provide
identifying information to be registered.
Secretary: This proposed term refers
to the Secretary of the U.S. DOL, or their
officially delegated designees.
Secretaries: This proposed term refers
to the Secretaries of the U.S. DOL and
the U.S. ED, or their officially
designated designees.
Self-Certification: The proposed term
‘‘self-certification’’ refers to the
certification made by an individual that
they are eligible to receive services
under title I of WIOA.
State: The proposed term ‘‘State’’
refers to each of the several States of the
United States, the District of Columbia,
and the Commonwealth of Puerto Rico.
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State Board: This proposed definition
clarifies that the term ‘‘State Board’’ as
used in these regulations refers to the
State Boards established under sec. 101
of WIOA
Subgrant or Subaward: This proposed
term incorporates the definition of
‘‘subaward’’ in the Uniform Guidance at
2 CFR 200.92. This term replaces the
term ‘‘subgrant’’ found in WIA at 20
CFR 660.300. Because both WIOA and
these regulations use ‘‘subgrant’’ and
‘‘subaward’’ interchangeably, the
inclusion of both terms here clarifies
that the terms are synonymous.
Subrecipient: The proposed definition
of ‘‘subrecipient’’ incorporates the
definition in the Uniform Guidance at 2
CFR 200.93. This term is synonymous
with the term ‘‘subgrantee.’’
Unliquidated Obligations: The
proposed definition of ‘‘unliquidated
obligations’’ incorporates the definition
contained in the Uniform Guidance at 2
CFR 200.97.
Unobligated Balance: The proposed
definition of ‘‘unobligated balance’’
incorporates the definition in the
Uniform Guidance at 2 CFR 200.98.
Wagner-Peyser Act: As used in these
regulations, the proposed term
‘‘Wagner-Peyser Act’’ refers to the
Wagner-Peyser Act passed on June 6,
1933, and codified at 29 U.S.C. 49, et
seq.
WIA Regulations: The proposed term
‘‘WIA Regulations’’ as used in this
regulation or subsequently by the
Department refers to the regulations 20
CFR parts 660–672. This definition is
necessary because, as described in the
introduction to these regulations, the
Department has chosen to retain the
WIA regulations at parts 660–672 of title
20 of the CFR.
WIOA Regulations: This proposed
term, as used in this regulation or
generally by the Department means
those regulations in 20 CFR parts 675
through 687, the Wagner-Peyser Act
regulations in 20 CFR part 652, subpart
C, and the regulations implementing
WIOA sec. 188 in 29 CFR part 37.
Workforce Investment Activities: The
proposed term ‘‘workforce investment
activities’’ is a general term that
describes the broad array of activities
and services provided to eligible adults,
dislocated workers, and youth under
secs. 129 and 134 of title I of WIOA.
Youth Workforce Investment Activity:
The proposed term ‘‘youth workforce
investment activity’’ refers to those
activities carried out for eligible youth
that fall within the broad definition of
‘‘workforce investment activity.’’
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C. Part 679—Statewide and Local
Governance of the Workforce Innovation
and Opportunity System Under Title I of
the Workforce Innovation and
Opportunity Act
1. Subpart A—State Workforce
Development Board
This subpart A sets forth the
conditions under which the Governor
must establish the State Board.
Proposed §§ 679.100(a)–(e) explain
the purpose of the State Board. The
State Board represents a wide variety of
individuals, businesses, and
organizations throughout the State.
WIOA is designed to help job seekers
and workers access employment,
education, training, and support
services needed to succeed in the labor
market, and match employers with the
skilled workers needed to compete in
the global economy. Further, the
Department envisions a State Board that
takes leadership to ensure that the onestop system in each State is customer
driven. The State Board can help lead
this effort by aligning Federal
investments in job training, integrating
service delivery across programs, and
ensuring that the workforce system is
job-driven and matches employers with
skilled individuals.
The Department envisions that the
State Board will serve as a convener of
State, regional, and local workforce
system partners to enhance the capacity
and performance of the workforce
development system; align and improve
employment, training, and education
programs, and through these efforts,
promote economic growth.
The State Board must be a strategic
convener that promotes partnerships
and engages key stakeholders. This role
can only be accomplished if each State
Board member is an active participant
in the business of the board. State Board
members must establish a platform in
which all members actively participate
and collaborate closely with the
required partners of the workforce
development system, including public
and private organizations. This
engagement is crucial in the State
Board’s role to help integrate and align
a more effective job-driven workforce
investment system that invests in the
connection between education and
career preparation.
Section 679.100 What is the vision and
purpose of the State Board?
A key goal of Federally-funded
training programs is to get more
Americans ready to work with
marketable skills and support
businesses to find workers with the
skills that are needed. The role of the
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State Board in achieving this goal
includes engaging employers, education
providers, economic development, and
other stakeholders to help the workforce
development system achieve the
purpose of WIOA and the State’s
strategic and operational vision and
goals outlined in the State Plan. The
Department encourages the State Board
to develop a comprehensive and highquality workforce development system
by working with its workforce,
education, business, and other partners
to improve and align employment,
training, and education programs under
WIOA.
The Department encourages the State
to take a broad and strategic view when
considering representatives of the State
Board, and also in establishing
processes which it will use to include
necessary perspectives in carrying out
State Board functions. For example,
alignment of required one-stop partner
investments is essential to achieving
strategic and programmatic alignment at
the State, regional, and local level.
Further, States are encouraged to
examine factors like the natural bounds
of regional economies, commuting
patterns, and how economic sectors
impact the State, which may benefit
from inputs either from formal members
of the board, or through other
engagement. Further, a broad geographic
representation as well as a reflection of
diversity of populations within the State
is critical.
Section 679.110 What is the State
Workforce Development Board?
Proposed § 679.110 describes the
membership requirements of the State
Board. WIOA sec. 101(b) uses the terms
‘‘representative’’ and ‘‘representatives’’
in several places. In this section the
Department interprets ‘‘representatives’’
to mean two or more individuals and
‘‘representative’’ as one individual.
Proposed § 679.110(a) explains that
States must establish State Boards in
accordance to the requirements of
WIOA sec. 101 and these regulations.
This proposed section retains the same
requirements found at 20 CFR
661.200(a).
Proposed § 679.110(b) generally
requires, in accordance with sec.
101(b)(2) of WIOA, that the State Board
membership represent the diverse
geographic areas of the State.
Employers’ and workers’ challenges and
needs differ among the urban, rural, and
suburban areas of the States due to
demographics, labor market information
and conditions, and business and
worker needs and access to the
workforce development system.
Accordingly, the Department strongly
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encourages that each category of
membership on the Board—the
members of the State legislature,
business representative, workforce and
labor representatives, and State and
local officials—represent the diverse
geographic areas of the State to ensure
that the workforce development system
meets the education, employment, and
skill needs of workers, jobseekers, and
businesses, no matter their location in
the State.
Proposed § 679.110(b)(1) and (2)
implement secs. 101(1)(A) and (B) of
WIOA by requiring that the board
include the Governor of the State and
one member of each chamber of the
State legislature.
Proposed § 679.110(b)(3)(i)(A) through
(C), implementing sec. 101(b)(1)(C)(i) of
WIOA, require the majority of State
Board representatives to be from
businesses or organizations in the State.
These representatives must either be the
owner or chief executive of the business
or be an executive with optimum
policy-making or hiring authority as
defined in proposed § 679.120. These
representatives must also come from
businesses or organizations that
represent businesses which provide
employment and training opportunities
that include high-quality, work-relevant
training, and development opportunities
in in-demand industry sectors or
occupations. Work-relevant and
development opportunities may include
customized training, registered
apprenticeship, or OJT. Finally, the
Governor must appoint these members
based on nominations from business
organizations and trade associations in
the State. The Department envisions
that these members will be individuals
that will be able to drive the board to
align the workforce investment,
education, and economic development
systems in support of a comprehensive,
accessible, and high-quality workforce
development system.
Proposed § 679.110(b)(3)(i)(D)
requires, at a minimum, that one
member of the State Board represent
small business as defined by the U.S.
Small Business Administration. Small
businesses are a critical component of
and major contributor to the strength of
local economies and present new
employment opportunities. The
Department proposes to require a small
business representative because the
presence of at least one small business
representative on the State Board will
allow the board as a whole to more
readily receive the unique perspectives,
experiences, and needs of small
businesses.
Proposed § 679.110(b)(3)(ii)(A)
through (D) require that not less than 20
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percent of the members of the State
Board be representatives of the
workforce. Such representatives must
include representatives from labor
organizations and registered
apprenticeship programs within the
State, in accordance with sec.
101(b)(1)(ii). This provision maintains
WIA’s emphasis and requirement that
State Board representatives include
members of the workforce and labor
organizations. The Department
anticipates that the inclusion of
workforce and labor representatives will
foster cooperation between labor and
management, strengthening the
operation and effectiveness of the State
workforce development system. This
proposed section also encourages
representation from CBOs that have
demonstrated experience and expertise,
as defined in proposed § 679.120, in
addressing the employment, training, or
education needs of individuals with
barriers to employment across the State
including organizations that serve
veterans or that provide or support
competitive, integrated employment for
individuals with disabilities, and
organizations that have demonstrated
experience and expertise in addressing
the employment, training, or education
needs of eligible youth, including
organizations that serve OSY.
Proposed § 679.110(b)(3)(iii)(A)(1) and
(2), implementing WIOA sec.
101(b)(1)(iii)(I), require the Governor to
appoint to the State Board
representatives of government that
include the lead State officials with
primary responsibility for each of the
core programs and two or more CEOs
that represent both cities and counties,
where appropriate. The inclusion of
State officials with primary
responsibility for each of the core
programs and CEOs on the State Board
is important so that they can support
and improve the service delivery of each
core program through their experience
in workforce investment activities and
positions as public leaders. This
provision also requires that where the
State official with primary
responsibility for a core program
represents more than one core program,
that official must ensure adequate
representation on the State Board of the
needs of all the core programs under
their jurisdiction. Additionally, the
CEOs must be able to represent their
geographic area such as their
surrounding cities and counties in the
area.
Proposed § 679.110(b)(3)(iii)(B), in
accordance with WIOA sec.
101(b)(1)(C)(iii)(II), allows the Governor
to designate other representatives and
officials to the Board, including but not
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limited to, representatives and officials
such as State agency officials from
agencies that are responsible for onestop partners, State agency officials
responsible for economic development
or juvenile justice programs, individuals
who represent an Indian tribe or tribal
organizations, and State agency officials
responsible for education programs.
Proposed § 679.110(c), implementing
sec. 101(c) of WIOA, requires the
Governor to select a chairperson for the
State Board from the business
representatives on the board. This
proposed section retains the same
requirements found at 20 CFR
661.200(g).
Proposed § 679.110(d) requires the
Governor to establish by-laws that help
improve operations of the State Board.
Proposed § 679.110(d)(1) through (7)
require that at a minimum the by-laws
address the nomination process used by
the Governor to select the State Board
chair and members, term limitations
and how the term appointments will be
staggered to ensure only a portion of
memberships expire in a given year, the
process to notify the Governor of a
board member vacancy to ensure a
prompt nominee, the proxy and
alternative designee process that will be
used when a board member is unable to
attend a meeting and assigns a designee,
brokers relationships with stakeholders,
and any other conditions governing
appointment or membership on the
State Board as deemed appropriate by
the Governor. In addition to these
required elements, the Governor must
include any additional requirements in
the board’s by-laws that he or she
believes is necessary to ensure the
orderly administration and functioning
of the board. An effective State Board
establishes clear roles, responsibilities,
procedures, and expectations through
its by-laws, and that these requirements
will help State Boards to be more agile
and proactive in reacting to board
turnover, increase board participation
when board members are not able to
physically attend board meetings,
improve board functionality, and help
ensure that the public is informed about
the operation of the board.
Proposed § 679.110(e) requires, as a
general condition of State Board
membership, that members who
represent the non-business
organizations, agencies, or other entities
described in proposed § 679.110(b)(3)(ii)
and (iii) have optimum policy-making
authority. Because WIOA sec. 101(d)
adds State Board functions, such as
identifying and disseminating
information on best practices and
developing and reviewing statewide
policies affecting the coordinated
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provision of services through the State’s
one-stop delivery system, all members,
not just those representing the business
community, should have optimum
policy-making authority to accomplish
the purposes of WIOA and conduct the
State Board required functions.
Proposed § 679.110(f) implements the
multiple-entity representation
limitations for State Board members at
WIOA sec. 101(b)(3). Robust
representation in each of the categories
is essential to ensure that the State
Board benefits from the diversity and
experience of board members.
Proposed § 679.110(f)(1) explains that
a State Board member may not represent
more than one of the three membership
categories: Business representatives,
workforce representatives, or
government representatives. For
example, one member could not serve as
a business representative and a joint
labor-management apprenticeship
program even if the member would
otherwise satisfy the criteria for both
categories.
Proposed § 679.110(f)(2) explains that
a State Board member may not serve as
a representative of more than one
subcategory under (b)(3)(ii). Under this
provision, a single board member could
not serve as a representative of an
organized labor organization and an
apprenticeship program (or the optional
subcategories) even if the member
would otherwise satisfy the criteria for
either category.
Proposed § 679.110(f)(3) prohibits a
government representative from serving
as a representative of more than one
subcategory under (b)(3)(iii). However,
where a single government agency is
responsible for multiple required
programs, the head of the agency may
represent each of the required programs.
In some instances, it would be
appropriate and beneficial for one
representative to represent multiple
programs on the State Board. For
example, the head of a State Workforce
Agency might represent both the WIOA
title I and Wagner-Peyser programs.
This arrangement could serve to
improve integration of these two
programs and/or help the State Board
better achieve the colocation
requirements at WIOA sec. 123(c)(3). In
other instances, such an arrangement
would be less beneficial. For example,
where vocational rehabilitation services
fall under the State Workforce Agency,
appointing a single representative to
satisfy the membership requirements of
WIOA title I, Wagner-Peyser, and
vocational rehabilitation services may
limit the voice and influence of a core
program partner. The Department
encourages Governors to use discretion
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when appointing board members to
represent multiple subcategories under
(b)(3)(iii).
Proposed § 679.110(g) requires that all
required board members have voting
privileges and allows the option for the
Governor to convey voting privileges to
non-required members. All required
board members must have a voice in the
State Board’s decisions to ensure that
the interests of all members of the
community represented by the required
members are taken into account by the
board. Requiring voting rights allows
the required board members to have an
effect on the State Board’s key decisions
and initiatives and enables the required
board members to effectively represent
the individuals and organizations of
their communities. This proposed
section also permits the Governor to
grant voting privileges to the nonrequired members of the board, and the
Department encourages the Governor to
do so if doing so, in their opinion,
would further the mission and goals of
the board.
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Section 679.120 What is meant by the
terms ‘‘optimum-policy-making
authority’’ and ‘‘demonstrated
experience and expertise’’?
Proposed § 679.120(a) defines the
term ‘‘optimum policy-making
authority’’ as an individual who can
reasonably be expected to speak
affirmatively on behalf of the entity he
or she represents and to commit that
entity to a chosen course of action. This
proposed section retains the same
requirements found at 20 CFR
661.203(a).
Proposed § 679.120(b) defines the
term ‘‘demonstrated experience and
expertise’’ as an individual who has
documented leadership in developing or
implementing workforce development,
human resources, training and
development, or a core program
function. WIOA sec. 101(d) adds new
State Board functions, such as the
development of strategies for aligning
technology and data systems across onestop partner programs to enhance
service delivery and improve
efficiencies in reporting on performance
accountability measures. This provision
will ensure that the State Board will
include members that will assist the
board in fulfilling these functions. The
Department seeks public comment on
how to further define ‘‘demonstrated
experience and expertise’’ and examples
of the types of qualifications that would
meet such a definition.
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Section 679.130 What are the
functions of the State Board?
Proposed § 679.130 implements sec.
101(d) of WIOA and describes the role
and functions of the State Board.
Proposed § 679.130(a), (d) through (e),
and (g) through (k) reiterate the relevant
statutory requirements at secs. 101(d)(1),
(4)–(5), and (7)–(11). These functions are
the primary functions of the State
Board.
Proposed § 679.130 is consistent with
WIOA’s statutory requirement that the
State Board must assist the Governor in
the development, implementation, and
modification of the 4-year State Plan.
Proposed § 679.130(b) is consistent
with WIOA sec. 101(d)(2) and reiterates
the statutory requirements. The
proposed regulation states the review of
statewide policies, programs, and
recommendations on actions that must
be taken by the State to align workforce
development programs to support a
comprehensive and streamlined
workforce development system. Such
review of policies, programs, and
recommendations must include a
review and provision of comments on
the State plans, if any, for programs and
activities of one-stop partners that are
not core programs.
Proposed § 679.130(c)(1) through (7)
are consistent with WIOA secs.
101(d)(3)(A) through (G) and reiterate
WIOA’s requirements that the State
Board assist the Governor in
development and continuous
improvement of the State’s workforce
development system, including
removing barriers to aligning programs
and activities, developing career
pathways to support individuals to
retain and enter employment,
developing customer outreach
strategies, identifying regions and
designating local workforce areas,
developing and continuously improving
the one-stop system, and developing
strategies to train and inform staff.
Proposed § 679.130(d) and (e) reiterate
statutory language requiring State
Boards to assist in the development of
State performance and accountability
measures and to identify and
disseminate best practices.
Proposed § 679.130(f)(1) through (3)
are consistent with WIOA secs.
101(d)(6)(A) through (C) to assist in the
development and review of statewide
policies on coordinated service
provisions, which includes criteria for
Local Boards to assess one-stop centers,
allocation of one-stop center
infrastructure funds, and the roles and
contributions of one-stop partners
within the one-stop delivery system. In
addition, it is important for the State
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Board to consult with CEOs and Local
Boards when establishing objective
criteria and procedures for Local Boards
to use when certifying one-stop centers.
Where Local Boards serve as the onestop operator, the State Board must use
such criteria to assess and certify the
one-stop center to avoid inherent
conflicts of interest in a Local Board
assessing itself.
Proposed § 679.130(g) through (k)
reiterate statutory language requiring
State Boards to assist in the
development of strategies for
technological improvements to improve
access and quality of service, align
technology and data systems across onestop partner programs to improve
service delivery and effectiveness in
reporting on performance
accountability, develop allocation
formulas for distribution of adult and
youth programs, and in accordance with
WIOA and these regulations, prepare
the annual report and develope the
statewide WLMIS.
Proposed § 679.130(l) is consistent
with WIOA sec. 101(d)(12). This
proposed regulation requires the State
Board to assist the Governor in the
development of other policies that
promote statewide objectives and
enhance the performance of the
workforce development system in the
State.
Section 679.140 How does the State
Board meet its requirement to conduct
business in an open manner under
‘‘sunshine provision’’ of the Workforce
Innovation and Opportunity Act sec.
101(g)?
Proposed § 679.140 implements sec.
101(g) of WIOA, requires that the State
Board conduct its business in an open
and transparent manner, and describes
several pieces of information that the
board is required to provide to ensure
transparency.
Proposed § 679.140(b)(1) through (4)
requires the State Board to make certain
information available on a regular basis
to ensure that it is conducting its
business in an open manner.
Transparency promotes accountability
and provides valuable information to
citizens on the Federal, State, and local
government’s activities. Therefore, the
State Board must make available to the
public on a regular basis, through
electronic means and open meetings,
information about State Board activities
such as the State Plan, modifications to
the State Plan, board membership, the
board’s by-laws, the minutes of
meetings. This information must be
easily accessed by interested parties.
Ensuring that this information is widely
available promotes transparency and
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provides access to the public on how
the State Board works to align, integrate,
and continuously improve the
workforce development system.
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Section 679.150 Under what
circumstances may the Governor select
an alternative entity in place of the State
Workforce Development Board?
Proposed § 679.150(a) and (b)
implement the requirements of WIOA
sec. 101(e)(1) and describe the
circumstances by which the Governor
may select an alternate entity in place
of a State Board. Paragraph (b) lists the
conditions that must be met if a State
uses an alternative entity in place of the
State Board and requires that the entity
meets the requirements of § 679.110.
Proposed § 679.150 (c)(1) through (3)
stipulate that if the alternative entity
does not provide representatives for
each of the categories required under
WIOA sec. 101(b), the State Plan must
explain the manner in which the State
will ensure an ongoing role for any
unrepresented membership group in the
workforce development system. The
proposed section further requires that
the State Board ensure that the
alternative entity maintain a
meaningful, ongoing role for
unrepresented membership groups,
including entities carrying out the core
programs, and to inform the Board’s
actions.
Proposed § 679.150(d) stipulates if the
membership structure of the alternative
entity had a significant change after
August 7, 1998, the entity will no longer
be eligible to perform the functions of
the State Board. In such a case, the
Governor must establish a new State
Board which meets all of the criteria of
WIOA sec. 101(b).
Proposed § 679.150 (e)(1) and (2)
define a significant change in the
membership structure which includes a
change in the organization of the
alternative entity or in the categories of
entities represented on the alternative
entity which requires a change to the
alternative entity’s charter or a similar
document that defines the formal
organization of the alternative entity,
regardless of whether the required
change to the document has or has not
been made. This proposed section
retains the same requirements found at
20 CFR 661.210(e).
Proposed § 679.150(f) stipulates all
State Board references in 20 CFR parts
675 through 687 also apply to an
alternative entity used by a State. This
proposed section implements sec.
101(e)(2) of WIOA.
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Section 679.160 Under what
circumstances may the State Board hire
staff?
Proposed § 679.160 implements sec.
101(h) and describes the board’s
authority to hire staff. Per proposed
§ 679.160(c), the pay provided to the
director and staff hired by the board is
subject to the limitations on the
payment of salary and bonuses
described in WIOA sec. 194(15).
2. Subpart B—Workforce Innovation
and Opportunity Act Local Governance
(Workforce Development Areas)
The WIOA envisions a workforce
development system that is customerfocused on both the job seeker and
business, and is able to anticipate and
respond to the needs of regional
economies. It requires Workforce
Development Boards and CEOs to
design and govern the system
regionally, aligning workforce policies
and services with regional economies
and supporting service delivery
strategies tailored to these needs. To
support this regional approach, WIOA
requires States to identify intrastate and
interstate regions which may be
comprised of more than one local area,
and requires local areas to plan
regionally. WIOA envisions a regional
system where not only do local areas
plan regionally, but workforce system
leaders partner and provide leadership
as part of comprehensive, regional
workforce and economic strategies. This
subpart provides the requirements for
designation of regions and local areas
under WIOA.
Section 679.200
of a region?
What is the purpose
Proposed § 679.200 describes the
purpose of requiring States to identify
regions: to align workforce development
resources to regional economies to
ensure coordinated and efficient
services to both job seekers and
employers. WIOA requires States to
establish regions in order to ensure that
training and ES support economic
growth and related employment
opportunities and are meeting the skill
competency requirements of the regions.
The development of comprehensive
regional partnerships facilitates
alignment of workforce development
activities with regional economic
development activities, and better
supports the execution and
implementation of sector strategies and
career pathways. Regional cooperation
may also lower costs and increase the
effectiveness of service delivery to
businesses that span more than one
local workforce development area
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within a region and to job seekers
through coordination of shared services,
processes, and operations. The
Department encourages States to use
these processes to identify any
performance, fiscal, or planning
challenges and to ensure that local and
regional planning areas are aligned to
support improved service delivery,
improved training and employment
outcomes, better meet employer needs,
and greater effectiveness and efficiency
in achieving these outcomes.
Section 679.210 What are the
requirements for identifying a region?
Proposed § 679.210 outlines the
requirements for identifying a region.
Proposed § 679.210(a) requires that
the Governor assign local areas to a
region prior to the submission of the
State Unified or Combined Plan.
Proposed § 679.210(b) explains that
the Governor must develop a policy for
designation of a region prior to
submission of the State Unified or
Combined Plan, in order to receive
WIOA title I–B adult, dislocated worker,
and youth allotments. The regional
assignment is important because
regional economic development areas
do not necessarily correspond to State,
county, or local workforce development
areas, or municipal boundaries.
Proposed § 679.210(b) clarifies the
required factors that a Governor must
consider when identifying a region and
the parties the Governor must consult,
implementing WIOA sec. 106(a)(1). The
considerations for identifying a
planning region are consistent with
those for local area designation outlined
in proposed § 679.240(a).
Proposed § 679.210(c) provides
additional criteria the Governor may
consider when identifying regions.
These additional criteria, which provide
a more comprehensive picture of
regional economies and labor markets,
provide additional data points to inform
the Governor’s decision to assign local
areas to regions. However, the
Department seeks comment on the
appropriateness of these factors and
requests suggestions of additional data
points for defining a regional economy
and labor market.
The Department has included
‘‘population centers’’ in proposed
§ 679.210(c)(1) because they and their
contiguous areas of growth are a basic
factor distinguishing economic
development areas and planning
regions.
Proposed § 679.210(c)(2) allows the
consideration of ‘‘commuting patterns’’
because commuting pattern data can
show the movement of workers from
their residence to their workplace. A
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strong flow of commuters from one local
area, municipality, or county into
another is an indication of the economic
interdependence of the two areas.
‘‘Land ownership’’ is included in
proposed § 679.210(c)(3) because land
ownership can significantly affect the
economic development potential of an
area.
‘‘Industrial composition’’ has been
proposed as a factor in § 679.210(c)(4)
because it is primarily based upon
industry employment patterns. The
factors used in determining regions
could be jobs by industry and share of
total employment by industry.
Proposed § 679.210(c)(5) permits the
Governor to consider ‘‘location
quotients,’’ which are ratios that could
be computed by dividing a local area’s
percentage of employment in a
particular industry by the State’s
percentage of employment in a
particular industry. The economic base
of a local area includes those industries
in which the local area has a higher
proportion of employment than the
State as a whole, or a higher location
quotient. Adjacent local areas with
similar economic bases are strong
candidates for placement in the same
region.
‘‘Labor force conditions’’ is proposed
as a factor in § 679.210(c)(6). Local area
labor force employment and
unemployment data could provide a
measure of labor availability throughout
the State. Adjacent local areas with
similar labor force characteristics, such
as unemployment rates, might have
similar workforce/economic
development needs, thus joining those
areas into a region may be beneficial.
Proposed § 679.210(c)(7) suggests that
the Governor consider ‘‘geographic
boundaries’’ when setting regions
because they may serve to facilitate or
hinder the movement of people and
commerce between areas, thereby
naturally delineating regional
boundaries.
Finally, proposed § 679.210(c)(8)
indicates that the Secretary may suggest
additional factors in future guidance.
Proposed § 679.210(d), implementing
sec. 106(a)(2) of WIOA, outlines the
types of regions and how local areas
may be assigned to regions. A region
may consist of a single local area, two
or more contiguous local areas with a
State, or two or more contiguous local
areas in two or more States. When the
Governor(s) assigns two or more local
areas to a region, the region, per WIOA
sec. 3(48), is considered a planning
region, which is required to coordinate
regional service strategies, regional
sector initiatives, the collection and
analysis of regional labor market data,
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administrative costs, transportation,
partnership with economic develop
agencies, and the negotiation of local
performance consistent with the
regional planning requirements at
§ 679.510. A single local area may not be
split across two planning regions. Local
areas must be contiguous in order to be
a planning region and effectively align
economic and workforce development
activities and resources. The
Department anticipates providing
additional guidance regarding the
creation and management of interstate
planning regions.
Section 679.220 What is the purpose
of the local workforce development
area?
Distinct from the regional designation,
WIOA also provides for local workforce
development areas. As described above,
these local areas may be identified
individually or in combination, as
regions. Proposed § 679.220 describes
the purpose of the local workforce
development area (local area). The
Governor must designate local areas in
order to receive WIOA title I adult,
dislocated worker, and youth
allotments, as required by WIOA sec.
106. Local areas serve as a jurisdiction
for the administration of workforce
development activities and execution of
adult, dislocated worker, and youth
funds allocated by the State. States
allocate workforce investment funds
based on various population
characteristics of the local area. Local
areas may correspond to regions
identified in WIOA sec. 106(a)(1) or may
be smaller geographic areas within a
planning region, each with its own
Local Workforce Development Board.
Section 679.230 What are the general
procedural requirements for designation
of local workforce development areas?
Proposed § 679.230 describes the
procedural requirements that the
Governor must use for the designation
or redesignation of a local workforce
development area. Proposed § 679.220
(a) through (c), implementing WIOA sec.
106(b)(1)(A), requires the Governor to
consult with the State Board and CEO,
and consider public comments from a
wide range of stakeholders consistent
with provisions at WIOA sec.
102(b)(2)(e)(iii)(II) as part of the process
of identifying the local area. The
Governor has the discretion to establish
the process and procedures to solicit
comments that it determines
appropriate; however a wide-reaching,
inclusive process allows sufficient time
for stakeholders to provide substantive
comments that will enable the Governor
to receive meaningful feedback from all
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interested stakeholders, ensuring that
the Governor is able to consider all
relevant information, data, and opinions
before making a decision to designate or
redesignate a local area.
Section 679.240 What are the
substantive requirements for
designation of local workforce
development areas that were not
designated as local areas under the
Workforce Investment Act of 1998?
Proposed § 679.240 provides the
substantive requirements that Governor
must use for the designation or
redesignation of local workforce
development areas.
Proposed § 679.240(a) explains that
the Governor must develop a policy for
designation or redesignation of local
workforce development areas, including
the factors that the Governor must
consider. The statute requires that the
Governor designate local areas that ‘‘are
consistent’’ with labor market and
regional economic development areas:
The Department interprets this to mean
that within a local area, there must be
common labor markets and economic
development areas. Better integration
between the workforce and economic
development systems serves to best
connect the employment needs of
workers with the skilled workforce
needs of employers. This section
implements sec. 106(b)(1)(B) of WIOA.
Proposed § 679.240(b) permits the
Governor to approve a local area
designation request from any unit of
local government, including a
combination of multiple units. This
provision implements sec. 106(b)(4) of
WIOA and retains the same
requirements found at 20 CFR
661.250(c). Proposed paragraph (c)
permits the Governor to redesignate a
local area that has been designated or
redesignated under § 679.240(a) or has
been designated under § 679.250(a) or
(c) if the local area requests, and the
Governor approves, the redesignation.
Section 679.250 What are the
requirements for initial and subsequent
designation of workforce development
areas that had been designated as local
areas under the Workforce Investment
Act of 1998?
Proposed § 679.250 describes the
requirements for initial and subsequent
designation of local areas that had been
designated as local areas under WIA.
Proposed § 679.250(a) implements
sec. 106(b)(2) of WIOA that requires,
during the first 2 full PYs following the
enactment of WIOA, a Governor is to
approve a request for initial designation
from any local area designated as a local
area under WIA as long as the entity
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was designated a local area under WIA,
performed successfully, and maintained
sustained fiscal integrity for 2 years
prior to the enactment of WIOA. This
provision requires the Governor to
continue the designation of local areas
that performed well and maintained
sound fiscal practices under WIA. If a
local area that was designated under
WIA requests initial designation under
WIOA but does not meet all of the
requirements of § 679.250(a), the
Governor has the discretion to approve
the initial designation under WIOA or to
redesignate the local area pursuant to
the procedures described in § 679.240.
Proposed § 679.250(b) clarifies that
initial designation applies to PYs 2015
and 2016, as per WIOA sec. 106.
Proposed § 679.250(c), in accordance
with sec. 106(b)(3) of WIOA, describes
the requirements for the subsequent
designation of local workforce
development areas that were initially
designated under § 679.250(a).
Specifically, the Governor must approve
requests for subsequent designation as
long as the local area performed
successfully, sustained fiscal integrity,
and in the case of a local area in a
planning region, met the planning
region requirements during the 2-year
period of initial designation. Local areas
that are able to demonstrate successful
performance and fiscal integrity must be
permitted to continue to operate and
may not be redesignated without the
consent of the Local Board and CEO in
the local area.
Proposed § 679.250(d) describes the
role of the Governor in reviewing a local
area’s subsequent designation.
Paragraph (d)(1) permits the Governor to
evaluate a local area at any time to
ensure the local area continues to meet
the requirements for subsequent
eligibility at paragraph (c). Paragraph
(d)(2) requires the Governor to review
local areas to ensure they continue to
satisfy the requirements at paragraph (2)
as part of each 4-year State planning
cycle. Sections 116(g)(2)(A) and
184(b)(1) of WIOA describe the required
actions that the Governor must take in
the event that a local workforce area
fails to meet its negotiated levels of
performance or does not comply with
administrative requirements,
respectively. Under these provisions the
Governor retains the authority to take
corrective action in light of failure of
performance or fiscal management short
of redesignation, and is not required to
redesignate a local area that has failed
to maintain the requirements of
paragraph (c). Furthermore, the
Governor may redesignate local areas at
any time with the cooperation of the
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CEO and Local Board in a given local
area.
Proposed § 679.250(e) presumes that
local areas will be considered to have
requested continued designation unless
the CEO and the Local Board directly
notify the Governor that they no longer
wish operate as a local area. This newly
proposed paragraph reduces the
administrative burden of maintaining
local area status, while still holding
local areas accountable to the
requirements of paragraph (c).
Proposed § 679.250(f) specifies that
the requirements for subsequent
designation do not apply to local areas
that are designated or redesignated
under § 679.240 or are single-area States
designated under § 679.270.
Proposed § 679.250(g) clarifies that
rural concentrated employment
programs are not eligible to apply for
initial designation as a local area. WIOA
allows any unit of local government (or
combination of units of local
government) to request designation as a
local area; however, unlike under WIA,
this provision does not extend to rural
concentrated employment programs.
Section 679.260 What do the terms
‘‘performed successfully’’ and
‘‘sustained fiscal integrity’’ mean for
purposes of designating local areas?
Proposed § 679.260 defines the terms
‘‘performed successfully’’ and
‘‘sustained fiscal integrity’’ used in
§ 679.250. This section implements sec.
106(e) of WIOA.
Proposed § 679.260(a) defines the
term ‘‘performed successfully’’ for the
purpose of initial designation to mean
that the local area met or exceeded all
performance levels the Governor
negotiated with Local Board and CEO
under WIA sec. 136(c) for the last 2 full
PYs before the enactment of WIOA. It
also requires that the local area not fail
any individual measure for the last 2
consecutive PYs before the enactment of
WIOA. Proposed § 679.260(a)(1)
requires the Governor, in order to
determine if a local area has performed
successfully, to have defined the terms
‘‘met or exceeded’’ and ‘‘failure’’ at the
time the performance levels were
negotiated. Proposed § 679.260(a)(2)
clarifies that the Governor may not
retroactively apply any higher WIOA
threshold to performance negotiated and
achieved under WIA for the purposes of
local area designation.
Proposed § 679.260(b) defines the
term ‘‘performed successfully’’ for the
purpose of subsequent designation to
mean that the local area met or
exceeded the levels of performance the
Governor negotiated with Local Board
and CEO for core indicators of
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performance described at WIOA sec.
116(b)(2)(A). It also requires the
Governor to have defined the terms
‘‘met or exceeded’’ and ‘‘failure’’ in the
State Plan.
Proposed § 679.260(a) and (b) expand
on the definition at WIOA sec. 106(e)(1)
to ensure that the initial and subsequent
designation of local areas is conducted
in a fair and transparent manner by
ensuring that the local area’s
performance is judged on the
contemporaneous standards agreed to
between the State and local area at the
time rather than under subsequently
imposed performance standards.
Proposed § 679.260(c) defines the
term ‘‘sustained fiscal integrity’’ for the
purpose of determining initial and
subsequent local area designation to
mean that the Secretary has not made a
formal determination that either the
grant recipient or any other entity
charged with expending local area funds
misexpended such funds due to willful
disregard of the requirements of the
provision involved, gross negligence, or
failure to comply with accepted
standards of administration for the 2year period preceding the
determination.
Proposed §§ 679.250 and 679.260
allow for an orderly transition from WIA
to WIOA and protects the designation
status of local areas that meet or exceed
performance targets negotiated in good
faith under the relevant authorizing
legislation while allowing the Governor
both to oversee properly the
performance of the local areas and take
action necessary to improve the area’s
performance in a timely fashion.
Section 679.270 What are the special
designation provisions for single-area
States?
Proposed § 679.270 outlines the
special designation provisions for
single-area States. Under WIOA sec.
106(d), the Governor of any single-area
State under WIA may choose to
continue to designate the State as a
single-State area. However, proposed
§ 679.270(b) clarifies that the Governor
must identify the single-area status of
the State in its Unified or Combined
State Plan and proposed § 679.270(c)
further clarifies that the State Board in
a single-area State must continue to
carry out the functions of the State and
Local Boards. This section is intended
to clarify single-area States’
responsibilities and functions: Key local
functions, such as monitoring; entering
into a memorandum of understanding
(MOU) with one-stop partners; selecting
one-stop operators; selecting eligible
providers of youth activities, career
services and training services; and
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certifying one-stop centers, are essential
to the proper functioning of the public
workforce system and remain so within
single-area States.
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Section 679.280 How does the State
fulfill the requirement to provide
assistance to local areas within a
planning region that wish to redesignate
into a single local area?
Proposed § 679.280 describes how the
State fulfills the requirement to provide
assistance to local areas within a
planning region that wish to redesignate
into a single local area.
Proposed § 679.280(a) asserts that the
State must authorize statewide funds for
transition activities when all local areas
in a planning region petition the
Governor for redesignation as a single
local area as required by WIOA sec.
106(b)(6). WIOA introduces
redesignation assistance as a required
statewide activity. This provision will
help local areas consolidate where
appropriate for the purposes of cost
savings and streamlined service
delivery.
Proposed § 679.280(b) clarifies that
when statewide funds are exhausted in
a given PY, the State may fulfill the
requirement to provide redesignation
assistance in the following PY. This
section provides States with the
flexibility to balance priorities while
ensuring local areas receive
redesignation assistance.
Proposed § 679.280(c) provides
examples of the activities that local
areas may elect to pursue with the
redesignation assistance received from
the State. However, the State may
establish policy on what other activities
local areas may use funds received for
the purposes of redesignation or leave
such determination to the local areas.
Section 679.290 What right does an
entity have to appeal the Governor’s
decision rejecting a request for
designation as a workforce development
area?
Proposed § 679.290 outlines the
appeals process for an entity that
submits a request for initial or
subsequent designation as a local
workforce development area that is
rejected by the Governor. This section
implements sec. 106(b)(5) of WIOA.
Proposed § 679.290(a) establishes that
entities that are not approved as local
areas may follow the process established
at 20 CFR 683.640. This section is
essentially unchanged from WIA.
However, while provisions at WIOA sec.
106(b) permit any unit of local
government or combination of units to
apply for designation as a local area, the
law does not specify that rural
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concentrated employment programs
may apply for designation as a local
area. The intent of this section was to
prohibit such an arrangement under
WIOA and that this prohibition logically
applies to the appeals process.
Proposed § 679.290(b) establishes that
an entity making an unsuccessful appeal
to the State Board may request a review
of the appeal by the Secretary of Labor
if the State does not respond to the
appeal in a timely manner or if the
appeal for designation is denied by the
State. The Department defines a ‘timely
manner’ to be 60 days after the
submission of the appeal. This provides
adequate time for the State to review
and make a ruling on the appeal while
not being so long as to delay
unreasonably the appeal and
designation processes.
Proposed § 679.290(c) summarizes the
circumstances under which the
Secretary of Labor may require an entity
to be designated as a local area.
Specifically, the Secretary may require
designation upon a finding of either a
denial of procedural rights or a finding
that the area meets the requirements for
designation. This section was updated
from WIA to reflect that neither the
‘automatic’ nor ‘temporary and
subsequent’ designation statuses exist
under WIOA.
3. Subpart C—Local Boards
Section 679.300 What is the vision and
purpose of the Local Workforce
Development Board?
Proposed § 679.300 explains the
purpose of the Local Board. The Local
Board represents a wide variety of
individuals, businesses, and
organizations throughout the local area.
The Local Board serves as a strategic
convener to promote and broker
effective relationships between the
CEOs and economic, education, and
workforce partners.
The Local Board must develop a
strategy to continuously improve and
strengthen the workforce development
system through innovation in, and
alignment and improvement of,
employment, training, and education
programs to promote economic growth.
Local Board members must establish a
platform in which all members actively
participate and collaborate closely with
the required and other partners of the
workforce development system,
including public and private
organizations. This is crucial to the
Local Board’s role to integrate and align
a more effective, job-driven workforce
investment system.
Proposed § 679.300(b)(1) and (2)
outlines the purposes of the Local
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Board. A key goal of Federally-funded
training programs is to prepare job
seekers ready to work with marketable
skills. This includes providing strategic
and operational oversight in
collaboration with required and other
partners to help the workforce
development system achieve the
purposes outlined in WIOA sec. 2, and
assist in the achievement of the State’s
strategic and operational vision and
goals outlined in the State Plan. The
Local Board must work to develop a
comprehensive and high-quality
workforce development system by
collaborating with its workforce and
education partners to improve and align
employment, training, and education
programs under WIOA.
Section 679.310 What is the Local
Workforce Development Board?
Proposed § 679.310 defines the Local
Workforce Development Board.
Proposed § 679.310(a) explains that the
CEO in each local area appoints the
Local Board in accordance with WIOA
sec. 107(b) and that the Governor must
certify the Local Board on a biannual
basis. This proposed section retains the
same requirements found at 20 CFR
661.300(a).
Proposed § 679.310(b) describes that
the Local Board sets policy within the
local area in partnership with the CEO,
consistent with State policy. This
proposed section retains the same
requirements found at 20 CFR
661.300(b).
Proposed § 679.310(c), asserts that the
CEO may enter into an agreement with
the Local Board that describes the
respective roles and responsibilities of
the parties. However, the CEO remains
liable for funds received under title I of
WIOA unless they reach an agreement
for the Governor to act as the local grant
recipient and bear such liability. This
proposed section retains the same
requirements found at 20 CFR
661.300(c).
Proposed § 679.310(d) describes that
the Local Board, in partnership with the
CEO, are responsible for the
development of the local plan. This
proposed section retains the same
requirements found at 20 CFR
661.120(d).
Proposed § 679.310(e) affirms that in
local areas with more than one unit of
general local government, the CEOs of
the respective units may execute an
agreement to describe their
responsibilities for carrying out their
roles and responsibilities. If the various
parties cannot come to an agreement,
the Governor may appoint the Local
Board. This proposed section retains the
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same requirements found at 20 CFR
661.300(3).
Proposed § 679.310(f) indicates that in
single-State areas, the State Board must
fulfill the functions of the Local Board,
which the Department also required
under the WIA regulation at 20 CFR
661.300(f). As required by WIOA sec.
107(c)(4)(B)(iii), the proposed section
clarifies that the State is not required to
establish or report on local performance
measures. This clarification presents a
logical approach to local performance
because the local area performance will
be reflected in the State performance
reports.
Proposed paragraph (g) requires the
CEO to establish by-laws, consistent
with State policy, that help improve
operations of the Local Board. Proposed
§ 679.310(g)(1) through (7) require that
at a minimum the by-laws address the
nomination process used by the CEO to
elect the Local Board chair and
members, term limitations and how the
term appointments will be staggered to
ensure only a portion of memberships
expire in a given year, the process to
notify the CEO of a board member
vacancy to ensure a prompt nominee,
the proxy and alternative designee
process that will be used when a board
member is unable to attend a meeting
and assigns a designee, the use of
technology to improve board functions,
brokers relationships with stakeholders,
and any other conditions governing
appointment or membership on the
Local Board as deemed appropriate by
the CEO. In addition to these required
elements, the CEO must include any
additional requirements in the board’s
by-laws that it believes is necessary to
ensure the orderly administration and
functioning of the board. An effective
Local Board establishes clear roles,
responsibilities, procedures, and
expectations through its by-laws, and
that these requirements will help Local
Boards to be more agile and proactive in
reacting to board turnover, increase
board participation when board
members are not able to physically
attend board meetings, improve board
functionality, and help ensure that the
public is informed about the operation
of the board.
Section 679.320 Who are the required
members of the Local Workforce
Development Board?
Proposed § 679.320 explains that the
CEO in a local area must appoint a Local
Workforce Development Board and
provides guidelines on requirements
and options for the CEO to follow in
appointing members to the Local Board.
Proposed § 679.320(b) requires that a
majority of the Local Board members
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must represent businesses as per WIOA
sec. 107(b)(2)(A). Business
representatives include owners, chief
executive or operating officers, and
other business executives, including
small businesses, and business
organizations. As reflected in proposed
paragraph (b)(2), WIOA requires that
business representatives on the Local
Board must represent business that
provide employment opportunities in
in-demand industry sectors or
occupations as defined in WIOA sec.
3(25). Employers with employment
opportunities in high-growth sectors are
uniquely suited to communicate the
emerging workforce needs of employers
in these high-growth, in-demand sectors
to the Local Board.
Proposed § 679.320(c) explains the
required and optional member
categories that must make up at least 20
percent of the Local Board membership
representing labor organizations, or
where they do not exist, employee
representatives. Proposed paragraphs
(c)(1) and (2) require that the Local
Board must include two or more
representatives of labor organizations
(or other employee representatives if
there are no labor organizations
operating in the local area) and one or
more representatives of a joint-labor
management registered apprenticeship
program (or other registered
apprenticeship program if there is no
joint labor-management program in the
local area). The use of the word
‘representatives’ with respect to labor
organization membership indicates a
requirement for two or more members.
In areas with joint apprenticeship
programs, the apprenticeship
representative must be a member of a
labor organization or a training director.
In addition to these required
members, proposed paragraphs (c)(3)
and (4) explain that the CEO may
appoint one or more representatives of
CBOs with experience in addressing the
employment needs of individual
barriers to employment including
organizations that serve veterans or that
provide or support competitive
integrated employment for individuals
with disabilities, and one or more
representative of organizations with
experience addressing the employment
needs of WIOA-eligible youth, including
serving OSY. While not mandatory, the
two representative categories in
proposed paragraphs (c)(3) and (4) count
towards reaching the 20 percent
threshold. Proposed § 679.320(c)
underscores both the importance of
registered apprenticeship, a proven
training strategy that effectively meets
the needs of both employers and
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workers,1 and the role of organized
labor in workforce development,
particularly in developing registered
apprenticeship programs.
Proposed § 679.320(d)(1) and (2)
describe the entities required to be on
the board to provide an adult education
perspective and representation. These
sections require that Local Boards
include a minimum of one member with
experience providing adult education
and literacy activities under title II of
WIOA and at least one member from a
higher education institution, which may
include community colleges, that
provides workforce training.
Proposed paragraph (d)(3) sets forth
the statutory requirement that a
minimum of one Local Board member
must be included from each of the
following organizations: Economic or
community development organizations,
the State ES Office under Wagner-Peyser
serving the local area, and programs
carried out under title I of the
Rehabilitation Act of 1973 (29 U.S.C.
720, et seq.) other than sec. 112 or part
C of that title.
Proposed § 679.320(e) provides
examples of other appropriate optional
members of the board. In addition to the
entities described in (e)(1) through (3),
proposed paragraph (e)(4) explains that
the CEO may appoint other individuals
to the board at his or her discretion.
This provides the CEO the flexibility to
assemble a Local Board that connects all
key resources and stakeholders.
Proposed § 679.320(f) requires that
Local Board members possess optimum
policy-making authority in the
organizations they represent. This
proposed section retains the same
requirements found at 20 CFR
661.315(c).
Proposed § 679.320(g) explains the
nomination criteria for business and
labor representatives, as well as
representatives of adult education and
literacy activities under title II when
there are multiple institutions providing
these services in a local area. These
nomination requirements are unchanged
from the requirements at 20 CFR
661.315(e), however, a formal policy
ensures that business and labor
organizations are provided the
opportunity to provide input on board
member selection. When there is more
than one local area provider of adult
education and literacy activities under
title II, or multiple institutions of higher
education providing workforce
1 Ibid; and Kleinman, Liu, Mastri, Reed, Reed,
Sattar, & Ziegler (2012). An Effectiveness
Assessment and Cost-Benefit Analysis of Registered
Apprenticeship in 10 States. Mathematica Policy
Research. Prepared for the U.S. Department of
Labor, Employment and Training Administration.
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investment activities as described in
WIOA 107(b)(2)(C)(i) or (ii), the CEO
must solicit nominations from those
particular entities. This requirement
provides for a representative selection
process for these membership
categories.
Proposed § 679.320(h) explains that
an individual may be appointed as a
representative of more than one entity if
the individual meets all the criteria for
representation, including the criteria
described in paragraphs (c) through (g)
of this section, for each entity. While
such ‘‘multiple entity’’ representation
may not be appropriate in all cases, the
Department proposes to allow an
individual to represent more than one
entity, because there may be instances
when such representation may be an
effective tool for reducing board size
while still ensuring that all entities
entitled to representation receive
effective representation.
Proposed § 679.320(i) explains that all
required board members must have
voting privileges and that the CEO may
give voting privileges to non-required
members. Voting rights allow the
required board members to have an
effect on the Local Board’s key decisions
and initiatives. This will enable the
required board members to effectively
represent the individuals and
organizations of their communities.
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Section 679.330 Who must chair a
Local Board?
Proposed § 679.330 affirms that the
Local Board must elect a chairperson
from the business representatives on the
Local Board. This proposed section
retains the same requirements found at
20 CFR 661.320.
Section 679.340 What is meant by the
terms ‘‘optimum policy-making
authority’’ and ‘‘demonstrated
experience and expertise’’?
Proposed § 679.120 explains what is
meant by ‘‘optimum policy-making
authority’’ and ‘‘demonstrated
experience and expertise’’ for members
of the Local Board under sec. 107(b)(5)
of WIOA. Proposed paragraph (a)
defines an individual with ‘‘optimum
policy-making authority’’ as someone
who can reasonably be expected to
speak affirmatively on behalf of the
entity he or she represents and to
commit that entity to a chosen course of
action. In order for the decisions of the
board to have the greatest possible
impact, all board members must be able
to speak authoritatively when
committing their organization to a
decided course of action.
Proposed paragraphs (b)(1) through
(3) define the qualifications that satisfy
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the ‘‘experience and expertise’’
requirement for Local Board members.
The CEO has a duty to appoint only
those board members that have the
skills and practical knowledge to
contribute fully to the strategic vision of
the local area’s workforce system.
Section 679.350 What criteria will be
used to establish the membership of the
Local Board?
Proposed § 679.350 affirms that the
CEO appoints the Local Board in
accordance with the criteria in WIOA
sec. 107(b) and applicable State criteria.
This proposed section retains the same
requirements found at 20 CFR 661.325.
Section 679.360 What is a standing
committee, and what is its relationship
to the Local Board?
Proposed § 679.360 establishes the
roles and responsibilities of standing
committees within the Local Board
structure. Such committees were not
legislated in the past, are optional under
WIOA, and may be used to assist the
Local Board in carrying out its
responsibilities as outlined in WIOA
sec. 107. The Department encourages
the use of standing committees to
expand opportunities for stakeholders to
participate in board decision-making,
particularly for representatives of
organizations that may no longer sit on
the Local Board but continue to have a
stake in the success of board decisions.
Such committees also expand the
capacity of the board in meeting
required functions.
Proposed paragraph (a) expressly
authorizes Local Boards to establish
standing committees that include
individuals who are not formal
members of the board, but who have
expertise to advise on issues that
support the board’s ability to attain the
goals of the State, local and regional
plans, and the objective of providing
customer-focused services to
individuals and businesses. The subpart
provides examples of areas where
standing committees may be
particularly beneficial, including
serving targeted groups of customers
such as individuals with disabilities and
youth, and addressing one-stop system
issues.
Proposed paragraph (b) provides for
Local Board discretion in terms of what
kinds of standing committees, in any,
the Local Board creates.
Proposed paragraph (c) allows Local
Boards to designate an entity in
existence on the date that WIOA was
enacted, such as an effective youth
council, to fulfill the requirements of a
standing committee as long as the entity
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meets the requirements outlined in
paragraph (a).
Section 679.370 What are the
functions of the Local Board?
Proposed § 679.370 provides the
functions of the Local Boards as
enumerated in statute. Under WIOA, the
Local Board, in partnership with the
CEO, must perform a variety of
functions to support the local workforce
system. Many of these functions have
been expanded and enhanced under
WIOA. Proposed § 661.305(a), (c), (d),
(g), (h), (j), (o), and (p) reiterate the
relevant statutory requirements at WIOA
secs. 107(d)(1) through (3), (6), (7), (9),
(12), and (13); no further discussion of
these provisions is provided below.
Proposed paragraph (b) discusses a
new role for Local Boards that are part
of a planning region that includes
multiple local areas. This regulation
repeats the new statutory requirement
that Local Boards that are part of a
planning region must develop and
submit a regional plan in collaboration
with the other Local Boards in the
region. Under WIOA, the local plan is
incorporated into the regional plan,
where required, in accordance with
§ 679.540.
Proposed paragraph (e) explains the
role of the Local Boards in engaging
employers, promoting business
representation on the board, and
developing and implementing proven or
promising strategies for meeting the
needs of employers and workers (like
industry or sector partnerships) and
providing linkages and coordination
among employers and the workforce
system. It enhances the Local Board’s
role in engaging employers beyond what
was required by WIA by requiring the
board to develop and implement
promising strategies for meeting the
employment skill needs of workers and
employers. Engaging employers presents
an opportunity to meet the local area’s
labor market and workforce
development needs and connect
customers seeking jobs or career
advancement to greater employment
prospects.
Proposed paragraph (f) requires the
Local Board to connect with
representatives of secondary and postsecondary education programs in the
local area in order to develop and
implement career pathways. This
regulation supports the statute’s focus
on career pathways.
Proposed paragraph (i) enhances the
oversight role of the Local Board beyond
what was required in WIA. It requires
the Local Board to conduct oversight, in
partnership with the CEO, of the use
and management of funds, including
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ensuring the appropriate management
and investment of funds to maximize
performance outcomes under WIOA sec.
116.
Proposed paragraph (k) requires that
the Local Board must negotiate with
CLEO and required partners on the
methods for funding the infrastructure
costs of one-stop centers in the local
area in accordance with § 678.715. This
provision ensures each partner in the
one-stop system is provided resources
equitably.
Proposed paragraph (l) also expands
and enhances the Local Board’s role in
the selection of eligible service
providers in the local area which must
be conducted consistent with 2 CFR part
200. The regulation maintains the
board’s role in the identification of
eligible providers of youth workforce
investment activities, but now requires,
consistent with WIOA sec.
107(d)(10)(B), that this identification be
accomplished through the award of
grants or contracts on a competitive
basis. It also adds that the
recommendations of the youth standing
committee, if one is established, must be
taken into account. It also indicates that
the Local Board must identify eligible
providers of career services through the
award of contracts, if the one-stop
operator does not provide such services.
This provision does not impact those
services provided by State merit staff.
The final proposed expansion in this
subpart is the requirement that Local
Boards select one-stop operators
through the competitive process
described in §§ 678.600 through
678.635.
Proposed paragraph (m) describes the
requirement that the Local Board work
with the State to ensure that there are
sufficient numbers and types of
providers of career and training services
in the local area so that consumer
choice and opportunities for
employment for individuals with
disabilities are maximized.
Proposed paragraph (n) reflects a
number of new functions for the Local
Board related to coordination with adult
education and literacy providers in the
local area. The regulation requires the
Local Board to review applications to
provide adult education and literacy
activities under title II to determine
whether such applications are
consistent with the local plan. It also
requires the board to make
recommendations to the eligible agency
to promote alignment with the local
plan. Further information regarding
Local Board coordination with adult
education and literacy providers is
provided at 34 CFR 463 which requires
the eligible agency to establish in its
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competition, a processes by which
applicants must submit an application
to the Local Board for review prior to its
submission to the eligible agency. This
subpart also includes a role for the
board in replicating and implementing
cooperative agreements in accordance
with subparagraph (B) of sec. 101(a)(11)
of the Rehabilitation Act of 1973 (29
U.S.C. 721(a)(11)), and implementing
cooperative agreements in accordance
with that section with the local agencies
administering plans under title I of that
Act (29 U.S.C. 720 et seq.) (other than
sec. 112 or part C of that title (29 U.S.C.
732, 741) to enhance the provision of
services to individuals with disabilities
and other individuals.
Proposed paragraph (q) requires the
Local Board to certify one-stop centers
in accordance with § 662.600.
Section 679.380 How does the Local
Board satisfy the consumer choice
requirements for career services and
training services?
Proposed § 679.380 describes how the
Local Board satisfies the consumer
choice requirements for career services
and training services. While WIA
required the Local Board to maximize
consumer choice for training services,
consumer choice for career services is a
new requirement under WIOA.
Clarification of the board’s role will
minimize confusion for one-stop
managers and frontline staff.
Proposed paragraphs (a)(1) through (3)
describe the process of how the Local
Board assists the State Board in
identifying providers, ensures a
sufficient number of providers, and
provides performance and cost
information through the one-stop
system.
Proposed paragraphs (b)(2)(i) and (ii)
describe how the Local Board satisfies
the requirement to provide consumer
choice for career services. In general, the
Local Board must decide which services
are best provided by the one-stop
operator and which services may
require a contracted provider.
Furthermore, these paragraphs require
the board to identify a wide range of
services based on the needs in the local
area with special attention to services
for individuals with disabilities and
literacy services. Requiring the board to
identify a wide array of potential career
service providers, while still allowing
the board to ultimately determine the
career service providers, balances board
flexibility and customer choice. There is
no requirement to provide customers
with a choice of providers for a given
career service.
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Section 679.390 How does the Local
Board meet its requirement to conduct
business in an open manner under the
‘‘sunshine provision’’ of the Workforce
Innovation and Opportunity Act?
Proposed § 679.390 maintains the
Local Board’s requirement to conduct
business in an open manner, but
expands on the scope of what the public
must be made aware of and requires that
information be shared by electronic
means as well as through open meetings
as provided for in WIOA sec. 107(e).
These new requirements facilitate the
transparent functioning of the board and
contribute to smoother board
operations. This can only be
accomplished by each Local Board
member actively participating during
Local Board meetings, and by
developing effective by-laws that
outline the nomination process, which
includes steps for a prompt nominee
during a vacancy, term limitations, and
encourage the use of technology and
active participation.
Section 679.400 Who are the staff to
the Local Board and what is their role?
Proposed § 679.400 describes the
Local Board’s authority to hire staff and
the appropriate roles for board staff.
This proposal clarifies and differentiates
the staff’s role and requires the Local
Board to hire only qualified staff.
Proposed paragraph (a) authorizes the
board to hire a director and other staff.
The volunteer board may not have the
capacity to fulfill the required board
functions at WIOA sec. 107(d). Board
support ensures these functions are
achieved.
Proposed paragraph (b) requires the
board to apply objective qualifications
to the board director. It is in the best
interest of the public workforce system
to ensure the director of the board is
competent and experienced with
workforce programs and service
delivery.
Proposed paragraph (c) limits the
board staff’s role to assisting the board
fulfill the functions at WIOA sec. 107(d)
unless the entity selected to staff the
board enters into a written agreement
with the board and CEO as noted in
paragraph (e) and described more fully
in § 679.430 of this part. The reasons
that the Department proposes to require
a written agreement if the staff provide
functions outside of those in WIOA sec.
107(d) are discussed in the preamble to
§ 679.430 of this part.
Proposed paragraph (d) requires Local
Boards that elect to hire a director to
establish objective qualifications to
ensure that the selected candidate
possesses the knowledge and skills to
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assist the board in carrying out its
functions.
Proposed paragraph (e) limits the
payment of the Local Board director and
board staff to the basic pay rate for level
II of the Executive Schedule under sec.
5313 of title 5, U.S.C. This requirement
ensures that board staff are compensated
at a reasonable level.
Section 679.410 Under what
conditions may a Local Board directly
be a provider of career services, or
training services, or act as a one-stop
operator?
Proposed § 679.410 explains the
situations in which the Local Board may
directly act as a one-stop operator, a
provider of career services or training
services. Proposed § 679.410(a)(1)(i) and
(ii) establishes that a Local Board may
act as a one-stop operator where a Local
Board successfully participates in a
competition or if the board meets the
criteria for sole source procurement.
Under both circumstances, as required
by proposed § 679.410(a)(2),
implementing WIOA sec. 107(g)(2), the
Governor and CEO must agree to such
selection. This clarifies the interaction
between sec. 122(d)(2)(A) of WIOA,
which requires that Local Boards select
a one-stop operator through a
competitive process, and WIOA sec.
107(g)(2), which states that a Local
Board can be designated as a one-stop
operator only with the agreement of the
Governor and CEO in the local area. One
interpretation of sec. 107(g)(2) is that
Local Boards, with approval of the
Governor and CEO, could be selected as
one-stop operators without undergoing a
competitive process. However, such a
non-competitive selection is only
appropriate after a competitive process
has been conducted as required by
WIOA sec. 122(d)(2)(A). The
Department welcomes comments
regarding this interpretation.
Proposed § 679.410(a)(3) also requires
that where a Local Board acts as a onestop operator, the State must ensure
certification of one-stop centers. Local
Boards are required to certify one-stop
centers; however, States must fulfill that
role when a Local Board acts as a onestop operator to avoid conflicts of
interest with a Local Board certifying its
own performance.
Proposed § 679.410(b) provides that a
Local Board may act as a provider of
career services only with the agreement
of the CEO in the local area and the
Governor. The Department interprets
WIOA sec. 107(g)(2) to operate as a
general exception from the requirement
that the Local Board award contracts to
providers of career services consistent
with 2 CFR part 200. A Local Board
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acting as a direct provider of services is
not optimal, as the Local Board is
designed to oversee the one-stop system
and its services, not provide them.
However, unlike the selection of onestop operators, which are statutorily
required to be competitively selected,
there is no similarly clear statutory
requirement for providers of career
services. Therefore, the Department
does not propose to require that a
competition fail before the Local Board
may provide career services.
Proposed 679.410(c) specifies that a
Local Board is prohibited from
providing training services unless the
Governor grants a waiver in accordance
with WIOA sec. 107(g)(1). Proposed
§ 679.410(c)(1) requires the State to
develop a procedure to review waiver
requests received from Local Boards and
the limitations of the waiver that
incorporates the criteria listed at WIOA
sec. 107(g)(1)(B)(i). While WIA
contained provisions for a similar
waiver, it did not include any such
criteria. The intent of this waiver is to
provide the option for Local Boards to
provide training services in extenuating
circumstances only, such as rural areas
with limited training providers. A
formal procedure facilitates
transparency and clarity regarding the
criteria for the training waiver and
ensures that any Local Board that
applies is subject to the same criteria.
Furthermore, the new criteria
underscore that the waiver is not
appropriate for local areas that have a
robust network of training providers.
Proposed § 679.410(c) indicates that
the local area must make the request to
be designated as a training provider
available through public comment for a
period of 30 days or more and include
those comments in the local area’s final
request to the State. The proposed
section also outlines the timeline for
approval and Governor’s authority to
revoke a waiver if the Governor
determines it is no longer needed or the
Local Board demonstrates a pattern of
inappropriate referrals. This proposed
section helps ensure that the local area
is acting in good faith when asserting
that there are insufficient providers in
the local area and protects against a
conflict of interest.
Proposed § 679.410(d) affirms that the
general prohibitions that apply to Local
Boards directly providing career
services or training services also apply
to board staff.
Section 679.420 What are the
functions of the local fiscal agent?
Proposed § 679.420 describes the role
of the local fiscal agent when the CEO
in a local area elects to designate a fiscal
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agent. While the term ‘fiscal agent’ was
widely used under WIA, the term was
never defined, which led to inconsistent
understanding of their role and function
throughout the workforce system. This
section clarifies the role of a fiscal agent
to create a common understanding of
that role.
Proposed paragraph (a) describes that
the CEO or the Governor, where the
Governor serves as the local grant
recipient for a local area, may designate
an entity to serve as a local fiscal agent.
Proposed paragraph (b) provides a list
of the key functions of a fiscal agent.
The appropriate role of fiscal agent is
limited to accounting and funds
management functions rather than
policy or service delivery. Proposed
fiscal agent functions include those
listed in paragraphs (b)(1) through (6)
and (c) provide additional potential
functions for single State areas. The
Department requests comment from
State and local stakeholders regarding
appropriate functions for a fiscal agent.
Section 679.430 How do entities
performing multiple functions in a local
area demonstrate internal controls and
prevent conflict of interest?
Proposed § 679.430 clarifies how
entities performing multiple functions
in a local area demonstrate internal
controls and prevent conflict of interest.
This proposed provision requires a
written agreement with the Local Board
and CEO when a single entity operates
in more than one of the following roles:
Local fiscal agent, Local Board staff,
one-stop operator, or direct provider of
career services or training services. The
proposed paragraph clarifies how the
organization will carry out its
responsibilities while demonstrating
compliance with WIOA and
corresponding regulations, relevant
OMB circulars, and the State’s conflict
of interest policy. While it may be
appropriate in some instances for a
single organization to fulfill multiple
roles, a written agreement between the
Local Board, CEO, and the organization
fulfilling multiple roles is the best
method to limit conflict of interest or
the appearance of conflict of interest,
minimize fiscal risk, and develop
appropriate firewalls within a single
entity performing multiple functions.
4. Subpart D—Regional and Local Plan
WIOA provides designated regions
and local workforce areas the
responsibility and opportunity to
develop employment and training
systems tailored specifically to regional
economies. These systems must meet
the needs of the full range of learners
and workers, including those with
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barriers to employment. The system
must also address the specific needs of
regional employers and the skills they
require. WIOA requires the Local Board,
in partnership with the CEO, to submit
a local plan to the Governor. If the local
area is part of a planning region, the
Local Board will submit its local plan as
part of the regional plan and will not
submit a separate local plan. The local
or regional plan provides the framework
for local areas to define how their
workforce development systems will
achieve the purposes of WIOA. The
regional or local plans serve as 4-year
action plans to develop, align, and
integrate the region and local area’s jobdriven workforce development systems,
and provides the platform to achieve the
local area’s visions and strategic and
operational goals. Since the local plan is
only as effective as the partnerships that
operationalize it, it must represent a
collaborative process among local
elected officials, boards, and required
and other partners (including economic
development, education, and private
sector partners) to create a shared
understanding of the local area’s
workforce investment needs, a shared
vision of how the workforce investment
system can be designed to meet those
needs, and agreement on the key
strategies to realize this vision.
Section 679.500 What is the purpose
of the regional and local plan?
Proposed § 679.500 describes the
purpose of the regional and local plans.
Proposed § 679.500(a)(1) through (4)
explain that the local plan is the
primary vehicle for communicating the
Local Board’s vision for the local
workforce system and aligning and
integrating local service delivery across
Federal programs in a region to foster
better alignment of Federal investments
in job training, integrate service delivery
across programs, and ensure that the
workforce system is job-driven and
matches employers with skilled
individuals. Proposed § 679.500(b)
clarifies that when a State-designated
region encompasses two or more local
areas, the regional plan must meet the
purposes of the local plan and
coordinate resources across the region
and across local areas. This approach is
intended to align resources between
multiple Local Boards.
Section 679.510 What are the
requirements for regional planning?
Proposed §§ 679.510, 679.520, and
679.530 describe the required contents
of the regional plan, the approval
process, and when the regional plan
must be modified. While sec. 106(c) of
WIOA clearly describes the required
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contents of the regional plan, it provides
less detail about the approval and
modification process, saying only that
officials in the planning region must
‘‘prepare, submit, and obtain approval’’
of the plan. Because the local plan is a
component of the regional plan, the
Department has decided to apply the
approval and modification
requirements, including the requirement
to seek public comment and sunshine
provision, to the regional plan.
Proposed § 679.510 implements sec.
106(c) of WIOA and describes the State
and local requirements for regional
planning. Proposed § 679.510(a)(1)
requires Local Boards and CEOs to
participate in a regional planning
process. In some instances, where a
single local workforce development area
comprises a region, the local area will
carry out its planning in this context.
Proposed § 679.510(a)(2) describes the
regional plan contents and submission
process. The Local Boards and CEOs
must submit a regional plan to the
Governor for approval that includes the
activities listed at proposed
§ 679.510(a)(1) and incorporates the
local plans developed for each local
area. Local areas are not required to
submit an additional local plan outside
of the regional planning process. The
coordination required for regional
planning is an effective method for local
areas to identify areas of efficiency,
coordinate effective practices, and
streamline service delivery. While the
regional plan requires coordination of
local performance negotiations with the
State, each CEO, as required by
§ 677.210(b) and (c) will negotiate
performance goals with the State and
will remain ultimately responsible for
ensuring that the local area meets or
exceeds those goals.
Proposed § 679.510(b) requires Local
Boards to make the regional plan
available for comment before submitting
the plan to the Governor and describes
the steps necessary to ensure adequate
public comment. This requirement
provides all affected entities and the
public an opportunity to provide input
to inform plan development.
Proposed § 679.510(b)(5) specifically
requires the public comment process to
be consistent with the ‘sunshine
provisions’ at WIOA sec. 107(e), which
requires that the Local Boards must
make the plan available through
electronic means and open meetings.
This requirement ensures greater
transparency in the planning process,
and encourage regions to consider
efforts to maximize the transparency
and inclusiveness of the process.
Proposed § 679.510(c) requires the
State to provide technical assistance and
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labor market data to facilitate regional
planning. Because States possess a
broader understanding of labor market
information across jurisdictions and
tools for analysis that individual local
areas may not possess, States have a
responsibility to provide and instruct
local areas on the effective use of
regional labor market information.
Section 679.520 What are the
requirements for approval of a regional
plan?
Proposed § 679.520 describes the
approval of the comprehensive 4-year
regional plan. This section requires that
the Governor review completed plans
and stipulates that unless the Governor
determines that any of the conditions
described in proposed paragraphs (a)
through (c) are met the plan will be
considered approved 90 days after
submission of the plan to the Governor.
Section 679.530 When must the
regional plan be modified?
Proposed § 679.530 describes when a
regional plan must be modified.
Proposed § 679.530(a) requires the
Governor to establish procedures
governing regional plan modification,
which will help ensure that the
biannual modification of regional plans
is conducted consistently throughout
the State.
Proposed § 679.530(b) explains that
the Local Boards and appropriate CEOs
in the planning region must review the
regional plan every 2 years and submit
a modification based on significant
changes in labor market and economic
conditions and other factors including
changes to local economic conditions,
and any changes in the financing
available to support WIOA title I and
partner-provided WIOA services. This
proposed requirement helps ensure that
planning regions use their plans to drive
economic development, sector, career
pathway, and customer-focused service
delivery strategies.
Section 679.540 How are local
planning requirements reflected in a
regional plan?
Proposed § 679.540 outlines how local
planning requirements are reflected in a
regional plan. WIOA is silent on the
coordination of the regional and local
plan, noting only that the regional plan
must ‘‘incorporate local plans for each
of the local areas in the planning
region.’’ The Department has
determined that the most appropriate
and least burdensome approach to
implementing this provision is to
incorporate the local plans within the
regional plan. In this arrangement, the
regional plan is completed in
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cooperation with the Local Boards and
CEOs in a planning region, per
§ 679.510(a). Each individual Local
Board and CEO will respond to the local
planning requirements at § 679.560(b)
through (e) individually. The Local
Boards and CEOs in a planning region
must cooperate to develop a common
response to the local planning
requirements that discuss regional labor
market information, as required by
§ 679.540(a), and any other appropriate
requirements permitted by the Governor
per § 679.540(b). When these activities
are completed, the planning region
submits one regional plan to the
Governor that includes the common
discussion of regional labor market
information and other requirements as
required by the Governor, as well as
each local plan in a single document.
Proposed § 679.540(a) requires
regional plans to include the items
identified in §§ 679.510 and 679.560,
which implement secs. 106(c)(1) and
108(b) of WIOA.
Proposed § 679.540(b) specifies the
Governor may issue regional planning
guidance that allows local areas to
provide a common response to any local
requirements it deems as a shared
regional responsibility, which may
include regional economic analysis. The
Department recognizes there are many
planning requirements and encourages
Governors to minimize the individual
local area burden by reducing
duplication and encouraging a
coordinated service delivery strategy.
Section 679.550 What are the
requirements for the development of the
local plan?
Proposed § 679.550 explains the
requirements for the development of the
local plan. This section emphasizes the
importance of collaboration and
transparency in the development and
submission of the local plan and
subsequent modifications.
Proposed § 679.550(a) implements
sec. 108(a) of WIOA and describes the
general requirements for the preparation
and content of the local plan.
Proposed § 679.550(b) requires Local
Boards to make the local plan available
for comment before submitting the plan
to the Governor and describes the steps
necessary to ensure adequate public
comment. This requirement provides all
affected entities and the public an
opportunity to provide input to inform
plan development. This section
implements sec. 108(d) of WIOA.
Proposed § 679.550(b)(5) requires the
public comment process to be consistent
with the ‘sunshine provisions’ at WIOA
sec. 107(e) and proposed § 679.390 and
that the Local Board must make the plan
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available through electronic means and
in open meetings. This requirement
ensures transparency to the public. This
provision implements sec. 107(e) of
WIOA.
Section 679.560 What are the contents
of the local plan?
Proposed § 679.560, consistent with
sec. 108(b) of WIOA, explains what
information must be included in the
local plan. These requirements set the
foundation for WIOA principles, by
fostering strategic alignment, improving
service integration, and ensuring that
the workforce system is industryrelevant, responding to the economic
needs of the local workforce
development area and matching
employers with skilled workers. In
addressing these planning requirements,
boards engage strategic partners to
develop and implement regionally
aligned workforce development
priorities and streamlined service
delivery. Local and regional planning
also is expected to lead to greater
efficiencies by reducing duplication and
maximizing financial and human
resources. WIOA significantly expands
the content requirements for the local
plan.
Proposed § 679.560(a)(1) specifies that
the local plan must meet the
requirements of WIOA sec. 108(b)(1). Of
relevance to this section, the use of
economic and labor market information
ensures that the local strategies are
based on a thorough understanding of
the economic opportunities and
workforce needs of the region, and
inform the alignment of strategies to the
best interests of job seekers and
employers with the economic future of
the State. Similarly, the contents of the
plan must include an analysis of the
workforce development activities in the
region, including an analysis of the
strengths and weaknesses of such
services to address the identified
education and skill needs of the
workforce and employment needs in the
region. A thorough assessment of the
best available information or evidence
of effectiveness and performance
information for specific service models
in the region, as well as a plan to
improve the effectiveness of such
programs by adopting proven or
promising practices, is an important
part of this assessment and strategic
vision. In addition, the regional analyses
described in this proposed section may
be conducted in cooperation with the
other local areas in a local planning
region as part of the regional planning
requirements described at § 661.290 and
must not be conducted by each local
area.
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Proposed § 679.560(a)(1)(iii),
consistent with sec. 108(c) of WIOA
permits local areas to use an existing
analysis to meet the requirements in
§ 679.560(a).
Proposed § 679.560(b) outlines the
required contents of the local plan that
are required by secs. 108(b)(2)-(21) of
WIOA to ensure that a local plan
presents a comprehensive, customerfocused, and actionable service delivery
strategy. This section emphasizes
alignment and coordination to a greater
extent than that required by WIA.
Except where noted, the requirements
outlined in § 679.560(b)(2) through (21)
simply reiterate the statutory
requirements without additional
explanation.
Proposed § 679.560(b)(2) requires
elaboration on the strategies for
alignment by requiring that the Local
Board describe how such alignment will
improve access to services and to
activities that lead to a recognized postsecondary credential. Proposed
§ 679.560(b)(2)(ii) explains that the
Local Board must describe how they
will work with entities carrying out core
programs to facilitate the development
of career pathways and co-enrollment,
as appropriate, in core programs. Coenrollment allows partners to leverage
resources, while providing a more
comprehensive service delivery strategy
that meets the needs of customers with
several barriers to employment.
Additionally, coordination of services in
a customer-focused manner minimizes
the possibility of subsequent reentry
into the public workforce system in
cases where needed services were not
provided or possible barriers not
addressed.
Proposed § 679.560(b)(4) explains that
the Local Board must describe how they
will coordinate local workforce
investment activities with regional
economic development activities that
are carried out in the local area and how
the Local Board will promote
entrepreneurial skills training and
microenterprise services. Alignment
between the public workforce system
and local economic development
activities is critical in order to identify
and fulfill industry talent needs by
training customers for emerging and indemand job skills. Furthermore,
microenterprise services refers to
training for the purposes of selfemployment. This training strategy may
be appropriate for individuals or
participants with multiple barriers to
employment, including persons with
disabilities.
Proposed § 679.560(b)(5) focuses on
the delivery of services through the onestop delivery system in the local area
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and requires descriptions regarding how
the Local Board will ensure the
continuous improvement of eligible
providers of services, including through
the promotion of proven and promising
approaches and evaluation; how the
Local Board will facilitate access to
services, including in remote areas,
through the use of technology and other
means; how entities within the one-stop
delivery system, including one-stop
operators and the one-stop partners, will
comply with WIOA sec. 188, if
applicable, and applicable provisions of
the Americans with Disabilities Act of
1990 (42 U.S.C. 12101 et seq.) regarding
physical and programmatic
accessibility; and the roles and resource
contributions of the one-stop partners.
WIOA, and the corresponding
regulations at § 678.420, establishes the
roles of one-stop partners. These
include providing access to the partner’s
programs through the one-stop system;
making program funds available to
maintain the one-stop delivery system,
including infrastructure costs; providing
applicable career services; entering into
a MOU with the Local Board regarding
one-stop operation; ongoing
participation in the one-stop system;
and providing representation on State
and Local Workforce development
boards as required and Board
committees as needed. Additionally,
one-stop partners are responsible for
sharing infrastructure and career
services costs. Documenting how onestop partners will manage their shared
roles and contribute to the funding of
the one-stop in the local plan increases
accountability and transparency.
Proposed § 679.560(b)(6) through (11)
focus on coordination activities for
improving services and avoiding
duplication. Proposed § 679.560(b)(11)
reflects a new statutory requirement not
contained in WIA that the local plan
include plans, assurances and strategies
for maximizing coordination with
Wagner-Peyser Act services and other
services provided through the one-stop
system.
Proposed § 679.560(b)(12) and (13) are
also new requirements under WIOA.
Proposed § 679.560(b)(12) speaks to
coordination with adult education and
literacy activities under title II of WIOA
and requires a description of how the
Local Board will carry out the review of
local applications submitted under title
II. Proposed § 679.560(b)(13) is intended
to enhance the provision of services to
individuals with disabilities through
cooperative agreements, as defined in
WIOA sec. 107(d)(11), and other
collaborative efforts between the Local
Board and the local VR entity. All such
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collaborative efforts must be described
in the local plan.
Proposed § 679.560(b)(16) requires the
Local Board to include local levels of
performance that the board has
negotiated with the Governor in the
local plan. Additionally, this section
proposes that the local plan must
include the standards, process, or
performance measures that the Local
Board will use to evaluate the
performance of the local fiscal agent
where the CEO has designated such an
entity. These proposed requirements
increase transparency and public
accountability, while helping ensure the
Local Board has the information it needs
to ensure sustained fiscal integrity of
public funds.
Proposed § 679.560(b)(19) maintains
the requirement that the local plan
include a description of the process
used by the Local Board to provide for
public input into the development of
the plan and for public comment on the
completed plan prior to its submission.
Unlike WIA, this regulation identifies
the 30-day timeframe for public
comment prior to submission of the
plan.
Proposed § 679.560(b)(20), new to
WIOA, requires a description of how the
one-stop centers are implementing and
transitioning to an integrated,
technology-enabled intake and case
management information system for
programs carried out under WIOA and
by one-stop partners.
Proposed § 679.560(b)(21) requires
that the plan include the process by
which priority of service must be
applied by the one-stop operator, but
also clarifies that such priority is for
adult career and training services and
must be given to recipients of public
assistance, other low-income
individuals, and individuals who are
basic skills deficient. The Department is
proposing to include this requirement
under the authority to require additional
reporting, recordkeeping, and
investigations. Including the priority
service policy in the local plan will help
ensure a more uniform application of
the policy throughout the local area.
As permitted by sec. 108(b)(22) of
WIOA, proposed § 679.560(c) requires
that the plan include any additional
information required by the Governor.
Proposed § 679.560(d) recommends
that the local plan identify the portions
of the local plan that the Governor has
designated as appropriate for common
response among all local areas in a
planning region, as per the regulations
at 20 CFR 679.540.
Proposed § 679.560(e) reflects the
requirement in WIOA sec. 108(e) that
any comments submitted during the
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public comment period that represent
disagreement with the plan must be
submitted with the local plan.
Section 679.580 When must the local
plan be modified?
Proposed § 679.580(a) requires the
Governor to establish procedures
governing local plan review and
modification to ensure that the biannual
review and modification of local plans
is conducted consistently throughout
the State.
Proposed § 679.580(b) explains that
the Local Board and appropriate CEOs
must review the local plan every 2 years
and submit a modification as needed,
based on significant changes in labor
market and economic conditions and
other factors including changes to local
economic conditions, changes in the
financing available to support WIOA
title I and partner-provided WIOA
services, changes to the Local Board
structure, or a need to revise strategies
to meet performance goals. This
requirement is consistent with WIOA
sec. 108(a). This proposed requirement
helps ensure that local areas use their
plans to drive service delivery strategies
and the activities the local area is
performing remains consistent with the
plan.
Section 679.570 What are the
requirements for approval of a local
plan?
Proposed § 679.570 describes the
approval of the comprehensive 4-year
local plan. Proposed § 679.570(a)
requires that the Governor review
completed plans and stipulates that
unless the Governor determines that the
conditions described in paragraphs
(a)(1) through (3) are met the plan will
be considered approved 90 days after
submission of the plan to the Governor.
This section implements sec. 108(e) of
WIOA.
Proposed § 679.570(b) outlines the
processes, roles, and responsibilities for
situations in which the State is a single
local area. Proposed § 679.570(b)(1)
clarifies the State must incorporate the
local plan in the State’s Unified or
Combined State Plan submitted to DOL.
Proposed § 679.570(b)(2) states that the
Secretary of Labor will perform the roles
assigned to the Governor as they relate
to local planning activities. Proposed
§ 679.570(b)(3) indicates the Secretary of
Labor will issue planning guidance for
single area States. This section
implements sec. 106(d) of WIOA.
The Department recognizes that the
development of the local plan is
dependent on several other essential
State and local WIOA implementation
activities and that local areas may not be
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able to respond fully to each of the
required elements of the local plan in
the timeframe provided. The
Department seeks comment on the
scope of the challenges local areas may
face regarding regional and local
planning, and potential actions that the
Department can take to help local areas
address these challenges.
5. Subpart E—Waivers/WorkFlex
(Workforce Flexibility Plan)
This subpart describes the statutory
and regulatory waiver authority
provided by WIOA sec. 189(i), and the
requirements for submitting a Workforce
Flexibility Plan under WIOA sec. 190.
WIOA provides States the flexibility to
request a waiver of program
requirements in order to implement new
strategic goals for the improvement of
the statewide workforce development
system and to provide better customer
service in exchange for accountability
for expected programmatic outcomes. A
Workforce Flexibility plan provides
additional flexibility to the State. In
general, a State with an approved
Workforce Flexibility plan is given the
authority to identify local level
provisions to waive without further
approval from the Secretary of Labor to
achieve outcomes specified in the plan.
A description of what provisions of
WIOA and Wagner-Peyser may and may
not be waived is included, along with
an explanation of the procedures for
requesting a waiver. The subpart also
describes what may and may not be
waived under a Workforce Flexibility
Plan, and the procedures for obtaining
approval of a plan. The WIOA
requirements for obtaining approval for
a waiver or Workforce Flexibility Plan
are similar to those in WIA secs. 189(i)
and 192, respectively; therefore, many
of the proposed regulations are the same
as the regulations implementing WIA.
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Section 679.600 What is the purpose
of the General Statutory and Regulatory
Waiver Authority in the Workforce
Innovation and Opportunity Act?
Proposed § 679.600(a) explains that
the purpose of the general statutory and
regulatory waiver authority, provided
under WIOA sec. 189(i)(3), is to provide
flexibility to States and local areas to
enhance their ability to improve the
statewide workforce investment system
to carry out WIOA’s goals and purposes.
Proposed § 679.600(b) explains that a
waiver may be requested to address
impediments to a strategic plan that is
consistent with the purposes of title I of
WIOA, which are identified at
§ 675.100(a) through (h).
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Section 679.610 What provisions of
the Workforce Innovation and
Opportunity Act and the Wagner-Peyser
Act may be waived, and what
provisions may not be waived?
Proposed § 679.610(a) implements
WIOA sec. 189(i)(3)(A)(i), and explains
that the Secretary may waive for a State
or local area any of the statutory or
regulatory requirements of WIOA title I,
subtitles A, B, and E, except for the
requirements listed in paragraphs (a)(1)
through (12). As noted in this section,
the purposes of title I of WIOA are
described at 20 CFR 675.100(a) through
(h). The Department will provide
examples of requirements that it will
not waive in subsequently issued
guidance.
Proposed § 679.610(b) follows WIOA
sec. 189(i)(3)(A)(ii), and explains that
the Secretary may waive the statutory or
regulatory requirements of WagnerPeyser secs. 8 through 10, except for the
requirements listed in paragraphs (b)(1)
and (2).
Section 679.620 Under what
conditions may a Governor request, and
the Secretary approve, a general waiver
of statutory or regulatory requirements
under the Workforce Innovation and
Opportunity Act?
Proposed § 679.620(a) through (f)
implements WIOA sec. 189(i)(3) and
describes the conditions under which a
Governor may request, and the Secretary
may approve a waiver of statutory or
regulatory requirements.
Proposed § 679.620(a) explains that
the Secretary will issue guidelines on
waiving WIOA and Wagner-Peyser
requirements. States will be required to
follow the Secretary’s guidelines, which
supplement the requirements listed in
20 CFR 679.600 through 679.620. The
guidelines will be issued
contemporaneously with State planning
guidance. This proposed section retains
the same requirements found at 20 CFR
661.420(f).
Proposed § 679.620(b) explains that
the Governor may request a general
waiver in consultation with the
appropriate CEOs by submitting a
waiver plan which accompanies the
State’s WIOA 4-year Unified or
Combined State Plan, 2-year
modification, or by directly submitting
a waiver plan at any time after a State’s
WIOA Plan is approved. This approach
is consistent with WIOA secs. 102 and
103, which require the State to submit
either a 4-year Unified or Combined
State Plan.
Proposed § 679.620(c) explains that a
Governor’s waiver request may seek
waivers for the entire State or for one or
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more local areas within the State. This
proposed section retains the same
requirements found at 20 CFR
661.420(b).
Proposed § 679.620(d) lists the
required components of a waiver plan
for the improvement of the statewide
workforce development system and
includes the requirements of WIOA sec.
189(i)(3)(B). Specifically, the plan must
identify the statutory or regulatory
requirements that are requested to be
waived, and the goals that the State or
local area intend to achieve as a result
of the waiver. The plan must also
describe the actions that the State or
local area has taken to remove State or
local statutory or regulatory barriers; the
goals of the waiver and the expected
programmatic outcomes if the waiver is
granted; the individuals affected by the
waiver; and the processes used to
monitor the progress in implementing
the waiver, provide notice to any Local
Board affected by the waiver, and
provide any Local Board affected by the
waiver an opportunity to comment on
the request.
Proposed § 679.620(d)(1) requires that
the waiver plan explain how the goals
of the waiver relate to the Unified or
Combined State Plan. Waivers must
support State strategies as enumerated
in the State Plan. Waivers are not
separate or detached from the Unified or
Combined State Plan: An approved
waiver constitutes a modification of the
State Plan.
Additionally, as required by
§ 679.620(d)(4), the waiver plan must
describe how the waiver will align with
the Department’s priorities, such as
supporting employer engagement,
connecting education and training
strategies, supporting work-based
learning, and improving job and career
results. The Department’s priorities may
change and evolve to reflect major
changes in the economy, changes in the
needs of the workforce, and new
developments in service strategy
approaches. This new requirement
ensures that the Department is issuing
waivers that align with and help achieve
the priorities of the Department. As
noted in § 679.620(d)(4)(v), a more
complete list of current priorities will be
articulated in future guidance.
Proposed § 679.620(d)(5) requires the
waiver plan to generally describe the
individuals affected by the proposed
waiver. This section specifically
requires that the plan describe how the
waiver will impact services for
disadvantaged populations and
individuals with multiple barriers to
employment. One of the primary
purposes of WIOA is to increase and
enhance education, employment, and
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training opportunities for individuals
with barriers to employment, including
low-income individuals, individuals
with disabilities, the Native American
population, and the other groups
identified in sec. 3(24) of the Act. The
Department has added this specific
requirement to ensure that the State, as
part of its waiver request, considers the
employment and training needs of these
groups and how the proposed waiver
would affect these populations.
An additional requirement at
proposed § 679.620(d)(6)(iv) is that the
plan must describe the processes used
to ensure meaningful public comment,
including comment by business and
organized labor. This requirement was
included to ensure as transparent a
process as possible, to make sure that
the public is given an opportunity to
voice their concerns or support of
potential changes in the public
workforce system, while the Governor is
afforded an opportunity to reflect on the
opinions of the public before proceeding
with a waiver request. This proposed
section retains the same requirements
found at 20 CFR 661.420(c)(5)(iv).
The Governor must also describe, per
§ 679.620(d)(6)(v), the process used to
collect and report information about the
goals and outcomes achieved under the
waiver plan in the State’s WIOA Annual
Report. The Department approves
waivers in order to assist States and
local areas in achieving goals and
outcomes that will improve the
statewide workforce development
system. This collection and reporting
requirement holds States accountable
for the goals and outcomes to be
achieved with the approved waivers and
provides a regular and public
assessment of the effectiveness of States
and local areas in doing so.
Finally, proposed § 679.620(d)(7)
explains that if a waiver is up for
renewal, the Secretary may require that
States provide the most recent data
available about the outcomes achieved
under the existing waiver. This
requirement will ensure that the
Department has the most recent,
relevant information before deciding
whether to renew a waiver. As part of
its decision the Department may take
other factors into account when
deciding to renew or deny a waiver.
Proposed § 679.620(e) specifies that
the Secretary will issue a decision on a
waiver request within 90 days of the
receipt of the waiver, consistent with
WIOA sec. 189(i)(3)(C).
Proposed § 679.620(f) implements the
requirements of WIOA secs. 189(i)(C)(i)
and (ii), and explains that the Secretary
will approve a waiver request only to
the extent that the Secretary determines
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that the requirements for which a
waiver is requested impede the ability
of either the State or local area to
implement the State’s plan to improve
the statewide workforce investment
system, and the State has executed a
MOU with the Secretary requiring the
State to meet, or ensure that the local
area meets, agreed-upon outcomes and
to implement other appropriate
measures to ensure accountability. This
section also makes approval of the
waiver contingent on the Secretary’s
determining that the waiver plan meets
all of the requirements of WIOA sec.
189(i)(3) and §§ 679.600 through
679.620. This proposed section retains
the same requirements found at 20 CFR
661.420(e), except that the statutory
reference has changed from sec.
189(i)(4) to sec. 189(i)(3).
Consistent with current practice,
proposed § 679.620(g) authorizes the
Secretary to approve a waiver for as long
as the Secretary determines is
appropriate; however, the duration of
the waiver may not exceed the duration
of a State’s current Unified or Combined
State Plan. For example, a waiver
granted during the third year of the Plan
would have to be reconsidered as part
of the subsequent plan submission and
approval cycle, at the latest. By limiting
the duration of the waiver, the
Department will be able to ensure that
the waiver is consistent with the goals
of the State’s plan and remains
consistent with the priorities of the
Department.
Proposed § 679.620(h) gives the
Secretary the authority to revoke a
State’s waiver under certain
circumstances. The Secretary has an
obligation to oversee the
implementation and performance of
States under their State plan, including
any waivers granted by the Department.
As part of this responsibility, the
Department proposes to allow the
Secretary to revoke a waiver granted
under this section if the State fails to
meet the agreed upon outcomes and
measures, the State fails to comply with
the terms and conditions of the MOU or
other document that includes the terms
and conditions of the waiver, and if the
Secretary determines that the waiver no
longer meets any of the requirements of
§§ 679.600 through 679.620. Limiting
the Secretary’s authority to revoke to
these circumstances balances the State’s
need for flexibility with the Secretary’s
duty to oversee the implementation of
the waiver.
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Section 679.630 Under what
conditions may the Governor submit a
Workforce Flexibility Plan?
Proposed § 679.630 describes the
conditions under which the Governor
may submit a workforce flexibility
(work-flex) plan.
Proposed § 679.630(a) includes the
requirements of WIOA sec. 190(a), and
explains that a State may submit a
workforce flexibility plan for approval
by the Secretary, under which three
categories of statutory or regulatory
requirements can be waived.
Proposed § 679.630(a)(1),
implementing WIOA sec. 190(a)(1),
permits a State to waive any of the
statutory or regulatory requirements that
are applicable to local areas under
WIOA title I (if the local area requests
the waiver), except for the requirements
listed in proposed paragraphs (a)(1)(i)
through (iv). In addition to the statutory
exceptions, this proposed section adds
the requirement that any of the statutory
provisions essential to WIOA’s title I
purposes cannot be waived.
The second category, described in
proposed § 679.630(a)(2), and
implementing WIOA sec. 190(a)(2),
explains that any of the statutory or
regulatory requirements applicable to
the State under Wagner-Peyser Act secs.
8 through 10 may be waived, except for
requirements listed at § 679.630(a)(2)(i)
and (ii). This proposed section retains
the same requirements found at 20 CFR
661.430(a)(2).
Proposed § 679.630(a)(3),
implementing WIOA sec. 190(a)(3),
permits waiver of the statutory or
regulatory requirements applicable
under the Older Americans Act of 1965
to State agencies on aging with respect
to activities carried out using funds
allotted under sec. 506(b) of the Older
Americans Act, except the for
requirements identified at
§ 679.630(a)(3)(i) through (iv).
Proposed § 679.630(b) explains what
States are required to include in their
workforce flexibility plan.
Proposed § 679.630(b)(1) and (3)
implement the requirements at WIOA
sec. 190(b)(1), and specify that a State
workforce flexibility plan must include
a description of the process by which
local areas in the State may submit and
obtain State approval of applications for
waivers, and the requirements of title I
of WIOA that are likely to be waived by
the State under the plan.
Proposed § 679.630(b)(2) adds the
requirement that the plan include a
description of the criteria that the State
will use to approve local area waiver
requests and how such requests support
implementation of the goals identified
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in the State plan. These criteria must be
addressed in the waiver review process
discussed at § 679.630(b)(1). This
requirement ensures that all local
waiver requests are evaluated
consistently by the State.
Proposed § 679.630(b)(4) implements
the requirements of WIOA sec. 190(b)(2)
and requires a description of the
Wagner-Peyser Act secs. 8 through 10
that are proposed for waiver, if any.
This proposed section retains the same
requirements found at 20 CFR
661.430(c)(3).
Proposed § 679.630(b)(5) implements
the requirements of WIOA sec. 190(b)(3)
and requires a description of the
requirements of the Older Americans
Act that are proposed for waiver, if any.
This proposed section retains the same
requirements found at 20 CFR
661.430(c)(4).
Proposed § 679.630(b)(6) implements
the requirements of sec. 190(b)(4) of
WIOA by requiring that the plan
describe the outcomes to be achieved by
the waivers. The section explains that
‘‘outcomes’’ include, when appropriate,
revisions to adjusted levels of
performance included in the State or
local plan under WIOA title I, and a
description of the data or other
information the State will use to track
and assess outcomes. This provision
allows the Department to measure more
effectively the impact of waivers. For
some waivers, it may be difficult to
make a direct connection between the
waiver and a direct impact on
performance; in those instances the
State must discuss the impact of a
waiver on performance to the extent that
the State has available data.
Proposed § 679.630(b)(7) implements
WIOA sec. 190(b)(5) and requires that
the plan include the measures to be
taken to ensure appropriate
accountability for Federal funds in
connection with the waivers. This
proposed section retains the same
requirements found at 20 CFR
661.430(b)(6).
Proposed § 679.630(c) explains that a
State’s workforce flexibility plan may
accompany the State’s Unified or
Combined State Plan, the required 2year modification of the State’s Unified
or Combined State Plan, or may be
submitted separately as a plan
modification. This requirement
emphasizes that the State may submit a
workforce-flexibility plan at any time.
Proposed § 679.630(d) explains that
the Secretary may approve a workforce
flexibility plan consistent with a period
of approval of the State’s Unified or
Combined State Plan, and not more than
5 years. For example, if a workflex plan
is approved in the third year of a 4-year
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Unified Plan, the approval would be for
the remainder of the period covered by
the plan and then would need to be
reconsidered as part of the subsequent
Unified Plan or Combined Plan.
Approving a workforce flexibility plan
for the life of a currently approved
Unified or Combined State Plan ensures
that the waivers granted under the plan
are consistent with the strategies
outlined in the State Plan. The period of
up to 5 years is consistent with sec.
190(c) of WIOA.
Proposed § 679.630(e) implements
WIOA sec. 190(d) and requires the State
to provide notice and opportunity for
comment on the proposed waiver
request to all interested parties and the
general public before submitting the
workforce flexibility plan to the
Secretary. This proposed section retains
the same requirements found at 20 CFR
661.430(e).
Proposed § 679.630(f) explains that
the Secretary will issue guidelines
under which States may request
designation as a workflex State. This
proposed section retains the same
requirements found at 20 CFR 661.430(f)
and notes that the Secretary’s guidelines
may include requirements for a State to
implement an evaluation of the impact
of work-flex in that State.
Section 679.640 What limitations
apply to the State’s Workforce
Flexibility Plan authority under the
Workforce Innovation and Opportunity
Act?
Proposed § 679.640 explains the
limitations that apply to the State’s
Workforce Flexibility Plan authority
under WIOA.
Proposed § 679.640(a)(1) specifies that
under work-flex waiver authority, a
State must not waive WIOA, WagnerPeyser Act, or Older Americans Act
requirements which are excepted from
the work-flex waiver authority and
described in § 679.630(a). This proposed
section retains the same requirements
found at 20 CFR 661.440(a)(1).
Proposed § 679.640(a)(2) explains that
requests to waive title I of WIOA
requirements that are applicable at the
State level may not be granted under
work-flex waiver authority granted to a
State. These requests may only be
granted by the Secretary under the
general waiver authority which is
described at §§ 679.610 through
679.620. The Department included this
provision to emphasize that work-flex
waivers are issued under separate
authority than general waivers, and that
States may not use work-flex waiver
authority as a substitute for the general
State-level waivers available under sec.
189(i)(3). This proposed section retains
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the same requirements found at 20 CFR
661.440(a)(2).
Proposed § 679.640(b) expands on
§ 679.630(b)(6) by explaining that once
approved the Secretary may terminate a
work-flex designation if the State fails to
meet agreed-upon outcomes or the terms
and conditions contained in its
workforce flexibility plan. The
Department included this provision to
emphasize that the Department reserves
the authority to terminate a workflex
plan if a State is not meeting the terms
and conditions agreed to between the
Department and the State, including the
relevant performance outcomes.
D. Part 680—Adult and Dislocated
Worker Activities Under Title I of the
Workforce Innovation and Opportunity
Act
1. Introduction
In this part of the proposed rule, the
Department describes requirements
relating to the services that are available
for adults and dislocated workers under
WIOA. Adult services are provided to
job seekers who are at least 18 years old;
the statute and the proposed rule, in
providing for such services, establish a
priority for serving low-income
individuals, participants on public
assistance, and individuals lacking basic
work skills. Dislocated worker services
are targeted for workers who are
unemployed and have lost a job,
through no fault of their own,
sometimes through mass layoffs that
happen during the business cycle. The
goal of these services is to provide for
the return of these individuals to quality
employment. Dislocated workers
generally include an individual who:
• Has been terminated or laid off, or
has received a notice of termination or
layoff from employment;
• Is eligible for or has exhausted
entitlement to UC or has been employed
for a duration sufficient to demonstrate
attachment to the workforce but is not
eligible for UC due to insufficient
earnings or works for an employer not
covered under State UC law; and
• Is unlikely to return to a previous
industry or occupation.
Under WIOA, adults and dislocated
workers may access career services and
training services. WIOA provides for a
workforce system that is universally
accessible, customer centered, and
training that is job-driven. WIOA will
provide for career and training services
at the nation’s nearly 2,500 one-stop
centers. Training is supported through a
robust ETPL, comprised of entities with
a proven capability of securing
participants with quality employment.
WIOA also provides enhanced access
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and flexibility for work-based training
options, such as OJT, customized
training, and incumbent worker
training. In this part, the Department
also discusses supportive services and
needs-related payments that can be
provided, based on customer needs, to
enable them to participate in WIOA
career and training services.
2. Subpart A—Delivery of Adult and
Dislocated Worker Activities Under
Title I of the Workforce Innovation and
Opportunity Act
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Introduction
This subpart discusses the role of
WIOA adult and dislocated worker
services through the one-stop delivery
system. The one-stop delivery system is
the foundation of the workforce system.
The system provides universal access to
career services to meet the diverse needs
of adults and dislocated workers. The
grant recipient(s) for the adult and
dislocated worker program is a required
partner in the one-stop delivery system
and is subject to the required partner
responsibilities set forth in § 678.415.
Career and training services, tailored
to the individual needs of jobseekers,
form the backbone of the one-stop
delivery system. While some jobseekers
may only need self-service or other
basic career services like job listings,
labor market information, labor
exchange services or information about
other services, some jobseekers will
need services that are more
comprehensive and tailored to their
individual career needs. These services
may include comprehensive skills
assessments, career planning, and
development of an individual
employment plan that outlines the
needs and goal of successful
employment. Under WIA, career
services were identified as core and
intensive services and generally
participants would go through each
level of service in order to eventually
receive training. WIOA clarifies that
individuals receiving services in the
one-stop centers must receive the
service that is needed to assist the
individual to meet his or her job search
goals, and does not need to follow a
fixed sequence of services that may not
be necessary to effectively serve the
individual.
Under WIOA, the Department
proposes to classify career services into
two categories: Basic and individualized
career services. This grouping is not
designed to create barriers to training,
but rather identifies the importance that
these two types of career services can
have in helping individuals obtain
employment. Basic career services must
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be made available to all job seekers and
include services such as labor exchange
services, labor market information, job
listings, and information on partner
programs. Individualized career services
identified in WIOA and described in
these proposed regulations are to be
provided by local areas as appropriate to
help individuals to obtain or retain
employment.
Under WIA, participants often were
required to undergo a sequence of core
and intensive services in order to
receive training. WIOA clarifies that
there is no sequence of service
requirement in order to receive training.
Training is made available to
individuals after an interview,
assessment or evaluation determines
that the individual requires training to
obtain employment or remain
employed. Supportive services,
including needs-related payments, can
be essential to enable individuals to
participate in career and training
services.
Section 680.100 What is the role of the
adult and dislocated worker programs in
the one-stop delivery system?
Proposed § 680.100 directs that the
one-stop system is the foundational
system through which adult and
dislocated worker program services are
provided to eligible individuals. WIOA
merges the categories of core services
and intensive services under WIA into
the category of career services.
Section 680.110 When must adults
and dislocated workers be registered
and considered a participant?
Proposed § 680.110 addresses the
important distinction between
registration and participation—two
separate actions in the process by which
adults and dislocated workers seek
direct, one-on-one staff assistance from
the one-stop system. The distinction is
important for recordkeeping and
program evaluation purposes.
Individuals who are primarily seeking
information are not treated as
participants and their self-service or
informational search requires no
registration. When an individual seeks
more than minimal assistance from staff
in taking the next step towards selfsufficient employment, the person must
be registered and eligibility must be
determined. To register, as defined in
§ 675.300, is the point at which
information that is used in performance
information begins to be collected.
Participation is the point at which the
individual has been determined eligible
for program services and has received or
is receiving a WIOA service, such as
career services, other than self-service or
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informational service and is the point at
which an individual is to be included in
performance calculations for the
primary indicators in 20 CFR part 681.
Proposed § 680.110(a) describes the
registration process for collecting
information to support a determination
of eligibility for the WIOA adult and
dislocated worker programs. This
section explains that registration can be
done electronically, through interviews,
or through an application. This section
proposes to distinguish the term
‘‘participation’’ from registration by
providing that participation occurs after
IC and eligibility determination, when
an individual receives a WIOA service,
other than self-service or informational
activities.
Proposed § 680.110(b) requires that
adults and dislocated workers who
receive services other than self-service
and informational activities must be
registered and considered a participant
for WIOA title I services.
Proposed § 680.110(c) maintains the
requirement in WIA regulation
§ 663.105(c) that EO data be collected on
every individual who is interested in
being considered for WIOA title I
financially assisted aid, benefits,
services, or training, and who has
signified that interest by submitting
personal information in response to a
request from the service provider.
Section 680.120 What are the
eligibility criteria for career services for
adults in the adult and dislocated
worker programs?
An individual must be 18 years of age
or older to receive career services in the
adult program. Priority for
individualized career services and
training services funded with title I
adult funds must be given to lowincome adults and public assistance
recipients and individuals who are basic
skills deficient, in accordance with
WIOA sec. 134(c)(3)(E) and proposed
§ 680.600.
Section 680.130 What are the
eligibility criteria for career services for
dislocated workers in the adult and
dislocated worker programs?
Proposed § 680.130(a) states that an
individual must meet the definition of
‘‘dislocated worker’’ in WIOA sec. 3(15)
to receive career services in the
dislocated worker program.
Proposed § 680.130(b) provides that
Governors and Local Boards may
develop policies and procedures for
one-stop operators to use in determining
a dislocated worker’s eligibility for
career services consistent with the
definitions provided in the statute,
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regulations and any guidance issued by
the Secretary.
Proposed § 680.130(b)(1) and (2)
allows for Governors and Local Boards
to develop policies and procedures for
what constitutes a ‘‘general
announcement’’ of a plant closing.
These policies and procedures could
include policies and procedures for
what constitutes a ‘‘general
announcement’’ of a plant closing or for
what constitutes ‘‘unemployed as a
result of general economic conditions in
the community in which the individual
resides or because of natural disasters’’
for individuals who are self-employed,
including family members and ranch
hands.
Section 680.140 What Workforce
Innovation and Opportunity Act title I
adult and dislocated worker services are
Local Boards required and permitted to
provide?
Proposed § 680.140 describes
generally the availability of funds for
use in providing services for adult and
dislocated workers under title I of
WIOA. Local areas have significant
flexibility when providing services with
adult and dislocated worker funds. In
addition to the required career and
training services, local areas may use
these funds to provide additional job
seeker services, business services, as
well as facilitate enhanced coordination
between other partner programs and
entities at the State and local level.
Local areas can use these funds to
develop new types of technical
assistance, develop new intake
procedures, test new procurement
methods which may lead to better
outcomes for jobseekers, and ensure
robust services to businesses throughout
the workforce system.
Paragraph (a) provides that WIOA title
I adult and dislocated worker funds to
local areas must be used to provide
career and training services through the
one-stop delivery system. Local areas
have discretion in the appropriate mix
of services, but both career and training
services must be made available through
the one-stop system for provision to
eligible individuals served through the
system.
Paragraph (b) describes the services
that may be provided with WIOA title
I adult and dislocated worker funds in
local areas.
Subparagraph (b)(1) identifies ‘‘Job
Seeker Services.’’ These services
include customer support activities to
help individuals with barriers to
employment, training programs for
displaced homemakers and individuals
training for nontraditional occupations,
work support activities for low-wage
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workers, supportive services and needsrelated payments, and providing
transitional jobs to individuals with
barriers to employment who are
chronically unemployed or have an
inconsistent work history.
Paragraph (b)(2) identifies ‘‘Employer
Services.’’ These services include
customized screening and referral of
qualified participants in training to
employers, customized employmentrelated services to employers, and
business services.
Paragraph (b)(3) identifies
‘‘Coordination Activities.’’ Coordination
is required among training and
employment activities under WIOA,
child support agencies and services,
Department of Agriculture extension
programs, facilitating remote access by
using technology and the one-stop
delivery system, economic development
agencies, linkages between the public
workforce system and employers and
those between the one-stop delivery
system and unemployment insurance
programs, and organizations that
provide services to individuals with
disabilities.
Paragraph (b)(4) authorizes local areas
to enter into pay-for-performance
contracts as part of a training strategy.
Local areas may use up to 10 percent of
their total adult and dislocated worker
funds under this procurement method.
Paragraph (b)(5) provides for technical
assistance for one-stop operators,
partners, and ETPs regarding the
provision of services to individuals with
disabilities.
Paragraph (b)(6) provides for local
areas to adjust the economic selfsufficiency standards for local areas.
Levels of self-sufficiency may vary by
local area and the local economy; this
flexibility allows local areas to tailor
their services in a way that works in
their local economy.
Paragraph (b)(7) provides for the
implementation of promising services to
workers and employers. Local areas can
build upon promising practices to
improve service delivery to both job
seekers and employers.
Paragraph (b)(8) provides for the use
of funds for incumbent worker training.
Local areas can use up to 20 percent of
their combined adult and dislocated
worker funds to do incumbent worker
training consistent with subpart F of
this part.
Section 680.150 What career services
must be provided to adults and
dislocated workers?
At a minimum, all of the basic career
services described in WIOA sec.
134(c)(2)(A)(i)–(xi) and § 678.430(a)
must be provided in each local area
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through the one-stop delivery system.
These services include referrals to
partner programs, initial assessments,
and labor exchange services.
In addition, services described in
WIOA sec. 134(c)(2)(A)(xii) and
§ 678.430(b), such as career counseling
and the development of an individual
employment plan, must be made
available if appropriate for an
individual to obtain or retain
employment. These services are
categorized as ‘‘Individualized Career
Services’’ in § 678.430(b). An individual
employment plan is discussed in
connection with proposed § 680.180.
Appropriate follow-up services must
be made available to a participant
placed in unsubsidized employment for
a minimum of 12 months following the
participant’s first date of employment.
Follow-up services can be useful for
participants in order to maintain
employment. One-stop staff can provide
workplace information and tips for
success in a workplace environment.
Additionally, follow-up services
provide a continuing link between the
participant and workforce system; these
services allow the one-stop to assist
with other services the participant may
need once he or she obtains
employment. Examples may include
assistance with employer benefits,
health insurance, and financial literacy
and budgeting assistance.
Section 680.160 How are career
services delivered?
Proposed § 680.160 explains that
career services must be provided
through the one-stop delivery system.
Career services may be provided by the
one-stop operator or through contracts
with service providers approved by the
Local Board. A Local Board may not be
the provider of career services unless it
receives a waiver from the Governor and
meets other statutory and regulatory
conditions.
Section 680.170 What is an internship
or work experience for adults and
dislocated workers?
Proposed § 683.170 defines an
internship or work experience as a
planned, structured, time-limited
learning experience that takes places in
a workplace. An internship or work
experience may be paid or unpaid, as
appropriate. An internship or work
experience may be provided in the
private for-profit, non-profit, or public
sectors. Labor standards apply to any
internship or work experience in which
an employee/employer relationship
exists under applicable law. The
Department recognizes the role work
experiences and internships play in
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helping individuals obtain the skills
they need to succeed in the workplace.
An internship or work experience for a
participant in WIOA is classified as an
Individualized Career Service as
described in § 678.430(b). Internships
and work experiences provide a helpful
means for an individual to gain
experience that leads to unsubsidized
employment.
Section 680.180 What is the individual
employment plan?
Proposed § 680.180 explains that an
individual employment plan is an
individualized career service, as
described in § 678.430(b), jointly
developed by the participant and career
planner, that may be appropriate for an
individual. The plan includes an
ongoing strategy to identify employment
goals, achievement objectives, and an
appropriate combination of services for
the participant to obtain these goals and
objectives. Individual employment
plans are one of the most effective ways
to serve individuals with barriers to
employment, and to coordinate the
various services including training
services they may need to overcome
these barriers.
3. Subpart B—Training Services
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Introduction
Training services are discussed at
proposed §§ 680.200 through 680.230.
WIOA is designed to increase
participant access to training services.
Training services are provided to equip
individuals to enter the workforce and
retain employment. Training services
may include, for example, occupational
skills training, OJT, registered
apprenticeship which incorporates both
OJT and classroom training, incumbent
worker training, pre-apprenticeship
training, workplace training with related
instruction, training programs operated
by the private sector, skill upgrading
and retraining, entrepreneurial training,
and transitional jobs. Training services
are available for individuals who, after
interview, evaluation or assessment, and
case management are determined to be
unlikely or unable to obtain or retain
employment that leads to selfsufficiency or higher wages from
previous employment through career
services alone. The participant must be
determined to be in need of training
services and to possess the skills and
qualifications to successfully participate
in the selected program. The
Department explains that some
participants may need additional
services to assist their vocational
training, such as job readiness training,
literacy activities including English
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language training, and customized
training.
provided in accordance with the State
or Local Board’s priority system.
Section 680.200 What are training
services for adults and dislocated
workers?
Section 680.220 Are there particular
career services an individual must
receive before receiving training
services under Workforce Innovation
and Opportunity Act?
WIOA removed the requirement
under WIA that an individual had to
receive an intensive service before
receiving training services. The proposal
explains that, other than an interview,
evaluation, or assessment and career
planning there is no requirement that
additional career services must be
provided before an individual enrolls in
training. Where an assessment is
provided, a previous assessment may be
adequate for this purpose. There is no
requirement for a sequencing of services
under WIOA. If individuals are
determined to be in need of training
consistent with WIOA sec. 134(c)(3)
then they may be placed in training
services. The Department encourages
the use of individualized career services
under § 678.420(b) when appropriate for
an individual; an individual
employment plan or career counseling
informed by local labor market
information and training provider
performance reports often will be
appropriate before an individual
receives training services.
Proposed § 680.220(b) requires that
the case files for individuals must
document the participant eligibility for
training services and explain how this
determination was made—by interview,
evaluation or assessment, career
planning, or other career service, such
as an individual employment plan. It is
important that the one-stop gather
enough information, by whatever
means, be they through an interview or
through career services, to justify the
need for training services.
Proposed § 680.200 directs the reader
to WIOA sec. 134(c)(3)(D) for a
description of available training
services. The proposal provides a series
of examples that is not all-inclusive.
Section 680.210 Who may receive
training services?
Proposed § 680.210(a) discusses the
process used to determine when and
what training services must be made
available to an individual. Under WIOA,
an individual may receive training
services after an interview, evaluation,
or assessment, and career planning if
the one-stop operator or partner
determines the individual is unlikely or
unable, by only receiving career
services, to retain employment that
leads to economic self-sufficiency or
wages comparable to or higher than
wages from previous employment.
Additionally, the one-stop operator or
partner must also determine that the
training the individual receives would
result in employment leading to
economic self-sufficiency or wages
comparable to or higher than wages
from previous employment. The onestop operator or partner must also
determine that the individual has the
skills and qualifications to successfully
participate in and complete the training.
Upon a determination that career
services are unlikely to obtain these
employment outcomes, the individual
may be enrolled in training services.
The individual should have the skills
and qualifications needed to
successfully participate in and complete
the training services.
Proposed § 680.210(b) requires that
individuals, for whom training has been
deemed appropriate, select a training
program linked to employment
opportunities in the local area or in an
area to which the individual is willing
to commute or relocate. The selection of
this training program should be fully
informed by the performance of relevant
training providers, and individuals must
be provided with the performance
reports for all training providers who
provide a relevant program.
Proposed § 680.210(c) explains that
WIOA training services must be
provided when other sources of grant
assistance are unavailable to the
individual.
Proposed § 680.210(d) requires that
training services provided under the
WIOA adult funding stream must be
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Section 680.230 What are the
requirements for coordination of
Workforce Innovation and Opportunity
Act training funds and other grant
assistance?
Proposed § 680.230 restates the
requirements for coordination with
other forms of assistance that apply
under WIA. The Department has also
added a sentence to § 680.230(a)(2) to
reflect the new provision in WIOA sec.
134(c)(3)(B)(iii) that one-stop operators
and one-stop partners may take into
account the full cost of the training,
including the cost of supportive
services. The Department encourages
program operators to do so.
Proposed § 680.230(a) states that
when coordinating other grant
assistance the one-stop operator or
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partner may take into account the full
cost of participating in training services,
including the cost of dependent care
and transportation and other
appropriate costs. Additionally, the onestop operator or partner must coordinate
training funds available and make
funding arrangements with one-stop
partners and other entities.
Proposed § 680.230(b) states that
WIOA participants may enroll in WIOAfunded training while the participant
has a Pell Grant application pending as
long as the one-stop operator has made
arrangements with the training provider
and the WIOA participant regarding the
award of the Pell Grant. The training
provider must reimburse the one-stop
operator or partner the amount of the
WIOA funds used to pay for the training
costs covered by the Pell Grant in the
event that one is approved after WIOAfunded training has begun.
Reimbursement from the participant for
education-related expenses is not
required.
4. Subpart C—Individual Training
Accounts
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Introduction
Individual Training Accounts (ITAs)
are key tools used in the delivery of
many training services. The Department
seeks to provide maximum flexibility to
State and local program operators in
managing ITAs. These proposed
regulations do not establish the
procedures for making payments,
restrictions on the duration or amounts
of the ITA, or policies regarding
exceptions to the limits. The authority
to make those decisions resides with the
State or Local Boards. The authority that
States or Local Boards may use to
restrict the duration of ITAs or restrict
funding amounts must not be used to
establish limits that arbitrarily exclude
eligible providers.
Through the one-stop center,
individuals will be provided with
quality and performance information on
providers of training and, with effective
career services, case management, and
career planning with the ITA as the
payment mechanism. ITAs allow
participants the opportunity to choose
the training provider that best meets
their needs. Under WIOA, ITAs can
more easily support placing participants
into registered apprenticeship programs
than under WIA.
Section 680.300 How are training
services provided?
Proposed § 680.300 explains that in
most circumstances an individual will
receive training services through an
ITA. An ITA is established on behalf of
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the participant, where services are
purchased from eligible providers
selected in consultation with a career
planner. Payments may be made
through electronic transfers of funds,
vouchers, or other appropriate methods.
Payments may be made at the beginning
of the training program or on an
incremental basis; the payment
processes must be decided at the local
level. As explained in proposed
§ 680.300, an ITA is used by an
individual to access training services
from an entity on the State’s ETPL. In
some circumstances involving workbased training, such as OJT, customized
training, registered apprenticeship,
incumbent worker training and
transitional jobs, the Local Board may
contract out the training services. The
section allows for a Local Board itself to
provide the training services if it
receives a waiver from the Governor.
Local Boards must coordinate funding
for ITAs with funding from other
Federal, State, local, or private job
training programs or sources to assist
individuals in obtaining training
services.
Section 680.310 Can the duration and
amount of Individual Training Accounts
be limited?
Proposed § 680.310 maintains the
State and local flexibility to impose
limits on ITAs that exists under WIA.
Section 680.320 Under what
circumstances may mechanisms other
than Individual Training Accounts be
used to provide training services?
Proposed § 680.320(a) discusses the
exceptions to the otherwise required use
of an ITA for training. In situations
covered by these exceptions, a contract
for services may be used to provide for
training. The exceptions include:
1. OJT, which could include placing
participants in a registered
apprenticeship, customized training,
incumbent worker training, or
transitional jobs.
2. Where a Local Board determines
there are an insufficient number of
eligible providers in the local area to
accomplish the purpose of an ITA. The
local plan must describe how this
determination was made and the
process used for contracting for services.
This exception maintains the same
language as WIA.
3. If the Local Board determines a
CBO or other private organization
provides effective training services to
individuals with barriers to
employment. The Local Board must
develop criteria to show that the
program is effective.
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4. Training for multiple individuals in
in-demand industry sectors or
occupations, as long as the contract does
not limit the individual’s consumer
choice.
5. Circumstances in which a pay-forperformance contract is appropriate,
consistent with § 683.510.
Proposed § 680.320(b) includes the
term ‘‘individuals with barriers to
employment’’ in place of the term
‘‘special participant,’’ as used under
WIA. ‘‘Individuals with barriers to
employment’’ is broader than ‘‘special
participants.’’ ‘‘Individuals with barriers
to employment’’ includes: Displaced
homemakers (see § 680.630); lowincome individuals; Indians, Alaska
Natives, and Native Hawaiians;
individuals with disabilities; older
individuals; ex-offenders; homeless
individuals; youth who are in or have
aged out of the foster care system;
individuals who are English learners,
have low literacy levels, or face
substantial cultural barriers; eligible
MSFWs; individuals within 2 years of
exhausting lifetime eligibility under
TANF; single parents (including
pregnant women); long-term
unemployed individuals; and members
of other groups identified by the
Governor.
Section 680.330 How can Individual
Training Accounts, supportive services,
and needs-related payments be used to
support placing participating adults and
dislocated workers into a registered
apprenticeship program and support
participants once they are in a registered
apprenticeship program?
This regulation is designed to ensure
States and local areas have the
flexibility to serve individuals in both
being placed into a registered
apprenticeship as well as to assist
currently registered apprentices. WIOA
provides a new opportunity for
registered apprenticeship programs to
automatically qualify to be placed on
the State’s ETPL, allowing ITAs to
support participants in registered
apprenticeship programs, and more
directly connecting apprenticeship
programs to job seekers in one-stop
centers. Some apprenticeship programs
are with a single employer, whereas
others may operate through a joint
labor-management organization where
participants are selected for the
apprenticeship but not immediately
hired by a specific employer. The
Department is seeking comment on how
registered apprenticeship programs and
individuals enrolled or seeking to be
enrolled in such programs may be best
served within the one-stop delivery
system.
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Proposed § 680.330(a) states that
participants may use an ITA to receive
training at a pre-apprenticeship program
that is on the State’s ETPL. Preapprenticeship programs provide
training to increase math, literacy, and
other vocational skills needed to gain
entry to a registered apprenticeship
program. A pre-apprenticeship program
funded with an ITA must have at least
one registered apprenticeship partner;
such pre-apprenticeship programs must
possess or develop a strong record of
enrolling their pre-apprenticeship
graduates into a registered
apprenticeship program. The
Department is also open to comment on
how pre-apprenticeship programs and
individuals enrolled or seeking to be
enrolled in such programs may be best
served within the one-stop delivery
system.
Proposed § 680.330(b) explains that
the cost of tuition may be paid through
an ITA to the training provider involved
in a registered apprenticeship program.
In such instances, the training provider
may be an employer, a joint labormanagement entity, a labor
organization, or an outside training
provider.
Proposed § 680.330(c) states that
supportive services may be provided to
support the placement of a participant
into a registered apprenticeship
program, consistent with the rules
governing supportive services in subpart
H.
Proposed § 680.330(d) explains that
needs-related payments may be
provided to support the placement of a
participant into a registered
apprenticeship program, consistent with
the rules governing needs-related
payments in subpart H.
Proposed § 680.330(e) provides a
citation to the regulations on using OJT
funds with registered apprenticeships.
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Section 680.340 What are the
requirements for consumer choice?
Proposed § 680.340 largely restates
the consumer choice requirements
established under WIA. The term
‘‘career planner,’’ used in WIOA,
replaces the term ‘‘case manager,’’ used
in WIA. Proposed § 680.340(e) provides
that one-stop operators may coordinate
funding for ITAs with other funding
sources in order to assist the individual
in obtaining training services. Proposed
§ 680.340(f) requires that priority
consideration be given to programs that
are aligned with in-demand industry
sectors or occupations in the local area.
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5. Subpart D—Eligible Training
Providers
This part describes the methods by
which organizations qualify as eligible
providers of training services under
WIOA. It also describes the roles and
responsibilities of the State and Local
Boards in managing this process and
disseminating ETPLs. The State ETPL
and the related eligibility procedures
ensure the accountability, quality, and
labor-market relevance of programs of
training services that receive funds
through WIOA title I–B. The regulations
emphasize that the list and
accompanying information must be
easily understood and disseminated
widely, in order to maximize informed
consumer choice and serve all
significant population groups.
The State plays a leadership role in
ensuring the success of the eligible
provider system in partnership with
Local Boards, the one-stop system, and
its partners. The Governor must
establish eligibility criteria and
procedures for initial determination and
renewals of eligibility for training
providers and training programs to
receive funds under WIOA title I–B. In
doing so, the Governor may establish
minimum performance levels for
eligibility and the Department
encourages Governors to do so. In
establishing minimum performance
levels for eligibility, the Govenor should
take into consideration the need to serve
targeted populations. The Local Board
may establish additional performance
levels for program eligibility within a
local area.
The proposed regulations implement
WIOA sec. 122 and refer to WIOA secs.
107, 116, and 134 where those sections
affect provider eligibility, the ETPL, the
use of ITAs, and the inclusion of
registered apprenticeship programs on
the ETPL. In § 680.410, the regulations
clarify that all training providers,
including those operating under the ITA
exceptions, must qualify as eligible
providers, except for those engaged in
OJT and customized training (for which
the Governor must establish qualifying
procedures as discussed in § 680.530).
The proposed regulations also explain
how registered apprenticeship
programs, which WIOA treats
differently than other providers in some
respects, are to be included in the list.
Finally, the regulations describe how
the State ETPL must be disseminated
with accompanying performance and
cost information. The performance
information must be presented in a way
that is easily understood, in order to
maximize informed consumer choice
and serve all significant population
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groups. Separately, ETP performance
reports, which require providers to
supply performance information for all
individuals enrolled in a program are
addressed in § 677.230.
In response to concerns expressed by
stakeholders that some providers of
training would face difficulties in
participating in this WIOA-revised
system, the Department has clarified the
interrelated eligibility requirements and
explained that while WIOA places an
emphasis on quality training as
measured by performance criteria, State
and Local Boards and training providers
must work together in attaining this
goal. The proposed regulations
emphasize the Governor’s discretion in
offering financial or technical support to
training providers where the
information requirements of this section
result in undue cost or burden. Making
a wide variety of high-quality training
programs available to participants will
increase customer choice and that
training providers may find
performance information useful to
improve their programs of study, which
in turn will provide a direct benefit to
participants. The Department also
encourages the Governor to work with
ETPs to return aggregate performance
information to the provider in ways that
will help the training providers improve
their program performance. Given that
training providers may have many
programs of study within their
institution, the department is seeking
comment on ways that States can help
streamline performance reporting for
training providers and minimize the
burden associated with reporting on
multiple programs of study. The State
and Local Boards must work together to
ensure sufficient numbers and types of
training providers and programs in
order to maximize customer choice
while maintaining the quality and
integrity of training services. In
addition, the proposed regulations
explain that CBOs have the opportunity
to deliver training funded under WIOA
through contracts for services rather
than ITAs, provided the local area
determines this is necessary to meet
local customer needs and also that the
provider meets training performance
requirements. Because of WIOA’s
emphasis on ensuring the provision of
quality training, and the importance of
using performance criteria to obtain
such quality, the Department does not
intend to waive any of the requirements
of this section. The Department is
seeking comment on possible
adaptations of ETP eligibility and
reporting requirements to ensure small
CBOs, especially those serving hard to
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serve participant populations, have the
capacity to qualify as ETPs.
Section 680.400
of this subpart?
What is the purpose
The workforce development system
established under WIOA emphasizes
informed consumer choice, job-driven
training, provider performance, and
continuous improvement. The quality
and selection of providers and programs
of training services is vital to achieving
these core principles. As required by
WIOA sec. 122, proposed § 680.400
explains that States, in partnership with
Local Boards, must identify providers of
training services that are qualified to
receive WIOA funds to train adults and
dislocated workers. Therefore, WIOA
requires that each State must maintain
a list of ETPs. The list must be
accompanied by relevant performance
and cost information and must be made
widely available, including in electronic
formats, and presented in a way that is
easily understood, in order to maximize
informed consumer choice and serve all
significant population groups.
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Section 680.410 What entities are
eligible providers of training services?
Proposed § 680.410 defines the types
of entities that may be considered
eligible to provide training services and
the specific funds to be used for this
purpose. This proposed section explains
that training providers, including those
operating under the ITA exceptions,
must qualify as eligible providers,
except for those engaged in OJT and
customized training (for which the
Governor must establish qualifying
procedures as discussed in § 680.530).
The proposed regulations identify
registered apprenticeship programs as
included in the list as long as the
program remains registered. This is
further explained in proposed § 680.470.
Proposed paragraph (a) explains that
only providers that the State determines
to be eligible, as required in WIOA sec.
122, may receive training funds under
WIOA title I–B. This refers to funds
used to provide training for adult and
dislocated worker participants who
enroll in a program of training services.
Proposed paragraph (a) states that the
Governor will establish the criteria and
procedures for determining eligibility.
These criteria must take into account, at
a minimum the items in WIOA sec.
122(b)(1)(A). Under the requirements of
WIOA sec. 122, the procedures for
determining eligibility of providers are
established at the State level and
include application and renewal
procedures, eligibility criteria, and
information requirements.
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Proposed paragraphs (a)(1) through (4)
list the categories of potentially eligible
training entities. This list is largely
unchanged from WIA. Potentially
eligible entities include post-secondary
education institutions, registered
apprenticeship programs, other public
or private providers of training, Local
Boards that meet certain conditions, and
CBOs or private organizations providing
training under contract with the Local
Board.
Proposed paragraphs (b)(1) and (2)
specify that these eligibility
requirements apply to adult and
dislocated worker funds. The
requirements apply to both participants
who seek training using ITAs and those
who seek training through the
exceptions described in proposed
§§ 680.320 and 680.530. Under WIOA
sec. 134(c)(3)(G), limited exceptions
allow local areas to provide training
through a contract for services rather
than ITAs in order to maintain
consumer choice. These exceptions
include: OJT training, customized
training, incumbent worker training, or
transitional employment; instances
where the Local Board determines there
are insufficient numbers of eligible
providers of training services in the
local area; where the Local Board
determines an exception is necessary to
meet the needs of individuals with
barriers to employment (including
assisting individuals with disabilities or
adults in need of adult education and
literacy services); where the Local Board
determines that it would be most
appropriate to award a contract to an
institution of higher education or other
eligible provider to facilitate the training
of multiple individuals in in-demand
industry sectors or occupations (where
the contract does not limit customer
choice); and, for pay-for-performance
contracts.
Proposed paragraph (b)(2) explains
that the requirements to become an
eligible provider of training services
apply to all organizations providing
training to adults and dislocated
workers, with the specific exception for
registered apprenticeship programs.
WIOA makes a change from WIA in that
registered apprenticeship programs
must be included and maintained on the
list for as long as the program remains
registered. Registered apprenticeship
programs are not subject to the same
application and performance
information requirements as other ETPs.
However, because it is possible that
particular registered apprenticeship
programs may prefer not to be included
on the list, the proposed regulation
requires registered apprenticeship
programs to indicate their interest in
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being on the State list, according to a
mechanism established by the Governor.
The pertinent requirements for
registered apprenticeship programs are
explained in proposed § 680.470.
Section 680.420 What is a ‘‘program of
training services’’?
Proposed § 680.420 defines the term
‘‘program of training services,’’ which is
used throughout this part. The
Department explains that a program of
training services includes a structured
regimen that leads to specific outcomes.
Our definition reinforces a key principle
of WIOA to improve accountability and
performance. Proposed paragraphs (a)
through (c) align the outcomes for a
program of training services with the
performance requirements described in
WIOA sec. 116(b)(2)(A). These potential
outcomes include post-secondary
credentials, industry-recognized
credentials, employment, and
measurable skill gains toward
credentials or employment.
Section 680.430 Who is responsible for
managing the eligible provider process?
Proposed § 680.430 explains the roles
of the Governor and Local Boards in
administering the eligible provider
process. Throughout this subpart, the
Department emphasizes the Governor’s
discretion, in consultation with
stakeholders, to establish eligibility
procedures. The eligible provider
process under WIOA sec. 122 requires
the Governor to establish eligibility
procedures and to clarify State and
Local Board roles and responsibilities.
In various sections, WIOA assigns
responsibilities to Local Boards
concerning ETPs and identifies
additional optional activities that may
be undertaken by Local Boards. For the
convenience of stakeholders and the
public, the Department has listed in
proposed § 680.430 these required and
potential activities.
Proposed paragraph (a) explains the
Governor’s responsibilities for managing
the process for determining eligibility,
developing and maintaining the State’s
list of ETPs, and disseminating the list
to Local Boards, as required by WIOA
sec. 122. In keeping with WIOA secs.
122(a)(1) and (c)(1), proposed paragraph
(a) further requires that Governors
consult with the State Board when
establishing these procedures. Proposed
paragraph (b) authorizes the Governor to
designate a State agency to carry out the
requirements of this section. While
WIOA sec. 122 does not address this
point, the Department anticipates that
most States will work through a
designated State agency (or appropriate
State entity) to administer the
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requirements of this section. The
Department proposes paragraph (b) to
make this option explicit.
Proposed paragraphs (b)(1) through
(5) describe the State’s responsibilities
for developing and maintaining the
State list of providers. The State may
establish minimum performance levels.
The State is responsible for determining
if such performance targets are met. It is
also the State’s responsibility to
determine whether accurate information
has been submitted, take enforcement
actions as needed, and disseminate the
list to the Local Boards, the one-stop
system, its partner programs, and the
public. This includes dissemination
through Web sites and searchable
databases and any other means the State
uses to disseminate information to
consumers. Under WIA, similar
responsibilities were primarily assigned
to the Local Workforce Boards. In
establishing greater accountability and
flexibility at the State level, WIOA sec.
122 specifically requires the State to
manage the ETP process. Proposed
paragraph (b) describes these
responsibilities and notes the
Governor’s primary role in exercising
these responsibilities, including the
assignment of duties to be undertaken
by Local Boards.
Paragraph (c) identifies the required
responsibilities of Local Boards, which
are found in WIOA secs. 107 and 134.
These include responsibilities assigned
to Local Boards statutorily as well as
responsibilities that may be assigned by
the Governor. Proposed paragraph (c)(1)
makes clear that the Local Board must
carry out procedures assigned to it by
the State, as provided for under WIOA
sec.122(c)(1). The Department provides
examples of the responsibilities that the
Governor may choose to assign to Local
Boards, including duties similar to those
undertaken by Local Boards under WIA.
Proposed paragraph (c)(2) explains
the Local Boards’ responsibility to work
with the State to ensure that there are
sufficient number and variety of
programs to provide participants, as
consumers, adequate choice among
providers, as described in WIOA sec.
107. Local Boards are charged with
working with the State to ensure that
there are sufficient numbers and types
of providers to meet the skill
development needs of adults and
dislocated workers, including those who
are disabled and/or require adult
literacy assistance. This proposed
paragraph emphasizes that Local Boards
and the State must work together to
ensure adequate consumer choice.
Proposed paragraph (c)(3) explains, as
required by WIOA sec. 134(a)(2)(B), that
Local Boards must also ensure that the
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State’ eligible training provider list is
disseminated publicly through the local
one-stop system, and its partner
programs. The list is a tool to assist onestop customers in evaluating training
programs and provider options. The
dissemination of the list is also
discussed under proposed § 680.500.
Proposed paragraph (d) explains the
roles that a Local Board may choose to
exercise in the eligible provider process.
The Governor’s procedure may not
prevent Local Boards from exercising
these options.
Proposed paragraph (d)(1) emphasizes
the potential for Local Board input into
the Governor’s development of the
eligible provider procedure. WIOA sec.
122(e) requires the Governor to provide
an opportunity for interested members
of the public to make recommendations
and submit comments regarding the
eligibility procedure. Although not
explicitly addressed in the WIOA sec.
122, the Department interprets its
language to encompass Local Boards
and thus have included this
requirement in the proposed paragraph.
Proposed paragraphs (d)(2) and (3)
include the provisions at WIOA sec.
122(b)(3), which allow Local Boards to
set additional eligibility criteria,
information requirements, and
minimum performance levels for local
providers beyond what is required by
the Governor’s procedure. Stakeholders
and the public must note that any
additional requirements imposed by a
Local Board will only affect a program’s
eligibility and performance
requirements within the local area.
Section 680.440 What are the
transition procedures for Workforce
Investment Act-eligible providers to
become eligible under the Workforce
Innovation and Opportunity Act?
Proposed § 680.440 explains the
procedure established by WIOA sec.
122(c) for training providers that were
eligible as of the date WIOA was
enacted, July 21, 2014, to continue their
eligibility under WIOA. The Department
anticipates the majority of providers
previously eligible under WIA will be
affected by this transition.
Proposed paragraph (a) explains that
the Governor may establish a transition
period and states that providers that
were eligible on July 21, 2014 will
remain eligible under WIOA until
December 31, 2015, or such earlier date
as the Governor may set. Proposed
paragraph (b) explains that in order to
retain eligibility after the transition
period, these providers will be subject
to the application procedure established
by the Governor for providers that have
previously been found eligible, as
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further explained in proposed § 680.460.
Proposed paragraph (c) explains that
providers that have previously been
found eligible are not subject to the
initial eligibility procedures, as
described in proposed § 680.450. As
discussed in § 680.450, the initial
eligibility procedures apply only to
providers that were not previously
eligible under WIA or WIOA.
Section 680.450 What is the initial
eligibility procedure for new providers?
Proposed § 680.450 describes the
process for adding ‘‘new’’’ providers to
the ETPL (i.e., those that have not
previously been found eligible under
sec. 122 of either WIA or WIOA). Such
providers must first apply for initial
eligibility according to procedures set
by the Governor. In accordance with
WIOA sec. 122(b)(4), this proposed
section describes the factors the
Governor must take into consideration
in developing this procedure and take
into account in setting criteria for initial
eligibility. Eligibility is determined on a
program-by-program basis for each
provider. Proposed § 680.450
distinguishes between registered
apprenticeship programs seeking
inclusion on the list and other
providers. Registered apprenticeship
programs, consistent with WIOA sec.
122(a)(3), are not subject to the initial
eligibility application procedure.
However, registered apprenticeship
programs are required to indicate their
interest to be included in the ETPL,
according to a mechanism established
by the Governor, as discussed in
§ 680.470.
Proposed paragraph (a) explains that
the Governor’s procedure must require
that providers of training seeking initial
eligibility submit required information
in order to receive initial eligibility.
Proposed paragraph (b) explains the
exception for providers who are
carrying out registered apprenticeship
programs under the National
Apprenticeship Act. Such programs are
included and maintained on the list of
eligible providers of training for as long
as the program remains registered.
Therefore, registered apprenticeship
programs are not subject to a period of
initial eligibility or to initial-eligibility
procedures. Rather, the Department
proposes paragraph (b) to require the
Governor to establish a procedure
whereby registered apprenticeship
programs may indicate their interest to
be included and maintained on the list.
This requirement is further discussed in
§ 680.470.
Proposed paragraph (c) explains the
requirement that the Governor must
consult with Local Boards and solicit
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public comment in determining the
initial eligibility procedure. While the
Governor is responsible for developing
the initial eligibility procedure, input by
the Local Board and public comment
remain important for shaping a public
workforce system that is responsive to
local needs. The Local Board is
responsible for working with the State
to ensure that there are sufficient
numbers and types of providers of
career and training services, as required
by WIOA sec. 107(d)(10)(E) and
described in proposed § 679.370(m).
Therefore, the Department is requiring
that the Governor consult with Local
Boards about the initial eligibility
procedure in order to maximize
consumer choice at the local level. This
is also in keeping with WIOA sec. 122(e)
on the requirements for public
comment. In addition, although WIOA
does not address this point, the
Department proposes requiring the
Governor to describe the procedure,
eligibility criteria, and information
requirements for initial eligibility in the
State Plan. Although States will need a
separate mechanism for public comment
during the first year of implementation,
in subsequent years the State Plan
process will afford the opportunity to
solicit comments and recommendations
from key stakeholders. In addition, the
State Plan submission and review
process allows the Department to ensure
compliance with statutory and
regulatory requirements and identify
promising practices and technical
assistance needs.
Proposed paragraph (d) explains that
the Governor must establish criteria and
State requirements for non-exempt
providers seeking initial eligibility.
These initial requirements apply to
providers that were not previously
eligible under this section (or sec. 122
of WIA, as in effect on the day before
the enactment of WIOA).
Proposed paragraph (e) describes the
factors that the Governor must take into
account in establishing the criteria for
determining initial eligibility. For those
institutions that are not exempt from
complying with the ETP application
process, the State must establish
consistent and uniform criteria for
providers seeking initial eligibility. The
information that must be submitted to
the State for review will be defined by
the Governor, but must, at a minimum,
address factors related to program
elements included in both WIOA secs.
122(b)(4)(D) and 116(b)(2)(A)(i)(I)–(IV).
The Department has listed these
required elements in proposed
paragraphs (e)(2) through (5). The
elements taken from WIOA sec. 122
include information addressing factors
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related to program performance
indicators, any partnership a program
has with a business, attributes
indicating high quality training services
and credentialing, and the alignment of
the program’s services with in-demand
industry sectors. WIOA requires that
providers provide ‘‘verifiable programspecific performance information.’’ The
Department is interested in comments
about the types of verifiable program
specific-information this would include.
The Department is particularly
interested in the methods of providing
verifiable information that are the least
costly to the training provider and the
easiest to verify to reduce the cost to the
State or local area. The Department has
added a requirement that the applicant
provide a description of the program.
The Department thinks this information
is not burdensome and is essential to
enable customers to understand whether
the program meets their training needs.
Proposed paragraph (f) describes the
Governor’s discretion to establish
minimum performance standards. As
with the application procedures
described in § 680.460, the Governor
may establish minimum performance
levels in the initial eligibility
procedures, and the Department
encourages them to do so.
Proposed § 680.450(g) emphasizes the
time limit for initial eligibility, which is
1 fiscal year for a particular program,
per WIOA sec. 122(b)(4)(B).
Proposed paragraph (h) clarifies that
after the period of initial eligibility,
these training providers are subject to
the Governor’s application procedure,
described at proposed § 680.460 in order
to remain eligible.
Section 680.460 What is the
application procedure for continued
eligibility?
Proposed § 680.460 explains the
detailed application process for
previously WIA-eligible providers to
remain eligible under WIOA. Eligibility
is determined on a program-by-program
basis for each provider.
Proposed paragraphs (a)(1) and (2) list
the two groups of providers that are
subject to the requirements of proposed
§ 680.460. These include new training
providers that were previously eligible
under WIA (following the Governor’s
transition period, which ends December
31, 2015 or such earlier date established
by the Governor) as well as new training
providers whose initial eligibility
expires after 1 fiscal year.
Proposed paragraphs (b)(1) and (2)
explain that the Governor is required to
gather and consider input from Local
Boards, providers, and the public,
including representatives of business
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and labor organizations. The Local
Board is responsible for working with
the State to ensure that there are
sufficient numbers and types of
providers of career and training
services, as required by WIOA sec.
107(d)(10)(E) and described in proposed
§ 679.370(m). Therefore, the Department
is requiring that the Governor consult
with Local Boards regarding training
provider eligibility procedures in order
to maximize consumer choice among
quality training providers at the local
level. This is also in keeping with WIOA
sec. 122(e) regarding the requirements
for public comment. While WIOA does
not specify a timeframe within which
the consultation and determination
must be completed, proposed paragraph
(b)(3) requires the Governor to establish
a timeframe for that purpose while
leaving the amount of time to the
Governor’s discretion. The same
requirements for Local Board
consultation and a public comment
period are described above in
connection with proposed § 680.450(c)
for the Governor’s development of
initial eligibility procedures.
Proposed paragraph (c) clarifies that
registered apprenticeship programs are
exempted from these application
procedures. Under WIOA sec. 122(a)(3),
registered apprenticeship programs
must be included and maintained on the
State list for as long as the program
remains registered. While registered
apprenticeships are considered eligible,
not all registered apprenticeship
sponsors may wish to be included. As
described in § 680.470, the Department
proposes that the Governor’s procedure
must include a means for registered
apprenticeship program to indicate
interest in being included on the list.
Proposed paragraph (d) explains that
the Governor’s procedure must describe
the roles of the State and local areas in
the application and eligibility process.
WIOA gives the Governor discretion to
assign some of the responsibility for
receiving, reviewing, and making
eligibility determinations to local areas.
WIOA emphasizes the Governor’s
discretion in establishing eligibility
procedures.
Proposed paragraph (e) requires the
Governor’s procedure to be described in
the State Plan. Although WIOA does not
address this point, the Department
proposes requiring the Governor to
describe the procedure, eligibility
criteria, and information requirements
for initial eligibility in the State Plan.
Although States will need a separate
mechanism for public comment during
the first year of implementation, in
subsequent years the State Plan process
will afford the opportunity to solicit
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comments and recommendations from
key stakeholders. In addition, the State
Plan submission and review process
allows the Department to ensure
compliance with statutory and
regulatory requirements and identify
promising practices and technical
assistance needs.
Proposed paragraph (f) explains the
factors that the Governor must take into
account in developing the eligibility
criteria. These include nine required
factors and any additional factors that
Governor considers appropriate. The
proposed language closely tracks the
language from WIOA sec. 122(b),
providing a comprehensive description
of the requirements for the application
process. WIOA sec. 122(b) includes
multiple cross-references to WIOA sec.
116 which identifies required
performance accountability measures.
Proposed paragraph (f)(1) generally
describes the kinds of performance
information which training providers
must submit as part of their application,
which pertain to participants receiving
training under WIOA title I–B. The
Department recommends the Governor’s
procedure emphasize these performance
indicators as a way of establishing
minimum standards and a means for
comparison among training providers
offering similar training in similar areas.
The Department recommends States use
these measures to ensure performance
accountability, continuous
improvement, training provider quality,
and informed consumer choice. The
Department anticipates that complete
performance data as required under
(f)(1) may not be available until PY
2018, given the lag time inherent in the
performance indicators. Proposed
pargraph (f)(1) allows the Govenor to
take into account alternate factors for
any performance information that is not
yet available until such performance
data are available. The Department
seeks comment on alternate factors
related to performance that may be used
to establish eligibility during this time.
Proposed paragraphs (f)(2) through
(10) list the other factors that the
Governor’s criteria must take into
account. These include the need to
ensure access to training services in
rural areas, information regarding
Federal and State training programs
other than within WIOA title I–B,
alignment with in-demand industry
sectors, State licensure requirements,
encouraging industry-recognized
credentials, provision of post-secondary
credentials, the quality of program and
training services, and meeting the needs
of individuals with barriers to
employment.
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Proposed paragraph (f)(10) requires
the Governor’s criteria to take into
account whether the providers timely
and accurately submitted eligible
training provider performance reports,
as required under WIOA sec. 116(d)(4).
This requirement is consistent with the
requirement under WIOA sec.
122(b)(1)(A)(ii) that the criteria to be
taken into account include the outcomes
of the training programs for students in
general with respect to employment and
earnings under the indicators of
performance described in WIOA sec.
116(d)(2). The ETP reports provide
information on these employment and
earnings outcomes for all individuals in
a program of study, and the failure to
submit such reports on a timely and
accurate basis would undermine the
ability of the Governor to take such
outcomes into account. The Department
seeks comment on how best to apply the
timely and accurate submission of these
ETP performance reports as a factor for
eligibility.
Proposed paragraph (f)(11) explains
the Governor’s discretion to take into
account other factors. This paragraph
echoes the key principles of the ETPL
and WIOA to ensure performance
accountability, to meet the needs of
local employers and participants, and to
ensure informed customer choice.
Proposed paragraph (g) lists the
information that training providers are
required to provide as part of their
application. As discussed in paragraph
(k), the Governor has broad discretion to
prescribe additional types of
information.
Proposed paragraph (h) establishes
two additional requirements concerning
performance, cost, and information
collection. Proposed paragraph (h)(1)
states that eligible providers must
submit performance and cost
information required by paragraph (g)
and the Governor’s procedure to the
State (WIOA secs. 122(b)(1) and (2)). In
accordance with the State accountability
and flexibility intended by WIOA, the
timeframe and manner for submitting
this information is to be determined by
the State but at least every 2 years.
Proposed paragraph (h)(2) states that the
collection of information required to
demonstrate compliance with the
criteria cannot be unduly burdensome
or costly to providers, citing to WIOA
sec. 122(b)(1)(J)(iv).
Proposed paragraph (i) explains that
the Governor’s eligibility procedure
must provide for the State to biennially
review training provider eligibility
information and assess the renewal of
training provider eligibility, per WIOA
sec. 122(c)(2). In keeping with WIOA’s
emphasis on providing discretion to the
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Governor, the Department has not
prescribed in paragraph (i) the timeline
and manner in which this biennial
review takes place. These particulars are
to be established by State procedure.
The Governor or State agency is not
required to establish minimum levels of
performance, although the Department
encourages them to do so. If minimum
levels are established, the Governor’s
procedure must state these requirements
and the State may require eligible
providers to meet them in order to
remain eligible.
Proposed paragraph (j) requires the
Governor’s procedure to verify the
status of registered apprenticeship
programs as a part of the biennial
review of the State list. Although
registered apprenticeship programs are
not subject to the same review
procedures as other providers, the State
must verify the status of the registered
apprenticeship programs in order to
remove from the list any apprenticeship
programs that are no longer registered.
Proposed paragraph (k) establishes
that, as was the case under WIA, Local
Boards may set additional criteria for
eligibility to provide services in a local
area. WIOA includes this provision at
sec. 122(b)(3).
Proposed paragraph (l) explains that
the Governor may establish procedures
for providing technical assistance in
order to assist eligible providers in
meeting these requirements. This is in
addition to financial assistance the
Governor may provide, as described in
proposed § 680.490.
Section 680.470 What is the procedure
for registered apprenticeship programs
that seek to be included on the State’s
eligible training provider list?
WIOA encourages registered
apprenticeship programs to be active
partners in the public workforce system.
These programs are proven job-driven
strategies that provide workers with
career pathways and opportunities to
earn while they learn. Under WIOA sec.
122(a)(3), a registered apprenticeship
program is included on the list of ETPs
so long as the program remains
registered. This allows a participant
enrolled in a registered apprenticeship
who is eligible to use WIOA title I–B
funds to use those funds toward
apprentice training, consistent with
their availability and limitations as
prescribed by proposed § 680.300. The
use of ITAs and other WIOA title I–B
funds toward apprenticeship training is
further described in proposed § 680.330.
Registered apprenticeship programs
differ from other training providers in
some respects, notably that a
participant’s enrollment occurs only
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through an agreement among the
participant, the registered
apprenticeship program sponsor, and an
employer.
Proposed § 680.470 explains how
registered apprenticeship programs are
included and maintained on the ETPL.
Registered apprenticeship programs are
not subject to the application
procedures and information
requirements of other training providers
to be included on the ETPL, in light of
the detailed application and vetting
procedures under which apprenticeship
programs become registered.
Proposed paragraph (a) requires
registered apprenticeship programs to
indicate interest in being on the State
list of ETPs. While registered
apprenticeship programs are
automatically eligible, not all registered
apprenticeship sponsors may wish to be
included on the list. The Department
proposes that the Governor’s procedure
include a mechanism for registered
apprenticeship programs to indicate
their interest.
Proposed paragraph (b) explains that
a registered apprenticeship program will
remain on the list until it loses its
registration or notifies the State that it
no longer wishes to be included on the
list.
Proposed paragraph (c) explains that
when a registered apprenticeship
program is included on the State ETPL,
this allows an individual who eligible to
use WIOA title I–B funds to use those
funds toward apprentice training,
consistent with their availability and
limitations as prescribed by proposed
§ 680.300.
Proposed paragraph (d) addresses
performance reporting requirements for
apprenticeship programs. Registered
apprenticeship programs are not subject
to the same information reporting
requirements as other training programs.
However, in light of WIOA’s emphasis
on performance accountability and
informed customer choice, the
Department encourages Governors to
consult with the State and Local Boards,
the Department’s Office of
Apprenticeship, recognized State
apprenticeship agencies (where they
exist in the Governor’s State), or other
State agencies, to establish voluntary
reporting of performance information.
Section 680.480 May an eligible
training provider lose its eligibility?
Proposed § 680.480 describes
enforcement provisions that are largely
unchanged from WIA. The Governor has
the ability to remove training providers
or programs of training services from the
State list according to the Governor’s
eligibility and review procedures. Under
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WIOA sec. 122(f), States must remove
from the eligibility list any providers
that willfully supply false performance
information or that substantially violate
requirements of WIOA. Under WIOA, a
provider may also be removed from the
list following the Governor’s biennial
review of the provider’s program. These
provisions support key principles of
WIOA by reinforcing performance
accountability and ensuring the high
quality of training programs made
available.
Proposed paragraph (a) affirms that a
provider must deliver positive results
and provide accurate information in
order to maintain eligibility.
Proposed paragraph (b) explains that
if a provider intentionally provides
inaccurate information or substantially
violates any provision of WIOA or its
regulations the provider must be
removed from the State list for a period
of not less than 2 years and is liable to
repay all adult and dislocated worker
funds it received during the period of
non-compliance. The Governor must
specify in the procedures which
individual or entity is responsible for
making these determinations and the
process by which the determination will
be made, which must include an
opportunity for a hearing.
Proposed paragraph (c) allows the
Governor to remove a program or
programs from the list for failing to meet
State-established criteria or performance
levels. The Department seeks comment
on how to strengthen enforcement with
non-compliant providers over time.
Proposed paragraph (d) explains that
the Governor must establish an appeal
procedure for providers to appeal a
denial of eligibility under this section.
An appeals process is required by WIOA
sec. 122 (c)(1). Proposed § 683.630(b)
explains the appeal process for the
denial or termination of a training
provider’s eligibility.
Proposed paragraph (e) provides that
a local area may remove a program or
programs from the list for failing to meet
higher local standards. The local area
must also provide the program with an
appeal process.
Section 680.490 What kind of
performance and cost information must
eligible training providers provide for
each program of training?
Proposed § 680.490 describes the
performance information that providers
are required to submit to the State in
order to establish or renew eligibility, as
described in WIOA sec. 122(b)(2).
Proposed paragraph (a) requires ETPs
to submit performance information at
least every 2 years, according to
procedures established by the Governor.
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While the Governor may require
reporting at more frequent intervals, the
Department interprets WIOA sec. 122 to
require that provider performance
information for eligibility purposes
must be submitted to the State at least
biennially.
Proposed paragraphs (b)(1) through
(4) list the program-specific
performance information, described in
WIOA sec. 122, that must be submitted
by training providers. Proposed
paragraph (b)(1) includes a crossreference to the performance elements
described at WIOA secs.
116(b)(2)(A)(i)(I)–(IV). These elements
are further discussed in proposed
§ 680.460(g)(i) through (iv). Proposed
paragraphs (b)(2) through (4) list
additional information that must be
supplied by providers; this includes
information on post-secondary
credentials offered, program costs, and
the completion rate for WIOA
participants in the program.
Proposed paragraph (c) explains that
the Governor may require any
additional performance information that
he or she considers appropriate for
determining or renewing eligibility.
Separate reporting requirements for the
State’s ETP performance reports under
WIOA sec. 116(d)(4) are addressed in
§ 677.230.
Proposed paragraph (d) emphasizes
the collaborative relationship between a
State and its training providers and
explains that the Governor must assist
providers in supplying the information
required of them under WIOA and the
proposed regulations. Proposed
paragraph (d)(1) states the statutory
requirement, at WIOA sec.
122(b)(1)(J)(iv), that the Governor must
provide access to cost-effective methods
for the collection of information.
Proposed paragraphs (d)(2) and (3)
explain that the Governor may provide
technical and other assistance to
providers in helping them to meet the
performance requirements and that
funds reserved for statewide activities
under WIOA sec. 134 (a)(2)(B) may be
used for this purpose. While WIOA
emphasizes performance accountability,
it is also important to assist ETPs in
maintaining their eligibility, especially
as training providers adjust to the more
demanding reporting requirements of
WIOA.
Section 680.500 How is the State list
of eligible training providers
disseminated?
The public’s ability to access and
easily understand the State ETPL and its
accompanying information are
cornerstones of informed customer
choice and transparency. In keeping
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with WIOA’s intent for program
alignment and service integration, the
Department proposes strengthening the
distribution of the list to emphasize
dissemination to the public through
one- stop partner programs in addition
to the one-stop system. The ETP
performance reports at WIOA sec.
116(d)(4) are addressed separately in
§ 677.230, which requires the
coordinated dissemination of the
performance reports with the ETPL and
the information required to accompany
the list.
Proposed § 680.500 explains the
requirements for distributing the list
and accompanying information about
the programs and providers on the list.
These requirements recognize the
central importance of the list as the
means to provide participants, as
consumers of employment and training
activities, effective choices among
programs and providers of these
services. As discussed previously,
informed consumer choice is a key
principle under WIOA.
Proposed paragraph (a) requires the
State to disseminate the list with
accompanying performance and cost
information to Local Boards in the State
and to members of the public online
including Web sites and searchable
databases, through whatever means the
State uses to disseminate information to
consumers, including the one-stop
delivery system and its program
partners. Local Boards must disseminate
the list through the one-stop system as
well, as described in proposed
§ 680.430(c)(3). Proposed paragraph (b)
requires the list to be updated regularly,
while provider eligibility is reviewed
biennially. The Department is making a
distinction between the eligibility of
individual providers and updates to the
actual list because the Department
anticipates the list may be updated on
an on-going basis, even though the
review of a particular provider’s
eligibility status may occur biennially.
Proposed paragraph (c) requires the
State list and accompanying information
to be easily available to all one-stop
customers through the one-stop system
and its partner programs. The State list
is a key piece of the State one-stop
system. As such, it must be made
available to individuals seeking
information on training programs as
well as participants receiving career
services funded under WIOA and other
programs. Proposed paragraph (c)
further explains that the list must be
available to individuals who are eligible
for training under WIOA as well as to
individuals whose training is supported
by other one-stop partners.
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Proposed paragraph (d) describes the
information that must accompany the
list to help participants in making
informed choices regarding training
programs and providers. Proposed
paragraphs (d)(1) through (4) describe
the information that must accompany
the list, including recognized postsecondary credentials offered, other
information as may be required by the
Governor’s eligibility criteria, and
performance and cost information. The
information available for programs in
the initial eligibility stage will be
different from, and less extensive than,
the information available from programs
in the continuing eligibility stage.
Proposed paragraph (d)(3) includes
the requirement that the State must
disseminate the provider list with
‘‘other appropriate information.’’ The
Department interprets this language to
include the performance and cost
information described at § 680.490.
Proposed paragraph (d)(4) states that
the Governor may include any
additional information to accompany
the list as he or she considers
appropriate. The Department
encourages States to include any
information that, consistent with
WIOA’s goal of promoting consumer
choice, will assist participants in
choosing training activities and
providers.
Proposed paragraph (e) requires, as
described in WIOA sec. 122(d)(3), that
the accompanying information must not
reveal personally identifiable
information about an individual
participant. In addition, disclosure of
personally identifiable information from
an education record must be carried out
in accordance with the FERPA,
including the circumstances relating to
prior written consent.
The Department is interested in
comments on specific ways to structure
the accompanying information so that it
provides a complete and easily
understandable picture of provider
performance but is not so detailed or
complex that it discourages users from
consulting it or limits its utility to the
lay person. Should, for example, there
be a summary sheet that is easy and
quick to read and, if so, what
information must be on the summary
sheet?
Section 680.510 In what ways can a
Local Board supplement the information
available from the State list?
Proposed § 680.510 explains that
Local Boards may choose to supplement
the criteria and information
requirements established by the
Governor’s procedure in order to
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facilitate informed consumer choice in a
local area.
Proposed paragraph (a) states that a
Local Board may require that providers
of training services furnish additional
criteria and information as allowed
under WIOA sec. 122(b)(3). These
requirements impact the provision of
services in the local area involved.
Proposed paragraphs (b)(1) through
(4) explain the type of additional
information that the Local Board may
require providers to supply in their
application to become eligible. These
provisions are largely unchanged from
the WIA regulations. The Local Board
may request that the provider of training
services explain how the training
program specifically links to
occupations that are in demand within
the local area. The Local Board may also
request specific program performance
and cost information particular to a
local area where programs are offered at
multiple sites. The Department further
explains that Local Boards may request
information from training providers that
indicates how programs are responsive
to these local requirements, as provided
for in WIOA sec. 122(b)(3).
Section 680.520 May individuals
choose training providers located
outside of the local area?
Proposed § 680.520 explains that an
individual may choose a training
provider located outside the local area,
and, in some instances, in other States.
States may enter into reciprocity
agreements with other States under
which providers of training services are
allowed to accept ITAs provided by
another State. Providers of training
services that are located outside the
local area may not be subject to State
eligibility procedures if the provider has
been determined eligible by another
State with such an agreement. The
option to enter into reciprocity
agreements diminishes the burden on
States and providers of training services
to be subject to duplicative procedures
and is allowable under WIOA sec.
122(g). This provision also expands the
array of training options available for
individuals seeking training.
Section 680.530 What requirements
apply to providers of on-the-job
training, customized training,
incumbent worker training, and other
training exceptions?
In proposed § 680.530, the
Department explains that providers of
OJT, customized training, incumbent
worker training, internships, paid or
unpaid work experience, or transitional
employment are not subject to the
eligibility requirements under WIOA
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secs. 122(a)–(f), but are required to
provide performance information
established by the Governor. The
Department further explains that the
local one-stop operator is required to
collect and disseminate information that
identifies these providers as meeting the
Governor’s performance criteria.
Although these providers are not
included on the State ETPL they are
considered to be eligible providers of
training services.
6. Subpart E—Priority and Special
Populations
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Introduction
The services provided with adult
funds can be a pathway to the middle
class for low-income adults, public
assistance recipients, and individuals
who are basic skills deficient. The
proposed regulations implement the
statutorily-required priority for the use
of adult funds. This subpart contains
proposed regulations about how
participants from certain populations
are able to access adult and dislocated
worker services and establish priority
access to these services. WIOA sec.
134(c)(3)(E) provides that priority must
be given to recipients of public
assistance, other low-income
individuals, and individuals who are
basic skills deficient. Under WIA, this
priority applies only when adult funds
are limited. Under WIOA, however,
priority access to services by members
of this group applies automatically.
Nonetheless, WIOA allows one-stop
operators to provide individualized
career services to individuals who are
not members of these groups, if
determined appropriate by the one-stop
operator.
The Department strongly encourages
close cooperation between WIOAfunded programs and other Federal and
State sources of assistance for job
seekers. Coordination between WIOAfunded programs and the TANF
program is a crucial element in serving
individuals who are on public
assistance. TANF is a required partner
in the one-stop delivery system.
Through close cooperation, each
program’s participants will have access
to a much broader range of services to
promote employment retention and selfsufficiency than if they relied only on
the services available under a single
program.
In this subpart, the Department
explains how displaced homemakers
may be served with both adult and
dislocated worker funds. Under WIOA,
a displaced homemaker qualifies as an
‘‘individual with a barrier to
employment’’ (see proposed
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§ 680.320(b) and its discussion above).
WIOA provides a focus on serving
‘‘individuals with a barrier to
employment’’ to ensure they have
opportunities to enter meaningful
employment; this term is defined in
WIOA sec. 3(24). Additionally,
displaced homemakers meet the
definition of a ‘‘dislocated worker,’’ as
defined in WIOA sec. 3(15)(D). The
proposed regulations implement
WIOA’s requirements and effectuate its
purpose to aid displaced homemakers,
whose work, albeit without a formal
connection to the workforce, is
recognized for its value, but who may
need WIOA services to develop further
work skills. WIOA also expands the
definition of displaced homemakers to
include dependent spouses of the
Armed Forces on active duty to ensure
they have access to WIOA title I
services.
This subpart ensures that veterans
and certain service members have
access to adult and dislocated worker
programs. Under WIOA, as was the case
under WIA, veterans receive priority of
service in all Department-funded
employment and training programs. The
proposed regulations describe what is
meant by ‘‘priority of service.’’ The
Department has proposed a regulation
consistent with guidance it issued in
Training and Employment Guidance
Letter (TEGL) 22–04 that separating
service members meet the eligibility
requirements for dislocated worker
activities. This proposed regulation will
ensure that service members will have
access to the full array of services
available through the one-stop delivery
system.
deficient in the local area under the
WIOA adult program. For adults, the
term ‘‘basic skills deficient’’ is defined
in WIOA sec. 3(5)(B) and applies when
an individual is unable to compute or
solve problems, or read, write, or speak
English, at a level necessary to function
on the job, in the individual’s family, or
in society. Priority must be given
regardless of funding levels.
Proposed § 680.600(b) requires States
and local areas to establish criteria for
providing priority to individualized
career services and training services
with WIOA adult funds under title I.
The criteria may include other resources
and funds for providing career and
training-related services in the local
area, as well as the needs of specific
groups in the local area, as well as other
factors the local areas determines
appropriate.
Proposed § 680.600(c) clarifies that
while priority must be given under
WIOA adult funds to low-income
individuals, public assistance
recipients, or individuals who are basic
skills deficient for individualized career
services and training services, the Local
Board and Governor may establish a
process that also gives priority to other
individuals.
Section 680.600 What priority must be
given to low-income adults and public
assistance recipients and individuals
who are basic skills deficient served
with adult funds under title I?
Proposed § 680.600 provides priority
access to career services and training
services funded under WIOA sec.
134(c)(2)(A)(xii) and adult title I. In
§ 678.430(b), the Department proposes
to categorize these services as
individualized career services. WIOA
builds on the priority given under WIA
to providing training services to lowincome individuals and individuals
receiving public assistance. Under
WIOA, the priority also extends to
individuals who are basic skills
deficient.
Proposed § 680.600(a) explains that
individualized career services and
training services must be given on a
priority basis to low-income adults,
public assistance recipients, and
individuals who are basic skills
Section 680.620 How does the
Temporary Assistance for Needy
Families program relate to the one-stop
delivery system?
Proposed § 680.620 explains how the
TANF program relates to the one-stop
delivery system. Cooperation among
required partner programs is vital to
build pathways to the middle class for
individuals on public assistance and
low-income individuals. Partners,
working together, can ensure the best
mix of services for each individual
seeking to enhance their lives and
employment.
Under WIOA, TANF is a required
partner in the one-stop system, unless
the Governor opts out. TANF provides
assistance to needy families and by
coordinating closely with WIOA local
areas can ensure programs and services
include the needs of individuals on
public assistance. This section
encourages cooperation among the
WIOA and TANF programs to maximize
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Section 680.610 Does the statutory
priority for use of adult funds also apply
to dislocated worker funds?
Proposed § 680.610 clarifies that the
statutory priority for low-income
individuals, public assistance
recipients, and individuals who are
basic skills deficient only applies to the
WIOA adult program and not the WIOA
dislocated worker program.
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services available to participants eligible
under both programs.
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Section 680.630 How does a displaced
homemaker qualify for services under
title I?
Proposed § 680.630 explains
displaced homemakers’ eligibility for
dislocated worker activities. A
displaced homemaker can qualify for
either adult or dislocated worker funds.
First, if an individual meets the
definition of a displaced homemaker
under WIOA sec. 3(16), the individual
is eligible for dislocated worker career
and training services. Second, the
displaced homemaker may be served
with title I adult funds if the individual
meets the eligibility requirements for
this program; generally priority in the
adult program is given to low-income
individuals, individuals on public
assistance, or if they lack basic work
skills. A State may also use reserve
funds that target displaced homemakers
in which they would be eligible.
Under WIOA, the definition of a
displaced homemaker is expanded to
explicitly include dependent spouses of
a member of the Armed Forces on active
duty (as defined in sec. 101(d)(1) of title
10, United States Code) and whose
family income is significantly reduced
because of a deployment, a call or order
to active duty, a permanent change in
station, or the service-connected death
or disability of the service member.
Section 680.640 May an individual
with a disability whose family does not
meet income eligibility criteria under
the Act be eligible for priority as a lowincome adult?
Proposed § 680.640 explains that
under WIOA an individual with a
disability whose family does not meet
income eligibility criteria will still
qualify for priority as a low-income
adult if the individual meets the lowincome criteria in WIOA sec. 3(36).
Additionally, the Department proposes
that if an individual with a disability
meets the income eligibility criteria for
payments under any Federal, State, or
local public assistance program that
individual will also be eligible for
priority as a low-income adult
consistent with WIOA sec. 3(36)(A)(i).
This includes recipients of SNAP,
TANF, and recipients of the
Supplemental Security Income program.
Section 680.650 Do veterans receive
priority of service under the Workforce
Innovation and Opportunity Act?
Proposed § 680.650 builds on the
Department’s efforts to ensure veterans
are entitled to priority of service in all
Department-funded training programs
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under 38 U.S.C. 4215 and 20 CFR 1010.
The proposal states that veterans must
receive priority of service in programs
for which they are eligible. In programs
that require income-based eligibility to
receive services, amounts paid while on
active duty or paid by the Department
of Veterans Affairs (VA) for VR,
disability, or other related VA programs
are not considered as income when
determining low-income status.
Generally, this means many separating
service members may qualify for the
WIOA adult program because it
provides priority for low-income
individuals and military earnings are
not to be considered income for this
purpose.
Section 680.660 Are separating service
members eligible for dislocated worker
activities under the Workforce
Innovation and Opportunity Act?
Proposed § 680.660 explains,
consistent with the Department’s longstanding policy, that service members
exiting the military qualify as dislocated
workers. Dislocated worker funds under
title I can help separating service
members enter or reenter the civilian
labor force.
Proposed § 680.660(a) clarifies that a
notice of separation, a DD–214 from the
Department of Defense, or other
appropriate documentation that shows a
separation or imminent separation from
the Armed Forces qualifies as a notice
of termination or layoff required for the
dislocated worker definition.
Proposed § 680.660(b) clarifies that a
separating service member meets the
dislocated worker requirements
concerning UC.
Proposed § 680.660(c) clarifies that a
separating service member meets the
dislocated worker requirement that an
individual is unlikely to return to his or
her previous industry or occupation.
7. Subpart F—Work-Based Training
Introduction
Proposed §§ 680.700 through 680.850
are proposed regulations for work-based
training under WIOA. The proposed
regulations apply to (OJT) training,
customized training, incumbent worker
training, and transitional jobs. The
proposed regulations include specific
information about general, contract, and
employer payment requirements. Workbased training is employer-driven with
the goal of unsubsidized employment
after participation. Generally, workbased training involves a commitment
by an employer or employers to fully
employ successful participants after
they have completed the program.
Registered apprenticeship training is a
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type of work-based training that can be
funded in the adult and dislocated
worker programs; additionally preapprenticeships may be used to provide
work experiences that can help
participants obtain the skills needed to
be placed into a registered
apprenticeship.
Work-based training can be an
effective training strategy that can
provide additional opportunities for
participants and employers in both
finding high quality work and in
developing a high quality workforce.
Each of these work-based models can be
effectively used to target different job
seeker and employer needs. OJT is
primarily designed to provide a
participant with the knowledge and
skills necessary for the full performance
of the job. Incumbent worker training is
designed to ensure that employees of a
company are able to gain the skills
necessary to retain employment and
advance within the company or to
provide the skills necessary to avert a
layoff. Customized training is designed
to provide local areas with flexibility to
ensure that training meets the unique
needs of the job seekers and employers
or groups of employers.
Both training providers and OJT
providers must be providing the highest
quality training to participants. OJT
contracts must be continually monitored
so that WIOA funds provided through
OJT contracts are providing participants
with successful employment. It is
important that OJTs have a strong ability
to provide participants with in-demand
skills with opportunities for career
advancement and employers with a
skilled workforce.
Under WIA, States could apply for a
waiver to increase reimbursement
amounts of the OJT wage rate. Under
WIOA, the statute enables a Governor or
Local Board to increase this rate to 75
percent without a waiver. This change
is designed to give States and Local
Boards additional flexibility in
developing OJT opportunities that work
best with the participating employers
and in the local economy.
WIOA also explicitly allows for
incumbent worker training at the local
level. WIOA introduces incumbent
worker training as an allowable type of
training for a local area to provide.
Under WIA, States could use their
statewide activities funds to conduct
incumbent worker training, and local
areas could conduct incumbent worker
training with an approved waiver.
Incumbent worker training is designed
to either assist workers in obtaining the
skills necessary to retain employment or
to avert layoffs and must increase both
a participant’s and a company’s
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competitiveness. Local areas may use up
to 20 percent of their local adult and
dislocated worker funds for incumbent
worker training. In this proposed
regulation, the Department seeks to
ensure that incumbent worker training
is targeted to improving the skills and
competitiveness of the participant and
increasing the competitiveness of the
employer. The training should,
wherever possible, allow the participant
to gain industry-recognized training
experience, and ultimately should lead
to an increase in wages. To receive
incumbent worker funding under
WIOA, an incumbent worker must have
an employer-employee relationship, and
an established employment history,
with the employer. Incumbent workers
are employed at the time of their
participation, and the contract funds are
paid to the employer for training
provided to the incumbent worker
either to avert a lay-off or otherwise
retain employment. An ideal incumbent
worker training would be one where a
participant acquires new skills allowing
him or her to move into a higher skilled
and higher paid job within the
company, thus allowing the company to
hire a job seeker to backfill the
incumbent worker’s position. The
Departments are seeking comment on
the best way to structure these
arrangements to maximize the
likelihood that this ideal outcome
occurs.
WIOA also discusses transitional jobs
as a way for adults and dislocated
workers with barriers to employment
who are experiencing chronic
unemployment or have an inconsistent
work history to develop a work history
and basic work skills essential to
keeping a job. Transitional jobs are timelimited, subsidized employment in the
private, non-profit, or public sectors.
Section 680.700 What are the
requirements for on-the-job training?
OJT is a type of training that is
provided by an employer to a
participant. During the training, the
participant is engaged in productive
work in a job for which he or she is
paid, and the training provides the
knowledge or skills essential to the full
and adequate performance of the job.
Studies over the past 3 decades have
found that in the United States formal
OJT programs have positive
employment and earnings outcomes.2
OJT is a critical tool that can help
2 Kleinman, Liu, Mastri, Reed, Reed, Sattar,
Ziegler, An Effectiveness Assessment and CostBenefit Analysis of Registered Apprenticeship in 10
States, Mathematica Policy Research, July 2012,
Prepared for the U.S. Department of Labor,
Employment and Training Administration.
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jobseekers enter into successful
employment.
Proposed § 680.700(a) explains that
OJT may be provided under contract
with an employer in the public, private
non-profit, or private sectors. Under
WIOA, the reimbursement level may be
raised up to 75 percent of the wage rate,
in contrast to 50 percent of the wage rate
under WIA. Typically, the OJT contract
provides reimbursement to the
employer for a portion of the wage rate
of the participant for the extraordinary
costs of providing training and
supervision related to the training.
Proposed § 680.700(b) states that
contracts must not be entered into with
an employer that received payments
under previous contracts under WIOA
or WIA if the employer has exhibited a
pattern of failing to provide OJT
participants with continued long-term
employment as regular employees with
wages, employment benefits, or working
conditions at the same level as other
employees performing the same type of
work for the same length of time.
Proposed § 680.700(c) continues the
requirement under WIA that OJT
contracts must be limited in duration to
the time necessary for a participant to
become proficient in the occupation for
which they are receiving the OJT
training. When determining the length
of the contract, the Governor or Local
Boards must take into account the skill
requirements of the occupation, the
academic and occupational skill level of
the participant, prior work experience,
and the participant’s individual
employment plan.
Section 680.710 What are the
requirements for on-the-job training
contracts for employed workers?
Proposed § 680.710 is unchanged
from the WIA regulations. The proposal
identifies the requirements for OJT
contracts used to train employed
workers.
Section 680.720 What conditions
govern on-the-job training payments to
employers?
Proposed § 680.720 identifies the
conditions that govern OJT payment to
employers. OJT payments are to be
compensation to the employer for the
extraordinary costs associated with
training participants. The Department
does not seek to define through this
regulation what ‘‘extraordinary costs’’
are, and is seeking public comment on
this issue. The Department generally
believes extraordinary costs are those
costs the employer has in training
participants who may not yet have the
knowledge or skills to obtain the job
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through an employer’s normal
recruitment process.
Section 680.730 Under what
conditions may a Governor or Local
Board raise the on-the-job training
reimbursement rate up to 75 percent of
the wage rate?
Proposed § 680.730(a) identifies the
factors that a Governor or Local Board
must consider and document in
determining whether to raise the
reimbursement rate for OJT contracts up
to 75 percent of the wage rate.
Proposed § 680.730(1) allows for the
wage rate to be up to 75 percent after
taking into consideration, among other
factors, the characteristics of the
participants (WIOA sec.
134(c)(3)(H)(ii)(I)), including whether
the OJT contract is leading to
employment for individuals with
barriers to employment. Proposed
§ 680.730(2) states that the size of the
employer is a factor that must be
considered; proposed § 680.730(3) states
that the quality of employer-provided
training and advancement opportunities
is a factor that must be considered.
Proposed § 680.730(4) states that the
Governor or Local Board may consider
other factors in determining whether it
is appropriate to raise the
reimbursement rate. Such other factors
may include the number of employees
participating, wage and benefit levels of
employees both before and after OJT
completion, and relation of training to
the competitiveness of the participant.
Proposed § 680.730(b) requires that the
Governor or Local Board must
document the factors that they
considered when deciding to increase
the wage reimbursement levels above 50
percent up to 75 percent. The
Department is seeking comments from
the public on how the relation of
training to the competitiveness of the
participant must be analyzed when
implementing this provision.
Section 680.740 How can on-the-job
training funds be used to support
placing participants into a registered
apprenticeship program?
Proposed § 680.740(a) clarifies that an
OJT contract may be made with a
registered apprenticeship program for
training participants. OJT contracts are
made with the employer, and registered
apprenticeships generally involve both
classroom and on-the-job instruction.
The OJT contract may be made to
support the OJT portion of the registered
apprenticeship program. The
Department also notes that registered
apprenticeship programs vary in length,
so the OJT may support the entire
duration of training while other means
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may support the beginning of the
registered apprenticeship training. The
Department is seeking comments on
what an appropriate maximum amount
of time would be for OJT funds to be
used to support participants in
registered apprenticeships.
Proposed paragraph (b) clarifies that
in some instances a registered
apprenticeship is operated by the
employer and in others it is operated by
a training provider with a direct
connection to an employer or group of
employers. If a participant is in a
registered apprenticeship and employed
as part of that arrangement, then the OJT
must be treated as other OJTs provided
for employed workers as described in
§ 680.710. If a participant is in a
registered apprenticeship but is
unemployed, the OJT funds may be
provided in same manner as other OJTs
as described in § 680.700.
Section 680.750 Can Individual
Training Account and on-the-job
training funds be combined to support
placing participants into a registered
apprenticeship program?
Local areas may use an ITA to support
classroom portions of a registered
apprenticeship program and OJT funds
may be used to support the on-the-job
portions of the registered apprenticeship
program. This is to ensure local areas
have maximum flexibility in serving
participants and supporting their
placement into registered
apprenticeship programs.
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Section 680.760 What is customized
training?
Proposed § 680.760 explains that
customized training is to be used to
meet the special requirements of an
employer or group of employers,
conducted with a commitment by the
employer to employ all individuals
upon successful completion of training.
The employer must pay for a significant
share of the cost of the training.
Proposed § 680.760(a) and (b) are
unchanged from WIA. In paragraph (c)
under WIA employers were required to
pay for not less than 50 percent of the
cost of the training, WIOA removes the
precise figure and says that the
employer must pay for a ‘‘significant
cost of the training.’’
Section 680.770 What are the
requirements for customized training for
employed workers?
Proposed § 680.770 identifies the
eligibility requirements for employed
workers to receive customized training.
There may be instances where a worker
is employed but then receives
customized training under contract
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between the local area and the
employer. In order for the employed
worker to qualify, the employee must
not be earning a self-sufficient wage as
determined by Local Board policy, the
requirements of customized training in
proposed § 680.760 must be met, and
the training must incorporate new
technologies, processes, or procedures;
skills upgrades; workplace literacy; or
other appropriate purposes, as
identified by the Local Board. Proposed
§ 680.770 is unchanged from WIA. The
Department is interested in comments
that discuss how to distinguish
customized training from OJT. Should
they focus on different service
populations, different training
strategies, or different types of jobs?
Section 680.780 Who is an
‘‘incumbent worker’’ for purposes of
statewide and local employment and
training activities?
Proposed § 680.780 is designed to
update the definition of an incumbent
worker from WIA. An incumbent
worker is employed with the company
when the incumbent worker training
starts. The Department is seeking
comment on the appropriate amount of
time an employee must have worked for
the employer before being eligible for
incumbent worker training. The
Department is proposing a minimum of
6 months, but is seeking substantive
comments on this proposal. The
Department is also seeking comments
on how incumbent worker training
should increase the competitiveness of
the employee or employer for the
purposes of identifying high-quality
incumbent worker opportunities.
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may use their statewide activities funds
and Rapid Response funds for statewide
incumbent worker training activities.
Section 680.810 What criteria must be
taken into account for an employer to be
eligible to receive local incumbent
worker funds?
Proposed § 680.810 provides the
criteria a Local Board must use when
deciding on using funds for incumbent
worker training with an employer.
Paragraphs (a) through (c) address
participant characteristics, the
relationship of the training to the
competitiveness of the participant and
employer, and other factors that the
Local Board determines appropriate.
These factors may include the number
of employees in training, wages and
benefits (including post-training
increases), and the existence of other
training opportunities provided by the
employer.
Section 680.820 Are there cost sharing
requirements for local area incumbent
worker training?
Proposed § 680.820 clarifies that there
are cost sharing requirements for
employers participating in incumbent
worker training to pay for the nonFederal share of the cost of providing
training to incumbent workers of the
employers.
Section 680.790 What is incumbent
worker training?
Proposed § 680.790 discusses the
purposes served by and the conditions
relating to incumbent worker training as
prescribed by WIOA sec. 134(d)(4)(B).
Incumbent worker training is
designed to meet the special
requirements of an employer (including
a group of employers) to retain a skilled
workforce or avert the need to lay off
employees by assisting the workers in
obtaining the skills necessary to retain
employment. The employer or group of
employers must pay for a portion of the
cost of providing the training to
incumbent workers.
Section 680.830 What is a transitional
job?
Proposed § 680.830 explains that
transitional jobs are time-limited work
experiences that are subsidized for
individuals with barriers to employment
who are chronically unemployed or
have an inconsistent work history.
These jobs may be in the public, private,
or non-profit sectors. Transitional jobs
can be effective solutions for
individuals to gain necessary work
experience that they would otherwise
not be able to get through training or an
OJT contract. The goal is to establish a
work history for the individual,
demonstrate work success, and develop
skills that lead to entry into
unsubsidized employment. The
difference between a transitional job
and an OJT contract is that in a
transitional job there is no expectation
that the individual will continue his or
her hire with the employer after the
work experience is complete.
Section 680.800 What funds may be
used for incumbent worker training?
Proposed § 680.800 provides that
under WIOA, local areas may use up to
20 percent of their combined total of
adult and dislocated worker allotments
for incumbent worker training. States
Section 680.840 What funds may be
used for transitional jobs?
Proposed § 680.840 states that local
areas may reserve up to 10 percent of
their combined total of adult and
dislocated worker allotments for
transitional jobs and must be provided
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along with comprehensive career
services and supportive services.
Section 680.850 May funds provided
to employers for work-based training be
used to assist, promote, or deter union
organizing?
Proposed § 680.850 clarifies that there
is an explicit prohibition on the use of
work-based training funds which
includes OJT, customized training,
incumbent worker training, transitional
jobs or registered apprenticeship for
assisting, promoting, or deterring union
organizing activities.
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8. Subpart G—Supportive Services
Introduction
This section defines the scope and
purpose of supportive services and the
requirements governing their
disbursement. A key principle in WIOA
is to provide local areas with the
authority to make policy and
administrative decisions and the
flexibility to tailor the workforce system
to the needs of the local community. To
ensure maximum flexibility, the
regulations provide local areas the
discretion to provide the supportive
services they deem appropriate subject
to the limited conditions prescribed by
WIOA. Local Boards must develop
policies and procedures to ensure
coordination with other entities to
ensure non-duplication of resources and
services and to establish limits on the
amount and duration of such services.
Local Boards are encouraged to develop
policies and procedures that ensure that
supportive services are WIOA-funded
only when these services are not
available through other agencies and
that the services are necessary for the
individual to participate in title I
activities. Supportive services may be
made available to anyone participating
in title I activities.
Needs-related payments are designed
to provide a participant with resources
for the purpose of enabling them to
participate in training services. The
Department recognizes that many
individuals in need of training services
may not have the resources available to
participate in the training. Needs-related
payments can help individuals meet
their non-training expenses and help
them to complete training successfully.
A participant must be enrolled in a
training program in order to receive
needs-related payments.
Section 680.900 What are supportive
services for adults and dislocated
workers?
Proposed § 680.900 explains that
supportive services are services, such as
transportation, child care, dependent
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care, housing, and needs-related
payments, that are necessary to enable
an individual to participate in career
and training services. Referrals to
supportive services are one of the career
services that must be made available to
adults and dislocated workers through
the one-stop delivery system. The
proposed section also provides that
Local Boards, in consultation with the
one-stop partners and other community
service providers, must develop a policy
on supportive services that ensures
resource and service coordination in the
local area. The policy must address
procedures for referral to such services,
including how such services will be
funded when they are not otherwise
available from other sources. When
developing this policy, the Department
encourages Local Boards to consider
incorporating local legal aid services.
Legal aid is able to reduce barriers to
employment and establish employment
eligibility such as by helping secure a
driver’s license, expunging criminal
records, and addressing debts or credit
reporting issues.
In the context of a coordinated onestop delivery system envisioned by
WIOA, the one-stop needs to take into
consideration all of the available
supportive service resources so that
participants may receive the best
supportive services available and to
ensure that funds are spent to maximize
participants’ opportunity to participate
in career and training services.
Section 680.910 When may supportive
services be provided to participants?
Proposed § 680.910 states that
supportive services may only be
provided to participants who are in
career or training services, unable to
obtain supportive services through other
programs providing supportive services,
and that they must be provided in a
manner necessary to enable individuals
to participate in career or training
services. The proposed rule removes
references to ‘‘core’’ and ‘‘intensive’’
services, terms now characterized as
‘‘career services’’ under WIOA.
Section 680.920 Are there limits on
the amounts or duration of funds for
supportive services?
Proposed § 680.920 provides that
Local Boards may establish limits on
providing supportive services or allow
the one-stop operator to establish limits,
including caps on the amount of
funding and length of time for
supportive services to be made
available. The rule text makes no
changes from WIA.
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Section 680.930 What are needsrelated payments?
Proposed § 680.930 defines needsrelated payments as financial assistance
to a participant for the purpose of
enabling the individual to participate in
training. Needs-related payments are a
type of supportive service that provides
direct financial payments to a
participant, and unlike other supportive
services, the participant must be
enrolled in training to receive needsrelated payments. The rule text makes
no substantive changes from WIA; it
provides updated citations to WIOA.
Section 680.940 What are the
eligibility requirements for adults to
receive needs-related payments?
Proposed § 680.940 clarifies that for
an adult to receive a needs-related
payment he or she must be unemployed,
not qualify for or have ceased to qualify
for UC, and be enrolled in a training
program.
Section 680.950 What are the
eligibility requirements for dislocated
workers to receive needs-related
payments?
Proposed § 680.950 provides that
dislocated workers may receive needsrelated payments if they are
unemployed, ceased to qualify for UC or
trade readjustment allowance under
Trade Adjustment Assistance (TAA),
and be enrolled in training by certain
deadlines. It makes one clarification
from WIA in that it provides that the
dislocated worker must be enrolled in
training.
Section 680.960 May needs-related
payments be paid while a participant is
waiting to start training classes?
Proposed § 680.960 states that
payments may be provided if the
participant has been accepted into a
program that will begin within 30
calendar days.
Section 680.970 How is the level of
needs-related payments determined?
Proposed § 680.970(a) explains that
the needs-related payment level for
adults must be established by the Local
Board. The Department recognizes the
costs of different labor markets and
believes that payment levels are best set
locally to ensure the needs-related
payments meet their purpose of
enabling participants to receive training
services.
Proposed § 680.970(b) explains how
needs-related payments for dislocated
workers are calculated. If the participant
is a dislocated worker and has
established eligibility for UC, the needsrelated payment must not exceed the
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higher of the weekly level of UC the
participant receives or an amount equal
to the poverty level for an equivalent
time period. If the participant qualifies
for dislocated worker services, but not
for UC as a result of the qualifying
layoff, the needs-related payment must
not exceed the higher of the weekly
level of UC the participant would
receive if she or he had qualified, if the
weekly benefit amount that the
participant would have received can be
determined, or an amount equal to the
poverty level for an equivalent time
period. Local Boards must adopt
policies to adjust the weekly payment
level if there are changes in total family
income.
E. Part 681—Youth Activities Under
Title I of the Workforce Innovation and
Opportunity Act
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1. Introduction
Under WIOA, Federal, State, and local
partnerships that put the youths’
interests first will help the nation’s
disconnected youth to succeed. The
common performance measures across
WIOA core programs, adult and youth
programs under WIOA title I, and Adult
Education and Vocational Rehabilitation
programs under WIOA titles II and IV
provide a mechanism to support youth
service alignment. WIOA envisions the
Department’s youth programs, including
Job Corps, YouthBuild, and the youth
formula-funded program, coordinating
to support systems alignment and
service delivery for youth. Local and
State plans will articulate this vision of
youth workforce investment activities
and help ensure a long-term supply of
skilled workers and leaders in local
communities.
WIOA affirms the Department’s
commitment to providing high quality
services for youth and young adults
beginning with career exploration and
guidance, continued support for
educational attainment, opportunities
for skills training in in-demand
industries and occupations, and
culminating with a good job along a
career pathway or enrollment in postsecondary education. All of the
Department’s youth-serving programs
continue to promote evidence-based
strategies that also meet the highest
levels of performance, accountability,
and quality in preparing young people
for the workforce. The Department’s
focus on performance and
accountability is emphasized through
the implementation of the new primary
indicators of performance for eligible
youth across programs and through their
use of the primary indicators for
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program management and decisionmaking.
WIOA maintains WIA’s focus on OSY
in Job Corps and YouthBuild, while
greatly increasing the focus on OSY in
the WIOA youth formula-funded
program. The shift in policy to focus on
those youth most in need is based on
the current state of youth employment.
With an estimated 6 million 16–24 year
olds in our country not employed or in
school, WIOA youth programs provide a
continuum of services to help these
young people navigate between the
educational and workforce systems. The
Department, working with its Education
and Health and Human Services
partners, plans to provide intensive
technical assistance around meeting the
needs of this population.
WIOA calls for customer-focused
services based on the needs of the
individual participant. This includes
the creation of career pathways for
youth in all title I youth programs,
including a connection to career
pathways as part of a youth’s individual
service strategy in the youth formulafunded program. In addition, many
services under title I youth programs are
based on the individual needs of
participants. WIOA also calls for this
population to be intimately involved in
the design and implementation of
services so the youth voice is
represented and their needs are being
met.
This integrated vision also applies to
the workforce system’s other shared
customer-employers. By repositioning
youth as an asset to employers with a
need for skilled workers, the value of
employers engaging the youth workforce
system and programs is enhanced.
Employers are critical partners that
provide meaningful growth
opportunities for young people through
work experiences that give them the
opportunity to learn and apply skills in
real-world setting and ultimately jobs
that young people are ready to fill given
the opportunity.
The Department recognizes that much
of this alignment and integration is
already happening in local areas and
regions across the country. WIOA aims
to build upon these existing efforts
through an emphasis on system
alignment, an increased focus on
serving OSY and those most in need, an
emphasis on the needs of individual
participants, and the prioritization of
connections with employers, especially
through work experience opportunities.
The Department recognizes that WIOA
also includes major shifts in approach
and is committed to working with the
youth workforce investment system to
partner in the implementation of these
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changes through guidance and technical
assistance.
WIOA supersedes the youth formulafunded program under title I, subtitle B,
chapter 2 Youth Workforce Investment
Activities. It further aligns the WIOA
youth program with the other ETA
youth training programs, including
YouthBuild and Job Corps, as well as
with titles II and IV of WIOA by
requiring common performance
measures across all core programs.
WIOA includes a number of
significant changes for the youth
formula-funded program. The biggest
change under WIOA is the shift to focus
resources primarily on OSY. WIOA
increases the minimum percentage of
funds required to be spent on OSY from
30 percent to 75 percent. This
intentional shift refocuses the program
to serve OSY during a time when large
numbers of youth and young adults are
out of school and not connected to the
labor force. While the Department
recognizes this transition to serve more
OSY will take time to implement, it is
critical that States and local areas begin
to incorporate strategies for recruiting
and serving more OSY.
These strategies must incorporate
strong framework services which must
include intake, objective assessments,
and the development of individual
service strategy, case management,
supportive services, and follow-up
services. They must also consider how
to ensure that American Job Center staff
have the requisite knowledge and
sensitivity to the needs of OSY to
effectively serve them. The Department
plans to release subsequent guidance on
these matters but also welcomes
comments at this time on preferred
approaches.
In addition, WIOA includes a major
focus on providing youth with work
experience opportunities. WIOA
prioritizes work experiences with the
requirement that local areas must spend
a minimum of 20 percent of local area
funds on work experience. Under
WIOA, work experience becomes the
most important of the program
elements. WIOA also introduces five
new program elements: Financial
literacy; entrepreneurial skills training;
services that provide labor market and
employment information about indemand industry sectors or occupations
available in the local areas; activities
that help youth prepare for and
transition to post-secondary education
and training; and education offered
concurrently with and in the same
context as workforce preparation
activities and training for a specific
occupation or occupational cluster.
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WIOA enhances the youth program
design through an increased emphasis
on individual participant needs by
adding new components to the objective
assessment and individual service
strategy. WIOA incorporates career
pathways as part of both the objective
assessment and development of the
individual service strategy. In addition,
the individual service strategy must
directly link to one or more of the
performance indicators. The program
design under WIOA also includes
effective connections to employers,
including small employers, in indemand industry sectors and
occupations.
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2. Subpart A—Standing Youth
Committees
Section 681.100 What is a standing
youth committee?
This proposed section describes a
standing youth committee. WIOA
eliminates the requirement for Local
Boards to establish a youth council;
however, the Local Board may choose to
establish, ‘‘a standing committee to
provide information and to assist with
planning, operational, and other issues
relating to the provision of services to
youth, which must include CBOs with
a demonstrated record of success in
serving eligible youth’’ (WIOA sec.
107(b)(4)(A)(ii)). The Department
recognizes the difficulty under WIA in
some local areas in maintaining the
required youth council partnerships.
The Department encourages Local
Boards to consider establishing standing
youth committees, taking advantage of
the flexibility under WIOA to design
standing youth committee membership
to meet the local area’s needs.
Additionally, the law further clarifies
that an existing youth council may be
designated as the youth standing
committee if they are fulfilling the
requirements of a standing committee
which means that they have members of
the Local Board who have the
appropriate experience and expertise in
youth educational and workforce
development (WIOA sec. 107(b)(4)(C)).
The Department encourages Local
Boards to designate high performing
youth councils as standing youth
committees if appropriate. Local Boards
are responsible for the oversight of
youth programs. Under WIA, youth
councils were mandated to fulfill this
function for the Board. Local Boards
now may choose to fulfill the oversight
responsibility, or have the discretion to
delegate this function to a standing
youth committee. If Local Boards choose
not to delegate this function to a
standing youth committee, they are
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responsible for conducting oversight of
youth workforce investment activities
under WIOA sec. 129(c).
Section 681.110 Who is included on a
standing youth committee?
This proposed section describes the
members of a standing youth committee
if the Local Board chooses to establish
such a committee based on WIOA secs.
107(b)(4)(A)(ii) and 129(c)(3)(C). The
members must include a member of the
Local Board, who must chair the
committee, members of CBOs with a
demonstrated record of success in
serving eligible youth and other
individuals with appropriate expertise
and experience who are not members of
the Local Board. The committee may
also include parents, participants, and
youth. A Local Board may designate an
existing entity such as an effective
youth council as the standing youth
committee if its membership meets the
WIOA membership requirements.
Section 681.120 What does a standing
youth committee do?
This proposed section describes the
duties of a standing youth committee if
the Local Board chooses to establish
such a committee based on WIOA
secs.107(b)(4)(A)(ii) and 129(c)(3)(C).
The standing committee’s main function
is to inform and assist the Local Board
in developing and overseeing a
comprehensive youth program. The
details of its responsibilities are
assigned by the Local Board.
3. Subpart B—Eligibility for Youth
Services
Section 681.200 Who is eligible for
youth services?
This proposed section based on WIOA
sec. 3(18) describes eligibility for the
WIOA title I youth formula-funded
program which includes two groups: Inschool youth (ISY) and OSY and
establishes specific criteria for each
group. The eligible WIOA title I youth
population represents youth who face
challenges and barriers to success in the
labor market.
Section 681.210 Who is an ‘‘out-ofschool youth’’?
This proposed section describes how
one meets the eligibility for an OSY for
purposes of the title I WIOA youth
program. OSY youth must not attend
any school, be between the ages of 16
and 24 at time of enrollment, and meet
one or more of a list of eight criteria.
With one exception, the WIOA criteria
are generally the same as those under
WIA. The section clarifies that age is
based on time of enrollment and as long
as the individual meets the age
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eligibility at time of enrollment they can
continue to receive WIOA youth
services beyond the age of 24. Unlike
under WIA or under the definition of an
ISY, low income is not a requirement to
meet eligibility for most categories of
OSY under WIOA. However, low
income is now a part of the criteria for
youth who need additional assistance to
enter or complete an educational
program or to secure or hold
employment. Also, WIOA has made
youth with a disability a separate
eligibility criterion.
In addition, WIOA includes a new
criterion: A youth who is within the age
of compulsory school attendance, but
has not attended school for at least the
most recent school year calendar
quarter. Because school districts differ
in what they use for school year
quarters, the time period of a school
year quarter is based on how a local
school district defines its school year
quarters. WIOA lists this criterion as the
second on the list of eight that satisfy
the third of the three primary
requirements.
Section 681.220 Who is an ‘‘in-school
youth’’?
This proposed section describes how
one meets the eligibility for an ISY for
purposes of the WIOA title I youth
program. ISY youth must be attending
school, including secondary or postsecondary school, be between the ages
of 14 and 21 at time of enrollment, be
low-income, and meet one or more of a
list of seven criteria. These are
essentially the same criteria as under
WIA but the disability criterion has
been separated from the ‘‘needs
additional assistance’’ criterion. The
section clarifies that age is based on
time of enrollment and as long as the
individual meets the age eligibility at
time of enrollment they can continue to
receive WIOA youth services beyond
the age of 21. WIOA includes a youth
as low-income if he or she receives or
is eligible to receive a free or reduced
price lunch under the Richard B.
Russell National School Lunch Act (42
U.S.C. 1751 et seq.).
Section 681.230 What does ‘‘school’’
refer to in the ‘‘not attending or
attending any school’’ in the out-ofschool and in-school definitions?
The term school refers to both
secondary and post-secondary school as
defined by the applicable State law for
secondary and post-secondary
institutions. This proposed section
provides that for purposes of title I of
WIOA, the Department does not
consider providers of adult education
under title II of WIOA, YouthBuild
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programs, or Job Corps programs as
schools. Therefore, if the only ‘‘school’’
the youth attends is adult education
provided under title II of WIOA,
YouthBuild, or Job Corps, the
Department will consider the individual
an OSY youth for purposes of title I of
WIOA youth program eligibility.
WIOA emphasizes the importance of
coordination among Federally-funded
employment and training programs,
including those authorized under titles
I and II. Many disconnected youth age
16 to 24 meet eligibility requirements
for both WIOA title I youth activities
and WIOA title II adult education. Coenrollment between these two programs
can be very beneficial to disconnected
youth as they can receive work
experience and occupational skills
through title I funding and literacy skills
through title II funding. Because the
eligibility for title II is similar to that for
an OSY under title I, an individual who
is not enrolled or required to be enrolled
in secondary school under State law, it
is consistent to consider such youth
already enrolled in title II as an OSY for
purposes of title I WIOA youth
eligibility.
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Section 681.240 When do local youth
programs verify dropout status,
particularly for youth attending
alternative schools?
This proposed section provides that
dropout status is determined at the time
of enrollment for eligibility as an OSY
and that once a youth is enrolled as an
OSY, that status continues, for purposes
of the 75 percent OSY enrollment
requirement, for the duration of the
youth’s enrollment, even if the youth
later returns to a school. Because WIOA
does not define the term alternative
school, States must develop a definition.
The Department advises States to define
alternative school consistent with their
State education agency alternative
school definition. As of September
2014, 43 States and the District of
Columbia have formal definitions of
alternative education. The intent of
WIOA is to serve more OSY who are
disconnected from school and work,
while continuing to develop strategies
and provide services to ISY in
collaboration with community partners.
Section 681.250 Who does the lowincome eligibility requirement apply to?
This proposed section discusses the
low-income eligibility criteria for OSY
and ISY. For OSY, only those youth
who are the recipient of a secondary
school diploma or its recognized
equivalent and are either basic skills
deficient or an English language learner
and youth who require additional
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assistance to enter or complete an
educational program or to secure or
hold employment must be low-income.
For OSY who are subject to the justice
system, homeless, pregnant or
parenting, or have a disability, income
eligibility documentation is not required
by statute. All ISY must be low-income.
Under WIOA, there are circumstances
when local areas will find documenting
low income for youth formula program
eligibility less burdensome than it was
under the WIA youth program. For
example, for ISY a local program can
use eligibility for free or reduced price
lunch as low-income documentation.
For all youth, those living in a highpoverty area are considered low-income.
The section also sets out the exception
to the low-income requirement that up
to 5 percent of youth who meet all the
other eligibility requirements need not
be low-income. The 5 percent is
calculated based on all youth served in
the WIOA local youth program in a
given PY.
Section 681.260 How does the
Department define ‘‘high poverty area’’
for the purposes of the special rule for
low-income youth in Workforce
Innovation and Opportunity Act?
WIOA contains a new provision that
allows for youth living in a high-poverty
area to automatically meet the lowincome criterion that is one of the
eligibility criteria for ISY and for some
OSY. In order to maintain consistency
across the country, the Department
proposes that a high-poverty area be
defined as a Census tract; a set of
contiguous Census tracts; Indian
Reservation, tribal land, or Native
Alaskan Village; or a county that has a
poverty rate of at least 30 percent as set
every 5 years using American
Community Survey 5-Year data. While
there is no standard definition for the
term ‘‘high-poverty area’’ in Federal
programs, the Census Bureau uses two
similar concepts. One is ‘‘poverty area,’’
that is an area with a poverty rate of at
least 20 percent and the other is ‘‘area
with concentrated poverty,’’ that is an
area with a poverty rate of at least 40
percent. The term high-poverty area
implies an area that has more poverty
than a ‘‘poverty area’’ but not as much
poverty as an ‘‘area with concentrated
poverty.’’ In addition, current
Department competitive grant programs
for ex-offenders define high poverty
areas as communities with poverty rates
of at least 30 percent. The Department
is seeking comments on whether the
poverty thresholds the Department is
proposing are the most appropriate
levels for youth living in a high poverty
area.
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Section 681.270 May a local program
use eligibility for free or reduced price
lunches under the National School
Lunch Program as a substitute for the
income eligibility criteria under title I of
the Workforce Innovation and
Opportunity Act?
This proposed section describes a
change from WIA in which a local
program can use eligibility for free or
reduced price lunch under the Richard
B. Russell National School Lunch Act as
one of the factors to determine whether
a participant meets the low-income
criteria for eligibility for the WIOA
youth program.
Section 681.280 Is a youth with a
disability eligible for youth services
under the Act if their family income
exceeds the income eligibility criteria?
This proposed section reiterates the
WIOA provision that, for an individual
with a disability, income level for
eligibility purposes is based on his/her
own income rather than his/her family’s
income.
Section 681.290 How does the
Department define the ‘‘basic skills
deficient’’ criterion in this part?
This proposed section reiterates the
basic skills deficient criterion that is
part of the eligibility criteria for both
OSY and ISY, for purposes of title I of
WIOA. For the second part of the
definition, which reads ‘‘a youth who is
unable to compute or solve problems, or
read, write, or speak English at a level
necessary to function on the job, in the
individual’s family, or in society,’’ the
State and/or Local Board must further
define how the State or Local Board will
determine if a youth is unable to
demonstrate these skills well enough to
function on the job, in their family, or
in society as part of its respective State
or local plan. The section also provides
that local programs must use valid and
reliable assessment instruments and
provide reasonable accommodations to
youth with disabilities in the
assessment process in making this
determination.
Section 681.300 How does the
Department define the ‘‘requires
additional assistance to complete an
educational program, or to secure and
hold employment’’ criterion in this
part?
This proposed section allows States
and/or local areas to define the
‘‘requires additional assistance . . .’’
criterion that is part of the OSY and ISY
eligibility. It clarifies that if this
criterion is not defined at the State level
and a local area uses this criterion in
their OSY or ISY eligibility, the local
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area must define this criterion in their
local plan.
Section 681.310 Must youth
participants enroll to participate in the
youth program?
This proposed section clarifies that
there is no self-service concept for the
WIOA youth program and every
individual receiving services under
WIOA youth must meet ISY or OSY
eligibility criteria and formally enroll in
the program. It defines enrollment as the
collection of information to support an
eligibility determination and
participation in any one of the 14
program elements. Under WIA the
Department received many questions
about the point in time that a youth
became enrolled in the program. The
Department hopes the proposed
addition of connecting enrollment to
receipt of a program element clarifies
the moment at which enrollment occurs.
The reference to EO data in the
corresponding section under WIA was
dropped because all rules related to data
collection are covered in § 677 on
performance management.
4. Subpart C—Youth Program Design,
Elements, and Parameters
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Section 681.400 What is the process
used to select eligible youth providers?
WIA regulations did not address the
process for identifying and selecting
eligible youth providers required in
WIA sec. 123. The Department has
received numerous inquiries asking for
clarification on the competitive
selection of youth providers and which
services must be provided by entities
identified in accordance with WIA sec.
123. This proposed regulation clarifies
which youth activities may be
conducted by the local grant recipient
and which services must be provided by
entities identified in accordance with
WIOA sec. 123. Consistent with
§ 664.405(a)(4), the competitive
selection requirement in WIOA sec. 123
does not apply to framework services if
the grant recipient/fiscal agent provides
these services. The Department allows
this because in some cases the grant
recipient/fiscal agent may be best
positioned to provide such services. For
example, the grant recipient/fiscal agent
that provides framework services can
ensure continuity of WIOA youth
programming as youth service providers
change.
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Section 681.410 Does the requirement
that a State and local area expend at
least 75 percent of youth funds to
provide services to out-of-school youth
apply to all youth funds?
This proposed section describes the
new minimum expenditure requirement
under WIOA that States and local areas
must expend a minimum of 75 percent
of youth funds on OSY. Under WIA,
local areas were required to spend at
least 30 percent of funds to assist
eligible OSY. This represents a
significant shift in the focus of the
WIOA youth program and the
Department recognizes such a shift will
require additional technical assistance
and guidance, including assistance to
other youth-serving programs. This
section also describes that the minimum
75 percent OSY expenditure applies to
both local area funds and statewide
youth activities funds reserved by the
Governor. However, only those
statewide funds spent on direct services
to youth are subject to the OSY
expenditure requirement. Funds spent
on statewide youth activities that do not
provide direct services to youth, such as
most of the required statewide youth
activities listed in WIOA sec. 129(b)(1),
are not subject to the OSY expenditure
requirement. In addition, local area
administrative costs are not subject to
the 75 percent OSY minimum
expenditure. The OSY expenditure rate
is calculated for statewide funds after
subtracting out funds that are not spent
on direct services to youth. The OSY
expenditure rate is calculated for local
area funds after subtracting the funds
spent on administrative costs. For
example, if a local area receives $1
million and spends $100,000 on
administrative costs, the remaining
$900,000 is subject to the OSY
expenditure rate. In this example, the
local area would be required to spend at
least $675,000 (75 percent) of the
$900,000 on OSY.
This section also clarifies the
guidelines by which a State that
receives a minimum allotment under
WIOA sec. 127(b)(1) or under WIOA sec.
132(b)(1) may request an exception to
decrease the expenditure percentage to
not less than 50 percent. The OSY
exception language at WIOA sec.
129(a)(4)(B) references sec.
127(b)(1)(C)(iv) and sec. 132(b)(1)(B)(iv),
which includes States that receive 90
percent of the allotment percentage for
the preceding year under the youth or
adult formula programs (WIOA secs.
127(b)(1)(C)(iv)(I) and 132(b)(1)(B)(iv)(I))
and States that receive the small State
minimum allotment under either
program (WIOA secs. 127(b)(1)(C)(iv)(II)
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and 132(b)(1)(B)(iv)(II)). Under WIA this
exception was only available to States
receiving the small State minimum
allotment, and no State submitted a
request for the exception. The
Department proposes to limit the
approval of requests described in WIOA
sec. 129(a)(4)(B) to only those States that
receive the small State minimum
allotment under WIOA secs.
127(b)(1)(C)(iv)(II) and
132(b)(1)(B)(iv)(II). Thus, requests to
decrease the percentage of funds to be
used to provide activities to OSY will
not be granted to States based on their
having received 90 percent of the
allotment percentage for the preceding
year. When the Secretary receives such
a request from a State based on having
received 90 percent of the allotment
percentage for the preceding year, the
request will be denied without the
Secretary exercising further discretion.
While the list of States receiving the
small State minimum allotment is
generally consistent, there is an almost
complete yearly turnover of the States
receiving the 90 percent minimum
allotment. Given this continuous
turnover, approving a request from these
States for an exception to the 75 percent
expenditure requirement would cause
significant disruption in the operation
of local youth programs. In particular,
States and local areas would be unable
to develop and implement long-term
service delivery strategies and plans and
would be unable to establish the
appropriate infrastructure necessary to
meet the 75 percent expenditure
requirement. These disruptions would
adversely affect the quality of services
that could be delivered to youth
program participants, particularly OSY,
thereby undermining one of the most
significant changes in priorities from
WIA to WIOA. Given the disruption and
harm that would result from approving
requests from States receiving the 90
percent minimum allotment for an
exception to the 75 percent expenditure
requirement, the Department proposes
to limit the approval of this exception
to States receiving the small State
minimum allotment.
Even in those States receiving a small
State minimum allotment, it will be
very difficult for a State to make an
affirmative determination that, after
analysis of the local area’s youth
population, the local area ‘‘will not be
able’’ to use 75 percent of its funds for
OSY, which is a required element of any
request.
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Section 681.420 How must Local
Boards design Workforce Innovation
and Opportunity Act youth programs?
This proposed section describes the
framework for the WIOA youth program
design. The framework includes an
objective assessment; an individual
service strategy, which programs must
update as needed to ensure progression
through the program; and general case
management; and follow-up services
that lead toward successful outcomes
for WIOA youth program participants.
WIOA makes two significant changes to
WIA’s requirements for service
strategies. One is that the service
strategy must be linked to one or more
of the indicators of performance in
WIOA sec. 116(b)(2)(A)(ii). The other is
that the service strategy must identify
career pathways that include
appropriate education and employment
goals. For both objective assessment and
individual service strategy, programs
may use recently completed
assessments or service strategies
conducted by another education or
training program rather than create new
assessments or service strategies if they
determine it is appropriate to do so.
This proposed section also describes
the requirement that Local Boards must
link to youth-serving agencies and adds
local human services agencies to the list
that WIA required. It provides that Local
Boards must provide eligible youth with
information about the full array of
applicable or appropriate services
available through the Local Board or
other eligible providers, or one-stop
partners. It also provides that Local
Boards must refer eligible youth to
appropriate services that have the
capacity to serve them on a concurrent
or sequential basis. The proposed
section also provides that eligible
providers must refer youth who either
do not meet the enrollment
requirements for that program or cannot
be served by that program for further
assessment, if necessary, or to
appropriate programs to meet the skills
and training needs of the participant.
Local Boards must also involve specific
members of the community, including
parents and youth participants, in
designing and implementing the WIOA
youth program.
A new provision in WIOA allows the
Local Board to use up to 10 percent of
their funds to implement pay-forperformance contracts for the program
elements described in § 681.460. Payfor-performance contracts are further
described in § 683.500.
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Section 681.430 May youth participate
in both the Workforce Innovation and
Opportunity Act youth and adult
programs concurrently, and how do
local program operators track
concurrent enrollment in the Workforce
Innovation and Opportunity Act youth
and adult programs?
unsubsidized employment. While there
is no minimum or maximum time a
youth can participate in the WIOA
youth program, programs must link
program participation to a participant’s
individual service strategy and not the
timing of youth service provider
contracts or PYs.
This proposed section provides that
youth may participate in both the WIOA
youth program and the adult program at
the same time if they are eligible for
both and it is appropriate. If such
concurrent enrollment occurs, local
programs must track expenditures
separately by program. This section
eliminated the reference, included in
the WIA regulations, to concurrent
enrollment in the dislocated worker
program because any youth meeting
eligibility for the dislocated worker
program would have already
successfully attained a job and would
most likely be more appropriately
served under the dislocated worker
program. The section also provides that
youth who are eligible under both
programs may enroll concurrently in
WIOA title I and II programs.
Section 681.460 What services must
local programs offer to youth
participants?
This proposed section lists the 14
program elements, including 5 new
youth program elements in WIOA sec.
129(c)(2) that were not included under
WIA. These new elements are (1)
education offered concurrently with and
in the same context as workforce
preparation activities and training for a
specific occupation or occupational
cluster; (2) financial literacy education;
(3) entrepreneurial skills training; (4)
services that provide labor market and
employment information about indemand industry sectors or occupations
available in the local area, such as
career awareness, career counseling, and
career exploration services; and (5)
activities that help youth prepare for
and transition to post-secondary
education and training. In addition,
WIOA has revised some of the WIA
program elements. For example, the
element on tutoring, study skills
training, instruction leading to the
completion of secondary school,
including dropout prevention strategies,
has been revised to provide that the
dropout prevention (and recovery)
strategies must be evidence-based and to
make clear that the completion of
secondary school can be accomplished
by attainment of a secondary school
diploma or its recognized equivalent,
including a certificate of attendance or
similar document for individuals with
disabilities. This change is consistent
with WIOA’s emphasis on evidencebased programs. WIOA also combines
the two WIA elements of summer youth
employment programs and work
experiences so that summer youth
employment programs become one item
in a list of work experiences and adds
pre-apprenticeship programs to the list
of work experiences. Finally, WIOA
expands the description of the
occupational skill training element to
provide for priority consideration for
training programs that lead to
recognized post-secondary credentials
that are aligned with in-demand
industry sectors or occupations if the
programs meet WIOA’s quality criteria.
This change is consistent with WIOA’s
increased emphasis on credential
attainment. The section clarifies that
while local WIOA youth programs must
Section 681.440 How does a local
youth program determine if an 18 to 24
year old is enrolled in the Workforce
Innovation and Opportunity Act youth
program or Workforce Innovation and
Opportunity Act adult program?
Individuals aged 18 to 24 are eligible
for the WIOA adult and youth programs
and local areas must determine whether
to serve such individuals in the youth
program, adult program, or both. This
proposed section provides that a local
youth program must determine whether
to enroll an 18 to 24 year old in the
youth program or adult program based
on the individual’s career readiness as
determined through an objective
assessment.
Section 681.450 For how long must a
local Workforce Innovation and
Opportunity Act youth program serve a
participant?
The Department proposes this new
section because the Department’s
monitoring of local areas commonly
found WIA youth were exited before
successfully completing the program
due to artificial time constraints or the
ending of youth service provider
contracts. In order to ensure that youth
are not prematurely exited from the
WIOA youth program, the Department
proposes that youth programs serve
participants for the amount of time
necessary to ensure they are
successfully prepared to enter postsecondary education and/or
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make all 14 program elements available
to WIOA youth participants, local
programs have the discretion to
determine which elements to provide to
a participant based on the participant’s
assessment and individual service
strategy.
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Section 681.470 Does the Department
require local programs to use Workforce
Innovation and Opportunity Act funds
for each of the 14 program elements?
This proposed section clarifies that
local WIOA youth programs must make
all 14 program elements available to
youth participants, but not all services
must be funded with WIOA youth
funds. Local programs may leverage
partner resources to provide program
elements that are available in the local
area. If a local program does not fund an
activity with WIOA title I youth funds,
the local area must have an agreement
in place with the partner to offer the
program element and ensure that the
activity is closely connected and
coordinated with the WIOA youth
program if enrolled youth participate in
the program element. By closely
connected and coordinated, the
Department means that case managers
must contact and monitor the provider
of the non-WIOA-funded activity to
ensure the activity is of high quality and
beneficial to the youth participant.
Section 681.480 What is a preapprenticeship program?
This proposed section defines a preapprenticeship program, which is one of
the types of work experiences listed
under WIOA sec. 129(c)(2)(C). The
reference to pre-apprenticeship
programs is new in WIOA. The
definition is based on TEN No. 13–12
that defined a quality preapprenticeship program. Local youth
programs must coordinate preapprenticeship programs to the
maximum extent feasible with
registered apprenticeship programs,
which are defined in WIOA sec.
171(b)(10), and require at least one
documented partnership with a
registered apprenticeship program.
Quality pre-apprenticeship programs
play a valuable role in preparing
entrants for registered apprenticeship
and contribute to the development of a
diverse and skilled workforce. Preapprenticeship programs can be adapted
to meet the needs of participants, the
various employers and sponsors they
serve, and the specific employment
opportunities available in a local labor
market. Pre-apprenticeship training
programs have successfully
demonstrated that obstacles such as low
math skills, poor work habits, lack of
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access to transportation, and lack of
knowledge of sector opportunities can
be overcome when coordinated training
and support is provided to workers.
the local youth program must
coordinate with the organization it
refers to in order to ensure continuity of
service.
Section 681.490 What is adult
mentoring?
This proposed section describes the
adult mentoring program element. It
provides that mentoring must last at
least 12 months and defines the
mentoring relationship. It clarifies that
mentoring must be provided by an adult
other than the WIOA youth participant’s
assigned case manager since mentoring
is above and beyond typical case
management services. Mentoring may
take many forms, but at a minimum
must include a youth participant
matched with an individual adult
mentor other than the participant’s case
manager. Mentoring services may
include group mentoring, mentoring via
electronic means, and other forms as
long as it also includes individual
mentoring from an assigned mentor.
Local programs should use evidencebased models of mentoring to design
their programs. The Department
recommends that programs provide
rigorous screening, training, and match
support for mentors, and frequent
contact with youth and parents as the
match progresses.
Section 681.520 What are leadership
development opportunities?
Section 681.500 What is financial
literacy education?
This proposed section describes the
financial literacy program element, new
under WIOA. Financial literacy is
described in the allowable statewide
youth activities in WIOA sec.
129(b)(2)(D) and the proposed section
reiterates what was stated in the
allowable statewide activities section of
supporting financial literacy. The
Department has added an element on
informing participants about identity
theft to the list in WIOA sec.
129(b)(2)(D). The Department recognizes
the importance of equipping workers
with the knowledge and skills they need
to achieve long-term financial stability
and solicits comments on how best to
achieve this goal.
Section 681.510 What is
comprehensive guidance and
counseling?
This proposed section describes the
types of guidance and counseling
services that fall under the program
element comprehensive guidance and
counseling, which includes referral to
services provided by partner programs,
as appropriate. When referring
participants to necessary counseling
that cannot be provided by the local
youth program or its service providers,
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This proposed section includes all of
the examples of leadership development
opportunities included in WIA
regulations and adds two new examples
of appropriate leadership development
opportunities that a local area may
consider when providing leadership
development opportunities. One new
example is civic engagement activities;
the other is activities which put the
youth in a leadership role.
Section 681.530 What are positive
social and civic behaviors?
While WIA included positive social
behaviors as part of the description of
leadership development opportunities,
WIOA adds ‘‘civic behaviors’’ to the
description of the leadership
development program element. This
proposed section expands the examples
of positive social behaviors to include
keeping informed of community affairs
and current events.
Section 681.540
skills training?
What is occupational
This proposed section provides a
definition for the occupational skills
training program element. It was not
previously defined under WIA. WIOA
sec. 129(c)(2)(D) further sharpens the
focus on occupational skills training by
requiring local areas to give priority
consideration for training programs that
lead to recognized post-secondary
credentials that align with in-demand
industries or occupations in the local
area. The Department interprets this
requirement to mean that when seeking
occupational skills training for a
participant, local areas must first seek
training programs that lead to
recognized post-secondary credentials
in in-demand industries or occupations
and only if none are available should
they refer a participant to a training
program that does not lead to a
recognized post-secondary credential.
The Department has further defined this
priority by requiring that such training
be outcome oriented and focused on an
occupational goal in a participant’s
individual service strategy and that it be
of sufficient duration to impart the skills
needed to meet that occupational goal.
In all cases, local areas must ensure that
the training program meets the quality
standards in WIOA sec. 123.
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Section 681.550 Are Individual
Training Accounts permitted for youth
participants?
Prior WIA regulations provide that
ITAs are not an authorized use of youth
funds. However, more than 30 States
received waivers under WIA to use ITAs
for older and OSY to: (1) Expand
training options; (2) increase program
flexibility; (3) enhance customer choice;
and (4) reduce tracking, reporting and
paperwork that comes with dual
enrollment. ITAs have therefore become
a critical component in WIA to provide
training services to older and OSY.
WIOA is silent on the use of ITAs for
youth participants.
This proposed section allows ITAs for
older OSY aged 18 to 24. This change
will enhance individual participant
choice in their education and training
plans and provide flexibility to service
providers. ITAs also reduce the burden
for local areas by eliminating
duplicative paperwork needed for
enrolling older youth in both youth and
adult formula programs. ITAs will
benefit disconnected youth and
reinforce WIOA’s emphasis on
increasing access to and opportunities
for workforce investment services for
this population. To the extent possible,
local programs must ensure that youth
participants are involved in the
selection of their educational and
training activities. The Department
welcomes comments on the proposed
allowance of ITAs for older OSY.
Section 681.560 What is
entrepreneurial skills training and how
is it taught?
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This proposed section defines
entrepreneurial skills training, a new
program element under WIOA. While
entrepreneurial skills training was
previously listed as an example of a
work experience in WIA, under WIOA
it is a separate program element. The
Department has also provided a list of
possible methods of teaching youth
entrepreneurial skills training. The
Department is specifically seeking
comments from stakeholders around
developmentally appropriate types and
methods of teaching entrepreneurial
skills.
Section 681.570 What are supportive
services for youth?
This proposed section lists examples
of supportive services for youth and
includes two additional examples
which were not listed in WIA youth
regulations. Needs-related payments
were listed as an example of an adult
supportive service under WIA and also
can be critical to youth living on their
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own who participate in a youth
program. WIOA lists needs-related
payments as a supportive service at sec.
3(59). In addition, the Department lists
assistance with educational testing and
accommodations as examples because
they are prime example of services that
can be necessary to enable an individual
to participate in activities authorized by
WIOA. For example, assistance with
educational testing can provide OSY
with the opportunity to take high school
equivalency tests, as well as other
exams for occupational certifications
and credentials, while accommodations
may be necessary for youth with
disabilities to participate in certain
assessments and to have equal access
and opportunity to participate in a
variety of work-based learning activities.
Section 681.580 What are follow-up
services for youth?
This proposed section discusses the
importance of follow-up services and
lists examples of follow-up services for
youth, which WIOA requires be
provided for a minimum of 12 months.
It clarifies that follow-up services may
be different for each individual based on
his or her individual needs. It also
clarifies that follow-up services are
more than a contact attempted or made
to gather information for reporting
purposes because follow-up services
provide the necessary support to ensure
the success of youth post-program.
Therefore, to meet follow-up
requirements, programs must do more
than just make an attempt to contact to
gather reporting information. The
Department seeks comments on whether
this section includes reasonable
requirements for follow-up services.
Section 681.590 What is the work
experience priority?
The proposed section discusses the 20
percent minimum expenditure
requirement on the work experience
program element in WIOA sec.
129(c)(4). Work experience is a critical
WIOA youth program element, arguably
the most important program element as
signaled by the minimum expenditure
requirement. Work experience helps
youth understand proper workplace
behavior and what is necessary in order
to attain and retain employment. Work
experience can serve as a stepping stone
to unsubsidized employment and is an
important step in the process of
developing a career pathway for youth.
Research shows work experience is
correlated with higher high school
graduation rates and success in the labor
market. This is particularly important
for youth with disabilities.
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Section 681.600
experiences?
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What are work
The proposed section defines the
work experience program element using
language similar to the corresponding
WIA regulation and includes the four
work experience categories listed in
WIOA sec. 129(c)(2)(C). In addition, the
section eliminates the language under
the corresponding WIA rule that OJT is
not an appropriate work experience
activity for youth. WIOA sec.
129(c)(2)(C)(4) explicitly enumerates
OJT opportunities as one type of work
experience.
Work experiences are designed to
enable youth to gain exposure to the
working world and its requirements.
Work experiences should help youth
acquire the personal attributes,
knowledge, and skills needed to obtain
a job and advance in employment.
Section 681.610 How will local
Workforce Innovation and Opportunity
Act youth programs track the work
experience priority?
This proposed section discusses the
new requirement under WIOA that a
local youth program must use not less
than 20 percent of the funds allocated
to the local area to provide youth
participants, both ISY and OSY, with
paid and unpaid work experiences. In
order to ensure that local WIOA youth
programs meet this requirement, the
Department proposes that local WIOA
youth programs track program funds
spent on paid and unpaid work
experiences and report such
expenditures as part of the local WIOA
youth financial reporting. Program
expenditures on the work experience
program element include wages as well
as staffing costs for the development
and management of work experiences.
Like the 75 percent OSY expenditure
requirement, local area administrative
costs are not subject to the 20 percent
minimum work experience expenditure
requirement. The work experience
expenditure rate is calculated for local
area funds after subtracting out funds
spent on administrative costs and is
calculated based on remaining total
local area youth funds rather than
calculated separately for in-school and
OSY.
Section 681.620 Does the Workforce
Innovation and Opportunity Act require
Local Boards to offer summer
employment opportunities in the local
youth program?
Under WIOA sec. 129(c)(2)(C),
summer employment opportunities are
one of four suggested components of the
paid and unpaid work experiences
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program element. While local WIOA
youth programs must provide paid and
unpaid work experiences, they may take
the form of a number of activities
including: summer employment
opportunities and employment
opportunities available throughout the
year, pre-apprenticeship programs,
internships and job shadowing, and
OJT. While summer employment
opportunities are an allowable activity
and a type of work experience that
counts toward the work experience
priority (which requires a minimum of
20 percent of funds allocated to a local
area are spent on work experience) they
are not a required program element as
they previously were under WIA.
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Section 681.630 How are summer
employment opportunities
administered?
Local areas must adhere to the
provisions outlined in WIOA sec. 123
for selecting service providers when
administering summer employment
opportunities. This proposed section
discusses that WIOA requires local areas
to identify youth providers of youth
workforce investment activities,
including work experiences such as
summer employment opportunities, by
awarding grants or contracts on a
competitive basis. As provided in WIOA
sec. 123, if there is an insufficient
number of eligible providers of youth
workforce investment activities, Local
Boards may award grants or contracts on
a sole source basis. This section also
clarifies that the summer employment
administrator does not need to select the
employers who are providing the
employment opportunities through a
competitive process.
Section 681.640 What does education
offered concurrently with and in the
same context as workforce preparation
activities and training for a specific
occupation or occupational cluster
mean?
This proposed section describes the
new program element at WIOA sec.
129(c)(2)(E): ‘‘education offered
concurrently and in the same context as
workforce preparation activities and
training for a specific occupation or
occupational cluster.’’ The new program
element requires integrated education
and training to occur concurrently and
contextually with workforce preparation
activities and workforce training for a
specific occupation or occupational
cluster for the purpose of educational
and career advancement. Youth
participants will not be required to
master basic academic skills before
moving on to learning career-specific
technical skills. This approach aligns
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with recent research which found
students using an integrated education
and training model had better rates of
program completion and persistence
than a comparison group (Jenkins 2009).
Section 681.650 Does the Department
allow incentive payments for youth
participants?
This proposed section clarifies that
incentives under the WIOA youth
program are permitted. The Department
has included the reference to 2 CFR 200
to emphasize that while incentive
payments are allowable under WIOA,
the incentives must be in compliance
with the requirements in 2 CFR part
200. This is not a change; under WIA,
incentives must have followed the
Uniform Administrative Requirements
at 29 CFR parts 95 and 97 and the cost
principles at 2 CFR parts 220, 225, and
230. The Uniform Administrative
Requirements were recently
consolidated into 2 CFR part 200. For
example, under 2 CFR part 200, Federal
funds may not be spent on
entertainment costs. Therefore,
incentives may not include
entertainment, such as movie or
sporting event tickets or gift cards to
movie theaters or other venues whose
sole purpose is entertainment.
Additionally, under 2 CFR part 200,
there are requirements related to
internal controls to safeguard cash
which also apply to safeguarding of gift
cards, which are essentially cash.
Section 681.660 How can parents,
youth, and other members of the
community get involved in the design
and implementation of local youth
programs?
This proposed section discusses the
requirement in WIOA sec. 129(c)(3)(C)
for the involvement of parents,
participants, and community members
in the design and implementation of the
WIOA youth program and provides
examples of the type of involvement
that would be beneficial. The
Department has also included in this
proposed section the requirement in
WIOA sec. 129(c)(8) that Local Boards
must also make opportunities available
to successful participants to volunteer to
help participants as mentors, tutors, or
in other activities.
5. Subpart D—One-Stop Services to
Youth
Section 681.700 What is the
connection between the youth program
and the one-stop service delivery
system?
This proposed section reiterates the
connections between the youth program
and the one-stop system that were
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provided in the WIA regulations and
includes additional examples of such
connections including collocating
WIOA youth program staff at one-stop
centers and/or equipping one-stop
centers and staff with the information
necessary to advise youth on
programming to best fit their needs. The
intent behind this section is to
encourage staff working with youth
under titles I, II, and IV of WIOA to
coordinate better services for youth.
This could include youth-focused onestop centers in locations where youth
tend to gather and making one-stops
more accessible to youth.
Section 681.710 Do Local Boards have
the flexibility to offer services to area
youth who are not eligible under the
youth program through the one-stop
centers?
Consistent with WIA, this proposed
section clarifies that Local Boards may
provide services to youth through onestop career centers even if the youth are
not eligible for the WIOA youth
program.
F. Part 682—Statewide Activities Under
Title I of the Workforce Innovation and
Opportunity Act
1. Introduction
WIOA provides a reservation of funds
for employment and training activities
to be undertaken on a statewide basis.
These activities are undertaken by the
States, rather than by Local Boards.
WIOA requires States to undertake
certain statewide activities, but
authorizes States to undertake a much
wider range of activities. These required
and allowable activities are addressed
by this part of the proposed regulations.
WIOA designates the percentage of
funds that may be devoted to these
activities from annual allotments to the
States—up to 15 percent must be
reserved from youth, adult, and
dislocated worker funding streams, and
up to an additional 25 percent of
dislocated worker funds must be
reserved for statewide rapid response
activities.
The up to 15 percent funds from the
three funding streams may be expended
on employment and training activities
without regard to the source of the
funding. For example, funds reserved
from the adult funding stream may be
used to carry out statewide youth
activities and vice versa. These funds
must be used for certain specified
activities, such as for State evaluations
and for provision of data for Federal
evaluations and research. If funds
permit, States have authority to provide
a variety of other activities. State set-
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aside funds allow States to continually
improve their comprehensive workforce
programs, ensure a national system that
meets the needs of job seekers, workers
and employers, and contribute to
building a body of evidence to improve
the effectiveness of services under
WIOA.
2. Subpart A—General Description
This subpart describes what is
encompassed by the term ‘‘statewide
employment and training activities.’’ It
explains that States have both required
and allowable activities to be
undertaken on a statewide basis for
adults, dislocated workers and youth.
States have significant flexibility in the
development of policies and strategies
for the use of their statewide funds.
Section 682.100 What are the
statewide employment and training
activities under title I of the Workforce
Innovation and Opportunity Act?
Proposed § 682.100 provides that
there are both required and allowable
statewide employment and training
activities. States may use up to 15
percent of adult, youth and dislocated
worker funds for statewide activities
relating to youth, adult, dislocated
workers. The States are encouraged to
develop policies and strategies for
utilizing these funds, and must include
descriptions of these activities in their
State Plan.
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Section 682.110 How are statewide
employment and training activities
funded?
Proposed § 682.110 does not change
how statewide employment and training
activities from how such activities were
funded under WIA. The Governor has
authority to use up to 15 percent of the
adult, dislocated worker, and youth
funds allocated to the State for
statewide activities. The regulation
provides that the adult, dislocated
worker and youth 15 percent funds may
be combined for use on required or
allowed statewide activities regardless
of the funding source.
3. Subpart B—Required and Allowable
Statewide Employment and Training
Activities
This subpart first discusses required
statewide activities. WIOA continues
the activities that were required under
WIA, but adds several additional
required activities, such as assistance to
State entities and agencies described in
the State Plan, alignment of data
systems, regional planning,
implementation of industry or sector
partnerships, and cooperation in
providing data for Federal evaluation
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and research projects. Required
statewide activities under WIA and
continued under WIOA include:
Outreach to businesses, dissemination
of information on the performance and
cost of attendance for programs offered
by ETPs, and conducting evaluations.
This subpart also discusses allowable
statewide activities. The Department
provides States with a significant
amount of flexibility in how these funds
may be used for statewide activities.
States can test and develop promising
strategies. This regulation is not
designed to be an exhaustive list, but
more illustrative of the types of
allowable statewide activities that may
be provided with these funds.
Section 682.200 What are required
statewide employment and training
activities?
Proposed § 682.200(a) explains that
rapid response activities are a required
statewide employment and training
activity, as described in § 682.310.
Proposed § 682.200(b) explains the
different types of information States are
required to disseminate to the workforce
system, including ETPLs, providers of
work-based training providers, business
partnership and outreach information,
promising service delivery strategies,
performance information about training
providers, eligible providers of youth
activities, and information about
physical and programmatic accessibility
for individuals with disabilities.
Proposed § 682.200(c) states that the
information listed in § 682.200(b) be
made widely available. It explains that
this may be achieved by various means,
including posting information on State
Web sites, physical and electronic
handouts for dissemination to one-stop
centers, and other appropriate means of
sharing information.
Proposed § 682.200(d) explains that
under WIOA sec. 134(a)(2)(B)(vi), States
are required to use the 15 percent set
aside to conduct evaluations in
accordance with WIOA sec. 116(e)
whose requirements are implemented in
§ 682.220.
Proposed § 682.200(e) requires States
to provide technical assistance to local
areas in carrying out activities described
in the State Plan.
Proposed § 682.200(f) requires States
to assist local areas, one-stop operators,
and eligibile providers in providing
opportunities for individuals with
barriers to employment to enter indemend industry sectors, and
developing exemplary program
activities.
Proposed § 682.200(g) and (h) require
States to assit local areas carry out the
regional planning and service delivery
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efforts, and provide local areas
information on and support for the
effective development, convening, and
implementation of industry and sector
partnerships.
Proposed § 682.200(i) requires the
States to provide technical assistance to
local areas that fail to meet their
performance goals.
Proposed § 682.200(j) requires the
State to carry out monitoring and
oversight activities of the programs
providing services to youth, adults and
dislocated workers in WIOA. Under this
authority, States may conduct reviews
that compare services provided to male
and female youth.
Proposed § 682.200(k) clarifies that
States may provide additional assistance
to local areas that have high
concentrations of eligible youth to
ensure a transition to education or
unsubsidized employment.
Proposed § 682.200(l) requires States
to operate a fiscal and management
accountability system. This system is
vital to ensure high levels in integrity of
managing Federal funds and conveying
important information on the services
being provided to job seekers and
employers. As required by WIOA, the
Department will consult with a wide
range of stakeholders to establish
guidelines for this system (see WIOA
sec. 116(i)(1)).
Section 682.210 What are allowable
statewide employment and training
activities?
In addition to the required statewide
activities, States are provided with
significant flexibility to innovate within
the workforce system with various
allowable statewide employment and
training activities. These allowable
activities are vital to ensuring a high
quality workforce system, and can be
used to ensure continuous improvement
throughout the system. This regulation
is not designed to be an exhaustive list,
but more illustrative of the types of
allowable statewide activities that may
be provided with these funds.
Proposed § 682.210(a) provides that
State administration of the adult,
dislocated worker, and youth
employment and training activities is an
allowable statewide employment and
training activity. This proposed section
maintains the same 5 percent
administrative cost limit that existed
under WIA and clarifies that the 5
percent is calculated based on the total
allotment received by the State and
counts towards the amount reserved for
statewide activities.
Proposed § 682.210(b) permits States
to use WIOA funds to develop and
implement innovative programs and
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strategies designed to meet employer
needs, including small business needs.
The workforce system provides services
to dual customers—the job seeker and
the employer. The Department values
ways in which States can engage
businesses with all levels of the
workforce system. Under this section,
States have authority to carry out a
variety of programs identified in WIOA
sec. 134(a)(3)(A)(i), such as sectoral and
industry cluster strategies,
microenterprise and entrepreneurial
training, and utilization of business
intermediaries.
Proposed § 682.210(c) permits States
to develop and implement strategies for
serving individuals with barriers to
employment and encourages States to
partner with other agencies to
coordinate services among all the onestop partners.
Proposed § 682.210(d) and (e) allow
the development and identification of
education and training programs that
respond to real-time labor market
analysis, that allow for use of direct or
prior assessments, and that provide
credit for prior learning, or which have
other characteristics identified in WIOA
sec. 134(a)(3)(A)(iii). States can also use
these funds to increase training for
individuals placed in non-traditional
employment.
Proposed § 682.210(f) permits States
to undertake research and
demonstrations related to meeting the
education and employment needs of
youth, adults and dislocated workers, as
stated in WIOA secs. 129(b)(2)(A)(i) and
(ii) and sec. 134(a)(3)(A)(ix).
Proposed § 682.210(g) provides that
States may utilize statewide funds to
support the development of alternative,
evidence-based programs, and other
activities which increase the choices
available to eligible youth and
encourage them to reenter and complete
secondary education, enroll in postsecondary education and advanced
training, progress through a career
pathway, and/or enter unsubsidized
employment that leads to economic selfsufficiency.
Proposed § 682.210(h) provides that
States may utilize statewide funds to
support the provision of career services
throughout the one-stop delivery system
in the State.
Proposed § 682.210(i) provides that
States may incorporate a variety of
financial literacy identified in WIOA
sec. 129(b)(23)(D) activities into the
service delivery strategy within the onestop delivery system. Financial literacy
activities are important services for job
seekers to receive as part of their career
services. The Department encourages
States to develop and implement
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strategies for local areas to utilize to
coordinate financial literacy services to
participants under this authority and to
provide financial literacy activities to
youth under § 682.210(i).
Proposed § 682.210(j) allows for States
to provide incentive grants to local areas
for reaching performance goals.
Incentive grants can be an effective way
to develop and maintain a culture of
continuous improvement throughout
the workforce system.
Proposed § 682.210(k) allows for
States to provide technical assistance to
local areas, CEOs, one-stop operators,
one-stop partners, and eligible providers
in local areas for the development of
exemplary program activities and the
provision of technology to facilitate
remote access to services provided
through the one-stop delivery system in
the State (WIOA sec. 129(b)(2)(E));
Proposed § 682.210(l) allows States to
provide technical assistance to local
areas using pay-for-performance
contract strategies. Under WIOA, payfor-performance is an allowable use of
funds that could potentially be an
effective mechanism to improve
participant outcomes. Technical
assistance will be of vital importance to
ensure these strategies are being
implemented effectively. Under this
authority, such technical assistance may
include providing assistance with data
collections, meeting data entry
requirements, identifying levels of
performance, and conducting
evaluations of pay-for-performance
strategies.
Proposed § 682.210(m) allows for
States to utilize technology to allow for
remote access to training services
provided through the one-stop delivery
system. The Department recognizes that
there are many different means by
which individuals may get training and
that the use of technology may be
particularly helpful to participants in
rural areas. The Department encourages
States to develop and build upon
strategies that enable job seekers to
connect with the workforce system
remotely.
Proposed § 682.210(n) allows States to
conduct activities that increase
coordination between workforce
investment activities and economic
development approaches. This proposed
regulation also allows States to
undertake activities that provide
coordination with services provided by
other agencies, such as child support
services and assistance (provided by
State and local agencies carrying out
part D of title IV of the SSA (42 U.S.C.
651 et seq.)), cooperative extension
programs (carried out by the Department
of Agriculture), programs in the local
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areas for individuals with disabilities
(including the programs identified in
WIOA sec. 134(a)(3)(A)(viii)(II)(cc)),
adult education and literacy activities
including those carried out by public
libraries, and activities in the
corrections system to connect exoffenders reentering the workforce. The
Department strongly encourages States
to engage in these coordination
activities. States are also encouraged to
use funds to develop and disseminate
workforce and labor market information
(WLMI).
Proposed § 682.210(o) allows States to
implement promising practices for
workers and businesses as described in
WIOA sec. 134(a)(3)(A).
Proposed § 682.210(p) allows States to
develop economic self-sufficiency
standards that specify the income needs
of families, including the number and
ages of children. The Department
recognizes that different regions in a
State may have different levels of selfsufficiency; therefore the proposed
regulation allows for States to take
geographical considerations into
account in developing self-sufficiency
standards.
Proposed § 682.210(q) allows States to
develop and disseminate common
intake procedures across core and
partner programs, including common
registration procedures. The Department
strongly encourages States to utilize this
approach in a customer-focused way. By
developing common procedures onestop staff can reduce duplication and
enhance the job seeker experience in the
workforce system.
Proposed § 682.210(r) encourages
coordinating activities with the child
welfare system to facilitate provision of
services to children and youth who are
eligible for assistance.
Section 682.220 What are States’
responsibilities in regard to evaluations
and research?
The Department proposes to add rules
on new State responsibilities and
opportunities in regard to evaluation
and research under WIOA sec. 116(e).
State and Federal evaluations and
research are intended to improve the
quality and effectiveness of programs
under WIOA, and contribute to an
expanding body of knowledge on
customers, their needs, existing
services, and innovative approaches.
Examples of the strategies that might be
explored in evaluation and research
include, but are not limited to,
interventions envisioned in WIOA itself,
such as integrated systems, coordinated
services, career pathways, and multiple
forms of engagement with businesses.
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WIOA continues the long-standing
support of evaluation and research
found in prior law, but strengthens it in
several ways, including permitting
States to evaluate activities under all of
the title I–IV core programs, including
adult education and vocational
education, and permitting the use of
funds from any of these programs for
evaluations. WIOA expands
coordination and the consultative
process regarding evaluations and
research beyond the workforce system
to State agencies for the other core
programs. Further, WIOA now also
requires States to coordinate their own
studies with evaluations and research
projects undertaken by the Departments
of Labor and Education, as well as to
cooperate in provision of data and
information for such Federal
evaluations.
Provisions on the Department’s role in
evaluation and research, now found
under WIOA sec. 169 (corresponding to
secs. 171 and 172 in WIA), authorize a
wide array of studies. Evaluation and
research projects, permissible under
WIOA sec. 169 include process and
outcome studies, pilot and
demonstration projects, analyses of
programmatic and economic data,
impact and benefit-cost analyses, and
use of rigorous designs to test the
efficacy of various interventions, such
as random assignment. WIOA also
implies that State evaluations are
synonymous with multiple forms of
research to test various interventions
and to examine program services and
outcomes in greater depth and over a
longer time frame than is typically done
for performance accountability purposes
for State and local programs.
Section 169 also includes numerous
examples of studies to be conducted in
collaboration with other Federal
Departments. WIOA sec. 169 also
requires several research projects
(evaluations of title I programs, a study
of career pathways in health and child
care, and research on equivalent pay),
suggests seven research projects
(relating to disconnected youth,
business needs, nontraditional
occupations, performance indicators,
public housing assistance recipients,
older workers, and credentials for prior
learning), and permits studies of
Federally-funded employment-related
programs and activities under ‘‘other
provisions of law.’’ An evaluation of Job
Corp is also required under WIOA sec.
161.
WIOA recognizes in sec. 116(e) the
vital role of States in providing various
forms of quantitative and qualitative
data and information for Federal
evaluations and research. Data, survey
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responses, and site visit information,
from both the State and local levels are
essential in Federal research designed to
understand and evaluate various
existing systems and services as well as
new interventions. All of these forms of
data and information are needed to
understand key participant
characteristics, labor market outcomes,
the role of decision-makers, how
faithfully interventions are
implemented, and the quality of the
customer experience. Further, there are
multiple potential data sources which
could include, for example, UI
administrative data and wage records,
data from other workforce programs,
various documents, and individual or
focus group interviews with State
officials, local program staff and
customers.
To assure that data are consistently
available from all States, the rules
emphasize the need for States to
cooperate, to the extent practicable, in
data collection activities for evaluations
conducted by the Departments of Labor
and Education, as related to services
under WIOA and to other employmentrelated programs and activities. The
rules also clarify the need for States to
provide data from sub-State level and
from State and local workforce boards
and, further, to encourage provision of
data by other partner programs. A
method for informing the Department
about possible problems in providing
the various forms of data and for
resolving such problems is also
proposed below.
Specifically, the rules include the
following:
Proposed § 682.220(a)(1) explains that
under WIOA secs. 116(e), 129(b)(1)(A)
and 134(a)(2)(B)(vi), States are required
to use funds reserved by the Governor
for statewide activities (the State setaside) to conduct evaluations of
activities of the core programs.
Paragraph (b)(1) requires States to
coordinate such evaluations with
Federal evaluation and research
activities under WIOA secs. 169 and
242(c)(2)(D) (regarding adult education),
under the Rehabilitation Act of 1973
and under the Wagner-Peyser Act [29
U.S.C. 49i(b)]. Paragraph (a) delineates
the role of evaluations and research in
promoting continuous improvement and
high performance in existing programs
and identifies an additional purpose of
evaluation activities: Testing innovative
services and strategies.
Proposed § 682.220(a)(2) clarifies that
the States may use set-aside funds to
conduct other research and
demonstration projects that relate to the
education and employment needs for
youth, adults and dislocated workers.
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Proposed § 682.220(a)(3) clarifies that
States may use funds from other WIOA
title II–IV core programs but only as
determined through the consultative
processes required with State and Local
Boards and agencies responsible for the
core programs as referenced in
paragraph (b)(1). Paragraph 682.220(e)
highlights the opportunity for States to
use and combine funds from other
sources (consistent with Federal and
State law, regulation, and guidance).
The sources might include other Federal
and State grants and contracts, as well
as private philanthropic or other
sources.
Proposed § 682.220(b) promotes State
efforts to conduct evaluations and
research, assure they relate to State
goals and strategies, and are coordinated
and designed in conjunction with State
and Local Boards and other agencies
responsible for the core programs. The
proposed rule also lists some key
features that States can include their
evaluations and research projects when
appropriate and feasible, not as a ‘‘onesize-fits-all’’ checklist of requirements
for every evaluation and research
project. As such, paragraphs (b)(2)
through (4) implement WIOA sec.
116(e), but qualifies the requirements
for States to include an analysis of
customer feedback and of outcome and
process measures when appropriate, to
coordinate with Federal evaluations to
the extent feasible, and to use the most
rigorous analytical and statistical
methods that are reasonably feasible.
Proposed § 682.220(c) implements
sec. 116(e)(3) of WIOA, which requires
States to share their evaluations with
the public, including through electronic
means, such as posting the results of all
types of research and evaluations that
States conduct on the relevant State
Web site.
Proposed § 682.220(d)(1) implements
sec. 116(e)(4) of WIOA, which requires
States to cooperate, to the extent
practicable, in providing data,
responding to surveys, and allowing site
visits in a timely manner for Federal
evaluation, research, and investigation
activities conducted by the Secretaries
of Labor and Education or their agents
under WIOA secs. 169 and 242, the
Rehabilitation Act of 1973, and the
Wagner-Peyser Act, as listed in
§ 682.200(d) and above. (The provision
of UI data for Federal evaluations and
research is subject to regulations found
in 20 CFR part 603.) The Department of
Labor intends to work with States and
the United States Census Bureau
(Census) to explore the potential to meet
the requirement that States provide UI
wage record data for Federal evaluations
and research using the wage record data
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States currently provide to Census for
the Longitudinal Employer-Household
Dynamics (LEHD) program. This
approach to provision of UI data may
reduce burden on State UI
infrastructure, while also making the
LEHD data set more useful to a broad
array of researchers. Since data and
survey responses from local subgrantees
and State and local workforce boards are
often critical in Federal evaluation and
research projects, the rule also requires
that States provide timely data and
survey responses from these entities and
that States assure that subgrantees and
boards allow timely site visits for
Federal evaluations. States are proposed
to assume these responsibilities because
of their relationship with and support of
the boards as well as their role in
overseeing the operation of subgrantees.
Since States do not set the requirements
for other one-stop partners, proposed
§ 682.220(d)(2) requires States to
encourage these partners to cooperate in
data provision for the relevant Federal
evaluations and research.
Proposed § 682.220(d)(3) requires a
Governor to inform the Secretary in
writing if a State finds that it is not
practicable to participate in timely
provision of data, survey responses and
site visits for Department of Labor or
Department of Education evaluations
and research, and, further, to explain
why it is not practicable for the State to
provide the requested information. This
explanation will help the Department to
work more effectively with the State to
accommodate its concerns and mitigate
or overcome any problems preventing
the State from providing the information
needed for Federal evaluations or
research conducted under the various
authorities cited in § 682.200(d).
Proposed § 665.220(e) provides that
States may use or combine funds,
consistent with Federal and State law,
regulation, and guidance, from other
public or private sources, to conduct
evaluations, research, and
demonstration projects relating to
activities under the WIOA title I–IV core
programs. The Department will provide
information, technical assistance, and
guidance to support States in
conducting their own evaluations and
research, at the highest levels of quality
and integrity, consistent with State goals
and priorities, and using methodologies
appropriate to the research objectives
and the funds available. The technical
assistance and guidance will also
address how States can coordinate with
studies conducted by the Departments
of Labor and Education under WIOA
and cooperate in providing data and
other information for such Federal
research.
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4. Subpart C—Rapid Response
Activities
Introduction
This subpart discusses the important
role that rapid response plays in
providing customer-focused services
both to dislocated workers and
employers, thereby ensuring immediate
access to affected workers to help them
quickly reenter the workforce. The
proposed regulations reflect the
Department’s experience in managing
the PYs and lessons learned from the
innovations and best practices of
various rapid response programs around
the country in planning for and meeting
the challenges posed by events
precipitating substantial increases in the
number of unemployed individuals in
States, regions and local areas. The
proposed regulations provide a
comprehensive framework for operating
successful rapid response programs in a
way that promotes innovation and
maintains flexibility to enable States to
successfully manage economic
transitions.
Section 134(a)(2) of WIOA authorizes
the use of reserved funds for statewide
activities to plan for and respond to
events that precipitate substantial
increases in the number of unemployed
individuals. Except for a new provision,
at sec. 134(a)(2)(A)(ii), that addresses
the use of unobligated funds for rapid
response activities, WIOA largely
replicates the language in sec. 134 of
WIA. The proposed regulations provide
additional, detailed direction regarding
required and optional rapid response
activities. The WIA regulations
concerning the rapid response program
provided substantial flexibility in
program design and implementation.
This flexibility allowed for customized
planning and responses based upon
specific factors in a given situation—an
important component to delivering
effective services. However, some States
and local operators did not understand
the full range of activities allowable
under the program. In crafting the
proposed regulations, the Department
has worked to maintain the same
flexibility that the current regulation
allows, while providing more detailed
information about appropriate activities,
such as layoff aversion, engaging
business, and illustrating how these
funds can be used.
Our proposed approach is based on
the premise that successful rapid
response programs are flexible, agile,
and focused on promptly delivering
comprehensive solutions to businesses
and workers in transition. Rapid
response, when operated successfully,
delivers on the promises that the
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workforce system makes to businesses,
workers, and communities—to provide
economically valuable solutions to
businesses and critically important
services to workers at the time when
they are most needed. These proposed
regulations are designed to ensure that
rapid response programs in all States are
capable of meeting those promises, that
service levels are consistent in quality
yet customized to specific events, and
activities are driven always by the goal
of preventing or minimizing
unemployment. The proposed
regulations also focus specifically on
anticipating needs and planning for
them, rather than only responding to
layoff events.
Section 682.300 What is rapid
response, and what is its purpose?
Proposed § 682.300 describes the
purpose of rapid response—to promote
economic development and vitality—
and identifies the activities and
responsibilities to meet this purpose.
Proposed § 682.300(a) identifies as key
components of rapid response the
strategies and activities necessary to
plan for and respond to layoffs or other
dislocation events, including natural or
other disasters. While many States will
provide rapid response services for
layoffs of all sizes, some States have
restricted rapid response services to
layoffs of 50 or more workers, or for
which they received a Worker
Adjustment and Retraining Notification
(WARN) Act notice. While rapid
response is required for closures and
mass layoffs, the Department’s intention
is that effective services are provided to
as many workers and companies as
possible. Most employers have fewer
than 50 workers, and thus, a substantial
percentage of layoffs do not qualify for
WARN coverage; therefore, using either
of these criteria as the only triggers for
the provision of rapid response
assistance means that most companies
and workers affected by dislocations
will not be provided rapid response
services. Establishing a strict threshold
is counter to the purpose of rapid
response, and prevents many workers
and companies from receiving valuable
services at a time when they are needed.
Therefore, the proposed regulations
do not define any threshold for the size
of a layoff for which rapid response
services are provided. The regulation
does not specifically address plant
closures because the Department
considers the layoffs associated with
closures to be covered under the general
principles applicable to layoffs. Based
on the fact that most companies employ
fewer than 50 workers and the rapid
response services provide significant
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value to both affected workers and
businesses, the Department expects that
States and local areas will provide rapid
response services to layoffs and closures
of all sizes, as practicable. However, for
any plant closure or layoff of 50 or
more, rapid response services must be
provided per the statutory reference to
mass layoffs. Additionally, rapid
response must be provided for any
layoff which receives a WARN notice.
State and local area rapid response
providers must establish policies and
procedures that allow them to serve the
most companies and affected workers or
to determine the specific scenarios
which meet this criterion and for which
they will provide rapid response
services.
Proposed § 682.300(a) identifies the
need to expeditiously deliver services in
order to enable dislocated workers to
transition quickly to new employment.
The two critical phrases in this
section—‘‘plan for and respond’’ and
‘‘as quickly as possible’’—demonstrate
that rapid response must include
strategic planning and other activities
that will ensure that dislocated workers
can be reemployed as soon as possible.
Proposed § 682.300(b) explains that
the purpose of rapid response is a
proactive, strategic set of actions, not
simply a response to layoffs. The
proposal establishes rapid response as a
critical tool in managing economic
transition and supporting economic
growth in communities. As stated in the
proposal, rapid response includes a
wide array of strategies and activities of
which layoff aversion is a key
component. Proposed paragraph (b)(1)
describes the direct and informational
services rapid response must provide to
workers affected by layoffs.
Proposed paragraph (b)(2) describes
the services that rapid response must
provide to businesses. Building and
maintaining relationships with the
business community, throughout the
growth and decline that characterizes
the business cycle, is a critical aspect of
rapid response; establishing and
maintaining these relationships allows
for early knowledge of potential layoffs.
This information not only provides time
for undertaking actions that may
prevent the layoffs from occurring but
may also allow affected workers to
connect, in a timely manner, with
businesses that can use their skills,
thereby avoiding unemployment or
minimizing its duration.
Engaging with businesses and
delivering effective solutions to their
needs is critical—to allow rapid
response teams to meet and work with
individuals affected by layoff, preferably
before layoff and on company time, but
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also to identify companies that are
growing and may hire dislocated
workers or to deliver services that may
prevent workers at those companies
from being laid off in the future.
Proposed paragraph (b)(3) describes
the role that rapid response must play
in developing strong, comprehensive
networks of partners and service
providers to ensure that all needed
services are provided to businesses,
workers, and communities.
Proposed paragraph (b)(4) covers the
need for rapid response to undertake
strategic planning and data gathering to
ensure readiness to act appropriately
whenever the need arises.
Section 682.310 Who is responsible for
carrying out rapid response activities?
Proposed § 682.310 is a new section
that was split from § 665.300 under the
current regulations. Its text follows the
current regulation, § 665.300(b), without
substantive change, but it changes the
verb used to describe the delivery of
rapid response from ‘‘provide’’ to ‘‘carry
out’’ to track the language used in WIOA
sec. 134(a)(2).
Section 682.320 What is layoff
aversion, and what are appropriate
layoff aversion strategies and activities?
Proposed § 682.315 significantly
enhances the required activities from
those set forth in the current regulation.
Rapid response experience under WIA
has shown the importance of layoff
aversion as a critical component of a
successful rapid response program, to be
used by States and Local Boards to
prevent or minimize layoffs. This
section describes strategies and
activities which are designed to prevent
or minimize the duration of
unemployment.
Layoff aversion is a comprehensive
approach requiring the integration of
data, relationships, partnerships, and
policies and procedures to allow an
assessment of the economic situation
that exists within a given area. This
approach enables the development of a
plan that may be applied, at any time,
to intervene and manage transition that
occurs within that area. Layoff aversion
strategies and activities are customized
to specific needs, quickly deployable,
informed by economic data, and
designed and coordinated with partners
as necessary. This proposed section
describes examples of these strategies
and activities.
Proposed § 682.315 provides a
definition for layoff aversion, which has
been adapted from TEGL 30–09, and
describes a number of potential layoff
aversion strategies and activities that
rapid response programs must include,
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many of which were first described in
(TEN) 9–12.
Section 682.330 What rapid response
activities are required?
Proposed § 682.330 describes rapid
response activities that are required to
be carried out with rapid response
funds. The elements include activities
that have been previously discussed in
guidance and through technical
assistance; elements that are required by
the current regulation; and elements
that were previously allowable, but
which are now required. In particular,
the regulation now specifically
identifies layoff aversion activities and
the provision of additional assistance to
local areas experiencing increased
dislocation events as required rapid
response activity (paragraphs (a) and (i))
and adds new responsibilities in
paragraphs (g) through (k). The
Department’s experience under WIA has
shown that such activities are critical
for a successful rapid response program.
To meet the needs of affected workers
and businesses, a rapid response
program must be proactive, data-driven,
engaged with businesses, and focused
on preventing layoffs or minimizing
their negative impacts. Substantially
increasing the level of required
activities under rapid response is
designed to drive those outcomes. By
undertaking these activities, the State
and local areas will be able to effectively
manage, review and evaluate rapid
response and layoff aversion efforts.
Proposed § 682.330(a) describes layoff
aversion as a required rapid response
activity. Layoff aversion strategies and
activities are described in proposed
§ 682.315. The proposal requires that
States and local areas have the
capability to conduct layoff aversion;
however, it is left to the discretion of the
operators of rapid response programs to
determine which strategies and
activities are applicable in a given
situation, based upon specific needs,
policies, and procedures within the
State and operating areas. The current
regulation requires rapid response
operators to assess the potential for
averting layoffs; this proposal expands
on this requirement by listing a number
of specific strategies and activities that
are critical to maintaining readiness and
ensuring the ability to capitalize on
opportunities that will prevent, or
minimize the duration of,
unemployment.
Proposed § 682.330(b) through (e) are
consistent with the current regulations;
these activities are retained as required
under the proposed WIOA regulations.
This proposed regulation does not
define the term ‘‘emergency services’’ as
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used in proposed § 682.330(f); however,
in the past States and local areas have
used rapid response teams and
resources for a wide array of activities
in response to disaster situations. Such
activities have included outreach,
support, and assistance for impacted
individuals with accessing UI or
disaster unemployment assistance;
acquisition of and support for mobile
one-stop units; demographic
information gathering for potential
emergency grant applications; and
coordination with Federal Emergency
Management Agency (FEMA) or other
disaster-response organizations. State
and local area rapid response providers
must work closely with other State and
local agencies and other critical partners
through strategic planning processes to
ensure effective and immediate
responses can be undertaken when the
need arises.
Proposed § 682.330(g) discusses the
requirement that State or local rapid
response programs collect and utilize
data as a core component of their work.
Proposed § 682.330(g)(1) requires States
and/or local areas to identify sources of
information that will provide early
warning of potential layoffs, and to
gather this data in a manner that best
suits their needs. Proposed
§ 682.330(g)(2) requires the processing
and analysis of a range of economic data
and information to ensure the best
possible services are delivered to
businesses and workers at the
appropriate time. Proposed
§ 682.330(g)(3) requires that States and/
or local areas track data and other
information related to the activities and
outcomes of the rapid response
program, so as to provide an adequate
basis for effective program management,
review, and evaluation of rapid
response and layoff aversion efforts.
Proposed § 682.330(h) highlights the
need for strategic and operational
partnerships. Rapid response operators
must develop and maintain partnerships
with a wide range of partners to ensure
the capability to deliver needed services
and resources to businesses, workers,
and communities whenever the need
arises. The proposal provides some
examples of organizations with which to
partner, but States and local areas
should establish partnerships with those
organizations that are necessary to
ensure the successful functioning of
their rapid response program. Proposed
§ 682.330(h)(1) discusses the use of
these partnerships to conduct strategic
planning and to ensure that assistance
provided to companies, workers, and
communities is comprehensive.
Proposed § 682.330(h)(2) requires that
the partnerships developed to support
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rapid response programs actively share
information on resources available on a
regular basis to ensure that the needs of
businesses, workers, and communities
will be met at the time they are needed.
Proposed § 682.330(i) requires rapid
response services to be provided to
workers upon the filing of a petition for
TAA. If the Department no longer
processes TAA petitions due to an
expiration or termination of the
program, there will be no explicit
requirement pertaining to TAA
participants. However, such
individuals, as dislocated workers, will
continue to receive rapid response
services upon notification of layoff
consistent with State or local area
procedure.
Proposed § 682.330(j) requires States
to provide additional assistance to local
areas that experience an event that
causes significant layoffs that exceed the
capacity of the local area to respond to
with existing formula resources. This
requirement is found in the current
regulation at § 665.300(b); the
Department has made slight wording
changes and moved it to this part. The
additional assistance is required by
WIOA sec. 134(a)(2)(A)(II). Proposed
§ 682.330(j) establishes the requirement
that such assistance be provided;
proposed § 682.350 defines and
describes what additional assistance
entails.
Proposed § 682.330(k) describes the
role of rapid response in organizing or
supporting labor management
committees. This proposed paragraph
uses the language from the current
regulation that addresses this point, 20
CFR 655.310(c)(1) and (2). This support
is required by WIOA sec. 3(51), as it was
under WIA sec. 101(38), where labor
and management voluntarily agree that
the establishment of such a committee
is appropriate. It has been the
Department’s experience that in some
circumstances such committees have
proven ineffective; therefore, their
establishment is not a required rapid
response activity. However, where labor
and management desire to establish
such a committee, guidance and
financial support must be provided by
rapid response.
The proposal does not include the
requirement, now in 20 CFR
655.310(c)(3), that a neutral chairperson
be appointed for such a committee.
Based on feedback received regarding
the difficulties involved in obtaining a
neutral chairperson who is familiar with
the immediate problem, the leadership
of such a committee is better left to the
discretion of the parties involved.
The proposal does not include the
language in the current regulation
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referring to ‘‘workforce transition
committees’’—the Department now
refers to these as groups as ‘‘community
transition teams.’’ Their role is
explained in proposed § 682.340.
Section 682.340 May other activities
be undertaken as part of rapid response?
Proposed § 682.340 identifies
additional activities that may be
undertaken as part of the rapid response
program. Proposed § 682.340(a) is
designed to allow for innovative
approaches and to ensure additional
flexibility to prepare for and respond to
layoffs, and to react to unusual or
unforeseeable situations. Although the
proposal leaves considerable discretion,
any allowable activities must be
designed to prevent or minimize the
duration of unemployment, or to
develop strategies or activities that will
lead to better programmatic outcomes.
Proposed § 682.340(b) provides for the
creation and operation of community
transition teams. Community transition
teams are designed to expand the ability
of the public workforce system to enlist
partners, community organizations, and
others to provide services and resources
in communities or areas in response to
major layoffs or other events that have
caused significant impact that are
beyond the capacity of the public
workforce system to address. Rapid
response funds may be used to organize
or sustain community transition teams
that are organized to provide relief to
impacted communities.
Section 682.350 What is meant by
‘‘provision of additional assistance’’ in
Workforce Innovation and Opportunity
Act?
Section 665.330 of the current
regulations is not maintained in the
proposed regulations. The North
American Free Trade Agreement
(NAFTA) program to which it refers has
ended. Proposed § 682.350, which
describes the provision of ‘‘additional
assistance’’ to local areas, has been
largely maintained from the existing
WIA regulations. The Department has
made a slight change to the language in
the existing regulations for clarity, but
the concept has not changed. While the
provision of additional assistance is
required, as described in proposed
§ 682.330(i), the mechanisms by which
such assistance may be provided are left
to the discretion of the States.
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Section 682.360 What rapid response,
layoff aversion, or other information
will States be required to report to the
Employment and Training
Administration?
Proposed § 682.360 does not appear in
the current regulations; it requires that
States report information about the
receipt of rapid response services by
individuals enrolled as dislocated
workers. This information is currently
required under WIA reporting
guidelines. The Department also
reserves authority to issue further
guidance on the reporting of rapid
response activities. Should such
reporting become required, the
Department will work with States and
local areas to ensure that reporting
burdens are minimized while still
meeting program reporting goals.
Section 682.370 What are ‘‘allowable
statewide activities’’ for which rapid
response funds remaining unspent at
the end of the year of obligation may be
recaptured by the State?
Proposed § 682.370 addresses the
WIOA provision at sec. 134(a)(2)(B) that
allows a State to ‘‘recapture’’ any funds
reserved for rapid response that remain
unspent at the end of the PY of
obligation and utilize them for State setaside activities. The Department has
provided further definition around
required and allowable activities under
the rapid response provisions of the
WIOA, which may support States to
more fully utilize rapid response funds
while better serving businesses and
workers.
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G. Part 683—Administrative Provisions
Under Title I of the Workforce
Innovation and Opportunity Act
1. Introduction
This proposed part establishes the
administrative provisions that apply to
formula and discretionary grants and
cooperative agreements authorized
under title I of WIOA. Some
administrative provisions are also
applicable to grants provided under the
Wagner-Peyser Act, as indicated in
specific sections of this part. The
remaining Wagner-Peyser Act
administrative rules are still located in
20 CFR part 658. Wagner-Peyser grants
are included in this part to ensure
consistent application of the common
administrative provisions that apply to
all grants awarded under title I of WIOA
and the Wagner-Peyser Act. For
instance, the audit requirements for
discretionary and formula grantees for
title I and Wagner-Peyser Act funds can
be found in one section. The internal
control requirements for both programs
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can be found in this part as well.
However, contracts, rather than grants
or cooperative agreements, are used to
award most funds authorized for Job
Corps. As such, the administrative
provisions for Job Corps (subtitle C of
title I of WIOA) will be addressed
separately in 20 CFR part 686.
Many of the proposed requirements in
this part 683 are impacted by the
Department’s new rule ‘‘Uniform
Administrative Requirements, Cost
Principles, and Audit Requirements for
Federal Awards Final Rule,’’ at 2 CFR
part 2900 published on December 19,
2014, and OMB’s Uniform
Administrative Requirements, Cost
Principles, and Audit Requirements for
Federal Awards Final Rule, dated
December 26, 2013 found at 2 CFR part
200 (‘‘Uniform Guidance’’ or ‘‘2 CFR
part 200’’). The Uniform Guidance,
which can be found at https://
www.gpo.gov/fdsys/pkg/FR-2013-12-26/
pdf/2013-30465.pdf, streamlines and
consolidates OMB Circulars A–21 (2
CFR part 220), A–50, A–87 (2 CFR part
225), A–89, A–102 (29 CFR part 97), A–
110 (29 CFR part 95), A–122 (2 CFR part
230), and A–133 (29 CFR part 96) into
a single document. The Uniform
Guidance standardizes the
administrative, cost, and audit
provisions for nearly all grants across
the Federal government including those
awarded by the Department’s WIOA
Federal partners, including ED, HHS,
and the Department of Agriculture.
Federal agencies were allowed to submit
exceptions, as defined at 2 CFR 200.102,
that deviate from the Uniform Guidance.
The list of the Department’s exceptions
to the Uniform Guidance is available at
2 CFR part 2900. Requirements of this
Uniform Guidance, including the
Department’s exceptions, apply to all
grants and cooperative agreements
provided under this part.
In this proposed part, the Department
hopes to strengthen its administration of
grants and enhance program results by
providing consistent and uniform
guidance that increases accountability
and transparency, promotes fiscal
integrity, and reduces duplication.
2. Subpart A—Funding and Closeout
This subpart addresses the grant life
cycle from fund availability to closeout
for formula grants awarded to States
under WIOA title I, subtitle B, and the
Wagner-Peyser Act, and the grant life
cycle for discretionary or competitive
WIOA grants, awarded under subtitle D
of title I. This subpart identifies the
three financial assistance instruments
that will be used to award funds under
title I of WIOA and Wagner-Peyser:
Contracts, grant agreements, and
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cooperative agreements. One shift from
WIA to WIOA is that the Secretary will
no longer use the Governor/Secretary
agreements used under WIA. In
compliance with the Uniform Guidance,
the Department will use Notices of
Award as the funding instrument for all
grants, both formula and discretionary.
Another shift to promote full
expenditure of funds is to require that
recipients expend the funds with the
shortest period of performance before
expending other funds. This proposed
subpart also implements the WIOA
statute’s flexibility in allowing a Local
Board to transfer up to 100 percent of
a PY allocation between the adult and
dislocated workers funding streams
subject to the Governor’s approval.
Additionally, the subpart proposes
processes on the handling of
unobligated rapid response funds and
ETA’s role in the annual reallotment
process that takes place between the
States and the Department after each
PY. The proposed responsibility review
provisions are also different from those
under WIA to reflect the new
requirements in the Uniform Guidance.
Lastly, this subpart outlines the closeout
procedures for title I of WIOA and
Wagner-Peyser awards.
Section 683.100 When do Workforce
Innovation and Opportunity Act grant
funds become available for obligation?
This proposed section describes the
statutory requirements for the
Department’s release of formula funds
under title I of WIOA and the WagnerPeyser Act. WIOA youth funds may be
released earlier than other formula
funds, as early as April, to assist States
and locals in planning youth activities.
Adult and dislocated worker funds will
be awarded on a PY basis in two
payments: In July after the beginning of
the PY and a second release of funds in
October of each PY. Wagner-Peyser
funds will also be released on a PY
basis, in July of each fiscal year. The
availability of funds awarded on a
competitive or discretionary basis will
be dependent on the annual
appropriation and on the grant or
cooperative agreement.
Section 683.105 What award
document authorizes the expenditure of
funds under title I of the Workforce
Innovation and Opportunity Act and the
Wagner-Peyser Act?
This section recognizes the use of the
three funding instruments that conform
with the Uniform Guidance: Grant
agreements, cooperative agreements,
and contracts. The Department will no
longer use the Governor/Secretary
agreement, used under WIA, as a
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funding instrument because it is not
consistent with the Uniform Guidance.
Proposed paragraphs (b) through (e) of
this section specify the type of funding
instruments that will be used for
different WIOA programs. Proposed
paragraph (e)(3) implements WIOA sec.
169(b)(6)(B), which states that the
Department may not award a contract or
grant for research, studies, or multiState projects ‘‘to the same organization
for more than 3 consecutive years unless
such grant or contract is competitively
reevaluated within such period.’’ The
Department interprets the central
purpose of this provision to promote
competition—it prohibits the
Department from awarding lengthy
contracts or grants on a non-competitive
basis to the same organization.
However, as long as the contract or grant
is awarded on a competitive basis, the
project (and therefore the award) may
span over a period of more than 3 years.
This is consistent with the Department’s
need to conduct lengthy research and
other projects and with the new
flexibility to incrementally fund
evaluations, research, and other
projects, provided in sec. 189(g)(2)(B)(ii)
of WIOA. Finally, proposed paragraph
(f) of § 683.105 makes clear that all three
funding instruments are subject to the
closeout procedures in the Uniform
Guidance.
Section 683.110 What is the period of
performance of Workforce Innovation
and Opportunity Act title I and WagnerPeyser Act funds?
This proposed section describes the
period of performance for different
types of WIOA title I and Wagner-Peyser
Act grant awards. Proposed paragraph
(a) provides a general explanation about
expenditure periods. Specifically, the
period of performance for grants is the
statutory period of availability for
expenditure, unless otherwise provided
in the grant agreement. Funds must be
spent in a timely manner; if they are not
expended by the end of the performance
period, they risk losing their
availability. Grantees must expend
funds with the shortest period of
availability first, unless otherwise
authorized in the agreement or in a
subsequent modification. The proposed
paragraph includes a sentence
encouraging grantees to follow this rule,
so that they use funds expeditiously and
effectively. This approach should help
reduce unexpended funds at the end of
a grant’s period of performance
Proposed § 683.110(b) through (h)
restate the applicable periods of
performance for WIOA and the WagnerPeyser Act grants. WIOA did not change
these periods for formula funds—adult/
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dislocated worker and youth formula
funds allotted during any PY are
available for expenditure by the State
only during that PY and the 2
succeeding PYs; funds allocated by the
State to a local area for any PY are
available for expenditure only during
that PY and the succeeding PY (WIOA
sec. 189(g)(2)). Proposed paragraph
(c)(2) also requires that funds
unexpended by a local area in the 2 year
period be returned to the State and be
used for specific purposes. This is
unchanged from the WIA regulation at
20 CFR 667.107. However, proposed
paragraph (c)(1)(ii) notes an exception to
the 2-year performance period for local
areas in the case of WIOA Pay-forPerformance contracting strategies, a
new option added by secs. 129(c)(1)(D)
and 134(d)(1)(iii) of WIOA and more
fully discussed in proposed subpart E.
Under this paragraph, and in
accordance with sec. 189(g)(2)(D) of
WIOA, funds used by local areas to
carry out WIOA Pay-for-Performance
contract strategies remain available until
expended. Additional information on
this provision is explained below in the
discussion of proposed § 683.530.
Proposed paragraph (h) also implements
sec. 5(c) of the Wagner-Peyser Act, and
explains that funds allotted to States for
grants under secs. 3 and 15 of the
Wagner-Peyser Act for any PY are
available for expenditure by the State
receiving the funds only during that PY
and the 2 succeeding PYs.
Proposed paragraphs (d) and (e)
provide the expenditure period for the
Native American programs and MSFW
programs under secs. 166(c) and 167(a)
of WIOA, respectively. In both
programs, WIOA requires the Secretary
to enter into grants or contracts with
eligible entities every 4 years.
Accordingly, the proposed paragraphs
explain that funds awarded by the
Department under these programs are
available for expenditure during the
period identified in the award
document, which will not exceed 4
years.
For grants awarded for research or
evaluations under WIOA sec. 169, funds
remain available until expended, in
accordance with sec. 189(g)(2)(B)(i) of
WIOA, or for the period of performance
specified in the terms and conditions of
the award. The Secretary has the
authority to limit the period of
expenditure of these funds in the terms
and conditions of the grant award.
Finally, proposed paragraph (f)
explains that funds allotted for other
programs under title I of WIOA,
including secs. 170 (National Dislocated
Worker Grants (NDWGs) and 171
(Youthbuild program), are available for
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expenditure for the period of
performance identified in the grant or
contract.
Section 683.115 What planning
information must a State submit in
order to receive a formula grant?
This proposed section implements the
statutory requirement that an approved
Unified State Plan or Combined State
Plan be submitted before formula funds
under title I, subtitle B, of WIOA and
Wagner-Peyser can be issued. As
discussed in the preamble discussion of
part 676, WIOA is apparently
inconsistent as to whether outlying
areas must submit a Unified or
Combined State Plan to receive funding
under title I. The preamble discussion of
part 676 details the apparent
inconsistency and identifies potential
options to resolve the inconsistency.
Section 683.120 How are Workforce
Innovation and Opportunity Act title I
formula funds allocated to local areas?
This proposed section describes the
timeframe and formula factors a
Governor must employ when allocating
funds to local areas under secs. 128 and
133. It also specifies the steps a
Governor must take when issuing
allocations, including consulting with
Local Boards and elected officials prior
to issuing the allocation. The Governors
must issue the funds to the local areas
in a timely manner to allow for an
adequate planning process.
This section also adopts the provision
in sec. 134(2)(A)(ii) of WIOA that allows
States to use unobligated rapid response
funds, after the completion of the PY,
for statewide activities.
Section 683.125 What minimum
funding provisions apply to Workforce
Innovation and Opportunity Act adult,
dislocated worker, and youth
allocations?
This proposed section addresses the
minimum funding thresholds for States
funded under subtitle B of title I of
WIOA. Minimum funding thresholds
are established to offset the impact of
fluctuations in the formula factors that
result from shifts in the economy that
may be compounded by additional
downturns in a particular industry or
market in a particular State. Sections
128(b)(2)(A) and 133(b)(2)(A) of WIOA
contain these minimum funding
requirements to avoid significant swings
in the amount of funding a State
receives from 1 year to the next and to
avoid any disruption of services or
planning.
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Section 683.130 Does a Local Board
have the authority to transfer funds
between the adult employment and
training activities allocation and the
dislocated worker employment and
training activities allocation?
This proposed section provides
flexibility to local areas to provide
services in the areas of greatest need by
allowing fund transfers of up to 100
percent of a PY allocation between the
local adult and local dislocated worker
allocations. Proposed § 683.130(b)
requires a Local Board to obtain written
approval of the Governor before making
such a transfer. This flexibility to
transfer funds is contained in sec.
133(b)(4) of WIOA.
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Section 683.135 What reallotment
procedures does the Secretary use?
This proposed section implements
secs. 127(c) and 132(c) of WIOA, and
explains the Department’s process for
recapture and reallotment of formula
funds awarded to the States under title
I. The proposed rule requires the
Secretary to make the determination
about whether the State has obligated 80
percent of the funds during the second
quarter of each PY, rather than the first
quarter. The procedures are the same as
those in the WIA regulation at 20 CFR
667.150, with a few exceptions. The
Department proposes to make the
determination during the second quarter
because State financial reports for the
end of the PY period are not locked for
modification until the next quarter’s
reports are submitted, which is during
the second quarter of the PY. The
Department also uses the term ‘‘each’’ to
make it clear that the Department
performs the reallotment procedures
every PY with respect to the prior PY.
Further, the section clarifies that the
amount subject to recapture is based on
the unobligated balance of the prior
‘‘program’’ year, in accordance with
secs. 127(c)(2) and 132(c)(2) of the
statute. Finally, the proposed section
clarifies the language that the recapture
amount, if any, is determined separately
for each funding stream.
Proposed § 683.135(c) defines the
term ‘‘obligation’’ in accordance with
the new OMB Administrative
Requirements at 2 CFR 200.71 (‘‘[w]hen
used in connection with a non-Federal
entity’s utilization of funds under a
Federal award, obligations means orders
placed for property and services,
contracts, and subawards made, and
similar transactions during a given
period that require payment by the nonFederal entity during the same or a
future period.’’). The Department is
using this definition to be consistent in
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our application of 2 CFR part 200,
which is applicable to all funds
awarded as grants or cooperative
agreements. The proposed rule includes
the same additions to the definition of
‘‘obligation’’ that are in the WIA
regulation at 20 CFR 667.150(d)(1) and
(2). The Department will continue to
recognize the monies allocated to the
local areas through the formula process
under subtitle B of title I as obligated by
the States for the purposes of this
section, and the Department has
clarified this by adding the words ‘‘to
the local area’’ in proposed paragraph
(c)(1). Because of this, local transfers
between the adult and dislocated
worker funding streams do not impact
the Department’s recapture calculation
for reallotment among the States.
Similarly, the fact that up to 10 percent
of local funds may be reserved for
administrative costs does not affect the
calculation. Recapture and reallotment
of funds among States will occur during
PY 2015 based on obligations in PY
2014, because the procedures for
realloting funds did not change from
WIA to WIOA.
New in WIOA, sec. 134(a)(2)(A)(ii)
permits the Governor to use rapid
response funds that remain unobligated
after the first PY for which they were
allotted to carry out statewide
employment and training activities. The
rapid response funds will be included
in the calculation of unobligated
funding to determine if a State is subject
to reallotment. Sections 127(c) and
132(c) of WIOA do not except rapid
response funds from recapture—a tool
which provides a strong incentive for
States to expeditiously expend funds.
Excepting rapid response funds from
the reallotment calculation would
effectively remove the reallotment
provision out of the statute. The
Department generally is able to
recapture and reallot only dislocated
worker funds, because States
immediately obligate 85 percent of their
adult and youth program funds by
allocating them to the local areas
through the formula process. Because
sec. 133(a)(2) of WIOA allows the
Governor to reserve up to 25 percent of
dislocated worker funds for rapid
response activities, there may never be
a situation where 80 percent of the
remaining dislocated worker funds have
not been obligated. Therefore, the
Department includes rapid response
funds in the calculation of a State’s
unobligated funding to determine if the
State is subject to recapture and
reallotment.
However, even if a State is subject to
reallotment, the Governor may use the
unobligated rapid response funds
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described in WIOA sec. 134(a)(2)(A)(ii)
that remain available after reallotment
to carry out statewide employment and
training activities (in addition to rapid
response activities). This preserves the
additional flexibility provided to the
Governors in WIOA sec. 134, by
permitting Governors to use rapid
response funds for statewide
employment and training activities if
not expended in the first year of
availability. The Department welcomes
comments on the proposed reallotment
approach and potential impact on
States, including the transfer flexibility.
§ 683.140 What reallocation
procedures must the Governors use?
This proposed section describes the
procedures for reallocating youth, adult,
and dislocated worker funds among
local areas in the State, in accordance
with secs. 128(c) and 133(c) of WIOA,
and is unchanged from the WIA
regulation at 20 CFR 667.160 except that
proposed paragraph (a) requires the
Governor to consult with the State
Board before reallocating, as required by
secs. 128(c)(1) and 133(c)(1) of WIOA.
Proposed paragraph (b) clarifies that the
amount to be recaptured, if any, must be
separately determined for each funding
stream, and the calculations of
unobligated balances in each stream
must be adjusted to account for any
funds that are transferred between
funding streams under proposed
§ 683.130. The Department also notes
that States and local areas are required
to adhere to the definition of
‘‘obligations’’ in 2 CFR 200.71.
Section 683.145 What merit review
and risk assessment does the
Department conduct for Federal
financial assistance awards made under
Workforce Innovation and Opportunity
Act title I, subtitle D?
This proposed section includes new
requirements mandated by the Uniform
Guidance. First, there is a requirement
for the use of merit review as a means
to ensure that discretionary or
competitive grants and cooperative
agreements are awarded through a
competitive, merit-based process.
Second, this section incorporates the
Uniform Guidance requirement, found
at 2 CFR 200.205, that an agency must
have ‘‘a framework for evaluating the
risks posed by applicants before they
receive Federal Awards.’’ The factors
the Grant Officer will consider are listed
in this section and drawn from 2 CFR
200.205. Additional guidance will be
issued to further specify how the Grant
Officer will evaluate these factors in
determining whether the applicant
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should be precluded from receipt of
Federal financial assistance.
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Section 683.150 What closeout
requirements apply to grants funded
with Workforce Innovation and
Opportunity Act title I and WagnerPeyser Act funds?
This proposed section is new; there is
not one like it in the WIA regulations.
It addresses closeout, which is an
important component to complete the
grant life cycle. This section
paraphrases the Uniform Administrative
requirement sections on closeout and
post-closeout adjustments (2 CFR
200.343–344). Specifically, when the
period of performance ends, the
Department will close out the Federal
award after determining that all
administrative actions and required
work have been completed by the grant
recipient. The grant recipient must
submit all required reports and liquidate
all obligations and/or accrued
expenditures within 90 days of the end
of the performance period. The
Department will promptly reimburse the
grant recipient for allowable
reimbursable costs under the Federal
award being closed out. The nonFederal entity must promptly refund
any balanced of unobligated cash that is
owed to the Department. The
Department will settle for any upward
or downward adjustments to the Federal
share of costs after closeout reports are
received. The grant recipient must
account for any real and personal
property acquired with Federal funds or
received from the Federal government.
The Department must complete all
closeout actions no later than 1 year
after receiving and accepting all
required final reports; however, closeout
does not affect the Department’s right to
disallow costs and recover funds, or
obligations of the grantee, including
audit, property management, and
records retention requirements. After
award closeout, a relationship created
under the award may be modified or
ended. Grant recipients that award
funds to subrecipients must institute a
timely closeout process after the end of
performance to ensure a timely closeout
in accordance with this section.
3. Subpart B—Administrative Rules,
Costs and Limitations
Financial and Administrative Rules.
These proposed regulations provide the
rules applicable to WIOA grants in the
areas of fiscal and administrative
requirements, audit requirements, and
allowable cost/cost principles, and
includes changes as the result of the
Uniform Guidance at 2 CFR part 200
and any exceptions to 2 CFR part 200
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that have been released by the
Department under 2 CFR part 2900. To
support the fiscal integrity of the grant
process, proposed § 683.220 requires
recipients and subprecipients of WIOA
or Wagner-Peyser Act funds to have an
internal control structure in place that
provides safeguards to protect
personally identifiable information and
other sensitive information. This section
is new to WIOA; there is no
corresponding section in the WIA
regulations. Another new section
provides rules for using real property
with Federal equity. Under this
provision, Federal equity acquired in
real property through grants to States
awarded under title III of the SSA or the
Wagner-Peyser Act is transferred to the
States that used the grant to acquire the
equity; the portion of the equity
transferred must be used to carryout
activities authorized under these
programs and/or WIOA. The new
section also provides instructions on
using properties funded with Reed Act
equity or the Job Training Partnership
Act (JTPA).
Costs and Limitations. This proposed
regulation in § 683.205 delineates
activities and functions associated with
the cost of administration as well as cost
limitations (discussed in proposed
§ 683.205). The intent continues to be
that the function and intended purpose
of an activity should be used to
determine whether the costs are
administrative or programmatic. There
is a new section on salary and bonus
limitations, which prescribes limits on
salaries and bonuses in both WIOA and
Wagner-Peyser programs. The proposed
subpart also describes activities that are
prohibited under WIOA, such as
employment generating activities and
activities that encourage business
relocation.
Responsibilities toward participants
and employees. These proposed
regulations provide rules on employee
displacement, wage and labor standards,
health and safety standards, and nondiscrimination.
Other rules. There is a new section
addressing the allowability of earning
under WIOA grants.
Section 683.200 What general fiscal
and administrative rules apply to the
use of Workforce Innovation and
Opportunity Act title I and WagnerPeyser funds?
This proposed section describes the
application of the Uniform Guidance
and the corresponding exceptions
authorized by the Department at 2 CFR
part 2900 for all grant recipients and
subrecipients, including for-profit
organizations and foreign entities. It
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references the cost principles, discusses
when prior approval for certain
expenditures is required, and highlights
a number of specific requirements in the
Uniform Guidance and the WIOA
statute. For example, this section
addresses the requirement that interest
income be disposed of using the
addition method and requires an entity
to provide additional program services
with those funds. This section also
addresses times when income is earned
and how it is recognized, reported, and
applied to the program. It outlines the
code of conduct and conflict of interest
requirements that must be implemented
under 2 CFR part 200, as well as certain
restrictions imposed on grant recipients
and subrecipients when using WIOA
and Wagner-Peyser funds, including the
Buy-American provision in sec. 502 of
WIOA. Likewise, this section requires
adherence to the mandatory disclosure
requirements found in 2 CFR part 200
on all violations of Federal criminal law
involving fraud, bribery, or gratuity
violations potentially affecting the
Federal award. Additional disclosures
on lobbying, drug-free workplace,
debarment, and suspension continue to
be required as well. Such disclosures
must be timely and in writing. Failure
to make the required disclosures can
result in any of the remedies described
in § 200.338, remedies for
noncompliance, including suspension
or debarment.
Section 683.205 What administrative
cost limitations apply to Workforce
Innovation and Opportunity Act title I
grants?
This proposed section specifies the
statutory administrative cost limitations
on title I grant funds. States receiving
formula WIOA funds are limited to
spending no more than 5 percent of
their annual allotment on administrative
costs. Local areas are limited to
spending no more than 10 percent of
their annual allocation on
administrative costs. Flexibility is
provided to States and local areas in the
statute by allowing administrative funds
from the three formula funding streams
awarded under subtitle B to be pooled
and used together for administrative
costs for any of the three programs, at
the State and locals’ discretion. For
other WIOA title I and Wagner-Peyser
funding, the administrative cost limits
can be found in the grant agreement and
are subject to the Uniform Guidance.
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Section 683.210 What audit
requirements apply to the use of
Workforce Innovation and Opportunity
Act title I and title III funds?
This proposed section specifies the
audit requirements for all grant
recipients and subrecipients of WIOA
funds that expend more than $750,000
in Federal funds during the fiscal year,
including for-profit entities that are
grant recipients or subrecipients of
WIOA title I or Wagner-Peyser funds. As
this proposed section notes, the audit
requirements do not normally pass
through to contractors, but will in some
situations, such as where the payments
are found to constitute a Federal award
rather than a payment for goods and
services. This section seeks to
implement the requirements of the
Uniform Guidance.
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Section 683.215 What Workforce
Innovation and Opportunity Act title I
functions and activities constitute the
costs of administration subject to the
administrative cost limitation?
The proposed section defines the
functions and activities that constitute
administration in accordance with sec.
3(1) of WIOA, and therefore are subject
to the administrative cost limitations
discussed in proposed § 683.205. The
Department notes that this proposed
section applies to activities performed
under all grants awarded under title I of
WIOA. It does not apply to activities
funded through contracts, such as
operation of Job Corps centers. The
proposed rule is the same as the WIA
regulation at 20 CFR 667.220 with a few
exceptions. For clarification, fiscal agent
responsibilities are now included in the
list of enumerated administrative costs.
Regions are also included in the list of
entities that can incur administrative
costs, consistent with sec. 106 of WIOA.
The Department made these
enhancements because services can be
integrated and streamlined through
regions that may cross geographical
boundaries or local economic areas.
Additionally, the section refers to
‘‘contractors’’ instead of ‘‘vendors’’ to be
consistent with the Uniform Guidance,
which replaces vendor with contractor
and defines ‘‘contractor’’ at 2 CFR
200.23.
Proposed § 683.215(c) describes some
activities that can be administrative,
programmatic, or both, depending on
whether the underlying functions which
they support are classified as
programmatic or administrative. These
include costs of activities such as
information systems development and
operation, travel, and continuous
improvement. For example, the costs of
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developing an information system,
which serves both administrative
functions, and the tracking and
monitoring of participants, would be
allocated between program costs and
administrative costs in proportion to the
use of the system for each intended
purpose.
On the other hand, preparing
program-level budgets and program
plans are classified as program costs.
The negotiation of MOUs and one-stop
infrastructure agreements, and
certifications of one-stop centers are
also program costs, because they build
or support the one-stop delivery system
and services to participants.
The Department welcomes comments
regarding whether it is more
advantageous to issue the proposed list
of administrative costs in § 683.215(b) as
a regulation, or to provide a general
description of administrative costs
similar to the definition in sec. 3(1) of
WIOA and provide a rationale for why
such an approach is advantageous. The
Department also seeks comment on
whether this list will need to be flexible,
and subject to review and change
periodically, or whether it is anticipated
to be stable. Additionally, the
Department seeks comment as to
whether indirect costs should be
included as programmatic or
administrative.
Finally, proposed § 683.215(d)
requires entities to make efforts to
streamline administrative services and
reduce administrative costs by
minimizing duplication and effectively
using information technology to
improve services. The Department
expects that streamlining the
administration of the program will
minimize duplication of multiple
systems at different levels of grant
administration so that more funds will
be available for program activities.
Section 683.220 What are the internal
control requirements for recipients and
subrecipients of Workforce Innovation
and Opportunity Act title I and WagnerPeyser Act funds?
This proposed new section describes
the internal controls that recipients and
subrecipients must install and have in
place when expending WIOA and
Wagner-Peyser Act funds, and is based
on 2 CFR 200.303. The controls include
having a structure and policies in place
to protect personally identifiable and
sensitive information, including
information that the Department
considers to be sensitive, and providing
reasonable assurances that the recipient
or subrecipient is managing the award
in compliance with Federal law and the
terms of the award, complying with
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Federal law and the conditions of the
award, evaluating and monitoring the
recipient’s or subrecipient’s compliance
with Federal law and award terms, and
taking prompt action when
noncompliance is identified. The
internal controls must meet the
Committee of Sponsoring Organizations
of the Treadway Commission (COSO)
framework. The framework established
has been used in the private sector for
numerous years and provides standards
to achieve reasonable assurance in the
achievement of the following:
Effectiveness and efficiency of
operations; reliability of financial
reporting; compliance with applicable
laws and regulations; and safeguarding
of assets. Complying with the internal
control requirements will increase
accountability and transparency in the
use of WIOA and Wagner-Peyser Act
funds. Through past monitoring and
oversight, the Department discovered
that some grantees did not have the
tools or access to resources to build a
strong internal control structure. The
Department will work with States and
discretionary grantees to provide tools
and assistance to achieve better results
through its internal control structure.
Direct grant recipients must assist their
subrecipients in achieving an internal
control structure framework consistent
with 2 CFR part 200 and COSO.
Section 683.225 What requirements
relate to the enforcement of the Military
Selective Service Act?
This proposed section specifies the
requirements of the Military Selective
Service Act for programs and activities
authorized under title I of WIOA and
found in sec. 189(h) of WIOA. This
proposed section is substantively the
same as the WIA regulation at 20 CFR
667.250.
Section 683.230 Are there special rules
that apply to veterans when income is
a factor in eligibility determinations?
This proposed section addresses the
laws governing the determination of
eligibility for veterans and their spouses
for WIOA funded services with income
qualification requirements. The
parameters for the exclusion of certain
income from the eligibility
determination process are outlined in
this section. This section also states that
the same method of excluding certain
income of veterans must also be used
when a local area imposes a priority of
service threshold when funding for
program services is limited.
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Section 683.235 May Workforce
Innovation and Opportunity Act title I
funds be spent for construction?
This proposed section is different
from the WIA regulations at 20 CFR
667.260. It is based on the requirements
in the Uniform Guidance at 2 CFR
200.439(b)(3). The proposed text states
that WIOA title I funds must not be
spent on construction, purchase of
facilities or buildings, or other capital
expenditures for improvements to land
or buildings except with prior approval
of the Secretary. Under the statute,
WIOA title I funds can be used for
construction only in limited situations,
including meeting obligations to
provide physical and programmatic
accessibility and reasonable
accommodations, certain repairs,
renovations, alterations, and capital
improvements of property, and for
disaster relief projects under WIOA sec.
170(d), YouthBuild programs under
WIOA sec. 171(c)(2)(A)(i), and for other
projects that the Secretary determines
necessary to carry out WIOA, as
described by under sec. 189(c) of WIOA.
The proposed regulatory text is meant to
include all these situations, but not offer
an exclusive list to ensure that the
Secretary is able to use the funds for
construction in any situation where it
might be necessary.
Section 683.240 What are the
instructions for using real property with
Federal Equity?
The proposed section provides rules
on State Employee Security Act (SESA)
properties, Reed Act-funded properties,
and JTPA-funded properties. The
proposed section provides guidance on
these different properties because the
use of these properties can play an
integral part in WIOA’s intent to align
Federal investments to support jobs
seekers and employers. Such efforts are
not only achieved through strategic
coordination among one-stop partners,
but through physical presence at offices
in the one-stop delivery system. Many
buildings that have existing Federal
equity currently house Wagner-Peyser
programs, and it seems logical to use
these facilities as American Job Centers
if they are accessible and available and
can support the requirements for
colocation outlined in proposed
§§ 678.310 through 678.320. Properties
with Reed Act equity may also play a
role in the American Job Center System.
Lastly, the Department is aware that
many local workforce development
areas that were previously known as
service delivery areas (SDAs) continue
to be used as facilities for WIA
programs, and they should continue to
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be used for the one-stop delivery service
system under WIOA. The Department
welcomes feedback on these provisions.
Making use of these properties for the
one-stop delivery system in accordance
with statutory requirements will
maximize the investments already made
in these buildings and help to achieve
the goals of WIOA.
With respect to Federal equity in
SESA properties, the proposed section
restates the requirements of sec. 192 of
WIOA, and explains that Federal equity
acquired in real property through grants
to States awarded under title III of the
SSA or the Wagner-Peyser Act is
transferred to the States that used the
grant to acquire the equity. The portion
of the real property attributable to the
Federal equity transferred must be used
to carry out activities authorized under
WIOA, title III of the SSA, or the
Wagner-Peyser Act. When the property
is no longer needed to carry out those
activities, the States are directed to
request disposition instructions from
the Grant Officer. Proceeds from the
disposition must be used to carry out
activities authorized under WIOA, title
III of the SSA, or the Wagner-Peyser Act.
The statutory limitation in sec. 192(b)
of WIOA is provided as well. States are
not permitted to use funds awarded
under WIOA, title III of the Social
Security, or the Wagner-Peyser Act to
amortize the costs of the real property
that is purchased by any State after
February 15, 2007.
The Department has also included the
new requirement from sec. 121(e)(3) of
WIOA and sec. 3(d) of the WagnerPeyser Act that properties occupied by
Wagner-Peyser ESs be collocated with
one-stop centers.
With respect to Reed Act-funded
properties, the proposed rule states that
properties with Reed Act equity may be
used for the one-stop delivery system to
the extent that the proportionate share
of Reed Act equity is less than or equal
to the proportionate share of occupancy
by the Wagner-Peyser and UC programs.
However, subject to conditions specified
in sec. 903(c)(2) of the SSA and any
appropriations limitations, a State is
permitted, at its discretion, to use Reed
Act funds for ‘‘the administration of its
UC law and public employment
offices.’’ When the property is no longer
needed for these activities, the State
must request disposition instructions
from the Grant Officer prior to sale.
Because Reed Act funded properties are
different than other Federal equity
properties, disposition instructions will
include a requirement to return the
funds attributable to the Reed Act equity
to the State’s account in the
Unemployment Trust fund. See
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discussion in TEGL 3–07 ‘‘Transfer of
Federal Equity in State Real Property to
the States.’’ It is expected that
additional guidance will be issued to
update the guidance contained in TEGL
3–07, which will include instructions
on the handling of such properties when
considering colocation of WagnerPeyser, as required in sec. 121(e)(3) of
WIOA and sec. 3(d) of the WagnerPeyser Act (as added by the
amendments in title III of WIOA).
For JTPA funded properties, the
proposed rule states that real property
that was purchased with JTPA funds
and transferred to WIA, is now
transferred to the WIOA title I programs
and may be used for WIOA purposes. It
is the Department’s position that the
Federal equity remains with the
property while in use. Many properties
that were purchased with JTPA funds
continue to be locations that house and
serve individuals and staff persons
under WIA, and as such, those same
buildings must continue to be used for
the purposes of WIOA. If JTPA
properties that were being used for WIA
activities will not be used for WIOA
programs, disposal of the property must
occur. When the real property is no
longer needed for the WIOA activities,
the recipient must seek instructions
from the Grant Officer prior to
disposition or sale. A subrecipient
would seek instructions from the State.
Such instructions must be consistent
with 2 CFR part 200. The Department
welcomes any feedback from the
workforce development system that
promotes the use of these properties and
streamlines the disposition process.
Section 683.245 Are employment
generating activities, or similar
activities, allowable under title I of the
Workforce Innovation and Opportunity
Act?
This proposed section implements
sec. 181(e) of WIOA, which restricts the
use of WIOA funds for employment
generating activities except where the
activities are directly related to training
for eligible individuals. The proposed
section states that employer outreach
and job development activities are
considered to be directly related to
training for eligible individuals, and it
lists a number of examples of acceptable
activities. The section also describes the
conditions in which WIOA funds can be
used for employer outreach.
Section 683.250 What other activities
are prohibited under title I of the
Workforce Innovation and Opportunity
Act?
This proposed section describes other
activities that are expressly prohibited
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in title I of WIOA, including foreign
travel paid for by WIOA formula funds
(sec. 181(e) of WIOA) payment of wages
of incumbent workers participating in
economic development activities (sec.
181(b) of WIOA), contracts with persons
falsely labeling products as made in
America (sec. 502(c) of WIOA), and
others.
Section 683.255 What are the
limitations related to religious activities
in title I of the Workforce Innovation
and Opportunity Act?
This proposed section describes the
limitations related to using WIOA funds
to support religious activities, including
the preclusion on employment of
participants for the construction,
operation, or maintenance of facilities
used for sectarian purposes or worship,
which is contained in sec. 188(a)(3) of
WIOA. This section also references 29
CFR part 2, subpart D, which describes
other limitations in detail, along with
certain exceptions. This proposed
section contains similar requirements as
the WIA regulations at 20 CFR 667.266.
Section 683.260 What prohibitions
apply to the use of Workforce
Innovation and Opportunity Act title I
funds to encourage business relocation?
This proposed section describes the
prohibitions on the use of WIOA title I
funds to encourage business relocation,
including specific timeframes when
entities can begin working with such
businesses. This section also describes
the States’ obligation to develop
procedures to implement these rules.
These provisions implement the
requirements of sec 181(d) of WIOA.
This proposed section contains the same
requirements as the WIA regulations at
20 CFR 667.268.
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Section 683.265 What procedures and
sanctions apply to violations of this
part?
This proposed section lists the
provisions that provide for sanctions
resulting from the violation of
§§ 683.235–260.
Section 683.270 What safeguards are
there to ensure that participants in
Workforce Innovation and Opportunity
Act employment and training activities
do not displace other employees?
This proposed section outlines
conditions and safeguards to ensure that
any WIOA title I participant does not
displace an existing employee by
participating in a WIOA title I program
or activity. It also states that an
employee can file a complaint alleging
displacement. Section 181(b)(2) of
WIOA did not change the WIA
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displacement requirements at sec.
181(b)(2) of WIA. Accordingly, this
regulation is unchanged from the WIA
regulation at 20 CFR 667. 270.
Section 683.275 What wage and labor
standards apply to participants in
activities under title I of the Workforce
Innovation and Opportunity Act?
This proposed section describes the
wage and labor standards that apply to
WIOA title I participants, including the
requirements under the Federal Fair
Labor Standards Act (FLSA) and State
and local minimum wage laws. The
regulation is unchanged from the WIA
regulations at 20 CFR 667.272, except
that it includes two additional
provisions from sec. 181 of WIOA. The
first is that the reference to the FLSA
minimum wage requirement does not
apply to territorial jurisdictions in
which the minimum wage requirement
does not apply (WIOA sec. 181(a)(1)(B)),
and the second is that WIOA title I
funds must not be used to pay the wages
of incumbent employees during their
participation in economic development
activities provided through a statewide
workforce delivery system (WIOA sec.
181(b)(1)). This requirement is also
found in proposed § 683.250(a)(1), but it
is included here as well to give a
complete list of the wage standards that
apply to WIOA participants.
Section 683.280 What health and
safety standards apply to the working
conditions of participants in activities
under title I of the Workforce Innovation
and Opportunity Act?
The proposed section explains what
health and safety standards and workers
compensation laws apply to WIOA title
I participants. The standards in WIOA
are the same as those in WIA, so the
regulation is unchanged from the WIA
regulation at 20 CFR 667.274.
Section 683.285 What are a recipient’s
obligations to ensure nondiscrimination
and equal opportunity, and what are a
recipient’s obligations with respect to
religious activities?
This proposed section describes the
nondiscrimination, equal opportunity,
and religious activities requirements
that recipients, as defined in WIOA sec.
188 and at 29 CFR part 37, must adhere
to when using WIOA title I funds.
WIOA did not change these
requirements, so the proposed section
contains the same requirements as the
WIA regulation at 20 CFR 667.275, with
a few exceptions. Accordingly,
paragraph (a)(1) of the proposed rule
refers to ‘‘Job Corps contractors,’’
instead of ‘‘vendors,’’ to conform with
29 CFR part 37. Additionally, proposed
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§ 683.285(a)(4) implements sec.
188(a)(4) of WIOA, which prohibits
discriminating against an individual
because of that person’s status as a
WIOA title I participant. Proposed
§ 683.285(a)(5) also implements the
requirement at sec. 188(a)(5) of WIOA
that participation in WIOA title I
programs and activities be available to
citizens and nationals of the United
States, lawfully admitted permanent
resident aliens, refugees, asylees, and
parolees, and other immigrants
authorized by the Attorney General to
work in the United States. Finally, the
proposed section includes the WagnerPeyser program as an example of a
Department program that is covered by
29 CFR part 2, subpart D.
Section 683.290 Are there salary and
bonus restrictions in place for the use of
Workforce Innovation and Opportunity
Act title I and Wagner-Peyser Act funds?
This proposed section implements the
requirements of sec. 194(15) of WIOA
related to salary and bonus restrictions
that apply to recipients or subrecipients.
Although the statute applies the
restrictions to WIOA title I funding, the
Department expanded application to
Wagner-Peyser Act recipients and
subrecipients. The appropriations acts
for the last 9 years (Pub. L. 109–234
June 15, 2006) have applied the
limitation to all ETA-funded programs;
thus, interpreting the provision as
applying to Wagner-Peyser funded
activities is appropriate. Additionally, it
is the Department’s policy to ensure that
funding is directed to substantive
workforce employment and training
activities to the greatest extent possible,
rather than to administrative costs.
The proposed section restates the
WIOA statutory provisions. Specifically,
it prohibits recipients and subrecipients
from paying the salary and bonuses of
an individual, either as direct or
indirect costs, at a rate in excess of the
annual rate of basic pay prescribed for
level II of the Executive Schedule under
5 U.S.C. 5313. Additionally, the
limitation does not apply to contractors
providing goods and services as defined
in OMB’s Uniform Administrative
requirements (which supersedes OMB
Circular A–133 cited in the statute). The
Department has used the term
‘‘contractors’’ instead of the statutory
term ‘‘vendor’’ to be consistent with the
term used in the Uniform Guidance. The
proposed rule also explains the
provision at WIOA sec. 194(15)(B) that
a State may establish a lower limit for
salaries and bonuses.
Finally, the Department has provided
direction for scenarios in which an
employee may be funded by various
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programs or work for multiple offices. If
funds awarded under title I of WIOA or
the Wagner-Peyser Act pay only a
portion of the employee’s salary or
bonus, the WIOA title I or Wagner-Peyer
Act funds may only be charged for the
share of the employee’s salary or bonus
attributable to the work performed on
the WIOA title I or Wagner-Peyser Act
grant. That portion cannot exceed the
proportional Executive level II rate. This
restriction applies to the sum of salary
and bonus payments made to an
individual whether they are charged as
direct costs or indirect costs under title
I of WIOA and Wagner-Peyer. When an
individual is working for the same
recipient or subrecipient in multiple
offices that are funded by title I of
WIOA or the Wagner-Peyser Act, the
recipient or subrecipient must ensure
that the sum of the individual’s salary
and bonus payments does not exceed
the prescribed limitation. These
clarifications will help to ensure that
WIOA and Wagner-Peyser Act funds are
not overcharged for salary and bonus
payments and that there are no
‘‘loopholes’’ in applying the limitation.
Section 683.295 Is earning of profit
allowed under the Workforce
Innovation and Opportunity Act?
This proposed section addresses
earning profit under WIOA. As the
network of training services and onestop operators has changed over the
years, the Department is including the
proposed section to address working
with for-profit entities and the earning
of profit by these entities. Proposed
§ 683.295(a)(2) includes a requirement
for grants and other Federal financial
assistance awarded under secs. 121(d)
and 134(b) of WIOA, which states that
where a Federal financial assistance
award authorizes one-stop operators,
service providers, or ETPs to earn profit,
the pass through entity must follow 2
CFR 200.323 to ensure that the entities’
charges are reasonable and fair. The
requirement in 2 CFR 200.323 that profit
be negotiated as a separate element of
the price will provide greater
transparency as to the amount of profit
earned by for-profit entities whether
they are subrecipients or subcontractors.
This paragraph (a)(2) describes an
exception to the general rule that forprofit entities acting under a contract
are allowed to earn profit. When the forprofit entity is a recipient of a grant or
other Federal financial assistance, the
entities will now be covered by the
Uniform Guidance rather than the
Federal Acquisition Regulations. The
general rule, for when for-profit entities
are working as contractors, is included
in proposed § 683.295(a)(3). The
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paragraph notes that the profit is
allowable provided that the contractor
abides by the requirements of 2 CFR
200.323. Proposed § 683.295(b) states
that for programs authorized by other
sections of WIOA, profit will be
prohibited unless authorized by the
terms and conditions of the Federal
award.
4. Subpart C—Reporting Requirements
This subpart provides guidance for
reporting that will promote
transparency and accountability at the
grant recipient level. With today’s
demand for data in an open and
transparent environment, the Federal
government meets the challenges with
initiatives such as the Digital
Accountability and Transparency Act,
requiring the Department to open access
to data and use common data metrics.
Performance and financial data, when
made available, can lead to innovation.
Not only does the Secretary seek to
employ fresh and innovative approaches
in serving job seekers and employers,
the Department wants to utilize our
resources and reporting portals to
provide to the public visualizations rich
in data and metrics to assist in better
understanding of the employment
environment. It is the Department’s
intent to use data collected from the
financial, performance, and annual
reports to empower our workforce
system while providing transparency
and accountability to our stakeholders.
This subpart seeks to promote the
government’s initiative to manage
information as an asset to increase
operational efficiencies, reduce costs,
improve services, support mission
needs, safeguard personal information,
and increase public access. One way to
promote this initiative is through the
collection and transmission of data,
using machine readable formats
whenever possible. To safeguard
personally identifiable information,
recipients and subrecipients must limit
the collection and transmission of such
data and use encrypted transmission
software. To increase operational
efficiencies and reduce costs, the
Department and its grantees work
together to find solutions that allow for
the streamlining of reporting and the
reduction of duplication of systems and
efforts. The Department’s existing
financial expenditure form (ETA–9130)
will be modified to reflect new reporting
requirements. The Secretary will issue
additional guidance on this topic.
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683.300 What are the reporting
requirements for programs funded
under the Workforce Innovation and
Opportunity Act?
To continue with efforts for
accountability and transparency as well
as to provide data to our stakeholders,
the Department requires its recipients to
submit financial and performance
reports, as well as an annual
performance report. The data contained
in these reports must be generated and
processed in formats that are compatible
with other commonly used data systems
and be in machine readable formats.
This proposed section specifies the
reporting requirements for grant
recipients and the deadlines for such
reports. This section also sets forth
recipients’ responsibility to collect data
from subrecipients. Pargraphs (b), (d),
and (e) separately describe the
performance reporting requirements for
the core programs under sec. 116 of
WIOA and part 677 and other grant
programs authorized under title I of
WIOA.
5. Subpart D—Oversight and Resolution
of Findings
This proposed subpart addressees the
oversight and resolution responsibilities
of the Department and grant recipients
of WIOA funds. Oversight and
monitoring is a valuable tool in
effectively managing grants and this
subpart emphasizes the need for careful
application of these requirements by the
Department and by recipients.
Oversight. These regulations which
provide for oversight and resolution
responsibilities of the Department and
its grant recipients are an important part
of the Department’s overall strategy to
improve grant administration and to
promote the vision of WIOA. As in WIA,
States will review their subrecipients
and validate their compliance with the
Uniform Guidance on an annual basis
and certify compliance to the Secretary
every 2 years. The States and grant
recipients must also install a monitoring
system that meets the requirements of
the Uniform Guidance and includes the
examination of such items as
performance, program goals, nondiscrimination, conflict of interest, and
mandatory disclosures.
Resolution. The resolution of findings
that arise from audits, investigations,
monitoring reviews, and the Grant
Officer resolution process is specified in
this proposed subpart. It also provides
clarification on the effect of the Uniform
Guidance on the resolution process at
the subrecipient level. When action to
resolve findings is inadequate, the
Department will take additional action
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against the State or other direct grant
recipient to reach resolution. Such
action will include the Grant Officer
resolution process, including the initial
and final determination process, as
described in proposed § 683.440.
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§ 683.400 What are the Federal and
State monitoring and oversight
responsibilities?
This proposed section identifies the
requirements of the Department in
performing oversight and monitoring of
its grant recipients and of the
Department’s grant recipients’
responsibility for subrecipients.
Proposed § 683.400(c) describes the
requirements WIOA has placed on the
States to create a monitoring system for
their subrecipients. Proposed paragraph
(d) also requires the retention of
evidence related to monitoring
functions and resolution actions. This
section also covers the new
requirements under the Uniform
Guidance which requires an
examination of recipient and
subrecipient non-discrimination and
conflict of interest policies, mandatory
disclosures of all violations of Federal
criminal law involving fraud, bribery, or
gratuity violations potentially affecting
the Federal award.
Section 683.410 What are the oversight
roles and responsibilities of recipients
and subrecipients of Federal financial
assistance awarded under title I of the
Workforce Innovation and Opportunity
Act and Wagner-Peyser?
This proposed section defines the
roles and areas in which oversight must
be conducted by the recipients and
subrecipients, including ensuring
compliance with relevant rules and
developing a monitoring system.
Proposed paragraph (b) of the section
also discusses a number of requirements
for the States’ monitoring systems and
the Governor’s biannual certification.
The Department has always placed
significant emphasis on monitoring as a
tool in providing effective grants
managements and this emphasis is
further supported by the inclusion of
monitoring in the Uniform Guidance.
Monitoring and oversight also helps in
identifying technical assistance needs,
areas for improvement, and best
practices.
Section 683.420 What procedures
apply to the resolution of findings
arising from audits, investigations,
monitoring, and oversight reviews?
Proposed § 683.420(a) describes the
steps and procedures that must be taken
by grant recipients to resolve findings at
the subrecipient level. For formula
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funds, sec. 184(a) of WIOA requires
States to use the procedures they have
in place for other Federal grant
programs or, in the absence of such
procedures, write standards for this
program. Paragraph (a)(2) states that
non-formula grant recipients must have
written monitoring and resolutions
procedures that adhere to the Uniform
Guidance governing monitoring of
subrecipients. All recipients must
ensure that the rules governing the use
of WIOA funds are being followed,
including adherence to cost categories
and cost limitations. Proposed
§ 683.420(b) also describes the processes
the Department will use to resolve
findings of its direct grant recipients,
and proposed paragraph (c) describes
the processes to resolve findings
regarding the non-discrimination
provisions in sec. 188 of WIOA.
Section 683.430 How does the
Secretary resolve investigative and
monitoring findings?
This proposed section describes the
actions the Secretary will take to resolve
findings. This section also describes the
process when the Grant Officer agrees
that the recipient’s actions are sufficient
to resolve a finding and when they are
not satisfactory. This proposed section
implements the requirements of sec.
184(a)(7) of WIOA. Proposed
§ 683.430(b) states that audits from 2
CFR part 200 will be resolved through
the Grant Officer resolution process
described in proposed § 683.440.
Section 683.440 What is the Grant
Officer resolution process?
This proposed section describes the
Grant Officer’s resolution process when
dissatisfied with the actions taken by
the grant recipient to resolve findings.
This process involves the issuance of an
Initial Determination followed by a
period for informal resolution which
allows the recipient to work with the
Department to provide the necessary
documentation or take certain action to
reach a resolution. At the end of that
period, the Grant Officer issues a Final
Determination with findings listing any
unresolved issues, establishing any
debts, and listing required corrective
actions, as well as offering the
opportunity for a hearing. This process
is unchanged from the process under
WIA.
6. Subpart E—Pay-for-Performance
Contract Strategies
Introduction
WIOA’s Pay-for-Performance
provisions were designed to provide
flexibility at the local level in an effort
to infuse the system with more
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innovation, improve results for
participants, and reward providers who
deliver outstanding results. This
regulatory proposal builds on the
Department’s experience with
innovations and evidence-based work
funded under the Workforce Innovation
Fund and other Federally authorized
activities. Moreover, the statute
authorizes States to use non-Federal
funds to establish incentives for Local
Boards to implement WIOA Pay-forPerformance contract strategies. We
encourage States to adopt evidencebased approaches and innovate in the
way they deliver services to participants
in order to improve outcomes, and
recognize that WIOA Pay-forPerformance contracting strategies,
while still experimental, are one
promising method to do so.
A performance-based contract is a
contracting strategy that establishes
specific benchmarks that must be
achieved in order for the contractor to
receive payment. The WIOA Pay-forPerformance contracts are a specific
form of contracting that, as authorized
by WIOA, have six distinct
characteristics: (1) They must provide
adult training services described in sec.
134(c)(3) of WIOA or youth activities
described in sec. 129(c)(2) of WIOA; (2)
they must specify a fixed amount that
will be paid to the service provider
based on the achievement of specified
levels of performance on the
performance outcomes in sec.
116(b)(2)(A) of WIOA within a defined
timetable; (3) the performance outcomes
achieved must be independently
validated using high-quality, reliable,
and verified data; (4) outcomes must be
reported in accordance with sec.
116(d)(2)(K) of WIOA; (5) pursuant to
sec. 3(47)(A) of WIOA, bonuses may be
built into WIOA Pay-for-Performance
contracts so long as such bonuses are
used to expand the contractor’s capacity
to provide effective training; and (6)
there may be an extended period of
availability to expend funds under Payfor-Performance contract strategies.
Additionally, the funds obligated for
WIOA Pay-for-Performance contract
strategies are limited to 10 percent of
the total of the local adult and
dislocated worker allotments provided
under sec. 133(b) of WIOA, and 10
percent of the local youth allotment
provided under sec. 128(b) of WIOA.
The WIOA Pay-for-Performance
contract strategy is one of several
innovative strategies WIOA adopts to
place a higher emphasis on performance
outcomes and provider accountability,
drive better results, and incorporate
rigorous evaluation and evidence-based
practice into the delivery of workforce
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services. The Department intends to
support this contracting approach by
incorporating WIOA Pay-forPerformance into its WIOA performance
reporting requirements for States in
which local areas are adopting such a
contracting approach.
The WIOA Pay-for-Performance
contract strategy can benefit local areas,
job seekers, and business customers
when used to support interventions that
have a high probability of success based
on prior evidence; have measurable
outcomes supported with authoritative
data and strong evaluation
methodologies; and are overseen by
experienced managers that have
flexibility to adjust their approach.
Given the heavy emphasis that WIOA
Pay-For-Performance authorities place
on outcome-based payment and
independent validation, the quality of
local area data and data systems should
be of high enough quality to be able to
(1) reliably and validly establish
appropriate performance benchmarks
for the target population, and (2)
support independent validation of
actual performance outcomes.
In particular, in order for these
contracting mechanisms to work
effectively and efficiently, they must
incorporate measures to prevent or
account for potential ‘‘creaming’’ by
service providers, and strong data
systems are essential to this function.
The use of outcome data from
comparison groups—substantially
similar populations who are not
receiving services through the
provider—is one potential method to
minimize creaming. Another potential
method adopted by WIOA to address
creaming is the use of a statistical
adjustment model for (1) the
establishment of performance targets,
and (2) the adjustment of actual
performance based on economic
conditions and the characteristics of the
participants. In either case, the use of
valid and reliable baseline data will
help to inform appropriate performance
targets and that strong data systems are
necessary to support this approach.
Additionally, it is important to engage
in a feasibility analysis before engaging
in a WIOA Pay-for-Performance
contract, and that these analysis should
be built into a WIOA Pay-forPerformance contract strategy. Such a
feasibility analysis could include items
like assessing the availability and
quality of necessary data, including the
source and cost of such data;
determining the target population to be
served; determining the availability of
competent providers; whether any other
additional professional services are
required to support the execution of the
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contract; and reviewing other
operational factors that would affect the
feasibility of the contract.
The Department is soliciting
comments on the appropriate strategies
to implement different varieties of Pay
for Performance contracts, including
issues involving what components
should be included in a Pay-forPerformance contracting strategy; what
factors should be considered in a
feasibility analysis; which entities
should be eligible to enter into these
contracts; how different varieties of
contracts should be structured; how to
best establish baseline performance
information for target populations
served; how best to prevent or account
for creaming; the best methods to
account for the relative and absolute
risk to government, the contractor, and
other stakeholders when setting
payment terms; how best to balance the
total cost to government against bonus
and incentive payments included in the
contract and potential outcome
improvements for participants; how
comprehensive services can be provided
in a Pay-for-Performance contract
context; and how to facilitate the
participation of small service providers.
Because of the requirements
contained in statute, the Department is
considering how best to incorporate
reporting into performance and fiscal
information collection requests, which
will be included in the performance and
fiscal PRA packages, or whether a
separate information collection is
needed. We welcome comments
regarding the burden of additional
reporting requirements, such as
specifics about local areas utilizing payfor-performance contract strategies; the
service providers, the amount of
contracts, duration, and monitoring and
evaluation findings. The Department
expects to put performance and
implementation requirements in place
in the future.
Section 683.500 What is a Workforce
Innovation and Opportunity Act Payfor-Performance contract strategy?
This proposed section describes the
components of a WIOA Pay-forPerformance contract strategy and
describes WIOA Pay-for-Performance
contract as a specific type of
performance-based contract. It draws a
distinction between the WIOA Pay-forPerformance contract itself and the
broader goals and strategies surrounding
it, which are the contracting strategy.
Local area WIOA Pay-for-Performance
contract strategies must include: (1)
Identification of the problem space and
target populations for which a local area
will pursue a WIOA Pay-for-
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Performance contract; (2) the outcomes
the local area would hope to achieve
through a Pay-for-Performance contract
relative to baseline performance; (3) the
acceptable cost associated with
implementing such a strategy; (4) a
feasibility study to determine whether
the service delivery strategy to be
funded is suitable for a WIOA Pay-forPerformance contracting strategy; (5)
independent validation of the
performance outcomes achieved under
each contract within the strategy prior
to payment occurring; and (6) a
description of how the local area will
reallocate funds to other activities under
the contract strategy in the event a
service provider does not achieve
performance benchmarks under a WIOA
Pay-for-Performance contract.
The Department will issue additional
guidance to both State and local areas
on the development of the broader Payfor-Performance contract strategy,
including the scope and minimum
requirements of the required feasibility
study.
Section 683.510 What is a Workforce
Innovation and Opportunity Act Payfor-Performance contract?
This proposed section defines the
requirements associated with a WIOA
Pay-for-Performance contract, which
would be awarded under a WIOA Payfor-Performance contract strategy.
Paragraph (a) identifies a WIOA Payfor-Performance contract strategy as a
type of performance-based contract. A
performance-based contract is a
contracting mechanism that establishes
specific benchmarks that must be
achieved in order for the contractor to
receive payment. Performance-based
contracting in general is defined and
discussed in subpart 37.6 of the Federal
Acquisition Regulation.
Paragraph (b) articulates that WIOA
Pay-for-Performance contracts can only
be used when they are part of a broader
WIOA Pay-for-Performance Contract
Strategy described in § 683.500.
To be consistent with past practice
and with the Uniform Guidance at 2
CFR part 200, proposed paragraph (c)
prohibits the use of cost-plus percentage
contracts in WIOA Pay-for-Performance
contracts.
The specifications in proposed
paragraphs (d) through (f) regarding
eligible service providers, structure of
payments, target populations, and
program elements are derived directly
from the statute, at WIOA secs. 3(47),
129(c)(1)(D), 129(c)(2), 134(c)(3), and
134(d)(1)(iii). Proposed paragraph (e)
specifically requires that the
performance elements that must be
included in any WIOA Pay-for-
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Performance contract are the primary
indicators of performance described in
sec. 116(b)(2)(A) of WIOA and further
defined in proposed § 677.155. These
include:
i. The percentage of program
participants who are in unsubsidized
employment during the second quarter
after exit from the program;
ii. the percentage of program
participants who are in unsubsidized
employment during the fourth quarter
after exit from the program;
iii. the median earnings of program
participants who are in unsubsidized
employment during the second quarter
after exit from the program;
iv. the percentage of program
participants who obtain a recognized
post-secondary credential, or a
secondary school diploma or its
recognized equivalent (subject to sec.
116(b)(iii) of WIOA), during
participation in or within 1 year after
exit from the program;
v. the percentage of program
participants who, during a program
year, are in an education or training
program that leads to a recognized postsecondary credential or employment
and who are achieving measurable skill
gains toward such a credential or
employment; and
vi. the indicators of effectiveness in
serving employers established pursuant
to sec. 116(b)(iv) of WIOA.
Proposed paragraph (h) states that
under WIOA Pay-for-Performance
contracts, bonus payments and/or
incentive payments are authorized to be
paid to the service providers who enter
into the WIOA Pay-for-Performance
contracts. Such bonus payments must
be used to expand the contractor’s
capacity to provide effective training.
These payments are authorized by sec.
3(47)(A) of WIOA. Incentive payments
must be consistent with incentive
payments for performance-based
contracting as described in the Federal
Acquisition Regulation. WIOA Pay-ForPerformance contracts may also utilize
positive and negative incentives to other
forms of performance-based contracts.
To be consistent with performancebased contracting and in alignment with
WIOA Pay-for-Performance contract
characteristics, such as recognizing high
performers and providing boards with
flexibility to make adjustments,
incentive payments should be based on
the total and relative amount of risk
incurred by the service provider or
contractor versus that incurred by the
local area or other stakeholders.
Because the Department is
responsible for reporting on local
outcomes annually to Congress, as well
as providing recommendations for
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improvements in and adjustments to
WIOA Pay-for-Performance contract
strategies, proposed paragraph (i)
requires specific reporting by the local
areas to the State regarding the
performance outcomes achieved by the
service providers that enter into WIOA
Pay-for-Performance contracts.
Additionally, proposed paragraph (j)
requires independent validation of a
contractor’s achievement of
performance benchmarks under a WIOA
Pay-for-Performance contract, as
required by sec. 3(47)(B) of WIOA, and
requires that this validation be based on
high-quality, reliable, and verified data.
The Secretary will issue guidance
related to standards for independent
evaluation as part of its Pay-forPerformance guidance to States and
local areas.
Paragraph (k) indicates that the
Secretary may issue additional guidance
related to use of WIOA Pay-forPerformance contracts.
Under WIA, many Workforce
Development Boards utilized elements
of performance-based contracts with
training providers. These contracts
incorporated performance outcomes that
contractors were required to meet to
obtain payment. However, these
contracts did not contain required
elements of a WIOA Pay-forPerformance contract articulated in this
section. The Department encourages
local areas to refocus these traditional
performance-based contracts to place an
emphasis on the contractor achieving
outcomes like participants obtaining
and retaining good jobs, rather than
outputs like the number of people
served. Also, the provision for the
inclusion of bonus payments is limited
to WIOA Pay-For-Performance
contracts. Contracts that are not
executed under the WIOA Pay-ForPerformance contracting authority may
continue to include performance
incentives, either positive or negative or
both, in compliance with the Federal
Acquisition Regulation. Workforce
Development Boards may continue to
use performance-based contracts that
are not WIOA Pay-for-Performance
contracts. The 10 percent limitation
provisions in secs. 129(c)(1)(D) and
134(d)(1)(A)(iii) of WIOA only apply to
WIOA Pay-for-Performance contract
strategies, including WIOA Pay-forPerformance contracts.
Section 683.520 What funds can be
used for Workforce Innovation and
Opportunity Act Pay-for-Performance
contract strategies?
This proposed section restates the
WIOA requirements that funds allocated
under secs. 133(b)(2) and (3) of WIOA
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can be used for WIOA Pay-forPerformance contract strategies
providing adults and dislocated worker
training, and funds allocated under sec.
128(b) of WIOA can be used for WIOA
Pay-for-Performance contract strategies
providing youth activities. No more
than 10 percent of the total local adult
and dislocated worker allotments can be
expended on the implementation of
WIOA Pay-for-Performance contract
strategies for adult training services
described in sec. 134(c)(3) of WIOA. No
more than 10 percent of the local youth
allotment can be expended on the
implementation of WIOA Pay-forPerformance contract strategies for
youth training services and other
activities described in secs. 129(c)(1)
and (c)(2) of WIOA. There is no limit on
the use of funds for typical
performance-based contracts, as defined
in the Federal Acquisition Regulation.
The 10 percent limits apply only to
those performance-based contracts that
are WIOA Pay-for-Performance contract
strategies as defined above.
Section 683.530 How long are funds
used for Workforce Innovation and
Opportunity Act Pay-for-Performance
contract strategies available?
Section 189(g)(2)(D) of WIOA
specifies that funds used for WIOA Payfor-Performance contract strategies are
available until expended. This allows
local areas to structure contracts that
include time-intensive service delivery
strategies and/or that structure
payments based on outcomes that may
take longer to achieve, measure, and
validate than the typical 2-year funding
availability of local area funds. Funds
that are obligated but not expended due
to contractor not achieving the levels of
performance specified in a WIOA Payfor-Performance contract may be
reallocated for further activities related
to WIOA Pay-for-Performance contract
strategies only. This also allows the
local area to realize one of the benefits
of performance-based contracting
strategies—the local area does not pay a
financial penalty for contracted services
that do not achieve the stated outcomes.
This provision gives the local area the
discretion to choose whether to use the
funds for these strategies, and if the
local area so chooses, the funds will
remain available until expended. This
will require new grant management
practices for local areas that choose to
carry out WIOA Pay-for-Performance
strategies. The Department will issue
guidance to explain these new practices
and we welcome comments with
suggestions on how to maximize the use
of these contract strategies and the
expanded availability of the funds.
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Section 683.540 What is the State’s
role in assisting local areas in using
Workforce Innovation and Opportunity
Act Pay-for-Performance contract
strategies?
This proposed section describes both
allowable and required State activities
related to WIOA Pay-for-Performance
contract strategies. The section indicates
that States may provide technical
assistance to local areas, including
assistance with structuring WIOA Payfor-Performance contracting strategies,
performance data collection, meeting
performance data entry requirements,
and identifying levels of performance.
This technical assistance can help local
areas move forward in using this
contracting strategy. Additionally, the
State may either conduct evaluations of
such strategies and/or provide technical
assistance to locals regarding the
importance of evaluation of Pay-forPerformance contract strategies. The
State and local areas may conduct their
own evaluations of the WIOA Pay-forPerformance contracts, or procure an
independent evaluator. The Department
welcomes comments regarding use of
independent evaluators and whether the
cost of such evaluations is feasible
within the amount of funds available to
local areas for pay-for-performance
contracts. The Department also seeks
comments on how the Department
might facilitate local areas’ ability to
conduct evaluations. Further, sec.
116(h) of WIOA authorizes States to use
non-Federal funds to incentivize use of
WIOA Pay-for-Performance contract
strategies for the delivery of training
services or youth activities by Local
Boards.
This section also identifies required
activities States must undertake if a
local area implements at WIOA Pay-forPerformance contract strategy. Because
of the unique reporting requirements in
sec. 116(d)(2)(K) for WIOA Pay-forPerformance contracts, the performance
section of this proposed rule, as well as
the forthcoming Information Collection
Request package, will clearly articulate
the State’s responsibility to track and
report data on the primary indicators of
performance as well as the State and
local evaluations of the design of the
programs and performance of WIOA
Pay-for-Performance contract strategies
and, where possible, the level of
satisfaction with the strategies among
employers and participants benefitting
from the strategies.
The State must also monitor local
areas’ use of WIOA Pay-for-Performance
contracts to ensure compliance with the
following: The required elements listed
in § 683.500, the contract specifications
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in § 683.510, State procurement
policies, the 10 percent limitations, and
achievement of performance
benchmarks.
7. Subpart F—Grievance Procedures,
Complaints, and State Appeals
Processes
This subpart provides regulations
governing the grievance, complaint, and
appeals procedures that apply at the
State and local level and to
discretionary grantees under WIOA, as
well as appeals to the Secretary.
Providing clear rules for resolving
complaints and filing appeals promotes
transparency and fairness, which are
fundamental requirements of the
workforce investment system grant
process. Included are rules governing
the appeals of local area nondesignation, denial or termination of
training provider eligibility, and appeals
of formula program participants who are
tested or sanctioned for the use of
controlled substances. Appeals of the
Governor’s imposition of sanctions for
substantial violations of fiscal or other
substantive requirements or
performance failures under WIOA title I
are also addressed. Finally, this subpart
explains the process of reporting
information and complaints involving
criminal fraud, waste, abuse, or other
criminal activity under WIOA.
Section 683.600 What local area, State
and direct recipient grievance
procedures must be established?
This proposed section requires local
areas, States, outlying areas, and direct
grant recipients of WIOA title I funds to
establish and maintain a procedure for
grievances and complaints, including
appeals as appropriate, and describes
what the procedure much include, as
required by WIOA sec. 181(c)(1). While
this section of WIOA does not require
outlying areas or direct grant recipients
to establish such procedures, the
Department has included them in this
section to ensure that all participants
receiving services under title I of WIOA
have the same opportunity to report and
receive relief from the negative actions
of the WIOA funded grantees.
This proposed section also clarifies
that allegations of violations of the nondiscrimination provisions of WIOA are
subject to the policies and procedures
described in 29 CFR part 37, which is
administered by the Department’s Civil
Rights Center, and that complaint and
grievance procedures related to Job
Corps are in part 686 of this title. This
section retains the same requirements
found at 20 CFR 667.600.
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Section 683.610 What processes does
the Secretary use to review grievances
and complaints of title I recipients?
This proposed section describes the
situations in which the Department will
review allegations, and the procedures
that the Secretary will use, that arise
through local, State, and other direct
recipient grievance procedures in
accordance with WIOA sec. 184(c)(2).
This section retains the same
requirements found at 20 CFR 667.610.
Section 683.620 How are complaints
and reports of criminal fraud and abuse
addressed under the Workforce
Innovation and Opportunity Act?
This proposed section provides the
requirements for reporting information
and complaints involving non-criminal
complaints and criminal fraud, waste,
abuse or other criminal activity through
the Department’s Incident Reporting
System to the Department’s Office of the
Inspector General. This section retains
the same requirements found at 20 CFR
667.630.
Section 683.630 What additional
appeal processes or systems must a
State have for the Workforce Innovation
and Opportunity Act program?
This proposed section describes the
processes and systems that a State must
establish to hear appeals of: Entities that
are denied initial or subsequent
designation as a local area; training
service providers that are denied
eligibility as providers of training
services; and WIOA title I subtitle B
participants who are subject to testing or
sanctions for the use of controlled
substances. The section restates the
WIOA appeal requirements in secs.
106(b)(5) (local area non-designation),
122 (training provider eligibility denial
or termination); 181(f) (participant
testing and sanctioning for use of
controlled substances).
Section 683.640 What procedures
apply to the appeals of non-designation
of local areas?
This proposed section describes the
procedures that apply when a State
Board denies an appeal for initial or
subsequent designation of a local area
made by a unit of local government or
grant recipient under § 683.630(a). This
section restates and implements the
appeal requirements required by WIOA
sec. 106(b)(5).
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Section 683.650 What procedures
apply to the appeals of the Governor’s
imposition of sanctions for substantial
violations or performance failures by a
local area?
This proposed section describes the
procedures that apply to appeals of the
Governor’s imposition of sanctions for
substantial violations of fiscal or other
substantive requirements of title I of
WIOA or of performance failures by
local areas.
8. Subpart G—Sanctions, Corrective
Actions, and Waiver of Liability
While technical assistance, oversight,
and monitoring are tools to ensure
compliance with program and funding
requirements, sanctions and corrective
action plans are necessary where those
tools fail. This subpart addresses
sanctions and corrective actions, waiver
of liability, advance approval of
contemplated corrective actions, as well
as the offset and State deduction
provision. Of particular note in this
subpart are the procedures for allowing
a waiver of liability or an offset from
other funds owed to the recipient. The
statutory provisions are largely
unchanged from those under WIA,
though the Uniform Guidance has
resulted in some changes to this
subpart.
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Section 683.700 When can the
Secretary impose sanctions and
corrective actions on recipients and
subrecipients of title I Workforce
Innovation and Opportunity Act funds?
This proposed section describes the
procedures and circumstances under
which the Department will impose
sanctions or take corrective actions, as
described in sec. 184(b) and (e), against
States, local areas, and grant recipients
and subrecipients. For actions other
than those under WIOA sec. 188(a), the
process outlined in § 683.440 will be
used before corrective actions or
sanctions are taken against direct
recipients. This section also gives the
Grant Officer the authority to take direct
action against local areas or other
subrecipients, which will also be done
using the process in § 683.440. This
section also clarifies that the procedures
described at 20 CFR part 677 will be
used to impose a sanction or corrective
action for a violation of sec. 116 of
WIOA. This section generally
implements sec. 184 of WIOA and
retains the same requirements found at
20 CFR 667.700. The Department seeks
comments on appropriate sanctions and
corrective actions in a variety of
circumstances.
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Section 683.710 Who is responsible for
funds provided under title I and
Wagner-Peyser?
This proposed section identifies the
recipient as the responsible party for
title I and Wagner-Peyser funds. For
local areas receiving funds, this section
explains how to identify the responsible
party. Where a planning region includes
two separate units of local government,
the CEO of each unit of local
government would be the responsible
party. The general rule of recipient
responsibility arises from the Uniform
Guidance, while the rules pertaining to
local areas come from WIOA sec. 184.
Section 683.720 What actions are
required to address the failure of a local
area to comply with the applicable
uniform administrative provisions?
This proposed section requires the
Governor to take corrective action and
impose sanctions on a local area if it
fails to comply with the requirements
described in the section. This section
also describes the local area’s appeal
rights and actions the Secretary may
take if the Governor fails to monitor and
certify local areas’ compliance or
promptly take corrective action to bring
the local area into compliance. The
requirements in this section are taken
from WIOA sec. 184.
Section 683.730 When can the
Secretary waive the imposition of
sanctions?
This proposed section permits a
recipient to request a waiver of liability,
and describes the factors the Grant
Officer will consider when determining
whether to grant the request. This
provision implements sec. 184(d) of
WIOA and retains the same
requirements found at 20 CFR 667.720.
Section 683.740 What is the procedure
to handle a recipient of title I Workforce
Innovation and Opportunity Act funds’
request for advance approval of
contemplated corrective actions?
This proposed section describes the
procedures which a recipient must use
to request advance approval of
corrective action from the Department.
It describes the factors the Grant Officer
will consider and when advance
approval may be appropriate. This
provision implements sec. 184(d) of
WIOA and retains the same
requirements found at 20 CFR 667.730.
Section 683.750 What procedure must
be used for administering the offset/
deduction provisions of the Workforce
Innovation and Opportunity Act?
This proposed section outlines the
steps that must be taken in order for the
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Department to consider and allow an
offset or deduction of a debt, including
the offset rules for direct recipients and
the rule for a State making a deduction
from a subrecipient’s PY allocation.
This section implements the
requirements of WIOA sec. 184(c)(2).
9. Subpart H—Administrative
Adjudication and Judicial Review
This subpart specifies those actions
which may be appealed to the
Department’s Office of Administrative
Law Judges (OALJ), and the rules of
procedure and timing of decisions for
OALJ hearings as well as the process for
judicial review by a United States
Circuit Court of Appeals. This subpart is
similar to that currently in effect under
WIA because the WIOA statute itself
had only minor changes to the
requirements in this subpart.
Section 683.800 What actions of the
Department may be appealed to the
Office of Administrative Law Judges?
This proposed section outlines the
actions that can be appealed through an
Administrative Law Judge (ALJ) under
WIOA sec. 186(a), including a
determination to not award financial
assistance or a corrective action or
sanction against a recipient or
subrecipient. This section describes the
appeal deadlines and the contents that
an applicant is required to include in its
appeal request. Paragraph (e) states that
these procedures also apply when
parties fail to reach resolution through
the process described in § 683.840.
§ 683.810 What rules of procedure
apply to hearings conducted under this
subpart?
This proposed section adopts the
rules of procedure for hearings
conducted before the OALJ found at 29
CFR part 18, with some clarifications.
This section also describes the
Secretary’s subpoena authority under
WIOA. Finally, this section sets forth
the burdens of production and
persuasion in hearings conducted under
this subpart. Per paragraph (c), the grant
officer has the initial burden of
production, which is satisfied by the
submission of an administrative file.
After the grant officer submits the
administrative file, the party seeking to
overturn the Grant Officer’s
determination has the burden of
persuasion. This section retains the
same requirements found at 20 CFR
667.810.
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Section 683.820 What authority does
the Administrative Law Judge have in
ordering relief as an outcome of an
administrative hearing?
This section, which applies to all
discretionary grants issued under
subpart D of title I of WIOA, specifies
the remedies that an ALJ may award.
Paragraph (a) applies to cases other than
grant selection cases and is unchanged
from the WIA regulation.
Paragraph (b) specifies the remedies
for grant selection cases, and is largely
drawn from the Senior Community
Service Employment Program remedies
provision found at 20 CFR 641.470. This
section gives the Grant Officer
discretion to ensure that project
beneficiaries (i.e., an entity awarded
financial assistance) will not be unduly
negatively impacted by the
implementation of remedies resulting
from a grant selection appeal.
Proposed paragraphs (b)(1) and (2)
state that upon receipt of an ALJ finding
the application review process must be
corrected or that an appealing entity
should have been awarded funding, the
Grant Officer will be required to take
certain steps to determine whether the
funding must be awarded to that entity.
In determining whether the funds will
be awarded to the appealing entity, the
Grant Officer must take into account
whether such a move would be in the
interest of project beneficiaries and
whether it would cause undue
disruption to the participants and the
program. In the event the Grant Officer
determines that the appealing entity
will not receive the funds, entities
without an approved Negotiated
Indirect Cost Rate Agreement (NICRA)
will receive reasonable application
preparation costs (under 2 CFR 200.460,
for entities with an approved NICRA,
application preparation costs may be
included in their indirect cost pool and
therefore are recouped from their
indirect costs to other Federal grant
awards). In the event that the Grant
Officer determines that the appealing
entity will receive the funds, that entity
will only receive funds that have not yet
been obligated by the current grantee.
Finally, the Grant Officer will provide
notification to the current grantee
within 10 days of its decision, and that
the current grantee may appeal the
Grant Officer’s determination using the
appeal procedures described in 20 CFR
683.800.
Section 683.830 When will the
Administrative Law Judge issue a
decision?
This section describes the timeframe
in which an ALJ must make a decision
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to avoid any unnecessary delays. It also
describes the parties’ appeal rights, as
stated in WIOA sec. 186(b).
Section 683.840 Is there an alternative
dispute resolution process that may be
used in place of an Office of
Administrative Law Judges hearing?
This section describes the available
alternative an entity may use to seek
resolution other than a hearing process.
The outcome of this process is
considered the equivalent of the final
decision of an ALJ. The purpose of this
provision is to offer entities a less
formal, less burdensome, and more
interactive appeal process.
Section 683.850 Is there judicial
review of a final order of the Secretary
issued under the Workforce Innovation
and Opportunity Act?
This section outlines the steps a party
to a final order must take to obtain
judicial review in a United States
Circuit Court of Appeals of any decision
made by the Secretary under WIOA sec.
184 or 186, as well as the deadlines for
seeking review. This provision
summarizes the requirements of WIOA
sec. 187.
H. Part 684—Indian and Native
American Programs Under Title I of the
Workforce Innovation and Opportunity
Act
1. Introduction
Because sec. 166 of WIOA retains
many of the requirements of sec. 166 of
WIA, the Department has drawn on the
WIA regulations, found at 20 CFR part
668, in drafting the regulations for sec.
166 of WIOA. Consequently, many of
the sections in this part retain the
requirements found in their parallel
sections of the WIA regulations. This
preamble details the Department’s
reasons for changing any of the previous
requirements under the WIA regulations
on a paragraph by paragraph basis.
However, some changes to the
requirements under the WIA regulations
affect so many paragraphs that they are
noted in the introduction to the
preamble instead of noting them every
time that they occur.
First, proposed part 684 seeks to
streamline the competitive process for
awarding the Indian and Native
American (INA) program grants. Section
166 of WIOA is unusual in that it
requires both that grants be awarded
through a competitive process and that
grantees submit a 4-year plan (WIOA
secs. 166(c) and 166(e)). Under the WIA
regulations, the competition was
separate from the plan. These WIOA
regulations propose to streamline the
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grant award process to ease the
administrative redundancy inherent in
the WIA regulations. The Department
will no longer designate grantees or
require a notice of intent. Moreover, the
proposed WIOA regulations have
incorporated the 4-year plan into the
competitive grant award process. The
Department anticipates that these
changes will help streamline the process
for awarding grants. These proposed
changes should result in less of an
administrative burden on both
applicants and the Department.
Additionally, although WIA had a 2year grant cycle for grantees under sec.
166, WIOA has established a 4-year
grant cycle (WIOA secs. 166(c) and
166(e)). Consequently, all references to
the grant cycle or plan in the proposed
WIOA regulations refer to a 4-year cycle
or 4-year plan.
Finally, to ensure that the terms used
to discuss the populations and entities
that will be served, as described in sec.
166(d) of WIOA, are consistent
throughout the proposed regulation, the
Department proposes to define the term
‘‘INA’’ to mean American Indian, Native
American, Alaska Native, and Native
Hawaiian in proposed § 684.130. This
term provides an efficient way to ensure
inclusivity and consistency in this part.
2. Subpart A—Purposes and Policies
Section 684.100 What is the purpose
of the programs established to serve
Indians and Native Americans under the
Workforce Innovation and Opportunity
Act?
Proposed § 684.100 describes the
purpose of WIOA for the INA programs
authorized by WIOA sec. 166.
Proposed § 684.100(a) retains the
same requirements found in the WIA
regulations at 20 CFR 684.100(a) except
that § 684.100(a)(2) includes
entrepreneurial skills as part of the
purpose of the program in order to
implement and carry out the
entrepreneurial skills requirement in
sec. 166(a)(1)(B) of WIOA.
Proposed § 684.100(b) describes the
principle means of accomplishing the
purpose described in § 684.100. Because
the Department has determined that no
substantial changes were necessary to
implement WIOA, the proposed
regulation retains the same
requirements found in the WIA
regulations at 20 CFR 668.100(b) with
the exception that it references the
principles of the Indian SelfDetermination and Education
Assistance Act (ISDEAA). This reference
to the principles of the ISDEAA directly
aligns with sec. 166(a)(2) of WIOA.
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Section 684.110 How must Indian and
Native American programs be
administered?
Proposed § 684.110(a) describes how
the Department will administer the INA
program. Because no changes were
necessary to this section to implement
WIOA, this proposed section retains the
same requirements as the WIA
regulations at 20 CFR 668.120.
Proposed § 684.110(b) states that the
Department will follow the
Congressional declaration of policy set
forth in the Indian Self-Determination
and Education Assistance Act
(ISDEAA), at 25 U.S.C. 450a, as well as
the Department of Labor’s American
Indian and Alaska Native policies in
administering these programs. These
policies include DOL’s ‘‘American
Indian and Alaska Native Policy,’’ dated
July 29, 1998 and the ‘‘Tribal
Consultation Policy’’ published in the
Federal Register on December 4, 2012
(77 FR 71833). This is consistent with
WIOA because WIOA sec. 166(a)(2)
incorporates the principles of the
ISDEAA and the other two policies are
important works of guidance on
consultation and coordination with INA
parties.
Proposed § 684.110(c) and (d)
describe the trust responsibilities of the
Federal government and the designation
of the Division of Indian and Native
American Programs (DINAP) within
ETA. Because the Department has
determined that no changes were
necessary to these regulations to
implement WIOA, these proposed
regulations retain the same
requirements at 20 CFR 668.120(c) and
(d).
Proposed § 668.120(e) describes the
establishment of administrative
procedures of the INA programs. 20 CFR
668.120(e) required that the Department
utilize staff with a particular
competence in this field for
administration of the program. Although
the Department is still committed to the
utilization of competent staff, the
proposed regulation does not retain this
requirement as this language was not
included in WIOA. The rest of the
proposed regulation retains the same
requirements at 20 CFR 668.120(e)
because the Department has determined
that no changes were necessary to
implement WIOA.
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Section 684.120 What obligation does
the Department have to consult with the
Indian and Native American grantee
community in developing rules,
regulations, and standards of
accountability for Indian and Native
American programs?
Proposed § 684.120 describes the
obligation the Department has in
consulting with the INA grantee
community in developing rules,
regulations, and standards of
accountability for INA programs. This
proposed section retains the same
requirements found in the WIA
regulations at 20 CFR 668.130, except
that it adds new language referencing
the Department’s tribal consultation
policy, which was published in the
Federal Register on December 4, 2012,
and Executive Order (E.O.) 13175 of
November 6, 2000, which requires
Federal agencies to engage in regular
and meaningful consultation and
collaboration with tribal officials in the
development of Federal policies that
have tribal implications and are
responsible for strengthening the
government-to-government relationship
between the United States and Indian
tribes. Section 166(i)(2) of WIOA states
that the Secretary must consult with
Indian tribes, tribal organizations,
Alaska Native entities, Indian-controlled
organizations serving Indians, and
Native Hawaiian organizations in
establishing regulations to carry out
WIOA sec. 166 and develop a funding
distribution plan for the INA program.
In addition, sec. 166(i)(4)(A) of WIOA
states that the Secretary must establish
a Native American Employment and
Training Council to facilitate
consultation and provide advice on the
operation and administration of the
WIOA INA programs, including the
selection of the individual appointed as
the head of DINAP. While it is not
specified in WIOA, by referencing the
tribal consultation policy in this
proposed section, the Department
proposes that the consultation
requirements referenced in WIOA must
be coordinated with the Department’s
tribal consultation policy published in
the Federal Register on December 4,
2012 and E.O. 13175 of November 6,
2000. However, the Department notes
that although these consultation policies
must be coordinated, they are also
separate. The Native American
Employment and Training Council
represents all of the INA grantee
community but it does not necessarily
serve as the primary vehicle through
which the Federal government fulfills
its obligation to consult with tribes.
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Section 684.130 What definitions
apply to terms used in the regulations
in this part?
Proposed § 684.130 provides
definitions to terms used in proposed
part 684 that have not been defined in
secs. 3 or 166 of WIOA or § 675.300 of
these proposed regulations. Because the
Department has determined that no
changes were necessary to the
definitions used in 20 CFR 668.150, we
have retained those definitions as
included in the WIA regulations
without change. These include the
definitions for the terms ‘‘DINAP,’’
‘‘Governing body,’’ ‘‘Grant Officer,’’ and
‘‘Underemployed.’’ The Department has
not retained the term ‘‘NEW’’ because it
is not used in this proposed subpart.
However, to provide additional clarity
in these proposed regulations, the
Department has included definitions for
nine additional terms.
Alaska Native-Controlled
Organization—This definition clarifies
that an entity applying for WIOA sec.
166 funds as an Alaska NativeControlled Organization must have a
governing board in which 51 percent of
the members are Alaska Natives, to
ensure that entities that receive WIOA
sec. 166 funds as an Alaska NativeControlled Organization are comprised
of representatives from the communities
they serve.
Carry-In—The Department is
providing a definition of carry-in to
clarify our process at § 684.254(d) for
reallocating funds unspent at the end of
a PY. This definition is consistent with
current practice and the process for
reallocating funds is explained in more
detail in the preamble for § 684.270(d).
High-Poverty Area—A definition of
‘‘high-poverty area’’ has been included
to reflect the inclusion of the phrase in
WIOA. Section 129(a)(2) of WIOA
provides a special rule for the youth
program that includes the term ‘‘highpoverty area’’ but does not define that
term. This proposed part references sec.
129 of WIOA in implementing the youth
INA program. Therefore the Department
proposes to provide a definition for
high-poverty area in these regulations.
The Department has chosen to employ
the American Community Survey 5Year Data because it is the only source
data that uniformly collects the income
level of individuals across all
geographic service areas in the United
States.
Incumbent Grantee—This term is
used in several places in the regulations
including the regulations that define
which entities are eligible to apply for
a WIOA sec. 166 grant. Therefore the
Department is providing a definition to
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make clear which entities are
considered incumbent grantees as
referred to in the regulations.
INA—Throughout proposed part 684,
the Department refers to American
Indians, Native Americans, Alaska
Natives, and Native Hawaiians. To
ensure consistency and inclusiveness
the Department decided to use a single
term, INA, when referencing all four
groups.
Indian-Controlled Organization—This
definition clarifies the qualifications for
an organization to be an IndianControlled Organization and is intended
to ensure that entities that receive
WIOA sec. 166 funds as Indiancontrolled entities are comprised of
representatives from the communities
they serve.
Native Hawaiian-Controlled
Organization—This definition clarifies
that an entity applying for WIOA sec.
166 funds as a Native Hawaiiancontrolled organization must have a
governing board in which 51 percent of
the members are Native Hawaiians. The
purpose is to ensure that entities that
receive WIOA sec. 166 funds as a Native
Hawaiian entity are comprised of
representatives from the communities
they serve.
Total Funds Available—This term is
used in the definition of carry-in. The
Department is providing a definition to
clarify what is meant by total funds
available as it affects the amount of
carry-in a grantee may have and
whether such carry-in is considered
excessive. Available funds do not
include carry-in funds. This definition
is consistent with current practice and
the process for reallocating funds is
explained in more detail in the
preamble for § 684.270(d).
3. Subpart B—Service Delivery Systems
Applicable to Section 166 Programs
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Section 684.200 What are the
requirements to apply for a Workforce
Innovation and Opportunity Act grant?
Proposed § 684.200(a)(1) establishes
the eligibility requirements to apply for
a WIOA sec. 166 grant. Because the
Department has determined that no
changes were necessary to this section
to implement WIOA, this proposed
section retains the same requirements
found at the WIA regulations at 20 CFR
668.200(a)(1), except that we have
required that all members of a
consortium must be one of the listed
entities to insure the input, authority,
and autonomy of the INA entities listed
in sec. 166(c) of WIOA. To be eligible,
entities must also meet the requirements
of § 684.200(c); § 684.200(a) just
provides further detail about the legal
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shape eligible entities might take. For
example, the application for a tribe
might be submitted by the tribal
government. Additionally, a non-profit
might be an Indian-controlled
organization.
Proposed § 684.200(a)(2) describes a
$100,000 minimum funding award
amount that is required in order to
receive a WIOA sec. 166 grant. There is
an exception for INA grantees
participating in the demonstration
program under Public Law 102–477;
under this exception, if all resources to
be consolidated under Public Law 102–
477 total $100,000, only $20,000 must
be derived from sec. 166 funds. Under
proposed § 684.200(a)(2), there is no
exception to the requirement that at
least $20,000 of all resources to be
consolidated under Public Law 102–477
must be derived from WIOA sec. 166
funds. Awards for less than $20,000 do
not provide sufficient funds to
effectively operate an employment and
training grant. Therefore, under WIOA,
all sec. 166 funding awards must be
equal to or greater than $20,000 in order
to apply for a grant under Public Law
102–477 except for incumbent Public
Law 102–477 grantees that are receiving
WIA funding as of the date of
implementation of WIOA. These
grantees will be grandfathered into the
program because the advantage of
requiring these grantees to meet the
$20,000 minimum does not outweigh
the advantages of allowing these
grantees to continue with programs that
have already been approved.
Proposed § 668.200(b) describes the
types of entities that may make up a
consortium. The proposed section
requires that each member of a
consortium meets the requirements. To
ensure that all INA grantees sufficiently
represent the interests of the INA
community, the Department has
decided to require that every member of
a consortium must meet the
requirements at proposed § 668.200(a).
Proposed § 684.200(b)(1) through (3)
describe the requirements for entities to
apply for WIOA sec. 166 funds as a
consortium. Because the Department
has determined that no changes were
necessary to this section to implement
WIOA, this proposed section retains the
same requirements found at 20 CFR
668.200(b)(1) through (3).
Proposed § 684.200(c) describes the
entities that are potentially eligible to
receive WIOA sec. 166 funds. Because
the Department has determined that no
changes were necessary to this section
to implement WIOA, this proposed
section retains the same requirements
found at 20 CFR 668.200(c).
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Proposed § 684.200(d) explains that
State-recognized tribal organizations
will be considered to be ‘‘Indiancontrolled’’ organizations for WIOA sec.
166 purposes, assuming they meet the
definition of an Indian-controlled
organization as defined at § 684.130.
The proposed section also states that
State-recognized tribes that do not meet
this definition but are grantees under
WIA will be grandfathered into WIOA
as Indian-controlled organizations.
State-recognized tribal organizations
that meet the definition of an Indiancontrolled organization can apply for a
WIOA sec. 166 grant because they
otherwise meet the eligibility
requirements for an Indian-controlled
organization, which ensures that they
are comprised of representatives of the
community they serve. State-recognized
tribes that are grantees under WIA may
be grandfathered in because allowing
grantees that have successfully provided
services to continue providing those
services is consistent with the objectives
of WIOA sec. 166.
Section 684.210 What priority for
awarding grants is given to eligible
organizations?
Proposed § 684.210(a) states that
Federally-recognized Indian tribes,
Alaska Native entities, or a consortium
of such entities will have the highest
priority to receive grants for those
geographic service areas in which the
Indian Tribe, Alaska Native entity, or a
consortium of such entities has legal
jurisdiction, such as an Indian
reservation, Oklahoma Tribal Service
Area (OTSA) or Alaska Native Village
Service Area (ANVSA). The Department
recognizes that Federally-recognized
tribes are sovereign governments that
often have reservation areas over which
they have legal jurisdiction.
Accordingly, consistent with current
practice, it is the Department’s position
that when a tribe has legal jurisdiction
over a geographic service area such as
an Indian reservation or OTSA, the
Department will award sec. 166 grants
to serve such areas to that tribe if it
meets the requirements for receiving a
grant.
Proposed § 684.210(b) states that if the
Department decides not to make an
award to an Indian tribe or Alaska
Native entity that has legal jurisdiction
over a service area—for example if a
Federally-recognized tribe is not eligible
to apply for a WIOA grant or does not
have the ability to administer Federal
funds—the Department will consult
with that tribe or Alaska Native entity
before selecting an entity to serve the
tribe’s legal jurisdictional area. As
described in the preamble to § 684.120,
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consultation with tribes and Alaska
Native entities about the service areas
over which they have legal jurisdiction
is integral to the principles of Indian
self-determination. However, to ensure
that the INA individuals residing in this
service area receive services,
§ 684.210(b) does not require prior
approval of the entity with legal
jurisdiction.
Proposed § 684.210(c) clarifies that
the priority described in paragraphs (a)
and (b) does not apply to service areas
outside the legal jurisdiction of an
Indian tribe or Alaska Native entity. The
Department does not believe that the
same priority is warranted outside the
legal jurisdiction of Indian tribes and
Alaska Native entities.
Section 684.220 What is the process
for applying for a Workforce Innovation
and Opportunity Act grant?
Proposed § 684.220(a) describes when
the competitive grant application
process takes place. The process
described aligns this proposed section
with the requirements at secs. 166(c)
and (e) of WIOA and with the
streamlining of the application process,
which is discussed in further detail in
the introduction to this proposed part.
Proposed § 684.220(b) provides
clarification on which applicants are
required to submit a 4-year plan, as
described at proposed § 684.710. The
Department has decided to exclude
entities that have been granted approval
to transfer their WIOA funds pursuant
to Public Law 102–477 from this
requirement because the intent of Public
Law 102–477 is to allow Federallyrecognized tribes and Alaska Native
entities to combine formula-funded
Federal grant funds, which are
employment and training-related, into a
single plan with a single budget and a
single reporting system.
Section 684.240 Are there any other
ways in which an entity may be
awarded a Workforce Innovation and
Opportunity Act grant?
Proposed § 684.240 describes other
ways in which an entity may be granted
an award under this proposed subpart if
areas would otherwise go unserved.
Section 684.250 Can an Indian and
Native American grantee’s grant award
be terminated?
Proposed § 684.250(a) states that a
grant award can be terminated for cause,
or due to emergency circumstances
under the Secretary’s authority at sec.
184(e) of WIOA. This proposed section
retains substantively the same
requirements found in the WIA
regulations at 20 CFR 668.290(a). The
Department notes that if a grant is
terminated under sec. 184(e) of WIOA,
the grantee must be given prompt notice
and opportunity for a hearing within 30
days after the termination.
Proposed § 684.250(b) describes the
circumstances under which an award
may be terminated for cause. Because
the Department has determined that no
changes were necessary to this section
to implement WIOA, this proposed
section retains the same requirements
found at 20 CFR 668.290(b).
Section 684.260 Does the Department
have to award a grant for every part of
the country?
Proposed § 684.260 states that the
Department is not required to provide
grant funds to every part of the country.
This proposed section retains similar
requirements in the WIA regulations at
20 CFR 668.294, with the exception that
the Department clarified that funds not
allocated to a service area will be
distributed to existing INA grantees
consistent with current practice.
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Section 684.230 What appeal rights are
available to entities that are denied a
grant award?
Section 684.270 How are Workforce
Innovation and Opportunity Act funds
allocated to Indian and Native American
program grantees?
Proposed § 684.230 describes the
appeal rights for entities that are denied
a grant award in whole or in part. There
is no appeal process specifically for sec.
166 grants; however, the Department
proposes to follow the appeal process
described at proposed §§ 683.800 and
683.840, which allow entities that are
denied a grant award an opportunity to
appeal the denial to the Office of the
Administrative Law Judges. Because the
Department has determined that no
changes were necessary to this section
to implement WIOA, this proposed
section retains the same requirements
found at 20 CFR 668.270.
Proposed § 684. 270(a) through (c)
describe how funds will be allocated to
INA grantees. Because the Department
has determined that no substantial
changes were necessary to this section
to implement WIOA, this proposed
section retains the same requirements
found at 20 CFR 668.296.
Proposed § 684. 270(d) states that the
Department may reallocate funds under
certain circumstances. This language
clarifies that excess carry-in will result
in the funding formula being adjusted in
future years to reflect the excess.
Additionally, there is no exception for
carry-in amounts in excess of 20 percent
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because these funds must be fully
expended.
Proposed § 684.270(e) describes the
funding resources the Department may
draw on for TAT purposes. The
proposed paragraph clarifies that the 1
percent of funding reserved under this
section is not the only source funding
for providing TAT for the INA program
grantees. This language is consistent
with current practice and is intended to
make clear that INA program grantees
may also access resources available to
other Department programs as needed.
4. Subpart C—Services to Customers
Section 684.300 Who is eligible to
receive services under the Indian and
Native American program?
Proposed § 684.300(a) describes who
is eligible to receive services under an
INA program. Because the Department
has determined that no changes were
necessary to this section to implement
WIOA, this proposed section retains the
same requirements found at 20 CFR
668.300(a), with the exception that the
language in § 684.300(a)(2) references
the definition of Alaska Native in sec.
166(b)(1) of WIOA.
Proposed paragraph (a)(1) leaves the
definition of ‘‘Indian’’ to the tribes and
local American Indian organizations
that receive grant funds to determine,
since WIOA does not define who is
eligible to receive services under sec.
166, and there are different opinions on
who is considered an Indian when
determining eligibility for employment
and training services. For instance some
grantees consider members of Staterecognized tribes as eligible individuals
while other grantees do not. Therefore,
the Department has left the decision of
defining who is an Indian to tribes and
organizations at the local level.
However, the Department requires that
a grantee’s definition must at least
include anyone who is a member of a
Federally-recognized tribe.
Proposed § 684.300(b) and (c) describe
additional eligibility requirements for
participants to receive services from the
INA program. Because the Department
has determined that no changes were
necessary to these sections to
implement WIOA, these proposed
sections retain the same requirements in
the WIA regulations found at 20 CFR
668.300(b).
Section 684.310 What are Indian and
Native American program grantee
allowable activities?
Proposed § 684.310(a) describes what
types of opportunities INA program
grantees must attempt to develop and
provide. This section incorporates the
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broad objectives referenced in sec.
194(1) of WIOA.
Proposed § 684.310(b) further defines
the employment and training services
that are allowable under sec. 166 of
WIOA. Because the Department has
determined that no changes were
necessary to this section to implement
WIOA, this proposed section retains the
same requirements found at 20 CFR
668.340(a).
Proposed § 684.310(c) references a
non-exhaustive list of career services
listed in WIOA. This language reflects
WIOA’s unified approach to the
provision of services.
Proposed § 684.310(d) defines followup services. The Department chose to
define follow-up services as including
counseling and supportive services for
up to 12 months after the date of exit for
consistency with current practice.
Unlike the follow-up services available
under sec. 134 of WIOA, the follow-up
services available under § 684.310 are
available for up to 12 months because of
the limited employment opportunities
available to participants in the sec. 166
program.
Proposed § 684.310(e) references the
non-exhaustive list of training services
available at WIOA sec. 134(c)(3). The
Department has referenced sec. 134(c)(3)
because this section includes good
examples of services that are allowable
activities for INA program grantees.
Proposed § 684.310(f) lists examples
of allowable activities specifically
designed for youth. The Department
references the program requirements for
the WIOA youth program because these
activities serve as good examples of
allowable activities for INA programs
targeting INA youth.
Proposed § 684.310(g) provides
examples of allowable activities for job
development and employment outreach.
Because the Department has determined
that no changes were necessary to this
section to implement WIOA, this
proposed section retains the same
requirements found in the WIA
regulations at 20 CFR 668.340(f).
Proposed § 684.310(h) describes
whether services can be overlapping
and/or sequential. Because the
Department has determined that no
changes were necessary to this section
to implement WIOA, this proposed
section retains the same requirements
found at 20 CFR 668.340(g).
Proposed § 684.310(i) states that
services may be provided to a
participant in any sequence based on
the particular needs of the participant.
This clarification is consistent with the
description of career services in
proposed § 678.425(b), which states that
services are provided to individuals
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based on individual needs, including
the seamless delivery of multiple
services to individual customers. There
is no required sequence of services.
Section 134(c)(3)(A)(iii) of WIOA
similarly clarifies that an individual is
not required to receive career services
prior to receiving training services.
Section 684.320 Are there any
restrictions on allowable activities?
Proposed § 684.320(a) and (b) describe
geographical restrictions on training
activities and restrictions on OJT
services. Because the Department has
determined that no changes were
necessary to these sections to
implement WIOA, these proposed
sections retain the same requirements
found at 20 CFR 668.350(a) and (b).
Proposed § 684.320(c) prohibits OJT
where an employer has exhibited a
pattern of certain conduct. Because the
Department has determined that no
substantial changes were necessary to
these section to implement WIOA, this
proposed section retains the same
requirements found at 20 CFR
668.350(c). However, to align
§ 684.320(c) with the language found at
sec. 194(4) of WIOA, the phrase
‘‘including health benefits’’ has been
included in § 684.320(c)(1), and
§ 684.320(c)(2) targets patterns of
violation instead of single violations.
Proposed § 684.320(d) through (g)
describe restrictions on the use of INA
grant funds. Because the Department
has determined that no changes were
necessary to these sections to
implement WIOA, these proposed
sections retain the same requirements
found at 20 CFR 668.350(d) through (g),
with citations and references updated to
be consistent with WIOA.
Section 684.330 What is the role of
Indian and Native American grantees in
the one-stop system?
Proposed § 684.330(a) describes the
required collaboration between INA
grantees and the one-stop system. The
Department recognizes that there are
areas in the U.S. where the Native
American population is so sparse that it
is not practical for WIOA grantees to be
actively involved in the local one-stop
system. Accordingly, WIOA only
requires grantees to be involved in those
local workforce investment areas where
an INA grantee conducts field
operations or provides substantial
services. In these areas, the INA grantee
must execute an MOU with the Local
Board or, at a minimum, be able to
demonstrate that it has made a good
faith effort to enter into such agreement.
Regardless of how sparse the Native
American community is in an area, and
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regardless of an executed MOU, it is
expected that, at a minimum, both the
INA grantee and the local one-stop
operator are familiar with each other’s
services and that information is
available at each other’s location, and
referrals, coordination, and coenrollment are encouraged. INA
grantees will be required to provide
details of their relationship with the
local one-stop operators as part of the 4year plan.
Proposed § 684.330(b) describes the
minimum provisions necessary in an
MOU between the INA grantee and a
local one-stop delivery system.
Proposed paragraph (b) lists information
required under WIOA sec. 121(c) and
includes additional requirements that
implement current policy.
Proposed § 684.330(c) describes when
an INA grantee is required to describe
its efforts to negotiate a MOU. This
information is necessary for determining
why the INA grantee has not been able
to negotiate an MOU and for alerting the
Department about what steps might be
taken to facilitate the negotiation of an
MOU.
Proposed § 684.330(d) describes the
application of the one-stop
infrastructure in the context of INA
programs. Proposed paragraph (d)
implements the statutory requirements
found at WIOA sec. 121(h)(2)(D)(iv).
Section 684.340 What policies govern
payments to participants, including
wages, training allowances or stipends,
or direct payments for supportive
services?
Proposed § 684.340(a) through (e)
describe the policies that govern
payments to participants. Because the
Department has determined that no
changes are necessary to these sections
to implement WIOA, these proposed
sections retain the same requirements
found at 20 CFR 668.370.
Section 684.350 What will the
Department do to strengthen the
capacity of Indnian and Native
American grantees to deliver effective
services?
Proposed § 684.350 describes what
the Department will do to strengthen the
capacity of INA program grantees to
deliver effective services. This proposed
section retains the same commitment to
provide necessary technical assistance
and training to INA program grantees as
found in the WIA regulations at 20 CFR
668.380.
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5. Subpart D—Supplemental Youth
Services
Section 684.400 What is the purpose
of the supplemental youth services
program?
Proposed § 684.400 describes the
purpose of the supplemental youth
services program.
Because the Department has
determined that no substantial changes
were necessary to this section to
implement WIOA, this proposed section
retains the same requirements found at
20 CFR 668.400.
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Section 684.410 What entities are
eligible to receive supplemental youth
services funding?
Proposed § 684.410 describes the
entities that are eligible to receive
supplemental youth services funding.
The amount of funding reserved for the
supplemental program makes it
impractical to fund all service areas in
the United States. Therefore the
Department proposes to limit funding
awards to eligible entities that serve
low-income youth residing on or near
their respective reservations, OTSAs or
ANVSAs or other legal jurisdictional
areas, or to eligible organizations that
are providing services on behalf of
entities with legal jurisdiction.
Section 684.420 What are the planning
requirements for receiving supplemental
youth services funding?
Proposed § 684.420 describes the
planning requirements for receiving
supplemental youth services funding.
Because youth funding is considered a
supplement to the adult funding, the
Department envisions that the strategy
for youth will not be extensive. This
proposed section also aligns the
planning requirements for the youth
supplemental services with the
streamlined application process, which
is described in more detail in the
introduction to this part.
Finally, the Department also
recognizes that awareness of one’s
culture and history is important to
having a healthy self-identity and selfesteem. Therefore, the Department
supports youth activities that teach INA
to incorporate culture and traditional
values since it is not fully explored in
the public school system and because it
plays a role in transitioning INA youth
to become successful adults.
Section 684.430 What individuals are
eligible to receive supplemental youth
services?
Proposed § 684.430(a)(1) through (3)
provide the eligibility requirements for
individuals to receive supplemental
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youth services. Individuals must be lowincome, except that 5 percent of
individuals enrolled in a grantee’s youth
program during a PY need not meet the
definition of low-income. Individuals
included under this 5 percent exception
do not need to meet any requirements
other than those listed under proposed
§ 684.430(a)(1) and (2) because the
Department recognizes that the funding
amounts for the majority of INA
program grantees are so small (and
therefore the number of youth served
are also so small) that the number of
youth served under the 5 percent
exception is numerically insignificant
and that the effort and cost of collecting
information on the additional barriers is
not justified. Furthermore, the poverty
level on or near Indian reservations
(which are the areas to be served with
youth funds) is so high that the vast
majority of youth served under WIA met
the low-income requirement and those
that do not are only slightly over the
poverty level.
Additionally, the INA youth program
differs significantly from the State youth
formula program in that it does not
distinguish between ‘‘in-school’’ youth
and ‘‘out-of-school’’ youth and there are
no percentage requirements for ISY and
OSY as required by the State youth
formula program. The Department
recognizes that given the small funding
amount for the INA youth program,
most INA grantees are primarily limited
to operating summer employment
programs for ISY. However, the
Department encourages the few grantees
that receive significant amounts of
youth funding to provide year-round
youth programs and incorporate
educational and training components in
their youth program.
Proposed § 684.430(b) provides
additional information about the
definition of ‘‘low-income.’’ This
proposed section helps implement and
carry out the definition of low-income
provided in WIOA sec. 129(a)(2).
Section 684.440 How is funding for
supplemental youth services
determined?
Proposed § 684.440(a) specifies how
funding will be allocated. Because the
Department has determined that WIOA
did not require any substantive changes
to 20 CFR 668.440(a), we have retained
the same essential requirements.
Although this proposed section
specifies that the Department will
allocate youth funding based on the
number of youth in poverty, the
inclusion of the term ‘‘in poverty’’
merely implements current practices
and does not change our requirements.
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Proposed § 684.440(b) through (e)
describe what data the Department will
use in calculating the youth funding
allocation, how the hold harmless factor
described in § 684.270(c) will apply,
how the reallocation provisions apply,
and how supplemental youth services
funds not allotted may be used. Because
the Department has determined that no
substantial changes were necessary to
these sections to implement WIOA,
these proposed sections retains the same
requirements found at 20 CFR
668.350(b) through (e).
Section 684.450 How will
supplemental youth services be
provided?
Proposed § 684.450(a) through (c)
describe how supplemental youth
services will be provided. Because the
Department has determined that no
substantial changes were necessary to
these sections to implement WIOA,
these proposed sections retain the same
requirements found at 20 CFR
668.450(a) through (c).
Section 684.460 What performance
measures are applicable to the
supplemental youth services program?
Proposed § 684.460(a) describes the
performance measures and standards
applicable to the supplemental youth
services program. These measures and
standards of performance are the same
as the primary indicators discussed in
proposed § 677.155. Though the
indicators of performance are identified
in various places throughout the WIOA
proposed regulations, the indicators are
the same and do not vary across the
regulations. Section 166(e)(5) of WIOA
specifies that performance indicators for
the Native American program ‘‘shall’’
include the primary indicators of
performance described in WIOA sec.
116(b)(2)(A). Consequently, the
Department has listed the youth
performance indicators at WIOA sec.
116(b)(2)(A)(ii) to implement and carry
out statutory requirements.
The Department acknowledges that
some of the performance indicators for
youth programs are targeted to capture
data related to participants who are
either in their senior year of high school
or are no longer a high school student
(§ 684.460(a)(1) and (2)). Because of
limited funding, many of the INA youth
programs are summer employment
programs serving younger high school
students, these performance indicators
might not accurately capture the success
of such programs.
Proposed § 684.460(b) describes the
Secretary’s role in the creation of
additional performance measures to the
ones listed in § 684.460(a). Section
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684.460 implements the statutory
language in WIOA sec. 166(h)(2).
7. Subpart F—Accountability for
Services and Expenditures
6. Subpart E—Services to Communities
Section 684.600 To whom is the
Indian and Native American program
grantee accountable for the provision of
services and the expenditure of INA
funds?
Proposed § 684.600(a) and (b) describe
who INA program grantees are
accountable to for the provision of
services and the expenditure of INA
funds. Because the Department has
determined that no changes were
necessary to these sections to
implement WIOA, these proposed
sections retain the same requirements as
20 CFR 668.600.
Section 684.500 What services may
Indian and Native American program
grantees provide to or for employers?
Proposed § 684.500(a) and (b) describe
other services that INA program
grantees may provide to or for
employers under sec. 166. Because the
Department has determined that no
changes were necessary to these
sections to implement WIOA, these
proposed sections retain the same
requirements as 20 CFR 668.500.
Section 684.510 What services may
Indian and Native American program
grantees provide to the community at
large?
Proposed § 684.510(a) and (b) describe
services that INA program grantees may
provide to INA communities. Because
the Department has determined that no
changes were necessary to these
sections to implement WIOA, these
proposed sections retain the same
requirements at 20 CFR 668.510(a) and
(b).
Section 684.520 Must Indian and Native
American program grantees give
preference to Indian and Native
American entities in the selection of
contractors or service providers?
Proposed § 684.520 discusses the
requirement to give preference to
Indian/Native American entities in the
selection of contractors or service
providers. Because the Department has
determined that no changes were
necessary to this section to implement
WIOA, this proposed section retains the
same requirements at 20 CFR 668.520.
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Section 684.530 What rules govern the
issuance of contracts and/or subgrants?
Proposed § 684.530 describes the
rules that govern the issuance of
contracts and/or subgrants. In general,
INA program grantees must follow the
uniform administrative requirements,
cost principles, and audit requirements
for Federal awards at 2 CFR part 200
subpart E published in the Federal
Register on December 26, 2013, except
that these rules do not apply to OJT
contract awards. This section essentially
retains the same language as provided
under WIA at 20 CFR 668.530, except
that the references to OMB Circulars A–
102, A–110 have been replaced with
references to 2 CFR part 200 subpart E.
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Section 684.610 How is this
accountability documented and
fulfilled?
Proposed § 684.610(a) and (b) require
INA program grantees to establish
internal policies and procedures to
ensure accountability to its governing
body and describe how accountability to
the Department is accomplished.
Because the Department has determined
that no changes were necessary to these
sections to implement WIOA, these
proposed sections retain the same
requirements at 20 CFR 668.610(a) and
(b).
Proposed § 684.610(c) describes how
accountability to the Department is
documented and fulfilled. The
Department proposes to require
compliance with the reporting items
listed in § 684.610(c) because these are
the best ways to ensure accountability
and they comply with our current
practices.
Section 684.620 What performance
measures are in place for the Indian and
Native American program?
Proposed § 684.620(a) describes the
performance measures that are required
under WIOA for the INA program.
These measures of performance are the
same as the primary indicators
discussed in proposed § 677.155.
Though the indicators of performance
are identified in various places
throughout the WIOA proposed
regulations, the indicators are the same
and do not vary across the regulations.
Section 166(e)(5) of WIOA specifies that
performance indicators for the Native
American program ‘‘shall’’ include the
primary indicators of performance
described in WIOA sec. 116(b)(2)(A).
Proposed § 684.620(a) lists the
applicable performance indicators
described in WIOA sec. 116(b)(2)(A),
thus implementing and carrying out the
statutory requirements of sec. 166(e)(5)
of WIOA.
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Proposed § 684.620(b) describes the
Secretary’s role in the creation of
additional performance measures to the
ones listed in § 684.620(a). Section
684.620 implements the statutory
language in WIOA sec. 166(h)(2).
Section 684.630 What are the
requirements for preventing fraud and
abuse?
Proposed § 684.630(a) requires INA
program grantees to establish fiscal
control and fund accounting
procedures. This section implements
the language in WIOA sec. 184 to the
INA program.
Proposed § 684.630(b) and (c) include
requirements related to conflicts of
interest gifts. Because the Department
has determined that no changes were
necessary to these sections to
implement WIOA, these proposed
sections retain the same requirements at
20 CFR 668.630(b) and (c).
Proposed § 684.630(d) describes
certain restrictions on selecting family
members as participants. Because the
Department has determined that no
substantial changes were necessary to
this section to implement WIOA, this
proposed section retains the same
requirements at 20 CFR 668.610(d),
except that it clarifies our current
practice of counting all INA individuals
in a community to determine if the
exception is met.
Proposed § 684.630(e) through (h)
describe kickback, political activities,
lobbying, and embezzlement restrictions
that apply to this section. Because the
Department has determined that no
substantial changes were necessary to
these sections to implement WIOA,
these proposed sections retain the same
requirements at 20 CFR 668.630(e)
through (h) with changes to update
citations.
Proposed § 684.630(i) prohibits
discriminatory practices by recipients of
WIOA funds. This section clarifies for
the benefit of potential applicants the
effect of WIOA sec. 188 on the INA
programs. The language in this section
also addresses a long-standing
misconception among INA grantees that
individuals outside of a grantee’s
geographic service area cannot be served
without the consent of the grantee
whose service area the individual
resides. The Department recognizes that
INA program grantees receive funding
based on specified geographic
boundaries such as a county,
reservation, Alaska Native village etc.,
and therefore we agree that grantees are
not required to serve individuals
outside their geographic areas since
another grantee is receiving funding to
serve such individuals. However, this
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does not mean that grantees cannot
serve individuals outside their specified
boundaries if they choose to do so.
Section 684.640 What grievance
systems must an Indian and Native
American program grantee provide?
Proposed § 684.640 requires INA
program grantees establish grievance
procedure. Because the Department has
determined that no changes were
necessary to this section to implement
WIOA, this proposed section retains the
same requirements at 20 CFR 668.640.
Section 684.650 Can Indian and Native
American program grantees exclude
segments of the eligible population?
Proposed § 684.650(a) and (b) inform
INA program grantees whether they can
exclude segments of the eligible
population. Because the Department has
determined that no changes were
necessary to these sections to
implement WIOA, this proposed
sections retain the same requirements at
20 CFR 668.650.
8. Subpart G—Section 166 Planning/
Funding Process
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Section 684.700 What is the process
for submitting a 4-year plan?
Proposed § 684.700 describes the
process for submitting a 4-year plan, as
required by sec. 166(e) of WIOA.
Specific requirements for the
submission of a 4-year plan will be
provided in a Funding Opportunity
Announcement (FOA). This section
facilitates the streamlining of the
application process as is described in
detail in the introduction of this part.
Section 684.710 What information
must be included in the 4-year plans as
part of the competitive application?
Proposed § 684.710 describes the
information that must be included in
the 4-year plan. The Department intends
to seek economic and workforce
responsive 4-year plans under WIOA.
Under WIOA, the Department proposes
that a plan contains only the four
information requirements set out in
WIOA sec. 166(e), which will leave the
Department flexibility to ask for
different kinds of information in a
request for additional information
during the FOA process. The
Department recognizes that the
workforce system must be able to
change and adapt to the changes
required by employers who are, in turn,
changing and adapting to forces in the
economy and advancements in
technology which require different skill
sets for American workers. This new
approach to planning will provide the
flexibility necessary to address the
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current workforce needs at the time
plans are written.
Proposed § 684.710(a) describes the
information that must be included in
the 4-year plan, required by WIOA secs.
166(e)(2) through (5).
Proposed § 684.710(b) states that the
4-year plan must include a projection of
participants to be served and
expenditures during a PY and any
additional information requested in a
FOA. Again, this section has been added
under WIOA to convey that additional
information will be required in the 4year plan, as determined by current
labor market trends and skills
requirements, and what information
must be in plans will be requested in a
FOA as part of the competitive process.
Proposed § 684.710(c) requires INA
program grantees receiving
supplemental youth funds to provide
additional information in the 4-year
plan that describes a strategy for serving
low-income, INA youth. The
Department supports youth activities
that preserve Native American culture
and values. Because the Department has
determined that no changes were
necessary to this section to implement
WIOA, this proposed section retains the
same requirements at 20 CFR
668.720(b), with the exception that it is
framed to reflect the streamlined
application process described in more
detail in the introduction to this part.
Section 684.720 When must the 4-year
plan be submitted?
Proposed § 684.720 describes when
the 4-year plan must be submitted. The
due date for the submission of the 4year plan will be specified in the FOA.
This approach implements and carries
out the requirements of WIOA secs.
166(c) and 166(e) in the context of the
streamlined application process that is
described in more detail in the
introduction to this part. The
Department envisions that the first 4year plan will be for PY 2016–2020
which will cover the period from July 1,
2016 through June 30, 2020.
Section 684.730 How will the
Department review and approve such
plans?
Proposed § 684.730 describes how the
Department will review and approve 4year plans. The Department will make
every effort to approve plans that are
fully complete prior to the beginning of
the first PY of the 4-year plan and funds
will be obligated to grantees for that
year through a grant award. After the
first year of a 4 -year plan, funds will
automatically be added each year for the
following 3 years through a grant
modification, assuming the grantee
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continues to be in good standing with
the Department.
Incomplete plans that do not fully
meet the requirements provided in the
FOA will not be approved. It is possible
for entities to be selected through the
competitive process and also have an
incomplete plan. Therefore, after
competitive grant selections have been
made, the DINAP office may assist INA
program grantees with incomplete plans
on tasks such as submitting required
documents and other unresolved issues
that render the 4-year plan incomplete.
However, the Department may delay
funding to grantees until all issues with
the 4-year plan have been resolved.
While it is unlikely that a grantee will
fail to submit an acceptable 4-year plan,
the Department will reallocate funds
from an INA program grantee that fails
to submit a 4-year plan to other
incumbent INA program grantees that
have an approved 4-year plan. The
Grant Officer may also delay executing
a grant agreement and obligating funds
to an entity selected through the
competitive process until all the
required documents—including the 4year plan—are in place.
Proposed § 684.730(a) states that it is
the Department’s intent to approve a
grantee’s 4-year strategic plan before the
date on which funds for the program
become available. Because the
Department has determined that no
changes were necessary under WIOA,
this section retains the same language as
provided under WIA at 20 CFR
668.740(a), save for the addition of
language specifically addressing the
streamlined, 4-year grant application
process as described in more detail in
the introduction to this part.
Proposed § 684.730(b) describes the
extent to which the DINAP office will
assist INA program grantees in resolving
any outstanding issues that may exist
with the 4-year plan. Again, while the
Department expects that it is unlikely
that a grantee will fail to submit an
acceptable 4-year plan, we need a
mechanism to reallocate funds when
such an event occurs in order to ensure
that funds are spent providing services
to eligible program participants.
Proposed § 684.730(c) notes that the
Department may approve portions of a
plan while disapproving others. Because
the Department has determined that no
changes were necessary to implement
WIOA, the proposed regulation retains
the same requirements found in the
WIA regulations at 20 CFR 668.740(b).
Proposed § 684.730(d) references
appeal rights in nonselection cases or in
the case of a decision by the Department
to deny or reallocate funds based on
unresolved issues with the applicant’s
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application or 4-year plan. There are no
appeal rights in addition to the ones
listed in the cited regulations because
the Department has determined that
consistency of appeal rights amongst
WIOA programs is desirable.
Section 684.740 Under what
circumstances can the Department or
the Indian and Native American
program grantee modify the terms of the
grantee’s plan(s)?
Proposed § 684.740(a) describes when
the Department may unilaterally modify
an INA program grantee’s plan to add or
reduce funds to the grant. Because the
Department has determined that no
changes were necessary to implement
WIOA, the proposed regulation retains
the same requirements found in the
WIA regulations at 20 CFR 668.750(a).
Proposed § 684.740(b) describes when
an INA program grantee may request
approval to modify their plan to add,
expand, delete, or diminish any service
allowable under the regulations in this
part. Because the Department has
determined that no changes were
necessary to implement WIOA, the
proposed regulation retains the same
requirements found in the WIA
regulations at 20 CFR 668.750(b).
Generally, it is the Department’s intent
to pursue grant modifications only
when there are significant increases or
decreases in the grantee’s funding that
results in significant changes in the
employment and training services stated
in the 4-year plan or when the grantee
wishes to make a significant change in
its service strategy. As a general rule, a
significant change is when the number
of participants to be served in the
original plan changes by 25 percent or
by 25 actual participants, whichever is
larger.
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9. Subpart H—Administrative
Requirements
Section 684.800 What systems must an
Indian and Native American program
grantee have in place to administer an
Indian and Native American program?
Proposed § 684.800(a) and (b) describe
the systems that must be in place in
order for INA grantees to administer a
WIOA sec. 166 grant INA program.
Because the Department has determined
that no changes were necessary to these
sections to implement WIOA, these
proposed sections retain the same
requirements at 20 CFR 668.800.
Section 684.810 What types of costs
are allowable expenditures under the
Indian and Native American program?
Proposed § 684.810 describes where
the rules relating to allowable costs
under WIOA are located. Because the
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Department has determined that no
changes were necessary to this section
to implement WIOA, this proposed
section retains the same requirements at
20 CFR 668.810.
Section 684.820 What rules apply to
administrative costs under the Indian
and Native American program?
Proposed § 684.820 describes where
the definition and treatment of
administrative costs can be found.
Because the Department has determined
that no changes were necessary to this
section to implement WIOA, this
proposed section retains the same
requirements at 20 CFR 668.820.
Section 684.830 Does the Workforce
Innovation and Opportunity Act
administrative cost limit for States and
local areas apply to grants?
Proposed § 684.830 informs INA
program grantees about whether the
WIOA administrative cost limit for
States and local areas applies to INA
grants. Because the Department has
determined that no changes were
necessary to this section to implement
WIOA, this proposed section retains the
same requirements at 20 CFR 668.825.
Section 684.840 How should Indian
and Native American program grantees
classify costs?
Proposed § 684.840 describes how
INA program grantees must classify
costs. Because the Department has
determined that no changes were
necessary to this section to implement
WIOA, this proposed section retains the
same requirements at 20 CFR 668.830.
Section 684.850 What cost principles
apply to Indian and Native American
funds?
Proposed § 684.850 requires INA
program grantee to follow the cost
principles at 2 CFR part 200 subpart E
of the Uniform Administrative
Requirements published in the Federal
Register on December 26, 2013. This
section retains the same language as
provided under WIA at 20 CFR 668.840,
except that the references to OMB
Circulars A–87, A–122, A–21 have been
updated with references to 2 CFR part
200 subpart E, Cost Principles, & Audit
Requirements for Federal Awards.
Section 684.860 What audit
requirements apply to Indian and Native
American grants?
Proposed § 684.860 requires INA
program grantee to follow the audit
requirements at 2 CFR 200 subpart F of
the Uniform Administrative
Requirements, Cost Principles, & Audit
Requirements for Federal Awards
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published in the Federal Register on
December 26, 2013. This section retains
the same language as provided under
WIA at 20 CFR 668.850, except that the
references to OMB Circular A–133 and
29 CFR part 99 have been updated with
references to 2 CFR part 200 subpart E,
Cost Principles, & Audit Requirements
for Federal Awards.
Additionally, § 684.860(b)
implements the language at WIOA sec.
166(j) relating to single audit
requirements.
Section 684.870 What is ‘‘program
income’’ and how is it regulated in the
Indian and Native American program?
Proposed § 684.870(a) through (c)
provide descriptions of what qualifies as
program income for work experience
participants and OJT participants.
Because the Department has determined
that no changes were necessary to these
sections to implement WIOA, these
proposed sections retain the same
requirements at 20 CFR 668.870(a)
through (c).
10. Subpart I—Miscellaneous Program
Provisions
Section 684.900 Does the Workforce
Innovation and Opportunity Act
provide regulatory and/or statutory
waiver authority?
Proposed § 684.900 describes the
regulatory and/or statutory waiver
authority for the INA program. Because
the Department has determined that no
changes were necessary to this section
to implement WIOA, this proposed
section retains the same requirements at
20 CFR 668.900, except that we have
clarified, in accordance with WIOA sec.
166(i)(3), that only requirements related
to title I of WIOA may be waived.
Section 684.910 What information is
required in a waiver request?
Proposed § 684.910(a) describes what
information an INA program grantee
must include when it requests a waiver.
This section implements the
requirements in WIOA sec. 166(i)(3)(B)
and saves INA grantees from having to
reference additional departmental
guidance on how to request a waiver.
Proposed § 684.910(b) states that a
waiver may be requested at the
beginning of a 4-year grant award cycle
or anytime during a 4-year award cycle.
However, all waivers expire at the end
of the 4-year award cycle. The
Department envisions that waivers will
be requested for unique situations that
were not expected in the normal course
of operating an INA grant. Therefore,
Department proposes that waivers
cannot be provided indefinitely and
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must be renewed at the beginning of a
new 4-year grant cycle.
section implements and carries out the
requirements in WIOA sec. 166(k).
Section 684.920 What provisions of
law or regulations may not be waived?
Proposed § 684.920 describes the laws
and regulations that may not be waived.
Because the Department has determined
that no changes were necessary to this
section to implement WIOA, this
proposed section retains the same
requirements at 20 CFR 668.920.
I. Part 685—National Farmworker Jobs
Program Under Title I of the Workforce
Innovation and Opportunity Act
Section 684.930 May Indian and
Native American grantees combine or
consolidate their employment and
training funds?
Proposed § 684.930 provides a
description of when INA program
grantees can consolidate their funds
under Public Law 102–477 (477). In
addition to generally allowing the
consolidation of funds as required
under Public Law 102–477, § 684.930
describes the extent to which the
Department will review 477 plans. The
Department will not review the renewal
of 477 plans after the initial plan has
been approved by DOL, accepted by the
Department of the Interior, and all other
applicable Departmental programmatic
and financial obligations have been met
prior to transfer. This policy aligns with
the requirements of Public Law 102–477
which allows Federally-recognized
tribes and Alaska Native entities to
combine formula-funded Federal grant
funds, which are employment and
training-related, into a single plan with
a single budget and a single reporting
system. The Department recognizes that
when Federal funds from various
agencies are combined under one
unified plan, there must be one lead
agency that administers and manages
the unified plan. According to Public
Law 102–477 the lead agency is the DOI.
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Section 684.940 What is the role of the
Native American Employment and
Training Council?
Proposed § 684.940 describes the role
of the Native American Employment
and Training Council. The language in
proposed § 684.940 repeats the
requirements at WIOA sec. 166(i)(4)(C)
and explains that WIOA sec. 166(4) has
not made any major changes to the
council.
Section 684.950 Does the Workforce
Innovation and Opportunity Act
provide any additional assistance to
unique populations in Alaska and
Hawaii?
Proposed § 684.950 address the
additional assistance that WIOA
provides for unique populations in
Alaska and Hawaii. This proposed
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1. Introduction
The purpose of part 685 is to
implement WIOA sec. 167, which
authorizes MSFW programs. In drafting
these regulations, the Department
consulted with States and MSFW
groups during stakeholder consultation
sessions conducted in August and
September 2014, as required by WIOA
sec. 167(f). MSFW programs include
career services and training, housing
assistance, youth services, and related
assistance. In drafting the proposed
regulations for this part the Department
seeks to encourage strategic alignment
across other workforce development
programs such as Wagner-Peyser and
WIOA title I adult, dislocated worker,
and youth programs; encourage the
delivery of training for in-demand
occupations; provide comprehensive
youth workforce activities; and provide
a detailed description of housing
services available to eligible MSFWs. As
required by WIOA sec. 167(e), when
making grants and entering into
contracts under this section, the
Department will consult with the
Governors and Local Boards of the
States in which grantees will carry out
the activities described in WIOA sec.
167(d) during the FOA process
described in § 685.210.
The regulations in this section
support strategic alignment across
workforce development programs by:
Aligning the definition of ‘‘farmwork’’
found in this section with that used in
the Wagner-Peyser program; adjusting
the upper and lower age ranges of
eligible MSFW youth to conform to
those established in WIOA sec. 129 for
OSY and ISY; and requiring that
grantees coordinate services,
particularly outreach to MSFWs, with
the State Workforce Agency (SWA) in
their service area and the State’s
monitor advocate. These changes are
intended to support coordination
between MSFW programs and other
workforce programs such as the WagnerPeyser program, and facilitate MSFW
youth co-enrollments with other WIOA
title I programs.
The Department proposes language in
§ 685.350 regarding training services
that reinforces that training must be
directly linked to an in-demand
industry or occupation that leads to
economic self-sufficiency and
encourages the attainment of recognized
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post-secondary credentials when
appropriate.
Proposed §§ 685.330 and 685.510
establish that grantees funded under
WIOA sec. 167 can serve eligible MSFW
youth participants. The Department also
has proposed that a percentage of the
total funds appropriated each year for
WIOA sec. 167 activities will be used
for housing grants, and described
specific housing assistance activities in
§ 685.360, to better articulate the types
of services that can be delivered to
eligible MSFWs.
2. Subpart A—Purpose and Definitions
This subpart describes the general
purpose and definitions relevant to
MSFW programs authorized under
WIOA sec. 167, the role of the
Department in providing technical
assistance and training to grantees, and
the regulations applicable to grantees.
Section 685.100 What is the purpose
of the National Farmworker Jobs
Program and the other services and
activities established under Workforce
Innovation and Opportunity Act?
Proposed § 685.100 identifies
achieving economic self-sufficiency as
the goal of the services and activities
that are authorized in WIOA sec. 167 for
eligible MSFWs which includes their
dependents. This section emphasizes
the importance of obtaining, retaining,
and stabilizing the unsubsidized
employment of MSFWs, including
obtaining upgraded agricultural
employment, in achieving the goal of
the program.
Section 685.110 What definitions
apply to this program?
Proposed § 685.110 provides
definitions of terms relevant to the
implementation and operation of
workforce investment activities
authorized for MSFWs and their
dependents under WIOA sec. 167.
A definition of allowances has been
provided that means direct payments
made to participants to support
participation specific career services
and training.
Dependents of eligible MSFWs may
receive services under WIOA secs.
167(i)(2)(B) and 167(i)(3)(B), and the
Department has provided a definition of
the family member relationships of an
eligible MSFW who qualify for MSFW
program services.
Eligibility determination period is
defined as ‘‘any consecutive 12-month
period within the 24-month period
immediately preceding the date of
application for the MSFW program by
the applicant MSFW.’’ The definition
was adopted from the first clause of
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WIOA sec. 167(i)(3)(A)(i), which defines
‘‘eligible seasonal farmworker.’’
The definition of eligible migrant
farmworker is taken from WIOA sec.
167(i)(2).
The definition of eligible seasonal
farmworker is taken from WIOA sec.
167(i)(3).
A definition of eligible migrant and
seasonal farmworker has been provided,
meaning an eligible migrant farmworker
or an eligible seasonal farmworker as
defined in WIOA sec. 167(i).
A definition of eligible MSFW youth
has been provided, and it is defined as
eligible MSFWs aged 14–24 who are
individually eligible or are dependents
of eligible MSFWs. The upper age range
(age 24) and lower age range (age 14) for
eligible MSFW youth have been put in
alignment with the upper and lower age
ranges provided in WIOA secs. 129
((a)(1)(B) and (a)(1)(C). Eligible MSFW
youth is a subset of eligible MSFWs as
defined in this section. This alignment
will facilitate co-enrollment with other
WIOA youth programs that serve 14–24
year old youth participants, where
appropriate.
A definition of emergency assistance
had been provided that establishes that
emergency assistance is a form of
related assistance, and means assistance
that addresses immediate needs of
eligible MSFWs and their dependents,
provided by grantees. To facilitate the
delivery of emergency services in a
timely manner the applicant’s selfcertification is accepted as sufficient
documentation of eligibility for
emergency assistance.
A definition of family, is provided
that means an eligible MSFW and all the
individuals identified under the
definition of dependent in this section
who are living together in one physical
residence. The definition has been
proposed for the purpose of reporting
housing assistance grantee indicators of
performance as described in § 685.400.
A definition of farmwork is provided
that means work while employed in the
occupations described in 20 CFR
651.10. The specific occupations and
industries within agricultural
production and agricultural services
will be provided through Departmental
guidance, and will be updated when
government-wide standard industry and
occupation codes undergo periodic
review and revision. Providing a
definition of farmwork that is aligned
with the Wagner-Peyser ES system will
facilitate the provision of services to
MSFWs under both programs.
A definition of grantee has been
provided, meaning an entity to which
the Department directly awards a WIOA
grant to carry out programs to serve
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eligible MSFWs in a service area, with
funds made available under WIOA sec.
167 or 127(a)(1).
A definition of housing assistance is
provided and means housing-related
services provided to eligible MSFWs.
Examples of specific authorized housing
activities are provided in proposed
§ 685.360.
The definition of lower living
standard income level from WIOA sec.
3(36)(B) has been referenced without
change.
The definition of low-income
individual from WIOA sec. 3(36)(A) has
been referenced without change.
A definition of MOU has been
provided, meaning ‘‘Memorandum of
Understanding.’’
A definition of National Farmworker
Jobs Program (NFJP) has been provided
and is the Department-administered
workforce investment program for
MSFWs established by WIOA sec. 167
as a required partner of the one-stop
system and includes career services,
training grants, and housing grants. The
term NFJP was initially developed in
1999 by the Secretary’s MSFW Advisory
Committee to distinguish the NFJP from
the other workforce investment grants
and activities funded under WIA sec.
167, such as the farmworker housing
assistance grants; however, since that
time the NFJP has come to be the
accepted term for both employment and
training grants and housing grants, and
this definition reflects that
understanding.
The definition of recognized postsecondary credential from WIOA sec.
3(52) has been referenced without
change.
A definition of related assistance,
which is authorized under WIOA sec.
167(d), has been provided meaning
short-term forms of direct assistance
designed to assist eligible MSFWs retain
or stabilize their agricultural
employment.
A definition of self-certification has
been provided meaning an eligible
MSFW’s signed attestation that the
information he/she submits to
demonstrate eligibility for the NFJP is
true and accurate.
A definition of service area has been
provided meaning the geographical
jurisdiction, which may be comprised of
one or more designated States or subState areas, in which a WIOA sec. 167
grantee is designated to operate.
A definition of technical assistance
has been provided meaning the
guidance provided to grantees and
grantee staff by the Department to
improve the quality of the program and
the delivery of program services to
eligible MSFWs. This definition was
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adapted from and replaces the 20 CFR
part 685 definition of capacity
enhancement under WIA to reflect the
term more commonly used by the
Department.
Section 685.120 How does the
Department administer the National
Farmworker Jobs Program?
Proposed § 685.120 clarifies that the
Department’s ETA administers NFJP
activities authorized under WIOA sec.
167 for eligible MSFWs, and as
described in § 685.210, the Department
designates grantees in a manner
consistent with standard Federal
government competitive procedures.
Section 685.130 How does the
Department assist grantees to serve
eligible migrant and seasonal
farmworkers?
Proposed § 685.130 establishes that
the Department will provide guidance,
administrative support, technical
assistance, and training to support
MSFW programs and promote
employment outcomes for eligible
MSFWs.
Section 685.140 What regulations
apply to the programs authorized under
Workforce Innovation and Opportunity
Act?
Proposed § 685.140 specifies the
regulations that are applicable to MSFW
programs authorized under WIOA sec.
167, including proposed part 685.
Applicable regulations include the
general administrative requirements
found in 20 CFR part 683, including the
regulations regarding the Complaints,
Investigations and Hearings found at 20
CFR part 683, subpart D through subpart
H; Uniform Guidance at 2 CFR part 200
and the Department’s exceptions at 2
CFR part 2900 pursuant to the effective
dates in 2 CFR part 200 and 2 CFR part
2900; the regulations on partnership
responsibilities contained in 20 CFR
parts 679 (Statewide and Local
Governance) and 678 (the one-stop
system); the Department’s regulations at
29 CFR part 37, which implement the
nondiscrimination provisions of WIOA
sec. 188.
3. Subpart B—The Service Delivery
System for the National Farmworker
Program
This subpart describes the service
delivery system for the MSFW programs
authorized by WIOA sec. 167 including
who is eligible to receive grants and the
role of the NFJP in the one-stop delivery
system. Termination of grantee
designation is explained. This subpart
also discusses the appropriation of
WIOA sec. 167 funds and establishes
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that a percentage of the total funds
appropriated each year for WIOA sec.
167 activities will be used for housing
assistance grants.
Section 685.200 Who is eligible to
receive a National Farmworker Jobs
Program grant?
Proposed § 685.200 describes the
entities that are eligible to receive NFJP
grants. The entity must have an
understanding of the problems of
eligible MSFWs, a familiarity with the
agricultural industries and the labor
market needs of the proposed service
area, and the ability to demonstrate a
capacity to administer and deliver
effectively a diversified program of
workforce investment activities,
including youth workforce investment
activities, and related assistance for
eligible MSFWs.
Section 685.210 How does an eligible
entity become a grantee?
Proposed § 685.210 establishes that
grantees will be selected through a FOA
using standard Federal government
competitive procedures. The entity’s
proposal must describe a 4-year strategy
for meeting the needs of eligible MSFWs
in the proposed service area and a
description of the entity’s experience
working with the broader workforce
delivery system. This is in alignment
with the requirement in WIOA sec.
167(a) that the Department make grants
or enter into contracts on a competitive
basis every 4 years. Unless specified
otherwise in the FOA, grantees may
serve eligible MSFWs, including eligible
MSFW youth, under the grant. An
applicant whose application for funding
as a grantee under part 685 is denied in
whole or in part may request an
administrative review under 20 CFR
683.800.
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Section 685.220 What is the role of the
grantee in the one-stop delivery system?
Proposed § 685.220 describes that in
those local workforce development
areas where the grantee operates its
NFJP, as described in its grant
agreement, the grantee is a required onestop partner, and is subject to the
provisions relating to such partners
described in 20 CFR part 678.
Consistent with those provisions, the
grantee and Local Workforce
Development Board must develop and
enter into an MOU which meets the
requirements of 20 CFR 678.500 and
sets forth their respective
responsibilities for providing access to
the full range of NFJP services through
the one-stop system to eligible MSFWs.
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Section 685.230 Can a grantee’s
designation be terminated?
Proposed § 685.230 explains the
circumstance in which a grantee may be
terminated by the Department for cause,
including emergency circumstances
when such action is necessary to protect
the integrity of Federal funds or ensure
the proper operation of the program, or
by the Department’s Grant Officer, if the
recipient materially fails to comply with
the terms and conditions of the award.
The Department has changed the
standard for Grant Officer termination
from ‘‘substantial or persistent
violation’’ as used in the WIA
regulations in order to be consistent
with the standards used for all other
Department WIOA grants under the
common administrative requirements
for grants.
Section 685.240 How does the
Department use funds appropriated
under Workforce Innovation and
Opportunity Act for the National
Farmworker Jobs Program?
Proposed § 685.240 establishes that in
accordance with WIOA sec. 167(h), at
least 99 percent of the funds
appropriated each year for WIOA sec.
167 activities must be allocated to
service areas, based on the distribution
of the eligible MSFW population
determined under a formula which has
been published in the Federal Register.
The grants will be awarded under
§ 685.210. The Department has added
language that clarifies that of this
amount, a percentage of funds will be
set aside for housing grants and will be
specified in an FOA issued by the
Department. The balance, up to 1
percent of the appropriated funds, will
be used for discretionary purposes, such
as providing technical assistance to
eligible entities, and other activities
prescribed by the Secretary to eligible
entities. This differs from the up to 4
percent reserved in the prior regulations
so as to comply with the funding
requirements of WIOA sec. 167(h).
4. Subpart C—The National Farmworker
Jobs Program Customers and Available
Program Services
This subpart describes the
responsibilities of grantees, and
workforce investment activities
available to eligible MSFWs, including
career services and training, housing
assistance, youth services, and related
assistance.
Section 685.300 What are the general
responsibilities of grantees?
Proposed § 685.300 establishes the
general responsibilities of grantees,
including that: eligible entities receive
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grants through the FOA process
described in § 685.210; career services
and training grantees are responsible for
providing appropriate career services,
training, and related assistance to
eligible MSFWs and eligible MSFW
youth; and housing grantees are
responsible for providing housing
assistance to eligible MSFWs. Grantees
will provide these services in
accordance with the service delivery
strategy described in the approved
program plan described in § 685.420.
These services must reflect the needs of
the MSFW population in the service
area and include the services that are
necessary to achieve each participant’s
employment goals or housing needs.
Grantees also are responsible for
coordinating services, particularly
outreach to MSFWs, with the SWA, as
defined in 20 CFR part 651, and the
State’s monitor advocate and fulfilling
the responsibilities of one-stop partners
described in proposed § 678.420.
Section 685.310 What are the basic
components of an National Farmworker
Jobs Program service delivery strategy?
Proposed § 685.310 describes the
basic components of the NFJP delivery
strategy that must include: A customerfocused case management approach; the
provision of workforce investment
activities, which include career services
and training, as described in WIOA secs.
167(d) and 134 and 20 CFR part 680,
and youth workforce investment
activities described in WIOA sec. 129
and 20 CFR part 681; the arrangements
under the MOU’s with the applicable
Local Workforce Development Boards
for the delivery of the services available
through the one-stop system to MSFWs;
and related assistance services.
Section 685.320 Who is eligible to
receive services under the National
Farmworker Jobs Program?
Proposed § 685.320 establishes that
MSFWs as defined in § 685.110 are
eligible for services funded by the NFJP.
As provided in WIOA sec. 167(d)(1),
NFJP grants are used to provide adult
and youth services, thus the NFJP may
use funds available to serve youth even
when the service area is not being
served with supplemental youth funds
authorized in WIOA sec. 127(a)(1). In
addition, NFJP services can be provided
to eligible MSFW youth who
demonstrate a need for and ability to
benefit from career services. For
example, some older youth may benefit
more from the array of career services
available under NFJP than from the
youth services offered under subpart E.
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Section 685.330 How are services
delivered to eligible migrant and
seasonal farmworkers?
Proposed § 685.330 emphasizes that
services to eligible MSFWs will be
focused on the customer’s needs and
provided through a case-management
approach emphasizing customer choice,
and may include appropriate career
services and training, and related
assistance, which includes emergency
assistance; and supportive services,
which includes allowance payments.
The basic services and delivery of casemanagement activities are further
described in §§ 685.340 through
685.390.
Section 685.340 What career services
must grantees provide to eligible
migrant and seasonal farmworkers?
Proposed § 685.340 establishes that
eligible MSFWs must be provided the
career services described in WIOA secs.
167(d) and 134(c)(2), and 20 CFR part
680. Other career services may be
provided as identified in the grantee’s
approved program plan. The
Department also has included language
to clarify that while career services must
be made available through the one-stop
delivery system, grantees also may
provide these types of services through
other sources outside the one-stop
system. Examples include non-profit
organizations or educational
institutions. The delivery of career
services to eligible MSFWs by the
grantee and through the one-stop system
must be discussed in the required MOU
between the Local Workforce
Development Board and the grantee.
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Section 685.350 What training services
must grantees provide to eligible
migrant and seasonal farmworkers?
Proposed § 685.350 establishes that
the training activities in WIOA secs.
167(d) and 134(c)(3)(D), and 20 CFR part
680, must be provided to eligible
MSFWs. These activities include, but
are not limited to, occupational-skills
training and OJT. The Department also
emphasizes that eligible MSFWs are not
required to receive career services prior
to receiving training services, as
described in WIOA sec. 134(c)(3)(iii).
This section also reinforces the intent of
WIOA that training services be directly
linked to an in-demand industry sector
or occupation in the service area, or in
another area to which an eligible MSFW
receiving such services is willing to
relocate, consistent with WIOA sec.
134(c)(3)(G)(iii). The Department also
establishes that training activities must
encourage the attainment of recognized
post-secondary credentials as defined in
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§ 685.110 (which refers to WIOA sec.
3(52)), when appropriate for an eligible
MSFW. This requirement is in
alignment with WIOA secs.
116(b)(2)(A)(i)(IV) and
116(b)(2)(A)(ii)(III), which include ‘‘the
percentage of program participants who
obtain a recognized post-secondary
credential, or a secondary school
diploma,’’ as a primary indicator of
performance for both the adult and
youth programs.
Section 685.360 What housing services
must grantees provide to eligible
migrant and seasonal farmworkers?
Proposed § 685.360 requires that
housing grantees must provide housing
services to eligible MSFWs and that
career services and training grantees
may provide housing services to eligible
MSFWs as described in their program
plan. The proposed section establishes
the definitions of permanent housing
and temporary housing services that are
available to eligible MSFWs. The
Department establishes that permanent
housing is owner-occupied, or occupied
on a permanent, year-round basis
(notwithstanding ownership) as the
MSFW’s primary residence to which he/
she typically returns at the end of the
work or training day and temporary
housing is non-owner-occupied housing
used by MSFWs whose employment
requires occasional travel outside their
normal commuting area. Permanent
housing may include rental units, single
family, duplexes, and other multi-family
structures, dormitory, group homes, and
other housing types that provide shortterm, seasonal, or year-round housing
opportunities in permanent structures.
Modular structures, manufactured
housing, or mobile units placed on
permanent foundations and supplied
with appropriate utilities and other
infrastructure are also considered
permanent housing. Temporary housing
may include: Units intended for
temporary occupancy located in
permanent structures, such as rental
units in an apartment complex or in
mobile structures, tents, and yurts that
provide short-term, seasonal housing
opportunities; temporary structures that
may be moved from site to site,
dismantled and re-erected when needed
for farmworker occupancy; and off-farm
housing operated independently of
employer interest in, or control of, the
housing, or on-farm housing operated by
a nonprofit, including faith-based or
community non-profit organizations,
but located on property owned by an
agricultural employer. Specific
examples of permanent housing services
and activities associated with the
provision of permanent housing
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services, and specific examples of
temporary housing activities associated
with the provision of temporary housing
services, including emergency
assistance such as emergency housing
payments, vouchers, and cash payments
for rent/lease and utilities are provided.
The Department establishes that
housing services are intended to meet
the needs of eligible MSFWs to occupy
a unit of housing for reasons related to
seeking employment, retaining
employment, or engaging in training.
The definitions of permanent housing
and temporary housing assistance and
the specific examples of permanent and
temporary housing services described in
the proposed § 685.360 are adapted from
the 2011 Department Notice of
Availability of Funds and Solicitation
for Grant Applications for the National
Farmworker Jobs Program (NFJP)
Housing Assistance Program (Funding
Opportunity Number: SGA–DFA–PY–
10–08) which provided specific
requirements and guidelines for housing
grant applicants.
Section 685.370 What services may
grantees provide to eligible migrant and
seasonal farmworker youth participants
aged 14–24?
Proposed § 685.370 describes the
services that grantees may provide to
eligible MSFW youth participants aged
14–24 based on an evaluation and
assessment of their needs. These
services include the career and training
services described in §§ 685.340 through
685.350; youth workforce investment
activities described in WIOA sec. 129;
life skills activities that encourage
development of self and interpersonal
skills development; community service
projects; and other activities that
conform to the use of funds for youth
activities described in 20 CFR part 681.
Grantees may provide these services to
any eligible MSFW youth, regardless of
the participant’s eligibility for WIOA
title I youth activities as described in
WIOA sec. 129(a).
Section 685.380 What related
assistance services may be provided to
eligible migrant and seasonal
farmworkers?
Proposed § 685.380 describes the
types of services that may be provided
to eligible MSFWs as ‘‘related
assistance,’’ and establishes that these
services are short-term, direct services.
Examples include emergency assistance,
as defined in § 685.110, and those
activities identified in WIOA sec.
167(d), such as English language and
literacy instruction, pesticide and
worker safety training, housing
(including permanent housing), as
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described in § 685.360, and school
dropout prevention and recovery
activities. Related assistance is distinct
from ‘‘supportive services’’ as defined in
WIOA sec. 3, which ‘‘means services
such as transportation, child care,
dependent care, housing, and needsrelated payments, that are necessary to
enable an individual to participate in
activities authorized under this Act,’’
because related assistance may be
provided to eligible MSFWs who are not
otherwise participating in activities
authorized under this Act such as career
services, youth services, or training
services.
Section 685.390 When may eligible
migrant and seasonal farmworkers
receive related assistance?
Proposed § 685.390 establishes that
eligible MSFWs may receive related
assistance services when the need for
the related assistance is identified and
documented by the grantee. A statement
by the eligible MSFW may be included
as documentation.
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5. Subpart D—Performance
Accountability, Planning, and Waiver
Provisions
This subpart describes indicators of
performance for grantees, required
planning documents, and the
information required in program plans
required under WIOA sec. 167. The
subpart also explains waiver provisions
and clarifies how grant costs are
classified under WIOA sec. 167.
Section 685.400 What are the
indicators of performance that apply to
the National Farmworker Jobs Program?
Proposed § 685.400 describes the
indicators of performance that apply to
grantees. Grantees providing career
services and training will use the
indicators of performance common to
the adult and youth programs, described
in WIOA sec. 116(b)(2)(A), as required
by WIOA sec. 167(c)(2)(C). These
measures of performance are the same
as the primary indicators discussed in
proposed § 677.155. Though the
indicators of performance are identified
in various places throughout the WIOA
proposed regulations, the indicators are
the same and do not vary across the
regulations.
For grantees providing career services
and training, the Department will reach
agreement on the levels of performance
for each of the primary indicators of
performance described in WIOA sec.
116(b)(2)(A), taking into account
economic conditions, characteristics of
the individuals served, and other
appropriate factors, and using, to the
extent practicable, the statistical
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adjustment model under WIOA sec.
116(b)(3)(A)(viii). The levels agreed to
will be the adjusted levels of
performance and will be incorporated in
the program plan, as required in WIOA
sec. 167(c)(3). For grantees providing
housing services only, grantees will use
the total number of eligible MSFWs
served and the total number of eligible
MSFW families served as indicators of
performance. Performance indicators for
NFJP housing grantees are not specified
in WIA or WIOA statute, and the
measures proposed here are adapted
from the Department’s TEGL, Number
15–13, Program Year 2014 Planning
Guidance for National Farmworker Jobs
Program Housing Grantees, released
March 25, 2014. As described in
proposed § 685.400(d), the Department
may develop additional performance
indicators with appropriate levels of
performance for evaluating programs
that serve eligible MSFWs and which
reflect the State service area economy,
local demographics of eligible MSFWs,
and other appropriate factors. In
accordance with § 685.400(d), the
Department may develop additional
indicators of performance for housing
grantees in addition to the indicators
specified in proposed § 685.400(c). If
additional performance indicators are
developed, the levels of performance for
these additional indicators must be
negotiated with the grantee and
included in the approved program plan.
Grantees also may develop additional
performance indicators and include
them in the program plan or in periodic
performance reports.
set forth in the FOA issued under
§ 685.210.
Section 685.410 What planning
documents must a grantee submit?
Proposed § 685.410 describes the
planning documents that a grantee must
submit, including a comprehensive
program plan, further described in
proposed § 685.420, and a projection of
participant services and expenditures
covering the 4-year grant cycle.
Section 685.440 How are costs
classified under the National
Farmworker Jobs Program?
Proposed § 685.440 describes how
costs are classified under the NFJP.
Costs are classified as administrative
costs, as defined in 20 CFR 683.215, and
program costs are all other costs not
defined as administrative. The
Department further specifies that
program costs must be classified and
reported in the categories of related
assistance (including emergency
assistance), supportive services, and all
other program services.
Section 685.420 What information is
required in the grantee program plan?
Proposed § 685.420 describes the
information required for inclusion in
program plans. Paragraph (a) asks for a
description of the service area that the
applicant proposes to serve, in
accordance with WIOA sec. 167(c).
Paragraphs (b) through (g) incorporate
the elements described in WIOA sec.
167(c)(2). Paragraphs (h) and (i) specify
additional information required in
program plans which include: The
methods the grantee will use to target its
services on specific segments of the
eligible population, as appropriate, and
the response to any other requirements
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Section 685.430 Under what
circumstances are the terms of the
grantee’s program plan modified by the
grantee or the Department?
Proposed § 685.430 describes the
circumstances when the terms of the
grantee’s program plan can be modified
by the grantee or the Department.
Program plans must be modified to
reflect the funding level for each year of
the grant, and the Department will
provide instructions annually on when
to submit modifications for each year of
funding, which will generally be no
later than June 1, prior to the start of the
subsequent year of the grant cycle.
Grantees must submit a request to the
Department for any proposed
modifications to the plan to add, delete,
expand, or reduce any part of the
program plan or allowable activities,
and the Department will consider the
cost principles, uniform administrative
requirements, and terms and conditions
of award when reviewing modifications
to program plans. The purpose of this
requirement is to ensure that the
Department has reviewed and approved
any proposed programmatic changes as
part of a grant award to ensure the
changes are allowable,
programmatically and fiscally sound,
and do not negatively affect
performance outcomes. If the grantee is
approved for a regulatory waiver under
proposed § 685.560 and § 685.570, it
must submit a modification of the grant
plan to reflect the effect of the waiver.
Section 685.450 What is the Workforce
Innovation and Opportunity Act
administrative cost limit for National
Farmworker Jobs Program grants?
Proposed § 685.450 describes the
administrative cost limit for NFJP grants
which, under 20 CFR 683.205(b), will be
identified in the grant or contract award
document, and will not exceed 15
percent of total grantee funding. The
administrative cost limit established in
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this section is consistent with the
administrative cost limit under which
the program is currently operating.
Section 685.460 Are there regulatory
and/or statutory waiver provisions that
apply to the Workforce Innovation and
Opportunity Act?
Proposed § 685.460 describes the
regulatory and/or statutory waiver
provisions that apply to WIOA sec. 167.
The statutory waiver provision at WIOA
sec. 189(i) and discussed in 20 CFR
679.600 does not apply to WIOA sec.
167. Paragraph (b) establishes that
grantees may request a waiver of any
regulatory provisions only when such
regulatory provisions are (1) not
required by WIOA; (2) not related to
wage and labor standards, nondisplacement protection, worker rights,
participation and protection of workers
and participants, and eligibility of
participants, grievance procedures,
judicial review, nondiscrimination,
allocation of funds, procedures for
review and approval of plans; and (3)
not related to the basic purposes of
WIOA, described in 20 CFR 675.100.
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Section 685.470 How can grantees
request a waiver?
Proposed § 685.570 describes the
information that grantees must submit
to the Department in a waiver plan to
document a requested waiver. The
waiver request must include: A
description of the goals of the waiver;
the expected programmatic outcomes
and how the waiver will improve the
provision of program activities; how the
waiver is consistent with guidelines the
Department establishes; the data that
will be collected to track the impact of
the waiver; and the modified program
plan reflecting the effect of the
requested waiver.
6. Subpart E—Supplemental Youth
Workforce Investment Activity Funding
Under Workforce Innovation and
Opportunity Act Sec. 127(a)(1)
This subpart describes the purpose of
supplemental youth workforce
investment activity funding that may
become available under WIOA sec.
127(a)(1). Included is a description of
how the funds may become available,
and what requirements apply to grants
funded by WIOA sec. 127(a)(1).
Significantly, these funds may be used
only for workforce investment activities
for eligible MSFW youth, as defined in
§ 685.110. The Department will issue a
separate FOA for grants funded by
WIOA sec. 127(a)(1), and the selection
will be made in accordance with the
procedures described in § 685.210,
giving priority to applicants that are
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WIOA sec. 167 grantees. Planning
documents required for grants funded
by WIOA sec. 127(a)(1) will be
described in the FOA; and allocation of
WIOA sec. 127(a)(1) funds will be based
on the comparative merits of the
applications in accordance with criteria
set forth in the FOA.
Section 685.550 Who is eligible to
receive services through grants funded
by the Workforce Innovation and
Opportunity Act?
Proposed § 685.550 describes that
eligible MSFW youth as defined in
§ 685.110 may receive services through
grants funded by WIOA sec. 127(a)(1).
Section 685.500 What is supplemental
youth workforce investment activity
funding?
J. Part 686—The Job Corps Under Title
I of the Workforce Innovation and
Opportunity Act
Proposed § 685.500 describes that if
Congress appropriates more than $925
million for WIOA youth workforce
investment activities in a fiscal year, 4
percent of the excess amount must be
used to provide workforce investment
activities for eligible MSFW youth
under WIOA sec. 167.
1. Introduction
This part provides proposed
regulations for the Job Corps program,
authorized in title I, subtitle C of WIOA.
The regulations address the scope and
purpose of the Job Corps program and
provide requirements relating to site
selection, protection, and maintenance
of Job Corps facilities; funding and
selection of center operators and service
providers; recruitment, eligibility,
screening, selection and assignment,
and enrollment of Job Corps students;
Job Corps program activities and center
operations; student support; career
transition services and graduate
services; community connections; and
administrative and management
requirements. The Department’s intent
in the regulations is to incorporate the
requirements of title I, subtitle C of the
Act and to describe how the Job Corps
program is operated in order to deliver
relevant academic and career technical
training (CTT) that leads to meaningful
employment or post-secondary
education. The regulations also serve to
explain clearly the requirements
necessitated by the unique residential
environment of a Job Corps center. The
major changes from the existing
regulations reflect WIOA’s effort to
enhance the Job Corps program, provide
access to high quality training and
education, create incentives for strong
contractor performance, and promote
accountability and transparency.
Section 685.510 What requirements
apply to grants funded by the Workforce
Innovation and Opportunity Act?
Proposed § 685.510 specifies that the
requirements in subparts A through D of
§ 685 apply to grants funded by WIOA
sec. 127(a)(1), except that grants
described in this subpart must be used
only for workforce investment activities
for eligible MSFW youth, as described
in § 685.370 and WIOA sec. 167(d)
(including related assistance and
supportive services).
Section 685.520 What is the
application process for obtaining a grant
funded by the Workforce Innovation
and Opportunity Act?
Proposed § 685.520 specifies that the
Department will issue a separate FOA
for grants funded by WIOA sec.
127(a)(1). The selection will be made in
accordance with the procedures
described in § 685.210, except that the
Department reserves the right to provide
priority to applicants that are WIOA sec.
167 grantees.
Section 685.530 What planning
documents are required for grants
funded by the Workforce Innovation
and Opportunity Act?
Proposed § 685.530 specifies that
planning documents required for grants
funded by WIOA sec. 127(a)(1) will be
described in the FOA.
Section 685.540 How are funds
allocated to grants funded by the
Workforce Innovation and Opportunity
Act?
Proposed § 685.540 describes that the
allocation of WIOA sec. 127(a)(1) funds
will be based on the comparative merits
of the applications, in accordance with
criteria set forth in the FOA.
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2. Subpart A—Scope and Purpose
This proposed subpart contains
regulatory provisions that describe the
Job Corps program, its purpose, the role
of its Director, and applicable
definitions. In describing the role of the
Job Corps Director, this subpart provides
that the Secretary has delegated the
authority to carry out his or her
responsibilities under this part to the
National Director of Job Corps;
therefore, all references to the Secretary
issuing guidelines, procedures or
standards means that they will be issued
by the National Job Corps Director. This
subpart also describes the Policy and
Requirements Handbook (PRH), which
provides the operating policies and
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procedures governing day-to-day
activities of the Job Corps program. The
subpart describes the scope and purpose
of the program, along with the
responsibilities of its National Director.
It promotes accountability and
transparency by making readers aware
of exactly what the Job Corps program
plans to achieve and the procedures for
doing so, as well as the role its
leadership plays in its operation.
Section 686.100
this part?
What is the scope of
Proposed § 686.100 contains the
regulatory provisions governing the Job
Corps program. It explains that
procedures guiding day-to-day
operations are proposed to be provided
in the PRH and clarifies that throughout
this part, phrases that refer to
instructions or procedures issued by the
Secretary refer to the PRH and other Job
Corps Directives. Because this section of
WIOA is so similar to the corresponding
section in WIA, this proposed section
retains the same requirements found at
20 CFR 686.100.
Section 686.110
program?
What is the Job Corps
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Proposed § 686.110 describes the Job
Corps program. Job Corps is a national
program that operates in partnership
with States, communities, local
Workforce Development Boards, youth
councils, one-stop centers and partners,
and other youth programs to provide
social, academic, career and technical
education, and service-learning
opportunities, primarily in a residential
setting, for low-income young people.
Proposed § 686.110 reflects the
increased focus in sec. 141 of WIOA on
connecting young people to the labor
force by providing them with intensive
social, academic, career and technical
education in order to obtain secondary
school diplomas or recognized
credentials leading to successful careers
in in-demand industries or occupations,
the Armed Forces, or enrollment in
post-secondary education. The
program’s goals for students are
economic self-sufficiency, opportunities
for advancement, and responsible
citizenship.
Section 686.120 What definitions
apply to this part?
The definitions that are listed in this
section are specific to this proposed
part, which governs the Job Corps
program. Other definitions that apply to
the Job Corps program are defined under
secs. 3 and 142 of WIOA. Proposed
§ 686.120 describes definitions in four
categories.
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The first category is made up of
proposed definitions that are the same
as those included in the regulations at
20 CFR 686.120 that governed the Job
Corps program under WIA. These are
‘‘Absent Without Official Leave
(AWOL),’’ ‘‘Capital improvement,’’
‘‘Contract center,’’ ‘‘Enrollee,’’
‘‘Enrollment,’’ ‘‘Individual with a
disability,’’ ‘‘Interagency agreement,’’
‘‘Job Corps Director,’’ ‘‘National Office,’’
‘‘Placement,’’ ‘‘Regional appeal board,’’
‘‘Regional Director,’’ ‘‘Regional Office,’’
‘‘Regional Solicitor,’’ ‘‘Separation,’’
‘‘Student,’’ and ‘‘Unauthorized goods.’’
Because these definitions are the same
as those in the WIA regulations, the
Department has not included further
explanation of them below.
The second category is made up of
proposed definitions that are similar to
definitions included in the WIA
regulations at 20 CFR 670.120, but they
have been modified slightly due to
differences in the definitions contained
in WIOA. These are ‘‘Applicable Local
Board,’’ ‘‘Civilian Conservation Center
(CCC), ‘‘Contracting Officer,’’
‘‘Graduate,’’ ‘‘Job Corps,’’ ‘‘Job Corps
center,’’ ‘‘Low-income individual,’’
‘‘National training contractor,’’
‘‘Operational support services,’’
‘‘Operator,’’ and ‘‘Outreach and
admissions provider.’’
The third category is made up of
proposed definitions that were not
included in the WIA regulations, but
they are defined in sec. 142 of WIOA.
These are ‘‘Applicable one-stop center,’’
‘‘Former Enrollee,’’ and ‘‘Service
Provider.’’
The fourth category is made up of
proposed definitions that apply to the
Job Corps program and are commonly
used in these regulations, but do not
appear in the WIA regulations or in
WIOA. These are ‘‘Career Technical
Training,’’ ‘‘Career Transition Service
Provider,’’ and ‘‘Participant.’’
Aside from the terms in the first
category, the definitions are explained
as the terms appear in this proposed
section in alphabetical order, as follows:
Applicable Local Board—The
proposed definition of this term
implements the definition of
‘‘applicable Local Board’’ contained in
sec. 142 of WIOA. It is similar to the
definition of ‘‘Workforce Investment
Board’’ in the WIA regulations.
Applicable one-stop center—The
proposed definition of this term
implements the definition contained in
sec. 142 of WIOA.
Career Technical Training—The
proposed definition of this term means
career and technical education and
training, which is the term most often
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used by WIOA rather than ‘‘vocational
training,’’ as used in WIA.
Career Transition Service Provider—
The proposed definition of this term
means an organization acting under a
contract or other agreement with Job
Corps to provide career transition
services for graduates and, to the extent
possible, for former students. WIOA
uses both the term ‘‘Career Transition
Service Provider’’ and ‘‘Placement
Provider’’ interchangeably. Career
transition services are further explained
in subpart G of the proposed rule.
Contracting officer—The proposed
definition of this term is similar to the
definition of ‘‘contracting officer’’ in the
WIA regulations, but it does not include
‘‘Regional Director,’’ because
contracting officers are most often not
Regional Directors.
Former Enrollee—The proposed
definition of this term implements the
definition contained in sec. 142 of
WIOA.
Graduate—The proposed definition of
this term implements the definition
contained in sec. 142 of WIOA.
Job Corps—The proposed definition
of this term is similar to the definition
of ‘‘Job Corps’’ in the WIA regulations,
but it clarifies that the Job Corps is
established within the Department and
cites the applicable section of WIOA.
Job Corps center—The proposed
definition of this term is the same as the
definition in the WIA regulations,
except that this definition cites the
applicable section of WIOA.
Low-income individual—The
proposed definition of this term is the
same as the definition in the WIA
regulations, except that this definition
cites the applicable section of WIOA.
National training contractor—The
proposed definition of this term is
slightly different from the definition in
the WIA regulations, because the term
‘‘career and technical training’’ is used
rather than ‘‘vocational training.’’
However, the meaning remains
unchanged.
Operational support services—The
proposed definition of this term is
slightly different from the definition in
the WIA regulations, because the term
‘‘career and technical training’’ is used
instead of ‘‘vocational training.’’
However, the meaning remains
unchanged.
Operator—The proposed definition of
this term implements the definition of
‘‘operator’’ contained in sec. 142 of
WIOA. It is similar to the definition of
‘‘center operator’’ in the WIA
regulations.
Outreach and admissions provider The proposed definition of this term is
similar to the definition of ‘‘outreach
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and admissions agency’’ in the WIA
regulations, but it clarifies that the
entity performs recruitment in addition
to outreach and enrollment activities,
consistent with the definition in sec.
142 of WIOA.
Participant—The proposed definition
of this term clarifies which individuals
are considered participants for
performance reporting purposes under
proposed § 686.1010. The definition of
participant includes graduates and those
enrollees and former enrollees who have
completed the career preparation
period. It also includes enrollees and
former enrollees who have remained in
the program for 60 days or more,
regardless of whether they have
completed their career preparation
period. During the career preparation
period, the student learns,
demonstrates, and practices personal
responsibility and skills required in the
workplace; learns, demonstrates, and
practices job search skills; visits and
learns about one-stop centers; and
creates a personal career development
plan with the help of staff. In most
cases, the career preparation period
culminates with the commitment to the
Personal Career Development Plan. The
Department proposes this limitation
because students are not assigned to
trades and are not generally receiving
the services described subpart E of this
part until the career preparation period
is completed. The career preparation
period is described in Job Corps’ Policy
and Requirements Handbook.
Service Provider—The proposed
definition of this term implements the
definition contained in sec. 142 of
WIOA.
Section 686.130 What is the role of the
Job Corps Director?
Proposed § 686.130 describes the role
of the Job Corps Director, noting that he/
she has been delegated authority to
carry out the responsibility of the
Secretary under title I, subtitle C of
WIOA related to the operation of the Job
Corps program. Proposed § 686.130 also
clarifies that references in this part
referring to ‘‘guidelines’’ or ‘‘procedures
issued by the Secretary’’ mean that the
Job Corps Director issues such
guidelines. This proposed section
retains the same requirements as those
found at 20 CFR 686.130.
3. Subpart B—Site Selection and
Protection and Maintenance of Facilities
This proposed subpart describes how
sites for Job Corps centers are selected,
the handling of capital improvements
and new construction on Job Corps
centers, and responsibilities for facility
protection and maintenance. The
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requirements in this subpart are not
significantly different from the
corresponding requirements in the WIA
Job Corps regulations at 20 CFR part 686
subpart B. The Secretary, through
delegation of authority to the National
Director of Job Corps, must approve the
location and size of all Job Corps
centers, and establish procedures for
requesting, approving, and initiating
capital improvement and new
construction on Job Corps centers,
which serves to strengthen and enhance
the program as a whole.
Section 686.200 How are Job Corps
center locations and sizes determined?
Proposed § 686.200 explains that the
Secretary must approve the location and
size of all Job Corps centers, including
both contract centers and CCCs. The
Secretary also establishes procedures for
making decisions concerning the
establishment, relocation, expansion, or
closing of contract centers.
Section 686.210 How are center
facilities improvements and new
construction handled?
Proposed § 686.210 states that the
Secretary establishes procedures for
requesting, approving, and initiating
capital improvements and new
construction on Job Corps centers.
Section 686.220 Who is responsible for
the protection and maintenance of
center facilities?
Proposed § 686.220 states that the
Secretary establishes procedures for the
protection and maintenance of contract
center facilities owned or leased by the
Department. The proposed section also
states that when the Department of
Agriculture operates CCCs on public
land, it will be responsible for the
protection and maintenance of CCC
facilities. The Secretary issues
procedures for conducting periodic
facility surveys of centers to determine
their condition and to identify
additional physical needs. This
proposed section retains the same
requirements found at 20 CFR 670.220.
4. Subpart C—Funding and Selection of
Center Operators and Service Providers
In this proposed subpart the
Department implements new
requirements of WIOA with regard to
the operators of high-performing
centers, the length of contractual
agreements to operate Job Corps centers,
and how entities are selected to receive
funding to operate Job Corps centers and
to provide outreach, admissions, and
career transition support services. In
addition to adding to the list of
considerations currently used in
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selecting Job Corps center operators and
service providers, WIOA emphasizes
competition to increase the performance
and quality of the Job Corps program.
WIOA also provides that an entity, in its
role as incumbent operator of a center
deemed to be high performing, may
compete in any competitive selection
process carried out for an award to
operate that center, even in cases where
the selection of the operator is set aside
for small businesses as required by the
Federal Acquisition Regulation. This
serves to ensure continued access to
high quality training and education for
Job Corps students, since a high
performing incumbent operator has an
established and proven record of
providing it. WIOA also provides that a
center operations contracts cannot
exceed 2 years, with three 1-year
options to renew. This codifies current
Job Corps practice. Furthermore, WIOA
precludes the Secretary from exercising
an option to renew a center operations
contract for an additional 1-year period
if certain criteria are not met, with
limited exceptions. All of these new and
expanded provisions follow WIOA’s
theme of enhancing the Job Corps
program and providing access to high
quality training and education by
ensuring Job Corps centers are staffed
with high quality service providers.
Section 686.300 What entities are
eligible to receive funds to operate
centers and provide training and
operational support services?
Proposed § 686.300 implements secs.
147(a)(1), 147(e), and 145(a)(3) of WIOA,
establishing the entities eligible to
receive funds to operate Job Corps
centers, and to provide outreach and
admissions, career transition, and other
operational support services.
Proposed paragraphs (a)(1), (a)(2), and
(a)(4) reflect the entities eligible to
operate Job Corps centers listed in
WIOA sec. 147(a)(1)(A). Proposed
paragraph (a)(3) includes ‘‘Indian tribes
and organizations’’ as eligible center
operators, consistent with sec. 147(e) of
WIOA. For purposes of this section, the
Department interprets ‘‘Indian tribes
and organizations’’ consistent with sec.
147(e)(2) of WIOA, which provides that
the terms ‘‘Indian’’ and ‘‘Indian tribe’’
have the meanings given them in sec. 4
of the ISDEAA (codified at 25 U.S.C.
450b(d) and (e)), which says that
‘‘Indian tribe’’ means any Indian tribe,
band, nation, or other organized group
or community, including any Alaska
Native village or regional or village
corporation as defined in or established
pursuant to the Alaska Native Claims
Settlement Act (codified at 43 U.S.C.
1601 et seq.), which is recognized as
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eligible for the special programs and
services provided by the United States
to Indians because of their status as
Indians.
Proposed paragraph (b) lists the
entities eligible to receive funds to
provide necessary services to Job Corps
centers, including outreach and
admissions, career transition, and other
operational support services. Generally,
as provided in WIOA sec. 147(a)(1)(B),
local or other entities with the necessary
capacity to provide activities described
in this part are considered eligible
entities. Paragraphs (b)(1), (b)(2), and
(b)(3) reflect the entities listed in sec.
145(a)(3) of WIOA. Currently Job Corps
also allows private for-profit and nonprofit corporations to act as eligible
service providers; paragraph (b)(2)
clarifies that private for-profit and nonprofit corporations continue to be
included as business organizations
eligible to receive funds as service
providers.
Section 686.310 How are entities
selected to receive funding to operate
centers?
Proposed § 686.310 implements secs.
147(a)(2) and (a)(3) of WIOA, which
contain new provisions to strengthen
the Job Corps contracting process by
requiring specific criteria that
emphasize quality, performance, and
accountability to be addressed as part of
the selection process for center
operators. The proposed section adopts
these criteria to improve the
effectiveness of the program in helping
young people become responsible
citizens by providing them with the
skills they need for successful careers in
in-demand industry sectors,
occupations, or the Armed Forces, or for
enrollment in post-secondary education.
The Department welcomes comments
on how best to embed a focus on
quality, performance, and accountability
into the procurement process.
Proposed § 686.310(a) implements
sec. 147(a)(2)(A) of WIOA, stating that
the Secretary selects eligible entities to
operate contract centers on a
competitive basis in accordance with
applicable statutes and regulations. This
paragraph also explains that in selecting
an entity, ETA issues requests for
proposals (RFPs) for the operation of all
contact centers according to the Federal
Acquisition Regulation (48 chapter 1)
and the Department’s Acquisition
Regulation (48 chapter 29). ETA
develops RFPs for center operators in
consultation with the Governor, the
center workforce council (if
established), and the Local Board for the
workforce development area in which
the center is located.
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Proposed paragraph (b) requires that
the RFPs for each contract center
describe uniform specifications and
standards, as well as specifications and
requirements that are unique to the
operation of the specific center.
Proposed paragraph (c) implements
the factors for selection of an entity to
operate a Job Corps center established in
sec. 147(a)(2)(B)(i) of WIOA, by
specifying that the selection criteria will
be established by the Secretary and set
forth in the RFP. Proposed paragraphs
(c)(1) through (5) set forth the specific
criteria that must be included in the
RFP, as listed in sec. 147(a)(2)(B)(i) of
WIOA. Paragraph (c)(1) retains the
language found in the WIA regulations
at 20 CFR 670.310(c)(1), requiring that
the offeror demonstrate its ability to
coordinate the activities carried out
through the Job Corps center with
activities carried out under the
appropriate State and local workforce
investment plans. This supports the
overall goal of better connecting and
aligning Job Corps with the workforce
system.
Proposed paragraphs (c)(2) through (4)
implement the criteria at WIOA secs.
147(a)(2)(B)(i)(II) through
147(a)(2)(B)(i)(IV). These provisions
support the goal of better alignment
with the workforce system and the
increased focus on past performance
and student outcomes against the
primary indicators of performance for
eligible youth and the Job Corps
program.
Proposed paragraph (c)(5) is a new
element in the selection process
established in sec. 147(a)(2)(B)(i)(V) of
WIOA, requiring that the criteria
include the offeror’s ability to
demonstrate a record of successfully
assisting at-risk youth to connect to the
workforce, including providing them
with intensive academics and career
and technical training. This aligns with
the increased focus on student outcomes
and emphasizes the purpose of the
program, which is to provide students
with the skills they need for successful
careers in in-demand industries,
occupations, or the Armed Forces, or to
continue on to post-secondary
education. The Department welcomes
comments on how to assess potential
offerors’ past records in assisting at-risk
youth to connect to the workforce.
Proposed paragraph (d) implements
the additional factors for selection of an
entity to operate a Job Corps center that
are specified in sec. 147(a)(3) of WIOA.
These provisions support the goals of
better alignment with the workforce
system and increased focus on past
performance and student outcomes
against the primary indicators of
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performance for eligible youth and the
Job Corps program. In addition,
paragraph (d) specifies that the
information described in paragraphs
(d)(1) through (11) must be submitted at
such time in the procurement process,
and in such form, as the Secretary
determines is appropriate.
Section 686.320 What if a current
center operator is deemed to be an
operator of a high-performing center?
Proposed § 686.320(a) implements
sec. 147(b)(1) of WIOA, allowing an
entity that, in its role as the incumbent
operator of a center, meets the
requirements of this section to be
considered an operator of a highperforming center. If the entity is
considered an operator of a highperforming center, the entity must be
allowed to compete in any competitive
selection process carried out for an
award to operate that center. This means
that in cases where the selection of the
operator of a particular center is set
aside for small businesses as required by
the Federal Acquisition Regulation, the
incumbent operator may participate in
the subsequent competition for the
center operations contract even if the
operator would be otherwise ineligible
to compete as a result of the set-aside.
Proposed paragraph (b) implements
sec. 147(b)(2) of WIOA, which provides
the criteria an operator must meet to be
considered an operator of a highperforming center for the purposes of
paragraph (a). First, under paragraph
(b)(1), the center must be ranked among
the top 20 percent of Job Corps centers
for the most recent preceding PY
according to the ranking described in
proposed § 686.1070. Second, under
paragraph (b)(2), the center must meet
the expected levels of performance
established with respect to each of the
primary indicators of performance for
eligible youth found in proposed
§ 686.1000. A center will be determined
to have met the expected measures of
performance if, per proposed
§ 686.320(b)(2)(i) and (ii), it achieved an
average of at least 100 percent of the
expected level of performance for the
indicator over the most recent preceding
3 PYs, and, for the most recent
preceding PY for which information is
available at the time the determination
is made, the center achieved at least 100
percent of the expected level of
performance established for the
indicator. This provision emphasizes
the importance of meeting the expected
levels of performance related to the
primary indicators, by providing an
opportunity for the most successful
incumbent contractors to compete to
operate a high-performing center even if
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the competition for that center is a small
business set-aside and the incumbent
would not normally meet the criteria to
compete in a small business set-aside
competition. The Department
anticipates going through the market
research phase of the competition before
determining whether the competition
will be set aside for small businesses; a
determination as to whether the
incumbent contractor meets the criteria
in proposed paragraph (b) will likely be
made after the market research phase is
completed and before the issuance of
the solicitation.
Proposed paragraph (c) implements
the transition procedures in sec.
147(b)(3) of WIOA, and describes the
criteria that must be met for an operator
to be considered to be an operator of a
high-performing center if any of the PYs
described in paragraph (b) precede the
implementation of the establishment of
the expected levels of performance and
the application of the primary indicators
of performance for eligible youth.
Section 686.330 What is the length of
an agreement entered into by the
Secretary for operation of a Job Corps
center and what are the conditions for
renewal of such an agreement?
Proposed § 686.330 implements secs.
147(f)–(g) of WIOA, which contain new
provisions to strengthen the Job Corps
contracting process by enacting new
requirements for the length of center
operations contracts and the conditions
under which they may be renewed.
These provisions emphasize quality and
integrity in center operators and direct
the Secretary not to exercise option
years for contracts where minimum
standards of performance related to the
primary indicators of performance for
eligible youth are not met. These
provisions further support the overall
vision of improved performance and
accountability for the Job Corps
program.
Proposed § 686.330(a) implements
sec. 147(f) of WIOA, which provides
that contracts to operate a Job Corps
center cannot exceed 2 years, but that
the Secretary can exercise any
contractual option to renew the
agreement in 1-year increments for not
more than 3 additional years. This
proposed paragraph reflects current Job
Corps contracting practice.
Proposed paragraph (b) explains that
the Secretary will establish procedures
for evaluating the option to renew an
agreement that include an assessment of
the factors described in proposed
paragraph (c), a review of contract
performance and financial reporting
compliance, a review of the program
management and performance data
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described in proposed §§ 686.975 and
686.980, and an evaluation of the factors
described in proposed paragraph (d).
Proposed paragraph (c) implements
sec. 147(g)(4) of WIOA, which
establishes conditions that must be met
for the Secretary to exercise a
contractual option to renew an
agreement for an entity to operate a Job
Corps center.
Proposed paragraph (d) implements
sec. 147(g)(1) of WIOA, which prohibits
the Secretary from renewing an
agreement for an entity to operate a Job
Corps center for any 1-year additional
period if, for both of the 2 most recent
preceding PYs for which information is
available at the time the determination
to exercise an option is made, the center
both has been ranked in the lowest 10
percent of Job Corps centers according
to the ranking described in proposed
§ 686.1070 and has failed to achieve an
average of 50 percent or higher of the
expected level of performance with
respect to each of the primary indicators
of performance for eligible youth (as
described in proposed § 686.1000). If a
second year of program data is
unavailable at the time the
determination regarding the contractual
option is made, proposed paragraph (d)
requires the use of data from the
preceding year from which performance
information is available. This provision
emphasizes the center operator’s
accountability for meeting the expected
levels of performance related to the
primary indicators by establishing
minimum performance standards that
must be met for the Secretary to exercise
an option year.
Proposed paragraph (e) addresses the
availability of information and data
necessary to make the determination
required by proposed paragraph (d). The
availability of sufficient information to
make this determination is a particular
concern in situations where there is a
change of operators at the beginning of
an agreement, and there is a period of
time during which student outcome
data, and thus the primary indicators of
performance, reflect the performance of
the previous operator rather than the
operator upon whose contract the
determination is being made.
In order to prevent an entity from
being penalized for the poor
performance of the previous operator,
proposed paragraph (e)(1) states that
information will only be considered to
be available for a PY for purposes of
paragraph (d) if for each of the primary
indicators of performance, all of the
students included in the cohort being
measured either began their
participation under the current center
operator or, if they began their
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participation under the previous center
operator, were on center for at least 6
months under the current operator. Six
months represents a sufficient length of
time for the efforts of the current
operator to influence the outcomes
achieved by a student. Proposed
paragraph (e)(2) further provides that if
complete information for any of the
indicators of performance described in
paragraph (d)(2) is not available for
either of the 2 PYs described in
paragraph (d), the Secretary will review
partial PY data from the most recent PY
for those indicators, if at least 2 quarters
of data are available, when making the
determination required under paragraph
(d)(2). The Department recognizes that
data for some of the primary indicators
of performance do not become mature
for an extended period of time. For
example, employment in the fourth
quarter after exit and credential
attainment are measured more than a
year after the student exits the program
and then are reported in a subsequent
quarter. Because the Secretary’s
decision on whether to exercise the first
option year is normally made about 18
months after the contract begins, in
many cases complete information on
employment in the fourth quarter after
exit and credential attainment will not
be available at the time the first option
year decision is made. The Department
invites comments on the issue of
information availability, including the
threshold for the point at which the
performance of the center reflects the
performance of the current operator.
Proposed paragraph (f) provides a
transition provision for establishing the
criteria that must be met for an operator
to meet the requirements of proposed
paragraph (d). The transition provisions
apply if any of the PYs described in
paragraph (d) precede the
implementation of the primary
indicators of performance for eligible
youth and establishment of the expected
levels of performance. While the WIOA
statute does not include a transition
provision, it is necessary to add such a
provision because although the WIOA
contracting provisions, including this
section, go into effect on July 1, 2015,
the WIOA performance reporting
requirements do not go into effect until
July 1, 2016. In addition, there will be
a gap in time during which initial data
on the primary indicators of
performance is being collected and
baselines are being established when the
expected levels of performance will not
have been established and therefore, the
data described in paragraph (d)(2) will
not yet be available. ETA has modeled
the transition language in proposed
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paragraph (f) on the transition provision
in WIOA sec. 147(b)(3), which is used
to determine whether a center is a high
performing center, and based on criteria
similar to the criteria in proposed
paragraph (d). The transition bases the
determination on similar data points
using the performance of the Job Corps
center regarding the national goals or
targets established by the Office of the
Job Corps under the previous
performance accountability system,
which is the available data that most
closely aligns with the requirement in
paragraph (d). Therefore, the
Department chose this as the best proxy
data available. The Department invites
comments on the approach to
transitioning from the WIA to WIOA
performance management systems.
Proposed paragraph (g), implements
sec. 147(g)(2) of WIOA, which provides
an exception to the prohibition against
exercising an option year for an operator
of a low-performing center as
determined under proposed paragraph
(d).
As required in sec. 147(g)(3) of WIOA,
if the Secretary exercises a contractual
option by applying the exception
described in proposed paragraph (g),
proposed paragraph (h) requires the
Secretary to provide a detailed
explanation of the rationale for
exercising the option to the Committee
on Education and the Workforce of the
House of Representatives and the
Committee on Health, Education, Labor,
and Pensions of the Senate.
Section 686.340 How are entities
selected to receive funding to provide
outreach and admission, career
transition and other operational support
services?
Proposed § 686.340(a) implements
sec. 147(a)(2)(A) of WIOA, generally
describing the process by which eligible
entities are selected to provide outreach
and admissions, career transition, and
other operational support services to the
Job Corps program.
Proposed paragraph (b) requires that
the RFP for each support service
contract describes uniform
specifications and standards, as well as
specifications and requirements that are
unique to the operation of the specific
center.
Proposed paragraph (c) implements
the factors for selection of an entity to
provide operational support services, as
established in sec. 147(a)(2)(B)(i) of
WIOA, by specifying that the selection
criteria will be established by the
Secretary and set forth in the RFP. The
criteria listed in proposed paragraphs
(c)(1) through (5) are the same as those
in proposed § 686.310(c)(1) through (5).
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Proposed paragraph (c)(6) provides that
the Secretary may require additional
information or selection factors in the
RFP.
Section 686.350 What conditions
apply to the operation of a Civilian
Conservation Center?
Proposed § 686.350 is a new section
that implements sec. 147(d) of WIOA.
Proposed paragraph (a) implements sec.
147(d)(1) of WIOA, establishing that the
Secretary of Labor may enter into an
agreement with the Secretary of
Agriculture to operate Job Corps centers
called CCCs. Paragraph (a) also contains
the description of the characteristics of
CCCs.
Proposed paragraph (b) retains the
language in the WIA regulations at 20
CFR 670.310(e) that when the Secretary
of Labor enters into an agreement with
the Secretary of Agriculture for the
funding, establishment, and operation of
CCCs, provisions are included to ensure
that the Department of Agriculture
complies with the regulations under this
part.
Proposed paragraph (c), implementing
sec. 147(d)(2) of WIOA, permits
enrollees in CCCs to provide assistance
in addressing national, State, and local
disasters, consistent with relevant child
labor laws. This proposed paragraph
further requires that the Secretary of
Agriculture ensure that enrollees are
properly trained, equipped, supervised,
and dispatched consistent with the
standards for the conservation and
rehabilitation of wildlife established
under the Fish and Wildlife
Coordination Act (16 U.S.C. 661 et seq.).
Proposed paragraph (d) requires the
Secretary of Agriculture to designate a
Job Corps National Liaison to support
the agreement between the Departments
of Labor and Agriculture to operate
CCCs, as required by sec. 147(d)(3) of
WIOA.
Proposed paragraph (e) permits the
Secretary, in consultation with the
Secretary of Agriculture, to select a
private entity to operate a CCC using the
process and requirements described at
§ 686.310.
Proposed paragraph (f) permits the
Secretary to close a CCC as part of the
Department’s administration of the Job
Corps program if it determines that such
action would be appropriate.
Section 686.360 What are the
requirements for award of contracts and
payments to Federal agencies?
Proposed § 686.360 states the
requirements and authorities that apply
to the award of contracts and payments
to Federal agencies. This section retains
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the same requirements as those in the
WIA regulations at 20 CFR 670.320.
5. Subpart D—Recruitment, Eligibility,
Screening, Selection and Assignment,
Enrollment
This proposed subpart describes who
is eligible for Job Corps under WIOA
and provides additional factors that are
considered in selecting eligible
applicants for enrollment. Also
described is how applicants who meet
eligibility and selection requirements
are assigned to centers, which
implements WIOA’s new requirements
that the assignment plan consider the
size and enrollment level of a center,
including the education, training, and
supportive services provided, and the
performance of the Job Corps center
related to the newly established
expected levels of performance. WIOA
also amends the assignment plan to
provide for assignments at the center
closest to home that offers the type of
career and technical training selected by
the individual rather than just the center
closest to home, which improves access
to high quality training for Job Corps
students. These proposed regulations
serve to enhance the Job Corps program
overall by ensuring that the individual
training and education needs of
applicants and enrollees are met in
accordance with the requirements of
WIOA. They also ensure that applicants
and enrollees are provided accurate
information about the standards and
expectations of the Job Corps program
and are fully prepared to be successful.
Section 686.400 Who is eligible to
participate in the Job Corps program?
Proposed paragraph (a) implements
the eligibility requirements in sec.
144(a) of WIOA. According to WIOA, to
be eligible to participate in the Job
Corps, an individual must be at least 16
and not more than 24 years old at the
time of enrollment, except that: Under
proposed paragraph (a)(1)(i), the Job
Corps Director may waive the maximum
age limitation described in paragraph
(a)(1) and the requirement in paragraph
(a)(1)(ii) for an individual with a
disability who is otherwise eligible
according to the requirements listed in
§§ 686.400 and 686.410. Proposed
paragraph (a)(1)(ii) states that not more
than 20 percent of individuals enrolled
nationwide can be aged 22 to 24 at the
time of enrollment. The regulatory
language in paragraph (a)(1)(i) differs
from the language in the WIA
regulations at 20 CFR 670.400(a)(1). The
proposed language is intended to enable
the Job Corps Director to admit
individuals with disabilities even if they
exceed the age limitations in paragraph
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(a) as long as the Director determines
that the individual meets all the other
eligibility requirements listed in
proposed § 686.410.
In addition to satisfying the age
requirements above, proposed § 686.410
lists the additional requirements for a
person to be eligible to participate in Job
Corps. An individual must also be a
low-income individual and be facing
one or more of the following barriers to
education and employment: Be basic
skills deficient, as defined in WIOA sec.
144(a)(3)(A); be a high school dropout;
be homeless, as defined in sec. 41043(6)
of the Violence Against Women Act of
1994 (42 U.S.C. 14043e–2(6)); be a
homeless child or youth, as defined in
sec. 725(2) of the McKinney-Vento
Homeless Assistance Act (42 U.S.C.
1143a(2)); a runaway, an individual in
foster care, or an individual who was in
foster care and has aged out of the
system; be a parent; or require
additional education, career, and
technical training, or workforce
preparation skills in order to obtain and
retain employment that leads to
economic self-sufficiency.
Proposed paragraph (b) implements
the special eligibility rule for veterans in
sec. 144(b) of WIOA. That rule states
that an otherwise eligible veteran may
still enroll in Job Corps if they do not
meet the income requirement at
§ 686.400(a)(2) as a result of military
income earned within the 6-month
period prior to the individual’s
application for Job Corps, per 38 U.S.C.
4213.
Section 686.410 Are there additional
factors which are considered in
selecting an eligible applicant for
enrollment?
In addition to the basic eligibility
requirements identified above, proposed
§ 686.410 lists several additional criteria
that must be met before an otherwise
eligible applicant may be enrolled in Job
Corps.
Proposed paragraph (a) provides,
pursuant to sec. 145(a)(2)(C) of WIOA,
that an otherwise eligible applicant can
be selected for enrollment in Job Corps
only if a determination is made, based
on information relating to the
background, needs and interests of the
applicant, that the applicant’s education
and career and technical needs can best
be met through the Job Corps program.
An additional determination, as
described in proposed paragraph (b),
implementing sec. 145(b)(1)(A) of
WIOA, must also be made that there is
a reasonable expectation that the
applicant can participate successfully in
group situations and activities, and is
not likely to: Engage in actions that
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would potentially prevent other
students from receiving the benefit of
the program; be incompatible with the
maintenance of sound discipline; or
impede satisfactory relationships
between the center to which the student
is assigned and the surrounding local
communities. These requirements
support the vision of Job Corps centers
as safe environments with a culture that
is conducive to student learning and
achievement of the academic, technical,
and social skills needed to obtain
employment or enter post-secondary
education.
Proposed paragraph (c) requires that
an applicant must also be made aware
of and understand the center’s rules, the
consequences for failing to observe the
rules, and agree to comply with the
rules.
Proposed paragraph (d) provides that
no one will be denied enrollment in Job
Corps solely on the basis of contact with
the criminal justice system, except if the
individual has been convicted of a
felony consisting of murder, child
abuse, or a crime involving rape or
sexual assault, in accordance with secs.
145(b)(2) and (3) of WIOA. All
applicants must also submit to a
background check conducted according
to procedures established by the
Secretary and with applicable State and
local laws. If the background check
finds that the applicant is on probation,
parole, under a suspended sentence, or
under the supervision of any agency as
a result of court action or
institutionalization, the court or
appropriate supervising agency may
certify in writing that it will approve of
the applicant’s participation in Job
Corps, and provide full release from its
supervision, and that the applicant’s
participation and release does not
violate applicable laws and regulations.
However, the Department notes that
although these individuals are eligible,
the final admission decision remains
with the Job Corps.
Finally, proposed paragraph (e)
requires that suitable arrangements be
made for the care of any dependent
children for the proposed period of
enrollment.
Section 686.420 Are there any special
requirements for enrollment related to
the Military Selective Service Act?
As required by WIOA sec. 146(a), this
proposed section requires each male
applicant 18 years of age or older, or a
male student who turns 18 years of age,
to present evidence that he has
complied with sec. 3 of the Military
Selective Service Act (50 U.S.C. App.
451 et seq.). These requirements are the
same as those found at 20 CFR 670.420.
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Section 686.430 What entities conduct
outreach and admissions activities for
the Job Corps program?
Proposed § 686.430 states that the
Secretary makes arrangements with
outreach and admission agencies to
perform Job Corps recruitment,
screening and admissions functions
according to standards and procedures
issued by the Secretary. Entities eligible
to receive funds to provide outreach and
admissions service are identified in
§ 686.300(b).
Section 686.440 What are the
responsibilities of outreach and
admissions providers?
Proposed paragraphs (a) and (b) of
this section require outreach and
admission providers to perform a
number of tasks to recruit and enroll
students, including completing all Job
Corps application forms and
determining whether the applicants
meet the eligibility and selection criteria
outlined for participation in the
program as provided in proposed
§§ 686.400 and 686.410.
Proposed paragraph (c) clarifies that
the Secretary may require that the
National Director or his or her designee
make determinations with regard to one
or more of the eligibility criteria.
This proposed section retains the
same requirements as those found at 20
CFR 670.450.
Section 686.450 How are applicants
who meet eligibility and selection
criteria assigned to centers?
In accordance with WIOA secs. 145(c)
and (d), proposed § 686.450 describes
the process for assigning applicants to
Job Corps centers.
Applicants who meet the eligibility
and selection requirements of proposed
§§ 686.400 and 686.410 are assigned to
a center based on an assignment plan
developed by the Secretary based on an
analysis of the factors described in
proposed paragraph (a). These factors
are specified in secs. 145(c) and (d) of
WIOA. They are similar to the factors
for the assignment plan required to be
developed under WIA, except that sec.
145(c)(2)(D) of WIOA also requires the
Secretary to consider the performance of
the center, as described in proposed
§ 686.450(a).
Proposed paragraph (b) describes the
general rules for assignment of
individual enrollees, consistent with
sec. 145(d) of WIOA.
In accordance with sec. 145(d)(2) of
WIOA, and similar to the same
requirement in WIA, proposed
paragraph (c) mandates that if a parent
or guardian objects to the assignment of
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a student under the age of 18 to a center
other than the center closest to home
that offers the desired career and
technical training, the Secretary must
not make such an assignment.
Section 686.460 What restrictions are
there on the assignment of eligible
applicants for nonresidential enrollment
in Job Corps?
In accordance with WIOA sec. 147(c),
this proposed section requires that no
more than 20 percent of students
enrolled in Job Corps nationwide may
be nonresidential students.
Section 686.470 May an individual
who is determined to be ineligible or an
individual who is denied enrollment
appeal that decision?
Proposed § 686.470(a) describes the
process for an applicant to appeal a
denial of their application.
Proposed paragraph (b) states that if
an applicant believes that he or she has
been determined ineligible or not
selected for enrollment in violation of
the nondiscrimination and equal
opportunity provisions contained in sec.
188 of WIOA and at 29 CFR part 37, the
individual may file a complaint as
described by the nondiscrimination
regulations at 29 CFR part 37. Finally,
proposed paragraph (c) requires that an
applicant denied enrollment be referred
to the appropriate one-stop center or
other service provider as appropriate.
This proposed section retains the
same requirements as those found at 20
CFR 670.470.
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Section 686.480 At what point is an
applicant considered to be enrolled in
Job Corps?
Proposed § 686.480 delineates when
an applicant is considered to be
enrolled in Job Corps and requires that,
based on procedures issued by the
Secretary, center operators must
document the enrollment of new
students.
This proposed section retains the
same requirements as those found at 20
CFR 670.480.
Section 686.490 How long may a
student be enrolled in Job Corps?
This proposed section implements the
requirements in sec. 146(b) of WIOA.
Proposed paragraph (a) states the
general rule that a student may remain
enrolled in Job Corps for no more than
2 years.
However, proposed paragraph (b)
implements four exceptions to this rule,
consistent with sec. 146(b) of WIOA,
which permit the 2 years to be extended
in specific cases. Paragraph (b)(1)
permits the Secretary to extend the 2
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year enrollment period in special cases,
according to procedures issued by the
Secretary. Paragraph (b)(2) permits up to
a 1 year extension of a student’s
enrollment in an advanced career
training program in order to complete
the program. Paragraph (b)(3) permits an
extension for a student with a disability
who would reasonably be expected to
meet the standards for a Job Corps
graduate if allowed to participate in the
Job Corps for up to an additional year.
Finally, proposed paragraph (b)(4)
permits a student who participates in
national service authorized by a CCC to
have his or her enrollment extended for
the amount of time equal to the period
of national service. This paragraph (b)(4)
implements sec. 146(a)(3) of WIOA.
WIOA also states that students enrolled
in CCCs may provide assistance in
addressing national, State, and local
disasters (sec. 147(d)(2) of WIOA; see
proposed § 686.610(a)). Both of these
provisions are new in WIOA. Taken
together, these provisions show WIOA’s
added attention to ensuring that Job
Corps students in CCCs have the
flexibility to provide assistance, such as
fire-fighting, for example, when needed
in a disaster. The Department notes that
similar to the provision in proposed
§ 686.490(b)(4) that addresses national
service, the Secretary is authorized to
extend the enrollment period for
students who perform service to address
State and local disasters or other needs
under proposed § 686.490(b)(1).
6. Subpart E—Program Activities and
Center Operations
This proposed subpart describes the
services and training that a Job Corps
center must provide. Job Corps
distinguishes itself from other training
programs by providing students with
residential services in combination with
hands-on training and experience
aligned with industry standards. While
education, training, and job placement
are core components of what the
program offers, this section of the
regulations describes how Job Corps
provides a comprehensive service
model that also includes life skills,
emotional development, personal
management, and responsibility. New
regulations addressing advanced career
training programs are included; such
programs provide broader opportunities
for higher wages and career
advancement.
This proposed subpart also
establishes the requirements for a
student accountability system and
behavior management system. Job
Corps’ policy for violence, drugs, and
unauthorized goods is described.
Requirements to ensure students are
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provided due process in disciplinary
actions, to include center fact-finding
and review board and appeal
procedures are outlined. These systems
and requirements serve to enhance the
Job Corps program by ensuring that Job
Corps centers are safe and secure
environments that promote the
education and training of students.
Approved experimental, research and
demonstration projects related to the Job
Corps program are authorized in this
proposed subpart, which also serves to
enhance the program.
Section 686.500 What services must
Job Corps centers provide?
Proposed paragraph (a) specifies that
Job Corps centers must provide an
intensive, well-organized and fully
supervised program, including training
activities, work-based learning and
experience, residential support services,
and other services as required by the
Secretary.
Proposed paragraph (a)(1) describes
training activities to include career and
technical training, academic education,
and employability and independent
learning and living skills development.
Job Corps is first and foremost a career
training program, and an essential part
of preparing enrollees for success upon
exit necessitates providing
employability, social, and independentliving skills.
Proposed paragraph (b) provides that
students must be provided with access
to career services as described in WIOA
secs. 134(c)(2)(A)(i) through (xi).
Section 686.505 What types of training
must Job Corps centers provide?
In order to provide enrollees with the
intensive program of activities required
by WIOA, several types of training must
be provided by Job Corps centers.
Proposed paragraph (a) requires that
centers provide students with a CTT
program that is aligned with industryrecognized standards and credentials.
Ensuring that training programs are
aligned with industry standards and
credentials better prepares students to
attain in-demand, long-term
employment; further career
enhancement along a career pathway; or
advanced education, including
apprenticeships.
Proposed paragraph (b) requires that
centers provide an education program,
including English language acquisition
programs, as required by sec. 148(a)(1)
of WIOA, as well as high school
diploma (HSD) or high school
equivalency certification programs, and
academic skills training. These skills are
necessary for students to master
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technical skills in their chosen CTT
programs.
Proposed paragraph (c) states that
centers must provide programs for
students to learn and practice
employability and independent learning
and living skills. These skills include:
Job search and career development,
interpersonal relations, driver’s
education (as required by sec. 148(a)(1)
of WIOA), study and critical thinking
skills, financial literacy and other skills
specified in program guidance issued by
the Secretary. Learning these skills will
enable long-term labor market
attachment and are critical to the
continuing success of enrollees after
leaving the Job Corps program.
Proposed paragraph (d) requires all
Job Corps training programs to be based
on industry and academic skills
standards leading to recognized
industry and academic credentials,
applying evidence-based instructional
approaches, with the goal of placing
students in unsubsidized employment
in in-demand jobs with career
advancement opportunities; enrollment
in advanced education and training
programs or apprenticeships; or
enlistment in the Armed Forces.
Responsiveness to employers’ and
industries’ needs for employees who are
prepared with the academic, technical,
and employability skills necessary for
career success is required in order to
effectively place students and to sustain
Job Corps’ relationships with employers.
Proposed paragraph (e) requires that
specific career and technical training
programs offered by individual centers
must be approved by the Regional
Director. Approval is necessary to
ensure that the training provided by Job
Corps meets industry workforce needs.
Proposed paragraph (f) states the
responsibilities of the center workforce
council in shaping a center’s career and
technical training program, as described
in § 686.800.
Proposed paragraph (g) retains the
same requirements as those in the WIA
regulations at 20 CFR 670.505(c),
requiring that each center must
implement a system to evaluate and
track the progress and achievement of
each student at regular intervals.
Proposed paragraph (h) states that
each center must develop a training
plan that must be available for review
and approval by the appropriate
Regional Director. It retains the same
requirements as those in 20 CFR
670.505(d).
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Section 686.510 Are entities other than
Job Corps center operators permitted to
provide academic and career and
technical training?
Proposed paragraph (a) implements
sec. 148(b) of WIOA, which lists the
entities that the Secretary may use to
provide career technical and academic
education of Job Corps students, as long
as the entity can provide education and
training substantially equivalent in cost
and quality to that which the Secretary
could provide through other means.
Proposed paragraph (b) states that
these entities will be selected in
accordance with the requirements of
§ 686.310.
Section 686.515 What are advanced
career training programs?
Advanced career training provides
students an opportunity to receive
advanced education or training while
still receiving the benefits and services
provided by Job Corps. In order to be
eligible, students must have a HSD or its
equivalent and have completed a Job
Corps CTT program. Proposed
paragraphs (a) and (b) restate the
requirements for advanced career
training programs in secs. 148(c)(1)–(2)
of WIOA.
Advanced career training programs
are authorized by the Secretary based on
the relationship between on board
strength and training slot availability.
Proposed paragraph (c), which restates
the requirements found in WIOA sec.
148(c)(3), permits a center operator to
enroll more students than otherwise
authorized by the Secretary in an
advanced career training program if, in
accordance with standards developed
by the Secretary, the operator
demonstrates that participants in the
program have achieved a satisfactory
rate of training and placement in
training-related jobs, and for the most
recently preceding 2 PYs, the operator
has, on average, met or exceeded the
primary indicators for eligible youth
described in § 686.980.
Section 686.520 What responsibilities
do the center operators have in
managing work-based learning?
This section retains the same
requirements as those in the WIA
regulations at 20 CFR 670.515. Proposed
§ 686.520(a) requires that center
operators emphasize and implement
work-based learning programs for
students through center program
activities, including career and
technical skills training, and through
arrangements with employers. This
paragraph further requires that workbased learning must be under actual
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working conditions and be designed to
enhance the employability,
responsibility, and confidence of the
students. Work-based learning usually
occurs in tandem with students’ career
and technical training, and is intended
to develop a further understanding of
career opportunities, employer
expectations, and the impact of postsecondary education in the workplace.
Work-based learning can include
structured, hands-on experiences, as
well as workplace tours, employer
presentations, and job shadowing to
help students refine their career
objectives.
Proposed paragraph (b), in accordance
with sec. 159(g)(2) of WIOA, states that
the center operator must ensure that the
students are assigned only to
workplaces that meet the safety
standards described in § 686.920.
Section 686.525 Are students
permitted to hold jobs other than workbased learning opportunities?
Proposed § 686.525 states that a center
operator may authorize a student to
participate in gainful leisure time
employment, as long as the employment
does not interfere with required
scheduled academic and CTT activities.
This section retains the same
requirements as those in the WIA
regulations at 20 CFR 670.520.
Section 686.530 What residential
support services must Job Corps center
operators provide?
Proposed § 686.530 states that Job
Corps center operators must provide
residential support services according to
procedures issued by the Secretary.
Residential support services are critical
for the success of the Job Corps
programs because they are central to
creating and maintaining environments
that allow enrollees to learn, practice
independent and community living
skills, promote personal responsibility,
and reinforce social and employability
skills, such as a positive attitude,
dependability, and teamwork. This
proposed section retains largely the
same requirements as those contained in
the WIA regulations at 20 CFR 670.525.
The Department notes that one of the
requirements is that a student
leadership program and an elected
student government is supported by the
center operator. The goals of student
leadership programs are to provide
opportunities for interested students to
develop leadership skills through
participation in student governance,
representing Job Corps in the
community at large, planning and
leading Job Corps events, and providing
input and feedback for center
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management decisions that impact
student services and/or residential
living.
Section 686.535 Are Job Corps centers
required to maintain a student
accountability system?
Job Corps centers are required to
maintain a student accountability
system, as described at proposed
§ 686.535. This proposed section retains
the same requirements as those
contained in the WIA regulations at 20
CFR 670.530. An accountability system
is important to ensure the safety and
security of Job Corps students and to
track participation in various activities
in order to evaluate program delivery.
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Section 686.540 Are Job Corps centers
required to establish behavior
management systems?
Proposed § 686.540 states that each
Job Corps center must establish and
maintain a behavior management
system, based on a behavior
management plan, consistent with the
standards of conduct and procedures
established by the Secretary. The
behavior management plan must be
approved by the Job Corps regional
office and reviewed annually. The
system must include Job Corps’ zero
tolerance policy for violence and drugs
as described in § 686.545.
Section 686.545 What is Job Corps’
zero tolerance policy?
Proposed § 686.545(a) requires all
center operators to comply with Job
Corps’ zero tolerance policy as
established by the Secretary. Infractions
addressed in the zero tolerance policy
must include, but are not limited to:
Actions of violence, as defined by the
Secretary; use, sale, or possession of a
controlled substance, as defined at 21
U.S.C. 802; abuse of alcohol; possession
of unauthorized goods; or other illegal
or disruptive activity.
Proposed paragraph (b) implements
secs. 145(a)(2)(A) and 152(b)(2) of
WIOA, providing that all students must
be tested for drugs as a condition of
enrollment.
Proposed paragraph (c) provides that
the zero tolerance policy established by
the Secretary specifies the offenses that
will result in the separation of students
from the Job Corps. This paragraph
further provides that the center director
is expressly responsible for determining
when such an offense has occurred.
Section 686.550 How does Job Corps
ensure that students receive due process
in disciplinary actions?
Proposed § 686.550 provides that a
center operator must ensure that all
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students receive due process in
disciplinary proceedings according to
procedures developed by the Secretary.
This proposed section retains the same
requirements as those contained in the
WIA regulations at 20 CFR 670.545.
Section 686.555 What responsibilities
do Job Corps centers have in assisting
students with child care needs?
Proposed § 686.555 implements the
requirement in sec. 148(e) of WIOA that
the Secretary provide for child care to
the extent practicable. Proposed
paragraph (a) encourages Job Corps
centers to coordinate with outreach and
admissions agencies to assist applicants,
whenever feasible, with making
arrangements for child care. This
paragraph also requires that, prior to
enrollment, a program applicant with
dependent children who provides
primary or custodial care must certify
that suitable arrangements for child care
have been established for the proposed
period of enrollment. This is necessary
to ensure full program participation
once a student is enrolled.
Proposed paragraph (b) states that a
child development program may be
located at a Job Corps center with the
approval of the Secretary.
Section 686.560 What are the center’s
responsibilities in ensuring that
students’ religious rights are respected?
Proposed § 686.560 retains the same
requirements found in the WIA
regulations at 20 CFR 670.555.
Section 686.565 Is Job Corps
authorized to conduct pilot and
demonstration projects?
Proposed § 686.565(a) establishes that
the Secretary may undertake
experimental, research and
demonstration projects related to the Job
Corps program as long as the projects
are developed, approved, and
conducted in accordance with the
policies and procedures developed by
the Secretary, in accordance with sec.
156(a) of WIOA.
7. Subpart F—Student Support
Proposed subpart F discusses the
support services provided to Job Corps
enrollees, including transportation to
and from Job Corps centers, authorized
student leave, allowances and
performance bonuses, and student
clothing. In addition to being eligible to
receive transportation to and from Job
Corps centers, students are eligible for
other benefits, including basic living
allowances to cover personal expenses,
in accordance with guidance issued by
the Secretary. Students are also
provided with a modest clothing
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allowance to enable them to purchase
clothes that are appropriate for the
classroom and the workplace. These
proposed regulations again work to
strengthen the Job Corps program and
provide access to high quality training
by ensuring that Job Corps students are
placed in the best possible position to
prepare them for learning, and that they
are rewarded for their success in the
program.
Section 686.600 Are students provided
with government-paid transportation to
and from Job Corps centers?
Proposed § 686.600 states that Job
Corps provides students with
transportation to and from Job Corps
centers, according to policies and
procedures established by the Secretary.
This section retains the same
requirements as those in the WIA
regulations at 20 CFR 670.600.
Section 686.610 When are students
authorized to take leaves of absence
from their Job Corps centers?
Proposed § 686.610 provides that Job
Corps students are eligible for annual
leave, emergency leave, and other types
of leaves of absence from their assigned
centers. Procedures for requesting,
approving, and recording student leave
will be based on criteria and
requirements issued by the Secretary.
This section retains the same
requirements found in the WIA
regulations at 20 CFR 670.610.
Additionally, proposed § 686.600(a)
states that in accordance with sec.
147(d)(2) of WIOA, enrollees in CCCs
may take leave to provide assistance in
addressing national, State, and local
disasters.
Section 686.620 Are Job Corps
students eligible to receive cash
allowances and performance bonuses?
Proposed § 686.620(a) allows, based
on criteria and rates established by the
Secretary, Job Corps students to receive
cash living allowances, performance
bonuses, and allotments for care of
dependents. Also, graduates receive
post-separation transition allowances
according to proposed § 686.750. This
paragraph largely retains the same
requirements in the WIA regulations at
20 CFR 670.620(a), but revises the
description of the payments to align
with sec. 150(b) of WIOA.
Under proposed paragraph (b), in the
case of a student’s death, any amount
due is to be paid according to 5 U.S.C.
5582, governing issues including
designation of a beneficiary, order of
precedent, and related matters. This
paragraph retains the same requirements
as those found at 20 CFR 670.620(b).
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Section 686.630 Are student
allowances subject to Federal payroll
taxes?
As required by sec. 157(a)(2) of
WIOA, proposed § 686.630 requires that
Job Corps student allowances be subject
to Federal payroll tax withholding and
Social Security taxes. For purposes of
the Internal Revenue Code of 1986 and
title II of the SSA (42 U.S.C. 401 et seq.),
enrollees are deemed to be employees of
the United States.
Section 686.640 Are students provided
with clothing?
Proposed § 686.640 provides that,
according to rates, criteria, and
procedures issued by the Secretary,
center operators and other service
providers must provide Job Corps
students with a clothing allowance and/
or articles of clothing as needed to
facilitate their participation in Job Corps
and successful entry into the workforce.
This proposed section retains the same
requirements as those in the WIA
regulations at 20 CFR 670.640.
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8. Subpart G—Career Transition and
Graduate Services
This proposed subpart discusses
career transition and graduate services
for Job Corps enrollees. Job Corps
focuses on placing program graduates in
full time jobs, post-secondary education,
advanced training programs, including
apprenticeship programs, or the Armed
Forces. In an effort to further integrate
the Job Corps program with the greater
workforce system and align it with the
core programs, proposed § 686.820
specifically focuses on how Job Corps
will coordinate with other agencies,
where emphasis is placed on utilizing
the one-stop delivery system to the
maximum extent practicable. This
proposed subpart also outlines a
center’s responsibilities in preparing
students for career transition services;
the career transition services that are
provided for enrollees; who m6ay
provide career transition and graduate
services, in addition to one-stop centers;
and services provided for graduates and
former enrollees.
Section 686.700 What are a Job Corps
center’s responsibilities in preparing
students for career transition services?
Proposed § 686.700 implements sec.
149(a) of WIOA, providing that Job
Corps centers assess and counsel
enrollees to determine their
competencies and capabilities and
readiness for career transition services
prior to their scheduled graduation. The
purpose of counseling and assessment is
to determine students’ capabilities to
allow them to either be placed into
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employment leading to self-sufficiency
based on their training, or to assist the
student in participating in further
activities leading to the capabilities
necessary for placement.
Section 686.710 What career transition
services are provided for Job Corps
enrollees?
Proposed § 686.710 implements sec.
149(b) of WIOA, requiring that career
transition services focus on placing
program graduates in full time jobs that
are related to their career and technical
training and that lead to economic selfsufficiency; higher education; advanced
training programs, including
apprenticeship programs; or the Armed
Forces.
Section 686.720 Who provides career
transition services?
As required by sec. 149(b) of WIOA,
proposed § 686.720 states that the onestop delivery system must be used to the
maximum extent practicable in placing
graduates and former enrollees in jobs.
Multiple other resources can also
provide post-program services,
including, but not limited to, Job Corps
career transition service providers and
State VR agencies for individuals with
disabilities.
Section 686.730 What are the
responsibilities of career transition
service providers?
Proposed § 686.730 contains the
responsibilities of career transition
service providers. The section largely
retains the same requirements found in
the WIA regulations at 20 CFR 670.730.
Section 686.740 What services are
provided for program graduates?
As required by sec. 148(d) of WIOA,
proposed § 686.740 states that career
transition and support services must be
provided to program graduates for up to
12 months after graduation, according to
procedures issued by the Secretary.
Section 686.750 Are graduates
provided with transition allowances?
Proposed § 686.750 states that Job
Corps graduates receive post-separation
transition allowances. As required by
sec. 150(b) of WIOA, the transition
allowance must be incentive-based to
reflect a graduate’s completion of
academic, career, and technical
education or training, and attainment of
recognized post-secondary credentials.
Section 686.760 What services are
provided to former enrollees?
Proposed § 686.760(a) implements
sec. 150(c) of WIOA, allowing for the
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provision of 3 months of ESs to former
enrollees.
Proposed paragraph (b) states that Job
Corps centers may provide other
assessment, counseling, or career
transition services to help former
enrollees find and retain employment, if
determined appropriate, according to
procedures issued by the Secretary.
9. Subpart H—Community Connections
This proposed subpart highlights
WIOA’s focus on community
relationships and further integration
with the workforce system. In both the
new contracting provisions in proposed
subpart C and in this subpart, there is
more emphasis on connections with
one-stops, Local Boards, and State and
local plans. While WIA’s requirement
for a Business and Community Liaison
has been eliminated, the responsibility
for establishing beneficial business and
community relationships and networks
now lies with the director of each Job
Corps center. Moreover, WIOA contains
a new requirement that in a single-State
local area, a representative of the State
Board must be included on the
workforce council. Proposed § 686.810
also states, consistent with sec. 154(b)(2)
of WIOA, that the workforce council
may include employers from outside the
local area that are likely to hire center
graduates. The new requirements for the
workforce council seek to provide
greater access to high quality training
for Job Corps students, in part by
ensuring that Job Corps is providing
training in in-demand industry sectors
and occupations.
Section 686.800 How do Job Corps
centers and service providers become
involved in their local communities?
While WIA’s requirement for a
Business and Community Liaison
designated by the director of each center
has been eliminated, the director of each
Job Corps center must still ensure that
mutually beneficial business and
community relationships and networks
are established and developed. As
required by sec. 153 of WIOA, proposed
§ 686.800(a) states that each Job Corps
center director must establish
relationships with local and distant
employers; applicable one-stop centers
and Local Boards; entities carrying out
relevant apprenticeship programs and
youth programs; labor-management
organizations and local labor
organizations; employers and
contractors that support national
training programs and initiatives; and
CBOs, non-profit organizations, and
intermediaries providing workforce
development and support services.
Through these relationships, Job Corps
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hopes to improve the quality of the
training programs that it offers and
create meaningful associations with
other entities with which it interacts
and shares similar goals.
Under proposed paragraph (b), each
Job Corps center must also establish and
develop relationships with members of
the community in which it is located.
This paragraph further proposes that
members of the community be informed
of projects of the center and changes in
the rules, procedures, or activities of the
center that may affect the community.
Through these efforts, Job Corps aims to
garner the support and endorsement of
the local community.
Section 686.810 What is the makeup of
a workforce council and what are its
responsibilities?
Section 154 of WIOA requires each
center to establish a workforce council
according to procedures established by
the Secretary. Proposed § 686.810
implements this provision. It specifies
that the council must include: nongovernmental and private sector
employers; representatives of labor
organizations and employees; Job Corps
enrollees and graduates; and, in the case
of a single State local area, a
representative of the State Board.
Proposed paragraph (b) describes the
composition of the workforce council,
consistent with the requirements of sec.
154(b) of WIOA.
Proposed paragraph (c) states that the
workforce council may also include, or
otherwise provide for consultation with,
employers from outside the local area
who are likely to hire a significant
number of enrollees from the Job Corps
center.
Proposed paragraph (d)(1) implements
sec. 154(c)(1) of WIOA by identifying
that the first responsibility of the
workforce council is to work with all
applicable Local Boards and review
labor market information to determine
and provide recommendations to the
Secretary regarding the center’s career
and technical training offerings,
including identifying the emerging
occupations suitable for training. In
doing so, Job Corps hopes to remain
current in its CTT offerings, adjusting
and supplementing its training offerings
based on the needs of industry in the
surrounding communities.
Proposed § 686.810(d)(2) and (3) state
the remaining duties of the workforce
council, in accordance with secs.
154(c)(2)–(3) of WIOA.
Section 686.820 How will Job Corps
coordinate with other agencies?
Proposed § 686.820 describes how Job
Corps coordinates with other agencies.
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This section retains the same
requirements found in the WIA
regulations at 20 CFR 670.760 and 20
CFR 670.800(g). Paragraph (b) of this
section describes the linkages required
between Job Corps and the one-stop
service system and paragraph (c)
indicates that Job Corps is identified as
a required one-stop partner. The
Department notes that in addition to
these linkages, similar to the
requirement in WIA, proposed § 678.400
identifies Job Corps as a required onestop partner, as required by sec.
121(b)(1)(B)(i) of WIOA. Additionally,
similar to the WIA regulations at 20 CFR
670.800(g), proposed § 678.415 specifies
that the Job Corps center is the Job
Corps ‘‘entity’’ that is required to serve
as the one-stop partner in any local area
where a center exists. Job Corps centers
are encouraged to review the
requirements of one-stop partners
described in subpart B of part 678 of
these proposed regulations.
10. Subpart I—Administrative and
Management Provisions
The proposed subpart provides
requirements relating to tort claims,
Federal Employees Compensation Act
(FECA) benefits for students, safety and
health, and law enforcement
jurisdiction on Job Corps center
property. It also addresses whether Job
Corp operators and service providers are
authorized to pay State or local taxes on
gross receipts, and details the financial
management responsibilities of center
operators and other service providers.
The management of student records, as
well as procedures applicable to the
disclosure of information about Job
Corps students and program activities
are outlined. Finally, procedures
available to resolve complaints and
disputes, and how Job Corps ensures
that complaints or disputes are resolved
in a timely fashion, are addressed. The
entirety of this proposed subpart
addressing administrative and
management principles that apply to the
operation of the Job Corps program
serves to promote its accountability and
transparency.
Section 686.900 Are damages caused
by the acts or omissions of students
eligible for payment under the Federal
Tort Claims Act?
In accordance with sec. 157(a)(4) of
WIOA, proposed § 686.900 states that
students are considered Federal
employees for purposes of the FTCA (28
U.S.C. 2671 et seq.) and that claims for
such damage must be filed pursuant to
the procedures found in 29 CFR part 15,
subpart D. This proposed section retains
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the same requirements as those found in
the WIA regulations at 20 CFR 670.900.
Section 686.905 Are loss and damages
that occur to persons or personal
property of students at Job Corps centers
eligible for reimbursement?
Proposed § 686.905 states that the Job
Corps program may pay students for
valid claims under the procedures
found in 29 CFR part 15, subpart D. This
proposed section retains the same
requirements found at 20 CFR 670.905.
Section 686.910 If a student is injured
in the performance of duty as a Job
Corps student, what benefits may the
student receive?
Proposed § 686.910 implements sec.
157(a)(3) of WIOA. Paragraph (a) states
that Job Corps students are considered
Federal employees for purposes of the
FECA, as specified in sec. 157(a)(3) of
WIOA (29 U.S.C. 2897). Proposed
paragraphs (b) through (d) outline the
requirements for Job Corps students’
eligibility for FECA benefits and the
procedures by which the benefits are
paid. These paragraphs contain the
same requirements as those in § 670.910
of the WIA regulations.
Section 686.915 When is a Job Corps
student considered to be in the
performance of duty?
Proposed § 686.915 outlines when a
Job Corps student is considered to be in
the performance of duty. This proposed
section retains the same requirements as
those found at 20 CFR 670.915.
Section 686.920 How are students
protected from unsafe or unhealthy
situations?
Proposed § 686.920(a) states that the
Secretary will establish procedures to
ensure that students are not required or
permitted to work, be trained, reside in,
or receive services in buildings or
surroundings or under conditions that
are unsanitary or hazardous. This
section further states, consistent with
sec. 159(g)(2) of WIOA, that whenever
students are employed or in training for
jobs, they must be assigned only to jobs
or training which observe applicable
Federal, State, and local health and
safety standards. This proposed
paragraph retains the same requirements
found at 20 CFR 670.935.
Proposed paragraph (b) states that the
Secretary will develop procedures to
ensure compliance with applicable DOL
Occupational Safety and Health
Administration (OSHA) regulations and
Wage and Hour Division (WHD)
regulations.
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This proposed section retains the
same requirements as those found at 20
CFR 670.965.
Section 686.925 What are the
requirements for criminal law
enforcement jurisdiction on center
property?
Proposed § 686.925 provides
information about criminal law
enforcement jurisdiction on Job Corps
center property. This proposed section
retains the same requirements found in
the WIA regulations at 20 CFR 670.940.
Section 686.930 Are Job Corps
operators and service providers
authorized to pay State or local taxes on
gross receipts?
Consistent with sec. 158(d) of WIOA,
proposed § 686.930 explains some of the
tax liabilities that apply to Job Corps
center operators.
This proposed section retains the
same requirements as those found at 20
CFR 670.945.
Section 686.935 What are the financial
management responsibilities of Job
Corps center operators and other service
providers?
As required by WIOA sec. 159(a),
proposed § 686.935 states the financial
management responsibilities that apply
to Job Corps center operators and other
service providers.
This proposed section retains the
same requirements as those found at 20
CFR 670.950.
Section 686.940 Are center operators
and service providers subject to Federal
audits?
As required by WIOA sec. 159(b),
proposed § 686.940 explains how Job
Corps center operators and other service
providers are subject to Federal audits.
This proposed section retains the
same requirements found in the WIA
regulations at 20 CFR 670.955.
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Section 686.945 What are the
procedures for management of student
records?
Proposed § 686.945 states that the
Secretary will issue guidelines for a
system for maintaining records for each
student during enrollment and for
disposition of records after separation.
This proposed section retains the same
requirements as those found at 20 CFR
670.960.
Section 686.950 What procedures
apply to disclosure of information about
Job Corps students and program
activities?
Proposed § 686.950 discusses the
procedures that apply to disclosure of
information about Job Corps students
and program activities.
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Section 686.955 What are the reporting
requirements for center operators and
operational support service providers?
Proposed § 686.955 states that the
Secretary will establish procedures to
ensure the timely and complete
reporting of necessary financial and
program information to maintain
accountability. Under this section,
center operators and operational
support service providers are
responsible for the accuracy and
integrity of all reports and data they
provide. This proposed section retains
the same requirements as those found at
20 CFR 670.970.
Section 686.960 What procedures are
available to resolve complaints and
disputes?
In support of the Department’s
commitment to ensuring that students
are entitled to a fair process, proposed
§ 686.960 outlines the procedures that
are available to resolve student
complaints and disputes. This section
retains the same requirements found in
the WIA regulations at 20 CFR 670.991.
Section 686.965 How does Job Corps
ensure that complaints or disputes are
resolved in a timely fashion?
Proposed § 686.965 outlines the
procedures that are available to ensure
timely resolution of a complaint or
dispute. This section retains the same
requirements as those found at 20 CFR
670.991.
Section 686.970 How does Job Corps
ensure that centers or other service
providers comply with the Act and the
Workforce Innovation and Opportunity
Act regulations?
Proposed § 686.970 explains the
procedures Job Corps will use to ensure
Job Corps center operators and other
service providers comply with WIOA
and this part. This proposed section
retains the same requirements found in
the WIA regulations at 20 CFR 670.992.
Section 686.975 How does Job Corps
ensure that contract disputes will be
resolved?
Proposed § 686.975 states that a
dispute between the Department and a
Job Corps contractor will be handled
according to the Contract Disputes Act
and applicable regulations. This
proposed section retains the same
requirements as those found at 20 CFR
670.993.
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Section 686.980 How does Job Corps
resolve disputes between the U.S.
Department of Labor and the U.S.
Department of Agriculture regarding the
operation of Civilian Conservation
Centers?
Proposed § 686.980 states that
disputes between the Department and
the U.S. Department of Agriculture
regarding operating a center will be
handled according to the interagency
agreement between the two agencies.
This proposed section retains the same
requirements as those found at 20 CFR
670.994.
Section 686.985 What Department of
Labor equal opportunity and
nondiscrimination regulations apply to
Job Corps?
Proposed § 686.985 states that
nondiscrimination requirements,
procedures, complaint processing, and
compliance reviews would be governed
by provisions of the Department’s
regulations, as applicable. This
proposed section retains the same
requirements found in the WIA
regulations at 20 CFR 670.995.
11. Subpart J—Performance
Proposed subpart J incorporates
WIOA-specific requirements related to
performance assessment and
accountability, as well as requirements
for performance improvement plans for
Job Corps center operators who fail to
meet expected levels of performance.
The Job Corps program is now required
to report on the performance indicators
common to all WIOA programs that
provide key employment information on
how many students entered and
retained employment, their median
wages, whether they attained
credentials, their measurable skills
gains, and effectiveness of services to
employers. The entirety of this proposed
subpart serves to promote the
accountability, performance, and
transparency of the Job Corps program.
Section 686.1000 How is the
performance of the Job Corps program
assessed?
Proposed § 686.1000 describes the
performance management system the
Secretary will establish to meet the
requirements for management
information in sec. 159 of WIOA.
Proposed paragraph (a) indicates that
the performance of the Job Corps
program as a whole, and the
performance of individual centers,
outreach and admission providers, and
career transition service providers, will
be assessed in accordance with required
procedures and standards issued by the
Secretary, through a national
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performance management system
described in proposed paragraph (b) that
includes the Outcome Measurement
System (OMS). The Department
proposes to continue its use of a
national performance management
system that includes the OMS because
such a system is needed to track and
report all of the management
information required in sec. 159 of
WIOA. The management information
requirements include establishing
expected levels of performance and
collecting and reporting data on each
center’s performance relating to the
primary indicators of performance for
eligible youth, the performance
indicators for outreach and admission
providers, and the performance
indicators for career transition service
providers required under WIOA sec.
159(c); collecting and reporting data on
each center’s performance relating to the
additional information required to be
submitted in the annual report to
Congress under sec. 159(d) of WIOA;
collecting and reporting information
regarding the state of Job Corps
buildings and facilities under sec.
159(h) of WIOA; and collecting and
reporting information regarding national
and community service activities of
enrollees under sec. 159(i) of WIOA.
Consistent with current practice,
proposed paragraph (b) states that the
performance management system will
include measures that reflect not only
the primary indicators of performance
described in proposed § 686.1010, but
also the information needed to complete
the Annual Report described in
proposed § 686.1040, as well as any
other information the Secretary
determines is necessary to manage and
evaluate the effectiveness of the Job
Corps program.
Job Corps’ performance management
system, which includes the OMS, is a
well-established measurement system
within the Job Corps community that
has been used to track performance of
centers and service providers for many
years. It will be updated to reflect the
new requirements of WIOA, including
the new primary indicators of
performance. The performance
management system is designed to
provide the Secretary with the
information necessary to manage and
evaluate the effectiveness of the Job
Corps program. It currently includes
data on the WIA common measures,
each center’s success in filling student
slots or on-board strength (OBS),
information on the results of Regional
Office Center Assessments, and the
OMS.
The OMS currently includes the
following 15 measures: HSD or General
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Educational Development (GED)
Attainment Rate, CTT Completion Rate,
Combination HSD or GED, and CTT
Attainment Rate, Average Literacy Gain,
Average Numeracy Gain, CTT IndustryRecognized Credential Attainment Rate,
CTT Completer Job-Training Match/
Post-secondary Credit Placement Rate,
Former Enrollee Initial Placement Rate,
Graduate Initial Placement Rate,
Graduate Average Hourly Wage at
Placement, Graduate Full-Time Job
Placement Rate, Graduate 6-Month
Follow-up Placement Rate, Graduate 6Month Average Weekly Earnings,
Graduate 12-Month Follow-up
Placement Rate, and Graduate 12-Month
Follow-up Weekly Earnings. These
measures are based on the current
performance requirements under WIA,
and in some cases break down an
overarching measure to provide a more
detailed look at elements that make up
the overarching measures. For example,
one of the WIA common measures is the
percent of students who achieve literacy
or numeracy gains. In the OMS, literacy
gains and numeracy gains are broken
into two separate measures that provide
program managers with an additional
level of detail. A center may be
achieving a high level of literacy gains
but lagging in numeracy gains. In the
combined measure that distinction
would be hidden, but with the broken
out measure, program managers can
more specifically identify where to
target interventions to support
achievement of the overall common
measure. Similarly, the OMS will be
updated to reflect the primary
indicators, but may also include
breakouts of data that will help program
managers target interventions in order to
achieve the primary indicators.
Four of the new primary indicators of
performance under WIOA are long-term
measures, meaning that the point of
measurement is as much as a year after
a student exits the Job Corps program.
These measures are valuable in
assessing the performance of the
program, but additional shorter-term
measures are needed to supplement the
primary indicators and provide program
managers with information on a quicker
cycle that can be used to make
adjustments in the program on a faster
timeframe. This includes measures such
as the CTT completion rate, which
provides useful information about the
quality of the training programs at a
center without waiting for the student
outcome data to become fully available.
When updating the OMS, the
Department will begin to incorporate
the primary indicators and other
measures that will drive the system
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towards attainment of the WIOA
primary indicators, while still
maintaining other shorter-term
measures that will provide additional
information that the Secretary believes
is necessary to manage and evaluate the
effectiveness of the Job Corps program.
The Department welcomes comments
on this approach, and specifically on
which short-term measures should be
maintained in the new OMS system.
Over the years as program reporting
requirements have changed from the
Government Performance and Results
Act (GPRA), the Program Assessment
and Rating Tool (PART), and Common
Measures, the OMS has proven to be
flexible and through its mix of
measures, goals, and weights, and
successful in driving the system towards
meeting changing priorities. For
example, when additional emphasis was
placed on longer term attachment to the
workforce, Job Corps added 12-month
placement and 12-month earnings to the
existing line-up of measures included
on the OMS as a clear indication to
program operators of the new priority.
Similarly, beginning in PY 2016, the
OMS will be updated to reflect the new
primary indicators of performance
under WIOA.
Proposed paragraph (b) also indicates
that the Secretary will issue annual
guidance describing the performance
management system and OMS. This
guidance will describe any changes or
updates to the overall performance
management system or the OMS and
also communicate the expected levels of
performance for each indicator for each
center, outreach and admission
provider, and career transition service
provider described in § 686.1030 to the
system.
Proposed § 686.1000(c), implementing
sec. 159(f)(1) of WIOA, indicates that
annual performance assessments based
on the measures referenced in proposed
paragraph (b) will be done for each
center operator and other service
providers, including outreach and
admission providers and career
transition providers. These annual
assessments will include a review of the
data in the OMS, a calculation of the
annual performance ranking as
described in proposed § 686.1070, and
an analysis of the operator or service
provider’s success at meeting the
expected levels of performance,
including consideration of any factors
influencing the performance outcomes
such as disruption in the operations of
the center, economic conditions, or
other factors.
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Section 686.1010 What are the primary
indicators of performance for Job Corps
centers and the Job Corps program?
Proposed § 686.1010 implements
WIOA sec. 159(c)(1), which requires the
use of the primary indicators of
performance for eligible youth as
described in sec. 116(b)(2)(A)(ii) of
WIOA for the Job Corps program and
each center. Proposed paragraphs (a)
through (f) are the primary indicators of
performance for eligible youth as
described in sec. 116(b)(2)(A)(ii) of
WIOA. These measures of performance
are the same as the primary indicators
discussed in proposed § 677.155.
Though the indicators of performance
are identified in various places
throughout the WIOA proposed
regulations, the indicators are the same
and do not vary across the regulations.
Section 686.1020 What are the
indicators of performance for Job Corps
outreach and admissions providers?
Proposed § 686.1020 implements sec.
159(c)(2) of WIOA, which requires that
the Secretary establish performance
indicators and expected levels of
performance on those indicators for
recruitment service providers serving
the Job Corps program. The performance
management system and OMS will be
updated to reflect the new performance
measures for Job Corps outreach and
admissions providers. Proposed
paragraphs (a) through (d) are the
indicators of performance as provided
in sec. 159(c)(2) of WIOA.
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Section 686.1030 What are the
indicators of performance for Job Corps
career transition service providers?
Proposed § 686.1030 implements sec.
159(c)(3) of WIOA, which requires that
the Secretary establish performance
indicators and expected levels of
performance on those indicators for
career transition service providers
serving the Job Corps program. The
performance management system and
OMS will be updated to reflect the new
performance measures for Job Corps
Career Transition Service providers.
Proposed paragraphs (a) through (g) are
the indicators of performance as
provided in sec. 159(c)(3) of WIOA.
Section 686.1040 What information
will be collected for use in the Annual
Report?
Proposed § 686.1040 implements sec.
159(c)(4) of WIOA, which requires the
Secretary to collect information and
submit an Annual Report on the
performance of each Job Corps center
and the Job Corps program. The
Department is including this proposed
section so that the Job Corps community
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is made aware of the information that
will be collected. Proposed paragraphs
(a) through (p) specify the information
required to be included by secs.
159(c)(4)(A)–(B) and 159(d)(1)(A)–(N) of
WIOA. Proposed paragraph (q) reflects
the information required to be included
by sec. 159(h) of WIOA, and proposed
paragraph (r) reflects the information
required by sec. 159(i) of WIOA.
Proposed paragraph (s) states that the
Secretary may collect and include
additional information in the Annual
Report that the Secretary determines is
necessary. Any such information would
be collected as part of the performance
management system and identified in
the annual guidance described in
§ 686.1000.
Section 686.1050 How are the
expected levels of performance for Job
Corps centers, outreach and admission
providers and career transition service
providers established?
Proposed § 686.1050(a) implements
secs. 159(c)(1)–(3) of WIOA, which
require that the Secretary establish
expected levels of performance for Job
Corps centers, outreach and admission
providers, and career transition service
providers, and the Job Corps program
relating to each of the primary
indicators of performance described in
§§ 686.1010, 686.1020 and 686.1030. In
order to develop expected levels of
performance for the primary indicators,
the Department will first examine past
performance specific to the new
measures. Since several of the
employment-related indicators are
intended to utilize State wage records,
this will involve a process of developing
quarterly earnings specifications as well
as developing an infrastructure to align
WRIS data with Job Corps survey data
at the center level. Expected levels of
performance can more readily be
developed for the credential attainment
and skill gains indicators using past
performance aligned to the timeframes
required by WIOA. Job Corps will also
continue to use a regression model to
statistically adjust for local economic
conditions and participant
characteristics at the center level similar
to regression models used for other
programs under WIOA. The Department
anticipates that after implementation of
the new primary indicators, there will
be a period of at least 1 PY where
baseline data are collected on each of
the primary indicators and there is no
expected level of performance in place.
Once baseline data has been collected,
the Department will begin to establish
expected levels of performance.
Proposed paragraph (b) states that as
provided in § 686.1000, the Secretary
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will issue annual guidance describing
the national performance management
system. This guidance will also
communicate the expected levels of
performance for each center and each
indicator of performance for each
outreach and admissions provider and
each career transition service provider.
This guidance will also describe how
the expected levels of performance were
calculated.
Section 686.1070 How are center
rankings established?
Proposed § 686.1070(a) states that the
Secretary will calculate the annual
rankings of center performance based on
the performance management system
described in proposed § 686.1000. As
described above in the explanation of
proposed § 686.1000, Job Corps’ OMS is
a well-established measurement system
within the Job Corps community that
has been used to track performance of
centers and service providers for many
years, and it will be updated to reflect
the new requirements of WIOA,
including the new primary indicators of
performance. It is designed to drive the
system to meet programmatic goals,
which under WIOA will be established
through the primary indicators of
performance. As described above, the
OMS will be updated to reflect the
primary indicators of performance and
may also include other measures that
will drive the system towards
attainment of the primary indicators or
that provide more detailed information
about elements that make up the
primary indictors that the Secretary
believes are necessary to manage and
evaluate the effectiveness of the Job
Corps program.
Proposed § 686.1070(b) states that the
Secretary will issue annual guidance
that communicates the methodology for
calculating the performance rankings for
the year. This guidance will include any
changes in the weighting of individual
measures in the calculation. The
Department expects to weigh measures
reflecting the attainment of the primary
indicators most heavily. However, the
Department anticipates that there could
be changes in weighting from year to
year to address areas of concentration in
the program. For example, if the
Department’s analysis of past years’ data
regarding the system’s results on the
primary indicator related to measurable
skills gains indicates that students are
achieving high levels of literacy gains
but lagging on numeracy gains, the
Department may increase the weighting
of the OMS measure on numeracy gains
to signal to operators that they need to
put more emphasis on improving
numeracy. The expected result would
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be that the increased focus on numeracy
would lead to improved numeracy gains
and a commensurate increase in the
primary indicator related to measurable
skills gains. The center rankings will
reflect these efforts to push the system
to continuous improvement of
outcomes.
Section 686.1070 How and when will
the Secretary use Performance
Improvement Plans?
Proposed § 686.1070 implements sec.
159(f)(2) of WIOA, which sets out
requirements for the circumstances
under which the Secretary will use
Performance Improvement Plans.
Proposed paragraph (a) provides that
the Secretary will establish standards
and procedures for developing and
implementing performance
improvement plans. Paragraph (a)(1)
implements the requirement in sec.
159(f)(2) of WIOA, that when a center
fails to meet expected levels of
performance, the Secretary must
develop and implement a performance
improvement plan designed to help the
center improve its performance
outcomes. Paragraph (a)(1)(i) establishes
standards for when the Secretary will
consider a center to have failed to meet
the expected levels of performance on
the primary indicators. The proposed
paragraph states that a center will have
failed to meet the expected levels of
performance if the center is ranked
among the lowest 10 percent of Job
Corps centers and the center fails to
achieve an average of 90 percent of the
expected level of performance for all of
the primary indicators. This is
consistent with the methodology used to
determine whether States have failed to
meet the expected levels of performance
on other programs under WIOA.
Proposed paragraph (a)(1)(ii) establishes
standards for when the Secretary will
consider a center to have failed to meet
the expected levels of performance on
the primary indicators for PYs that
occur prior to the implementation of the
expected levels of performance on the
primary indicators. The paragraph states
that a center will have failed to meet the
expected levels of performance if it is
ranked among the lowest 10 percent of
Job Corps centers and the center’s
composite OMS score for the PY is 88
percent or less of the year’s OMS
national average. This proposal is
consistent with the Job Corps
Performance Improvement Plan system
planned for implementation in early
2015.
Proposed paragraph (a)(2) implements
sec. 159(f)(3) of WIOA, which states that
the Secretary may also develop and
implement additional performance
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improvement plans that will require
improvements for a Job Corps center
that fails to meet criteria established by
the Secretary other than the expected
levels of performance. The Department
expects to outline requirements for any
such plans through subsequent
guidance.
Proposed paragraph (b) implements
the requirement in sec. 159(f)(2) of
WIOA that the performance
improvement plan require that action
under the plan must be taken within 1
year of its implementation to address
the issues that led to the center’s failure
to meet its expected levels of
performance. The paragraph states that
the plan will identify criteria that must
be met for the center to complete the
performance improvement plan. In
addition, paragraph (b)(1) provides that
the center operator must implement the
actions outlined in the performance
improvement plan. Proposed paragraph
(b)(2) provides that if the center fails to
take the steps outlined in the
performance improvement plan or fails
to meet the criteria established to
complete the performance improvement
plan after 1 year, the center will be
considered to have failed to improve
performance under a performance
improvement plan detailed in paragraph
(a). In that case, the center will remain
on a performance improvement plan
and the Secretary will take action as
described in proposed paragraph (c).
Paragraph (b)(2)(ii) implements sec.
159(f)(4) of WIOA, which provides that
if a CCC fails to meet expected levels of
performance relating to the primary
indicators of performance specified in
proposed § 686.1010, or fails to improve
performance under a performance
improvement plan detailed in paragraph
(a) after 3 PYs, the Secretary, in
consultation with the Secretary of
Agriculture, must select an entity to
operate the CCC on a competitive basis.
Such competition will be held in
accordance with the requirements at
proposed § 686.310.
Proposed paragraph (c) implements
secs. 159(f)(2)(A) through 159(f)(2)(G) of
WIOA, which permit the Secretary to
take specific actions to improve the
performance of a center, as necessary.
These requirements are taken directly
from the statute and this proposed
paragraph retains the same requirements
as those in the WIA regulations at 20
CFR 670.985. The Department notes that
nothing in the statute or in these
proposed regulations requires that the
performance improvement actions be
taken in any particular order or on a
progressive basis. The Secretary will
take any of the measures listed in sec.
159(f)(2) of WIOA that will lead to
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improving performance of a center.
Among these measures, the Secretary
also reserves the right to close lowperforming centers, pursuant to WIOA
sec. 159(f)(2)(G).
K. Part 687—National Dislocated
Worker Grants
Proposed part 687 implements
provisions in sec. 170 of WIOA that
authorize the Secretary to award
discretionary funds to serve dislocated
workers and other eligible individuals
affected by major economic
dislocations, emergencies, or disasters.
The proposed regulations set forth the
key elements and requirements for the
statute’s NDWGs. Additional guidance
on NDWGs and the application
requirements for these grants will be
published separately.
The proposed regulations establish a
framework that will enable eligible
applicants to apply quickly for grants to
relieve the impact of layoffs,
emergencies, and disasters on
employment in the impacted area and to
meet the training and reemployment
needs of affected workers and to enable
them to obtain new jobs as quickly as
possible. The proposed regulations call
for early assessment of the needs and
interests of the affected workers,
through either rapid response activities,
or other means, as well as an indication
of the other resources available to meet
these needs, to aid in the creation of a
customer-centered service proposal. The
early collection of information about
affected workers will allow applicants
to have an understanding of the needs
and interests of the impacted workers to
enable a prompt application for the
appropriate level of NDWG funds. Early
collection of information also will
facilitate the receipt of NDWG funds
when the Secretary determines that
there are insufficient State and local
formula funds available. Early
intervention to assist workers being
dislocated is critical to enable them to
access work-based learning
opportunities and other types of training
that lead to industry-recognized
credentials, as appropriate, to help them
find new employment in in-demand
industries and occupations as soon as
possible after their dislocation occurs.
Section 687.100 What are the types
and purposes of national disclosed
worker grants the Workforce Innovation
and Opportunity Act?
Proposed § 687.100 describes the
purpose of NDWGs, expanding upon the
description provided in the WIA
regulations at 20 CFR 671.100. Regular
NDWGs provide career services for
dislocated workers and other eligible
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populations where demand is unable to
be met with formula funds or other
sources. Disaster NDWGs, which were
originally authorized under WIA to
conduct clean-up and humanitarian
assistance, are still authorized under
WIOA; however, WIOA expands their
availability by adding new qualifying
events for Disaster NDWGs, such as
serving workers who have relocated
from an area in which a disaster has
been declared, as discussed in
§§ 687.110(b) and 687.180(b).
Section 687.110 What are major
economic dislocations or other events
which may qualify for a national
dislocated worker grant?
Proposed § 687.110 describes the
events that qualify for NDWG funding.
Proposed § 687.110(a)(1) through (3)
include substantially similar provisions
to those that were contained in the WIA
regulations; however, the terms ‘‘single
site of employment’’ and ‘‘in a single
local community,’’ which had been used
to qualify the types of eligible layoff
events, are not included in the proposed
section. Experience under WIA has
shown that a company’s total number of
layoffs affects the local and regional
economy in the same way without
regard to whether the layoffs occur at a
single facility or at multiple locations.
Proposed § 687.110(a)(4) describes a
qualifying event added by sec.
170(b)(1)(D)(i) of WIOA, permitting the
award of a NDWG when a higher than
average demand for employment and
training activities for dislocated
members of the Armed Forces,
dislocated spouses of members of the
Armed Forces on active duty (as defined
in 10 U.S.C. 101(d)(1)), or members of
the Armed Forces described in proposed
§ 687.170(a)(1)(iii), exceeds State and
local resources. Section 170(b)(1)(D)(i)
of WIOA specifically limits the military
spouses included in this analysis to
‘‘spouses described in sec. 3(15)(E) [of
WIOA].’’ Under sec. 3(15)(E) of WIOA,
these are spouses of members of the
Armed Forces on active duty who are
dislocated specifically because they
have experienced a loss of employment
as a direct result of relocation to
accommodate a permanent change in
duty station of the member of the
military, or are unemployed or
underemployed and experiencing
difficulty in obtaining or upgrading
employment. Implementing this exactly
as stated in the statute would require
applicants for these NDWGs to
determine whether a specific subset of
dislocated military spouses is driving
the higher than average demand for
services in an area. This would cause an
unnecessary burden on the NDWG
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applicants, and instead proposed
§ 687.110(a)(4) would only require
applicants for these NDWGs to assess
whether military spouses who are
dislocated under any of the factors in
sec. 3(15) of WIOA are contributing to
the higher than average demand for
services. The proposed provision also
specifies that these spouses must be
spouses of members of the Armed
Forces on active duty, which
implements the intent of this provision
of WIOA while avoiding the
unnecessary administrative hardship.
The Department intends to provide
additional guidance about how higher
than average demand will be defined for
purposes of this section. The
Department is exploring definitions that
may include veterans’ unemployment in
excess of the State’s unemployment rate,
Unemployment Compensation for Exservice members (UCX) data, and other
similar administrative data sources. The
Department invites comments about the
usefulness of relying on these and other
data sources in determining how higher
than average demand should be defined.
Proposed § 687.110(a)(5) maintains the
prerogative of the Secretary of Labor to
provide NDWG funding for other events.
Proposed § 687.110(b) describes
qualifying events for Disaster NDWGs.
Proposed § 687.110(b)(1) provides,
similar to the WIA regulation at 20 CFR
671.110(e), that disasters declared
eligible for public assistance under the
Stafford Act are qualifying events for
Disaster NDWGs. The proposed
paragraph also makes clear that outlying
areas and tribal areas that receive a
public assistance declaration also are
eligible to apply for a Disaster NDWG.
This is consistent with the intent and
purpose of sec. 170 of WIOA, because
these entities are both eligible for
dislocated worker grants under WIOA
and are eligible for public assistance
under the Stafford Act. Therefore, it is
logical that they would be eligible for
Disaster NDWGs.
Proposed § 687.110(b)(2) and (3)
describe the new events that WIOA
establishes are qualifying events for
Disaster NDWGs. As stated in sec.
170(a)(1)(B) of WIOA, eligible events for
Disaster NDWGs now include an
emergency or disaster situation of
national significance that could result in
a potentially large loss of employment,
as recognized by the chief official of a
Federal agency that has authority or
jurisdiction over the Federal response
for the emergency or disaster situation.
Although such an event might not meet
the requirements to receive a public
assistance declaration from the FEMA, it
still may be an event where NDWG
funding may be needed. NDWGs may be
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provided in this instance for activities
that are determined to be appropriate by
the Secretary. Proposed paragraph (b)(3)
addresses situations where a substantial
number of workers from a State, tribal
area, or outlying area in which an
emergency or disaster has occurred
relocate to another State, tribal area, or
outlying area. This would also be a
qualifying event for a Disaster NDWG,
according to secs. 170(b)(1)(B)(ii) and
(d)(4) of WIOA. The addition of this
type of event was informed by the mass
evacuations that took place as a result
of Hurricane Katrina, which caused
massive flooding and damage along the
Gulf Coast in 2005, resulting in
evacuees settling in high concentrations
in some other communities.
Section 687.120 Who is eligible to
apply for national dislocated worker
grants?
Proposed § 687.120 identifies which
entities are eligible to apply for NDWGs.
Proposed § 687.120(a) and (b) retain
essentially the same requirements as in
§ 671.120 of the WIA regulations, but
these proposed regulations clearly
identify which entities may apply for
Regular NDWGs and which may apply
for Disaster NDWGs. Unlike
§ 671.120(b), proposed § 687.120 does
not include a statement concerning the
ability of private entities to apply for
NDWGs for interstate projects, because
sec. 170(c)(1)(B) of WIOA and proposed
§ 687.120(a)(5) provide for such
applications. The proposed language, in
contrast to its WIA counterpart, does not
distinguish between interstate and
intrastate projects, because from the
Department’s perspective the grantee/
grantor relationship is between the
Department and a single entity. In
proposed § 687.120(a), the Department
has specified that outlying areas, in
addition to States, may apply for
Regular NDWGs. In proposed
§ 687.120(b), the Department has
specified that outlying areas and Indian
tribal governments as defined by the
Robert T. Stafford Disaster Relief and
Emergency Assistance Act, in addition
to States, may apply for Disaster
NDWGs.
Section 687.130 When should
applications for national dislocated
worker grants be submitted to the
Department?
Proposed § 687.130 describes when
applications for NDWGs may be
submitted and retains many of the
requirements found in the WIA
regulations at 20 CFR 671.130. However,
there are some key differences in the
proposed regulations. Proposed
§ 687.130(a) identifies the conditions
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applicable to Regular NDWGs and
underscores the importance that
applications for Regular NDWGs must
be submitted as soon as possible after
the eligibility criteria are met and the
necessary information to apply is
available to the applicant. Timely
submissions that comply with the
requirements will help ensure that the
needed resources are provided
expediently.
Proposed § 687.130(b) identifies the
conditions applicable to Disaster
NDWGs and underscores the
importance that applications for
Disaster NDWGs must be submitted as
soon as possible. Proposed
§ 687.130(b)(1) through (3) identify the
events that trigger applications for
Disaster NDWGs, and also emphasize
the importance of submitting
applications as soon as possible after the
appropriate declarations or
determinations have been made.
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Section 687.140 What activities are
applicants expected to conduct before a
national dislocated worker grant
application is submitted?
Proposed § 687.140 describes the
activities to be conducted before an
application for a NDWG is submitted.
Proposed § 687.140(a) expands on the
requirements found in the WIA
regulations at 20 CFR 671.160. The
proposed language, based in part on the
Department’s experience under WIA,
requires applicants to identify the needs
of the affected workers, and their
interest in receiving services, either
through Rapid Response activities or
other means. Under WIA, the
Department learned that some
individuals who could have benefited
from receiving ESs under a National
Emergency Grant (NEG) ended up not
being interested in receiving them. For
example, some individuals chose to opt
out of receiving services because they
believed their previous employer was
going to call them back to work, while
others chose to forgo receiving
employment and training services in
order to find new employment on their
own. The Department has found that the
lack of information on needs and
interest of affected workers have
significantly impacted participant
enrollment rates in the past, and in
some cases, resulted in the return of
funds outside the timeframe allowed for
the funds to be obligated for other
grants. Further, the proposed language
expands the allowable data gathering
methods that may be used, so that
applicants are no longer limited to using
only data obtained via Rapid Response
interventions. This change allows for
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greater flexibility in obtaining this
critical data.
Proposed § 687.140(b)(1) makes it
clear that applicants for Disaster
NDWGs must conduct a preliminary
assessment of the clean-up and
humanitarian needs in the affected
areas. Proposed § 687.140(b)(2) requires
applicants to have a mechanism in place
to ascertain reasonably that there is a
sufficient population of eligible
individuals in the area and, if needed,
eligible individuals outside the area to
conduct the planned clean-up and
humanitarian work. Under WIA, there
were a few instances where after NEGs
were issued, a State was unable to
conduct the work it had planned
because it was unable to find eligible
individuals to do the work. The
Department recognizes that in the
immediate aftermath of a disaster it is
difficult to conduct a thorough
assessment of the number of individuals
that could be eligible to conduct the
planned work. While the Department’s
proposed approach allows flexibility, it
also ensures there is a process in place
so that reasonable estimates of potential
participant availability are made prior to
submitting the application, so that the
proper amount of funding may be
provided.
Section 687.150 What are the
requirements for submitting
applications for national dislocated
worker grants?
Proposed § 687.150 explains that the
Department will publish additional
guidance on the requirements for
submitting NDWG applications. A
similar approach was taken in the WIA
regulations. Unlike the WIA regulations,
however, the proposed section requires
that a project implementation plan,
which is currently required for all
NEGs, be submitted post NDWG award.
Under WIA, this requirement is
included only in guidance. The project
implementation plan includes more
detailed information about project
operations than is required for the
initial application. This information
allows the Department to provide
grantees with targeted technical
assistance, and to exercise appropriate
oversight and monitoring over the
NDWG award. Additional information
on what must be included in the project
implementation plan, and the process
for submitting it, will be included in
future guidance.
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Section 687.160 What is the timeframe
for the Department to issue decisions on
national dislocated worker grant
applications?
Proposed § 687.160 implements sec.
170(b)(2) of WIOA, which establishes a
45-day timeframe for issuing
determinations on NDWG applications.
The proposed paragraph makes it clear
that final decisions on NDWG
applications will be issued within 45
calendar days of receiving an
application that meets the requirements.
Applicants are encouraged to engage the
appropriate Regional Office so that
timely technical assistance can be
provided when developing NDWG
applications to help ensure that the
information provided in the application
is sufficient.
§ 687.170 Who is eligible to be served
under national dislocated worker grants?
Proposed § 687.170 provides
information on participant eligibility for
NDWGs, distinguishing between
individuals who may be served under
Regular NDWGs and those who may be
served under Disaster NDWGs. In the
WIA regulations at § 671.140,
participant eligibility and allowable
activities were included in the same
section; these two topics are being
addressed separately in proposed
§§ 687.170 and 687.180 for clarity.
Proposed § 687.170(a) lists the specific
populations that are eligible to be served
under Regular NDWGs. This paragraph
retains the provision from the WIA
regulations at 20 CFR 671.140(a) that
dislocated workers may be served.
However, as discussed below, the
definition of a dislocated worker was
expanded under WIOA, thereby
expanding the population that can be
served with NDWGs.
Section 3(15)(E)(i)–(ii) of WIOA
includes certain spouses of members of
the Armed Forces on active duty in the
definition of ‘‘dislocated worker.’’ These
spouses are considered dislocated
workers, and therefore eligible for
services under NDWGs, if they: (1) Have
experienced a loss of employment as a
direct result of relocation to
accommodate a permanent change in
duty station of the member of the
Armed Forces; or, (2) are unemployed or
underemployed and experiencing
difficulty obtaining or upgrading
employment.
WIOA also expanded upon the
definition of a ‘‘displaced homemaker,’’
recognized under both WIA and WIOA
as a type of dislocated worker. Under
sec. 3(16)(A)(ii) of WIOA, the definition
of a displaced homemaker now
explicitly includes a person who is a
dependent spouse of a member of the
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Armed Forces on active duty whose
family income is significantly reduced
because of a deployment, a call or order
to active duty, a permanent change of
station, or the service-connected death
or disability of the member, and who is
unemployed or underemployed and is
experiencing difficulty in obtaining or
upgrading employment. In addition to
the expanded dislocated worker
definition covering additional military
spouses, dislocated members of the
Armed Forces and other dislocated
military spouses continue to be
included in the definition of ‘‘dislocated
workers’’ and therefore continue to be
eligible for services under NDWGs, just
as they were under WIA NEGs. Finally,
sec. 170(c)(2)(A)(iv) of WIOA retains the
eligibility provision found at sec.
173(c)(2)(iv) of WIA that members of the
Armed Forces who were on active duty
or full-time National Guard duty who
meet other specific requirements are an
eligible population. These members of
the Armed Forces and the requirements
are specifically described in proposed
§ 687.170(a)(1)(iii).
As discussed earlier in this preamble,
WIOA states that dislocated members of
the Armed Forces, members of the
Armed Forces described in proposed
§ 687.170(a)(1)(iii), and dislocated
spouses of members of the Armed
Forces on active duty may be served
with NDWGs when there is a higher
than average demand for employment
and training activities from this
population that exceeds State and local
resources to provide them.
Proposed § 687.170(b)(1) retains many
of the participant eligibility
requirements for Disaster NEGs found in
the WIA regulations at § 671.140(d), and
also includes a new population
authorized under sec. 170(d)(2)(D) of
WIOA—individuals who were selfemployed, but become unemployed or
significantly underemployed as a result
of the emergency or disaster. Proposed
§ 687.170(b)(2) implements sec.
170(b)(1)(B)(ii) of WIOA, discussed in
proposed § 687.110(b)(3), which
authorizes NDWG assistance for
individuals who have relocated to
another State, tribal area, or outlying
area as a result of the disaster. This
paragraph lists the relocated individuals
who are eligible for assistance under
these type of NDWGs, and also notes
that in rare instances, humanitarianrelated temporary employment will be
available in the relocation areas. This is
further discussed in proposed
§ 687.180(b)(2) and the corresponding
preamble language. In those cases, the
relocated individuals listed in proposed
§ 687.170(b)(2) would be eligible for that
work.
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Section 687.180 What are the
allowable activities under national
dislocated worker grants?
Proposed § 687.180 provides
information on allowable activities;
first, those allowable under Regular
NDWGs; second, those allowable under
Disaster NDWGs. Proposed § 687.180(a)
lists the allowable activities for Regular
NDWGs. These activities are essentially
the same as those reflected in the WIA
regulations at 20 CFR 671.140; however,
consistent with WIOA, references to
core, intensive, and training services
have been changed to refer to career
services. Additionally, the reference to
trade-impacted workers under the
NAFTA–TAA program contained in 20
CFR 671.140(c)(2) is not included in the
proposed paragraph, since the NAFTA–
TAA program no longer exists.
Proposed § 687.180(b) lists the
allowable activities for Disaster NDWGs.
Proposed § 687.180(b)(1) uses the same
language as in the WIA regulations at 20
CFR 671.140(e), which authorizes
temporary employment for
humanitarian assistance and clean-up
and repair of facilities and lands within
the disaster area for which a Disaster
NDWG is issued. This proposed
paragraph also implements sec.
170(d)(1)(A) of WIOA, which requires
coordination with FEMA and permits
these activities to be performed in
offshore areas related to the emergency
or disaster. The addition of the language
on offshore areas was informed by the
Deepwater Horizon Oil Spill; the
proposed paragraph allows clean-up
and humanitarian assistance activities
to take place beyond the land surface of
the disaster area.
Proposed § 687.180(b)(1) implements
sec. 170(d)(3) of WIOA; this paragraph
allows employment of up to 12 months
in the temporary jobs created under
Disaster NDWGs, with the potential for
an additional 12 months with
Secretarial approval. Under sec.
173(d)(3) of WIA, only 6 months of
disaster relief employment was allowed.
Proposed § 687.180(b)(1) identifies
employment and training activities as
allowable under Disaster NDWGs. While
the WIA regulations contained a
comparable provision, individuals were
only allowed to participate in
employment and training services after
they had completed the disaster relief
employment component of the project.
The proposed paragraph allows
individuals enrolled in disaster relief
employment under Disaster NDWGs to
receive concurrent career and training
services, as well as upon completion.
Feedback received from grantees over
the years demonstrates that individuals
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involved in clean-up and humanitarian
assistance benefit from the opportunity
to receive employment and training
services. These services will help to
improve the skills of these individuals
and enhance their chances of obtaining
employment once the temporary
disaster relief employment is
completed. However, because the
primary purpose of Disaster NDWGs is
to perform clean-up and humanitarian
assistance, the Department will issue
further guidance about the specific
requirements regarding concurrent
participation in career services.
Proposed § 687.180(b)(2) implements
sec. 170(b)(1)(B)(ii) of WIOA, discussed
in proposed § 687.110(b)(3), which
makes individuals who have relocated
to another State, tribal area, or outlying
area as a result of a disaster eligible to
receive services. Proposed
§ 687.180(b)(2) recognizes that although
these individuals are eligible for
temporary disaster relief employment,
their employment, by virtue of their
relocation, will most likely be limited to
humanitarian work (if those services are
warranted). If individuals relocate
outside of the disaster area, they will
most likely not be in the impacted
geographic area to conduct clean-up
work. It is the Department’s expectation
that, except in rare circumstances, the
services provided to relocated
individuals will be limited to career
services.
Proposed § 687.180(b)(3), consistent
with secs. 170(a)(1)(A)–(B) of WIOA,
authorizes career services and/or
disaster relief employment both where
recognized by FEMA, or by another
Federal agency. Under sec. 173(a)(2) of
WIA and the WIA regulations at 20 CFR
671.110(e) and 671.130(c), NEGs were
only available where FEMA declared an
area eligible for disaster-related public
assistance.
Proposed § 687.180(b)(4) implements
sec. 170(d)(1)(B) of WIOA, which states
that disaster NDWG funds may be
expended through public and private
agencies and organizations that are
engaged in disaster relief and
humanitarian assistance projects.
Section 687.190 How do statutory and
regulatory waivers apply to national
dislocated worker grants?
Proposed § 687.190 describes how
statutory and regulatory waivers apply
to NDWGs. To improve a grantee’s
ability to serve participants, or increase
the effectiveness of NDWG projects, the
Department may grant waivers to many
statutory and regulatory requirements.
See WIOA sec. 189(i)(3)(A), which
identifies some limitations on the
Secretary’s waiver authority. Proposed
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§ 687.190(a) and (b) retain essentially
the same requirements found in the
WIA regulations at 20 CFR 671.150. A
grantee requesting a waiver of the
statutory or regulatory requirements in
connection with an NDWG must submit
its request either in the initial
application for an NDWG, or in a
subsequent modification request. A
waiver issued under other WIOA
provisions does not supplant this
requirement.
Section 687.200 What are the program
and administrative requirements that
apply to national dislocated worker
grants?
Proposed § 687.200 describes program
and administrative requirements for
NDWGs. It retains essentially the same
language included in the WIA
regulations at 20 CFR 671.170. Proposed
§ 687.200(b) authorizes the use of funds
for temporary job creation in areas
declared eligible for public assistance by
FEMA or in areas impacted by a
situation of national significance as
designated by a Federal agency other
than FEMA, subject to the limitations of
sec. 170(d) of WIOA, and any additional
guidance issued by the Department.
Proposed § 687.200(b)(2) authorizes any
remaining Disaster NDWG funds
awarded under this part to be used by
a grantee in the same PY the funds were
awarded, in limited instances as
determined by the Secretary or the
Secretary’s designee, for additional
disasters or situations of national
significance subject to the limitations of
sec. 170(d) of WIOA. This flexibility
will allow States, tribal areas, and
outlying areas that experience a quick
succession of disasters (such as those
experienced by several Gulf States in
2005 that were devastated by the effects
of Hurricane Katrina, and approximately
1 month later, were devastated by
Hurricane Rita) to be able to modify
their existing grant and quickly access
existing funding.
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L. Part 688—Provisions Governing the
YouthBuild Program
1. Introduction
The Department wants to emphasize
the connections across all of our youthserving programs under WIOA
including the WIOA youth formula
program including boards and youth
committees, connections to preapprenticeship and registered
apprenticeship programs, and Job Corps
centers across the country. WIOA is an
opportunity to align and coordinate
service strategies for these ETA youth
training programs as well as align with
our Federal partners that serve these
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same customers. WIOA also ensures that
these programs are using common
performance measures and standard
definitions, which includes aligning the
definitions for homeless youth, basic
skills deficient, occupational skills
training and supportive services.
Additionally, the YouthBuild regulation
aligns six new performance measures
with the WIOA youth formula program.
WIOA affirms the Department’s
commitment to providing high quality
education, training, and ESs for youth
and young adults through YouthBuild
grants by expanding the occupational
skills training offered at local
YouthBuild programs. YouthBuild
programs can offer occupational skills
training in in-demand occupations, such
as health care, advanced manufacturing,
and IT, as approved by the Secretary
and based on local labor market
information.
In addition to the changes to the
program required by WIOA, the
Department proposes several additional
changes to the program, including
proposed revisions to the duration of
the restrictive covenant clause (as
detailed in the preamble at § 688.730),
clarifying eligibility criteria for
participation, and describing qualifying
work sites and minimum criteria for
successful exit from the YouthBuild
program. Beyond these regulations, the
Department will develop guidance and
technical assistance to help grantees and
the workforce development community
operate highly effective YouthBuild
programs.
2. Subpart A—Purpose and Definitions
Section 688.100
What is YouthBuild?
This proposed section describes the
YouthBuild program. YouthBuild is a
workforce development program that
provides employment, education,
leadership development, and training
opportunities to disadvantaged youth.
The program also benefits the larger
community by providing new and
rehabilitated affordable housing, thereby
decreasing the incidence of
homelessness in those communities.
The program recruits youth between the
ages of 16 and 24 who are school
dropouts and are either: A member of a
low-income family, a youth in foster
care, a youth who is homeless, a youth
offender, a youth who is an individual
with a disability, a child of an
incarcerated parent, or a migrant youth.
Section 688.110 What are the purposes
of the YouthBuild program?
This proposed section describes the
purposes of the YouthBuild program.
The overarching goal of the YouthBuild
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program is to offer disadvantaged youth
the opportunity to obtain education and
useful employment skills to enter the
labor market successfully. Construction
training provides skills training and
hands-on application of those skills.
Youth also receive educational services
that lead to a HSD or its Staterecognized equivalent.
In addition to describing the
Department’s vision for the YouthBuild
program, this proposed section
describes the purposes of the
YouthBuild program as found at WIOA
sec. 171(a).
Section 688.120 What definitions
apply to this part?
This proposed section provides
definitions that are specific to the
YouthBuild program in sec. 171(b) of
WIOA. Other definitions that apply to
the YouthBuild program are defined
under sec. 3 of WIOA and § 675.300.
Where appropriate and applicable the
Department has aligned our definitions
with the definitions within the
regulations of WIOA youth, Job Corps,
and WIOA adult and dislocated workers
programs.
These proposed definitions fall into
several categories, which are described
below: (1) Definitions that remain
unchanged from the WIA regulation at
20 CFR 672.110; (2) terms that were
included in the WIA regulation but
which have been amended; and (3) new
definitions added to implement WIOA.
Definitions included in 20 CFR
672.110 which have been carried over to
this part unchanged are: ‘‘Community or
Other Public Facility,’’ ‘‘Core
Construction,’’ ‘‘Eligible Entity,’’
‘‘Housing Development Agency,’’
‘‘Income,’’ ‘‘Indian; Indian Tribe,’’
‘‘Low-Income Family,’’ ‘‘Migrant
Youth,’’ and ‘‘Youth in Foster Care.’’
Definitions published in the WIA
regulations at § 672.110 that the
Department proposes changing include
existing definitions for: ‘‘Homeless
Individual’’ to include individuals
considered homeless as defined in sec.
41403(6) of the Violence Against
Women Act of 1994 and the inclusion
of ‘‘Homeless Child or Youth’’ as
defined under the McKinney-Vento
Homeless Assistance Act; ‘‘Needs-Based
Stipends’’ to ‘‘Needs-Based Payments’’
in order to be consistent with the term
as used in § 688.320 below and to
differentiate the term from the allowable
program stipends described in
§ 688.320; ‘‘Occupational Skills
Traning’’ to align with in-demand
industries and an emphasis on postsecondary credentials; ‘‘Registered
Apprenticeship’’ to align with the
WIOA definition; and ‘‘Transitional
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Housing’’ to reflect the amended
definition under the McKinney-Vento
Homeless Assistance Act as amended by
S. 896 The Homeless Emergency
Assistance and Rapid Transition to
Housing (HEARTH) Act of 2009.
Proposed changes to this section also
include the addition of new definitions
that were not in WIA but are included
in either sec. 3 or sec. 171(b) of WIOA.
These are ‘‘Adjusted Income,’’
‘‘Applicant,’’ ‘‘Basic Skills Deficient,’’
‘‘In-Demand Industry Sector or
Occupation,’’ ‘‘Individual with a
Disability,’’ ‘‘Offender,’’ ‘‘Qualified
National Nonprofit Agency,’’
‘‘Recognized Post-secondary
Credential,’’ ‘‘School Dropout,’’
‘‘Secondary School,’’ ‘‘Supportive
Services,’’ and ‘‘YouthBuild Program.’’
Finally, the Department proposes to
include several new definitions not
defined under WIA YouthBuild
regulations § 673.110: ‘‘Construction
Plus,’’ ‘‘Exit,’’ ‘‘Follow-Up Services,’’
‘‘Participant,’’ and ‘‘Preapprenticeship.’’
In addition, the Department has
removed several definitions that were
included in the WIA regulations:
‘‘Alternative School,’’ ‘‘Individuals of
Limited English Proficiency (LEP),’’
‘‘Partnership,’’ ‘‘Public Housing
Agency,’’ and ‘‘Youth who is an
Individual with a Disability.’’
The Department proposes to include
the following definitions at § 688.120:
Adjusted Income: The Department
proposes that the term ‘‘adjusted
income’’ means that with respect to a
family, the amount of the income of the
members of the family residing in a
dwelling unit or the persons on a lease,
after any allowable income exclusions.
Per WIOA sec. 171(b)(1), this definition
comes from sec. 3(b) of the United
States Housing Act of 1937 (42 U.S.C.
1437a(b).
Applicant: The Department proposes
defining this as an entity applying for
YouthBuild funding as described at
WIOA sec. 171(b)(2).
Basic Skills Deficient: This proposed
definition comes from WIOA sec. 3(5)
and the Department is adding it for ease
of use. In assessing basic skills,
YouthBuild programs must use
assessment instruments that are valid
and appropriate for the target
population, and must provide
reasonable accommodation in the
assessment process, if necessary, for
participants with disabilities.
Construction Plus: The Department
proposes defining this as the inclusion
of occupational skills training for
YouthBuild participants in in-demand
occupations other than construction.
This definition is from TEGL 7–14
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Guidance for Implementing the
‘‘Construction Plus’’ Component of the
YouthBuild Program. The Department is
adding this definition to the regulations
to stress the importance of correctly
implementing a high quality
Construction Plus program and to refer
grantees to TEGL 7–14.
Community Or Other Public Facility:
The Department proposes defining this
as those facilities which are either
privately owned by non-profit
organizations or publicly owned and
publicly used for the benefit of the
community. For publically owned
buildings, examples include public use
buildings such as recreation centers,
libraries, public park shelters, or public
schools.
Core Construction: The Department
proposes defining this term to mean
those activities that are directly related
to the construction or rehabilitation of
residential, community, or other public
facilities. These activities include, but
are not limited to, job skills that can be
found under the Standard Occupational
Classification System (SOC) major group
47, and Construction and Extraction
Occupations, in codes 47–1011 through
47–4099. A full list of the SOC’s can be
found at the Bureau of Labor Statistics
(BLS) Web site, https://www.bls.gov/soc.
Eligible Entity: This proposed term
describes the entities eligible to apply
for funding under this part. This
definition comes from WIOA sec.
171(b)(3).
English Language Learner: The
Department proposes defining this term
as a participant who has limited ability
in reading, writing, speaking, or
comprehending the English language,
and whose native language is one other
than English; or who lives in a family
or community environment where a
language other than English is the
dominant language. This definition
comes from WIOA sec. 3(21), which
adopts the definition found at WIOA
sec. 203(7).
Exit: For purposes of measuring
performance under the performance
measures described in § 688.400, the
Department proposes to adopt the
general definition of exit that is used in
§ 677.150 in order to align with the core
programs generally and the youth
formula program specifically. For
purposes of this definition, an exit from
a YouthBuild program is either a
successful exit under § 688.370 or an
unsuccessful exit, which occurs when a
participant leaves the program before
completing the program. However, a
participant is not considered to have
unsuccessfully exited if they leave the
program because of a documented
death, health or medical reason, family
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care, being called to active duty in the
military, or any other circumstance
described by the Secretary.
Follow-Up Services: This proposed
term describes the services provided to
youth participants after program exit to
ensure success in established outcomes,
such as placement into post-secondary
education and training or employment.
The definition is based on the
Department’s experience in
administering the YouthBuild program,
and aligns with the WIOA youth
formula program definition. By adding
this definition, the Department intends
to strengthen the emphasis on career
pathways for YouthBuild participants.
Follow-up services are critical services
provided following a youth’s exit from
the program that help ensure the youth
is successful in employment and/or
post-secondary education and training
as they progress along their career
pathway. The Department will issue
guidance and provide technical
assistance regarding the services
necessary to ensure the success of youth
participants.
Homeless Individual: This proposed
term comes from WIOA sec. 171(b)(4),
which adopted the definition from sec.
41403(6) of the Violence Against
Women Act of 1994 (42 U.S.C. 14043e–
2(6)).
Homeless Child or Youth: This
proposed term comes from WIOA sec.
171(b)(4) of WIOA and comes from sec.
725(2) of the McKinney-Vento Homeless
Assistance Act (42 U.S.C. 1134a(2)).
Housing Development Agency: The
Department proposes adopting the
statutory definition of this term at
WIOA sec. 171(b)(5).
Income: This proposed definition has
been adopted from WIOA sec. 171(b)(6),
which adopted the definition from the
United States Housing Act of 1937 (42
U.S.C. 1437a(b)(2)).
In-Demand Industry Sector or
Occupation: The Department proposes
to define this term as described at WIOA
sec. 3(23).
Indian; Indian Tribe: These proposed
terms are found in WIOA sec. 171(b)(7),
which incorporated the definitions from
sec. 4 of the ISDEAA.
Individual With a Disability: This
proposed definition was taken from sec.
3(25) of WIOA, which adopted the
definition from sec. 3 of the Americans
with Disabilities Act of 1990 (42 U.S.C.
12102).
Low-Income Family: This proposed
definition implements the definition at
WIOA sec. 171(b)(8), which adopted the
definition of ‘‘low-income family’’ from
sec. 3(b)(2) of the Housing Act of 1937.
This definition applies not only to the
eligibility of participants but also to the
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requirement that any residential units
constructed or rehabilitated using
YouthBuild funds must house homeless
individuals and families or low-income
families.
Migrant Youth: The Department
proposes using the definition we used
under the WIA YouthBuild regulation.
The definition was adapted from
Farmworker Bulletin 00–02, which
relates to eligibility in the Migrant
Seasonal Farmworker Youth program,
and expands on the definition of
‘‘migrant seasonal farmworker’’ found in
WIA.
Needs-Based Payments: This
proposed term describes additional
payments to participants beyond
stipends which are necessary for an
eligible youth to participate in the
program.
Occupational Skills Training: The
Department proposes to define this term
as a course of study that provides
specific vocational skills.
Offender: The Department proposes to
define this term based on the definition
found at WIOA sec. 3(38) and it
includes both youth and adults who
have been subject to any stage of the
criminal justice process. The
Department is proposing this definition
in order to align YouthBuild’s definition
of offender with WIOA’s formula for
adult and youth programs.
Participant: The Department is
proposing to define this term as an
individual who, after an affirmative
eligibility determination has been made,
enrolls and actively participates in the
program. Participants must be reported
in the performance outcome measures.
The term ‘‘participant’’ is necessary to
define because § 688.400 requires
grantees to report on the performance of
participants in the program. This
definition is designed to be consistent
with the definition of participant in
§ 677.150, and it captures the same type
of individuals that are considered
participants in the core programs.
Pre-Apprenticeship: This proposed
term describes a program or set of
strategies designed to prepare
individuals to enter and succeed in a
registered apprenticeship program. This
definition is adopted from TEN 13–12
(https://wdr.doleta.gov/directives/attach/
TEN/TEN_13-12_Acc.pdf), and is being
used to ensure consistency with the
definition used by the Department’s
Office of Apprenticeship. Per TEN 13–
12, YouthBuild programs that receive
funding from DOL are considered preapprenticeship programs.
Recognized Post-secondary
Credential: This proposed definition
explains that a recognized postsecondary credential includes an
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industry-recognized certificate or
completion of an apprenticeship
program, a license recognized by the
State involved or Federal government,
or an associate or baccalaureate degree.
This definition has been adopted from
WIOA sec. 3(52). the Department is
using this to term to align with WIOA’s
formula adult and youth programs.
Registered Apprenticeship Program:
The Department proposes to adopt the
definition found at WIOA sec.
171(b)(10).
School Dropout: This proposed
definition, adopted from WIOA sec.
3(54), describes a school dropout as an
individual who is no longer attending
any school and who has not received a
secondary school diploma or its
recognized equivalent.
Secondary School: The Department
proposes to define this term as a
nonprofit institutional day or residential
school, including a public secondary
charter school, that provides secondary
education, as determined under State
law, except that the term does not
include any education beyond grade 12.
This proposed definition adopts the
definition at WIOA sec. 3(55), which
cites to sec. 9101 of the Elementary and
Secondary Education Act of 1965 (20
U.S.C. 7801).
Section 3: The Department proposes
to define this term as Section 3 of the
Housing and Urban Development Act of
1968, as amended by the Housing and
Community Development Act of 1992.
The Department proposes adding this
definition because YouthBuild is
specifically identified in the U.S.
Department of Housing and Urban
Development (HUD’s) Section 3
regulations. In Section 3, contractors are
encouraged to work with YouthBuild
programs and participants when
working on Federally-funded HUD
projects. Contractors and registered
apprenticeship sponsors that hire
YouthBuild graduates will increase the
competitiveness of their proposals when
bidding on HUD-funding construction
projects.
Supportive Services: This proposed
definition adopts the definition from
WIOA sec. 3(59). In this definition,
linkages to community services include
but are not limited to services such as
linkages to free legal aid to help with
the expungement of criminal records,
securing government identification, and
linkages to organizations that provide
youth the opportunity to develop their
leadership skills through service to their
respective community. This proposed
definition identifies additional services
that are necessary for youth to
participant in this program. Guidance
regarding the provision of supportive
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services will be issued by the
Department.
Transitional Housing: The
Department proposes to define this term
as housing provided to ease the
movement of individuals and families
experiencing homelessness to
permanent housing within 24 months.
This definition, per WIOA sec.
171(b)(11), is adopted from sec. 401(29)
of the McKinney-Vento Homeless
Assistance Act (42 U.S.C. 11360(29)).
Youth in Foster Care: This term
means ‘‘youth currently in foster care or
youth who have ever been in foster
care.’’ The Department is including it
here as it was in WIA YouthBuild
regulations.
Youthbuild Program: The Department
proposes to define this term as any
program that receives assistance under
this section and provides disadvantaged
youth with opportunities for
employment, education, leadership
development, and training through the
rehabilitation (which for purposes of
this section, must include energy
efficiency enhancements) or
construction of housing for homeless
individuals and low-income families,
and public facilities. This proposed
term adopts the definition from WIOA
sec. 171(b)(12).
3. Subpart B—Funding and Grant
Applications
Section 688.200 How are YouthBuild
grants funded and administered?
This proposed section describes how
the Secretary uses funds authorized for
appropriation under WIOA sec. 171(i) to
administer YouthBuild as a national
program under title I, subtitle D of
WIOA. This section also notes that
grants to operate YouthBuild programs
are awarded to eligible entities through
a competitive selection process, as
required by WIOA sec. 171(c)(3). This
proposed section retains the same
requirements found at 20 CFR 672.200.
Section 688.210 How does an eligible
entity apply for grant funds to operate
a YouthBuild program?
This proposed section, implementing
WIOA sec. 171(c)(1), generally describes
the application process for the
YouthBuild program.
Section 688.220 How are eligible
entities selected to receive grant funds?
This proposed section, which
implements WIOA sec. 171(c)(4),
describes the selection criteria that will
be considered by the Secretary when
reviewing an application for funding. In
addition to the criteria described in the
law, the Department has added
additional criteria in paragraphs (d), (e),
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and (g) and added a new criteria in
paragraph (i).
In paragraph (d), the Department has
added ‘‘counseling and case
management’’ to the criteria described
in sec. 171(c)(4)(D) because these are
essential to the success of YouthBuild
participants.
In paragraph (e), in addition to the
criteria at WIOA sec. 171(c)(4)(E), the
Department has clarified that applicants
should train participants in sectors or
occupations that are in demand locally
to help them achieve a positive
employment outcome after their exit
from the program. Paragraph (g) adds to
the criteria at WIOA sec. 171(c)(4)(I) by
clarifying that the Department will also
consider the extent to which the
proposal provides for previously
homeless families as well as
individuals.
The Department has added a new
criterion at paragraph (i) which looks at
the applicant’s ability to enter into
partnerships with a variety of
organizations and providers. Inclusion
of this criterion is beneficial to the
grantee and the participant. No single
grantee is able to provide all of the
services that a participant will need to
succeed along her or his chosen career
pathway. However, programs that enter
into various types of partnerships are
able to provide participants with needed
supportive services, increasing the
likelihood that they will succeed both
during and after their participation in
the program.
Finally, paragraph (l) clarifies that the
Department will apply varying weights
to these factors as described in the FOA.
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Section 688.230 What are the
minimum requirements and elements to
apply for YouthBuild funds?
This proposed section implements
WIOA section 171(c)(3)(B) and describes
the minimum requirements and
elements that must be included in an
application for YouthBuild funds.
In addition to the requirement at sec.
171(c)(3)(B)(iii), proposed § 688.230(c)
requires applicants to describe their
experience operating a program under
Section 3 of the Housing and Urban
Development Act of 1968. This
requirement was added because the
Department wants grantees to be aware
that YouthBuild is specifically
identified in HUD’s Section 3
regulations. In Section 3, contractors are
encouraged to work with YouthBuild
programs and participants when
working on Federally-funded HUD
projects. The criteria described in this
proposed section will be included in the
FOA.
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The criteria described in this section
emphasize strong connections to
registered apprenticeship programs as a
key component of the YouthBuild
model, as well as connections to the
one-stop system as a support for
employer engagement, connecting with
the Local Workforce Development Board
youth services, and connecting to the
network of standing youth committees
at the local level. These connections
will not only strengthen YouthBuild
programs, but better enable them to
provide a comprehensive spectrum of
employment and training services to
their participants.
Additionally, § 688.230(l) proposes,
consistent with current practice, that the
Department will consider an applicant’s
past performance under an award made
by the Secretary of Labor to operate a
YouthBuild program. This consideration
will be based on the applicant’s past
Quarterly Performance Reports (ETA–
9136) and Quarterly Financial Reports
(ETA–9130). Our past experience in
administering the YouthBuild program
has demonstrated that evaluating past
performance allows the Department to
conduct comprehensive analysis of the
program’s ability to meet the
complicated requirements of
YouthBuild. Additional details about
this requirement will be included in the
FOA.
Finally, proposed paragraph (v)
authorizes the Secretary to include
additional requirements in the FOA.
This provision has been included to
ensure that the requirements upon
which the Secretary is making its
determination are based on adequately
and accurately judging the ability of the
applicant in order to ensure the
effective, efficient use of Federal funds
and maximum benefit to program
participants and the communities in
which the proposed program will
operate.
It covers the required ages, education,
income level, and other factors as well
as exceptions. This proposed section
implements the statutory eligibility
requirement at WIOA sec. 171(e)(1).
While the language ‘‘its recognized
State equivalent’’ in § 688.300(b)(1) is
commonly understood to mean a GED,
States can choose from several different
equivalency tests that result in the
attainment of a credential similar to the
GED. Accordingly, the phrase
‘‘recognized State equivalent’’ as used in
this section refers to the credential
attained by passing any of the
recognized equivalency tests.
While WIOA sec. 171(e)(1)(A)(ii)
includes ‘‘a youth offender’’ as an
eligible participant, proposed
§ 688.300(a)(3)(iii) permits both adult
and youth offenders to participate in the
YouthBuild program. The reason for the
inclusion of adult offenders is twofold.
First, some States categorize anyone
who was convicted of a crime over the
age of 16 an adult. Because individuals
between the ages of 16 and 24 are
eligible to participate in YouthBuild
programs, not including adult offenders
as eligible participants would exclude
those 16 and 17 year olds who have
been convicted of a crime from
participating in the program. Including
adult offenders in this list of eligible
participants ensures that these youth
with a substantial barrier to
employment will be able to participate
in and benefit from the YouthBuild
program.
Section 688.240 How are eligible
entities notified of approval for grant
funds?
Section 688.320 What eligible
activities may be funded under the
YouthBuild program?
This proposed section, which
implements WIOA sec. 171(c)(2),
outlines the activities that YouthBuild
programs funded under this section may
provide to program participants,
including the allowable education and
workforce training activities. Of note,
sec. 171(c)(2)(a)(i) of WIOA codified the
Department’s decision to allow training
in in-demand industries with the
approval of the Secretary.
In addition to the activities allowed
by the statute, the Department, in
§ 688.320, proposes to allow grantees to
provide referrals to mental health
Consistent with sec. 171(c)(5) of
WIOA, this proposed section describes
how eligible entities are notified of the
status of their respective grant
application submitted for funding and
the time frame for notification. This
proposed section retains the same
requirements found at 20 CFR 672.215.
4. Subpart C—Program Requirements
Section 688.300
participant?
Who is an eligible
This proposed section sets out the
participant eligibility requirements for
enrollment in the YouthBuild program.
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Section 688.310 Are there special rules
that apply to veterans?
This section identifies the relevant
rules for determining income for
veterans and priority of service for
qualified veterans. These rules can be
found in 20 CFR 683.230 and 20 CFR
part 1010, respectively. This proposed
section retains the same requirements
found at 20 CFR 672.305.
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services and victim services, such as
referrals to domestic violence services
or services to victims of gang violence.
The Department has decided to add this
because it is not uncommon for our
participants to enroll in our programs
while at the same time dealing with the
adverse effects of violence.
Finally, § 688.320(a)(7)(ii) specifies
that in order to provide needs-based
payments, a grantee must have a written
policy which includes the information
described to sure that such payments
are proper and fairly distributed.
Section 688.330 What level of training
qualifies a construction project as a
qualifying work site under the
YouthBuild program?
This proposed section provides
requirements for YouthBuild grant
programs on what is considered a
qualifying work site for purposes of
allowable construction activities under
the YouthBuild program.
While the YouthBuild program model
requires hands-on construction training
that supports the outcome of increasing
the supply of affordable housing within
the communities that YouthBuild
serves, some grant programs struggle to
secure work sites that will offer the
youth the hands-on construction skills
training obtained from either building
housing from scratch or through
extensive rehabilitation of existing
housing stock.
Determining whether a work site
meets the criteria for providing
substantial hands-on experience is
complex. As referenced in TEGL 35–12,
‘‘Definition and Guidance on Allowable
Construction Credentials for YouthBuild
Programs,’’ participants must study and
pass testing in a number of modules, or
skill areas, before one of the industryrecognized construction certification
programs will accredit them. These
modules include, for example, brick
masonry, carpentry, painting, plumbing,
and weatherization.
Per paragraphs (a) through (e) of this
section, several criteria must be met in
order for a work site to qualify as
appropriate for construction skills
training for YouthBuild participants.
The first is whether the worksite will
provide the opportunity for hands-on
training in at least two modules in a
construction skills training program
offering an industry-recognized
credential. The second is whether the
completed work site will be used by a
family or individual that meets the lowincome threshold, as defined by the
United States Housing Act of 1937 (42
U.S.C. 1437a(b)(2)). The third is whether
the site provides substantial hands-on
experience for youth. This means that
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the work site must include from-theground-up building experience (e.g.,
foundation, framing, roofing, dry wall
installation, finishing, etc.) or a
substantial level of rehabilitation (i.e.,
‘‘a gut job’’). Fourth, per § 688.730, all
YouthBuild work sites must be built or
renovated for low-income individuals or
families and are required to have a
restrictive covenant in place that only
allows for rental or resale to low-income
participants for a particular period of
time. Last, all work sites must adhere to
the allowable construction and other
capital asset costs, as defined in TEGL
05–10, ‘‘Match and Allowable
Construction and Other Capital Asset
Costs for the YouthBuild Program,’’ or
subsequent or similar guidance issued
by the Department related to allowable
costs.
All grantees must use the required
Work Site Description form (ETA–9143)
in submitting proposed work sites for
review and approval to and by the
Department at the time of applying for
grant funds. If after approval the grantee
can no longer work at the approved
construction site, the grantee must
submit another ETA–9143 for the
proposed new work site. The Work Site
Description form requests specific
information on the property for building
or rehabilitation, the participants’
construction activities, the funding
source for the construction, and
demonstration of ownership or access to
the site.
By tying approved work sites with
hands on training, the Department can
ensure youth have the necessary handson training and experience in two or
more of these modules or skill areas in
order to qualify for industry-recognized
credentials. The Department will issue
guidance on the types of work sites that
are acceptable for construction training
for YouthBuild participants, and
describe the minimum construction
activities that define work site training.
Section 688.340 What timeframes
apply to participation?
This proposed section, implementing
WIOA sec. 171(e)(2), provides that the
period of participation for YouthBuild
participants while enrolled in the
program is not less than 6 months and
not more than 24 months. This
proposed section retains the same
requirements found at 20 CFR 672.315.
Section 688.350 What timeframes
must be devoted to education and
workforce investment or other
activities?
Implementing WIOA sec. 171(e)(3),
this proposed section outlines the
requirements for the minimum amount
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of time that participants must engage in
workforce and educational training
activities. This section also permits
program participants to spend up to 10
percent of their time engaged in
leadership development and community
service activities, such as youth serving
as crew leaders, participating on policy
councils, organizing community cleanup projects, leading youth voter
registration drives and organizing and
hosting community anti-violence
conferences.
Section 688.360 What timeframes
apply to follow-up services?
This proposed section requires
YouthBuild grantees to provide followup services for a period of 12 months
after exit. These services are provided to
program participants that have
successfully exited the program to help
them transition successfully into a postsecondary education program or
employment.
The Department proposes to require
12 months of follow-up services to align
the length of services with the youth
formula program and the new
performance measure requiring grantees
to measure outcomes up to four quarters
after exit. The types of services provided
and the duration of services must be
determined based on the needs of the
individual and therefore, the type and
intensity of follow-up services may
differ for each participant.
Consistent with the youth formula
program, a participant that is receiving
follow-up services is considered to have
exited the program, and therefore would
be counted as having exited the program
for the purpose of the performance
measures described in § 688.400.
Section 688.370 What are the
requirements for exit from the
YouthBuild program?
This proposed section outlines the
minimum criteria for successful exit
from the YouthBuild program. One
purpose of the YouthBuild program is
for participants to receive practical
skills and training that will allow them
to successfully transition to
employment or further education. As
used in this section, a successful exit
occurs when a participant has
completed his/her training and is ready
to transition out of the program.
Proposed paragraph (a) requires
hands-on training because, based on our
experience, participants that do not
receive this training are less likely to
transition out of the program
successfully, thereby undermining one
of the primary purposes of the program.
Proposed paragraph (b) requires each
YouthBuild program to create exit
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policies that establish any additional
minimum requirements that youth must
meet in order to be considered to have
successfully completed the program.
In the past, grantees have deemed
participants to have exited the program,
simultaneously upon graduation, before
all program services have been
completed or delivered. This can result
in lower performance outcome measures
for the grantee and a lower post program
success rate for participants.
Participants do not have to exit at the
moment of graduation. Exits can and
should be based on the individual
ongoing needs of the participant.
Transition services can be provided
until the participant is ready for exit
and may include college experience,
subsidized summer jobs, internships, or
other activities that will help the youth
focus on post-program goals (for further
details, please see § 688.320). It may
also be best to have the youth already
connected to a post-program placement
before exit to ensure successful
outcomes for the youth and successful
performance outcome measures for the
program. In addition, because follow-up
services are only available to
participants that have successfully
completed the program, adding this
section clarifies which participants are
eligible to receive follow-up services
Section 688.380 What is the role of the
YouthBuild grantee in the one-stop
system?
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WIOA sec. 121(b)(1)(B)(i) includes all
of the programs authorized under title I
of WIOA as a required partner in the
local one-stop system. This proposed
section implements that provision by
requiring YouthBuild grantees to take
all actions required of required partners
described in sec. 121 of WIOA and 20
CFR part 678. The Department
encourages its YouthBuild grantees to
actively participate as a partner with the
one-stop system. Because of the positive
role that a local one-stop center can
have on the operation of a local
YouthBuild program and on the
outcomes for YouthBuild participants,
the local YouthBuild grantee should
serve as the required partner of the onestop system as required by sec. 121 of
WIOA.
5. Subpart D—Performance Indicators
Section 688.400 What are the
performance indicators for YouthBuild
grants?
This proposed section describes
performance indicators for the
YouthBuild program, as required by
WIOA sec. 171(f). Proposed § 688.400(a)
through (f) are the six primary
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indicators as required by sec. 116
(b)(2)(A)(ii) of WIOA. These measures of
performance are the same as the primary
indicators discussed in proposed
§ 677.155. Though the indicators of
performance are identified in various
places throughout the WIOA proposed
regulations, the indicators are the same
and do not vary across the regulations.
In addition to the six primary
indicators, the Secretary may require
YouthBuild programs to collect
additional information on performance.
If additional performance information
becomes a requirement for YouthBuild
grantees, they will be informed through
a formal memorandum from the
Department.
In calculating a program’s
performance, grantees must consider all
of the participants that have exited the
program, as that term is defined in
§ 688.120, not just those that have
successfully exited the program under
the policy described in § 688.370.
Section 688.410 What are the required
levels of performance for the
performance indicators?
This proposed section, implementing
sec. 171(f) of the statute, provides a
description of how levels of
performance are developed for
YouthBuild programs.
Section 688.420 What are the reporting
requirements for YouthBuild grantees?
This section outlines the performance,
narrative, and financial reporting
requirements for YouthBuild grantees
and explains that any additional
information on the reporting
requirements will be included in
guidance issued by the Secretary. This
proposed section retains the same
requirements found at 20 CFR 672.410.
Section 688.430 What are the due
dates for quarterly reporting?
This section provides due dates for
quarterly performance reporting under
the YouthBuild program. This proposed
section retains the same requirements
found at 20 CFR 672.415.
6. Subpart E—Administrative Rules,
Costs, and Limitations
Section 688.500 What administrative
regulations apply to the YouthBuild
program?
This proposed section applies the
relevant administrative requirements
and regulations applicable to all WIOA
ETA programs to the YouthBuild
program. This section requires each
YouthBuild grantee to comply with the
general administrative requirements
found in 20 CFR part 683, except those
that apply only to the WIOA title I–B
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program, the Uniform Administrative
Requirements at 2 CFR parts 200 and
2900, 29 CFR parts 93, 94, and 98, and
the nondiscrimination regulations at 29
CFR part 37.
The nondiscrimination regulations
incorporated by this section at
§ 688.500(c)(2), 29 CFR part 37, broadly
prohibit all forms of discrimination for
WIOA title I programs, which include
YouthBuild. In particular, 29 CFR 37.5
states that ‘‘[n]o individual in the
United States may, on the ground of
race, color, religion, sex, national origin,
age, disability, political affiliation or
belief, and for beneficiaries only,
citizenship or participation in any
WIOA title I-financially assisted
program or activity, be excluded from
participation in, denied the benefits of,
subjected to discrimination under, or
denied employment in the
administration of or in connection with
any WIOA title I-funded program or
activity.’’
The regulations also require that
grantees provide reasonable
accommodations to youth who are
individuals with disabilities, as found
in 29 CFR 37.8. For grantees unsure of
how to best accommodate youth who
are individuals with disabilities in their
program, the Department recommends
that the grantees consult with the Job
Accommodation Network [https://
askjan.org/] or call (800) 526–7234
(Voice) (877) 781–9403 (TTY], a free
service of the Department’s Office of
Disability Employment Policy that
provides employers with technical
assistance on accommodating different
disabilities.
In addition to prohibiting
discrimination, YouthBuild grantees
have positive requirements to ensure
equal opportunity and prevent
discrimination in their programs.
YouthBuild grantees are required by 29
CFR 37.29 through 37.32 to disseminate
an equal opportunity policy.
YouthBuild grantees also must ensure
that they provide universal access to
their programs, including advertising
the program in a manner that targets
various populations, sending notices
about openings in programs to
community service groups that serve
various populations, and consulting
with community service groups on ways
to improve outreach and service to
various populations, as required by 29
CFR 39.42.
YouthBuild grantees also are required
to comply with all generally applicable
laws and implementing regulations that
apply to the grantees or their
participants. For example, for
participants who are youth with
disabilities and participate in secondary
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education programs, grantees must
adhere to the administrative provisions
of the Individuals with Disabilities
Improvement Act at 34 CFR 300.320
through 300.324, which require that
grantees provide youth who are
individuals with disabilities who enter
the program with an appropriate
transition plan corresponding to their
individual needs.
Finally, proposed § 688.500(d),
implementing sec. 171(e)(5) of WIOA,
requires YouthBuild grantees to comply
with relevant State and local education
standards for their programs and
activities that award academic credit or
certify educational attainment.
Section 688.510 How may grantees
provide services under the YouthBuild
program?
This proposed section, implementing
WIOA sec. 171(h), authorizes grantees to
provide services directly or to enter into
subgrants, contracts, or other
arrangements with various public and
private entities. This proposed section
retains the same requirements found at
20 CFR 672.505.
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Section 688.520 What cost limits
apply to the use of YouthBuild program
funds?
This proposed section implements
WIOA secs. 171(c)(2)(C)(i) and (c)(2)(D),
describing the limitations on the
percentage of grant funds that a
YouthBuild grantee can spend on
administrative costs and the
rehabilitation or construction of a
community or public facility. The
definition of administrative costs can be
found in 20 CFR 683.215.
Section 688.530 What are the costsharing or matching requirements of the
YouthBuild program?
This proposed section provides that
the cost-sharing or matching
requirements applicable to a
YouthBuild grant generally will be
addressed in the grant agreement, and
also describes the requirements for
several specific costs.
Regarding the use of Federal funds,
this section explains that grantees must
follow the requirements of 2 CFR parts
200 and 2900 in the accounting,
valuation, and reporting of the required
non-Federal share. Additionally,
because inquiries about the allowability
of using Federal funds as part of the
cost-sharing or match amount is
frequently asked by applicants, the
regulations restate the prohibition on
the use of such funds.
This proposed section retains the
same requirements found at 20 CFR
672.515.
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Section 688.540 What are considered
to be leveraged funds?
This proposed section addresses the
use of additional money, known as
leveraged funds, to support grant
activities. It explains that leveraged
funds include costs that could be an
allowable match but are in excess of the
match requirement or costs that do not
meet the cost-sharing and match
requirements set forth in the Uniform
Administrative Requirements. To be
considered leveraged funds, they must
be otherwise allowable costs under the
cost principles which have been used by
the grantee to support grant activity. For
example, the Department would not
allow a grantee to count toward the
match requirement another Federal
grant used by the grantee or subgrantee
to support otherwise allowable activities
under the YouthBuild program.
However, the Department would
consider such a grant a leveraged fund.
The amount, commitment, nature and
quality of the leveraged funds described
in the grant application will be
considered as factors in evaluating
grants in the FOA. The Department also
will require grantees to report the use of
such funds through their financial
report and quarterly narrative report.
This proposed section retains the
same requirements found at 20 CFR
672.520.
Section 688.550 How are the costs
associated with real property treated in
the YouthBuild program?
This proposed section specifies which
costs associated with real property are
allowable and unallowable under the
YouthBuild program. It explains that the
costs associated with the acquisition of
buildings to be rehabilitated for training
purposes are allowable under the same
proportionate share conditions that
apply under the match provision at
§ 688.530, but only with prior grant
officer approval. Costs related to
construction and/or rehabilitation
associated with the training of
participants are allowed; however, costs
associated with the acquisition of land
are not.
Section 688.560 What participant costs
are allowable under the YouthBuild
program?
This proposed section permits
payments to participants for workrelated and non-work-related
YouthBuild activities, supportive
services, needs-based payments, and
additional benefits as allowable
participant costs.
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Section 688.570 Does the Department
allow incentive payments in the
YouthBuild program?
This proposed section allows
incentive payments to youth
participants for recognition and
achievement directly tied to training
activities and work experiences.
Grantees must outline in writing how
they will use incentive payments.
Proposed paragraphs (a) and (b) require
that incentive payments be provided in
accordance with the organization’s
general policies governing incentives
and be related to the goals of the
specific YouthBuild program. All
incentive payments must be provided in
accordance with the requirements in 2
CFR 200.
Section 688.580 What effect do
payments to YouthBuild participants
have on eligibility for other Federal
needs-based benefits?
This proposed section explains the
effect that payments to YouthBuild
participants have on eligibility for other
Federal needs based benefits. Under
WIOA regulations at 20 CFR 683.275(c),
allowances, earnings, and payments to
individuals participating in programs
under title I of WIOA are not considered
as income for purposes of determining
eligibility for and the amount of income
transfer and in-kind aid furnished under
any Federal or Federally-assisted
program based on need other than as
provided under the SSA (42 U.S.C. 301).
This proposed section retains the
same requirements found at 20 CFR
672.535.
Section 688.590 What program income
requirements apply to the YouthBuild
program?
This proposed section provides that
the program income provisions of the
Uniform Administrative Requirements
at 2 CFR parts 200 and 2900 apply to the
YouthBuild program. This section
specifies that the revenue from the sale
or rental of buildings rehabilitated or
constructed under the YouthBuild
program to homeless individuals and
families or low-income families, as
specified in § 688.730, is not considered
program income. The Department
encourages grantees to use such revenue
for the long-term sustainability of the
YouthBuild effort.
This proposed section retains the
same requirements found at 20 CFR
672.540.
Section 688.600 Are YouthBuild
programs subject to the Davis-Bacon Act
labor standards?
This proposed section requires that
when a YouthBuild participant works
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on a project subject to Davis-Bacon labor
standards, the Davis-Bacon labor
standards, including prevailing wage
requirements, apply to the hours
worked on the site of the work.
The regulations implementing the
Davis-Bacon Act contain a provision
that allows for Department-certified
training programs to pay less than the
applicable prevailing wage rate to
trainees when work is being performed
on Federally-funded projects. As
stipulated by 29 CFR 5.5(a)(4)(ii),
‘‘trainees’’ are not permitted to be paid
less than the predetermined rate for the
work performed unless they are
employed under an individual
registered in a program which has
received prior approval, evidenced by a
formal certification by DOL. However,
YouthBuild program participants are
not considered ‘‘trainees’’ and therefore
must be paid the prevailing wage rate
when they are performing work on
Federally-funded projects.
This proposed section retains the
same requirements found at 20 CFR
672.545.
Section 688.610 What are the
recordkeeping requirements for
YouthBuild programs?
This section sets forth that grantees
must follow the recordkeeping
requirements specified in the Uniform
Administrative Requirements at 2 CFR
parts 200 and 2900, and any additional
requirements included in subsequently
issued guidance or the grantee’s grant
agreement. This proposed section
retains the same requirements found at
20 CFR 672.550.
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7. Subpart F—Additional Requirements
Section 688.700 What are the safety
requirements for the YouthBuild
program?
This proposed section requires
YouthBuild grantees to comply with 20
CFR 683.280, which applies Federal and
State health and safety standards to the
working conditions under WIOAfunded projects safety requirements for
YouthBuild programs, and the relevant
child labor laws at 29 CFR part 570,
governing the employment of children
in hazardous occupations under the Fair
Labor Standards Act. This proposed
section is meant to protect the health
and safety of YouthBuild participants
on YouthBuild work sites, and to ensure
that YouthBuild grantees comply with
relevant child labor laws.
Section 688.710 What are the reporting
requirements for youth safety?
This proposed section requires
YouthBuild grantees to comply with the
OSHA reporting requirements in 29 CFR
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part 1904 if a participant suffers a
reportable injury while participating in
the YouthBuild program. This proposed
section retains the same requirements
found at 20 CFR 672.605.
period of performance. The Department
specifically requests comments on the
restrictive covenant requirement and
our proposal to shorten the length of the
covenant.
Section 688.720 What environmental
protection laws apply to the YouthBuild
program?
This proposed section requires
grantees to comply with all
environmental protection statutes and
regulations, if applicable. This proposed
section retains the same requirements
found at 20 CFR 672.610.
M. Part 651—General Provisions
Governing the Federal-State
Employment Service System
Section 688.730 What requirements
apply to YouthBuild housing?
In order to effectively ensure that one
of the primary purposes of the
YouthBuild program—to increase the
stock of housing for homeless and lowincome individuals and families—is
met, this proposed section provides
additional requirements, including a
series of restrictions on the sale and use
of units of housing built or renovated by
a YouthBuild grantee.
This proposed section also requires a
YouthBuild grantee to ensure that the
owner of the property records a
restrictive covenant on the property.
The covenant must include the use
restrictions in this section and must be
for a term of 5 years. The Department
requires the recordation of a restrictive
covenant to ensure that YouthBuild
funds are spent on projects that will
benefit the intended beneficiaries of the
program beyond the life of the grant.
Under the WIA regulations, grantees
were required to ensure that the
restrictive covenant was for a 10-year
term. However, grantees have identified
the 10-year restrictive covenant as a
barrier to recruiting and maintaining
construction partners. The current
requirement of a 10-year covenant
strictly binds partner organizations that
may serve low-income populations but
also desire flexibility regarding to whom
they may sell the property in the future.
The term of the covenant was
shortened in this proposed section in
order to accommodate the difficulties
faced by grantees while also ensuring
that the purpose of the program
continues to be met. Reducing the
covenant period supports grantees in
securing worksites where communitybased housing partners and private
property owners are reluctant to agree to
a 10-year covenant requirement. At the
same time, a 5-year term ensures that
housing built or renovated using
YouthBuild funding remains available
solely for the use of low-income and/or
homeless individuals and families for a
period beyond the grantee’s 3-year
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1. Introduction
In this proposed rule, the Department
proposes to revise the ES regulations
that implement the Wagner-Peyser Act
of 1933. These include the provision of
ESs to all job seekers with a particular
emphasis on MSFWs. The proposed rule
will update the language and content of
the regulations to, among other things,
implement amendments made by title
III of WIOA to the Wagner-Peyser Act.
In some areas, these regulations
establish entirely new responsibilities
and procedures; in other areas, the
regulations clarify and update
requirements already established. The
regulations make important changes to
the following components of the ES
system: definitions, data submission,
and ETA standards for agricultural
housing, among others.
2. Background
The Wagner-Peyser Act (WagnerPeyser) of 1933 provided the
Department the authority to establish a
national ES system. The ES system
provides labor exchange services to its
participants and has undergone
numerous changes to align its activities
with broader national workforce
development policies and statutory
requirements. WIOA expands upon the
previous workforce reforms in the WIA
and, among other provisions, identifies
the ES system as a core program in the
one-stop system, embeds ES State
planning requirements into a combined
planning approach, and increases
requirements for the colocation of ES
offices into the one-stop centers.
In 1974, the case National Association
for the Advancement of Colored People
(NAACP), Western Region, et al. v.
Brennan et al, No. 2010–72, 1974 WL
229 (D.D.C. Aug. 13, 1974) resulted in
a detailed court order mandating
various Federal and State actions
(referred to as the Judge Richey Court
Order (Richey Order) in the remainder
of this preamble). The Richey Order
required the Department to implement
and maintain a Federal and State
monitoring and advocacy system and set
forth requirements to ensure the
delivery of ES services, benefits, and
protections to MSFWs on a nondiscriminatory basis, and to provide
such services in a manner that is
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qualitatively equivalent and
quantitatively proportionate to those
provided to non-farmworkers. In 1980,
the Department published regulations at
20 CFR parts 651, 653, and 658 to
implement the requirements of the
Richey Order. Part 653 sets forth
standards and procedures for providing
services to MSFWs and provides
regulations governing the Agricultural
Recruitment System (ARS), a system for
interstate and intrastate agricultural job
recruitment. Part 658 sets forth
standards and procedures for the
administrative handling of complaints
alleging violations of ES regulations and
of employment-related laws, the
discontinuation of services to employers
by the ES system, the review and
assessment of State agency compliance
with ES regulations, and the Federal
application of remedial action to State
agencies. Also in 1980, the Department
separately published amended
regulations at 20 CFR part 654 providing
agricultural housing standards for
MSFWs.
In 1983, the Department published
the regulations at 20 CFR part 652 that
set forth standards and procedures
regarding the establishment and
functioning of State ES operations. Part
652 was amended in 1999 and 2000 to
reflect provisions of WIA. The proposed
rule aligns part 652 with the WIOA
amendments to the ES program, and
with the WIOA reforms to the workforce
system that affect the ES program.
3. Discussion of Proposed 20 CFR Part
651
20 CFR part 651 sets forth definitions
for 20 CFR parts 652, 653, 654, and 658.
The Department proposes to revise and
update the definitions by eliminating
outdated or obsolete definitions and by
adding new definitions as needed.
Throughout these parts it is generally
proposed that the term ‘‘State MSFW
monitor advocate’’ be replaced with the
term ‘‘State monitor advocate’’ (SMA)
because MSFW-related responsibilities
are inherent parts of the SMA position
and ‘‘State monitor advocate’’ is the
commonly used term for the position. It
also is proposed that the term ‘‘local
office’’ be replaced with ‘‘employment
service office’’ or ‘‘one-stop center’’
depending on the context. The
Department also proposes that the
definitions for farmwork, farmworker,
and agricultural worker be streamlined
through reference to the same base line
definition—farmwork. Also, the
definition of farmwork is proposed to be
revised by drawing language from
definitions used in other Department
regulations and eliminating references
to the North American Industry
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Classification System (NAICS).
Additionally, it is proposed that the
definitions found at 20 CFR 652.1 be
moved to 20 CFR 651.10 because it is
the intention of part 651 to include
Wagner-Peyser ES program definitions.
It is proposed that the following
definitions be added as they are
provided in sec. 2 of the Wagner-Peyser
Act, as amended by sec. 302 of WIOA,
and pertain to the scope of definitions
covered by § 651.10: Local Workforce
Development Board, one-stop center,
one-stop delivery system, one-stop
partner, training services, and workforce
development activity. All of these
adhere strictly to WIOA and WagnerPeyser definitions. The Department
notes that the WIOA amendments to the
Wagner-Peyser Act also add the
definitions of CEO, institutions of
higher education, and workplace
learning advisor, but these definitions
are not proposed to be added to the
regulatory text of § 651.10 because the
terms are not used in parts 652, 653,
654, or 658. Finally, sec. 134 of WIOA
merges the categories of core services
and intensive services under WIA into
career services. Since WIOA includes
responsibilities for the Wagner-Peyser
ES in the provision of career services, a
definition for career services has been
proposed to be added.
The definition of act is proposed to be
added to § 651.10, moved from 20 CFR
652.1.
The definition of agricultural worker
is proposed to be eliminated because the
term is synonymous with the definition
of farmworker described in this section.
The proposed regulatory text directs the
reader to the definition of farmworker.
The definition of applicant is
proposed to be eliminated because the
Department proposes to replace the term
with participant as defined in this
section. This change is proposed to
align with the language in WIOA and
conform to reporting requirements
which include all MSFWs who apply
for and/or receive Wagner-Peyser Act
services.
The definitions for Applicant Holding
Office, Applicant Holding State, and
Order Holding Office are proposed to be
added because the terms are used
throughout 20 CFR part 658 and adding
the definitions clarifies the process for
stakeholders. The proposed language in
each definition derives from the
purpose and scope defined in § 653.500.
The inclusion of ‘‘U.S. workers’’ in
these definitions helps to clarify that
ARS is intended for the recruitment of
U.S.-based workers only.
The definition of application card is
proposed to be deleted as the document
is generally no longer used as part of
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Wagner-Peyser Act services. ES offices
have moved from a paper-based system
to an online system and participants
register for services in a variety of ways
electronically.
The definition of career services is
proposed to be added, as discussed
above.
A definition of clearance order is
proposed to be added to distinguish it
from a job order.
The definition of clearance is
proposed to be revised to clearance
system and reflect secs. 3 and 7 of the
Wagner-Peyser Act, as well as 20 CFR
652.3, which describes the basic labor
exchange system as ‘‘a system for
clearing labor between States.’’ The
updated language clarifies that this
clearance system moves job seekers
through an ES office or more than one
such office, depending on the needs of
the individual and the available job or
jobs.
A revised definition of complaint is
proposed to align with language in sec.
2 of the Wagner-Peyser Act, as amended
by WIOA sec. 302, to refer to
‘‘employment service’’ offices rather
than ‘‘job service’’ (JS) offices. The
revised definition specifies that
complaints are representations or
referrals of alleged violations of ES
regulations, Federal laws enforced by
the Department’s WHD or OSHA, or
State or local employment-related laws.
The Department proposes to add
language in the definition clarifying that
the complaints filed are alleging a
violation occurred, rather than
confirming that a complaint represents
an actual violation—which may be
determined after the complaint is under
investigation pursuant to 658 subpart F.
The definition of day haul is
proposed to be deleted as the term is no
longer relevant with the proposed
deletion of 20 CFR 653.105 and 653.106.
A revised definition of Employment
and Training Administration (ETA) is
proposed to conform to the description
of ETA that is currently used.
A definition of employment-related
laws is proposed to be added to conform
to the proposed complaint procedures
in 20 CFR part 658.
A definition of the term Employment
Service (ES) is proposed to replace the
definition for the term Job Service (JS)
in order to conform to the terminology
used in the Wagner-Peyser Act as
amended by WIOA. For this reason,
throughout these proposed regulations,
the term Employment Service (ES)
replaces the term JS.
A definition of Employment Service
regulations (ES regulations) is proposed
to replace the definition of JS
regulations. The purpose of this change
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is to conform to language in the WagnerPeyser Act, as amended by WIOA, and
to include only relevant regulations.
The proposed definition now includes
Federal regulations at 20 CFR parts 651,
652, 653, 654, and 658 and at 29 CFR
part 75, and removes references to 20
CFR parts 620 and 621 because they are
reserved, the reference to 29 CFR part 8
because Employment Service is not
referenced in that part, and 29 CFR part
26 because it does not exist.
The proposed definition of farmwork
will eliminate references to NAICS
codes and include language aligning it
with pertinent definitions in other
Department regulations at 29 CFR
500.20 and 20 CFR 655.103(c). Drawing
language from those definitions clarifies
what is covered by the term farmwork
and slightly expands the term to include
certain occupations and activities
covered by the Department’s Office of
Foreign Labor Certification (OFLC) and/
or WHD. It is also proposed that the
revised definition of farmwork fold in
food ‘‘processing’’ work to align
§ 651.10 with OFLC regulations at 20
CFR 655.103(c)(1) which include food
processing worker in the definition for
agricultural labor or services. Including
food processing work in the revised
definition expands the scope of those
who would be considered farmworkers.
It also allows the Department to
streamline the regulations by
eliminating the separate definition of
migrant food processing worker without
reducing ES coverage or protections of
such workers. The addition of food
processing work to the revised
definition of farmwork also expands the
capability of Wagner-Peyser staff to
provide services to more MSFWs. The
Department will provide guidance to
clarify what is considered food
‘‘processing.’’ Fish farming is added to
conform to sec. 167 of WIOA.
The reference to ‘‘. . . the cultivation
and tillage of the soil, dairying, the
production, cultivation, growing, and
harvesting of any agricultural or
horticultural commodities’’ and ‘‘[t]his
includes the raising of livestock, bees,
fur-bearing animals, or poultry, the
farming of fish, and any practices
(including any forestry or lumbering
operations) performed by a farmer or on
a farm as an incident to or in
conjunction with such farming
operations, including preparation for
market, delivery to storage or to market
or to carriers for transportation to
market’’ is adapted from 20 CFR
655.103(c)(2) which references 29 U.S.C.
203(f), as amended (sec. 3(f) of the
FLSA, as codified). The language ‘‘the
handling, planting, drying, packing,
packaging, processing, freezing, or
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grading prior to delivery for storage of
any agricultural or horticultural
commodity in its unmanufactured
state,’’ is adapted from 20 CFR 655.103
which references sec. 3121(g) of the
Internal Revenue Code of 1954 (26
U.S.C. 3121(g)). The language
‘‘agricultural commodities means all
commodities produced on a farm
including, but not limited to, crude gum
(oleoresin) from a living tree, and the
following products as processed by the
original producer of the crude gum
(oleoresin) from which derived: gum
spirits of turpentine and gum rosin’’ is
taken from OFLC 20 CFR 655.103 and
aligns with WHD 29 CFR 500.20. Under
the proposed definition, the activities
and services currently included by
reference to NAICS codes 111, 112, 115
will still be included whether explicit in
the definition or through Department
guidance, and those activities and
services currently excluded by reference
to NAICS codes 1152 and 1153 will still
be excluded, excepting the proposed
addition of fish farming. The NAICS
reference to code 1125 will be covered
through Department guidance as it
relates to fish farming.
The Department anticipates the
following impact of expanding the
definition of farmworker and aligning it
with the WHD and OFLC definitions: (1)
State agency employees will more easily
distinguish MSFWs for reporting
purposes; (2) the proposed definition
will also align with that of the proposed
updated definition under 20 CFR part
685 for the NFJP; (3) more farmworkers
will be served as such under WagnerPeyser because fewer people would be
excluded under the expanded
definition; (4) the Department will
maintain consistency with the intent of
the Richey Order to update data
gathering systems to accurately reflect
services delivered; and (5) the
Department’s data reporting will
improve because under the different
regulations, the Department’s agencies
will utilize basically the same definition
for farmworker and therefore will
accurately reflect the number of MSFWs
identified across all programs. At the
end of the proposed definition, the
Department proposes to add a sentence
to include any service or activity
covered under 20 CFR 655.103(c)
(definition of agricultural labor or
services) and/or under 29 CFR 500.20(e)
(agricultural employment) and/or
through official published Department
guidance, such as a TEGL, to allow for
other current or future types of
farmwork to be included.
A revised definition of farmworker is
proposed to conform to the proposed
definition of farmwork in this section.
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A definition of field checks is
proposed to be added to § 651.10
because the term is referenced in 20
CFR 653.503 but was previously
undefined. Adding the definition
clarifies the meaning for those who
conduct or receive field checks.
A definition of field visits is proposed
to be added to § 651.10 because the term
is referenced in 20 CFR 653.108 but was
previously undefined. Adding the
definition clarifies the meaning for
those who conduct or receive field
visits.
The definition of full application is
proposed to be deleted because State
Workforce Agencies (SWAs) generally
do not utilize the full or partial
application process. Instead,
participants submit resumes or other
information to register in the SWA
network.
The definition of Governor is
proposed to be added to § 651.10,
moved from 20 CFR 652.1. Additionally,
the Department proposes to add
reference to the outlying areas in the
definition to be clear that their chief
executives are included when this part
references a Governor.
The definition of identification card is
proposed to be deleted as the document
is no longer utilized as part of WagnerPeyser services. SWAs have moved from
paper-based to electronic-based systems
and participants often log in using
whatever information is required for
that particular system.
A definition of interstate job order is
proposed to be added to § 651.10
because it is referenced in the ES
regulations but was previously
undefined. Adding the definition
clarifies the difference between
interstate and intrastate job orders.
A revised definition of intrastate
clearance order is proposed to conform
to the ‘‘employment service’’
terminology used in the Wagner-Peyser
Act as amended by WIOA. Interstate or
intrastate clearance order means an
agricultural job order for temporary
employment describing one or more
hard-to-fill job openings, which an ES
office uses to request recruitment
assistance from other ES offices.
The definition of job bank is proposed
to be deleted because the system, as it
was previously defined, no longer
exists. Now, most job openings are
posted on internet-based systems.
The definition of job development is
proposed to be slightly revised to refer
to an ‘‘employment service office’’
rather than a ‘‘local office.’’
The definition of Job Information
Service (JIS) is proposed to be deleted as
resource centers replace JIS areas inside
one-stop centers.
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In the definition of job opening, it is
proposed that the term applicants be
replaced with the term participants to
be consistent with the replacement term
applicant in this section.
A definition of job order is proposed
to be added to clarify the difference
between a job order and a clearance
order. The language for this definition is
derived from 20 CFR 655.5.
The definition of job referral is
proposed to be revised to include ‘‘or for
a potential job’’ because the current
definition is limited to the availability
of a specific job and this revision opens
job referrals to include situations that
are responding to the possibility of
employment.
A revised definition of labor market
area is proposed to be revised to
conform to the definition in sec. 3 of
WIOA.
The definition of Local Office
Manager is proposed to be revised to
conform to the ‘‘employment service’’
terminology used in the Wagner-Peyser
Act as amended by WIOA.
The definition of Local Workforce
Development Board is proposed to be
added to conform with sec. 2 of the
Wagner-Peyser Act, as amended by
WIOA.
The definition of migrant farmworker
is proposed to be revised to conform to
the updated definition of farmworker.
The definition of migrant food
processing worker is proposed to be
synonymous with the proposed
definition of migrant farmworker.
Within the definition of MSFW it is
proposed that ‘‘migrant food processing
worker’’ be deleted to conform to the
above proposed definition of migrant
food processing worker. No reduction in
coverage is intended by this change.
The definitions of one-stop center,
one-stop delivery system, and one-stop
partner are proposed to be added to
§ 651.10 to conform with sec. 2 of the
Wagner-Peyser Act, as amended by
WIOA.
The definition of O*NET–SOC is
proposed to be revised to clarify that
O*NET SOC codes are based on, but
more detailed than, Standard
Occupation Codes used across Federal
statistical agencies.
The definition of Order Holding
Office is proposed to be added for
reasons explained above.
The definition of onsite review is
proposed to be added because these
reviews are mandated under the Richey
Order and are found throughout the
regulations at 20 CFR parts 653 and 658.
The language for the proposed
definition is taken from 20 CFR
653.108(g).
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It is proposed that the definition of
outreach contact be added to § 651.10
for clarification. The language for the
definition is taken from § 653.107.
The definition of partial application
is proposed to be deleted because it is
generally no longer used by ES offices
or SWAs. Instead, participants submit
resumes or other information to register
in the SWA network.
The definition of participant is
proposed to be added to replace the
definition of applicant, as discussed
above. This definition only applies to
the Wagner-Peyser regulations at parts
651, 652, 653, and 658. Proposed
§ 677.150(a) includes a separate,
narrower definition of ‘‘participant’’ for
purposes of performance accountability
under sec. 116 of WIOA and 20 CFR
part 677. Therefore, an individual who
is considered a participant for the
purpose of these Wagner-Peryser
regulations would not necessarily be
considered a participant for
performance accountability purposes.
The definition of Program Budget
Plan (PBP) is proposed to be deleted
because the PBP is obsolete and the
amendment to sec. 8 of Wagner-Peyser
now calls for States to submit Unified or
Combined State Plans.
The definition of RA is proposed to be
deleted because the definition for
Regional Administrator with the
appropriate acronym is already
described in this section.
The definition for rural area is
proposed to be eliminated because the
term is not used at 20 CFR parts 652,
653, 654, or 658 and is therefore not
necessary to define in this section.
The definition of seasonal farmworker
is proposed to be revised to mean an
individual who, over the past 12
months, has been employed in
farmwork of a seasonal or other
temporary nature. This proposed
definition seeks to simplify and clarify
the meaning of seasonal farmworker,
and conform to the definitions used by
the Department’s WHD for seasonal
agricultural workers under 29 CFR part
500, and the OFLC under 20 CFR part
655. Additionally, the Department
proposes to retain the 12-month period
originally used in the definition of
seasonal farmworker at 20 CFR 651.10
to minimize the time period that an
individual could assert that he/she is a
seasonal farmworker. The Department
anticipates that this updated definition
will more accurately reflect the total
number of seasonal farmworkers that
participate in the ES system. The
Department also anticipates that ES staff
will more easily be able to identify
seasonal farmworkers for reporting
purposes.
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In the definitions of Significant
MSFW Local Offices and Significant
Bilingual MSFW Local Offices, the
references to ‘‘local offices’’ are
proposed to be replaced with ‘‘one-stop
centers’’ because the WIOA amendment
to the Wagner-Peyser Act requires
colocation of Wagner-Peyser ESs in a
one-stop center. Additionally,
expanding the scope of the term will
help States determine not only at which
one-stop centers ESs must be
sufficiently staffed to meet the needs of
MSFWs, but also will identify one-stop
centers that need to consider the needs
of a significant number of MSFWs who
do not speak English, in order to meet
the requirements for making services
accessible, as described in § 678.800.
This also helps the Department conform
to the intent of the Richey Order to
serve MSFWs on a qualitatively
equivalent and quantitatively
proportionate basis. The term bilingual
is proposed to be replaced with
multilingual in the latter title to conform
to the current trend of MSFWs speaking
additional languages other than English
and/or Spanish. Also, the references to
‘‘applicants’’ are proposed to be
replaced with ‘‘participants,’’ to
conform to the proposed changes in
these definitions.
The definition of Significant MSFW
States remains unchanged; however, the
reference to the Department
organizational unit ETA has been
replaced with the Department to be
consistent with other references
throughout the section.
The definition of State Administrator
is proposed to be revised to change
‘‘State Employment Security Agency’’ to
‘‘State Workforce Agency’’ to reflect
language used in WIOA title I.
The definition of State Workforce
Agency (SWA) is proposed to be revised
to conform to sec. 2 of the WagnerPeyser Act, as amended by title III of
WIOA. The language ‘‘formerly State
Employment Security Agency or SESA’’
is proposed to be deleted because the
SESA terminology is outdated and no
longer needs reference.
The definition of State Workforce
Development Board (State Board) is
proposed to be added to § 651.10,
moved from 20 CFR 652.1 and updated
from the former text, which defined
State Workforce Investment Board.
The definition of Supply State(s) is
proposed to be added to clarify its
meaning under the ARS.
The definition of supportive services
is proposed to be revised to conform to
the definition for ‘‘supportive services’’
in sec. 3 of WIOA and to make clear that
supportive services are also available to
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individuals participating in activities
funded by the Wagner-Peyser Act.
The definition of tests is proposed to
be deleted because the Department does
not offer tests to ES participants.
The definition of training services is
proposed to replace the definition of
training, and the proposed definition
references the services provided under
WIOA sec. 134(c)(3).
The definition of transaction is
proposed to be deleted because the term
is not used in the relevant sections
under this chapter.
A definition of unemployment
insurance claimant is proposed to be
added in this section to conform to the
emphasis on serving this population in
the WIOA amendments to secs. 7(a)(1)
and (3) of the Wagner-Peyser Act.
The definition of vocational plan is
proposed to be deleted because the
Wagner-Peyser Act does not require the
establishment of such plans for job
seekers in the ES system.
The definition of WIOA is proposed to
be added to § 651.10, moved from 20
CFR 652.1 and updated. Section 652.1
defines WIA.
The definitions of Workforce and
Labor Market Information (WLMI) and
Workforce Labor Market Information
System (WLMIS) are proposed to
conform to the provisions in sec. 308 of
the Wagner-Peyser Act.
The definition for working days is
proposed to be added to 20 CFR 651
because it is originally located in 20
CFR 653.501 and fits more appropriately
under part 651.
A definition of work test is proposed
to be added in this section to ensure that
individuals who are eligible for UI
benefits meet continued eligibility
requirements with respect to work
search. The Wagner-Peyser Act’s
requirements for administering the work
test are further discussed in 20 CFR
652.210.
N. Part 652—Establishment and
Functioning of State Employment
Services
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Section 1. Introduction
The Wagner-Peyser Act of 1933
established the one Act ES, which is a
nationwide system of public
employment offices amended in 1998 to
make ES part of the one-stop delivery
system established under WIA. ES seeks
to improve the functioning of the
nation’s labor markets by bringing
together individuals seeking
employment with employers seeking
workers.
The amended Wagner-Peyser Act
furthers longstanding goals of closer
collaboration with other employment
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and training programs by mandating
colocation of ES offices with one-stop
centers; aligning service delivery in the
one-stop delivery system; and ensuring
alignment of State planning and
performance measures in the one-stop
delivery system. Other new provisions
are consistent with long-term
Departmental policies, including
increased emphasis on reemployment
services for UI claimants (sec. 7(a));
promoting robust WLMI; the
development of national electronic tools
for jobseekers and businesses (sec. 3(e));
dissemination of information on best
practices (sec. 3(c)(2)); and professional
development for ES staff (secs. 3(c)(4)
and 7(b)(3)).
2. Subpart A—Employment Service
Operations
This subpart includes an explanation
of the scope and purpose of the ES
system, the rules governing allotments
and grant agreements, authorized
services, administrative provisions, and
rules governing labor disputes. The
proposed rule makes few changes in
subpart A.
Section 652.1 Introduction
This section introduces the WagnerPeyser Act regulations, as amended by
WIOA. Therefore, the Department
proposes to delete paragraph (b) of
§ 652.1 and change the title of the
section from ‘‘Introduction and
definitions’’ to ‘‘Introduction.’’
Section 652.2 Scope and Purpose of
the Employment Service System
The Department proposes no changes
in this section, which briefly describes
the public labor exchange system.
Section 652.3 Public Labor Exchange
Services System
This section explains the minimum
services that must be offered by the
public labor exchange system. The
Department proposes adding paragraph
(f) to align the title to the changes in
WIOA and cite to sec. 134(c)(2)(A)(iv) of
WIOA.
The Department proposes to align the
Wagner-Peyser definitions of labor
exchange services with those described
under WIOA. The Department is seeking
public comments on any issues or
challenges in aligning labor exchange
services described under WIOA with the
labor exchange services provided by the
ES.
Finally, the Department proposes to
add to § 652.3(a) a clause to implement
the emphasis the Act, as amended,
places on national electronic tools
(WIOA sec. 303(c), amending sec. 3(e) of
Wagner-Peyser). The proposed clause,
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which would clarify that each State’s
obligation to assist jobseekers includes
promoting their familiarity with the
Department’s electronic tools, is
designed to improve customer access to
labor exchange and workforce
information.
The statutory provision recognizes the
Department’s longstanding efforts in
this area. Since the 1990s, the
Department has greatly expanded its
national electronic tools to enhance
short-term labor exchanges and support
longer-term career aspirations for
multiple audiences: Jobseekers;
employers; students; employment and
training staff; educators and guidance
counselors; Federal, State and local
policy-makers and planners; CBOs;
librarians; and other individuals and
entities that assist with the job search
and career needs of Americans. The
Department offers electronic tools
through such Web portals as
CareerOneStop
(www.careeronestop.org); O*NET
OnLine (www.onetonline.org) and
O*NET’s My Next Move
(www.mynextmove.org); and the WLMI
provided through the BLS (www.bls.gov)
and the U.S. ETA’s Labor Market
Information Community of Practice
(https://winwin.workforce3one.org/
page/home).
Section 652.4 Allotment of Funds and
Grant Agreement
The Department proposes no changes
in this section, which ensures that
allotment information is publicly
available with sufficient notice to allow
public comment and to resolve
complaints, and that grant agreements
with the States meet all applicable
statutes and regulations.
Section 652.5 Services Authorized
The Department proposes only minor
changes conforming to WIOA in this
section, State expenditures. Specifically,
the proposed regulations substitutes
‘‘funds’’ with ‘‘sums’’ and substitutes
‘‘basic labor exchange elements’’ with
‘‘minimum labor exchange elements.’’
Both changes were made to align with
the Act as amended.
Section 652.8 Administrative
Provisions
This section covers administrative
matters, including financial and
program management information
systems, recordkeeping and retention of
records, required reports, monitoring
and audits, costs, disclosure of
information, and sanctions. The
Department proposes to eliminate
paragraph (d)(6) of this section which
addressed amortization payments to
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States which had independent
retirement plans in their State ES
agencies prior to 1980. This paragraph
is no longer applicable to any State and
no State may revert back to a retirement
system where these provisions apply.
The Department is also proposing to
change the record retention
requirements for work applications and
job orders from 1 year to 3 years in order
to align with other Wagner-Peyser
record retention requirements. Finally,
the Department proposes to amend
paragraph (f) to require that financial
audits be conducted under the same
requirements that apply to audits under
WIOA at 20 CFR 683.210.
Section 652.9 Labor Disputes.
This section is designed to preserve
the neutrality of the ES in the event of
a labor dispute, such as a strike. The
Department proposes no changes in this
section, as WIOA made no amendments
to the Wagner-Peyser Act relevant to
this section.
system. This subpart addresses how the
ES is to fulfill its mission of providing
labor exchange services to job seekers
and businesses in the one-stop delivery
system.
Section 652.200 What is the Purpose
of This Subpart?
The general purpose of this subpart is
to provide guidance for implementing
Wagner-Peyser services within the onestop delivery system.
Section 652.201 What is the role of the
State agency in the one-stop delivery
system?
This section emphasizes the
leadership role played by the State in
the one-stop system, including the
delivery of Wagner-Peyser services. The
Department proposes changing
‘‘Workforce Investment Board’’ to
‘‘Workforce Development Board,’’ to be
consistent with WIOA’s terminology.
Section 652.202 May local
Employment Service Offices exist
outside of the one-stop service delivery
system?
Section 652.100 Services for Veterans
The Department proposes to amend
this section to clarify that veterans
receive priority of service for all
Department-funded employment and
training programs, as described in 20
CFR part 1010. The proposed
amendment also clarifies that the
Department’s Veterans’ Employment
and Training Service (VETS)
administers the Jobs for Veterans State
Grants (JVSG) program and other
activities and training programs which
provide services to specific populations
of eligible veterans.
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3. Subpart B—Services for Veterans
This subpart merely refers the reader
to the relevant regulatory section
governing services to veterans.
The Department is proposing to delete
paragraph (b) of this section to align
with WIOA’s approach to colocation of
services and prohibition against standalone employment service offices.
Additionally, the Department proposes
to change the text of what was
paragraph (a) to provide a clear
statement that ES offices must be
collocated in one-stop centers, as
required by WIOA. WIA strongly
encouraged the colocation of ES and
one-stop offices, but allowed some
stand-alone ES offices under limited
circumstances. Section 303(d) of WIOA
modified sec. 3(d) of Wagner-Peyser to
eliminate these exceptions and made
colocation mandatory. Therefore, standalone ES offices are no longer
permissible, as explained in §§ 678.310–
678.315.
Colocation is intended to achieve
several purposes: improved service
delivery and coordination, less
duplication of services, and greater
access to services in underserved areas.
4. Subpart C—Wagner-Peyser Act
Services in a One-Stop Delivery System
Environment
This subpart discusses State agency
roles and responsibilities, rules
governing ES offices, the relationship
between the ES and the one-stop
system, required and allowable WagnerPeyser services, universal service access
requirements, provision of services and
work test requirements for UI claimants,
State planning, and State merit staffing
requirements.
WIOA ensures the ES’s key role in the
one-stop delivery system by making it
one of the core workforce programs. The
ES must be a part of the State planning
process, collocated with the one-stop
delivery system, and must align its
service delivery and performance
measures with the rest of the one-stop
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Section 652.203 Who is responsible for
funds authorized under the Act in the
workforce investment system?
The Department proposes no changes
in this regulation, which stipulates that
the State agency is responsible for all
Wagner-Peyser funds.
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Section 652.204 Must funds
authorized under the Act (the
Governor’s reserve) flow through the
one-stop delivery system?
This section clarifies that the
Governor’s reserve funds may or may
not be delivered through the one-stop
system. The Department proposes to
identify the services in sec. 7(b) of the
Act that these funds must be used to
provide. WIOA does not change these
services; however, it is helpful to list the
services in this section. As required by
sec. 7(b) of the Act, the services are:
performance incentives, supporting
exemplary models of service delivery,
and services for groups with special
needs.
Section 652.205 May funds authorized
under the Act be used to supplement
funding for labor exchange programs
authorized under separate legislation?
The Department proposes only minor
nomenclature changes in this section,
which explains under what conditions
funds under secs. 7(a) or 7(b) of WagnerPeyser may be used to provide
additional funds to other programs.
Section 652.206 May a State use funds
authorized under the Act to provide
applicable ‘‘career services,’’ as defined
in the Workforce Innovation and
Opportunity Act?
The Department is proposing in this
section to align Wagner-Peyser service
delivery with the service delivery
changes in WIOA. Under WIA, nontraining services were generally
identified as either ‘‘core’’ or
‘‘intensive’’ services. WIOA has
removed the terms ‘‘core’’ and
‘‘intensive’’ and these services are now
called ‘‘career services.’’ The primary
goal of the change to ‘‘career services’’
was to eliminate any sequencing of
service requirements and to ensure
participants had a broad array of
services available to them based on a
participant’s employment needs.
Proposed § 678.430 organizes the
WIOA career services into three
categories: (1) Career services that must
be made available to all participants; (2)
career services that must be made
available if deemed appropriate and
needed for an individual to obtain or
retain employment; and (3) follow-up
activities. The proposed regulation
respectively designates these categories
as basic career services (§ 678.430(a)),
individualized career services
(§ 678.430(b)), and follow-up services
(§ 678.430(c)).
Labor exchange services, which are
the primary services provided by the ES,
fall under the ‘‘basic career services’’
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identified in proposed § 678.430(a) and
listed in sec. 134(c)(2)(A) of WIOA. This
section is designed to provide that
Wagner-Peyser staff must use funds
authorized by sec. 7(a) of the Act to
provide the basic career services.
Individualized career services are
identified in proposed § 678.430(b) and
listed in sec. 134(c)(2)(A)(xii) of WIOA.
These services involve more dedicated
staff time to provide. These services are
similar to intensive services and they
may be provided as appropriate. The
primary services the ES provides are
labor exchange services, which are
identified by the Department as basic
career services. The Department
proposes that the ES staff may also
provide individualized career services,
paid for from funds authorized under
sec. 7(a) of the Act, in a manner
consistent with the requirements of the
Wagner-Peyser Act. Additionally, the
Department wishes to clarify that the
funds can be used to provide any of the
individualized services defined in
proposed § 678.430(b) and sec.
134(c)(2)(A)(xii) of WIOA; there is no
limit that the funds can only be used for
particular individualized services.
However, these Wagner-Peyser funds
may not be used to provide training
services.
The Department is seeking comments
on how services provided by the ES can
be more aligned with other services in
the one-stop delivery system and ensure
participants can receive seamless
services from the ES to other programs
under WIOA.
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Section 652.207 How does a State
meet the requirement for universal
access to services provided under the
Act?
This section provides States
discretion in meeting universal access to
service requirements, and explains the
requirements, including how those
services must be delivered. The section
specifies that labor exchange services
may be provided through self-service,
facilitated self-help service, and staffassisted services. The Department is
proposing to include ‘‘virtual services’’
as a type of self-service. The Department
recognizes the valuable virtual and
online services that States provide
through the ES, and seeks to include
these services as self-services.
The Department also proposes
changes in this section to tie it to the
mandatory services described in
§ 652.206. The revised provision would
replace the reference to core and
intensive services with reference to
career services made mandatory by an
amended § 652.206.
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Section 652.208 How are applicable
career services related to the methods of
service delivery described in this part?
This section explains how career
services may be delivered to meet the
requirements for access described in
proposed § 652.207(b)(2). The
Department proposes to include ‘‘virtual
services’’ as a type of self-service
provided by the ES, recognizing these
important services provided by States.
The Department is also proposing to
replace the reference to ‘‘core services
and intensive services’’ with a reference
to ‘‘career services’’ per WIOA.
Section 652.209 What are the
requirements under the Act for
providing reemployment services and
other activities to referred
unemployment insurance claimants?
The Wagner-Peyser Act authorizes
funding for States to deliver a wide
array of labor exchange services to
jobseekers. This regulation clarifies the
required and allowable Wagner-Peyser
services to UI claimants, as a subset of
the broader ES beneficiary population.
WIOA added language to sec. 7(a) of
the Wagner-Peyser Act reemphasizing
the use of funds to support
reemployment and related services to UI
claimants. These changes strengthen the
connectivity between the ES and the UI
systems, and broaden opportunities for
these systems to help UI claimants
return to employment as quickly as
possible. Coordination of labor
exchange services and UI claimant
services is essential to ensure an
integrated approach to reemployment
strategies. Wagner-Peyser funds may
also be used to administer the work test
for the State unemployment system for
UI eligibility assessments. Additionally,
the ES may provide UI claimants with
referrals to, and application assistance
for, education and training resources
and programs as appropriate. Such
resources include those provided
through the Higher Education Act and
State-specific educational assistance
programs, veterans’ educational
assistance programs, WIOA education
and training programs, and VR services.
The Department proposes two types
of changes in § 652.209: one to clearly
require services to UI claimants, and the
other to implement new statutory
provisions. The proposed text deletes
the existing § 652.209(a) language that
services must be provided ‘‘to the extent
funding is available,’’ because it is
implied and the Department encourages
reemployment assistance to UI
claimants.
The proposed text includes in
§ 652.209(b)(2) a reference to
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‘‘conducting eligibility assessments’’ to
conform with sec. 7(a)(3)(F) of the
Wagner-Peyser Act, as amended by
WIOA, and includes a requirement that
where applicable, UI claimants must be
registered for ESs in accordance with
the UC law of the State with which they
file their claim. The States may use
Wagner-Peyser funds to pay for
eligibility assessments, which is a
required activity that must be made
available when appropriate.
Additionally, in § 652.209(b)(3) the
Department proposes to require that
States provide referrals and application
assistance to UI claimants, consistent
with the new statutory language in sec.
7(a)(3)(G) of the Wagner-Peyser Act and
includes a reference to the Post-9/11 GI
Bill which staff may also refer
participants to as well as other veterans
educational assistance.
Section 652.210 What are the Act’s
requirements for administration of the
work test, including eligibility
assessments, as appropriate, and
assistance to unemployment insurance
claimants?
This section clarifies the requirement
for administration of the work test to UI
claimants. The proposed changes
provide more specificity about required
services.
The Department proposes to include a
reference to ‘‘conducting eligibility
assessments’’ to conform with sec.
7(a)(3)(F) of the Wagner-Peyser Act. The
States may use Wagner-Peyser funds to
pay for eligibility assessments, which
are a required reemployment activity
that must be made available when
appropriate. Proposed new language
was also added to § 652.210(b)(3) to
ensure that ES staff provide information
about UI claimants’ ability or
availability for work, or the suitability of
work offered to them, to UI staff.
Sharing such information with UI staff
will help accelerate claimants’ return to
employment.
Section 652.211 What are State
planning requirements under the Act?
The Department is proposing to
remove the planning provisions of this
part of the regulation, including the text
in §§ 652.211 through 652.214, because
the ES is a core program under WIOA
and falls under both the unified and
combined planning requirements. This
section has been amended to simply
provide a citation to the State planning
requirements under WIOA.
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Section 652.215 Do any provisions in
the Workforce Innovation and
Opportunity Act change the
requirement that State merit staff
employees must deliver services
provided under the Act?
This section stipulates that only State
merit staff may provide Wagner-Peyser
services. The only change proposed in
this section is to change ‘‘WIA’’ to
‘‘WIOA’’ in the section question; the
remainder of the text has not changed
from the existing regulation. The
Department has followed this policy
since the earliest years of the ES, in
order to ensure minimum standards for
the quality of the services provided. A
1998 U.S. District Court decision,
Michigan v. Herman, 81 F. Supp. 2nd
840 (https://law.justia.com/cases/
federal/district-courts/FSupp2/81/840/
2420800/) upheld this policy. State
merit staff employees are directly
accountable to State government
entities, and the standards for their
performance and their determinations
on the use of public funds require that
decisions be made in the best interest of
the public and of the population to be
served. State merit staff meet objective
professional qualifications and provide
impartial, transparent information and
services to all customers while
complying with established government
standards.
Section 652.216 May the one-stop
operator provide guidance to State merit
staff employees in accordance with the
Act?
This section clarifies that ES staff may
receive guidance from a one-stop
operator about the provision of labor
exchange services, but that all personnel
matters remain under the authority of
the State agency. The only change
proposed in this section is to add a
reference to proposed § 678.500, which
provides the requirements for the local
MOU. The Department seeks comment
on whether any other changes are
needed to allow the one-stop operator to
ensure the efficient and effective
operation of the one-stop center.
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5. Subpart D—Workforce and Labor
Market Information
Secretary of Labor’s role concerning
the Workforce and Labor Market
Information System (WLMIS). The
Wagner-Peyser Act, as amended by and
integrated with WIOA, envisions a
robust WLMIS that is a critical
underpinning for a wide array of
workforce functions, including: (1)
Supporting State and regional planning
of workforce strategies that provide a
pipeline of workers with in-demand
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skills and drive economic growth and
development; (2) delivery of quality
labor market and career information that
enables workforce professionals to
provide quality career counseling; and
(3) enabling the workforce system’s
customers to make informed career and
service delivery choices. New
provisions in Wagner-Peyser provide for
a collaborative process, led by the
Secretary of Labor in partnership with
Federal agencies, the newly created
Workforce Information Advisory
Council (WIAC), and States, to develop
and implement a strategic plan that
continuously improves the labor market
and workforce information available
through the workforce system. The Act
describes certain key components of the
WLMIS and commits the Secretary of
Labor to oversee and ensure the
competent management of the system.
Wage records are a critical data
source for WLMIS. When combined with
data from other sources, wage records
produce a wide array of labor market
information used to inform economic
development, support career
counseling, identify training needs,
inform industry sector workforce
strategies, and assist with other facets of
a job-driven workforce system.
For example, through agreements
with States, wage records are used to
produce the following aggregate reports
and data that support the objectives
listed above:
• The United States Census Bureau’s
Longitudinal Employer-Household
Dynamics Program including the:
Æ Quarterly Workforce Explorer, that
provides worker residence and work
place location data and critical
employment and business related data
including hiring, worker separations,
and turnover rates, at State, county,
metro and Workforce Development
Board areas;
Æ OnTheMap, that provides
geographic information system (GIS)
capabilities to map worker origin and
destination information on detail map
overlays in customized geographic areas
at a Census block level; and
Æ OnTheMap for Emergency
Management tools, that provides GIS
capabilities to map natural disasters
including fire, flood, and storm and the
impact on workers and businesses in
customized geographic areas at the
Census block level area.
• The DOL’s Bureau of Labor
Statistics Quarterly Census of
Employment and Wages, which
provides a complete count of
employment and wages, classified by
industry and based on quarterly reports
filed by employers for over 9 million
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establishments subject to
unemployment insurance laws.
Continuous improvement, in part
through consultation. The Act requires
the Secretary of Labor to oversee, and
the States to pursue actively, the
‘‘continuous improvement’’ of the
WLMIS.3 The Act, throughout, describes
components of the system and ways in
which the Secretary and the States must
act to discharge their duties under the
Act, including their duties related to
‘‘continuous improvement.’’ Proposed
§ 652.300(a) is a general statement
implementing this requirement. It
provides, as does the Act, that the
Secretary must oversee the
development, maintenance, and
continuous improvement of the WLMIS.
The reference to Wagner-Peyser sec. 15
simply signals the section where the
WLMIS is defined; the provision does
not mean to state that sec. 15 is the only
section where the duty of continuous
improvement is created.
Proposed § 652.300(b) implements the
Secretary’s more specific duties with
regard to the WLMIS, as they are
described in Wagner-Peyser sec.
15(b)(2). The proposed regulation
closely tracks the statute with respect to
duties related to collection, analysis,
and dissemination of workforce and
labor market information. These
include, for example, the duty to
eliminate gaps and duplication in
statistical undertakings. The Act also
identifies certain activities that should
be considered to improve data sources.
For example, sec. 15(b)(2) requires the
Secretary, to ensure that data collected
is consistent with appropriate Bureau of
Labor Statistics standards and
definitions and understandable to users
of such data; and to develop consistent
procedures and definitions for use by
States in the collection of data. Earlier,
in sec. 15(a)(1)(E), the Act requires that
the WLMIS include ‘‘procedures to
support standardization and aggregation
of data from administrative reporting
systems.’’
Recognizing the breadth of these and
other requirements it imposes on the
Secretary, the statute—at sec. 15(b)(2)—
establishes an expectation that the
Secretary will discuss and fulfill the
requirements in active collaboration
with the WIAC, Federal agencies, and
States. Proposed § 652.302(b)
incorporates this consultation
requirement, while reserving our
authority to consult with other
stakeholders. To the extent that the data
3 Based on internal Department of Labor data.
This figure includes the 50 States, the District of
Columbia, American Samoa, Guam, the Northern
Mariana Islands, Puerto Rico, and the U.S. Virgin
Islands.
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and tools used in the context of the
WLMIS are owned by other Federal
agencies, such as LEHD data which is
owned by the Census Bureau subject to
the authority of title 13 of the U.S. Code,
the Secretary of Labor will work
collaboratively with the owners of such
data or data tools to coordinate the use
of those tools with the WLMIS and to
identify potential enhancements, but the
Secretary of Labor has no direct
authority with regard to those tools.
Proposed § 652.300 works in
conjunction with certain amendments to
20 CFR part 651. In order to clarify the
Secretary’s jurisdiction with respect to
the Employment Service and related
workforce systems—in particular, with
respect to responsibilities related to
‘‘continuous improvement,’’
performance assessment, and collection
and management of information—the
Department proposes new regulatory
definitions for ‘‘Workforce and Labor
Market Information’’ (WLMI) and
‘‘Workforce and Labor Market
Information System’’ (WLMIS). Those
proposed definitions appear in part 651.
Definition of ‘‘wage record.’’ The
proposed definition of WLMI that
appears in part 651 lists numerous
components, including ‘‘wage records.’’
The Wagner-Peyser Act does not define
‘‘wage records.’’ To clarify the
Secretary’s responsibilities with respect
to that component of WLMI, however,
the Department proposes to define
‘‘wage records’’ in a new section under
part 652, § 652.301.
Proposed § 652.301 defines ‘‘wage
records’’ for purposes of the WagnerPeyser Act, including amendments to
Wagner-Peyser relating to the WLMIS.
The Department proposes to define
‘‘wage record,’’ for these purposes, as
records that contain ‘‘wage information’’
as defined in the Department
regulations at 20 CFR part 603. Part 603,
among other things, implements the
requirements of the Social Security Act
governing the now-established Income
and Eligibility Verification System
(IEVS). Federal law requires each State
participating in the Federal-State
unemployment compensation (UC)
program to have in place an IEVS
through which it exchanges information
with certain Federal agencies to help
determine applicants’ eligibility and
amount of benefits for UC and several
Federal financial assistance programs.
(Social Security Act (SSA) secs. 303(f),
1137; 20 CFR 603.20–603.23.)
As part of its IEVS, every State must
collect certain information—including
‘‘wage information’’ as defined in 20
CFR 603.2(k) and referred to here as
‘‘wage records’’—from applicants for
these programs, employers in the State,
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or relevant State or Federal agencies.
(SSA sec. 1137.) In the context of
establishing confidentiality
requirements for State UC data, the
Federal regulation at 20 CFR 603.2(k)
defines ‘‘wage information’’ to mean
information in the records of a State UC
agency, and information reported under
provisions of State law that meets the
requirements of an IEVS, that may fall
into any one of three categories: (1)
‘‘wages paid to an individual’’; (2) the
individual’s SSN(s); and (3) the name,
address, State, and FEIN of the
employer that paid the wages. (20 CFR
603(k)) Normally, a State collects this
information through the quarterly ‘‘wage
reports’’ employers file with the State
(referred to in 20 CFR 603.2(j) and SSA
sec. 1137(a)(3)). States may, based on
their need, require employers to report
additional data—beyond these three
categories—in their wage reports,
whether for unemployment insurance
purposes or for other purposes. It is the
combination of these data collections
that are referred to, broadly, as ‘‘wage
records.’’
The new, proposed definition of
‘‘wage records’’ in § 652.301 helps meet
the legislative intent for consistency by
standardizing, the definition of ‘‘wage
records’’ across regulations governing
WIOA activities, Wagner-Peyser
activities, and disclosure of confidential
UC information. Part 603—which uses
the term ‘‘wage information’’ is the basis
for the definition of ‘‘wage records’’ in
proposed § 652.301—in part serves to
allow States to disclose specific
confidential wage information to help
meet Federal reporting requirements for
certain programs and activities funded
under WIOA and Wagner-Peyser. As
proposed, the definition in § 652.301 is
also consistent with the definition of
‘‘quarterly wage record information’’
under 20 CFR 677.175,4 which requires
States to use essentially the same data
elements in ‘‘wage records’’ to formally
assess their performance for purposes of
performance reporting. (For additional
explanation of the relationship between
these three sections, and the distinction
between the provisions authorizing
State use of certain wage data and those
authorizing States to disclose essentially
the data for purposes of Federallyrequired performance reporting, see the
Department’s proposal to amend its
regulations at 20 CFR part 603,
accompanying this proposal to amend
the Wagner-Peyser regulations.)
Secretary of Labor’s role concerning
wage records under WIOA. Proposed
§ 652.302 explains how the Secretary’s
responsibilities concerning the WLMIS
4 Ibid.
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apply to the wage record component of
WLMI. That is, the proposed regulation
reflects how the Department would
apply the broader Wagner-Peyser
expectations for improvement of labor
market data sources, including those
related to consistency and
standardization, to one specific source—
wage records.
Proposed § 652.302(b) would clarify
that pursuant to his/her responsibility to
oversee the development, maintenance,
and continuous improvement of the
WLMIS, including the numerous duties
set forth in the Act and restated
throughout this preamble, the Secretary
will seek to develop standardized
definitions of the data elements in wage
records, and improved processes and
systems for the collection of and
reporting of wage records. As proposed,
this provision would authorize the
Secretary to develop common data
definitions and standardized reporting
formats that are consistent across States.
Proposed § 652.302(a) would work in
conjunction with the proposed
definitions of WLMI and WLMIS in part
651 to clarify that wage records are, in
fact, included in and source data for
WLMI.
Consistency of wage records. On the
matter of wage records, a number of
areas have, in recent years, required
policy discussions between the
Department and States and other
stakeholders. Of these discussions, the
one on consistency has gained
momentum.
State wage records today, while they
are a critical component of the WLMIS,
suffer from inconsistencies that impede
better management of WLMI, and of the
ES more broadly. Wage records have
always been a critical data source for
administration of the UI program as well
as other Federal programs, providing
information that supports eligibility
determinations and identification and
reduction of improper payments. Wage
records have increased importance
today because States are required to use
them to evaluate State performance of
the workforce system and education and
training providers. Additionally, wage
records play a key role in Federal
evaluations of the workforce system’s
programs. The expanded use of wage
records for such a wide range of
purposes requires consistency and
quality of the data in order to maximize
its use.
Regrettably, such consistency is
lacking. The wage data employers must
report on their quarterly wage reports to
their State and the formats they must
use to report it vary, State-by-State.
While employers filing wage reports
described in Federal regulations at 20
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CFR 603.2(j) must, at a minimum, report
the three data elements described in 20
CFR 603.2(k), State law may require
them to report additional elements. And
because States differ in how they define
certain data elements—including the
three elements listed in § 603.2(k)—
different States may prescribe different
reporting formats for the same data
elements. This means that the same type
of data (employee SSN, employee name,
employee address) may look different,
from State to State, when placed on the
form. For example, some States only
require the first several numbers of
workers’ SSN. Such differences in State
reporting requirements, and the
variation they generate in the type of
data and the format of data collected, set
up a significant barrier to data quality
and data consistency. They make it hard
for data users to effectively match wage
records across the States. This interferes
with the effective and efficient measure
of performance, program evaluation,
income verification under sec. 1137
SSA, and detection of improper benefits
payments in multiple Federal programs.
Consultations with stakeholders over
the years, as well as our own,
longstanding program experience, lead
the Department to believe that adoption
of standardized definitions of data
elements, and processes and systems for
collecting and reporting wage records
across all States, could greatly enhance
the usability of the wage records and the
ability to easily merge the data they
contain with other data sets.
Standardized definitions, collection
processes, and systems also could
reduce employer burden, given that
multi-State employers and their thirdparty administrators now have to report
wages to States in many different
formats. With such enhancements, State
wage records would contain data that
have the potential to create more
comprehensive and powerful workforce
and labor market information. Such an
approach would also help implement
the statute’s requirement for
consistency.
Other Federal statutes support
making significant improvements in
wage records as a data source. A
number of Federal statutes now place
emphasis on wage records and data
standardization. WIOA and the Middle
Class Tax Relief and Job Creation Act of
2014, for example, require the
Department to make the labor market
data it oversees or generates, even more
consistent and meaningful. WIOA
emphasizes the use of wage records for
performance and evaluations of the
workforce system. The Job Creation Act
focus on data standardization.
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Section 2104 of the Job Creation Act
requires the Secretary to promote data
exchange standardization through
regulation in the delivery of the UI
program, including as it relates to
supporting the reemployment of
unemployed workers. Data exchange
standards include use of interoperable
standards; use of widely accepted, nonproprietary, searchable, and computer
readable formats; and use of existing
non-proprietary standards, such as the
eXtensible Markup Language. A key
component of data exchange
standardization is ensuring that the data
the States are sharing is consistent. As
addressed above, it is impossible to
accurately exchange and match data that
has different elements and different
requirements for the common elements.
The Secretary cannot achieve data
exchange standardization in the UI
program if the data elements cannot be
accurately exchanged and matched.
Therefore, the Department interprets the
requirement in the Job Creation Act to
standardize data exchange to include
the requirement that the Secretary
consult with the WIAC and develop a
set of common data definitions.
The Wagner-Peyser Act, especially
when read in the context of these two
other statutes and the amendments
made to it by WIOA, exhibits the same
focus and expectation. Proposed
§§ 652.300 through 652.303 enable all of
this work to proceed through a
collaborative approach that brings in
other Federal agencies, States, and the
public through the newly constituted
WIAC.
Consultations with the WIC and WIAC
to improve wage records and the
WLMIS. Of course, consistency is not
the only concern or area of consultation
with stakeholders. There is a long
history of interest and discussions
among Federal and State agencies and
data users about the desirability of
making a variety of improvements to
wage records that would increase their
value and usability. Among these was
an effort in the 1990s referred to as the
Simplified Tax and Wage Reporting
System (STAWRS).
More recently, a subgroup of the
Workforce Information Council 5
established under WIA has been
researching and developing reports on
how to enhance the content of wage
records to support improvements in
labor market and workforce information.
The working group is currently
considering possible enhancements,
such as adding data elements to the
information States collect from
employers through the wage reports
5 Ibid.
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under 20 CFR 603.2(j), and the potential
impact of those enhancements, on State
workforce agencies and businesses. This
work will result in recommendations to
the WIC in the coming year and will
provide strong foundational information
to support the Secretary’s work with the
WIAC when it is established. (See
discussion on WIAC elsewhere in this
proposed rule.)
As discussed elsewhere, sec. 15(d) of
the Wagner-Peyser Act requires the
WIAC to evaluate the WLMIS System
and make recommendations to the
Secretary on how to improve the
WLMIS. Section 15(b) requires the
Secretary to receive and evaluate the
WIAC’s recommendations and respond
to these recommendations in writing. At
the appropriate time, the WIAC will
make recommendations for improving
the WLMIS. These recommendations
could range from technical
improvements to the system, such as
improving the technology States use to
gather and report data, to more
substantive changes to the system, such
as standardizing data elements to
facilitate comparisons and provide job
seekers easy to understand information
about the labor market.
To the extent that the Secretary’s
consultations with the WIAC and,
potentially, other stakeholder groups
result in proposals to change, enhance,
or expand wage record data elements,
the Secretary will carefully consider the
potential benefits and costs of these
proposals on the workforce system, and
work with the Congress, other Federal
agencies, States, the WIAC, and other
stakeholders to explore possible ways to
implement the recommendations. If
appropriate, the Department will engage
in further rulemaking or seek legislative
authority.
Data elements associated with wage
records. Potentially establishing new
data elements to wage records that
employers in all States must report
could have benefits similar to
standardization. For example, knowing
individuals’ occupations, along with the
wages they earned, would be extremely
valuable. Such additional information
would greatly assist in performance
reporting and program evaluation under
WIOA, in the identification of skill
shortages by detailed geographic area to
inform labor market training programs,
and in the analysis of the long-term
impact of education and training
programs on labor market outcomes. It
is likely that the WIAC will explore the
value and viability of adding this and,
potentially, other data elements. As
discussed above, the current WIC is
researching this issue and developing
reports that will provide additional
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information that is likely to be passed
on to the WIAC for consideration.
On January 31, 2014, the WIC released
its ‘‘Phase One Interim Report on
Current Practices of Unemployment
Insurance Wage Record Collection and
Use.’’ This report analyzed the results of
a State survey on the benefits of and
barriers to enhancing labor market
information by adding data elements to
the quarterly wage reports employers
submit to States as defined in 20 CFR
603.2(j). Among other things, the WIC’s
survey asked States what additional
data elements, aside from Federallyrequired wage information, States
require employers to report. The Phase
One Interim Report can be found at:
https://www.workforceinfocouncil.org/
Documents/
Wage%20Report%20Final.pdf. While
not all States responded, Alaska, Iowa,
Minnesota, New Jersey, Ohio, Oregon,
Pennsylvania, Rhode Island, Vermont,
the Virgin Islands, Washington, and
Wyoming reported already collecting
additional data elements in the
quarterly wage reports. The additional
elements included the Code, total hours
worked in a quarter, total number of
weeks worked in a quarter, pay type
(salary or hourly), hourly pay rate,
gender, job title, worksite address, zip
code, and tips. Some of the responding
States reported that the additional data
elements are extremely helpful for
estimating hourly earnings,
understanding career progression from
occupation to occupation, assessing the
effectiveness of workforce training, and
making occupational projections. One
State pointed out that knowing the
employee worksite information helped
with UC claim filing.
Asking employers to report and States
to collect additional data or data
categories through quarterly wage
reports, would expand the data
collections for many States. The
Department is committed to strong
stakeholder consultation as strategies
are developed to improve and enhance
wage records and to striking the
appropriate balance between the burden
of any new data collection and the value
of any additional data elements. In the
event the WIAC and/or other
stakeholder consultations generate
recommendations for such
enhancements, the Department will
consider additional rulemaking or seek
legislative authority, if appropriate.
Request for comment. The
Department is interested in receiving
comments from States that responded to
the survey, and any other States that
require additional data elements in
quarterly wage reports, on the
challenges and benefits of requiring
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additional data elements in the
quarterly wage reports. The Department
is also interested in receiving comments
from employers and payroll processors
who provide occupational data for the
quarterly wage records.
Applying 20 CFR part 603 to wage
records. Finally, the regulation
proposed for new § 652.303 would
clarify that wage records are subject to
and protected by the Department’s
regulations at 20 CFR part 603, which
govern confidentiality and disclosure
for confidential UC information,
including the ‘‘wage information’’ that
make up ‘‘wage records.’’ Nothing in
§§ 652.300 through 652.302 changes the
confidentiality requirements of 20 CFR
part 603. Information contained in
‘‘wage records’’ that is confidential
under §§ 603.2(b) and 603.4 remains
confidential in accordance with those
sections of the confidentiality and
disclosure requirements of subparts A
and B of part 603. The Department
proposes this provision to further
ensure the confidentiality of the
information in the State UC system.
O. Part 653—Services of the
Employment Service System
In subparts B and F, the Department
proposes to implement the WIOA title
III amendments to the Wagner-Peyser
Act and to streamline and update
certain sections to eliminate duplicative
and obsolete provisions. Despite these
changes, part 653 will remain consistent
with the ‘‘Richey Order’’, which allows
revisions as long as they are consistent
with the Richey Order. NAACP v.
Brennan, 9174 WL 229, at *7.
Section 653.100
Subpart
Purpose and Scope of
Proposed § 653.100 explains that the
regulations under part 653 seek to
ensure that all services of the workforce
development system be available to all
job seekers in an equitable fashion. This
section includes language currently at
§ 653.101 that explains the purpose and
scope of part 653. This approach is
consistent with the Department’s
current policy and requiring equal
access and treatment to all services
available through the workforce
development system is also consistent
with the purpose and terms of the
Richey Order.
Section 653.101 Provision of Services
to Migrant and Seasonal Farmworkers
The Department proposes to delete
§ 653.101 because its provisions have
been moved to § 653.100 or concern
itinerant or satellite offices that have
been replaced by one-stop centers that
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provide services to both MSFWs and
non-MSFWs.
Section 653.102 Job Information
The Department proposes to make
several changes to § 653.102:
(1) That State agencies make job order
information conspicuous and available
to MSFWs ‘‘. . . by all reasonable
means’’ rather than ‘‘in all local offices’’
to reflect the obligation of State agencies
to contact MSFWs who are not being
reached by the normal intake activities
including at their working, living or
gathering areas to explain the services
available at the local one-stop center;
(2) That the language in § 653.102
referring to ‘‘computer terminal,
microfiche, hard copy, or other equally
effective means’’ be replaced with
‘‘internet labor exchange systems and
through the one-stop centers’’ to
conform to technological advances and
current techniques of States’ internetbased labor exchange systems;
(3) That the reference to ‘‘each
significant MSFW local office’’ be
replaced with ‘‘employment service
offices’’ to require each ES office to
provide adequate staff assistance to
MSFWs to more fully conform with the
Richey Order, which requires the
Department to ensure that MSFWs are
serviced in a quantitatively
proportionate and qualitatively
equivalent way to non-MSFWs;
(4) That offices designated as
significant MSFW multilingual ES
offices must provide services to MSFWs
in their native language, whenever
requested or necessary and to
acknowledge that Spanish is not the
only native language spoken by MSFWs
whose first language is not English.
Section 653.103 Process for Migrant
and Seasonal Farmworkers To
Participate in Workforce Development
Activities
The Department proposes to revise
the heading in § 653.103 to ‘‘Process for
migrant and seasonal farmworkers to
participate in workforce development
activities’’ to align it with language used
in titles I and III of WIOA, which refer
to ‘‘workforce development activities.’’
Proposed § 653.103(b) includes new
language requiring that persons with
LEP receive, free of charge, the language
assistance necessary to afford them
meaningful access to the programs,
services, and information offered by
one-stop centers. The Department also
proposes to remove the reference to
§ 653.105 because we propose to
eliminate that section.
In proposed § 653.103(c), the
Department proposes to add the words
‘‘or in their native language’’ to further
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acknowledge that Spanish is not the
only native language spoken by MSFWs
whose first language is not English, and
to remove language regarding checking
the accuracy and quality of applications
because such actions are part of
compliance reviews which are
addressed in § 653.108.
The Department also proposes to
remove paragraphs (d) through (h) from
§ 653.103, that refer to application cards
and an application process that are
generally no longer used, having been
replaced by online resources. Instead, it
is proposed in paragraph (d) that local
ES offices ‘‘refer and/or register the
MSFW in accordance with the
established procedures defined in the
relevant regulations(s) or guidance.’’
The Department proposes to remove
§ 653.104(a) because MSFWs receive
equitable ESs regardless of family status.
The provision of services for all WagnerPeyser participants is not dependent
upon whether their family members are
participating in the ES system. It is also
proposed that paragraphs (b) and (c)
regarding applications from an
individual for employment as a farm
labor contractor, and agricultural job
orders submitted by a farm labor
contractor or farm labor contractor
employee, be relocated to § 653.500
because that addresses the ARS.
It is proposed that §§ 653.105 and
653.106 be deleted as they are generally
obsolete and because State agencies no
longer make referrals to or operate dayhaul facilities. Additionally, it is not
anticipated that State agencies will
make referrals to or operate day-haul
facilities in the foreseeable future in part
because WIOA title I, sec. 121(e)(3)
requires the colocation of WagnerPeyser services. Should those activities
resume in the future, however, the
Department will ensure compliance
with the requirements of the Richey
Order concerning any day-haul referrals
and day-haul locations operating under
ES supervision. The Department also
proposes to remove paragraph (c) of
§ 653.106 as it is unnecessary because it
references §§ 653.107(j) and 653.108(p)
concerning outreach visits to, and
monitoring of day-haul facilities. Those
outreach obligations remain, as revised,
in proposed § 653.107.
Section 653.107 Outreach and
Agricultural Outreach Plan
The Department proposes to
restructure and reorganize § 653.107 to
facilitate a better understanding of State
agency responsibilities, outreach worker
responsibilities, and ES office
responsibilities relating to outreach and
the Agricultural Outreach Plan (AOP).
The Department anticipates that the
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reorganization will allow the relevant
entities to identify their responsibilities
under this section.
Currently, the AOP is submitted
annually as a modification to the WIA
under title I and the Wagner-Peyser
Integrated or Unified Workforce Plan.
As required by sec. 8 of the WagnerPeyser Act, and as amended by sec. 306
of WIOA, States must now submit their
Wagner-Peyser plan as part of the
Unified or Combined State Plan
described in WIOA secs. 102 and 103,
respectively. In order to streamline the
plan submission process for States, the
Department proposes to require that
States include their AOP with their
Unified or Combined State Plan. As the
State Plans are required every 4 years,
the Department proposes to require that
the AOP be submitted every 4 years.
The Department notes, however, that
the Richey Order requires much of the
information submitted through the AOP
to be submitted annually. Therefore, in
order to balance the goal of streamlining
the State planning process with the
need to comply with the Richey Order,
the Department proposes that the
Annual Summary required at 20 CFR
653.108(s) include outreach data and an
update on the State’s progress toward
accomplishing its goals set forth in the
AOP. In proposed paragraph (d), the
Department explains the basic
requirements of the AOP and the
Annual Summaries and explain that
official guidance will be forthcoming.
Additionally, terminology in proposed
§ 653.107 is revised, when appropriate,
to better align its terms with
corresponding terms in WIOA which
will be used in the Unified State Plan.
The Department also proposes the
following changes to § 653.107:
(1) The heading is proposed to be
replaced with ‘‘Outreach and
Agricultural Outreach Plan (AOP)’’ to
make clear that information regarding
the AOP can be found in this section;
(2) The term ‘‘Outreach Program’’
used in paragraph (a) is proposed to be
replaced by ‘‘Outreach’’ to broaden the
scope of the section to accurately reflect
the various requirements regarding
outreach and that the section is not a
formulaic program;
(3) References in paragraph (a) to the
Outreach Plan have been relocated, in
revised form, to paragraph (d) that
concerns the ‘‘Agricultural Outreach
Plan (AOP)’’ or ‘‘Annual Summaries,’’
or reserved for use in future official
Department guidance (the Department
will include AOP guidance as part of its
Unified State Plan guidance);
(4) A requirement has been added to
paragraph (a) for each State agency to
employ outreach workers to conduct
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outreach in their service areas (full or
part time staff may be hired depending
on whether the State has a significant
MSFW population). This addition is
proposed to help each State meet its
requirement under the current 20 CFR
653.107(a) to locate and contact MSFWs
who are not being reached by the
normal intake activities conducted by
the local ES offices. The Richey Order
influenced the language for this
proposed addition, as it states that
‘‘each State agency shall employ an
adequate number of staff who shall be
assigned to ES offices. . . . ;’’
(5) Paragraph (a)(4) has been revised
to clarify that the Department, through
guidance, will identify the 20 States
with the highest estimated year-round
MSFW activity;
(6) Delete paragraph (b)(2) because all
outreach efforts must be vigorous. This
change does not signal a reduction in
the required intensity of outreach
activities;
(7) The language in paragraph (h)(3)(i)
be relocated to § 653.107(a)(4) and be
revised to require the ‘‘top 20 States,’’
that is the 20 States with the highest
estimated year-round MSFW activity, to
hire year-round full-time outreach staff
to help ensure that more farmworkers
will be reached on a year-round basis in
high activity areas than are reached at
present. The remaining States must hire
part-time outreach staff year-round and
must hire full-time outreach staff during
periods of peak MSFW activity. These
provisions are proposed to balance the
urgent need for outreach with the reality
of limited staff resources available to the
States. Additionally, it is proposed that
the option for the Regional
Administrator to grant a deviation from
the requirements in this paragraph be
deleted to ensure that States have a
means to contact MSFWs who are not
being reached by the normal intake
activities conducted by the local ES
offices and to encourage them to strive
for ‘‘the development of strategies for
providing effective outreach to and
improve access for individuals and
employers who could benefit from
services provided through the workforce
development system,’’ as stated at
WIOA sec. 101(d)(3)(c);
(8) The reference to local offices in
§ 653.107(b)(4)(vi) has been updated to
‘‘one-stop center.’’ In this section ‘‘onestop centers’’ refers to both
comprehensive and affiliate one-stop
centers;
(9) The language in current
§ 653.107(j)(1)(v) be relocated to
proposed § 653.107(b)(2) and revised by
inserting the words ‘‘employer’s
property or work area’’ and changing the
words ‘‘permission of the employer’’ to
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‘‘permission of the employer, owner or
farm labor contractor’’ because the
employer may not always be the
appropriate person to grant such
permission;
(10) The reference to unemployed and
employed MSFWs in current paragraph
(j)(2)(ii) be deleted because all MSFWs
contacted through outreach activities
must receive information on current and
future employment opportunities;
(11) A sentence was added to
paragraph (b)(6) requiring outreach
workers to document and refer apparent
violations that are non-employment
related; and
(12) Language was added to paragraph
(b)(7) regarding training outreach
workers on protecting farmworkers
against sexual harassment in the fields.
While such abuse is not often
considered when contemplating the
protection of, and advocacy for,
MSFWs, it is increasingly prevalent and
the addition is intended to further a
concerted effort to deter such abuse. To
that end, the Department wishes to
ensure that outreach workers are aware
of the issue and able to appropriately
refer MSFWs.
Section 653.108 State Workforce
Agency and State Monitor Advocate
Responsibilities
The Department proposes the
following changes to § 653.108:
(1) The heading is proposed to be
revised to State Workforce Agency and
State monitor advocate (SMA)
responsibilities to better describe the
contents of this section;
(2) The requirement in paragraph (c)
for SMAs to work in the State central
office was removed because there are
instances where it may be more
productive and logical for them to work
in an office that is more centrally
located to the State’s MSFW population;
(3) The language in paragraph (d)
allowing an Office of Workforce
Investment (OWI) Administrator to
reallocate SMA positions and approve
the use of less than full-time work be
deleted because the OWI administrator
does not have authority over these
determinations. It is also proposed that
the last sentence in this paragraph be
modified to clarify that a State agency
that deems SMA functions appropriate
on a part-time basis must demonstrate to
the Regional Administrator that parttime staffing will be sufficient for
carrying out his/her duties;
(4) Language has been added to
paragraph (g)(1) authorizing SMAs to
request a corrective action plan from the
ES office to address any deficiencies
found in their review and allowing the
SMAs to advise the State agency on
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means to improve the delivery of
services to MSFWs;
(5) That the words ‘‘local office
MSFW formal monitoring’’ be deleted
from paragraph (g)(2) because the
Department has proposed to include a
definition for onsite reviews in 20 CFR
651.10;
(6) In paragraph (g)(3) the words
‘‘significant MSFW local office’’ are
proposed to be replaced with
‘‘significant MSFW one-stop center’’ to
conform with the proposed definition in
20 CFR 651.10;
(7) In paragraph (g)(4) it is proposed
that the sentence referring to
applications be deleted because such
information can be more effectively
provided and updated, as necessary, via
Department-published guidance
materials. It is also proposed this
paragraph include language requiring
the SMA to clear the State’s AOP to
ensure that the SMA reviews, provides
necessary input, and supports the final
version of the State’s AOP;
(8) That paragraph (g)(6) be created to
require SMAs to write and submit
Annual Summaries to the State
Administrator with a copy to the
Regional Administrator because it is a
duty originally located in § 653.108(t)
but appropriately falls under
§ 653.108(g) as one of the SMA duties;
(9) In paragraphs (h)(2) and (h)(3) the
references to ‘‘reviews’’ be replaced
with ‘‘onsite review(s)’’ for clarity, and
that the reference to ‘‘ETA’’ in
paragraph (h)(3) be replaced with ‘‘the
Department;’’
(10) It is proposed that in paragraph
(j) the SMAs must ensure that local ES
office managers submit copies of the
MSFW complaint logs to the State
agency quarterly pursuant to 20 CFR
658 subpart E instead of the regional
office, as was originally required. This
change is proposed because the regional
office does not need to review each
complaint log, rather it reviews the
information in aggregate, as is the
current practice. This helps to avoid
overburdening the regional offices with
more detail than is necessary.
Additional details concerning the
submission of complaint logs will be
provided and updated, as necessary, via
Department official guidance;
(11) Current paragraph (k) has been
broken into separate paragraphs
(proposed paragraphs (j), (k), and (l)), to
clarify the intent of the respective duties
under this subpart. Paragraph (j) will
require SMAs to serve as advocates to
improve services to MSFWs; paragraph
(k) will strengthen the requirement for
SMAs to liaise with WIOA sec. 167
grantees to encourage increased
collaboration between SMAs and
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grantees that provide services to
MSFWs; paragraph (l) proposes that
SMAs meet at least quarterly and
establish an MOU with WIOA sec. 167
grantees and other organizations serving
farmworkers, the Department intends to
foster a better working relationship
between the SMAs, the grantees, and the
other organizations while harmonizing
the delivery of services to MSFWs and
minimizing the duplication of services;
(12) Language to include committees
other than DOL Regional Farm Labor
Coordinated Enforcement Committee
has been added to paragraph (l) to
broaden the scope of appropriate
regional meetings the SMA must attend.
(13) Paragraph (o) has been deleted
because affirmative action staffing plans
are no longer required. In their place,
each State agency must provide an
assurance that it is complying with its
affirmative action requirements set forth
in 20 CFR 653.111 through the AOP.
Additionally, the requirement under
proposed paragraph (g)(1) for SMAs to
conduct an ongoing review of and
advise the State agency on its
affirmative action goals will meet the
need for SMAs to ensure that their
respective States are complying with the
affirmative action staffing requirements
outlined in the Richey Order;
(14) Paragraph (p) concerning dayhaul sites has been deleted for the same
reasons provided for deleting §§ 653.105
and 653.106; and
(15) A new paragraph (s) has been
added to outline the purpose and scope
of required Annual Summaries, and a
list of what the summaries must
include. The requirements for the
Annual Summary have been expanded
to include information that would be
relevant for the Department’s review of
how the States are providing services to
MSFW. Many of the added requirements
are taken from other sections under this
chapter. Specifically, the Annual
Summary would include assurances or
summaries of SMA duties taken from
current § 653.108(c), (g)(1), (h)(2), (j), (k),
(q), and (r). This section also requires
that the Annual Summaries include a
summary of the activities conducted
over the course of the previous year that
relate to meeting the goals of the AOP.
At the end of the AOP, this section
would require that the SMA provide a
synopsis of the State agency’s
achievements in meetings its goals set
forth in the AOP. This will help keep
each State agency on track toward
achieving its AOP goals and help the
Department track such progress.
In addition, related to proposed
§ 653.108(g)(4), the Department notes
that the process by which the SMA will
receive, review, and approve the AOP
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will be described in the joint planning
guidance issued by the Departments of
Labor and Education.
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Section 653.109 Data Collection and
Performance Accountability Measures
For § 653.109, Data collection, the
Department proposes to include the
equity indicators and minimum service
level indicators currently at § 653.112 as
they are data elements that
appropriately fit under § 653.109, with
the exception of the contents of current
§ 653.112(c)(3) that will be deleted
because ETA does not publish a list of
priorities that State agencies can use as
a basis for the minimum service levels
required of significant MSFW States.
The Department also proposes to add
‘‘and performance accountability
measures’’ to § 653.109 so the part may
appropriately include the additional
measures.
The Department proposes to make
several other changes to § 653.109:
(1) Paragraph (a) specifies that State
agencies must collect career service
indicator data for services described in
WIOA sec. 134(c)(2)(A)(xii) because
WIOA sec. 134(c)(2)(A)(xii) includes
several of the existing requirements
under § 653.109;
(2) Paragraph (b) has been revised to
specify that data collection will include
the number of non-MSFWs and MSFWs
registered for Wagner-Peyser services
and MSFW average earnings, and will
remove the requirement to collect data
on the number of MSFWs referred to
training, receiving job development,
receiving testing, receiving employment
counseling, and referred for supportive
services or other services, as those are
already required data elements under
WIOA; and
(3) Paragraph (b) also replaces the
terms ‘‘wage rates’’ and ‘‘duration of
employment’’ with the terms ‘‘entered
employment rate’’ and ‘‘employment
retention rate,’’ respectively to conform
with the terminology by the
Department’s data collection
mechanism (currently the Labor
Exchange Agricultural Reporting System
9002a form).
Section 653.110 Disclosure of Data
Proposed § 653.110 contains minor
changes to clarify the provisions and to
update terminology.
Section 653.111 State Agency Staffing
Requirements
In § 653.111 it is proposed that the
requirement for each State agency with
significant MSFW offices to submit an
affirmative action plan be replaced with
the requirement that each such State
agency submit assurances, as part of its
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Unified State Plan and as part of its
Annual Summaries, that it is
implementing an affirmative action
staffing program. This change is
proposed because it will help each State
agency with significant MSFW offices to
streamline implementation of its
affirmative action program while
ensuring that the Department remains in
compliance with the relevant
requirements under the Richey Order. It
is proposed that the regulation
providing the formula for determining
the racial and ethnic characteristics of
the workforce be deleted from the
regulation because this will be provided
in subsequently issued guidance.
It is proposed that § 653.112 be
deleted because PBPs are obsolete as
each State agency is required to submit
a Unified or Combined State Plan
pursuant to WIOA title I. The text in
paragraphs (b) and (c) concerning equity
indicators and minimum level service
requirements is proposed to be
relocated, with minor revisions, to
§ 653.109.
It is proposed that § 653.113 be
deleted and its contents relocated to 20
CFR 658.419 because it relates to the ES
and Employment-Related Law
Complaint System (Complaint System).
In subpart F, the Department proposes
the following changes to clarify the
requirements of this subpart:
(1) The paragraphs under the ARS
have been reorganized into
subcategories based on each
stakeholder’s respective responsibilities
(the subcategories are ES Office
Responsibilities, State Agency
Responsibilities, and Processing Job
Orders). The proposed restructuring of
this subpart is intended to help
stakeholders better understand how the
system works and more easily identify
and comprehend their respective
responsibilities. The reorganizing is also
proposed to help clarify the meaning of
the regulations;
(2) The paragraphs have been revised
to state requirements in the positive and
active voice, versus the negative passive
voice from which they were originally
drafted;
(3) References to information that
needs to be provided to MSFWs in
Spanish be changed to ‘‘native
language’’ to conform to TEGL 26–02;
and
(4) The heading for subpart F has been
revised and supplemented by adding
the words ‘‘for US Workers’’ to clarify
that ARS is meant for U.S. workers
versus foreign workers. It is a common
misconception that the ARS is for
foreign workers who may be hired by
U.S. employers through visa programs
such as the H–2A or H–2B visa
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programs, and the Department intends
the proposed change to help eliminate
this misconception. For the same
reason, any references to the temporary
employment of foreign workers in the
United States (that would otherwise fall
under 20 CFR 655) have been deleted.
Section 653.501 Requirements for
Processing Clearance Orders
The Department proposes the
following changes to § 653.501:
(1) In paragraph (c)(1)(iv)(I), currently
paragraph (d)(2)(x), it is proposed that
the sentence regarding the contingency
of payments made beyond the period of
employment specified in the job order
be deleted because such terms are
already specified in the job order and
the language is duplicative;
(2) In paragraph (c)(3)(iv), currently
paragraph (d)(2)(xiii), it is proposed that
the sentence referring to requests for
foreign workers be deleted because this
section should only cover information
regarding ARS and the requirements for
foreign workers are covered under 20
CFR 655; and
(3) In paragraph (j), it is proposed that
the Regional Administrator notify the
national monitor advocate instead of the
OWI Administrator when a potential
labor supply State agency rejects a
clearance order and the Regional
Administrator does not concur with the
reasons for rejection. In this case, the
national monitor advocate, in
consultation with the OWI
Administrator, is the appropriate person
to make the final determination because
it is the common practice for the
national monitor advocate to provide
the State agencies with guidance
regarding ARS.
Section 653.502 Conditional Access to
the Agricultural Recruitment System
The Department proposes to delete
current § 653.502 concerning changes in
crop and recruitment situations and fold
its contents without change into
proposed § 653.501.
The Department proposes to add a
new § 653.502 which contains the
relocated provisions of 20 CFR 654.403.
While the housing standards at 20 CFR
654 subpart E, including current
§ 654.403, will expire 1 year after the
publication of the final rule, the
Department proposes moving current
§ 654.403 into this new section because
those requirements remain necessary
and relevant, and because that section is
related to the terms and requirements of
this subpart. Accordingly, the
provisions of 20 CFR 654.403 have been
relocated to proposed 20 CFR 653.502.
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Section 653.503 Field Checks
Proposed § 653.503(b) has been
revised to clarify that State agencies
must conduct field checks on at least 25
percent of agricultural worksites to align
with common practice. The Department
also proposes to add language requiring
a State agency with fewer than 10 ES
placements to conduct field checks on
all agricultural worksites where the
placements have been made. This
change is proposed to ensure that all
worksites are checked whenever
feasible. In paragraph (e), it is proposed
that the word ‘‘shall’’ be changed to
‘‘may’’ because it is not a requirement,
rather State agencies may choose to
enter into an agreement with an
enforcement agency if they believe it is
necessary or helpful.
P. Part 654—Special Responsibilities of
the Employment Service System
1. Introduction
The Department proposes to revise
the ETA regulations governing Housing
for Agricultural Workers at 20 CFR 654,
subpart E, issued under the authority of
the 1933 Wagner-Peyser Act by
updating outdated terminology and by
establishing an expiration date for the
ETA standards in order to transition
housing currently governed by the ETA
standards to the Occupational Safety
and Health Administration (OHSA)
regulations governing temporary labor
camps for agricultural workers.
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2. Subpart E—Housing for Agricultural
Workers
Section 654.401 Applicability
The Department proposes to amend
§ 654.401 to require that housing
covered by the regulations in this
subpart be subject to the relevant OSHA
housing standards for agricultural
workers beginning 1 year after the
publication of the final rule.
In 1951 the U.S. ES Bureau of
Employment Security established the
ETA housing standards for farmworkers.
These standards were updated in 1959
and again in 1968. However, despite the
Department’s intention to ‘‘make every
effort to ensure that ‘housing and
facilities are hygienic and adequate to
the climatic conditions of the area of
employment’’’ and that such housing
‘‘conformed to applicable State or local
housing codes, and in the absence of
such codes, that the housing would not
endanger the health or safety of the
workers,’’ farmworkers continued to
face inadequate, unsafe, and unsanitary
housing. In 1970, Congress passed the
Occupational Health and Safety Act
(OSHA) which was intended to assure
that every person working in the United
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States has safe and healthful working
conditions.’’ In this light, OSHA
adopted a set of national consensus
standards for temporary labor camps
which was published in August 1971.
Therefore, since 1971 the Department
has had in effect two sets of agricultural
housing standards for farmworkers:
Those under the ETA regulations
(originally at 20 CFR part 620, later at
20 CFR part 654) and those under the
OSHA regulations (at 29 CFR 1910.142).
The dual set of standards has long
resulted in confusion with respect to
their applicability and enforcement. In
view of these problems, the Department
held hearings in 1976 with stakeholders,
developed several proposals to arrive at
a single set of standards, and, on
December 9, 1977, rescinded the ETA
regulations and standards.
While the rescission was effective
immediately, employers whose housing
met the ETA standards on the date of
their rescission were given until January
1, 1979 to come into compliance with
the OSHA housing regulations. Later,
the Department received numerous
complaints objecting to the rescission of
the ETA housing regulations, including
those from employers who had
constructed housing to conform to the
ETA standards and complained that the
shift from ETA to OSHA standards
would require costly modifications to
housing which the Department had
previously approved. In response to
these comments, the Department
proposed on September 1, 1978 to revise
the December 9, 1977 rescission action
by adding an indefinite extension of
time for employers already following
the ETA standards to bring their
housing into compliance with the
OSHA standards and a transitional
provision for housing built in reliance
on the ETA regulations.
On March 4, 1980, the Department
issued a final rule providing that the
OSHA standards and regulations
applied to all temporary housing for
farmworkers except that ‘‘[e]mployers
whose housing was constructed in
accordance with the ETA housing
standards may continue to follow the
full set of ETA standards set forth in this
subpart only where prior to April 3,
1980 the housing was completed or
under construction, or where prior to
March 4, 1980 a contract for the
construction of the specific housing was
signed.’’ 45 FR 14180, 14182 (Mar. 4,
1980).
The Department proposes that the
remaining housing currently governed
under the standards and provisions at
20 CFR part 654 subpart E (Housing for
Agricultural Workers) be subject to the
OSHA standards and provisions
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beginning 1 year after the publication of
the final rule, except that mobile range
housing for sheepherders and
goatherders must continue to meet
existing Departmental guidelines and/or
applicable regulations. The proposed
expiration date will provide sufficient
time for affected employers to transition
into compliance with the OSHA
standards.
Pursuant to the January 19, 1981
agreement between OSHA, the WHD
(replacing the abolished Employment
Standards Administration (ESA)), and
ETA for Inspections of Migrant
Agricultural Worker Housing, the
Department’s WHD will continue to be
responsible for enforcing the provisions
under 29 CFR 1910.142. Beginning 1
year after the publication of the final
rule, the Department will not apply or
enforce the standards of this subpart,
other than in cases relating to events
predating that expiration date.
Requiring all housing to meet the
relevant OSHA standards and
eliminating the ETA standards will
reduce administrative and enforcement
burdens on employers, workers, State
agencies, and the Department because
they will need to reference and rely on
only one set of applicable standards
located in one place. Enforcement
agency staff and State agency staff that
conduct housing inspections will only
need to understand one set of standards
which will ease the learning process.
Additionally, the change will benefit
MSFWs as the regulations under 29 CFR
1910.142 conform to more modern
housing standards than those under 20
CFR part 654 subpart E. The Department
acknowledges that the change will mean
that some employers will need to
upgrade their farmworker housing to
meet the OSHA standards. However, the
benefit to farmworkers and the
administrative benefits to State agencies
and the Department outweigh the
adjustments employers will need to
make to comply with the OSHA
standards. In order to assist employers,
the Department will provide technical
assistance to facilitate the transition to
the OSHA housing standards.
Having been in place for 34 years, it
is the Department’s opinion that it is
appropriate to complete the transition to
the OSHA standards begun in 1980 and
to phase out in full the ETA standards
grandfathered for 34 years for
farmworker housing completed or under
construction prior to March 3, 1980, or
under contract for construction prior to
April 3, 1980. As in 1980, the
Department continues to believe that the
OSHA regulations provide for superior
standards of safety and habitability for
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MSFWs and do not overly burden
employers.
In addition to the change described
above, the Department proposes to
amend the following sections:
The following sections of part 654
remain unchanged: §§ 654.404, 654.405,
654.406, 654.407, 654.408, 654.409,
654.410, 654.411, 654.412, 654.413,
654.414, 654.415, 654.416, and 654.417.
Section 654.400
Q. Part 658—Administrative Provisions
Governing the Employment Service
System
Scope and Purpose
The Department proposes to amend
§ 654.400 to update terminology and
explain that housing covered under the
standards and provisions of subpart E
will be subject to different regulations
without grandfathering beginning 1 year
after the date that this final regulation
is published.
In addition to the amendment
described above, the Department
proposes to revise § 654.401 for clarity,
to add a new paragraph (b), and to
shorten the section heading by
eliminating unnecessary language.
Section 654.402
Variances
The Department proposes to amend
§ 654.402 to update terminology and
remove the term ‘‘permanent’’ because,
as proposed, variances will expire on
the given expiration date for the
standards and provisions of subpart E;
therefore, employers will no longer be
entitled to a permanent variance. The
deadline of June 2, 1980 is removed
because the Department proposes to
receive applications for temporary
variances from the ETA standards until
the date on which the standards and
provisions of subpart E will expire.
Additionally, paragraph (f) has been
added to state that all variances and
requests for variances will expire 1 year
after the publication of the final rule
requiring this change, and that no
applications will be accepted as of that
date. After this change takes effect, the
Department will return any pending
requests for variances to the appropriate
applicant noting that all variances and
variance requests expired on that date
and are therefore stale.
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Section 654.403
[Reserved]
Finally, the Department proposes that
the provisions of § 654.403 be deleted
and relocated to 20 CFR 653.502
because they more directly relate to the
governance and operation of the ARS
rather than the condition of worker
housing. Section 654.403 provides for
conditional access to the clearance order
system administered by the relevant
State workforce agency which is needed
to effectively service employers whose
housing has fallen temporarily out of
compliance with the applicable housing
standards during a period of use in the
previous year, and where the employer
has not had an opportunity to bring the
housing back into compliance.
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20 CFR part 658 sets forth systems
and procedures for complaints,
monitoring for compliance assessment,
enforcement and sanctions for
violations of the ES regulations and
employment-related laws, including
discontinuation of services to employers
and decertification of State agencies.
The Department’s proposed changes
update terminology and responsibilities
and reorganize various regulations to
increase the clarity and efficiency of the
provisions involved. Additionally,
headings have been revised, when
necessary, to reflect proposed changes
to the regulations, and language has
been added to permit, where relevant,
the use of electronic mail and electronic
signatures. The complaint system under
20 CFR part 658 does not apply to
complaints filed under WIOA title I.
During the 1980 rulemaking, the
Department received numerous
comments about the proposed
complaint system at 20 CFR part 658
subpart E (Complaint System) including
comments that focused on the limited
staff resources available to provide all
labor exchange services including the
handling of complaints. The Department
took those comments into account and
limited the complaint system to only
take in writing those complaints that
were ‘‘Job Service (JS) related or those
non-JS related complaints that [were]
filed by MSFWs alleging violations of
laws enforced by ESA or OSHA.’’ (Since
the dissolution of ESA on Nov. 8, 2009,
the WHD has taken on the relevant
enforcement responsibilities (45 FR
39454, 39456 (June 10, 1980.)) The
Department now believes it is
appropriate and consistent with the
Richey Order to allow most
employment-related law complaints by
MSFWs to be recorded, referred, and
tracked to resolution (except those that
relate to WIOA title I complaints which
follow a different process—see WIOA
title I sec. 181(c)). Technological
advances in the workplace since 1980,
such as the widespread use of computer
software and systems, have made
performing such work feasible with
limited staff resources. Additionally,
recording, referring, and tracking to
resolution the additional complaints
will help, directly or indirectly, to deter
the employment-related discrimination
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and abuses that MSFWs continue to
suffer throughout the United States.
The Department proposes to revise
the heading for 20 CFR part 658 subpart
E from ‘‘Job Service Complaint System’’
to ‘‘Employment Service and
Employment-Related Law Complaint
System (Complaint System)’’ to
accurately reflect what the Complaint
System covers. The Department
proposes to eliminate § 658.401 and fold
its revised provisions that relate to the
purpose and scope of the subpart into
§ 658.400.
Regarding provisions concerning the
complaint system at the State level, the
Department proposes to restructure the
previous §§ 658.410 through 658.418 by
placing them in § 658.411 and breaking
them down into subsections for
complaints alleging violation(s) of
employment-related laws and
subsections on complaints alleging
violation(s) of the ES regulations. Those
subsections are further broken down
based on whether the complainant is an
MSFW or not. Proposed new §§ 658.410
and 658.411 provide an overview of the
Complaint System as it pertains to all
persons who submit a complaint and as
it pertains specifically to MSFWs who
submit a complaint.
Section 658.410 Establishment of
Local and State Complaint Systems
In § 658.410(c)(2), it is proposed that
quarterly complaint logs be submitted to
the SMA and the State Administrator
rather than to the Regional
Administrator, unless requested. This
change is proposed to increase the
efficiency of the Regional
Administrator’s position that does not
require the routine review of the
multitude of highly detailed logs.
Section 658.411 Action on Complaints
Section 658.411 is expanded to
incorporate the majority of the
provisions currently in §§ 658.412
through 658.417 in the interest of
streamlining and clarity. The
Department proposes to eliminate
§§ 659.412 through 658.417 as separate
sections. Not included in § 658.411,
however, is the reference currently in
§ 658.414(a) to 29 CFR part 42 because
the proposed revisions to the complaint
system call for coordination with all
relevant enforcement agencies
concerning MSFW complaints, and
provisions at 29 CFR part 42 discuss
such coordination only between WHD,
OSHA, and the ETA. This new approach
ensures that State and local officials will
consider forwarding employmentrelated law complaints to a broader
group of enforcement agencies. Also
excluded from proposed § 658.411 is the
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text of current § 658.414(c) that has
become redundant because proposed
§ 658.410 also states that all complaints
filed by an MSFW must be recorded.
The Department proposes to add new
§ 658.419 that will incorporate the
relocated provisions of 20 CFR 653.113
(Apparent Violations) because those
provisions set forth the procedures for
State agency employees to follow when
they become aware of an apparent
violation of employment-related law or
of the ES regulations which is more
appropriately located in 20 CFR part
658 subpart E than in 20 CFR part 653
subpart B that concerns services for
MSFWs.
Proposed § 658.411(d)(6) indicates
that complaints alleging violations of
the ES regulations will be handled to
resolution if the complaint was made
within 2 years from the date of
occurrence, versus the 1 year provided
currently at § 658.401. A 2-year
limitations period would be consistent
with the limitations period for nonwillful violations of the Fair Labor
Standards Act, a worker protective
statute of general application that
applies to employment in agriculture
and from which the definition of
farmwork in 20 CFR 651.10 is largely
drawn. Increasing the limitations period
to 2 years will provide greater
protections to those participating in the
ES system by accommodating those
individuals that do not feel comfortable
filing or are not able to file complaints
within a year from the alleged
occurrence. Increasing the limitations
period by 1 year will not increase the
burden on State agencies or employers
because the Uniform Administrative
Requirements for the Wagner-Peyser
grant already requires the retention of
all financial and programmatic records,
supporting documents, and statistical
records for 3 years, and those records,
in many cases, will contain information
bearing on complaints filed within the
2-year limitations period. Finally, as
with complaints filed under the FLSA,
there is little risk that a complaint will
become stale if it is filed 2 years after
an alleged occurrence. The 2-year
limitations period would not apply to
employment-related law complaints as
each enforcement agency has its own
respective limitations period for which
it can process complaints.
It is proposed that §§ 658.420 through
658.426 be restructured to conform to
the restructured regulations for the
Complaint System at the State level in
which the system is broken down into
employment law-related complaints and
complaints relating to the ES
regulations.
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Section 658.422 Handling of
Employment-Related Law Complaints
by the Regional Administrator
The Department proposes to revise
§ 658.422 by replacing in § 658.422(a)
the reference to ‘‘ESA or OSHA’’ with
‘‘the appropriate enforcement agency’’
to allow for complaints to be referred to
the appropriate agency and not confined
to two agencies within the Department.
Also proposed is the elimination of
§ 658.422(d) because its requirement to
log all complaints and related
correspondence is already set forth in
§ 658.420(d). The Department also
proposes to eliminate § 658.423 as a
separate section and incorporate its
provisions in § 658.420 that addresses
the handling and other treatment of
complaints.
Section 658.424 Proceedings Before
the Office of Administrative Law Judges
Per § 658.424(b), the Department
proposes to clarify that the rules
governing procedures before the
Department’s OALJ at subpart A of 29
CFR part 18 govern proceedings under
§ 658.424, except where the provisions
of §§ 658.424 and 658.425 conflict with
the provisions of that subpart. However,
the rules of evidence at subpart B of 29
CFR part 18 do not apply to this section.
This change is proposed to ensure
consistency with other ETA programs.
Section 658.501 Basis for
Discontinuation of Services
In 20 CFR part 658 subpart F, it is
proposed that language be added to
§ 658.501(c) to clarify the procedures a
State agency must follow when an
employer participating in the ES system
has allegedly not complied with the
terms of the temporary labor
certification.
In 20 CFR part 658 subpart G, it is
proposed that the references to
§§ 658.620 and 658.621 be deleted from
§ 658.600 because those sections are
reserved. It is also proposed that under
§ 658.601(a)(1)(ii), ‘‘Employment
Security Automated Reporting System
(ESARS) tables and Cost Accounting
Reports’’ be replaced with ‘‘the
Department’s ETA 9002A report, or any
successor report required by the
Department’’ to conform to what is
currently utilized.
In 20 CFR part 658 subpart H, the
Department proposes to replace
outdated or otherwise incorrect
terminology. For example, ETA is
replaced by the Department, State
agency is replaced by State Workforce
Agency (SWA), and JS is replaced with
ES.
Finally, recognizing that almost all
correspondence, formal filings and
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submissions, and other exchanges of
documents and information between the
public and the Department are
conducted electronically, these
regulations clarify that any required
filing or submission of documents, etc.
via mail or hard copy may also be
accomplished electronically.
V. Rulemaking Analyses and Notices
A. Executive Orders 12866 and 13563:
Regulatory Planning and Review
Executive Order (E.O.) 12866 directs
agencies, in deciding whether and how
to regulate, to assess all costs and
benefits of available regulatory
alternatives, including the alternative of
not regulating. E.O. 13563 is
supplemental to and reaffirms E.O.
12866. It emphasizes the importance of
quantifying present and future benefits
and costs; directs that regulations be
adopted with public participation; and
where relevant and feasible, directs that
regulatory approaches be considered
that reduce burdens, harmonize rules
across agencies, and maintain flexibility
and freedom of choice for the public.
Costs and benefits are to include both
quantifiable measures and qualitative
assessments of possible impacts that are
difficult to quantify. If regulation is
necessary, agencies should select
regulatory approaches that maximize
net benefits. OMB determines whether a
regulatory action is significant and,
therefore, subject to review.
Section 3(f) of E.O. 12866 defines a
‘‘significant regulatory action’’ as any
action that is likely to result in a rule
that may:
(1) Have an annual effect on the
economy of $100 million or more or
adversely affect in a material way the
economy, a sector of the economy,
productivity, competition, jobs, the
environment, public health or safety, or
State, local, or tribal governments or
communities;
(2) Create a serious inconsistency or
otherwise interfere with an action taken
or planned by another agency;
(3) Materially alter the budgetary
impact of entitlements, grants, user fees,
or loan programs or the rights and
obligations of recipients thereof; or
(4) Raise novel legal or policy issues
arising from legal mandates, the
President’s priorities, or the principles
set forth in E.O. 12866.
Summary of the analysis. The
Department provides the following
summary of the regulatory impact
analysis:
(1) The proposed rule is a ‘‘significant
regulatory action’’ under WIOA sec.
3(f)(4) of E.O. 12866; therefore, OMB has
reviewed the proposed rule.
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(2) The proposed rule would have no
cost impact on small entities.
(3) The proposed rule would not
impose an unfunded mandate on
Federal, State, local, or tribal
governments as defined by the
Unfunded Mandates Reform Act of
1995.
In total, the Department estimates that
this NPRM would have an average
annual cost of $38,437,779 and a total
10-year cost of $305,556,353 (with 7percent discounting). The largest
contributor to the cost is the
requirement related to the development
and continuous improvement of the
workforce development system,
followed by the career pathways
development and the colocation of
Wagner-Peyser services.
The Department was unable to
quantify several important benefits to
society due to data limitations or lack of
existing data or evaluation findings on
particular items. Based on a review of
empirical studies (primarily studies
published in peer-reviewed academic
publications and studies sponsored by
the Department), we identified a variety
of societal benefits: (1) Training services
increase job placement rates; (2)
participants in occupational training
experience higher reemployment rates;
(3) training is associated with higher
earnings; and (4) State performance
accountability measures, in combination
with the board membership provision
requiring employer/business
representation, can be expected to
improve the quality of the training and,
ultimately, the number and caliber of
job placements. We identified several
channels through which these benefits
might be achieved: (1) Better
information about training providers
will enable workers to make better
informed choices about programs to
pursue; (2) sanctions to underperforming States will serve as an
incentive for both States and local
entities to monitor performance more
effectively and to intervene early; and
(3) enhanced services for dislocated
workers, self-employed individuals, and
workers with disabilities will lead to the
benefits discussed above.
The Department requests comment on
the costs and benefits of this NPRM
with the goal of ensuring a thorough
consideration and discussion at the
Final Rule stage.
1. Need for Regulation
Public Law 113–128, the Workforce
Innovation and Opportunity Act,
enacted on July 22, 2014, statutorily
requires publication of proposed
implementation regulations not later
than 180 days after the date of
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enactment. The Department has
determined that implementing
regulations are necessary in order for
the WIOA program to be efficiently and
effectively operated and that such
regulations shall provide Congress and
others with uniform information
necessary to evaluate the outcomes of
the new workforce law.
2. Alternatives in Light of the Required
Publication of Proposed Regulations
OMB Circular A–4, which outlines
best practices in regulatory analysis,
directs agencies to analyze alternatives
outside the scope of their current legal
authority if such alternatives best satisfy
the philosophy and principles of E.O.
12866. While the WIOA provides little
regulatory discretion, the Department
assessed, to the extent feasible,
alternatives to the proposed regulations.
In this NPRM, the Department
considered significant alternatives to
accomplish the stated objectives of the
WIOA while also attempting to
minimize any significant economic
impact of the proposed rule on small
entities. This analysis considered the
extent to which WIOA’s prescriptive
language presented any regulatory
options which would also allow for
achieving the Act’s articulated program
goals. The Department, in many
instances, has reiterated the Act’s
language in the regulatory text and
expansions are offered for clarification
and guidance to the regulated
community. The additional regulatory
guidance should create more efficient
administration of the program by
reducing ambiguities and subsequent
State and local revisions as a result of
unclear statutory language.
In addition, the Department
considered and, where feasible,
proposed to issue sub-regulatory
guidance in lieu of additional regulatory
requirements. This policy option has
two primary benefits to small entities.
First, guidance will be issued following
publication of the rules, thereby
allowing States, local areas, and small
entities additional time to prepare their
compliance efforts. Second, this level of
guidance is more flexible in nature,
allowing for faster modifications and
any subsequent issuances, as necessary.
The Department considered three
possible alternatives:
(1) To implement the changes
prescribed in WIOA, as noted in this
NPRM, thereby satisfying the statutory
mandate; or
(2) To take no action, that is, to
attempt to implement the WIOA
utilizing existing Workforce Innovation
Act (WIA) regulations; or
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(3) To not publish regulation and
rescind existing WIA final regulations
and, thereby ignoring the WIOA
statutory requirement to publish
implementing regulations thus forcing
the regulated community to follow
statutory language for implementation
and compliance purposes.
The Department considered these
three options in accordance with the
provisions of E.O. 12866 and chose to
publish the WIOA NPRM, that is, the
first alternative. The Department
considered the second alternative, that
is, retaining existing WIA regulations as
the guide for WIOA implementation, but
believes that the requirements have
changed substantially enough that new
implementing regulations are necessary
for the workforce system to achieve
program compliance. The Department
considered the third alternative, that is,
to not publish an implementing
regulation and rescind existing WIA
final regulations, but rejected it because
the WIOA legislative language in and of
itself does not provide sufficient
detailed guidance to effectively
implement WIOA; thus, regulations are
necessary to achieve program
compliance.
In addition to the regulatory
alternatives noted above, the
Department also considered whether
certain aspects of the WIOA could be
phased in over a prescribed period of
time (different compliance dates),
thereby allowing States and localities
additional time for planning and
successful implementation. As a policy
option, this alternative appears
appealing in a broad theoretical sense
and where feasible (e.g., Wagner-Peyser
colocation of services), the Department
has recognized and made allowances for
different schedules of implementation.
However, upon further discussion and
in order to begin to achieve the intended
legislative benefits of the WIOA,
additional implementation delays
beyond those noted in this NPRM may
create potentially more issues than the
benefit of alternative starting dates.
Specifically, as many critical WIOA
elements follow upon the
implementation of other provisions
(e.g., technology and performance
reporting are intrinsically related),
discussions around delaying additional
aspects became quite complicated such
that the interrelatedness of the WIOA’s
requirements suggested that the
alternative of delaying additional
aspects was not operationally feasible.
Furthermore, the data necessary to
fully review this option does not yet
exist, and will not until local workforce
development boards (WDBs) conduct
procurements and announce awards.
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Similarly, performance standards will
be negotiated at a future time and based
upon a variety of factors including State
and local economic conditions,
resources, and priorities. Establishing
proposed standards in advance of this
statutorily-defined process may not be
an efficient or effective action. The
enforcement methods described in the
proposed rule are a reflection of
prescribed WIOA requirements and
entity size should not in and of itself
create alternative methods for
compliance or different time periods for
achieving compliance. Although the
Department has not determined
sufficiently valid reasons for altering
compliance timeframes in addition to
those described in the proposed rule for
small entities, we seek comment on this
issue.
The Department’s initial impact
analysis has concluded that by virtue of
WIOA’s prescriptive language,
particularly the requirement to publish
implementing regulations within 180
days, there are no viable regulatory
alternatives available other than those
discussed above.
The Department requests comment on
these or other alternatives, including
alternatives on the specific provisions
contained in this NPRM, with the goal
of ensuring a thorough consideration
and discussion at the Final Rule stage.
3. Analysis Considerations
The Department derives its estimates
by comparing the existing program
baseline, i.e., the benefits and costs
associated with current practices, which
at a minimum, must comply with the
2000 WIA Final Rule (65 FR 49294,
Aug. 11, 2000), against the additional
benefits and costs associated with
implementation of provisions contained
in this WIOA-required NPRM.
For a proper evaluation of the
additional benefits and costs of this
NPRM, the Department explains how
the required actions of States, WDBs,
employers and training entities,
government agencies, and other related
entities are linked to the expected
benefits and estimated costs. We also
considered, where appropriate, the
unintended consequences of the
proposed regulations introduced by this
NPRM. The Department makes every
effort, when feasible, to quantify and
monetize the benefits and costs of this
NPRM. The Department was unable to
quantify the benefits associated with the
proposed rule because of data
limitations and a lack of operational
data or evaluation findings on the
provisions of the proposed rule or
WIOA in general. Therefore, we
describe the benefits qualitatively. We
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followed the same approach when we
were unable to quantify the costs.
Throughout the benefit-cost analysis,
the Department made every effort to
identify and quantify all potential
incremental costs associated with the
implementation of WIOA as distinct
from what already exist under WIA,
WIOA’s predecessor statute. Despite our
best estimation efforts, however, the
Department might be double-counting
some activities that are already
happening under WIA. Thus, the costs
itemized below represent an upper
bound of the potential cost of
implementing the statute. The
Department requests comment on its
cost estimates, specifically in terms of
whether it has accurately captured the
additional costs associated with the
implementation of WIOA.
In addition to this NPRM, the
Departments of Labor and Education
have proposed a joint NPRM to
implement specific requirements of
WIOA that fall under both Departments’
purviews. While we acknowledge that
these proposed rules and their
associated impacts may not be wholly
independent from one another, we are
unaware of any reliable method of
quantifying the effects of this
interdependence. Therefore, our
analysis does not capture the correlated
impacts of the benefits and costs of this
proposed rule and those associated with
the other NPRMs. We request comments
from the public about the
appropriateness of this assumption.
In accordance with the regulatory
analysis guidance contained in OMB
Circular A–4 and consistent with the
Department’s practices in previous
rulemakings, this regulatory analysis
focuses on the likely consequences
(benefits and costs that accrue to
citizens and residents of the United
States) of this WIOA-required NPRM.
The analysis covers 10 years (2015
through 2024) to ensure it captures
major additional benefits and costs that
accrue over time. The Department
expresses all quantifiable impacts in
2013 dollars and use 3-percent and 7percent discounting following OMB
Circular A–4.
Exhibit 1 presents the estimated
number of entities expected to
experience an increase in level of effort
(workload) due to the proposed
requirements contained in this NPRM.
These estimates are provided by the
Department and are used extensively
throughout this analysis to calculate the
estimated cost of each proposed
provision.
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EXHIBIT 1—NUMBER OF AFFECTED
ENTITIES BY TYPE
Entity type
States impacted by DOL program requirements ................
States without collocated Wagner-Peyser offices and onestops ......................................
States without sector strategies
States that need to create Unified State Plans .....................
States that must pay their
share for proportionate use
of one-stop delivery systems
Local areas without collocated
Wagner-Peyser offices and
one-stops ..............................
Workforce development boards
Workforce development boards
selecting one-stop operators
Local Boards performing regional plan modifications ......
Number of
entities
6 56
7 10
2 21
2 14
2 54
2 100
2 580
2 250
2 300
Transfer Payments
In addition, the Department provides
an assessment of transfer payments
associated with transitioning the
nation’s public workforce system from
the requirements of WIA to new
requirements imposed by WIOA. In
accordance with OMB Circular A–4, we
consider transfer payments as payments
from one group to another that do not
affect total resources available to
society. For example, under WIOA,
partners are required to pay their share
for proportionate use of one-stop
delivery systems. Partners receive
sufficient Federal funding to cover these
payments, rendering this payment a
transfer rather than a new cost. Underperforming States will also receive
sanctions under WIOA, which are
similarly classified as transfers as they
result in the de-obligation of funds from
the State’s set-aside. In accordance with
the State allotment provisions noted in
WIOA sec. 127, the interstate funding
formula methodology is not
significantly different than that utilized
for the distribution of WIA funds. Final
program year grant allocations will
reflect WIOA requirements and are
under development.
One example of transfer payments is
the expectation that available U.S.
workers trained and hired who were
previously unemployed will no longer
need to seek new or continued
unemployment insurance benefits.
Assuming other factors remain constant,
the Department expects State
unemployment insurance expenditures
to decline because of the hiring of U.S.
6 Ibid.
7 Department
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workers following WIOA
implementation. The Department,
however, cannot quantify these transfer
payments due to a lack of adequate data.
In the subject-by-subject analysis, the
Department presents the additional
labor and other costs associated with the
implementation of each of the proposed
provisions in this NPRM. Exhibit 2
presents the compensation rates for the
occupational categories expected to
experience an increase in level of effort
(workload) due to the proposed rule. We
used wage rates from the Bureau of
Labor Statistics’ Mean Hourly Wage
Rate for private and State employees.8
For simplicity, we applied State-level
wages to local employees. We also used
wage rates from the Office of Personnel
Management’s Salary Table for the 2013
General Schedule for Federal
employees.9 We adjusted the wage rates
using a loaded wage factor to reflect
total compensation, which includes
health and retirement benefits. For the
State and local sectors, we used a
loaded wage factor of 1.55, which
represents the ratio of total
compensation 10 to wages.11 For Federal
employees, we used a loaded wage
factor of 1.69 based on internal data
from DOL. We then multiplied the
20817
loaded wage factor by each occupational
category’s wage rate to calculate an
hourly compensation rate.
The Department invites comments
regarding the assumptions used to
estimate the level of additional effort
required for the various proposed new
activities, as well as data sources for the
wages and the loaded wage factors that
reflect employee benefits used in the
analysis.
The Department uses the hourly
compensation rates presented in Exhibit
2 throughout this analysis to estimate
the additional labor costs for each
proposed provision.
EXHIBIT 2—CALCULATION OF HOURLY COMPENSATION RATES
Grade level
State and Local Employees
Administrative staff 12 .......................................................................................
Legal counsel staff 13 .......................................................................................
IT reprogramming or database development staff 14 ......................................
Managers 15 .....................................................................................................
Technical staff 16 ..............................................................................................
Average
hourly wage
Loaded wage
factor
Hourly
compensation
rate
a
Position
b
c=a×b
N/A
........................
........................
........................
........................
$17.96
40.68
38.91
45.32
43.38
1.55
........................
........................
........................
........................
$27.84
63.05
60.31
70.25
67.24
entities which are not yet compliant
with the proposed rule. The equation
below shows the method by which the
Department calculated the incremental
total cost for each provision over the 10year analysis period.
Aj
The total cost of each provision is
calculated as the sum of the total labor
cost and total non-labor cost incurred
each year over the 10-year period (see
Exhibit 3 for the 10-year cost of the
proposed rule by provision). The total
labor cost is the sum of the labor costs
for each labor type i (e.g., administrative
8 Bureau of Labor Statistics, May 2013, National
Occupational Employment and Wage Estimates,
retrieved from: https://www.bls.gov/oes/current/oes_
nat.htm.
9 The wage rate for Federal employees is based on
Step 5 of the General Schedule (source: OPM, 2013,
Salary Table for the 2013 General Schedule,
retrieved from: https://www.opm.gov/policy-dataoversight/pay-leave/salaries-wages/2013/generalschedule/gs_h.pdf).
10 BLS Employment Cost Index, 2013 Average
Series ID CMU3010000000000D,
CMU3010000000000P (source: Bureau of Labor
Statistics, 2013 Employer Costs for Employee
Compensation, retrieved from: https://www.bls.gov/
schedule/archives/ecec_nr.htm).
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Cj
i
n
j
m
T
Number of affected entities incurring
non-labor costs of type j,
Non-labor cost of type j,
Staff type,
Number of staff types,
Non-labor cost type,
Number of non-labor cost types,
Year.
11 The State and local loaded wage factor was
applied to all non-Federal employees. Discerning
the number of State and local-sector employees and
private-sector employees at the local level is
difficult; therefore, the Department used the State
and local-sector loaded wage factor (1.55) instead of
the private-sector wage factor (1.42) for all nonFederal employees to avoid underestimating the
costs.
12 BLS OES, May 2013, 43–0000 Office and
Administrative Support Occupations (https://
www.bls.gov/oes/current/999201.htm#43-0000).
13 BLS OES, May 2013, 23–10111 Lawyers
(http:
//www.bls.gov/oes/current/999201.htm#23-0000).
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14 BLS OES, May 2013, 15–1131 Computer
Programmers (https://www.bls.gov/oes/current/
oes151131.htm).
15 BLS OES, May 2013, 11–1021 General and
Operations Managers (https://www.bls.gov/oes/
current/999201.htm#11-0000).
16 BLS OES, May 2013, average for the following
occupational categories weighted by the number of
employees in State government: 15–1131 Computer
Programmers; 15–1132 Software Developers,
Applications; 15–1133 Software Developers,
Systems Software; and 15–1134 Web Developers
(https://www.bls.gov/oes/current/999201.htm#150000).
E:\FR\FM\16APP3.SGM
16APP3
EP16AP15.002</GPH>
Final Rule (65 FR 49294, Aug. 11, 2000);
however, some affected entities may
already be in compliance with some
provisions of the proposed rule. This
analysis estimates the incremental costs
that would be incurred by affected
Where,
Al Number of affected entities that would
incur labor costs,
Ni Number of staff of labor type i,
Hi Hours required per staff of labor type i,
Wi Mean hourly wage of staff of labor type
i,
Li Loaded wage factor of staff of labor type
i,
tkelley on DSK3SPTVN1PROD with REGISTER-BK 2 CV
The section-by-section analysis
presents the total incremental cost of the
proposed rule relative to the baseline,
i.e., the current practice. At a minimum,
all affected entities are currently
required to comply with the 2000 WIA
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staff, legal counsel staff, and managers)
multiplied by the number of affected
entities that will incur labor costs, Al.
The labor cost for each labor type i is
calculated by multiplying the number of
staff required to perform the proposed
activity, Ni; the hours required per staff
member to perform the proposed
activity, Hi; the mean hourly wage of
staff of labor type i, Wi; and the loaded
wage factor of staff of labor type i, Li.
The total non-labor cost is the sum of
the non-labor costs for each non-labor
cost type j (e.g., consulting costs)
multiplied by the number of affected
entities that will incur non-labor costs,
Aj.
4. Subject-by-Subject Analysis
The Department’s analysis below
covers the expected impacts of the
following proposed provisions of the
WIOA NPRM against the baseline of the
current practice under WIA: (a) New
State Workforce Development Board
Membership Requirements; (b)
Development and Continuous
Improvement of the Workforce
Development System; (c) Development
of Statewide Policies Affecting the
State’s One-stop System; (d)
Development of Strategies for
Technological Improvements; (e) State
Plan Modification; (f) Identification of
Regions; (g) Appoint New Local
Workforce Development Board and
Appropriate Firewalls; (h) Career
Pathways Development; (i)
Development of Proven and Promising
Practices; (j) Technology; (k) Selection
of the One-stop Operator; (l)
Coordination with Education Providers;
(m) Regional Plans; (n) Local and
Regional Plan Modification; (o)
Improved Information about Potential
Training Program Providers; (p)
Sanctions on Under-performing States;
(q) Colocation of Wagner-Peyser
Services; (r) Partners Required to Pay
their Share for Proportionate Use of
One-stop Delivery System; (s)
Establishing Training Provider
Eligibility Procedures, Including Adding
Registered Apprenticeship; (t)
Determining Eligibility of New and
Previously Eligible Providers; (u)
Biennial Review of Eligibility; (v)
Disseminating the Training Provider
List with Accompanying Information;
and (w) Migrant and Seasonal
Farmworker (MSFW) Housing.
The Department emphasizes that
many of the proposed provisions in this
WIOA-required NPRM are also existing
requirements under WIA. For example,
the requirement that States ‘‘prepare
annual reports’’ is a current requirement
under WIA that States routinely
undertake. Accordingly, our regulatory
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analysis focuses on ‘‘new’’ benefits,
costs, and transfers that can be
attributed exclusively to the enactment
of WIOA, as addressed in this NPRM.
Much of WIA’s infrastructure and
operations are carried forward under
WIOA and, therefore, are not considered
‘‘new’’ cost burdens under this NPRM.
retain employment; developing
customer outreach strategies; identifying
regions and designating local workforce
development areas; developing and
continuously improving the one-stop
system; and developing strategies to
train and inform staff.
a. New State Workforce Development
Board Membership Requirements
States must establish State WDBs in
accordance with the requirements of
WIOA sec. 101. Under WIOA sec.
101(b)(1)(C)(i), the majority of the State
WDB representatives must be from
businesses or organizations in the State.
These representatives must be owners or
chief executives or operating officers of
the businesses or executives with
optimum policy-making or hiring
authority. WIOA sec. 101(b)(1)(C)(iii)(I)
requires the Governor to appoint to the
State WDB representatives of
government that include the lead State
officials with primary responsibility for
each core program and two or more
Chief Elected Officials (CEOs) that
represent both cities and counties,
where appropriate. In accordance with
WIOA sec. 101(b)(2), State WDB
membership must represent the diverse
geographic areas of the State.
The Department estimated the State
WDBs’ annual labor costs for developing
or expanding sector strategies by
multiplying the estimated average
number of managers per State (1) by the
time required to review the workforce
development system (300 hours) and the
hourly compensation rate. We
performed the same calculation for the
technical staff (2 staff for 1,260 hours
each). We summed the labor cost for
both categories ($190,516) and
multiplied the result by the number of
States that do not have extensive and
systematic sector strategies (21). Over
the 10-year period, this calculation
yields an estimated recurring annual
cost of $4,000,838.
Similarly, the State WDBs’ annual
labor cost for expanding career
pathways strategies was estimated by
multiplying the estimated average
number of managers per State (1) by the
time required to review the workforce
development system (300 hours) and the
hourly compensation rate. The
Department repeated the calculation for
the technical staff (2 staff for 1,260
hours each). We summed the labor cost
for the two occupational categories
($190,516) and multiplied the result by
the number of States that do not have
policies for career pathways (27).17 Over
the 10-year period, this calculation
yields an estimated recurring annual
cost of $5,143,934.
The Department estimated the labor
cost that State WDBs would incur to
identify regions by multiplying the
estimated average number of managers
per State (1) by the time required to
review the workforce development
system (40 hours) and the hourly
compensation rate. We performed the
same calculation for the following
occupational categories: legal counsel
staff (1 staff member for 40 hours),
technical staff (1 staff member for 80
hours), and administrative staff (1 staff
member for 20 hours). We summed the
labor cost for all four personnel
categories ($11,268) and multiplied the
result by the number of States (56) to
estimate this one-time cost of $631,001.
Over the 10-year period, this calculation
Costs
To estimate State WDB costs, the
Department multiplied the estimated
average number of managers per State
(1) by the time required to adjust the
State WDB membership (20 hours) and
by the hourly compensation rate. We
repeated the calculation for the
following occupational categories: Legal
counsel staff (1 staff member for 15
hours), technical staff (2 staff for 20
hours each), and administrative staff (1
staff member for 20 hours). We summed
the labor cost for all four personnel
categories ($5,597) and multiplied the
result by the number of States (56). This
would result in a one-time cost of
$313,435 in the first year of the
proposed rule, which amounts to an
average annual cost of $31,343.
b. Development and Continuous
Improvement of the Workforce
Development System
WIOA sec. 101(d)(3)(A) through (G)
require that the State WDB assist the
Governor in the development and
continuous improvement of the State’s
workforce development system,
including identifying barriers and
means for removing barriers to aligning
programs and activities; developing or
expanding sector-based training and
career pathways proven to support
individuals to seeking to enter and
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Costs
17 The number of States that have not established
career pathways is provided in the ‘‘National
Dialogue on Career Pathways Viewing Party
Guide.’’
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yields an average annual cost of
$63,100.
The sum of these costs yields a total
one-time cost of $631,001 and an annual
cost of $9,144,772, which results in a
total average annual cost of $9,207,872
for individuals from the State level to
review the workforce development
system.
time required to develop strategies (20
hours) and the hourly compensation
rate. We repeated the calculation for the
technical staff (1 staff member for 40
hours). We summed the labor cost for
both categories ($4,094) and multiplied
the result by the number of States (56)
to estimate a recurring annual cost of
$229,291.
c. Development of Statewide Policies
Affecting the State’s One-Stop System
Under WIOA sec. 101(d)(6), State
WDBs must assist State Governors in
developing and reviewing statewide
policies affecting the coordinated
provision of services through the State’s
one-stop delivery system, including
policies concerning objective criteria for
Local Boards to assess one-stop centers,
guidance for the allocation of one-stop
center infrastructure funds, and policies
relating to the roles and contributions of
one-stop partners within the one-stop
delivery system.
e. State Plan Modification
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Costs
The Department estimated the labor
cost that State WDBs would incur by
multiplying the estimated average
number of managers per State (1) by the
time required to provide objective
criteria and procedures (40 hours) and
the hourly compensation rate. We
performed the same calculation for the
legal counsel staff (1 staff member for 40
hours) and technical staff (2 staff for 120
hours). We summed the labor cost for all
three personnel categories ($21,469) and
multiplied the result by the number of
States (56) to estimate this one-time cost
at $1,202,284, which results in an
average annual cost of $120,228.
d. Development of Strategies for
Technological Improvements
Under WIOA sec. 101(d)(7), State
WDBs must assist State Governors in the
development of strategies for
technological improvements to facilitate
access and quality of services and
activities provided through the one-stop
delivery system. These strategies
include improvements to enhance
digital literacy skills, accelerate
acquisition of skills and recognized
post-secondary credentials by
participants, strengthen professional
development of providers and
workforce professionals, and ensure
technology is accessible to individuals
with disabilities and individuals
residing in remote areas.
Costs
The Department estimated the labor
cost that State WDBs would incur by
multiplying the estimated average
number of managers per State (1) by the
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Under WIOA sec. 102(c)(3)(B), a
Governor may submit a modification of
its Unified State Plan at any time during
the 4-year period of the Plan. Under
WIOA sec. 102(c)(3)(A), at a minimum,
a State is required to submit
modifications to its Unified State Plan at
the end of the first 2-year period of any
4-year plan and also under specific
circumstances.
The Department expects that the
initial 4-year State Plans would be
highly speculative. Therefore, we
anticipate that some States would make
substantial modifications to the State
Plans based on the experiences gained
by operating under WIOA for the first
two years. Based on past experience, we
do not expect any subsequent
modifications to present a substantial
burden.
Costs
The Department estimated the labor
cost the State WDBs would incur by
multiplying the estimated average
number of managers per State (1) by the
time required to review and modify a 4year State Plan (10 hours) and the
hourly compensation rate. We repeated
the calculation for the following labor
categories: legal counsel staff (1 staff
member for 4 hours), technical staff (2
staff for 10 hours each), and
administrative staff (1 staff member for
4 hours). We summed the labor cost for
all four personnel categories ($2,411)
and multiplied the result by the number
of States (56) to estimate this one-time
cost as $135,005, which results in an
average annual cost of $13,501.
f. Identification of Regions
Under WIOA sec. 101(d)(3)(E), State
WDBs must assist State Governors in the
identification of regions, including
planning regions, for the purposes of
WIOA sec. 106(a), and the designation
of local areas under WIOA sec. 106,
after consultation with Local Boards and
CEOs. According to WIOA sec.
106(a)(1), identification of regions is
part of the process for developing the
State Plan, and is necessary to receive
an allotment under other provisions of
the statute.
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20819
Costs
The Department estimated this labor
cost for State WDBs by first multiplying
the estimated average number of
managers per State (2) by the time
required to identify regions in the State
(40 hours) and the hourly compensation
rate. We performed the same calculation
for the following occupational
categories: legal counsel staff (1 staff
member for 10 hours), technical staff (3
staff for 15 hours each), and
administrative staff (2 staff for 10 hours
each). We summed the labor cost for all
four personnel categories ($9,833) and
multiplied the result by the number of
States (56) to estimate this cost as
$550,633, occurring in 2016 and 2020
and resulting in an average annual cost
of $110,127.
g. Appoint New Local Workforce
Development Board and Appropriate
Firewalls
The Local WDB is appointed by the
CEOs in each local area in accordance
with State criteria established under
WIOA sec. 107(b), and is certified by the
Governor every two years, in accordance
with WIOA sec. 107(c)(2). The
procedures for sole-source selection of
one-stop operators include requirements
about maintaining written
documentation and developing
appropriate firewalls and conflict-ofinterest policies. A Local Board can be
selected as a one-stop operator through
a sole-source procurement only if the
board establishes sufficient firewalls
and conflict-of-interest policies and
procedures that are approved by the
Governor.
Costs
The Department estimated the labor
costs incurred by WDBs by multiplying
the estimated average number of
managers per WDB (1) by the time
required to appoint a new Local Board
(20 hours) and the hourly compensation
rate. We performed the same calculation
for the following occupational
categories: legal counsel staff (1 staff
member for 15 hours), technical staff (2
staff for 20 hours each), and
administrative staff (1 staff member for
20 hours). We summed the labor cost for
the four occupational categories ($5,597)
and multiplied the result by the number
of WDBs (580) to estimate this one-time
cost as $3,246,289, which results in an
average annual cost of $324,629.
Additionally, the Department
estimated the labor cost for WDBs to
develop written agreements by
multiplying the estimated average
number of managers per WDB (1) by the
time required to develop written
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agreements (8 hours) and the hourly
compensation rate. We repeated the
calculation for the legal counsel staff (1
staff member for 8 hours) and technical
staff (1 staff member for 20 hours). We
summed the labor cost for the three
occupational categories ($2,411) and
multiplied the result by the number of
WDBs (580) to estimate this one-time
cost as $1,398,484, which results in an
average annual cost of $139,848.
In total, these calculations yield a
one-time cost of $4,644,773 which
results in an average annual cost of
$464,477 for individuals from the local
level to appoint new boards and set
administrative firewalls that avoid
conflicts of interest.
number of managers per State (1) by the
time required to identify and promote
proven strategies (20 hours) and the
hourly compensation rate. We
performed the same calculation for the
following occupational categories: legal
counsel staff (1 staff member for 10
hours), technical staff (1 staff member
for 40 hours), and administrative staff (1
staff member for 15 hours). We summed
the labor cost for all four personnel
categories ($5,143) and multiplied the
result by the number of States (56) to
estimate this recurring annual cost of
$287,985.
Costs
The Department estimated the labor
cost for WDBs by first multiplying the
estimated average number of managers
per WDB (1) by the time required to
develop and implement career pathways
(80 hours) and the hourly compensation
rate. We performed the same calculation
for the following occupational
categories: legal counsel staff (1 staff
member for 10 hours), technical staff (1
staff member for 80 hours), and
administrative staff (1 staff member for
20 hours). We summed the labor cost for
all four personnel categories ($12,186)
and multiplied the result by the number
of WDBs (580) to estimate this recurring
annual cost of $7,067,938.
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h. Career Pathways Development
Under WIOA sec. 107(d)(5), Local
Boards must, with representatives of
secondary and post-secondary
education programs, lead efforts to
develop and implement career pathways
within the local area by aligning the
employment, training, education, and
supportive services that are needed by
adults and youth, particularly
individuals with barriers to
employment.
j. Technology
Under WIOA sec. 107(d)(7), Local
Boards must develop strategies for using
technology to maximize the accessibility
and effectiveness of the local workforce
development system for employers,
workers, and jobseekers by facilitating
access to services provided through the
one-stop delivery system, facilitating
connections among the intake and casemanagement information systems of the
one-stop partner programs, identifying
strategies for better meeting the needs of
individuals with barriers to
employment, and leveraging resources
and capacity within the local workforce
development system.
Costs
The Department estimated the cost for
Local WDBs by first multiplying the
estimated average number of managers
per WDB (1) by the time required to
develop technology strategies (20 hours)
and the hourly compensation rate. We
performed the same calculation for the
technical staff (1 staff member for 40
hours). We summed the labor cost for
these two categories ($4,094) and
multiplied the result by the number of
WDBs (580) to estimate this recurring
annual cost of $2,374,798.
i. Development of Proven and Promising
Practices
Under WIOA sec. 107(d)(6), Local
Boards must lead efforts in the local
area to identify and promote proven and
promising strategies and initiatives for
meeting the needs of employers,
workers, and jobseekers (including
individuals with barriers to
employment), and identify and
disseminate information on proven and
promising practices carried out in other
local areas for meeting such needs.
Costs
For State WDBs, the Department
estimated this labor cost by first
multiplying the estimated average
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k. Selection of One-Stop Operators
Under WIOA sec. 107(d)(10)(A),
consistent with WIOA sec. 121(d), and
with the agreement of the CEO for the
local area, Local Boards must designate
or certify one-stop operators and may
terminate for cause the eligibility of
such operators. WIOA sec. 121(d)(2)(A)
allows for selection of a one-stop
operator only through a competitive
process.
Costs
The Department estimated the cost for
Local WDBs by first multiplying the
estimated average number of managers
per WDB (1) by the time required to
designate one-stop operators (80 hours)
and the hourly compensation rate. We
performed the same calculation for the
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following occupational categories: legal
counsel staff (1 staff member for 40
hours), technical staff (2 staff for 120
hours each), and administrative staff (1
staff member for 40 hours). We summed
the labor costs for these four personnel
categories ($25,393) and multiplied the
result by the number of WDBs (580) to
estimate this quadrennial cost of
$6,348,180. Over the 10-year period,
this calculation yields an average
annual cost of $1,904,454.
l. Coordination With Education
Providers
Under WIOA sec. 107(d)(11), Local
Boards must coordinate activities with
education and training providers in the
local area, including providers of
workforce investment activities,
providers of adult education and
literacy activities under title II of WIOA,
certain providers of career and technical
education, and local agencies
administering certain plans under the
Rehabilitation Act of 1973.
Costs
For State WDBs, the Department
estimated this labor cost by first
multiplying the estimated average
number of managers per State (1) by the
time required to coordinate activities
with local education and training
providers (30 hours) and the hourly
compensation rate. We performed the
same calculation for the following
occupational categories: legal counsel
staff (1 staff member for 10 hours),
technical staff (1 staff member for 40
hours), and administrative staff (1 staff
member for 10 hours). We summed the
labor cost for all four personnel
categories ($5,706) and multiplied the
result by the number of States (56) to
estimate this recurring annual cost of
$319,528.
m. Regional Plans
WIOA sec. 106(c)(2) requires Local
Boards and CEOs within a planning
region to prepare, submit, and obtain
approval of a single regional plan that
includes a description of the activities
described in the statute and that
incorporates local plans for each of the
local areas in the planning region.
Costs
For Local WDBs, the Department
estimated this cost by first multiplying
the estimated average number of
managers per WDB (2) by the time
required to prepare, submit, and obtain
approval of a single regional plan (20
hours) and the hourly compensation
rate. We performed the same calculation
for the following occupational
categories: legal counsel staff (1 staff
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20821
cost of $1,345,766, occurring once every
four years. Over the 10-year period, this
calculation yields an average annual
cost of $269,153.
The sum of these costs yields a 10year cost of $4,089,800, which results in
an average annual cost of $408,980 for
individuals from the Local WDBs to
review and modify the 4-year plan.
The sanctions will alter Federal
transfer payments.18 Transfer payments,
as defined by OMB Circular A–4, are
payments from one group to another
that do not affect total resources
available to society. The Department
requests comment and data that would
allow for estimation of the transfer that
would result from the sanctions
provision.
n. Local and Regional Plan Modification
Under WIOA sec. 108(a), each Local
Board, in partnership with the CEO,
must review the local plan every 2 years
and submit a modification as needed,
based on significant changes in labor
market and economic conditions and
other factors. These factors include
changes to local economic conditions,
changes in the financing available to
support WIOA title I and partnerprovided WIOA services, changes to the
Local Board structure, or a need to
revise strategies to meet performance
goals. If the local area is part of a
planning region, the Local Board must
comply with WIOA sec. 106(c) in the
preparation and submission of a
regional plan.
tkelley on DSK3SPTVN1PROD with REGISTER-BK 2 CV
member for 8 hours), technical staff (2
staff for 40 hours), and administrative
staff (1 staff member for 8 hours). We
summed the labor cost for the four
occupational categories ($8,916) and
multiplied the result by the number of
WDBs (580) to estimate this cost as
$5,171,336, which occurs in 2016 and
2020. This results in an average annual
cost of $1,034,267.
o. Improved Information About
Potential Training Program Providers
Costs
At the State level, the Department
estimated the costs resulting from labor
requirements by first multiplying the
estimated average number of managers
per State (1), the time required to
evaluate State performance (40 hours),
and the hourly compensation rate. We
performed the same calculation for
technical staff (1 staff member for 80
hours) and administrative staff (1 staff
member for 40 hours). We summed the
labor cost for all three personnel
categories ($9,302) and multiplied the
result by the number of States (56) to
estimate a recurring annual transfer of
$520,939.
The Department estimates that 56
States will be impacted by this annual
cost because we have determined that
56 States will calculate, annually, the
performance levels of each State’s core
programs. Each State will do this on an
annual basis in order to determine if the
State is subject to sanctions, as
discussed in proposed § 677.190 of this
part, by comparing those levels against
the negotiated levels of performance
that the State has provided for in the
State Plan.
Costs
For Local WDBs, the Department
estimated the local plan modification
cost by first multiplying the estimated
average number of managers per WDB
(1) by the time required to review and
modify the 4-year plan (10 hours) and
the hourly compensation rate. We
performed the same calculation for the
following occupational categories: Legal
counsel staff (1 staff member for 4
hours), technical staff (2 staff for 10
hours), and administrative staff (1 staff
member for 4 hours). We summed the
labor cost for all four personnel
categories ($2,411) and multiplied the
result by the number of WDBs (580) to
estimate this one-time cost of
$1,398,269, occurring in 2018. Over the
10-year period, this calculation yields
an average annual cost of $139,827.
Similarly, the Department estimated
the regional plan modification cost for
Local WDBs by first multiplying the
estimated average number of managers
per regional board (2) by the time
required to review and modify the 4year plan (10 hours) and the hourly
compensation rate. We performed the
same calculation for the following
occupational categories: legal counsel
staff (1 staff member for 4 hours),
technical staff (2 staff for 20 hours each),
and administrative staff (1 staff member
for 5 hours). We summed the labor cost
for all four personnel categories ($4,486)
and multiplied the result by the number
of regional boards (580) to estimate a
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WIOA sec. 116 establishes
performance accountability measures
and performance reporting requirements
to assess the effectiveness of States and
local areas in achieving positive
outcomes for individuals served by the
core programs. The performance
accountability measures will provide
workers with better information about
potential training program providers
and enable them to make more informed
choices about programs to pursue. The
information analyzed and published by
the boards about local labor markets
also will assist trainees and providers in
targeting their efforts and developing
reasonable expectations about
outcomes.
Costs
At the State level for DOL programs,
the Department estimated this labor cost
by first multiplying the estimated
average number of managers per State
(1) by the time required to provide
additional information about eligible
training program providers (32 hours)
and the hourly compensation rate. We
performed the same calculation for the
technical staff (2 staff for 40 hours each)
and administrative staff (1 staff member
for 80 hours). We summed the labor cost
for all three personnel categories
($9,854) and multiplied the result by the
number of States (56) to estimate this
recurring annual cost of $551,826.
p. Sanctions on Under-Performing
States
Section 116(f)(1)(B) of WIOA requires
the Department to assess a sanction if ‘‘a
State fails to submit a report under
subsection (d) for any program year.’’
Three reports are required under WIOA
sec. 116(d): The State annual
performance reports, the local area
performance reports, and the ETP
performance reports. Of these, only the
State annual performance reports must
be submitted by the State to the
Secretary of Labor. Section 116(f)(1) of
WIOA requires that sanctions for
performance failure be based on the
primary indicators of performance.
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q. Colocation of Wagner-Peyser Services
WIOA sec. 121(e)(3) requires
colocation of Wagner-Peyser
Employment Service offices and onestop centers established under title I of
WIOA. Colocation is intended to
improve service delivery, avoid
duplication of services, and enhance
coordination of services, including
location of staff to ensure access to
services in underserved areas.
Costs
At the State level for DOL programs,
the Department estimated this labor cost
by first multiplying the estimated
average number of managers per State
(10), the time required to collocate
Wagner-Peyser Services (40 hours), and
the hourly compensation rate. We
18 The Department transfers funds to each State
through a formal grant process. States may set aside
a portion of these funds for discretionary use under
WIOA. If a State were sanctioned, we would deobligate the funds comprising the penalty from the
State’s set-aside, thereby reducing funding without
incurring additional costs.
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performed the same calculation for the
following occupational categories: legal
counsel staff (10 staff for 10 hours each),
technical staff (20 staff at 25 hours
each), and administrative staff (10 staff
for 5 hours each). We summed the labor
cost for all four personnel categories
($69,415) and multiplied the result by
the number of States without collocated
Wagner-Peyser Services (10) to estimate
a one-time cost of $694,152, which
results in an annual cost of $69,415.
At the State level, the Department
estimated consultant costs by
multiplying the estimated consultant
costs ($10,000) by the number of States
without collocated Wagner-Peyser
Services (10). This calculation yields an
estimated one-time cost of $100,000,
resulting in an average annual cost of
$10,000.
At the local level, the Department
estimated labor costs by first
multiplying the estimated average
number of managers for all local entities
within a State (100), the time required
to collocate Wagner-Peyser Services (40
hours), and the hourly compensation
rate. We performed the same calculation
for the technical staff (200 staff for 25
hours each) and administrative staff
(100 staff for 5 hours each). We summed
the labor cost for all three personnel
categories ($631,098) and multiplied the
result by the number of local areas
without collocated Wagner-Peyser
offices and one-stops (100) to estimate a
one-time cost of $63,109,800, resulting
in an annual cost of $6,310,980.
The sum of these costs yields a onetime cost of $63,903,952, which results
in an average annual cost of $6,390,395
for individuals from the State and local
levels to collocate Wagner-Peyser
Services.
tkelley on DSK3SPTVN1PROD with REGISTER-BK 2 CV
r. Partners Required To Pay Their Share
for Proportionate Use of One-stop
Delivery System
An important goal under both the
local and State funding mechanisms is
to ensure that each one-stop partner
contributes its proportional share to the
funding of one-stop infrastructure costs,
consistent with Federal cost principles.
Under WIOA sec. 121(h), in general,
State Governors must ensure that costs
are appropriately shared by one-stop
partners. Contributions must be based
on proportional share of use and all
funds must be spent solely for allowable
purposes in a manner consistent with
the applicable authorizing statute and
all other applicable legal requirements,
including Federal cost principles.
This provision will alter Federal
transfer payments, and the Department
requests comment and data that would
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allow for estimation of this rule-induced
transfer.19
Costs
At the State level, the Department
estimated costs related to this provision
(e.g., the cost of developing memoranda
of understanding) by first multiplying
the estimated average number of
managers per State (50), the time
required for States to comply with
payment requirements proportional to
use of one-stop delivery systems (40
hours), and the hourly compensation
rate. We performed the same calculation
for the following occupational
categories: Legal counsel staff (50 staff
for 1 hour each), technical staff (100
staff for 40 hours each), and
administrative staff (50 staff for 5 hours
each). We summed these products for
all four personnel categories ($419,560)
and multiplied the result by the number
of States that need to pay their
proportional share (54) to estimate
transfer of $22,656,251 occurring once
every three years, resulting in an
average annual transfer of $6,796,875.
s. Establishing Training Provider
Eligibility Procedures, Including Adding
Registered Apprenticeship
Under WIOA sec. 122, the Governor,
after consultation with the State WDB,
must establish criteria, information
requirements, and procedures regarding
the eligibility of providers of training
services to receive funds under WIOA
for the provision of training services in
local areas in the State. Training
providers, including those operating
under the individual training account
exceptions, must qualify as ETPs, except
for those engaged in on-the-job and
customized training (for which the
Governor should establish qualifying
procedures). Registered apprenticeship
programs are included in the ETPL,
provided the program remains eligible.
Only providers that the State determines
to be eligible under WIOA sec. 122 may
receive training funds under WIOA title
I–B.
Costs
At the State level, the Department
estimated this cost by first multiplying
the estimated average number of
managers per State (1), the time needed
to establish procedures for training
provider eligibility (40 hours), and the
19 The Department distributes funds through a
combination of multi-step formula distributions,
Title III (Wagner-Peyser) distribution, and national
grant competitions that award funds directly to
partners. The Department supplies funding to cover
payments for partners proportionate to their use of
one-stop delivery systems, although partners may
instead opt to use pay-in-kind or other leveraged
funds.
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hourly compensation rate. We
performed the same calculation for the
legal counsel staff (1 staff member for 20
hours) and technical staff (1 staff
member for 80 hours). We summed the
labor cost for all three personnel
categories ($9,450) and multiplied the
result by the number of States that need
to pay their proportional share (56) to
estimate this one-time cost of $529,202,
resulting in an annual cost of $52,920.
t. Determining Eligibility of New and
Previously Eligible Providers
Under the requirements of WIOA sec.
122, the procedures for determining
eligibility of providers are established
by the Governor, after consultation with
the State WDB and include application
and renewal procedures, eligibility
criteria, and information requirements.
Costs
At the State level for DOL programs,
the Department estimated this labor cost
by first multiplying the estimated
average number of managers per State
(1), the time needed to determine
provider eligibility (40 hours), and the
hourly compensation rate. We
performed the same calculation for the
technical staff (2 staff for 110 hours
each) and administrative staff (2 staff for
50 hours each). We summed the labor
cost for all three personnel categories
($20,386) and multiplied the result by
the number of States (56) to estimate a
one-time cost of $1,141,628, resulting in
an annual cost of $114,163.
u. Biennial Review of Eligibility
Under WIOA sec. 122(c)(2), training
provider eligibility criteria established
under this provision must include
procedures for biennial review and
renewal of eligibility for providers of
training services.
Costs
At the State level, the Department
estimated this labor cost by first
multiplying the estimated average
number of managers per State (1), the
time needed to perform the eligibility
review (30 hours), and the hourly
compensation rate. We performed the
same calculation for the technical staff
(2 staff for 60 hours each) and
administrative staff (2 staff for 30 hours
each). We summed the labor cost for all
three personnel categories ($11,846) and
multiplied the result by the number of
States (56) to estimate cost of $663,395
that occurs four times over the 10-year
analysis period, that is, an annual cost
of $265,358.
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v. Disseminating the Training Provider
List With Accompanying Information
Under WIOA sec. 122(d), the
Governor must ensure preparation of an
appropriate list of providers determined
to be eligible under this section to offer
a program in the State (and, as
appropriate, in a local area),
accompanied by information identifying
the recognized post-secondary
credential offered by the provider and
other appropriate information. The list
must be provided to the Local Boards in
the State, and made available to such
participants and to members of the
public through the one-stop delivery
system in the State.
Costs
At the State level, the Department
estimated this labor cost by first
multiplying the estimated average
number of managers per State (1), the
time needed to disseminate the ETPL
with accompanying information (30
hours), and the hourly compensation
rate. We performed the same calculation
for the following occupational
categories: Technical staff (2 staff for 80
hours each), administrative staff (2 staff
for 45 hours), and IT reprogramming
(database development) staff (2 staff for
125 hours each). We summed the labor
cost for all four personnel categories
($30,449) and multiplied the result by
the number of States (56) to estimate a
one-time cost of $1,705,125, resulting in
an annual cost of $170,513.
tkelley on DSK3SPTVN1PROD with REGISTER-BK 2 CV
w. Migrant and Seasonal Farmworker
Housing
While bringing the Department’s
housing standards at 20 CFR 654 (ETA
Standards) under the Occupational
Safety and Health Administration
(OSHA) provisions set forth in 29 CFR
1910.142 will not completely remedy
many of the inadequate housing
conditions common among agricultural
housing facilities, the Department
anticipates the change will: (1) Update
the housing standards as the OSHA
provisions conform to slightly more
modern standards; (2) streamline the
compliance process for employers who
will only need to look to one place to
comply with housing standards; and (3)
ease the administrative burden on State
and Federal employees who conduct
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housing inspections as they will only
need to learn and rely upon one set of
housing standards.
In estimating the impact of the
proposed changes to 20 CFR 654, the
Department consulted various agencies
within DOL to uncover pertinent data.
Such data includes the number of H–2A
employers approved through the Office
of Foreign Labor Certification (OFLC).
The Department believes that reviewing
H–2A employer data is useful as it
represents a subset of population (and,
therefore, a minimum) of the total
number of employers that may be
offering housing to agricultural workers
and who may be affected by the
proposed changes. The Department
estimates that of the approximately
6,400 20 employers nationally who hire
foreign workers under the H–2A
program and who provide housing, the
majority will not be affected by the
proposed changes because it estimates
that, nationally, OSHA housing
standards apply more frequently than
the ETA Standards in the context of
housing investigations. Specifically, the
Department estimates that every region,
except the Northeast and Pacific
Northwest, has agricultural housing that
predominantly falls under the OSHA
standards. However, the situation will
vary from State to State. For example,
Colorado reported that approximately
84 percent of the agricultural housing
inspected in the State from July 1, 2014
to January 29, 2015 falls under the ETA
standards. Wyoming reported that 64
percent of the housing inspections over
the course of a year fell under ETA
standards.
However, the housing data currently
available to DOL is limited. The
Department collects agricultural
housing information as it pertains to
employers’ compliance with the
appropriate standards. The Department
does not collect or track the number of
agricultural housing units nationally
that fall under the ETA versus the
OSHA standards. To better understand
the impact of the proposed regulations,
20 This number is derived from OFLC data on
employers that have submitted H–2A applications.
The Department extrapolated the number of unique
employers from the full list of applications to avoid
duplication and to identify the fewest employers
that may be impacted by these proposed changes.
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20823
the Department would like to know: (1)
The approximate number of agricultural
housing units in the United States
provided by agricultural employers for
farmworkers; (2) the approximate
percentage of the total farmworker
housing units that currently fall under
the ETA Standards set forth in 20 CFR
654; and (3) the estimated cost of
bringing those housing units from the
ETA Standards into compliance with
the OSHA Standards. The Department
would appreciate public feedback on
the aforementioned data elements.
Specifically, it would be helpful for
DOL’s analysis if: (1) There are State
Workforce Agencies or States that
would share any data on the total
number of employer-provided
agricultural housing units in the State
and the percentage of those that are
subject to the ETA Standards; and (2)
agricultural employers would furnish
estimated costs for bringing their
farmworker housing units from ETA to
OSHA Standards. The Department
appreciates any such information that
could assist in the development of the
overall impact analysis.
5. Summary of Analysis
Exhibit 3 summarizes the annual and
total costs of the proposed rule. It
summarizes the total 10-year total costs
and the average annualized costs for
each provision of the proposed rule. The
exhibit also presents high-level benefits
resulting from full WIOA
implementation for each provision.
These qualitative forecasts are
predicated on program experience and
are outcomes for which data will only
become available after implementation.
The Department estimates the average
annual cost of the proposed rule over
the 10-year period of analysis at $38.4
million. The largest contributor to this
cost is the provision related to the
development and improvement of the
workforce development system, which
amounts to an estimated $9.2 million
per year. The next largest cost results
from career pathways development at
$7.1 million per year, followed by the
cost of partners required to pay their
share for proportionate use of one-stop
delivery system at an estimated $6.8
million per year.
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EXHIBIT 3—COSTS OF THE PROPOSED RULE BY PROVISION
Total 10-year
cost
(undiscounted)
Provision
Percent of
total cost
$313,435
$31,343
0.08
92,078,720
9,207,872
23.96
1,202,284
120,228
0.31
2,292,909
229,291
0.60
(e) State Plan Modification .........................
135,005
13,501
0.04
(f) Identification of Regions .........................
1,101,266
110,127
0.29
(g) Appoint New Local Workforce Development Board and Appropriate Firewalls.
4,644,773
464,477
1.21
(h) Career Pathways Development ............
70,679,380
7,067,938
18.39
(i) Development of Proven and Promising
Practices.
(j) Technology .............................................
2,879,850
287,985
0.75
23,747,984
2,374,798
6.18
(k) Selection of the One-stop Operator ......
19,044,540
1,904,454
4.95
(l) Coordination with Education Providers ..
3,195,282
319,528
0.83
(m) Regional Plans .....................................
10,342,671
1,034,267
2.69
(n) Local and Regional Plan Modification ...
4,089,800
408,980
1.06
(o) Improved Information about Potential
Training Program Providers.
5,518,258
551,826
1.44
(p) Sanctions on Under-performing States
5,209,389
520,939
1.36
(q) Co-location of Wagner-Peyser Services
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(a) New State Workforce Development
Board Membership Requirements.
(b) Development and Continuous Improvement of the Workforce Development
System.
(c) Development of Statewide Policies Affecting the State’s One-stop System.
(d) Development of Strategies for Technological Improvements.
Average annual
cost
(undiscounted)
63,903,952
6,390,395
16.63
(r) Partners Required to Pay their Share
for Proportionate Use of One-stop Delivery System.
(s) Establishing Training Provider Eligibility
Procedures, Including Adding Registered
Apprenticeship.
(t) Determining Eligibility of New and Previously Eligible Providers.
67,968,752
6,796,875
17.68
529,202
52,920
0.14
1,141,628
114,163
0.30
(u) Biennial Review of Eligibility ..................
2,653,580
265,358
0.69
(v) Disseminating the Training Provider List
with Accompanying Information.
1,705,125
170,513
0.44
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Qualitative benefit highlights
Policy implementation efficiencies from reduced size and maneuverability.
Mission clarification and ongoing commitment should foster future envisioned
benefits continuing to accrue.
Mission clarification for State WDBs and
overall system building capacity.
Recognition of the efficiencies generated
by technology and enhanced management capabilities especially utilizing outcome data.
More efficient use of public resources; enhanced customer service; improved program management based on actual client data.
Enhanced employer and employee services as a result of recognition of real
labor markets (without artificial jurisdictional boundaries).
Efficient use of board time; avoids conflicts of interest and negative publicity;
administrative savings.
Improved educational and employment
outcomes; potential employees are better prepared for jobs.
Improved job placements and customer
service.
Improved customer service; better decision-making from improved service level
data; reduced paper costs, improved
collaboration across service partners;
improved customer service planning; reduced duplication of service intakes.
Improved public confidence in the process; avoided conflicts of interest.
Improved preparation of workers and
youth for future jobs; enhanced placements and outcomes.
Savings from expanded collaboration; increased services to customers; reduced
administrative overhead.
Increased coordination of services leading
to resource efficiencies; transparency.
Improved customer decision-making; linkage of resources to outcomes and accountability for training and improved
placement outcomes.
Improved services; better use of WIOA
funds; enhanced recognition of performance imperatives by States and local
areas; more accountability.
Reduced administrative overhead; improved service delivery and customer
service; more efficient and effective
public administration.
Expanded system cohesion; improved
service delivery; avoidance of fragmented or duplication of services.
Increased training opportunities, especially
for youth; effective administration linking
to accountability and outcomes.
Increased transparency; uniform treatment
of ETPs; reduced incidents of non-meritorious performance.
Increased competition leading to more and
better placements.
More informed customer choice; clearer
link of training resources to desired outcomes; more transparency.
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EXHIBIT 3—COSTS OF THE PROPOSED RULE BY PROVISION—Continued
Total 10-year
cost
(undiscounted)
Provision
(w) Migrant and Seasonal Farmworker
Housing.
Average annual
cost
(undiscounted)
Percent of
total cost
Qualitative benefit highlights
Not quantified.
Total .....................................................
384,377,787
38,437,778
More streamlined compliance process for
employers who will only need to look to
one place to comply with housing standards. Eased administrative burden on
State and Federal employees who conduct housing inspections as they will
only need to learn and rely on one set
of housing standards.
100.00
Note: Totals might not sum due to rounding.
Exhibit 4 summarizes the first-year
cost of each provision of the proposed
rule. The Department estimates the total
first-year cost of the proposed rule at
$94.6 million. The largest contributor to
the first-year cost is the provision
related to the colocation of WagnerPeyser services $63.9 million. The next
largest first-year cost results from
development and continuous
improvement of the workforce
development system, amounting to $9.8
million, followed by the cost of career
pathways development at $7.1 million.
EXHIBIT 4—FIRST-YEAR COST OF THE PROPOSED RULE BY PROVISION
Total first-year
cost
(a) New State Workforce Development Board Membership Requirements ...............................................
(b) Development and Continuous Improvement of the Workforce Development System ..........................
(c) Development of Statewide Policies Affecting the State’s One-stop System .........................................
(d) Development of Strategies for Technological Improvements ................................................................
(e) State Plan Modification ..........................................................................................................................
(f) Identification of Regions ..........................................................................................................................
(g) Appoint New Local Workforce Development Board and Appropriate Firewalls ....................................
(h) Career Pathways Development .............................................................................................................
(i) Development of Proven and Promising Practices ..................................................................................
(j) Technology ..............................................................................................................................................
(k) Selection of the One-stop Operator .......................................................................................................
(l) Coordination with Education Providers ...................................................................................................
(m) Regional Plans ......................................................................................................................................
(n) Local and Regional Plan Modification ...................................................................................................
(o) Improved Information about Potential Training Program Providers ......................................................
(p) Sanctions on Under-performing States ..................................................................................................
(q) Co-location of Wagner-Peyser Services ................................................................................................
(r) Partners Required to Pay their Share for Proportionate Use of One-stop Delivery System .................
(s) Establishing Training Provider Eligibility Procedures, Including Adding Registered Apprenticeship ....
(t) Determining Eligibility of New and Previously Eligible Providers ...........................................................
(u) Biennial Review of Eligibility ..................................................................................................................
(v) Disseminating the Training Provider List with Accompanying Information ............................................
Percent of total
first-year cost
$313,435
9,775,773
1,202,284
229,291
0
0
4,644,773
7,067,938
287,985
2,374,798
0
319,528
0
0
551,826
520,939
63,903,952
0
529,202
1,141,628
0
1,705,125
(w) Migrant and Seasonal Farmworker (MSFW) Housing ..........................................................................
0.33
10.34
1.27
0.24
0.00
0.00
4.91
7.47
0.30
2.51
0.00
0.34
0.00
0.00
0.58
0.55
67.57
0.00
0.56
1.21
0.00
1.80
Not quantified.
Total ......................................................................................................................................................
94,568,477
100.00
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Note: Totals might not sum due to rounding.
Exhibit 5 presents the per-year and
total estimated costs of the proposed
rule. The total undiscounted cost of the
rule sums to $384.4 million over the 10year analysis period, which is an
average annual cost of $38.4 million per
year. In total, the 10-year discounted
costs of the proposed rule range from
$305.6 million to $345.9 million (with
7- and 3-percent discounting,
respectively).
To contextualize the cost of the
proposed rule, the Department of
Labor’s average annual budget for WIA
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over the past three fiscal years was $2.8
billion. Thus, the annual additional cost
of implementing the proposed rule is
between 1.1 percent and 1.2 percent of
the average annual cost of implementing
WIA over the last three fiscal years
(with 3 percent and 7 percent
discounting, respectively).
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EXHIBIT 5—MONETIZED COSTS OF THE
PROPOSED DOL RULE
[2013 dollars]
Year
2015
2016
2017
2018
2019
2020
2021
2022
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......................................
......................................
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16APP3
Total costs
$94,568,478
32,567,226
43,153,328
24,039,512
20,497,077
55,886,872
20,497,077
22,506,238
20826
Federal Register / Vol. 80, No. 73 / Thursday, April 16, 2015 / Proposed Rules
EXHIBIT 5—MONETIZED COSTS OF THE experience and are outcomes for which
data will only become available after
PROPOSED DOL RULE—Continued
implementation. Although these studies
are largely based on programs and their
existing requirements under WIA, we
Year
Total costs
believe that they capture the essence of
2023 ......................................
43,153,328 the societal benefits that can be
2024 ......................................
27,508,652 expected from this proposed rule.
Undiscounted 10-year Total
384,377,787
Training’s impact on placement. A
10-year Total with 3% Disrecent study found that flexible and
counting .............................
345,897,084 innovative training which is closely
10-year Total with 7% Disrelated to a real and in-demand
counting .............................
305,556,353 occupation is associated with better
10-year Average ...................
38,437,778
labor market outcomes for training
Annualized with 3% Discounting .............................
40,549,690 participants. Youth disconnected from
work and school can benefit from
Annualized with 7% Discounting .............................
43,504,350 comprehensive and integrated models of
training that combine education,
Note: Totals might not sum due to rounding. occupational skills, and support
services.21 However, the study noted
Benefits
that evidence for effective employment
The Department was unable to
and training-related programs for youth
quantify the benefits associated with the
is less extensive than for adults, and
proposed rule because of data
that there are fewer positive findings
limitations and a lack of operational
from evaluations.22 The WIA youth
(WIOA) data or evaluation findings on
program remains largely untested.23
the provisions of the proposed rule.
One study found that WIA training
Thus, the Department is unable to
services increase placement rates by 4.4
provide monetary estimates of several
percent among adults and by 5.9 percent
important benefits to society, including
among dislocated workers,24 while
the increased employment opportunities another study concluded that placement
for unemployed or under-employed U.S. rates are 3 to 5 percent higher among all
workers, benefits of colocation of
training recipients.25
Wagner-Peyser Services, enhanced ETP
Participants in occupational training
process, regional planning, and
had a ‘‘5 percentage points higher
evaluation of State programs. In support reemployment rate than those who
of a State’s strategic plan and goals,
received no training, and reemployment
State-conducted evaluation and research rates were highest among recipients of
of programs would enable each State to
on-the-job training, a difference of 10 to
test various interventions geared toward 11 percentage points.’’ 26 However, the
State conditions and opportunities.
study found that training did not
Results from such evaluation and
correspond to higher employment
research, if used by States, could
retention or earnings.27 A Youth
improve service quality and
21 Department of Labor et al. ‘‘What Works In Job
effectiveness and, thus, potentially lead
Training: A Synthesis of the Evidence.’’ July 2014.
to higher employment rates and
22 Ibid.
earnings among participants.
23 Decker, Paul T. and Jillian A. Berk. 2011. ‘‘Ten
Implementing various innovations that
Years of the Workforce Investment Act (WIA):
have been tested and found effective
Interpreting the Research on WIA and Related
could also lead to lower unit costs and
Programs.’’ Journal of Policy Analysis and
increased numbers of individuals served Management 30 (4): 906–926.
24 Hollenbeck, Kevin, Daniel Schroeder,
within a State. Sharing the findings
Christopher T. King, and Wei-Jang Huang. ‘‘Net
nationally could lead to new service or
Impact Estimates for Services Provided through the
management practices that other States
Workforce Investment Act.’’ Washington, DC: U.S.
could adopt to improve participant
Department of Labor, 2005. Available at https://
results, lower unit costs, or increase the wdr.doleta.gov/research/keyword.cfm?fuseaction=
dsp_puListingDetails&pub_id =2367&mp=y&
number served.
start=81&sort=7.
The Department invites comments
25 Heinrich, Carolyn J., Peter R. Mueser, and
regarding possible data sources or
Kenneth R. Troske. ‘‘Workforce Investment Act
Non-Experimental Net Impact Evaluation.’’
methodologies for estimating these
Columbia, MD: IMPAQ International, LLC, 2009.
benefits. In addition, the Department
26 Park, Jooyoun. ‘‘Does Occupational Training by
invites comments regarding other
the Trade Adjustment Assistance Program Really
benefits that might arise from the
Help Reemployment? Success Measured as
proposed rule and how these benefits
Matching.’’ Washington, DC: U.S. Department of
Labor, Employment and Training Administration,
could be estimated.
The Department provides a qualitative 2011.
27 Park, Jooyoun. ‘‘Does Occupational Training by
description of the anticipated WIOA
the Trade Adjustment Assistance Program Really
benefits below. These qualitative
Help Reemployment? Success Measured as
forecasts are predicated on program
Matching.’’ Washington, DC: U.S. Department of
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Opportunity Grant Initiative study
found that Youth Opportunity was
successful at improving outcomes for
high-poverty youth. Youth Opportunity
also increased the labor-force
participation rate overall and for
subgroups, including 16- to 19-year-old
adolescents, women, African
Americans, and in-school youth.28
Department-sponsored research found
that participants who received core
services (often funded by Employment
Services) and other services in
American Job Centers were more likely
to enter and retain employment.29
Training’s impact on wages. Before
enactment of WIA, Job Training
Partnership Act services had a modest
but statistically significant impact on
the earnings of adult participants.30
WIA training increased participants’
quarterly earnings by $660; these
impacts persisted beyond two years and
were largest among women.31 WIA adult
program participants who received core
services (e.g. skill assessment, labor
market information) or intensive
services (e.g. specialized assessments,
counseling) earned up to $200 more per
quarter than non-WIA participants.
Participants who received training
services in addition to core and
intensive services initially earned less
but caught up within 10 quarters with
the earnings of participants who only
received core or intensive services;
marginal benefits of training could
exceed $400 per quarter. Earnings
progressions were similar for WIA adult
program participants and users of the
Labor, Employment and Training Administration,
2011.
28 Jackson, Russell H., Jamie Diamandopoulos,
Carol Pistorino, Paul Zador, John Lopdell, Juanita
Lucas-McLean, and Lee Bruno. ‘‘Youth Opportunity
Grant Initiative (YO).’’ Houston, TX: Decision
Information Resources, Inc., 2008. Available at
https://wdr.doleta.gov/research/FullText_
Documents/YO%20Impact%20and%20
Synthesis%20Report.pdf.
29 Office of Policy Development and Research,
U.S. Department of Labor. ‘‘Five-Year Research and
Evaluation Strategic Plan Program Years 2012–
2017.’’ May 2013. Available at https://wdr.doleta.
gov/research/keyword.cfm?fuseaction=dsp_result
Details&pub_id=2516&mp=y.
30 Barnow, Burt, and Daniel Gubits. ‘‘Review of
Recent Pilot, Demonstration, Research, and
Evaluation Initiatives to Assist in the
Implementation of Programs under the Workforce
Investment Act.’’ Baltimore, MD: Johns Hopkins
University, 2003. Available at https://
wdr.doleta.gov/research/keyword.cfm?fuseaction=
dsp_puListingDetails&pub_id=2365&mp=y&start=
81&sort=7.
31 Barnow, Burt, and Daniel Gubits. ‘‘Review of
Recent Pilot, Demonstration, Research, and
Evaluation Initiatives to Assist in the
Implementation of Programs under the Workforce
Investment Act.’’ Baltimore, MD: Johns Hopkins
University, 2003. Available at https://wdr.doleta.
gov/research/keyword.cfm?fuseaction=dsp__pu
ListingDetails&pub__id=2365&mp=y&start=81&
sort=7.
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labor exchange only.32 WIA training
services also improved participants’
long-term wage rates, doubling earnings
after 10 quarters over those not
receiving training services.33 However,
WIA participants who did not receive
training earned $550 to $700 more in
the first quarter after placement. The
study also noted that individuals who
did not receive training received
effective short-term counseling that
enabled them to gain an immediate
advantage in the labor market.34
Another Department program, the Job
Corps program for disadvantaged youth
and young adults, produced sustained
increases in earnings for participants in
their early twenties. Students who
completed Job Corps vocational training
experienced average earnings increases
by the fourth follow-up year over the
comparison group, whereas those who
did not complete training experienced
no increase.35
Another publication also noted that,
on average, adults experienced a $743
quarterly post-exit earnings boost.36
Those who completed training
experienced a 15-percent increase in
employment rates and an increase in
hourly wages of $1.21 relative to
participants without training.37
Participation in WIA training also had a
distinct positive, but smaller, impact on
employment and earnings, with
employment 4.4 percentage points
32 Earnings Progression among Workforce
Development Participants: Evidence from
Washington State.’’ Eugene, OR: University of
Oregon, 2011. Available at https://wdr.doleta.gov/
research/keyword.cfm?fuseaction=dsp__puListing
Details&pub__id=2468&mp=y&start=1&sort=7.
33 Heinrich, Carolyn J., Peter R. Mueser, and
Kenneth R. Troske. ‘‘Workforce Investment Act
Non-Experimental Net Impact Evaluation.’’
Columbia, MD: IMPAQ International, LLC, 2009.
34 Heinrich, Carolyn J., Peter R. Mueser, and
Kenneth R. Troske. ‘‘Workforce Investment Act
Non-Experimental Net Impact Evaluation.’’
Columbia, MD: IMPAQ International, LLC, 2009.
Available at https://wdr.doleta.gov/research/
FullText_Documents/Workforce%20Investment%20
Act%20Non-Experimental%20Net%20Impact%20
Evaluation%20-%20Final%20Report.pdf.
35 Gritz, Mark, and Terry Johnson. ‘‘National Job
Corps Study: Assessing Program Effects on Earnings
for Students Achieving Key Program Milestones.’’
Seattle, WA: Battelle Memorial Institute, 2001.
Available at https://wdr.doleta.gov/research/
keyword.cfm?fuseaction=dsp_puListingDetails&
pub_id=2257&mp=y&start=141&sort=7.
36 Hollenbeck, Kevin, Daniel Schroeder,
Christopher T. King, and Wei-Jang Huang. ‘‘Net
Impact Estimates for Services Provided through the
Workforce Investment Act.’’ Washington, DC: U.S.
Department of Labor, 2005. Available at https://wdr.
doleta.gov/research/FullText_Documents/Net%20
Impact%20Estimates%20for%20Services%20
Provided%20through%20the%20Workforce%20
Investment%20Act-%20Final%20Report.pdf.
37 Needels, Karen, Jeanne Bellotti, Mina Dadgar,
and Walter Nicholson. ‘‘Evaluation of the Military
Base National Emergency Grants: Final Report.’’
Princeton, NJ: Mathematica Policy Research, 2006.
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higher and quarterly earnings $660
higher than comparison group members.
The following are channels through
which these benefits might be achieved:
Better information for workers. The
accountability measures would provide
workers with higher-quality information
about potential training program
providers and enable them to make
better informed choices about which
programs to pursue. The information
analyzed and published by the WDBs
about local labor markets also would
help trainees and providers target their
efforts and develop reasonable
expectations about outcomes.
Consumers of educational services,
including disadvantaged and displaced
workers, require reliable information on
the value of different training options to
make informed choices. Displaced
workers tend to be farther removed from
schooling and lack information about
available courses and the fields with the
highest financial return.38 Given these
information gaps and financial
pressures, it is important that displaced
workers learn of the returns to various
training plans.39 Still, one study
determined that the cost-effectiveness of
WIA job training for disadvantaged
workers is ‘‘modestly positive’’ due
perhaps to the limited sample of States
on which the research was based.40
Sanctions to under-performing States.
WIOA requires the Department to place
sanctions on States that under-perform
for two consecutive years. The sanction
would be five percent of set-aside
funding. Having a clear and credible
sanction will serve as an incentive for
States and local entities to monitor
performance more effectively and to
intervene early in order to avoid the loss
of funding.
Evaluations of WIA indicate that
sanctions have a larger influence on
programs than incentives. Two-thirds of
local workforce investment areas have
indicated that the possibility of
sanctions influenced their programs,
whereas only slightly more than half
38 Greenstone, Michael, and Adam Looney.
‘‘Building America’s Job Skills with Effective
Workforce Programs: A Training Strategy to Raise
Wages and Increase Work Opportunities.’’
Washington, DC: Brookings Institution, 2011.
39 Jacobson, Louis, Robert LaLonde, and Daniel
Sullivan. ‘‘Policies to reduce high-tenured
displaced workers’ earnings losses through
retraining.’’ Discussion Paper 2011–11, The
Hamilton Project, Brookings Institution,
Washington, DC, 2011.
40 Heinrich, Carolyn J., Peter R. Mueser, Kenneth
R. Troske, Kyung-Seong Jeon, Daver C. Kahvecioglu.
2009 (November). ‘‘New Estimates of Public
Employment and Training Program Net Impacts: A
Nonexperimental Evaluation of the Workforce
Investment Act Program.’’ Discussion Paper 4569,
Institute for the Study of Labor (IZA), Bonn,
Germany.
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20827
indicated that incentives had an
influence.41 Further, several Job Centers
consider student placement outcomes in
staff performance evaluations and pay
for vocational instructors.42 This
practice has significantly increased staff
interest in successful student placement
following program completion.43
Researchers expressed concerns over
current WIA metrics for workforce
development program performance. For
example, in issuing high performance
bonuses to States in recognition of high
performance achievements, the metric
negotiation process does not
appropriately adjust for variations in
economic and demographic
characteristics or service mix.44
Additionally, the distribution of these
bonuses does not directly correlate with
program performance, with some lower
performing States receiving larger
bonuses than higher performing
States.45
It is possible that the proposed rule
might result in unintended
consequences. For example, the efficacy
of incentives may be reduced with poor
measures, as compensation or
recognition may not be commensurate
with effort and subsequent performance,
which could dampen employee
motivation.46 Other unintended
consequences may include distortion
involving behavior intended to insure
against the loss of compensation; also,
misrepresentation of outcomes may
occur.47 Researchers have expressed
concerns about the current measures
used to evaluate performance.48 High
performance incentives may
unintentionally impact performance
negatively if they encourage programs to
focus on receiving the award rather than
improving program design, delivery,
and outcomes. High performance
41 Dunham, Kate, Melissa Mack, Jeff Salzman, and
Andrew Wiegand. ‘‘Evaluation of the WIA
Performance Measurement System: Survey Report.’’
Oakland, CA: SPR Associates, 2005. Available at
https://wdr.doleta.gov/research/
keyword.cfm?fuseaction=dsp_puListing
Details&pub_id=2408&mp=y&start=41&sort=7.
42 Johnson, Terry, Mark Gritz, Russell Jackson,
John Burghardt, Carol Boussy, Jan Leonard, and
Carlyn Orians. ‘‘National Job Corps Study: Report
on the Process Analysis.’’ Princeton, NJ:
Mathematica Policy Research, 1999. Available at
https://wdr.doleta.gov/research/keyword.cfm?
fuseaction=dsp_puListingDetails&pub_id=2213&
mp=y&start=201&sort=7.
43 Ibid.
44 Heinrich, Carolyn J. 2007. ‘‘False or Fitting
Recognition? The Use of High Performance Bonuses
in Motivating Organizational Achievements.’’
Journal of Policy Analysis and Management 26(2)
281–304.
45 Ibid.
46 Ibid.
47 Ibid.
48 Ibid.
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bonuses, therefore, could represent an
inefficient use of resources.49
State performance accountability
measures. This requirement would
include significant data collection for
Local Boards to address performance
measures for the core programs in their
jurisdictions. This data collection would
permit the State WDBs to assess
performance across each State. Training
providers would be required to provide
data to Local Boards, which would
represent a cost in the form of increased
data collection and processing.
Employers and employees also would
have to provide information to the
training providers, which would take
time. This provision, in combination
with the board membership provision
requiring employer/business
representation, is expected to improve
the quality of local training and,
ultimately, the number and caliber of
job placements.
Implementation of follow-up
measures, rather than termination-based
measures, might improve long-term
labor market outcomes, although some
could divert resources from training
activities.50
Before-after earning metrics capture
the contribution of training to earnings
potential and minimize incentives to
select only training participants with
high initial earnings.51 The study found
that value added net of social cost is one
objective that is too difficult to measure
on a regular basis. With the exception of
programs in a few States, current
incentives do not reward enrollment of
the least advantaged.52 In addition, the
study noted evidence that the
performance-standards can be ‘‘gamed’’
in an attempt to maximize their centers’
measured performance.53
Pressure to meet performance levels
could lead providers to focus on offering
services to participants most likely to
succeed. For example, current
accountability measures might create
incentives for training providers to
screen participants for motivation, delay
participation for those needing
49 Wandner, Stephen, and Michael Wiseman.
‘‘Financial performance incentives for United States
government programs: Lessons learned from the
Workforce Investment Act, Temporary Assistance to
Needy Families, and food stamps.’’ What the
European Social Fund can learn from the WIA
experience, Washington, DC Retrieved January 16
(2009): 2011.
50 Courty, Pascal, and Gerald Marschke. ‘‘Making
Government Accountable: Lessons from a Federal
Job Training Program.’’ Public Administration
Review 67.5 (2007): 904–916.
51 Heckman, James J., Carolyn Heinrich, and
Jeffrey A. Smith. 1997. ‘‘Assessing the Performance
of Performance Standards in Public Bureaucracies.’’
American Economic Review 87(2): 389–95.
52 Ibid.
53 Ibid.
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significant improvement, or discourage
participation by those with high existing
wages.54
The following subsections present
additional channels by which economic
benefits may be associated with various
aspects of the proposed rule.
Dislocated workers. A study found
that for dislocated workers, receiving
WIA services significantly increased
employment rates by 13.5 percent and
boosted post-exit quarterly earnings by
$951.55 However, another study found
that training in the WIA dislocated
worker program had a net benefit close
to zero or even negative.56
Self-employed individuals. Job
seekers who received self-employment
services started businesses sooner and
had longer lasting businesses than
nonparticipants. Self-employment
assistance participants were 19 times
more likely to be self-employed than
nonparticipants and expressed high
levels of satisfaction with selfemployment. A study of Maine, New
Jersey, and New York programs found
that participants were four times more
likely to obtain employment of any kind
than nonparticipants.57
Workers with disabilities. A study of
individuals with disabilities enrolled in
training for a broad array of occupations
(including wastewater treatment, auto
body repair, meat cutter/wrapper,
clerical support staff, surgical tools
technician, and veterinary assistant)
found that the mean hourly wage and
hours worked per quarter for program
graduates were higher than for
individuals who did not complete the
program.
54 Dunham, Kate, Melissa Mack, Jeff Salzman, and
Andrew Wiegand. ‘‘Evaluation of the WIA
Performance Measurement System: Survey Report.’’
Oakland, CA: SPR Associates, 2005. Available at
https://wdr.doleta.gov/research/keyword.cfm?fuse
action=dsp_puListingDetails&pub_id=2408&mp=y&
start=41&sort=7.
55 Hollenbeck, Kevin, Daniel Schroeder,
Christopher T. King, and Wei-Jang Huang. ‘‘Net
Impact Estimates for Services Provided through the
Workforce Investment Act.’’ Washington, DC: U.S.
Department of Labor, 2005. Available at https://wdr.
doleta.gov/research/FullText_Documents/Net%20
Impact%20Estimates%20for%20Services%20
Provided%20through%20the%20Workforce%20
Investment%20Act-%20Final%20Report.pdf.
56 Heinrich, Carolyn J., Peter R. Mueser, and
Kenneth R. Troske. ‘‘Workforce Investment Act
Non-Experimental Net Impact Evaluation.’’
Columbia, MD: IMPAQ International, LLC, 2009.
Available at https://wdr.doleta.gov/research/
keyword.cfm?fuseaction=dsp_puListingDetails&
pub_id=2419&mp=y&start=41&sort=7.
57 Kosanovich, William, Heather Fleck, Berwood
Yost, Wendy Armon, and Sandra Siliezar.
‘‘Comprehensive Assessment of Self-Employment
Assistance Programs.’’ Arlington, VA: DTI
Associates, 2002. Available at https://wdr.doleta.
gov/research/keyword.cfm?fuseaction=dsp_pu
ListingDetails&pub_id=2293&mp=y&start=121&
sort=7.
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In conclusion, after a review of the
quantitative and qualitative analysis of
the impacts of this NPRM, the
Department has determined that the
societal benefits justify the anticipated
costs.
B. Paperwork Reduction Act
The purposes of the Paperwork
Reduction Act of 1995 (PRA), 44 U.S.C.
3501 et seq., include minimizing the
paperwork burden on affected entities.
The PRA requires certain actions before
an agency can adopt or revise a
collection of information, including
publishing for p
