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Workforce Investment Act 
 

Congress enacted the Workforce Investment Act (WIA) on August 7th, 1998 as comprehensive legislation superseding the Job Training Partnership Act (JTPA), amending Wagner-Peyser, and encompassing the Adult Education and Family Literacy Act and the Rehabilitation Act Amendments of 1998. 

WIA is designed to reform Federal job training programs and create a new, comprehensive workforce investment system with the goals of increasing participants' employment, retention, earnings, and skill attainment; thereby  improving the quality of the workforce and enhancing the nation's productivity and competitiveness. The system is intended to be customer-focused, assist Americans in accessing the tools needed to manage their careers through information and high quality services, and help U.S. companies seek out and employ skilled workers. The Workforce Investment Act embodies several key principals, including: service streamlining through a One-Stop delivery system, individual empowerment through information and training access, universal access to core service provision, increased accountability for results, strong local board and private sector involvement, state and local flexibility, and youth program improvement.

This page contains both a topical outline summarizing WIA's requirements and a full text version of the Act itself.  The outline, although comprehensive, is non-exhaustive and generally presents information in the same order as addressed within WIA, however is not strictly correlated with the Act's parts, sub-parts, and individual sections.  The Workforce Investment Act and associated Federal Regulations in their entirety are listed in the outline's adjacent right column.  Individual section links are included directly below the complete text versions. 

 WIA Outline

 

Page Index 

I. State and Local Governance

II. One-Stop System Description

III. Adult and Dislocated Worker Activities

IV. Youth Activities

 V. Statewide Activities

VI. Performance Accountability

VII. Administrative Provisions

I. State and Local Governance

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Each state's Governor is required to establish a State Board, designate Local workforce Investment Areas, and oversee the creation of Local Workforce Investment Boards and One-Stop Delivery Systems within each state.

A. State Workforce Investment Board

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1. Responsibilities

  • State plan development
  • Local workforce investment area designation
  • Local plan review
  • Fund distribution allocation formula development
  • Comprehensive state performance measure development and continuous improvement
  • Annual report preparation
  • Statewide employment statistics system development
  • Incentive grant development and application

2. Composition: The state board should consist of the following members and adhere to the following membership requirements:

  • Governor
  • Two members of each State Legislature Chamber
  • Business representatives
  • Chief elected officials
  • Labor organization representatives
  • "Workforce Investment Activity" representatives (i.e. community college and/or community based organization officers)
  • "Youth Activity Organization" representatives
  • Board member authority: Members representing organizations, agencies, or other entities shall be individuals with optimum policymaking authority
  • Chairperson requirement: The Board's chairperson shall be selected from among the business representatives category.

B. Local Area Designation

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1. In General: The Governor must designate Local Workforce Investment Areas within each state in order to receive WIA funding.  Local area designation is accomplished through consultation with the State Board and Chief Elected Officials.

2. Designation Consideration Factors: In designating local areas the Governor takes the following into account:

  • Geographic areas served by local educational agencies
  • Geographic areas served by postsecondary educational institutions and area vocational schools
  • Local workforce investment and labor market area correlation
  • Local population distribution
  • Local area resources

3. Automatic Designation: The Governor shall approve a local area designation request:

  • From any unit of general local government with a population of 500,000 or more,
  • From a former JTPA employment services program of demonstrated effectiveness, or
  • From an area that served as a service delivery area under JTPA in a state that has a population of not more than 1,100,000 and  a population density greater than 900 persons per square mile

C. Local Workforce Investment Board

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1. In General: The Local board is appointed by each local area's chief elected official and certified by the Governor every two years.  The Local Board, in partnership with the Chief Elected Official(s) sets policy for each designated local workforce investment area.

2. Responsibilities: The Local Board is responsible for:

  • Developing the two year local plan
  • Selecting One-Stop operators with agreement from the chief elected official
  • Identifying eligible Adult/Dislocated Worker training and intensive service providers
  • Maintaining an eligible provider list with performance and cost information
  • Selecting eligible youth service providers based on Youth Council recommendations
  • Developing an administrative budget for carrying out local board duties
  • Negotiating and reaching agreement on local performance measures with the Governor and chief elected official(s)
  • Assisting the Governor with statewide employment system development
  • Coordinating workforce investment activities with economic development strategies and developing employer linkages

3. Composition: The local board should consist of the following members and adhere to the following membership requirements:

  • Business representatives
  • Local educational entities (i.e. school boards, adult education and literacy institutions, post-secondary institutions, etc)
  • Labor organization representatives
  • Community based organizations
  • Economic development agency representatives
  • Representatives from each of the One-Stop Partners
  • Business majority requirement: Business representatives must comprise a majority of the local board's members
  • Chairperson requirement: The local board must select a chairperson from among the board's business representative members

4. Alternative Entity Designation: A local board may be designated as an "alternative entity board" and circumvent the above requirements provided that such entity:

  • Was established to serve the local area
  • Existed prior to December 31st, 1997
  • Is a Private Industry Council established under JTPA or substantially similar to a local board meeting the above WIA composition requirements, and
  • Includes, at minimum, two or more business and labor union representatives

D. Youth Council

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1. In General: Youth Councils are established as subgroups within each Local Board.

2. Responsibilities: The Youth Council is responsible for:

  • Coordinating youth activities in each local area;
  • Developing portions of the local plan related to eligible youth, as determined by the chairperson of the Local Board;
  • Recommending eligible youth service providers in accordance with WIA section 123, subject to the Local Board's approval;
  • Conducting oversight of eligible youth activity providers; and
  • Establishing linkages with educational agencies and other youth entities

3. Composition: Youth Council membership includes:

  • Local Board members who have special interest or expertise in youth policy
  • Service agency members (i.e. juvenile justice and law enforcement)
  • Local public housing authority members
  • Parents of eligible youth seeking assistance under WIA title IB
  • Job Corps representatives
  • Other members determined as appropriate

E. Local Plan

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 1. Contents: Each area's local workforce investment plan must include:

  • Local area businesses, jobseeker, and workers' workforce investment needs identification
  • Identification of current and projected employment opportunities and job skills necessary to obtain such opportunities
  • One-Stop Delivery System description
  • Copies of all Local Board and One-stop Partner Memorandums of Understanding 
  • Local Board's negotiated local performance measures description
  • Description and assessment of adult and dislocated worker employment and training activities available in the local area
  • Statewide rapid response activity coordination description
  • Youth activity type and availability description
  • Public comment process description
  • Fiscal agent identification
  • Grant and awards competitive process description
  • Local area funds allocation description

2. Modification: The Governor establishes procedures governing local plan modification.  Situations necessitating modification may include significant changes in local economic conditions, available financing, Local Board structure, strategies, performance, etc.

II. One-Stop System Description

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A. General Description: One-Stop system delivery is a system involving separate workforce investment, educational, and other human resource program funding stream collaboration to create a seamless system of service delivery designed to enhance access to the programs' services and improve long-term participant employment outcomes.

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B. One Stop Partners: The required one-stop partners refer to entities responsible for administering the following programs and activities:

  • WIA Title I B programs serving adults, dislocated workers, youth, Job Corps, Native American programs, Migrant and Seasonal Farmworkers, and Veterans
  • Wagner-Peyser Act programs
  • WIA Title II adult education and literacy activities
  • Rehabilitation Act Title I programs
  • Social Security Act's Welfare-to-Work programs
  • Older Americans Act of 1965's title V senior community service activities
  • Carl D. Perkins Vocational and Applied Technology Act's postsecondary educational activities
  • Trade Adjustment Assistance authorized under the Trade Act of 1974
  • Disabled Veterans Outreach programs authorized under 38 U.S.C. chapter 41
  • Community Services Block Grant's employment and training activities
  • Department of Housing and Urban Development's employment and training activities
  • State unemployment compensation laws' authorized programs

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C. One Stop Partner Responsibilities: All one-stop partners must:

  • Make applicable core services available to participants through the One-Stop delivery system
  • Maintain the One-Stop delivery system
  • Enter into and participate in the One-Stop Delivery System in accordance with Local Board Memorandums of Understanding
  • Provide Local Board representation

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D. Memorandums of Understanding

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1. General Description: The Memorandum of Understanding (MOU) is an agreement developed and executed between the Local Board and One-Stop partners relating to the One-Stop delivery system's operation in the local area.

2. Specific Inclusions: The MOU must describe each partner's provided services, funding for services and operating costs, partner referral methods, duration, amendment procedures, and other provisions consistent with WIA and agreed upon by the parties.

3. Cost Sharing: The MOU must describe particular funding arrangements for services and operating costs and ensure that each partner contributes a fair share of operating costs proportionate to system use by individuals attributable to the partner's program. 

E. One-Stop Operator

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1. General Description: The One-Stop operator refers to the entity charged with coordinating services providers, serving as the primary service provider, and/or coordinating activities throughout the One-Stop Delivery System.  One-Stop Operators may consist of a single entity or include several entities and may operate one or more One-Stop Centers.  The Local Board/One-Stop Operator's agreement shall articulate the One-Stop Operator's specific roles, duties, and responsibilities.

2. Types of Entities: Possible entities that may serve as One-Stop Operators include:

  • Postsecondary educational institutions
  • Employment service agencies established under the Wagner-Peyser Act
  • Private, nonprofit organizations
  • Community based organizations
  • Private, for-profit agencies
  • Government agencies
  • Other interested organizations

3. Selection Process: The Local Board, with the Chief Elected Official's agreement, must designate and certify the One-Stop Operator in each local area.  The One-Stop Operator may be certified through a competitive process, under an agreement between the Local Board and a consortium of entities that includes at least three or more of the required One-Stop partners, or with agreement from the Governor if the Local Board desires to serve as the One-Stop Operator or an entity serving as a One-Stop operator prior to WIA's enactment desires to continue serve as the One-Stop Operator.

III. Adult and Dislocated Worker Activities

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A. In General: Adults and Dislocated Workers are provided access to core, intensive, and training services.  Core services must be made available in at least one comprehensive One-Stop Center in each local area; however services may also be made available at affiliated sites or specialized centers.  Intensive services must be made available by the One-Stop operator directly or contracts with service providers approved by the local board.  Training services are offered through Individual Training Accounts and access to eligible providers and associated training programs.  Eligible provider lists include approved training providers and associated cost and performance information for each provider program.

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B. Eligibility Requirements

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1. Registration: All adults and dislocated workers who receive funded services other than self-service or informational activities must be registered and determined eligible.

2. Core Services Eligibility: Adults need only be age 18 or older to receive core services.  Dislocated Workers must meet the definition of WIA section 101(9).

3. Intensive Services Eligibility: Intensive services are available to Adults and Dislocated Workers who:

  • Are unemployed, have received at least one core service and are unable to obtain employment through core services alone, and are determined to be in need of intensive services to obtain employment, or
  • Are employed, have received at least one core service, and are determined to be in need of intensive services to obtain or retain employment that leads to self-sufficiency.

4. Training Services Eligibility: Training services are available to Adults and Dislocated Workers who:

  • Have met the eligibility requirements for intensive services, received at least one intensive service, and have been determined to be unable to obtain or retain employment through such services;
  • Are determined to be in need of training services and to possess the skills and qualifications to successfully complete the selected training program;
  • Select a program of training services that is directly linked to employment opportunities in either the local area or in another area to which the individual is willing to relocate; and
  • Are unable to obtain grant assistance from other sources to pay the costs of such training, including such sources as Welfare-to-Work, State training funds, Trade Adjustment Assistance, Federal Pell Grants, etc, or require WIA assistance in addition to other sources of grant assistance

C. Core Services

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1. Types of Services: WIA core services include:

  • WIA eligibility determinations
  • One-Stop Outreach, intake, and orientation
  • Initial skill level and supportive services assessments
  • Job search and placement assistance
  • Career counseling
  • Employment statistics provision
  • Program performance and cost information provision
  • Local area performance measure information provision
  • Supportive services availability information provision
  • UI claims filing information provision
  • Assistance establishing eligibility for non-WIA funded training and education programs
  • Follow-up services

2. Delivery: Core services may be provided directly by the One-Stop operator or through contracts with service providers approved by the Local Board.  The Local Board may provide core services directly only when approved by the Governor and Chief Elected Official(s).

D. Intensive Services

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1. Types of Services: WIA intensive services include:

  • Comprehensive and specialized skill level and service needs assessments
  • Diagnostic testing
  • Employment barrier identification through in-depth interviews
  • Individual Employment Plan development
  • Group Counseling
  • Individual counseling and career planning
  • Case Management
  • Short-term prevocational services, including learning, communication, interviewing, and personal maintenance skills

2. Delivery: Intensive services may be provided directly by the One-stop operator or through contracts with service providers, which may include contracts with public, private for-profit, and private non-profit service providers approved by the Local Board.  The Local Board may provide intensive services directly only when approved by the Governor and the Chief Elected Official(s).

3. Individual Employment Plan: The IEP documents an ongoing strategy jointly developed by the case manager and participant that identifies the participant's goals, achievement objectives, and appropriate services combination necessary to achieve the participant's goals and objectives.

E. Training Services

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1. Types of Services: WIA training services include:

  • Occupational skills training
  • On-the-job training (OJT)
  • Customized training
  • Cooperative education programs combining workplace training with related instruction
  • Private sector training programs
  • Skills upgrading and retraining
  • Entrepreneurial training
  • Job readiness training
  • Adult education and literacy activities

2. Individual Training Accounts (ITAs): The Individual Training Account (ITA) is established on the participant's behalf and serves as the primary tool for purchasing training services from eligible providers.  ITA payments are accomplished through electronic fund transfers, vouchers, or other appropriate methods.  State or Local Boards may impose amount and duration limitations on Individual Training Accounts.  These limitations may apply to individual participants based on assessed needs or be implemented as minimum/maximum across the board amounts pursuant to general policy decisions.

3. Contracts for Services: Service contracts may be used in lieu of ITAs only when one of the following exceptions applies:

  • OJT and customized training services are utilized
  • The Local Board determines there to be an insufficient number of eligible training providers in the local area
  • The Local Board authorizes participation in a training services program of demonstrated effectiveness offered by a community-based organization or another private organization that serves special participant populations facing multiple employment barriers.

4. Training Provider Eligibility: The following requirements address types of eligible training providers, initial eligibility determinations, subsequent eligibility determinations, loss of eligibility, and state information dissemination

  • Eligible training providers: include postsecondary educational institutions that are eligible to receive Federal funds under the Higher Education Act of 1965 and provide programs leading to an associate degree, baccalaureate degree, or certificate; entities carrying out programs under the National Apprenticeship Act, or other public or private training service providers.
  • Initial Eligibility Determinations:  The Governor must develop eligibility determination procedures after taking into account Local Board and training provider recommendations and providing opportunity for public comment, and the procedure must be described in the State Plan.  Training providers must submit applications to the Local Board describing each training services program and appropriate performance and program cost information.  Upon approval the Local Board must submit a proposed eligible training provider list to the designated State agency and the agency then has 30 days to approve or disapprove those providers included on the list.
  • Subsequent Eligibility Determinations: The Governor must develop a procedure for the Local Board to use in determining subsequent training provider eligibility.  The procedure must require that: (1) training providers annually submit program and cost information for each training services program; (2) training providers annually meet minimum WIA performance levels; (3) Local Boards take into account specific local area economic, geographic, and demographic factors, and the particular characteristics of the population served by the programs when determining subsequent eligibility. 
  • Required Performance and Cost Information: To be considered for initial and subsequent eligibility, training providers must submit program-specific information consisting of: (1) program completion rates for all individuals participating in the applicable program; (2) the percentage of all individuals participating in the applicable program who obtain unsubsidized employment; (3) Six month employment retention rates for participants completing the applicable program; (4) Six month wage rates for participants completing the applicable program; (5) Where appropriate, licensure, degree attainment, and/or certification rates of graduates from the applicable program; and (6) Program cost information such as tuition and fees for all participants in the applicable program
  • Loss of Eligibility: A training provider may lose its eligibility for failing to meet established performance levels.  Local boards have authority to remove single programs or entire training providers at their discretion.
  • State information dissemination: The designated State agency must maintain a list of all eligible training providers/programs and disseminate the State list and accompanying performance and cost information to the One-Stop delivery systems within the state.  The State list must be updated annually.

5. On-the-Job Training and Customized Training

  • OJT requirements: On-the-Job training is provided under a contract with an employer in the public, non-profit, or private sector.  Throughout the training period occupational training is provided to the WIA participant in exchange for employer reimbursement equal to up to 50 percent of the participant's wage rate.   The Local Board must not contract with employers who have previously exhibited patterns of failing to provide participants with continued long-term employment with wages, benefits, and working conditions equal to those provided to regular employees.  OJT contracts must be limited to the period of time required for the participant to achieve proficiency in the occupation being trained considering the occupational skill level required, the participant's academic and occupational skill level, prior work experience, etc.
  • Jots for employed workers: OJT contracts may be written for employed workers only when the employee is not earning a self-sufficient wage and the OJT relates to the introduction of new technologies, additional skills, workplace literacy or other Local Board appropriately defined specific purposes.
  • Customized Training: Customized training is training: (1) that is designed to meet specific employer requirements, (2) that is conducted with the employer's commitment to employ the individual upon successful training completion, and (3) for which the employer pays for not less than 50 percent of the training cost
  • Customized Training for employed workers: same as for Jots

F. Priority and Special Populations:  In the event funds are limited Local Areas must give priority for adult intensive and training services to recipients of public assistance and other low income individuals.  States and Local Areas must develop criteria to determine specific priority groups and determination/administration methods.  Priority requirements do not apply to dislocated workers.

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G. Supportive Services 

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1. Types of Supportive Servicesincludes compensation for the following expenses provided it’s necessary to enable an individual to participate in WIA activities:

  • Transportation
  • Child care
  • Dependent care
  • Housing
  • Needs related care

2. Supportive Services Eligibility - Supportive services may be provided to individuals who are:

  • Participating in core, intensive, or training services,
  • Unable to obtain supportive services through other programs
  • Otherwise unable to participate in WIA activities

3. Needs Related Payments: refer to financial assistance to participants for the purpose of enabling individuals to participate in training.  Adults receiving needs related payments must be unemployed, unable to qualify for unemployment compensation, and enrolled in a training services program.  Dislocated Workers receiving needs related payments must be unemployed, have ceased to qualify for unemployment compensation or TAA assistance, and be enrolled in a training services program by the end of the 14th week after the most recent layoff or if later, by the end of the 8th week after the worker is informed that a short-term layoff will exceed 6 months.

IV. Youth Activities

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A. In General: The Youth Program's general design must include the following components:

  • Objective Assessment: The program must provide an objective assessment of each participant's academic levels, basic skill levels, occupational skills, prior work experience, employability, interests, aptitudes, and supportive services needs.
  • Individual Service Strategy: The program must develop individual service strategies for each participant identifying an employment goal, appropriate achievement objectives, and the right mix of services for achieving the participant's goals and objectives.
  • Academic and Occupational Preparation: The program must provide sufficient preparation for postsecondary educational opportunities, linkages between academic and occupational learning, preparation for employment, and effective connections to the job market and employers
  • Out-of-School Youth Fund Appropriation: At least 30% of all youth funds must be used to provide activities to out-of-school youth.  An out-of-school youth is an individual who is an eligible youth meeting the "school dropout" definition, or an eligible youth who has either graduated from high school or holds a GED but is basic skills deficient, unemployed, or underemployed.

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B. Eligibility Requirements

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1. Registration: All youth participants must be registered to support an eligibility determination.

2. Specific Eligibility Requirements: An eligible youth is defined as an individual who:

  • Is between the ages of fourteen and twenty one;
  • Is a low income individual;
  • Is within one or more of the following categories:
    • Basic literacy skills deficient
    • School dropout;
    • Homeless, runaway, or foster child;
    • Pregnant or parenting;
    • Offender; or
    • An individual (including disabled youths) who requires additional assistance to complete an educational program or to secure and hold employment

3. Eligibility Definitions: The following definitions apply to the above eligibility requirements:

  • Low Income Individual: Refers to an individual who:
    • Receives or is a member of a family that receives cash payments under a Federal, State, or Local public assistance program
    • Received an income, or is a member of a family that received an income, for the six month period prior to application for the program involved that in relation to family size does not exceed the higher of the poverty line or 70% of the lower living standard income level
    • Is a member of a household that receives or has been determined eligible to receive food stamps
    • Qualifies as a homeless individual
    • Is a foster child on behalf of whom State or Local government payments are made
    • Is a disabled individual whose own income meets the lower level standard of income definition, although he or she is a member of a family whose income does not meet the requirements
  • Basic Literacy Skills Deficient: The specific definition may be established at the State or Local level, but the definition must include a determination that an individual computes or solves problems, reads, writes or speaks English at or below an 8th grade level; or is unable to compute or solve problems, read, write, or speak English at a level necessary to function on the job or in society.

4. Low Income Eligibility Requirement Exception: Up to five percent of youth participants may be individuals who do not meet the income criterion for eligible youth, provided that the individual is within one or more of the following categories:

  • School dropout
  • Basic skills deficient
  • One or more grade levels before the grade level appropriate to the individual's age
  • Pregnant or parenting
  • Possesses one or more disabilities, including learning disabilities
  • Homeless or runaway
  • Offender
  • Faces serious employment barriers, as defined by the Local Board

C. Required Youth Services: Local programs must make the following services available to youth participants: 

  • Tutoring, study skills training, and instruction leading to secondary school completion, including dropout prevention strategies
  • Alternative secondary school offerings
  • Summer employment opportunities directly linked to academic and occupational learning (note: Summer youth employment opportunities are not intended to be stand-alone programs.  Additionally, youths participating in summer employment opportunities must be provided with a minimum of twelve months of follow-up services)
  • Paid and unpaid work experiences, including internships and job shadowing
  • Occupational skills training
  • Leadership development opportunities, including community service and peer-centered activities encouraging responsibility and other positive social behaviors
  • Supportive services
  • Adult mentoring for a duration lasting at least 12 months
  • Follow-up services
  • Comprehensive guidance and counseling, including drug and alcohol abuse counseling

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D. Youth Supportive and Follow-Up Services

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1. Supportive Services: Youth supportive services may include the following:

  • Linkages to community services
  • Transportation assistance
  • Child and Dependant care assistance
  • Housing assistance
  • Medical services referrals
  • Assistance with uniforms or other appropriate work-related attire and/or tools

2. Follow-up Services: Youth follow-up services may include:

  • Supportive services assistance
  • Regular contact with the participant's employer
  • Career development assistance
  • Further education assistance
  • Work-related peer support groups
  • Adult mentoring
  • Employment progress tracking

E. Concurrent Enrollment:  An older youth between the ages of 18 and 21 may be eligible for the WIA Adult and Youth programs.  Individuals meeting both programs' respective eligibility requirements may participate in the adult and youth programs concurrently.  Local program operators must identify and track the funding streams paying for the respective adult or youth activity and guard against duplication of services.

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 V. Statewide Activities

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A. Funding: Statewide activities are funded from the Adult, Dislocated Worker, and Youth Funding Streams' 15% statewide activity reservation.  Note that statewide reserve funds can be combined and spent on statewide activities for each participant group without regard to funding source.  Consequently tracking statewide expenditures' funding source (i.e. Adult, Dislocated Worker, Youth) is not necessary after the initial statewide reservation. 

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B. Required Statewide Activities: These activities include:

  • Required rapid response activities
  • Eligible training provider list dissemination
  • Training provider performance and program cost dissemination
  • Conducting evaluations of WIA Adult, Youth, and Dislocated Worker programs
  • Incentive grant provision
  • Technical assistance provision
  • Assisting in One-Stop Delivery System establishment and operation
  • Youth program assistance in high youth concentration areas
  • Fiscal and accountability management information system operation

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C. Allowable Statewide Activities: These activities include:

  • State administration of the Adult, Dislocated Worker, and Youth workforce investment activities, consistent with the five percent administrative cost limitation
  • Capacity building and technical assistance provision to Local Boards, One-Stop partners, eligible providers, etc, which may include
    • Staff development and training
    • Program activity development
    • Research and demonstration conduction
  • Incumbent worker training program implementation
  • Empowerment zones and enterprise communities establishment
  • Eligible training provider identification support
  • Displaced homemakers program implementation
  • Assistance administering Adult and Dislocated Worker employment activities
  • Statewide Youth activities administration
  • Annual performance progress report preparation and submission

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D. Rapid Response Activities

1. In General: Rapid response activities encompass the activities necessary to plan and deliver services to enable dislocated workers to transition quickly into new employment following either a permanent closure, mass layoff, natural, or other disaster resulting in mass job dislocation.  The state is responsible for providing rapid response activities and these activities are funded by a 25 % Dislocated Worker fund reservation in addition to the 15% statewide reservation described above.

2. Required Rapid Response Activities: include the following:

  • Immediate on-site contact with the employer, affected worker representatives, and the local community, which may include the following assessments:
    • Layoff plans and employee's schedule
    • Potential for avoiding layoff(s) after consultation with State or local economic development agencies
    • Affected workers' background and assistance needs
    • Local workers' re-employment prospects
    • Available resources to meet short and long-term assistance needs
  • Unemployment Compensation assistance
  • One-Stop System information provision
  • Trade Adjustment Assistance information
  • Labor Management Committee or Workforce Transition Committee establishment
  • Emergency assistance provision
  • Assistance to the Local Board and Chief Elected Official(s) to develop a coordinated response to the dislocation event
  • State economic development assistance
  • National Emergency Grant application development

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VI. Performance Accountability

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A. Performance Measures: Core indicators are provided for Adults, Dislocated Workers, Older Youth, and Younger Youth participant groups, and performance measures discussed in this section apply to both States and Local Areas.  Note that many core indicators encompass multiple participant groups.  Core indicators for all participant groups are as follows:

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1. Adults, Dislocated Workers:

  • Entered employment rate
  • Employment retention rate
  • Average Earnings
  • Credential attainment rate

2. Older Youth (ages 19-21):

  • Entered employment rate
  • Employment retention rate
  • Six Months Earning Change
  • Credential attainment rate

3. Younger Youth (ages 14-18)

  • Skill Attainment Rate
  • Diploma/Equivalent Attainment Rate 
  • Retention Rate

4. Youth Common Measures (encompasses all youth, ages 14-21)

  • Degree or Certificate Attainment
  • Employment or Educational Placement
  • Literacy and Numeracy Gains

B. Performance Measure Tutorial

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1. Key Definitions

  • Participant: An individual who is determined eligible to participate in WIA and receives a funded service.
  • Participation Date: The first day following a WIA eligibility determination that the individual begins receiving a WIA funded service.
  • Exit: Occurs when a participant does not receive a WIA funded service for 90 consecutive calendar days and is not scheduled for future services
  • Exit Date: The last day on which the individual received a WIA funded service
  • Quarter: Refers to the following three month periods - (Jan-Mar.), (Apr.-June), (July-Sept.), and (Oct.-Dec.).  All Adult and Dislocated Worker performance measures are calculated based on the participant's exit quarter.
  • Service: Includes in-program WIA activities, such as core, intensive, and training services pursuant to significant staff involvement.
  • "Significant Staff Involvement": The critical assessment factor when determining if a participant will be included in performance measure calculations.  "Significant Staff Involvement" refers to any levels of service beyond "self service or informational activities," such as assessments of a participant's skills, education, or career objectives to assist participants in determining employment search strategies, assessing personal employment barriers, accessing related resources to enhance employability, etc.
  • "Self-Service or Informational Activities": refer to those core services made accessible to the general public that don't require significant staff involvement.  These activities include eligibility determinations, self directed job searches not resulting in a referral, self-directed and staff assisted informational activities, etc.

2. Performance Measure Definitions and Calculations (statutory and common)

  • Adult/Dislocated  Worker Entered Employment Rate:
    • Definition: Of those not employed at the participation date, the number of Adults/Dislocated Workers who are employed in the 1st quarter after the exit quarter divided by the number of Adults/Dislocated Workers who exit during the quarter.
    • Calculation: Number employed in Quarter after Exit / Number of Exiters
    • Exclusions: Adults/Dislocated Workers employed at their participation date.
  • Older Youth Entered Employment Rate:
    • Definition: Of those not employed at the participation date and who are not enrolled in post-secondary education or advanced training in the 1st quarter after the exit quarter, the number of Older Youth who have entered employment by the end of the 1st quarter after the exit quarter divided by the number of Older Youth who exit during the quarter.
    • Calculation: Number employed in Quarter after Exit / Number of Exiters
    • Exclusions: Older Youth employed at their participation date.
  • Adult/Dislocated Workers Employment Retention Rate:
    • Definition: Of those who are employed in the 1st quarter after the exit quarter, the number of Adults/Dislocated Workers who are employed in both the 2nd and 3rd quarters after the exit quarter divided by the number of Adults/Dislocated Workers who exit during the quarter. 
    • Calculation: Number employed in the 2nd and 3rd quarters after Exit / Number employed in 1st quarter after Exit
    • Exclusions: Adults/Dislocated Workers NOT employed in the 1st quarter after Exit
  • Older Youth Employment Retention Rate
    • Definition: Of those who are employed in the 1st quarter after the exit quarter, the number of Older Youth who are employed in the 3rd quarter after the exit quarter divided by the number of Older Youth who exit during the quarter. 
    • Calculation: Number employed in the 3rd quarter after Exit / Number employed in 1st quarter after Exit
    • Exclusions: Older Youth enrolled in postsecondary education or advanced training in the 3rd quarter after Exit
  • Adult/Dislocated Worker Average Earnings:
    • Definition: Of those employed in the 1st, 2nd, and 3rd quarters after the exit quarter, total post-program earnings (in the 2nd and 3rd quarter after exit) divided by the number of customers who exit during the quarter
    • Calculation: Post program earnings / Number of Exiters in Exit quarter
    • Exclusions: Customers not employed in the 1st, 2nd, or 3rd quarters after exit.
  • Older Youth Six Month Earnings Change
    • Definition: Of Older Youth employed in the 1st quarter after the exit quarter, total post-program earnings (in the 2nd and 3rd quarters after exit) minus pre-program earnings (in 2nd and 3rd quarters prior to participation date) divided by the number of participant exiters during the quarter.
    • Calculation: (Post-program earnings - Pre-program earnings) / Number of participant exiters during the quarter 
    • Exclusions: Older Youth enrolled in postsecondary education or advanced training in the 3rd quarter after exit
  • Adult/Dislocated Worker Credential Attainment Rate:
    • Definition: The number of Adults/Dislocated Workers receiving training services who are employed in the 1st quarter after exit and receive a credential/certificate by the end of the 3rd quarter after exit divided by the number of participants who exit during the quarter.
    • Calculation: Customers receiving training who are employed in the 1st quarter after exit and receive a certificate by the end of the 3rd quarter after exit / Number of Exiters during the exit quarter
    • Exclusions: Those Adults/Dislocated Workers who do not receive training services
  • Older Youth Credential Attainment Rate
    • Definition: The number of Older Youth who are employed, in advanced training, or post-secondary education in the 1st quarter after exit and receive a credential/certificate by the end of the 3rd quarter after exit divided by the number of participants who exit during the quarter
    • Calculation: Customers receiving training who are employed, in advanced training, or post-secondary education in the 1st quarter after exit and receive a certificate by the end of the 3rd quarter after exit / Number of Exiters during the exit quarter
    • Exclusions: Those Older Youth who are not employed, receiving advanced training, or enrolled in post-secondary education.
  • Younger Youth Skill Attainment Rate:
    • Definition: From among all In-School and Out-of-school Youth assessed as in need of basic skills, work readiness skills, or occupational skills, the total number of all goals (up to 3 per year) attained divided by the number of goals set.  If the youth is judged to be basic skills deficient, at least one of the goals must be a basic skills goal.
    • Calculation: Number of Goals Attained / Number of Goals Set
    • Exclusions: Out-of-school Youth for whom no goals were set because they were not assessed to be in need of basic skills
  • Younger Youth Diploma/Equivalent Attainment Rate:
    • Definition: Of those without a diploma or equivalent at the date of participation, the number of Younger Youth who attained a secondary school diploma or equivalent by the end of the 1st quarter after exit divided by the number of Younger Youth who exit during the quarter.
    • Calculation: Number of Exiters who attained a diploma/equivalent during the program or within the 1st quarter after exit / Number of Exiters not in secondary school at exit
    • Exclusions: Youth who possess a diploma/equivalent at the date of participation and Youth in secondary school at Exit  
  • Younger Youth Retention Rate:
    • Definition: The number of Younger Youth who are enrolled in postsecondary education, advanced training, military service, qualified apprenticeship, or unsubsidized employment in the 3rd quarter after exit divided by those who exit during the quarter
    • Calculation: Number enrolled in a postsecondary education, advanced training, military service, qualified apprenticeship, or unsubsidized employment in 3rd quarter after exit / Number of Exiters not enrolled in secondary school at Exit
    • Exclusions: Youth in secondary school at Exit
  • Youth Degree or Certificate Attainment Common Measure:
    • Definition: Of those enrolled in education at the participation date or at any point during the program, the number of participants who attain   diploma, GED, or certificate by the end of the 3rd quarter after the exit quarter divided by the number of participants who exit during the quarter.
    • Calculation: Number of participants in education who receive a diploma or certificate by the 3rd quarter after Exit / Number of participants in education who exit during the quarter
    • Exclusions: Those Youth not enrolled in education at some point during the program
  • Youth Employment or Educational Placement Common Measure:
    • Definition: Of those who are not in post-secondary education, employed, or in the military at the participation date, the number of participants who are in employed, in the military, or enrolled in post-secondary education and/or advanced training/occupational skills training in the 1st quarter after the exit quarter divided by the number of participants who exit during the quarter.
    • Calculation: Number of participants employed, in the military , or enrolled in post-secondary education in the 1st quarter after Exit / Number of Exiters
    • Exclusions: Those participants who were employed, enlisted in the military, or enrolled in post-secondary education at the participation date
  • Youth Literacy and Numeracy Gains Common Measure
    • Definition: Of those Out-of-School Youth who are basic skills deficient: The number of participants who increase one or more educational functioning levels divided by the number of participants who have completed a year in the program plus the number of participants who exit before completing a year in the program.
    • Calculation: Number of participants who increase one or more educational functioning levels / Number of participants who have completed a year in the program + number of participants who exit before completing a year in the program 
    • Exclusions: In-School Youth and those youth not assessed as basic skills deficient

C. Statutory and Common Measures Reporting Explanation: On July 1, 2005 the U.S. Department of Labor implemented Common Measures reporting requirements for WIA Title I B programs.   These measures were intended to supplement and be reported in addition to WIA section 136 statutorily defined performance measures.  Common measures applicable to Adult, Dislocated Worker, and Youth programs are as follows:

  • Adult and Dislocated Workers: Entered Employment Rate, Employment Retention Rate, Average Earnings 
  • Youth (Older and Younger): Degree or Certificate Attainment, Employment or Educational Placement, Literacy and Numeracy Gains   

Note that the Adult/Dislocated Workers' Entered Employment Rate and Employment Retention Rate are unchanged from the statutory measures, and that the Average Earnings Common Measure replaces the Six Months Earnings Change statutory measure.  The Youth Common measures, applicable to both Older and Younger Youth, combine and slightly redefine statutory measures while omitting some statutory measures altogether.  Kansas began reporting Common Measures in Program Years 2005 and 2006, however these measures were not negotiated and the state was only held accountable for meeting the statutory measures for this time period.  Kansas negotiated and was judged against Common Measures starting in PY 2007.  Additionally, the state obtained reporting waivers for all Older and Younger Youth statutory measures and the Adult/Dislocated Worker Credential Attainment Rate.  These waivers are currently in effect through PY' 09.  Consequently the state's current performance measure reporting requirements are as follows:

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1. Adult and Dislocated Workers:  

  • Entered Employment Rate
  • Employment Retention Rate
  • Average Earnings

2. Youth (ages 14-21)

  • Degree or Certificate Attainment
  • Employment or Educational Placement
  • Literacy and Numeracy Gains

D. State Performance Sanctions

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1. Criteria and Amounts:  States failing to meet core indicators negotiated performance levels for the Adult, Dislocated Worker, or Youth programs may request technical assistance from the U.S. Department of Labor.  State allocations for the applicable program may be reduced by up to five percent for failing to meet performance measures for two successive years.  Note that only performance less than 80% of negotiated levels will be classified as a failure to achieve negotiated performance measures.

2. Sanction consideration factors: The allocation reduction amount will be based upon the degree of failure to meet core indicators negotiated performance levels.  In determining a sanction amount, the following factors are taken into consideration:

  • State's performance relative to other states
  • State improvement efforts
  • Performance measure incremental improvement
  • Previously provided technical assistance
  • Economic conditions and program design changes
  • Characteristics of participants served
  • Customer satisfaction indicators for the applicable program
  • Other core indicator's performance

E. Local Area Performance Sanctions

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1. Criteria: Local Areas failing to meet core indicators negotiated performance levels for the Adult, Dislocated Worker, or Youth programs mat request technical assistance from the State.  Provided technical assistance may include development of a performance improvement plan, a modified local plan, or other actions designed to assist the local area in improving performance.  The State must take corrective action for a Local Area's failure to meet negotiated performance levels for two consecutive program years.

2. Corrective Action: Types of corrective action may include:

  • Appointment and certification of a new Local Board
  • Prohibition against poorly performing Service Provider or One-Stop Partner utilization
  • Other appropriate measures designed to improve Local Area performance

VII. Administrative Provisions

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 A. Funding

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 1. Fund Availability

  • Appropriations: Fiscal year appropriations for WIA title I programs are available on a program year basis.  A program year begins on July 1st in the fiscal year that the appropriation is made and ends on June 30th of the following year.  Fiscal year appropriations for a program year's youth activities may be made available for obligation beginning on April 1st of the fiscal year that the appropriation is made.
  • Expenditure:
    • States: Allocated funds are available for state expenditure only during the initial year of receipt and two succeeding program years.
    • Local Areas: Allocated funds are available for local expenditure only during the initial year of receipt and the following program year.
  • Local Area Recapture: Funds not expended during the two year period mentioned above must be returned to the State.  Returned funds are available for State and Local recipients/subrecipients only during the third program year of availability.  These funds may be used for statewide projects or distributed to other local areas that fully expended their fund allocations for the same program year within the two-year period.   

2. Fund Allocation

  • Statewide Activities Reserve: The Governor must reserve 15% of Adult, Dislocated worker, and Youth funding streams for Statewide Workforce Investment activities.  These funds may be combined without regard to funding source and be spent on statewide employment and training activities, adult and dislocated worker activities, youth activities, etc.
  • Rapid Response Reserve: The Governor must reserve up to 25% of Dislocated Worker funds for Statewide Rapid Response Activities. 
  • Adult/Dislocated Worker Fund Transfers: Local Boards may transfer up to 20% of Adult/Dislocated Worker funds between programs.  Note that Local Boards may not transfer funds to or from the Youth program. 
  • Adult Allocation Formula: The remaining 85% local Adult fund allotment is allocated as follows:
    • 33.33% on the basis of unemployment ratios in areas of substantial unemployment within each Local Workforce Investment Area
    • 33.33% on the bases of excess unemployment ratios in each Local Workforce Investment Area
    • 33.33% on the basis of disadvantaged Adult ratios within each Local Workforce Investment Area
  • Discretionary Adult Allocation Formula: In lieu of making the above formula allotment, states may allocate Adult funds under the following discretionary formula:
    • 70% on the factors described above
    • the remaining 30% based upon the following factors
      • Excess poverty areas
      • Excess unemployment areas
      • Other factors developed by the State Board
  • Dislocated Worker Allocation Formula: The remaining 60% local Dislocated Worker allotment is allocated as follows:
    • Governor developed allocation formula utilizing the following information:
      • Insured unemployment data
      • Unemployment concentrations
      • Plant closings and mass layoff data
      • Declining industries data
      • Farmer-ranch economic hardship data
      • Long term unemployment data
  • Youth Allocation Formula: The remaining 85% Youth allotment is allocated as follows:
    • 33.33% on the basis of unemployment ratios in areas of substantial unemployment within each Local Workforce Investment Area
    • 33.33% on the bases of excess unemployment ratios in each Local Workforce Investment Area
    • 33.33% on the basis of disadvantaged Adult ratios within each Local Workforce Investment Area
  • Discretionary Youth Allocation Formula: In lieu of making the above formula allotment, states may allocate Youth funds under the following discretionary formula:
    • 70% on the factors described above
    • the remaining 30% based upon the following factors
      • Excess poverty areas
      • Excess unemployment areas
      • Other factors developed by the State Board

3. Fund Recapture and Reallocation: Local Areas failing to obligate at least 80% of the prior program year's allocation amount are subject to fund recapture.  The recapture amount for the purposes of reallocation is based upon the amount by which the prior year's unobligated balance of allocated funds exceeds 20% of that year's allocation for the program, less any amount reserved (up to 10%) for administrative costs.    A Local Area must have obligated at least 80% of the prior program year's allocation less any amount reserved (up to 10%) for administrative costs to be eligible to receive reallocation amounts pursuant to fund recapture from other Local Areas.

B. Applicable Fiscal and Administrative Rules

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1. Uniform Administrative Requirements:

  • State, Local, and Indian Tribal Government organizations: Theses organizations receiving grants or cooperative agreements under WIA title I must follow the common rule "Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments," codified at 29 CFR part 97.
  • Institutions of higher education, hospitals, other nonprofit organizations, and commercial organizations: These organizations must follow the common rule implementing OMB Circular A-110, codified at 29 CFR part 95.

2. Cost Principles:

  • State, Local, and Indian Tribal Government organizations: These organizations must follow OMB Circular A-87 "Cost Principles for State, Local, and Indian Tribal Governments."
  • Nonprofit Organizations: These organizations must follow OMB Circular A-122 "Cost Principles of Non-Profit Organizations"
  • Institutions of Higher Education: These organizations must follow OMB Circular A-21 "Cost Principles for Educational Institutions"

3. Audit Requirements: All governmental and nonprofit organizations must follow the audit requirements of OMB Circular A-133, codified at 29 CFR part 99. 

4. Program Income: Any excess of revenue over costs received for services provided by a governmental or nonprofit entity must be included in program income.  Additionally, interest income earned on funds received under WIA title I must be included in program income.  The "Addition Method," must be used for all program income earned under WIA title I grants.  The method requires that gross income must be added back to the WIA program when the cost of generating program income has already been charged to the program, however the costs of generating program income may be subtracted from the amount earned to establish a "net program income" amount when these costs have not already been charged to the WIA program. 

5. Conflict of Interest: A State or Local Board member must neither cast a vote on nor participate in decision making relative to such member nor on any matter that would provide any direct financial benefit to that member or a member of his or her immediate family.

6. Lobbying Restrictions: All WIA title I grant recipients and subrecipients must comply with the restrictions on lobbying codified at 29 CFR part 93.

7. Nondiscrimination: All WIA title I recipients must comply with the WIA section 188 nondiscrimination and equal opportunity provisions and its implementing regulations found at 29 CFR part 37. 

8. Nepotism: No individual may be placed in a WIA employment activity if a member of that person's immediate family is directly supervised by or directly supervises that individual.

C. Administrative Costs

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1. Description: Administrative costs refer to the allocable portion of necessary and reasonable allowable costs for State and Local workforce investment boards, direct recipients, subrecipients, local fiscal agents, and one-stop operators that are not related to the direct provision of workforce investment services, including services to participants and employers.  These costs can be both personnel and non-personnel and both direct and indirect.   Administrative costs include the following:

  • Accounting
  • Budgeting
  • Cash Management
  • Procurement and Purchasing
  • Property Management
  • Personnel Management
  • Payroll
  • Audit and Audit Resolution
  • Legal Services
  • Oversight and Monitoring
  • Administrative Goods and Services Costs, including equipment purchase/rental, utilities, office supplies, postage, and office rental/maintenance
  • Administrative Travel
  • Administrative Information Systems (i.e. personnel, procurement, purchasing, property management, accounting and payroll, etc)

2. Cost Limitations:

  • State Limitation: As part of the 15% Statewide Activities reserve the State may spend up to 5% of the reserve amount for administrative costs related to Statewide Workforce Investment Activities.
  • Local Area Limitation: Local Area administrative expenditures are limited to no more than 10% of the Program Year allotment. 
  • Funding Stream "Non-allocation": Neither the 5% Statewide nor the 10% Local Area administrative reserve amounts need be allocated back to their individual funding streams.

D. Prohibited Expenditures

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1. Construction Costs: WIA title I funds may not be spent on construction or purchase of facilities or buildings except in the following circumstances:

·         ADA/Rehabilitation Act compliance: To meet a recipient’s obligation to provide physical and programmatic accessibility and reasonable accommodation as required by section 504 of the Rehabilitation Act of 1963 and the Americans with Disabilities Act of 1990.

·         SESA Property Repairs and Capital Improvements: To fund repairs,  renovations, alterations, and capital improvements of SESA real property identified at WIA section 193 using a formula that assesses costs proportionate to space utilized.

·         JTPA owned property Repairs and Capital Improvements: To fund repairs, renovations, alteration, and capital improvements of JTPA owned property that was transferred to WIA title I programs.

·         Job Corps Facilities Repairs and Capital Improvements: To fund repairs, renovations, alterations, and capital improvements to Job Corps facilities as authorized by WIA section 160(3)(B).

·         Disaster Relief Projects: To fund disaster relief employment on projects for demolition, cleaning, repair, renovation, and reconstruction of damaged and destroyed structures, facilities, and lands located within a disaster area.

2. Employment Generating Activities: WIA title I funds may not be spent on employment generating activities, economic development, and other similar activities, unless they are directly related to training for eligible individuals.  Employer outreach and job development activities are directly related to training for eligible individuals for purposes of this section.  Such activities include:

·         Potential employer contact for purpose of WIA participant placement

·         Participation in business associations, joint labor management committees, labor associations, and resource centers

·         WIA staff participation on economic development boards to provide information about WIA programs, assist with decision making related to community job training needs, and promote the use of first source hiring agreements and enterprise zone vouchering services.

·         Active participation in local business resource centers

·         Publication subscriptions

·         General dissemination of WIA program information

·         Conducting labor market surveys

·         On-the-job training opportunities development

3. Sectarian Activities: WIA title I funds may not be spent on the employment or training of participants in sectarian activities or on construction, operation, or maintenance of an y part of any facility that is used or to be used for sectarian instruction or religious worship.  However, WIA financial assistance may be use for the maintenance of a facility that is not primarily or inherently devoted to sectarian instruction or religious worship if the organization operating the facility is part of a program or activity providing services to WIA participants.

4. Business Relocation Activities: WIA funds may not be used to encourage or induce a business or part of a business to relocate from any location in the United States if the relocation results in any employee losing his or her job at the original location.  Additionally, WIA funds may not be used for customized training, skill training, or on-the-job training or company specific assessments of job applicants or employees of a business or part of a business that has relocated within the United States, until the company has operated at that location for 120 days, if the relocation resulted in any employee losing his or her jobs at the original location.

E. Veteran Income Exclusion, Employee Displacement Prohibition, Working Conditions Requirements, Nondiscrimination and EEO Requirements

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1. Veteran Income Exclusion: When past income is an eligibility determinant for Federal employment or training programs, amounts received as military pay or allowances by any person who served on active duty must be disregarded.  This requirements applies when determining if a person is a “low income individual” for eligibility purposes or if income is used as a factor in applying the priority provision under 20 CFR 663.600 when WIA Adult funds are limited.

2. Employee Displacement Prohibition: A WIA participant must not displace (including partial displacement such as a reduction in hours of non-overtime work, wages, or employment benefits) any currently employed employee.  A WIA participant may not be employed in or assigned to a job if any other individual is on layoff from the same or any substantially equivalent job, the employer has terminated the employment of any regular, unsubsidized employee or otherwise caused an involuntary reduction in its workforce with the intention of filling the created vacancy with the WIA participant, or the job is created in a promotional line that infringes in any way on the promotional opportunities of currently employed workers.

3. Working Conditions Requirements

·         Wage and Labor Standards: WIA participants and On-the-Job training employees must be compensated at the same rates, including periodic increases, as trainees or employees who are similarly situated in similar occupations by the same employer and who have similar training, experience, and skills.  Additionally, WIA participants and On-the-Job training employees must be provided benefits and working conditions at the same level and to the same extent as other trainees or employees working a similar length of time and doing the same type of work.

·         Health and Safety Standards: Health and safety standards established under Federal and State law otherwise applicable to working conditions of employees are equally applicable to working conditions of WIA title I participants.  State workers’ compensation laws apply to WIA participants on the same basis as provided to other State employees in similar employment capacities.

4. Nondiscrimination and EEO Requirement: Recipients must comply with the nondiscrimination and equal opportunity provisions of WIA section 188 and associated implementing regulations codified at 29 CFR part 37.

F. Reporting Requirements

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1. Subrecipient reporting requirements: States or other direct grant recipients may impose different formats, shorter due dates, and more frequent reporting requirements on subrecipients so long as DOL minimum reporting requirements are adhered to.

2. Financial Report Requirements: Each grant recipient must submit financial reports including any income or profits earned and costs incurred that are otherwise allowable except for funding limitations. 

3. Accounting Method: Reported expenditures and program income, including any profits earned, must be based  cumulatively reported and be based upon accrual accounting.

4. Due Dates: Financial reports are due no later than 45 days after the end of each quarter unless otherwise specified in reporting instructions.  A final financial report is required 90 days after the funding period’s expiration or termination of grant support.

5. Annual Performance Progress Report: States must submit an annual performance progress reports for the Adult, Dislocated Worker, and Youth programs.  The state must submit the report within 45 days of the due date or be subject to a succeeding year fund’s reduction up to 5%.

G. Oversight and Monitoring Requirements

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1. General Responsibility: The Secretary is authorized to monitor all recipients and subrecipients of all grants awarded under WIA title I to ensure compliance with the Act and associated regulations.  Federal oversight will be conducted primarily at the recipient level.  Each recipient (i.e. state) and subrecipient (i.e. local area) must continuously monitor grant-supporting activities in accordance with applicable uniform administrative requirements and cost principles.

2. Uniform Administrative Requirements: The state monitoring system must include an annual review of each local area’s compliance with the uniform administrative requirements.  The Governor must certify to the Secretary of Labor every two years that the state has implemented uniform administrative requirements and monitored local areas to ensure compliance.

3. State monitoring System: The state monitoring system must provide for the following:

·         Uniform Administrative Requirements compliance assurance: The state must conduct annual on-site monitoring reviews of local areas’ compliance with DOL uniform administrative requirements as required by WIA section 184(a)(4).

·         Quality Service Provision assurance: The state monitoring system must ensure that local area established policies and practices achieve program quality and meet the objectives of the Act and WIA regulations, including policies relating to: the provision of services by One-Stop Centers; eligible providers of training services, and eligible providers of youth activities. 

·         Nondiscrimination and Equal Opportunity Compliance Assurance: The state monitoring system must ensure compliance with the nondiscrimination and equal opportunity requirements of WIA section 188 and 29 CFR part 37. 

·         Corrective action procedures: The state monitoring system must ensure that corrective action is taken to remedy substantial programmatic violations. 

H. Grievance Procedures, Complaints, and State Appeals Processes

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1. Grievance and complaint procedures establishment: Each local area, state, and direct recipient must establish a process for dealing with grievances and complaints from participants and other interested parties affected by the local Workforce Investment System.

2. Informal resolution: Each local area must provide an opportunity for an informal resolution and hearing to be completed within 60 days of the grievance or complaint filing.

3. Arbitration for labor standards violation: Each local area must develop a process providing for labor standards violation grievance submissions to a binding arbitration procedure if a collective bargaining agreement so provides.

4. Appeal to state agency: Each local area must establish procedures for appeals to a state entity when no decision is reached within 60 days or either party is dissatisfied with the local hearing decision.

5. State appeals procedures:

·         General Appeals Procedures: States must develop appeals procedures that establish the following: (1) a process for handling participant and other interested parties’ grievances and complaints; (2) a process for resolving appeals from local area decisions;  (3) opportunities for informal resolutions and hearings to be completed within 60 days of the complaint or grievance’s filing.

·         Non-designation of local areas: The state must establish, and include in its State Plan, due process procedures that provide expeditious appeal to the State Board for a unit or combination of units of general local government or a rural concentrated employment program grant recipient that requests but is not granted automatic or temporary and subsequent designation as a local workforce investment area under WIA section 116(a)(2) or (a)(3).  These procedures must provide an opportunity for a hearing and prescribe appropriate time limits to ensure prompt resolution of the appeal.

·         Training provider denial or termination of eligibility: A state must establish procedures that allow training service providers the opportunity to appeal denials of eligibility by a local board or designated state agency under WIA section 122(b(, (c), or (e); termination of eligibility by a local board or state agency under WIA section 122(f); or denial of edibility as a provider of on-the-job training or customized training by a One-Stop operator under WIA section 122(h).  Such procedures must provide an opportunity for a hearing and prescribe appropriate time limits to ensure prompt resolution of the appeal.

·         Testing and sanctioning for use of controlled substances: A state must establish due process procedures providing expeditious appeal for WIA participants subject to testing for use of controlled substances under WIA section 181(f) or WIA participants subject to sanctioning after testing positive for use of controlled substances under WIA section 181(f).     

6. Appeals procedures for imposition of sanctions due to substantial violations local area performance failures:

·        Appeal Authority: A local area found to be in substantial violation of WIA title I or failing to meet local performance measures for two consecutive years that has received notice that all or part of the local plan will be revoked or that a reorganization will occur may appeal such sanctions to the Secretary of Labor under WIA sections 184(b) or 136(h)(1)(B) respectively.  The sanctions will not become effective until the time for appeal has expired or the Secretary has issued a final decision. 

·        Time Limit: Appeals must be filed no later than 30 days after receipt of written notification of the revoked plan or imposed reorganization and must be submitted by certified mail to the Secretary of Labor.  A copy must be simultaneously provided to the Governor.

·        Decision Notification: The Secretary will notify the Governor and appellant in writing of his or her decision with 45 days of receipt of appeals for substantial violation findings under WIA section 184(b) and with 30 days of receipt of appeals for failing to meet local performance measure under WIA section 136(h)(1)(B).

I. Sanctions, Corrective Actions, and Waiver of Liability

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1. Available Sanctions: Pursuant to a substantial violation of specific WIA provisions and failure to implement corrective action, the state is authorized to take the following actions:

·    Local Plan Revocation: The state may issue a notice of intent to revoke approval of all or part of the local plan affected

·    Local Area Reorganization: Alternatively, the state can  impose a reorganization plan that  may include decertification of the local board involved, prohibition of certain eligible training providers, selection of an alternative entity responsible for local area program administration, or merging of local areas.

 

2. Repayments due to Fund misexpenditure: Upon a determination that a local area has expended funds contrary to WIA requirements the state may deduct an amount equal to the misexpenditure from subsequent program year allocations to the local area from funds reserved for the administrative costs of local programs involved.  Local areas shall be liable to repay amounts from funds other than those received under WIA only upon a determination that fund misexpenditure was due to willful disregard for WIA requirements, gross negligence, or failure to observe accepted standards of administration.

3. Sanction Decisional Factors: The following considerations are taken into account when deciding whether or not to impose a sanction for violation of WIA requirements.

·         Grant monitoring system: Whether the local area established and adhered to an appropriate system for monitoring grants and contracts with subgrantees and contractors that contains acceptable e standards for ensuring accountability

·         Written agreements: Whether the local area entered into a written grant agreement or contract the subgrantee or contractor that established clear goals and obligations in unambiguous terms

·          Grant monitoring practices: Whether the local area acted with due diligence to monitor the implementation of the grant agreement or contract, including the carrying out of appropriate monitoring activities at reasonable intervals.

·         Corrective Action: Whether the local area initiate prompt and appropriate corrective action upon becoming aware of any evidence of a compliance violation by subgrantees and/or contractors.

4. Sanction Waiver Requirements:

·         Misexpenditure Requirements: Waivers will only be considered if misexpenditure was not due to willful disregard of WIA requirements, gross negligence, failure to observe accepted administrative standards, or did not constitute fraud.

·         Fraud: If fraud did exist, waivers will only be granted if it was perpetrated against the local area, and upon discovery, investigation, reporting, and cooperation in any prosecution against the perpetrator of the fraud , and after aggressive debt collection action, it has been documented that further attempts at debt collection would be inappropriate or futile.

·         Debt establishment: Prior to a waiver request the local area must have exhausted the appeal process and established a debt.

·         Waiver Request: The local area must request a waiver and provide documentation demonstrating substantial compliance with WIA section 184(d)(2).

·         Collection Inappropriateness and/or Futility: The local area will not be released from liability for misspent funds unless it is determined that further collection efforts by the local area would be inappropriate and/or futile.

5 Appeal Authority: State imposed sanctions may be appealed to the Secretary of Labor and shall not become effective until the time for appeal has expired or the Secretary has issued a decision.

 

 

 

 

 

 

 

 

 

 

 

 Workforce Investment Act

WIA Federal Regulations

 WIA Federal Regulations

Part 652 Establishment and Functioning of State Employment Services
Subpart B - Veterans Services
Part 661 WIA State and Local Governance
Part 662 - WIA One-Stop System Description
Subpart A - General Description
Part 663 - WIA Adult and Dislocated Worker Activities
Part 664 WIA Youth Activities
Part 665 Statewide Workforce Investment Activities
Subpart B - Required and Allowable Statewide Workforce Investment Activities
Part 666 WIA Performance Accountability
Part 667- WIA Administrative Provisions
Subpart C - Reporting Requirements
Part 668 - Indian and Native American Programs Under WIA Title I
Part 669 - National Farmworkers Jobs Program Under WIA Title I
Part 670 - The Job Corps under WIA Title I