20690 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 

AGENCY: Employment and Training 

Administration (ETA), Labor. 

ACTION: Notice of Proposed Rulemaking 

(NPRM). 

SUMMARY: 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: http://

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 

received that related to this NPRM on 

http://www.regulations.gov without 

making any change to the comments or 

redacting any information. The http://

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 http://

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 

http://www.regulations.gov. 

Docket: All comments on this 

proposed rule will be available on the 

http://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, 

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 

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 

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 

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 

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. 

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. 

• 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 

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 

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 

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). 

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 

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 

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. 

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. 

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 

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 

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 

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 

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. 

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. 

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 

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. 

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. 

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 What is the purpose 

of a region? 

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 

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, 

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 

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 

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 

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 2- 

year 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. 

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 

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 

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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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. 

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 

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 

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 


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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. 

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 

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 

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 

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. 

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 

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 

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 

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 

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 

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. 

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 

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 

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. 

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). 

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 

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 

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. 

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 2- 

year 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 

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 

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 

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 

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 

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 

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 

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 

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 

language training, and customized 

training. 

Section 680.200 What are training 

services for adults and dislocated 

workers? 

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 

provided in accordance with the State 

or Local Board’s priority system. 

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. 

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 

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 

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. 

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. 

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. 

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 

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 What is the purpose 

of this subpart? 

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. 

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. 

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 

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 

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 

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 

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 

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. 

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 

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 

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. 

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. 

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 

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 

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 

§ 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. 

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 

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 680.610 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. 

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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services available to participants eligible 

under both programs. 

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 

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 

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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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. 

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 

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 

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. 

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 

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. 

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 680.800 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 

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 680.830 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 680.840 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. 

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 

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. 

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 

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 

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 

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. 

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 

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 

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. 

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 

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. 

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 

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. 

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) 

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. 

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? 

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 681.440 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 

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. 

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 


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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. 

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 

access to transportation, and lack of 

knowledge of sector opportunities can 

be overcome when coordinated training 

and support is provided to workers. 

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 681.500 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, 

the local youth program must 

coordinate with the organization it 

refers to in order to ensure continuity of 

service. 

Section 681.520 What are leadership 

development opportunities? 

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 What is occupational 

skills training? 

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? 

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 

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. 

Section 681.600 What are work 

experiences? 

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. 

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 

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 

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 setVerDate Sep<11>2014 23:54 Apr 15, 2015 Jkt 235001 PO 00000 Frm 00050 Fmt 4701 Sfmt 4702 E:\FR\FM\16APP3.SGM 16APP3

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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. 

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 

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 

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 

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 

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 

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. 

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. 

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 

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 

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, 

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 

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 

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. 

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 

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 http://

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 

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/ 

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 

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. 

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 

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 

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. 

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 

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 

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. 

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 

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 

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 

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 

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. 

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 

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 

§ 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 

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. 

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. 

§ 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 

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 

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 

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-forPerformance 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 

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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 

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 

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 

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. 

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. 

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. 

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 

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 

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 

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 2- 

year 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. 

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. 

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 5- 

Year 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 

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 

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). 

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 684.230 What appeal rights are 

available to entities that are denied a 

grant award? 

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. 

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. 

Section 684.270 How are Workforce 

Innovation and Opportunity Act funds 

allocated to Indian and Native American 

program grantees? 

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 

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 

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 

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 4- 

year 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. 

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 

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. 

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). 

6. Subpart E—Services to Communities 

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. 

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. 

7. Subpart F—Accountability for 

Services and Expenditures 

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 684.610 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. 

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 

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 

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 4- 

year 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 4- 

year 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 4- 

year 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 4- 

year 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 

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 4- 

year 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. 

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 

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 

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 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. 

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. 

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 

section implements and carries out the 

requirements in WIOA sec. 166(k). 

I. Part 685—National Farmworker Jobs 

Program Under Title I of the Workforce 

Innovation and Opportunity Act 

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 

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 

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 

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. 

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. 

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 

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. 

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 

§ 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 

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. 

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 

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. 

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 685.420 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 

set forth in the FOA issued under 

§ 685.210. 

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 685.440 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 685.450 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. 

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 

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 685.500 What is supplemental 

youth workforce investment activity 

funding? 

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. 

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. 

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). 

J. Part 686—The Job Corps Under Title 

I of the Workforce Innovation and 

Opportunity Act 

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. 

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 What is the scope of 

this part? 

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 What is the Job Corps 

program? 

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. 

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 

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 

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 

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. 

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 

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 

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 

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). 

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 

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 

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. 

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. 

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 

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 

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). 

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 

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. 

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 

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 

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. 

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 

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 

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. 

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 

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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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. 

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. 

This proposed section retains the 

same requirements as those found at 20 

CFR 670.965. 

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. 

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 

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 6- 

Month 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 

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. 

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 

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 

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 

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 

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 

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 

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. 

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 

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. 

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. 

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 

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. 

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 

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 

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 

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, http://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 

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 

(http://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 

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 

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. 

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. 

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. 

Section 688.240 How are eligible 

entities notified of approval for grant 

funds? 

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 Who is an eligible 

participant? 

This proposed section sets out the 

participant eligibility requirements for 

enrollment in the YouthBuild program. 

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 688.310 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. 

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 


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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 

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 

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? 

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 

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 

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. 

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. 

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. 

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. 

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 

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. 

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. 

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 

period of performance. The Department 

specifically requests comments on the 

restrictive covenant requirement and 

our proposal to shorten the length of the 

covenant. 

M. Part 651—General Provisions 

Governing the Federal-State 

Employment Service System 

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 

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 

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 

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. 

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). 

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. 

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 

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 

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, 

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. 

3. Subpart B—Services for Veterans 

This subpart merely refers the reader 

to the relevant regulatory section 

governing services to veterans. 

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. 

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 

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? 

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. 

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. 

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. 

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. 

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 

‘‘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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3Based 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. 

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 (http://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. 

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 

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 

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 


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4 Ibid. 

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, 

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 

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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5 Ibid. 

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. 

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 

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: 

http://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 

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 Purpose and Scope of 

Subpart 

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 

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 

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 

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 

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 

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. 

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 

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 

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. 

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 

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 

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: 

Section 654.400 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. 

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. 

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. 

Q. Part 658—Administrative Provisions 

Governing the Employment Service 

System 

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 

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. 

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 

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 7- 

percent 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 

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 

(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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6 Ibid. 

7 Department of Labor estimate. 

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 

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 7- 

percent 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. 

EXHIBIT 1—NUMBER OF AFFECTED

ENTITIES BY TYPE

Entity type Number of 

entities 

States impacted by DOL program requirements ................ 6 56 

States without collocated Wagner-Peyser offices and onestops ...................................... 7 10 

States without sector strategies 2 21 

States that need to create Unified State Plans ..................... 2 14 

States that must pay their 

share for proportionate use 

of one-stop delivery systems 2 54 

Local areas without collocated 

Wagner-Peyser offices and 

one-stops .............................. 2 100 

Workforce development boards 2 580 

Workforce development boards 

selecting one-stop operators 2 250 

Local Boards performing regional plan modifications ...... 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. 


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8Bureau of Labor Statistics, May 2013, National 

Occupational Employment and Wage Estimates, 

retrieved from: http://www.bls.gov/oes/current/oes_

nat.htm. 9The 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: http://www.opm.gov/policy-dataoversight/pay-leave/salaries-wages/2013/generalschedule/gs_h.pdf). 10BLS Employment Cost Index, 2013 Average 

Series ID CMU3010000000000D, 

CMU3010000000000P (source: Bureau of Labor 

Statistics, 2013 Employer Costs for Employee 

Compensation, retrieved from: http://www.bls.gov/

schedule/archives/ecec_nr.htm). 

11The 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. 

12BLS OES, May 2013, 43–0000 Office and 

Administrative Support Occupations (http://

www.bls.gov/oes/current/999201.htm#43-0000). 

13BLS OES, May 2013, 23–10111 Lawyers 

(http: 

//www.bls.gov/oes/current/999201.htm#23-0000). 

14BLS OES, May 2013, 15–1131 Computer 

Programmers (http://www.bls.gov/oes/current/

oes151131.htm). 

15BLS OES, May 2013, 11–1021 General and 

Operations Managers (http://www.bls.gov/oes/

current/999201.htm#11-0000). 

16BLS 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 

(http://www.bls.gov/oes/current/999201.htm#15- 

0000). 

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 

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

Position Grade level Average 

hourly wage 

Loaded wage 

factor 

Hourly 

compensation 

rate 

a b c = a × b 

State and Local Employees 

Administrative staff 12 ....................................................................................... N/A $17.96 1.55 $27.84 

Legal counsel staff 13 ....................................................................................... ........................ 40.68 ........................ 63.05 

IT reprogramming or database development staff 14 ...................................... ........................ 38.91 ........................ 60.31 

Managers 15 ..................................................................................................... ........................ 45.32 ........................ 70.25 

Technical staff 16 .............................................................................................. ........................ 43.38 ........................ 67.24 

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 

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 

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 10- 

year analysis period. 

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, 

Aj Number of affected entities incurring 

non-labor costs of type j, 

Cj Non-labor cost of type j, 

i Staff type, 

n Number of staff types, 

j Non-labor cost type, 

m Number of non-labor cost types, 

T Year. 

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 


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17The number of States that have not established 

career pathways is provided in the ‘‘National 

Dialogue on Career Pathways Viewing Party 

Guide.’’ 

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 

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. 

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. 

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 

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. 

Costs 

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 


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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. 

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. 

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 

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. 

e. State Plan Modification 

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 4- 

year 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. 

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. 

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. 

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. 

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 

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. 

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. 

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 

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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18The 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. 

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. 

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. 

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 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 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 

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 10- 

year 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. 

o. Improved Information About 

Potential Training Program Providers 

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. 

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. 

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. 

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 


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19The 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. 

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. 

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 

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 

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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20This 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. 

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. 

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 

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, 

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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20824 Federal Register / Vol. 80, No. 73 / Thursday, April 16, 2015 / Proposed Rules 

EXHIBIT 3—COSTS OF THE PROPOSED RULE BY PROVISION

Provision 

Total 10-year 

cost 

(undiscounted) 

Average annual 

cost 

(undiscounted) 

Percent of 

total cost Qualitative benefit highlights 

(a) New State Workforce Development 

Board Membership Requirements.

$313,435 $31,343 0.08 Policy implementation efficiencies from reduced size and maneuverability. 

(b) Development and Continuous Improvement of the Workforce Development 

System.

92,078,720 9,207,872 23.96 Mission clarification and ongoing commitment should foster future envisioned 

benefits continuing to accrue. 

(c) Development of Statewide Policies Affecting the State’s One-stop System.1,202,284 120,228 0.31 Mission clarification for State WDBs and 

overall system building capacity. 

(d) Development of Strategies for Technological Improvements.2,292,909 229,291 0.60 Recognition of the efficiencies generated 

by technology and enhanced management capabilities especially utilizing outcome data. 

(e) State Plan Modification ......................... 135,005 13,501 0.04 More efficient use of public resources; enhanced customer service; improved program management based on actual client data. 

(f) Identification of Regions ......................... 1,101,266 110,127 0.29 Enhanced employer and employee services as a result of recognition of real 

labor markets (without artificial jurisdictional boundaries). 

(g) Appoint New Local Workforce Development Board and Appropriate Firewalls.4,644,773 464,477 1.21 Efficient use of board time; avoids conflicts of interest and negative publicity; 

administrative savings. 

(h) Career Pathways Development ............ 70,679,380 7,067,938 18.39 Improved educational and employment 

outcomes; potential employees are better prepared for jobs. 

(i) Development of Proven and Promising 

Practices.

2,879,850 287,985 0.75 Improved job placements and customer 

service. 

(j) Technology ............................................. 23,747,984 2,374,798 6.18 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. 

(k) Selection of the One-stop Operator ...... 19,044,540 1,904,454 4.95 Improved public confidence in the process; avoided conflicts of interest. 

(l) Coordination with Education Providers .. 3,195,282 319,528 0.83 Improved preparation of workers and 

youth for future jobs; enhanced placements and outcomes. 

(m) Regional Plans ..................................... 10,342,671 1,034,267 2.69 Savings from expanded collaboration; increased services to customers; reduced 

administrative overhead. 

(n) Local and Regional Plan Modification ... 4,089,800 408,980 1.06 Increased coordination of services leading 

to resource efficiencies; transparency. 

(o) Improved Information about Potential 

Training Program Providers.

5,518,258 551,826 1.44 Improved customer decision-making; linkage of resources to outcomes and accountability for training and improved 

placement outcomes. 

(p) Sanctions on Under-performing States 5,209,389 520,939 1.36 Improved services; better use of WIOA 

funds; enhanced recognition of performance imperatives by States and local 

areas; more accountability. 

(q) Co-location of Wagner-Peyser Services 63,903,952 6,390,395 16.63 Reduced administrative overhead; improved service delivery and customer 

service; more efficient and effective 

public administration. 

(r) Partners Required to Pay their Share 

for Proportionate Use of One-stop Delivery System.

67,968,752 6,796,875 17.68 Expanded system cohesion; improved 

service delivery; avoidance of fragmented or duplication of services. 

(s) Establishing Training Provider Eligibility 

Procedures, Including Adding Registered 

Apprenticeship.

529,202 52,920 0.14 Increased training opportunities, especially 

for youth; effective administration linking 

to accountability and outcomes. 

(t) Determining Eligibility of New and Previously Eligible Providers.1,141,628 114,163 0.30 Increased transparency; uniform treatment 

of ETPs; reduced incidents of non-meritorious performance. 

(u) Biennial Review of Eligibility .................. 2,653,580 265,358 0.69 Increased competition leading to more and 

better placements. 

(v) Disseminating the Training Provider List 

with Accompanying Information.

1,705,125 170,513 0.44 More informed customer choice; clearer 

link of training resources to desired outcomes; more transparency. 


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Federal Register / Vol. 80, No. 73 / Thursday, April 16, 2015 / Proposed Rules 20825 

EXHIBIT 3—COSTS OF THE PROPOSED RULE BY PROVISION—Continued 

Provision 

Total 10-year 

cost 

(undiscounted) 

Average annual 

cost 

(undiscounted) 

Percent of 

total cost Qualitative benefit highlights 

(w) Migrant and Seasonal Farmworker 

Housing.

Not quantified. 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. 

Total ..................................................... 384,377,787 38,437,778 100.00 

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 

Percent of total 

first-year cost 

(a) New State Workforce Development Board Membership Requirements ............................................... $313,435 0.33 

(b) Development and Continuous Improvement of the Workforce Development System .......................... 9,775,773 10.34 

(c) Development of Statewide Policies Affecting the State’s One-stop System ......................................... 1,202,284 1.27 

(d) Development of Strategies for Technological Improvements ................................................................ 229,291 0.24 

(e) State Plan Modification .......................................................................................................................... 0 0.00 

(f) Identification of Regions .......................................................................................................................... 0 0.00 

(g) Appoint New Local Workforce Development Board and Appropriate Firewalls .................................... 4,644,773 4.91 

(h) Career Pathways Development ............................................................................................................. 7,067,938 7.47 

(i) Development of Proven and Promising Practices .................................................................................. 287,985 0.30 

(j) Technology .............................................................................................................................................. 2,374,798 2.51 

(k) Selection of the One-stop Operator ....................................................................................................... 0 0.00 

(l) Coordination with Education Providers ................................................................................................... 319,528 0.34 

(m) Regional Plans ...................................................................................................................................... 0 0.00 

(n) Local and Regional Plan Modification ................................................................................................... 0 0.00 

(o) Improved Information about Potential Training Program Providers ...................................................... 551,826 0.58 

(p) Sanctions on Under-performing States .................................................................................................. 520,939 0.55 

(q) Co-location of Wagner-Peyser Services ................................................................................................ 63,903,952 67.57 

(r) Partners Required to Pay their Share for Proportionate Use of One-stop Delivery System ................. 0 0.00 

(s) Establishing Training Provider Eligibility Procedures, Including Adding Registered Apprenticeship .... 529,202 0.56 

(t) Determining Eligibility of New and Previously Eligible Providers ........................................................... 1,141,628 1.21 

(u) Biennial Review of Eligibility .................................................................................................................. 0 0.00 

(v) Disseminating the Training Provider List with Accompanying Information ............................................ 1,705,125 1.80 

(w) Migrant and Seasonal Farmworker (MSFW) Housing .......................................................................... Not quantified. 

Total ...................................................................................................................................................... 94,568,477 100.00 

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 10- 

year 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 

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). 

EXHIBIT 5—MONETIZED COSTS OF THE

PROPOSED DOL RULE

[2013 dollars] 

Year Total costs 

2015 ...................................... $94,568,478 

2016 ...................................... 32,567,226 

2017 ...................................... 43,153,328 

2018 ...................................... 24,039,512 

2019 ...................................... 20,497,077 

2020 ...................................... 55,886,872 

2021 ...................................... 20,497,077 

2022 ...................................... 22,506,238 


tkelley on DSK3SPTVN1PROD with REGISTER-BK 2 CV
20826 Federal Register / Vol. 80, No. 73 / Thursday, April 16, 2015 / Proposed Rules 

21 Department of Labor et al. ‘‘What Works In Job 

Training: A Synthesis of the Evidence.’’ July 2014. 

22 Ibid. 

23 Decker, Paul T. and Jillian A. Berk. 2011. ‘‘Ten 

Years of the Workforce Investment Act (WIA): 

Interpreting the Research on WIA and Related 

Programs.’’ Journal of Policy Analysis and 

Management 30 (4): 906–926. 

24Hollenbeck, 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 http://

wdr.doleta.gov/research/keyword.cfm?fuseaction=

dsp_puListingDetails&pub_id =2367&mp=y&

start=81&sort=7. 

25Heinrich, Carolyn J., Peter R. Mueser, and 

Kenneth R. Troske. ‘‘Workforce Investment Act 

Non-Experimental Net Impact Evaluation.’’ 

Columbia, MD: IMPAQ International, LLC, 2009. 

26Park, Jooyoun. ‘‘Does Occupational Training by 

the Trade Adjustment Assistance Program Really 

Help Reemployment? Success Measured as 

Matching.’’ Washington, DC: U.S. Department of 

Labor, Employment and Training Administration, 

2011. 

27Park, Jooyoun. ‘‘Does Occupational Training by 

the Trade Adjustment Assistance Program Really 

Help Reemployment? Success Measured as 

Matching.’’ Washington, DC: U.S. Department of 

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 

http://wdr.doleta.gov/research/FullText_

Documents/YO%20Impact%20and%20

Synthesis%20Report.pdf. 

29Office 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 http://wdr.doleta.

gov/research/keyword.cfm?fuseaction=dsp_result

Details&pub_id=2516&mp=y. 

30Barnow, 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 http://

wdr.doleta.gov/research/keyword.cfm?fuseaction=

dsp_puListingDetails&pub_id=2365&mp=y&start=

81&sort=7. 

31Barnow, 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 http://wdr.doleta.

gov/research/keyword.cfm?fuseaction=dsp__pu

ListingDetails&pub__id=2365&mp=y&start=81&

sort=7. 

EXHIBIT 5—MONETIZED COSTS OF THE

PROPOSED DOL RULE—Continued 

[2013 dollars] 

Year Total costs 

2023 ...................................... 43,153,328 

2024 ...................................... 27,508,652 

Undiscounted 10-year Total 384,377,787 

10-year Total with 3% Discounting ............................. 345,897,084 

10-year Total with 7% Discounting ............................. 305,556,353 

10-year Average ................... 38,437,778 

Annualized with 3% Discounting ............................. 40,549,690 

Annualized with 7% Discounting ............................. 43,504,350 

Note: Totals might not sum due to rounding. 

Benefits 

The Department was unable to 

quantify the benefits associated with the 

proposed rule because of data 

limitations and a lack of operational 

(WIOA) data or evaluation findings on 

the provisions of the proposed rule. 

Thus, the Department is unable to 

provide monetary estimates of several 

important benefits to society, including 

the increased employment opportunities 

for unemployed or under-employed U.S. 

workers, benefits of colocation of 

Wagner-Peyser Services, enhanced ETP 

process, regional planning, and 

evaluation of State programs. In support 

of a State’s strategic plan and goals, 

State-conducted evaluation and research 

of programs would enable each State to 

test various interventions geared toward 

State conditions and opportunities. 

Results from such evaluation and 

research, if used by States, could 

improve service quality and 

effectiveness and, thus, potentially lead 

to higher employment rates and 

earnings among participants. 

Implementing various innovations that 

have been tested and found effective 

could also lead to lower unit costs and 

increased numbers of individuals served 

within a State. Sharing the findings 

nationally could lead to new service or 

management practices that other States 

could adopt to improve participant 

results, lower unit costs, or increase the 

number served. 

The Department invites comments 

regarding possible data sources or 

methodologies for estimating these 

benefits. In addition, the Department 

invites comments regarding other 

benefits that might arise from the 

proposed rule and how these benefits 

could be estimated. 

The Department provides a qualitative 

description of the anticipated WIOA 

benefits below. These qualitative 

forecasts are predicated on program 

experience and are outcomes for which 

data will only become available after 

implementation. Although these studies 

are largely based on programs and their 

existing requirements under WIA, we 

believe that they capture the essence of 

the societal benefits that can be 

expected from this proposed rule. 

Training’s impact on placement. A 

recent study found that flexible and 

innovative training which is closely 

related to a real and in-demand 

occupation is associated with better 

labor market outcomes for training 

participants. Youth disconnected from 

work and school can benefit from 

comprehensive and integrated models of 

training that combine education, 

occupational skills, and support 

services.21 However, the study noted 

that evidence for effective employment 

and training-related programs for youth 

is less extensive than for adults, and 

that there are fewer positive findings 

from evaluations.22 The WIA youth 

program remains largely untested.23

One study found that WIA training 

services increase placement rates by 4.4 

percent among adults and by 5.9 percent 

among dislocated workers,24 while 

another study concluded that placement 

rates are 3 to 5 percent higher among all 

training recipients.25

Participants in occupational training 

had a ‘‘5 percentage points higher 

reemployment rate than those who 

received no training, and reemployment 

rates were highest among recipients of 

on-the-job training, a difference of 10 to 

11 percentage points.’’ 26 However, the 

study found that training did not 

correspond to higher employment 

retention or earnings.27 A Youth 

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 


tkelley on DSK3SPTVN1PROD with REGISTER-BK 2 CV
Federal Register / Vol. 80, No. 73 / Thursday, April 16, 2015 / Proposed Rules 20827 

32Earnings Progression among Workforce 

Development Participants: Evidence from 

Washington State.’’ Eugene, OR: University of 

Oregon, 2011. Available at http://wdr.doleta.gov/

research/keyword.cfm?fuseaction=dsp__puListing

Details&pub__id=2468&mp=y&start=1&sort=7. 

33Heinrich, Carolyn J., Peter R. Mueser, and 

Kenneth R. Troske. ‘‘Workforce Investment Act 

Non-Experimental Net Impact Evaluation.’’ 

Columbia, MD: IMPAQ International, LLC, 2009. 

34Heinrich, 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 http://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 http://wdr.doleta.gov/research/

keyword.cfm?fuseaction=dsp_puListingDetails&

pub_id=2257&mp=y&start=141&sort=7. 

36Hollenbeck, 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 http://wdr.

doleta.gov/research/FullText_Documents/Net%20

Impact%20Estimates%20for%20Services%20

Provided%20through%20the%20Workforce%20

Investment%20Act-%20Final%20Report.pdf. 

37Needels, Karen, Jeanne Bellotti, Mina Dadgar, 

and Walter Nicholson. ‘‘Evaluation of the Military 

Base National Emergency Grants: Final Report.’’ 

Princeton, NJ: Mathematica Policy Research, 2006. 

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. 

40Heinrich, 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. 

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 

http://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 

http://wdr.doleta.gov/research/keyword.cfm?

fuseaction=dsp_puListingDetails&pub_id=2213&

mp=y&start=201&sort=7. 

43 Ibid. 

44Heinrich, 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. 

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 

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 

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 


tkelley on DSK3SPTVN1PROD with REGISTER-BK 2 CV
20828 Federal Register / Vol. 80, No. 73 / Thursday, April 16, 2015 / Proposed Rules 

49Wandner, 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. 

50Courty, Pascal, and Gerald Marschke. ‘‘Making 

Government Accountable: Lessons from a Federal 

Job Training Program.’’ Public Administration 

Review 67.5 (2007): 904–916. 

51Heckman, 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. 

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 

http://wdr.doleta.gov/research/keyword.cfm?fuse

action=dsp_puListingDetails&pub_id=2408&mp=y&

start=41&sort=7. 

55Hollenbeck, 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 http://wdr.

doleta.gov/research/FullText_Documents/Net%20

Impact%20Estimates%20for%20Services%20

Provided%20through%20the%20Workforce%20

Investment%20Act-%20Final%20Report.pdf. 

56Heinrich, 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 http://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 http://wdr.doleta.

gov/research/keyword.cfm?fuseaction=dsp_pu

ListingDetails&pub_id=2293&mp=y&start=121&

sort=7. 

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 

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. 

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 public comment a 

summary of the collection of 

information and a brief description of 

the need for and proposed use of the 

information. 

As part of its continuing effort to 

reduce paperwork and respondent 

burden, the Department conducts a 

preclearance consultation program to 

provide the general public and Federal 

agencies with an opportunity to 

comment on proposed and continuing 

collections of information in accordance 

with the PRA. See 44 U.S.C. 

3506(c)(2)(A). This activity helps to 

ensure that the public understands the 

Department’s collection instructions, 

respondents can provide the requested 

data in the desired format, reporting 

burden (time and financial resources) is 

minimized, collection instruments are 

clearly understood, and the Department 

can properly assess the impact of 

collection requirements on respondents. 

Furthermore, the PRA requires all 

Federal agencies to analyze proposed 

regulations for potential time burdens 

on the regulated community created by 

provisions in the proposed regulations, 

which require the submission of 

information. The information collection 

requirements must also be submitted to 

the OMB for approval. 

The Department notes that a Federal 

agency may not conduct or sponsor a 

collection of information unless it is 

approved by the OMB under the PRA 

and displays a currently valid OMB 

control number. The public is also not 

required to respond to a collection of 

information unless it displays a 

currently valid OMB control number. In 

addition, notwithstanding any other 

provisions of law, no person will be 

subject to penalty for failing to comply 

with a collection of information if the 

collection of information does not 

display a currently valid OMB control 

number (44 U.S.C. 3512). 

The information collections in this 

rule are summarized as follows. 

(Detailed information about the 

information collections identified in 

this summary is available in the sectionVerDate Sep<11>2014 23:54 Apr 15, 2015 Jkt 235001 PO 00000 Frm 00140 Fmt 4701 Sfmt 4702 E:\FR\FM\16APP3.SGM 16APP3

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by-section discussion of this NPRM, 

Section IV.) The table below captures 

the current and proposed burden hours 

associated with the information 

collections. 

CURRENT AND PROPOSED INFORMATION COLLECTION BURDENS

OMB approval No. 

Burden hours 

currently 

approved 

Burden hours 

proposed Change 

1205–0NEW ................................................................................................................................. 0 8,550 8,550 

1205–3NEW ................................................................................................................................. * 161,373 161,373 0 

1205–0001 ................................................................................................................................... 416 416 0 

1205–0039 ................................................................................................................................... 8,521 8,521 0 

1205–0219 ................................................................................................................................... 38,610 38,610 0 

1205–0426 ................................................................................................................................... 11,440 19,153 7,713 

1205–0439 ................................................................................................................................... 1,006 1,066 60 

1205–0461 ................................................................................................................................... 3,392 5,088 1,696 

Total ...................................................................................................................................... 224,758 242,777 18,019 

* OMB 1205–3NEW would not increase burden hours because it would consolidate information collections from three currently approved information collections: OMB 1205–0422, OMB 1205–0425, OMB 1205–0464. 

The Department anticipates that the 

above collections may be phased out or 

modified, as appropriate, as WIOA 

requirements are fully implemented. 

Agency: DOL–ETA. 

Title of Collection: State Training 

Provider Eligibility Collection. 

OMB Control Number: 1205–0NEW. 

Description: Under WIOA sec. 122, 

the Governor, after consultation with 

the State Board, 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. The proposed rule describes the 

process for adding ‘‘new’’’ providers to 

the ETPL, explains the detailed 

application process for previously WIAeligible providers to remain eligible 

under WIOA, describes the performance 

information that providers are required 

to submit to the State in order to 

establish or renew eligibility, and 

explains the requirements for 

distributing the ETPL and 

accompanying information about the 

programs and providers on the list. 

Affected Public: State, local, and tribal 

governments, and private sector. 

Obligation to Respond: Required to 

obtain or retain a benefit (WIOA sec. 

122). 

Total Estimated Number of 

Respondents Annually: 11,400 (11,400 

additional respondents resulting from 

this rulemaking). 

Total Estimated Number of Annual 

Responses: 11,400 (11,400 additional 

responses resulting from this 

rulemaking). 

Total Estimated Annual Time Burden: 

8,550 hours (8,550 additional hours 

resulting from this rulemaking). 

Total Estimated Annual Other Costs 

Burden: $0 (no change as a result of this 

rulemaking). 

NPRM Sections Containing 

Information Collections Approved 

Under this Control Number: § 680.450, 

§ 680.460, § 680.490, § 680.500. 

Title of Collection: WIOA 

Performance Management and 

Information and Reporting System 

(YouthBuild, National Farmworkers 

Jobs Program, Indian and Native 

Americans Program). 

OMB Control Number: 1205–3NEW. 

Description: This new information 

collection will consolidate the existing 

information collections for YouthBuild, 

National Farmworkers Jobs Program, 

Indian and Native Americans Program 

participants. These information 

collections are currently approved 

under OMB Control Numbers 1205– 

0422, 1205–0425, and 1205–0464. The 

WIOA Performance Management and 

Information and Reporting System 

would standardize the initial 

application, quarterly, and annual 

reporting processes for program 

participants. 

Affected Public: State, local, and tribal 

governments, and private sector. 

Obligation to Respond: Required to 

obtain or retain benefits (WIOA, 

sections 166, 167, and 171). 

Total Estimated Number of 

Respondents Annually: 377 (no 

additional respondents resulting from 

this rulemaking). 

Total Estimated Number of Annual 

Responses: 29,682 (no additional 

respondents resulting from this 

rulemaking). 

Total Estimated Annual Time Burden: 

161,373 hours (no additional 

respondents resulting from this 

rulemaking). 

Total Estimated Annual Other Costs 

Burden: $0 (no change as a result of this 

rulemaking). 

NPRM Sections Containing 

Information Collections Approved 

Under this Control Number: § 684.420, 

§ 684.610, § 684.700, § 684.800, 

§ 685.210, § 685.400, § 688.420, 

§ 688.610. 

Title of Collection: Work Application 

and Job Order Recordkeeping. 

OMB Control Number: 1205–0001. 

Description: The proposed rule would 

not affect the burden hours associated 

with creating work application and job 

order records. However, the rule would 

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. 

Affected Public: State governments. 

Obligation to Respond: Required to 

obtain or retain a benefit (WIOA sec. 

121). 

Total Estimated Number of 

Respondents Annually: 52 (no change as 

a result of this rulemaking). 

Total Estimated Number of Annual 

Responses: 52 (no change as a result of 

this rulemaking). 

Total Estimated Annual Time Burden: 

416 hours (no change as a result of this 

rulemaking). 

Total Estimated Annual Other Costs 

Burden: $0 (no change as a result of this 

rulemaking). 

NPRM Sections Containing 

Information Collections Approved 

Under this Control Number: § 652.8. 

Title of Collection: Migrant and 

Seasonal Farmworker Monitoring 

Report and One-Stop Career Center 

Complaint/Referral Record. 

OMB Control Number: 1205–0039. 

Description: WIOA expands the 

existing complaint system under 20 CFR 


tkelley on DSK3SPTVN1PROD with REGISTER-BK 2 CV
20830 Federal Register / Vol. 80, No. 73 / Thursday, April 16, 2015 / Proposed Rules 

part 658 subpart E to require most 

employment-related law complaints by 

MSFWs to be recorded, referred, and 

tracked to resolution. Under existing 

regulations, employment-related law 

complaints by MSFWs are not recorded, 

referred, and tracked to resolution. 

Affected Public: State and local 

governments, and individuals. 

Obligation to Respond: Required to 

obtain or retain a benefit (WIOA sec. 

167). 

Total Estimated Number of 

Respondents Annually: 3,586 (no 

change as a result of this rulemaking). 

Total Estimated Number of Annual 

Responses: 3,786 (no change as a result 

of this rulemaking). 

Total Estimated Annual Time Burden: 

8,521 hours (no change as a result of 

this rulemaking). 

Total Estimated Annual Other Costs 

Burden: $0 (no change as a result of this 

rulemaking). 

NPRM Sections Containing 

Information Collections Approved 

Under this Control Number: § 653.107, 

§ 653.108(g)(6), § 653.108(s), 

§ 653.108(i), § 653.108(m), § 653.410, 

§ 658.601, § 658.601(a). 

Title of Collection: Standard Job Corps 

Contractor Gathering Information. 

OMB Control Number: 1205–0219. 

Description: The proposed rule would 

retain the same information collection 

requirements as those currently found at 

20 CFR 670.960, but would relocate the 

requirements to 20 CFR 686.945. 

Consistent with existing rules, the 

proposed rule would require the 

Department to provide guidelines for 

maintaining records for each student 

during enrollment and for disposition of 

records after separation. As a result, the 

Department does not anticipate any 

changes in the information collection. 

Affected Public: Private sector. 

Obligation to Respond: Required to 

obtain or retain a benefit (WIOA sec. 

147). 

Total Estimated Number of 

Respondents Annually: 97 (no change as 

a result of this rulemaking). 

Total Estimated Number of Annual 

Responses: 184,628 (no change as a 

result of this rulemaking). 

Total Estimated Annual Time Burden: 

38,610 hours (no change as a result of 

this rulemaking). 

Total Estimated Annual Other Costs 

Burden: $0 (no change as a result of this 

rulemaking). 

NPRM Sections Containing 

Information Collections Approved 

Under this Control Number: § 686.945. 

Title of Collection: Placement 

Verification and Follow-up of Job Corps 

Participants. 

OMB Control Number: 1205–0426. 

Description: Job Corps’ performance 

management system, which includes the 

OMS, is a well-established measurement 

system the Job Corps community has 

been using 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, but may also include 

breakouts of data that will help program 

managers target interventions in order to 

achieve the primary indicators. As a 

result, additional information would be 

collected from respondents. 

Affected Public: Individuals or 

households and private sector. 

Obligation to Respond: Voluntary. 

Total Estimated Number of 

Respondents Annually: 88,060 (34,737 

additional respondents resulting from 

this rulemaking). 

Total Estimated Number of Annual 

Responses: 88,060 (34,737 additional 

responses resulting from this 

rulemaking). 

Total Estimated Annual Time Burden: 

19,153 hours (7,713 additional hours 

resulting from this rulemaking). 

Total Estimated Annual Other Costs 

Burden: $0 (no change as a result of this 

rulemaking). 

NPRM Sections Containing 

Information Collections Approved 

Under this Control Number: § 686.945, 

§ 686.955, § 686.1000, § 686.1010, 

§ 686.1020, § 686.1030, and § 686.1040. 

Title of Collection: National 

Emergency Grant Assistance— 

Application and Reporting Procedures. 

OMB Control Number: 1205–0439. 

Description: Specified activities must 

be conducted before an application for 

a National Dislocated Worker Grant 

(NDWG) is submitted. The proposed 

rule requires that a project 

implementation plan, which is already 

required for all NEGs under WIA, be 

submitted post-NDWG award. However, 

currently this requirement is included 

only in guidance; this NPRM proposes 

to add this requirement to the 

regulations. 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. 

Affected Public: State, local, and tribal 

governments. 

Obligation to Respond: Required to 

obtain or retain a benefit (WIOA sec. 

170). 

Total Estimated Number of 

Respondents Annually: 159 (9 

additional respondents resulting from 

this rulemaking). 

Total Estimated Number of Annual 

Responses: 1,574 (89 additional 

responses resulting from this 

rulemaking). 

Total Estimated Annual Time Burden: 

1,066 hours (60 additional hours 

resulting from this rulemaking). 

Total Estimated Annual Other Costs 

Burden: $0 (no change as a result of this 

rulemaking). 

NPRM Sections Containing 

Information Collections Approved 

Under this Control Number: § 687.150. 

Title of Collection: Employment and 

Training Administration Financial 

Report Form 9130. 

OMB Control Number: 1205–0461. 

Description: Existing rules require 

grantees to submit quarterly financial 

reports. The proposed rule reflects 

OMB’s Uniform Guidance, which 

standardizes the administrative, cost, 

and audit provisions for all grants and 

cooperative agreements provided under 

part 683. The proposed rule would 

establish consistent and uniform 

guidance that increases accountability 

and transparency, promotes fiscal 

integrity, and reduces duplication in the 

quarterly financial reports. 

Affected Public: State, local, and tribal 

governments, and private sector. 

Obligation to Respond: Required to 

obtain or retain a benefit (2 CFR 

200.327). 

Total Estimated Number of 

Respondents Annually: 848 (no change 

as a result of this rulemaking). 

Total Estimated Number of Annual 

Responses: 6,784 (no change as a result 

of this rulemaking). 

Total Estimated Annual Time Burden: 

5,088 hours (1,696 additional hours as 

a result of this rulemaking). 

Total Estimated Annual Other Costs 

Burden: $0 (no change as a result of this 

rulemaking). 

NPRM Sections Containing 

Information Collections Approved 

Under this Control Number: § 681.430, 

§ 683.150, § 683.200, § 683.300, 

§ 683.730, § 683.740, § 683.750. 

Interested parties may obtain a copy 

free of charge of one or more of the 

information collection requests 

submitted to the OMB on the 

reginfo.gov Web site at http://

www.reginfo.gov/public/do/PRAMain. 

From the Information Collection Review 

tab, select Information Collection 

Review. Then select Department of 

Labor from the Currently Under Review 

dropdown menu, and look up the 

Control Number. A free copy of the 

requests may also be obtained by 

contacting the person named in the 

ADDRESSES section of this preamble. 


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As noted in the ADDRESSES section of 

this NPRM, interested parties may send 

comments about the information 

collections to the Department 

throughout the 60-day comment period 

and/or to the OMB within 30 days of 

publication of this notice in the Federal 

Register. In order to help ensure 

appropriate consideration, comments 

should mention the applicable OMB 

Control Number(s). The Department and 

OMB are particularly interested in 

comments that: 

• Evaluate whether the proposed 

collection of information is necessary 

for the proper performance of the 

functions of the agency, including 

whether the information will have 

practical utility; 

• Evaluate the accuracy of the 

agency’s estimate of the burden of the 

proposed collection of information, 

including the validity of the 

methodology and assumptions used; 

• Enhance the quality, utility, and 

clarity of the information to be 

collected; and 

• Minimize the burden of the 

collection of information on those who 

are to respond, including through the 

use of appropriate automated, 

electronic, mechanical, or other 

technological collection techniques or 

other forms of information technology, 

e.g., permitting electronic submission of 

responses. 

The Department notes that in order to 

meet WIOA requirements, several 

information collections mentioned in 

this NPRM need to be in place prior to 

the final rule taking effect. The 

Department will follow PRA 

requirements in clearing the collections 

(emergency procedures, as appropriate), 

including providing appropriate public 

engagement and taking into account the 

comments received as part of this 

rulemaking. 

C. Executive Order 13132: Federalism 

E.O. 13132 requires Federal agencies 

to ensure that the principles of 

Federalism established by the Framers 

of our Constitution guide the executive 

departments and agencies in the 

formulation and implementation of 

policies and to further the policies of 

the Unfunded Mandates Reform Act. 

Further, agencies shall strictly adhere to 

constitutional principles. Agencies shall 

closely examine the constitutional and 

statutory authority supporting any 

action that would limit the policymaking discretion of the States and they 

shall carefully assess the necessity for 

any such action. To the extent 

practicable, State and local officials 

shall be consulted before any such 

action is implemented. Section 3(b) of 

the Executive Order further provides 

that Federal agencies must implement 

regulations that have a substantial direct 

effect only if statutory authority permits 

the regulation and it is of national 

significance. The Department has 

reviewed the WIOA NPRM in light of 

these requirements and have 

determined that, with the enactment of 

WIOA and its clear requirement to 

publish national implementing 

regulations, that E.O. sec. 3(b) has been 

fully reviewed and its requirement 

satisfied. 

Accordingly, the Department has 

reviewed this WIOA-required NPRM 

and has determined that the proposed 

rulemaking has no Federalism 

implications. The proposed rule, as 

noted above, has no substantial direct 

effects on States, on the relationships 

between the States, or on the 

distribution of power and 

responsibilities among the various 

levels of Government as described by 

E.O. 13132. Therefore, the Department 

has determined that this proposed rule 

does not have a sufficient Federalism 

implication to warrant the preparation 

of a summary impact statement. 

D. Unfunded Mandates Reform Act of 

1995 

This Act directs agencies to assess the 

effects of Federal regulatory actions on 

State, local, and tribal governments, and 

the private sector. A Federal mandate is 

any provision in a regulation that 

imposes an enforceable duty upon State, 

local, or tribal governments, or imposes 

a duty on the private sector that is not 

voluntary. 

The WIOA contains specific language 

supporting employment and training 

activities for Indian, Alaska Natives, and 

Native Hawaiian individuals. These 

program requirements are supported, as 

is the WIOA workforce development 

system generally, by Federal formula 

grant funds and accordingly are not 

considered unfunded mandates. 

Similarly, migrant and seasonal 

farmworker activities are authorized and 

funded under the WIOA program as is 

currently done under the WIA program. 

The States are mandated to perform 

certain activities for the Federal 

Government under the WIOA program 

and will be reimbursed (grant funding) 

for the resources required to perform 

those responsibilities. The same process 

and grant relationship exists between 

States and Local WDBs under the WIA 

program and shall continue under the 

WIOA program and as identified in this 

NPRM. 

WIOA contains language establishing 

procedures regarding the eligibility of 

training providers to receive funds 

under the WIOA program. It also 

contains clear State information 

collection requirements for training 

entities, for example, submission of 

appropriate, accurate, and timely 

information. A decision by a private 

training entity to participate as a 

provider under the WIOA program is 

purely voluntary and therefore 

information collection burdens do not 

impose a duty on the private sector that 

is not voluntarily assumed. 

The Department’s following 

consideration of these factors has 

determined that this proposed rule 

contains no unfunded Federal 

mandates, which are defined in 2 U.S.C. 

658(6) to include either a ‘‘Federal 

intergovernmental mandate’’ or a 

‘‘Federal private sector mandate.’’ 

E. Plain Language 

The Department drafted this WIOA 

NPRM in plain language. 

F. Assessment of Federal Regulations 

and Policies on Families 

Section 654 of the Treasury and 

General Government Appropriations 

Act, enacted as part of the Omnibus 

Consolidated and Emergency 

Supplemental Appropriations Act of 

1999 (Pub. L. 105–277, 112 Stat. 2681) 

requires the assessment of the impact of 

this proposed rule on family well-being. 

A rule that is determined to have a 

negative effect on families must be 

supported with an adequate rationale. 

The Department has assessed this 

proposed rule in light of this 

requirement and determined that the 

WIOA NPRM would not have a negative 

effect on families. 

G. Regulatory Flexibility Act 

The Regulatory Flexibility Act (RFA), 

5 U.S.C. 603, requires agencies to 

prepare a regulatory flexibility analysis 

to determine whether a regulation will 

have a significant economic impact on 

a substantial number of small entities. 

Section 605 of the RFA allows an 

agency to certify a rule in lieu of 

preparing an analysis if the regulation is 

not expected to have a significant 

economic impact on a substantial 

number of small entities. Further, under 

the Small Business Regulatory 

Enforcement Fairness Act of 1996, 5 

U.S.C 801 (SBREFA), an agency is 

required to produce compliance 

guidance for small entities if the rule 

has a significant economic impact. 

The Small Business Administration 

(SBA) defines a small business as one 

that is ‘‘independently owned and 

operated and which is not dominant in 

its field of operation.’’ The definition of 

small business varies from industry to 


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industry to the extent necessary to 

reflect industry size differences 

properly. An agency must either use the 

SBA definition for a small entity or 

establish an alternative definition, in 

this instance, for the workforce 

industry. The Department has adopted 

the SBA definition for the purposes of 

this certification. 

The Department has notified the Chief 

Counsel for Advocacy, SBA, under the 

RFA at 5 U.S.C. 605(b), and proposes to 

certify that this rule will not have a 

significant economic impact on a 

substantial number of small entities. 

This finding is supported, in large 

measure, by the fact that small entities 

are already receiving financial 

assistance under the WIA program and 

will likely continue to do so under the 

WIOA program as articulated in this 

NPRM. 

Affected Small Entities 

The proposed rule can be expected to 

impact small one-stop center operators. 

One-stop operators can be a single entity 

(public, private, or nonprofit) or a 

consortium of entities. The types of 

entities that might be a one-stop 

operator include: (1) An institution of 

higher education; (2) an employment 

service State agency established under 

the Wagner-Peyser Act; (3) a 

community-based organization, 

nonprofit organization, or workforce 

intermediary; (4) a private for-profit 

entity; (5) a government agency; (6) a 

Local Board, with the approval of the 

local CEO and the Governor; or (7) 

another interested organization or entity 

that can carry out the duties of the onestop operator. Examples include a local 

chamber of commerce or other business 

organization, or a labor organization. 

Impact on Small Entities 

The Department indicates that 

transfer payments are a significant 

aspect of this analysis in that the 

majority of WIOA program cost burdens 

on State and Local WDBs will be fully 

financed through Federal transfer 

payments to States. We have highlighted 

costs that are new to WIOA 

implementation and this NPRM. 

Therefore, the Department expects that 

the WIOA NPRM will have no cost 

impact on small entities. 

H. Small Business Regulatory 

Enforcement Fairness Act of 1996 

The Department has determined that 

this proposed rulemaking does not 

impose a significant impact on a 

substantial number of small entities 

under the RFA; therefore, the 

Department is not required to produce 

any Compliance Guides for Small 

Entities as mandated by the SBREFA. 

I. Executive Order 13175 (Indian Tribal 

Governments) 

The Department reviewed this 

proposed rule under the terms of E.O. 

13175 and has determined it to have no 

tribal implications in addition to those 

created through the reimbursement of 

WIA and future WIOA program 

expenses via Federally disbursed 

formula grant funds. The proposed rule 

would have substantial direct effects on 

one or more Indian Tribes, on the 

relationship between the Federal 

Government and Indian Tribes, or on 

the distribution of power and 

responsibilities between the Federal 

Government and Indian Tribes. As a 

result, a tribal summary impact 

statement has been prepared. 

Prior to developing this proposed 

rule, the Department held three events 

to talk with the tribal institutions about 

their concerns about the current state of 

Indian and Native American Programs 

(INAP) as well as what concerns they 

see in the future. These three events 

consisted of a consultation webinar and 

two in-person town hall meetings. The 

consultation webinar, entitled 

‘‘Listening session on Indian and Native 

American Programs,’’ occurred on 

September 15, 2014. Two other 

consultations were held, including an 

October 21, 2014, town hall meeting 

with Indian and Native American 

leaders and membership organizations 

serving Indians and Native Americans, 

Hawaiians, and Alaskan Natives, and a 

formal consultation December 17, 2014, 

with members of the Native American 

Employment and Training Advisory 

Council to the Secretary of Labor. 

The Department received feedback 

from the Indian and Native American 

(INA) community and the general public 

that established several areas of interest 

concerning the Department of Labor’s 

relationship with Indian and Native 

American Tribes and Tribal 

Governments. These areas of interest are 

summarized below. 

Services Received in American Job 

Centers 

Specifically, the INA community 

expressed interest in learning how 

American Job Centers will account for 

the use of their INA funding dollars and 

how to ensure that the funds intended 

for the INA population will be 

dedicated to that population. In 

addition, there were also several 

individuals that had concerns that INA 

individuals that enter an American Job 

Center may not get the general 

assistance that is intended for all people 

that seek assistance. In other words, 

several commenters wanted to ensure 

that INA individuals should receive 

assistance intended for other 

populations that they may qualify for 

when seeking service. Finally, several 

commenters were interested in learning 

more about how INA programs may be 

required to contribute to American Job 

Center infrastructure funding and how 

American Job Centers will account for 

INA members served to ensure that the 

American Job Center network is 

responding to the relevant INA 

population needs. 

Funding Per Participant Was Low for 

INA Programs Especially When 

Compared to Other Job Training 

Programs 

Many of the commenters expressed 

concern that the funds made available 

on a per participant basis for INA 

programs were not sufficient to meet the 

needs of the populations being served. 

Specifically, many commenters stated 

that funds available for INA youth are 

inadequate to fully meet their needs. In 

addition, commenters felt that more 

funds were needed for INA job training 

programs to ensure that career pathway 

training could be carried out. Several 

commenters compared the cost per 

participant funding for other programs, 

such as Job Corps, as evidence of the 

lack of funding for INA programs. The 

commenters went on to request a 

comparison of other WIA-funded 

programs and the INA programs. 

Finally, one commenter felt that because 

of the lack of funds, INA youth were 

being served instead of INA adults. 

The majority of comments focused on 

the use of new funding streams and the 

requirements attached to those funds. 

Commenters expressed concern about 

the issue of using and transferring 

WIOA funding to support activities 

under Indian Employment, Training, 

and Related Services Demonstration Act 

of 1992, as amended (Pub. L. 102–477). 

Specifically, commenters talked about 

the importance of flexibility in 

adherence to the requirements because 

Public Law 102–477 programs are tribal 

programs, may be located in rural areas, 

and have been effectively and efficiently 

reporting through existing processes, 

including a single reporting feature in 

the annual report. Additionally, 

commenters suggested that vocational 

rehabilitation, adult education reentry, 

and other applicable job/educationrelated program funding also should be 

allowed to support Public Law 102–477 

programs. Clarity around which funding 

streams are allowable also was 

suggested. Commenters also expressed 

hope that the Department of Education 


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will integrate Carl D. Perkins funding 

under Public Law 102–477 which 

allows Federally-recognized Tribes and 

Alaska Native entities to combine 

formula-funded Federal grant funds 

administered by the Department of 

Interior, which are employment and 

training-related into a single plan with 

a single budget and a single reporting 

system. Commenters noted that the 

Native American Career and Technical 

Education Program (NACTEP) is a 

required partner, and that NACTEP has 

limited the partner funds available to 

fund supportive services and work 

experiences. One commenter asked if 

statutory language regarding key 

investments in vulnerable populations 

would result in an increase in funding 

for Division of Indian and Native 

American Programs (DINAP) programs. 

Lastly, it was suggested that the 166 

Advisory Council continue, and DINAP 

programs continue to be staffed with 

Native Americans and Native American 

Chiefs. 

Concerns About the Effects of the New 

Performance Reporting Requirements 

Established in WIOA on the INA 

Community 

Many commenters expressed concern 

that INA programs would not be able to 

meet the performance reporting 

requirements established by WIOA for 

several reasons, including limited funds 

to train individuals for the new 

performance standards and the need to 

purchase new technology and 

equipment to meet the reporting 

requirements. In addition, several 

commenters said that INA programs will 

have to be more selective in determining 

eligibility for training programs because 

of insufficient of funding and the 

increased focus on performance 

outcomes. 

Lack of Funding To Hire and Effectively 

Train Staff and Ensuring Policy Is 

Responsive to INA Community Needs 

Commenters stated concerns that INA 

programs will not be able to achieve 

expected performance levels because 

they lacked funding to adequately staff 

programs. Several commenters stated 

concerns about the limited number of 

staff, increased training needs for staff, 

and the need to ensure that technical 

assistance is made available to staff. 

Specifically, commenters are concerned 

that INA programs may transition 

slower than States to the new WIOA 

requirements because of funding and 

staff needs. In addition, they stated that 

INA programs need more funds to 

implement new administrative tasks as 

well as provide services to the INA 

community. 

Working With States and Other 

Programs 

Commenters expressed concerns 

about States’ accountability to the INA 

community and how to make other 

training programs administered by the 

State work comprehensively with INA 

programs. Others encouraged flexibility 

and freedom in funding in working with 

these same entities and lauded this 

flexibility as a way to get more out of 

funds. Furthermore, the commenters 

emphasized how important it is for 

Indian and Native American Leaders to 

have a voice in the policy and guidance 

formulation process so that policy is 

directly responsive to the needs and 

funding has to go hand in hand with the 

needs identified. Some commenters 

suggested an on-going dialogue between 

Indian and Native American leaders, 

Workforce Investment Boards, local and 

State agencies, and the American Job 

Centers to discuss training and 

education that leads to jobs. Some 

commenters stated that State-run 

programs need to be more accountable 

for how they interact with INA 

populations. Other commenters 

expressed frustration that some State 

programs do not see a need to work with 

INA programs because the States think 

that the INA programs get money from 

other sources, such as casinos. Many of 

the commenters said that they wanted 

better collaboration with State-run 

programs and increased networking 

among INA programs and State 

agencies. Finally, one commenter stated 

that collaboration between INA 

programs and the State-run training 

systems would make services to 

individuals more efficient because it 

would prevent ‘‘double-dipping’’ in 

programs. 

The Department invites public 

comment about what can be done to 

address the areas summarized above. 

J. Executive Order 12630 (Government 

Actions and Interference With 

Constitutionally Protected Property 

Rights 

The Department has determined that 

this WIOA NPRM is not subject to E.O. 

12630, Governmental Actions and 

Interference with Constitutionally 

Protected Property Rights, because it 

does not involve implementation of a 

policy with takings implications. 

K. Executive Order 12988 (Civil Justice 

Reform) 

This NPRM was drafted and reviewed 

in accordance with E.O. 12988, Civil 

Justice Reform, and the Department has 

determined that the proposed rule will 

not burden the Federal court system. 

The proposed WIOA regulation was 

written to minimize litigation and to the 

extent feasible, provides a clear legal 

standard for affected conduct, and has 

been reviewed carefully to eliminate 

drafting errors and ambiguities. 

L. Executive Order 13211 (Energy 

Supply) 

This NPRM was drafted and reviewed 

in accordance with E.O. 13211, Energy 

Supply. The Department has 

determined the NPRM will not have a 

significant adverse effect on the supply, 

distribution, or use of energy and is not 

subject to E.O. 13211. 

List of Subjects 

20 CFR Part 603 

Grant programs-labor, Privacy, 

Reporting and recordkeeping 

requirements, Unemployment 

compensation, Wages. 

20 CFR Part 651 

Employment, Grant programs-labor. 

20 CFR Part 652 

Employment, Grant programs-labor, 

Reporting and recordkeeping 

requirements. 

20 CFR Part 653 

Agriculture, Employment, Equal 

employment opportunity, Grant 

programs-labor, Migrant labor, 

Reporting and recordkeeping 

requirements. 

20 CFR Part 654 

Employment, Government 

procurement, Housing standards, 

Manpower, Migrant labor, Reporting 

and recordkeeping requirements. 

20 CFR Part 658 

Administrative practice and 

procedure, Employment, Grant 

programs-labor, Reporting and 

recordkeeping requirements. 

20 CFR Part 675 

Employment, Grant programs-labor. 

20 CFR Parts 679–680 

Employment, Grant programs-labor. 

20 CFR Part 681 

Employment, Grant programs-labor, 

Youth. 

20 CFR Part 682 

Employment, Grant programs-labor. 

20 CFR Part 683 

Employment, Grant programs-labor, 

Reporting and recordkeeping 

requirements. 


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20 CFR Part 684 

Employment, Grant programs-labor, 

Indians, Reporting and recordkeeping 

requirements. 

20 CFR Part 685 

Employment, Grant programs-labor, 

Migrant labor, Reporting and 

recordkeeping requirements. 

20 CFR Part 686 

Employment, Grant programs-labor, 

Job Corps. 

20 CFR Part 687 

Employment, Grant programs-labor. 

20 CFR Part 688 

Employment, Grant programs-labor, 

Youth, YouthBuild. 

For the reasons stated in the 

preamble, ETA proposes to amend title 

20 CFR, chapter V, as follows: 

PART 603—FEDERAL-STATE 

UNEMPLOYMENT COMPENSATION 

(UC) PROGRAM; CONFIDENTIALITY 

AND DISCLOSURE OF STATE UC 

INFORMATION 

■ 1. Revise the authority citation for part 

603 to read as follows: 

Authority: Secs. 116, 189, 503, Pub. L. 

113–128, 128 Stat. 1425 (Jul. 22, 2014); 20 

U.S.C 1232g. 

■ 2. Amend § 603.2 by revising 

paragraph (d) to read as follows: 

§ 603.2 What definitions apply to this part? 

* * * * * 

(d) Public official means: 

(1) An official, agency, or public 

entity within the executive branch of 

Federal, State, or local government who 

(or which) has responsibility for 

administering or enforcing a law, or an 

elected official in the Federal, State, or 

local government. 

(2) Public post-secondary educational 

institutions established and governed 

under the laws of the State. These 

include the following: 

(i) Institutions that are part of the 

State’s executive branch. This means the 

head of the institution must derive his 

or her authority from the Governor, 

either directly or through a State Board, 

commission, or similar entity 

established in the executive branch 

under the laws of the State. 

(ii) Institutions which are 

independent of the executive branch. 

This means the head of the institution 

derives his or her authority from the 

State’s chief executive officer for the 

State education authority or agency 

when such officer is elected or 

appointed independently of the 

Governor. 

(iii) Publicly governed, publicly 

funded community and technical 

colleges. 

(3) Performance accountability and 

customer information agencies 

designated by the Governor of a State to 

be responsible for coordinating the 

assessment of State and local education 

or workforce training program 

performance and/or evaluating 

education or workforce training 

provider performance. 

(4) The chief elected official of a local 

Workforce Development Area as defined 

in WIOA sec. 3(9). 

(5) A State educational authority, 

agency or institution as those terms are 

used in the Family Educational Rights 

and Privacy Act, to the extent they are 

public entities. 

* * * * * 

■ 3. Amend § 603.5 by revising 

paragraph (e) to read as follows: 

§ 603.5 What are the exceptions to the 

confidentiality requirement? 

* * * * * 

(e) Public official. Disclosure of 

confidential UC information to a public 

official for use in the performance of his 

or her official duties is permissible. 

(1) ‘‘Performance of official duties’’ 

means administration or enforcement of 

law or the execution of the official 

responsibilities of a Federal, State, or 

local elected official. Administration of 

law includes research related to the law 

administered by the public official. 

Execution of official responsibilities 

does not include solicitation of 

contributions or expenditures to or on 

behalf of a candidate for public or 

political office or a political party. 

(2) For purposes of § 603.2(d)(2) 

through (5), ‘‘performance of official 

duties’’ includes, in addition to the 

activities set out in paragraph (e)(1) of 

this section, use of the confidential UC 

information for the following limited 

purposes: 

(i) State and local performance 

accountability under WIOA sec. 116, 

including eligible training provider 

performance accountability under 

WIOA secs. 116(d) and 122; 

(ii) The requirements of discretionary 

Federal grants awarded under WIOA; or 

(iii) As otherwise required for 

education or workforce training program 

performance accountability and 

reporting under Federal or State law. 

* * * * * 

■ 4. Amend § 603.6 by adding paragraph 

(b)(8) to read as follows: 

§ 603.6 What disclosures are required by 

this subpart? 

* * * * * 

(b) * * * 

(8) To comply with WIOA sec. 

116(e)(4), States must, to the extent 

practicable, cooperate in the conduct of 

evaluations (including related research 

projects) provided for by the Secretary 

of Labor or the Secretary of Education 

under the provisions of Federal law 

identified in WIOA sec. 116(e)(1); WIOA 

secs. 169 and 242(c)(2)(D); sec. 12(a)(5), 

14, and 107 of the Rehabilitation Act of 

1973 (29 U.S.C. 709(a)(5), 711, 727) 

(applied with respect to programs 

carried out under title I of that Act (29 

U.S.C. 720 et seq.)); and the 

investigations provided for by the 

Secretary of Labor under sec. 10(b) of 

the Wagner-Peyser Act (29 U.S.C. 

49i(b)). For purposes of this part, States 

must disclose confidential UC 

information to a Federal official (or an 

agent or contractor of a Federal official) 

requesting such information in the 

course of such evaluations. This 

disclosure must be done in accordance 

with appropriate privacy and 

confidentiality protections established 

in this part. This disclosure must be 

made to the ‘‘extent practicable’’, which 

means that the disclosure would not 

interfere with the efficient 

administration of the State UC law, as 

required by § 603.5. 

* * * * * 

■ 5. Add part 675 to read as follows: 

PART 675—INTRODUCTION TO THE 

REGULATIONS FOR THE 

WORKFORCE INNOVATION AND 

OPPORTUNITY SYSTEMS UNDER 

TITLE I OF THE WORKFORCE 

INNOVATION AND OPPORTUNITY ACT 

Sec. 

675.100 What are the purposes of title I of 

the Workforce Innovation and 

Opportunity Act? 

675.200 What do the regulations for 

workforce investment systems under title 

I of the Workforce Innovation and 

Opportunity Act cover? 

675.300 What definitions apply to these 

regulations? 

Authority: Secs. 2, 3, 189, 503, Pub. L. 

113–128, 128 Stat. 1425 (Jul. 22, 2014). 

§ 675.100 What are the purposes of title I 

of the Workforce Innovation and 

Opportunity Act? 

The purposes of title I of the 

Workforce Innovation and Opportunity 

Act (WIOA) include: 

(a) Increasing access to, and 

opportunities for individuals to receive, 

the employment, education, training, 

and support services necessary to 

succeed in the labor market, with a 

particular focus on those individuals 

with disabilities or other barriers to 

employment including out of school 


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youth with the goal of improving their 

outcomes; 

(b) Enhancing the strategic role for 

States and elected officials, and Local 

Workforce Development Boards in the 

workforce system by increasing 

flexibility to tailor services to meet 

employer and worker needs at State, 

regional, and local levels; 

(c) Streamlining service delivery 

across multiple programs by requiring 

colocation, coordination, and 

integration of activities and information 

to make the system understandable and 

accessible for individuals, including 

people with disabilities and those with 

other barriers to employment, and 

businesses. 

(d) Supporting the alignment of the 

workforce investment, education, and 

economic development systems in 

support of a comprehensive, accessible, 

and high-quality workforce 

development system at the Federal, 

State, and local and regional levels; 

(e) Improving the quality and labor 

market relevance of workforce 

investment, education, and economic 

development efforts by promoting the 

use of industry and sector partnerships, 

career pathways, and regional service 

delivery strategies in order to both 

provide America’s workers with the 

skills and credentials that will enable 

them to secure and advance in 

employment with family-sustaining 

wages, and to provide America’s 

employers with the skilled workers the 

employers need to succeed in a global 

economy; 

(f) Promoting accountability using 

core indicators of performance 

measured across all WIOA authorized 

programs, sanctions, and high quality 

evaluations to improve the structure and 

delivery of services through the 

workforce development system to 

address and improve the employment 

and skill needs of workers, jobseekers, 

and employers; 

(g) Increasing the prosperity and 

economic growth of workers, employers, 

communities, regions, and States; and 

(h) Providing workforce development 

activities through statewide and local 

workforce development systems to 

increase employment, retention and 

earnings of participants and to increase 

industry-recognized post-secondary 

credential attainment to improve the 

quality of the workforce, reduce welfare 

dependency, increase economic selfsufficiency, meet skill requirements of 

employers, and enhance productivity 

and competitiveness of the nation. 

§ 675.200 What do the regulations for 

workforce investment systems under title I 

of the Workforce Innovation and 

Opportunity Act cover? 

The regulations found in 20 CFR parts 

675 through 687 set forth the regulatory 

requirements that are applicable to 

programs operated with funds provided 

under title I of WIOA. This part 675 

describes the purpose of that Act, 

explains the format of these regulations 

and sets forth definitions for terms that 

apply to each part. Part 676 contains 

regulations relating to statewide and 

local governance of the workforce 

investment system. Part 677 describes 

the one-stop system and the roles of 

one-stop partners. Part 678 sets forth 

requirements applicable to WIOA title I 

programs serving adults and dislocated 

workers. Part 679 sets forth 

requirements applicable to WIOA title I 

programs serving youth. Part 680 

contains regulations relating to 

statewide activities. Part 681 describes 

the WIOA performance accountability 

system. Part 682 sets forth the 

administrative requirements applicable 

to programs funded under WIOA title I. 

Parts 684 and 685 contain the particular 

requirements applicable to programs 

serving Indians and Native Americans 

and Migrant and Seasonal Farmworkers, 

respectively. Parts 686 and 687 describe 

the particular requirements applicable 

to the Job Corps and the national 

dislocated worker grant programs, 

respectively. Part 687 contains the 

regulations governing the YouthBuild 

program. In addition, part 652 describes 

the establishment and functioning of 

State Employment Services under the 

Wagner-Peyser Act, and 29 CFR part 37 

contains the Department’s 

nondiscrimination regulations 

implementing WIA sec. 188. 

§ 675.300 What definitions apply to these 

regulations? 

In addition to the definitions set forth 

in WIOA and the WIOA Regulations the 

following definitions apply to the 

regulations in 20 CFR parts 675 through 

687: 

Consultation means an interactive 

discussion between two or more parties 

for the purpose of exchanging 

viewpoints and ideas. 

Contract means a legal instrument by 

which a non-Federal entity purchases 

property or services needed to carry out 

the project or program under a Federal 

award. The term as used in this part 

does not include a legal instrument, 

even if the non-Federal entity considers 

it a contract, when the substance of the 

transaction meets the definition of a 

Federal award or subaward as defined 

in this section. 

Contractor means an entity that 

receives a contract as defined in this 

section. 

Cooperative Agreement means a legal 

instrument of financial assistance 

between a Federal awarding agency or 

pass-through entity and a non-Federal 

entity that, consistent with 31 U.S.C. 

6302–6305: 

(1) Is used to enter into a relationship 

the principal purpose of which is to 

transfer anything of value from the 

Federal awarding agency or passthrough entity to the non-Federal entity 

to carry out a public purpose authorized 

by a law of the United States (see 31 

U.S.C. 6101(3)); and not to acquire 

property or services for the Federal 

government or pass-through entity’s 

direct benefit or use; 

(2) Is distinguished from a grant in 

that it provides for substantial 

involvement between the Federal 

awarding agency or pass-through entity 

and the non-Federal entity in carrying 

out the activity contemplated by the 

Federal award. 

(3) The term does not include: 

(i) A cooperative research and 

development agreement as defined in 15 

U.S.C. 3710a; or 

(ii) An agreement that provides only: 

(A) Direct United States Government 

cash assistance to an individual; 

(B) A subsidy; 

(C) A loan; 

(D) A loan guarantee; or 

(E) Insurance. 

Department or DOL means the U.S. 

Department of Labor, including its 

agencies and organizational units. 

Employment and training activity 

means a workforce investment activity 

that is carried out for an adult or 

dislocated worker under 20 CFR part 

678. 

Equal opportunity data or EO data 

means data on race and ethnicity, age, 

sex, and disability required by 29 CFR 

part 37 of the DOL regulations 

implementing sec. 188 of WIA, 

governing nondiscrimination. 

Employment and Training 

Administration or ETA means the 

Employment and Training 

Administration of the U.S. Department 

of Labor, or its successor organization. 

Federal Award means: 

(1) The Federal financial assistance 

that a non-Federal entity receives 

directly from a Federal awarding agency 

or indirectly from a pass-through entity, 

as described in 2 CFR 200.101 

Applicability; 

(2) The cost-reimbursement contract 

under the Federal Acquisition 

Regulations that a non-Federal entity 

receives directly from a Federal 

awarding agency or indirectly from a 


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pass-through entity, as described in 2 

CFR 200.101 Applicability; and 

(3) The instrument setting forth the 

terms and conditions. The instrument is 

the grant agreement, cooperative 

agreement, other agreement for 

assistance covered in paragraph (b) of 2 

CFR 200.40 Federal financial assistance, 

or the cost-reimbursement contract 

awarded under the Federal Acquisition 

Regulations. 

(4) Federal award does not include 

other contracts that a Federal agency 

uses to buy goods or services from a 

contractor or a contract to operate 

Federal government owned, contractor 

operated facilities (GOCOs). 

Federal Financial Assistance means: 

(1) For grants and cooperative 

agreements, assistance in the form of: 

(i) Grants; 

(ii) Cooperative agreements; 

(iii) Non-cash contributions or 

donations of property (including 

donated surplus property); 

(iv) Direct appropriations; 

(v) Food commodities; and 

(vi) Other financial assistance, except 

assistance listed in paragraph (2) of this 

definition. 

(2) For purposes of the audit 

requirements at 2 CFR part 200, subpart 

F, Federal financial assistance includes 

assistance that non-Federal entities 

receive or administer in the form of: 

(i) Loans; 

(ii) Loan Guarantees; 

(iii) Interest subsidies; and 

(iv) Insurance. 

(3) Federal financial assistance does 

not include amounts received as 

reimbursement for services rendered to 

individuals as described in 2 CFR 

200.502, which outlines the basis for 

determining Federal awards expended. 

Grant or Grant Agreement means a 

legal instrument of financial assistance 

between a Federal awarding agency and 

a non-Federal entity that, consistent 

with 31 U.S.C. 6302, 6304: 

(1) Is used to enter into a relationship 

the principal purpose of which is to 

transfer anything of value from the 

Federal awarding agency to carry out a 

public purpose authorized by a law of 

the United States (see 31 U.S.C. 

6101(3)); and not to acquire property or 

services for the Federal awarding 

agency’s direct benefit or use; 

(2) Is distinguished from a cooperative 

agreement in that it does not provide for 

substantial involvement between the 

Federal awarding agency or passthrough entity and the non-Federal 

entity in carrying out the activity 

contemplated by the Federal award. 

(3) Grant agreement does not include 

an agreement that provides only: 

(i) Direct United States Government 

cash assistance to an individual; 

(ii) A subsidy; 

(iii) A loan; 

(iv) A loan guarantee; or 

(v) Insurance. 

Grantee means the direct recipient of 

grant funds from the Department of 

Labor under a grant or grant agreement. 

A grantee may also be referred to as a 

recipient. 

Individual with a disability means an 

individual with any disability (as 

defined in sec. 3 of the Americans with 

Disabilities Act of 1990 (42 U.S.C. 

12102)). For purposes of WIOA sec. 188, 

this term is defined at 29 CFR 37.4. 

Labor Federation means an alliance of 

two or more organized labor unions for 

the purpose of mutual support and 

action. 

Literacy means an individual’s ability 

to read, write, and speak in English, and 

to compute, and solve problems, at 

levels of proficiency necessary to 

function on the job, in the family of the 

individual, and in society. 

Local Board means a Local Workforce 

Development Board established under 

WIOA sec. 107, to set policy for the 

local workforce investment system. 

Non-Federal entity, as defined in 2 

CFR part 2900.2, means a State, local 

government, Indian tribe, institution of 

higher education (IHE), for-profit entity, 

foreign public entity, foreign 

organization or nonprofit organization 

that carries out a Federal award as a 

recipient or subrecipient. 

Obligations when used in connection 

with a non-Federal entity’s utilization of 

funds under a Federal award, 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. 

Outlying area means: 

(1) The United States Virgin Islands, 

Guam, American Samoa, the 

Commonwealth of the Northern Mariana 

Islands; and 

(2) The Republic of Palau, except 

during a period that the Secretaries 

determine both that a Compact of Free 

Association is in effect and that the 

Compact contains provisions for 

training and education assistance 

prohibiting the assistance provided 

under the Workforce Innovation and 

Opportunity Act. 

Pass-through entity means a nonFederal entity that provides a subaward 

to a subrecipient to carry out part of a 

Federal program. 

Recipient means a non-Federal entity 

that receives a Federal award directly 

from a Federal awarding agency to carry 

out an activity under a Federal program. 

The term recipient does not include 

subrecipients. 

Register means the process for 

collecting information, including 

identifying information, to determine an 

individual’s eligibility for services 

under WIOA title I. Individuals may be 

registered in a variety ways, as 

described in 20 CFR parts 678.105. 

Secretary means the Secretary of the 

U.S. Department of Labor, or their 

designee. 

Secretaries means the Secretaries of 

the U.S. Department Labor and the U.S. 

Department of Education, or their 

designees. 

Self-certification means an 

individual’s signed attestation that the 

information they submit to demonstrate 

eligibility for a program under title I of 

WIOA is true and accurate. 

State means each of the several States 

of the United States, the District of 

Columbia and the Commonwealth of 

Puerto Rico. The term ‘‘State’’ does not 

include outlying areas. 

State Board means a State Workforce 

Development Board established under 

WIOA sec. 101. 

Subgrant or subaward means an 

award provided by a pass-through entity 

to a subrecipient for the subrecipient to 

carry out part of a Federal award 

received by the pass-through entity. It 

does not include payments to a 

contractor or payments to an individual 

that is a beneficiary of a Federal 

program. A subaward may be provided 

through any form of legal agreement, 

including an agreement that the passthrough entity considers a contract. 

Subrecipient means a non-Federal 

entity that receives a subaward from a 

pass-through entity to carry out part of 

a Federal program, but does not include 

an individual that is a beneficiary of 

such program. A subrecipient may also 

be a recipient of other Federal awards 

directly from a Federal awarding 

agency. 

Unliquidated obligations means, for 

financial reports prepared on a cash 

basis, obligations incurred by the nonFederal entity that have not been paid 

(liquidated). For reports prepared on an 

accrual expenditure basis, these are 

obligations incurred by the non-Federal 

entity for which an expenditure has not 

been recorded. 

Unobligated balance means the 

amount of funds under a Federal award 

that the non-Federal entity has not 

obligated. The amount is computed by 

subtracting the cumulative amount of 

the non-Federal entity’s unliquidated 

obligations and expenditures of funds 

under the Federal award from the 

cumulative amount of the funds that the 

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through entity authorized the nonFederal entity to obligate. 

Wagner-Peyser Act means the Act of 

June 6, 1933, as amended, codified at 29 

U.S.C. 49 et seq. 

WIA Regulations mean the regulations 

in 20 CFR parts 660 through 672, the 

Wagner-Peyser Act regulations in 20 

CFR part 652, subpart C, and the 

regulations implementing WIA sec. 188 

in 29 CFR part 37. 

WIOA regulations mean the 

regulations in 20 CFR parts 675 through 

687, the Wagner-Peyser Act regulations 

in 20 CFR part 652, subpart C, and the 

regulations implementing WIA sec. 188 

in 29 CFR part 37. 

Workforce investment activities mean 

the array of activities permitted under 

title I of WIOA, which include 

employment and training activities for 

adults and dislocated workers, as 

described in WIOA sec. 134, and youth 

activities, as described in WIOA sec. 

129. 

Youth Workforce Investment Activity 

means a workforce investment activity 

that is carried out for eligible youth 

under 20 CFR part 679. 

■ 6. Add part 679 to read as follows: 

PART 679—STATEWIDE AND LOCAL 

GOVERNANCE OF THE WORKFORCE 

INVESTMENT SYSTEM UNDER TITLE I 

OF THE WORKFORCE INNOVATION 

AND OPPORTUNITY ACT 

Subpart A—State Workforce Development 

Board 

Sec. 

679.100 What is the vision and purpose of 

the State Board? 

679.110 What is the State Workforce 

Development Board? 

679.120 What is meant by the terms 

‘‘optimum policy-making authority’’ and 

‘‘demonstrated experience and 

expertise’’? 

679.130 What are the functions of the State 

Board? 

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? 

679.150 Under what circumstances may the 

Governor select an alternative entity in 

place of the State Workforce 

Development Board? 

679.160 Under what circumstances may the 

State Board hire staff? 

Subpart B—Workforce Innovation and 

Opportunity Act Local Governance 

(Workforce Development Areas) 

679.200 What is the purpose of requiring 

States to identify regions? 

679.210 What are the requirements for 

identifying a region? 

679.220 What is the purpose of the local 

workforce development area? 

679.230 What are the general procedural 

requirements for designation of local 

workforce development areas? 

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? 

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? 

679.260 What do the terms ‘‘performed 

successfully’’ and ‘‘sustained fiscal 

integrity’’ mean for purposes of 

designating local areas? 

679.270 What are the special designation 

provisions for single-area States? 

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? 

679.290 What right does an entity have to 

appeal the Governor’s decision rejecting 

a request for designation as a workforce 

development area? 

Subpart C—Local Boards 

679.300 What is the vision and purpose of 

the Local Workforce Development 

Board? 

679.310 What is the Local Workforce 

Development Board? 

679.320 Who are the required members of 

the Local Workforce Development 

Board? 

679.330 Who must chair a Local Board? 

679.340 What is meant by the terms 

‘‘optimum policy-making authority’’ and 

‘‘demonstrated experience and 

expertise’’? 

679.350 What criteria will be used to 

establish the membership of the Local 

Board? 

679.360 What is a standing committee, and 

what is its relationship to the Local 

Board? 

679.370 What are the functions of the Local 

Board? 

679.380 How does the Local Board satisfy 

the consumer choice requirements for 

career services and training services? 

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? 

679.400 Who are the staff to the Local 

Board and what is their role? 

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? 

679.420 What are the functions of the local 

fiscal agent? 

679.430 How do entities performing 

multiple functions in a local area 

demonstrate internal controls and 

prevent conflict of interest? 

Subpart D—Regional and Local Plan 

679.500 What is the purpose of the regional 

and local plan? 

679.510 What are the requirements for 

regional planning? 

679.520 What are the requirements for 

approval of a regional plan? 

679.530 When must the regional plan be 

modified? 

679.540 How are local planning 

requirements reflected in a regional 

plan? 

679.550 What are the requirements for the 

development of the local plan? 

679.560 What are the contents of the local 

plan? 

679.570 What are the requirements for 

approval of a local plan? 

679.580 When must the local plan be 

modified? 

Subpart E—Waivers/WorkFlex (Workforce 

Flexibility Plan) 

679.600 What is the purpose of the General 

Statutory and Regulatory Waiver 

Authority in the Workforce Innovation 

and Opportunity Act? 

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? 

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? 

679.630 Under what conditions may the 

Governor submit a Workforce Flexibility 

Plan? 

679.640 What limitations apply to the 

State’s Workforce Flexibility Plan 

authority under the Workforce 

Innovation and Opportunity Act? 

Authority: Secs. 101, 106, 107, 108, 189, 

503, Pub. L. 113–128, 128 Stat. 1425 (Jul. 22, 

2014). 

Subpart A—State Workforce 

Development Board 

§ 679.100 What the purpose of the State 

Board? 

The purpose of the State Board is to 

convene State, regional, and local 

workforce system and partners, to— 

(a) Enhance the capacity and 

performance of the workforce 

development system; 

(b) Align and improve the outcomes 

and effectiveness of Federally-funded 

and other workforce programs and 

investments; and 

(c) Through these efforts, promote 

economic growth. 

(d) Engage workforce system 

representatives, including businesses, 

education providers, economic 

development, labor representatives, and 

other stakeholders to help the workforce 

development system achieve the 

purpose of the Workforce Innovation 

and Security Act (WIOA); and 

(e) Assist to achieve the State’s 

strategic and operational vision and 

goals as outlined in the State Plan. 


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§ 679.110 What is the State Workforce 

Development Board? 

(a) The State Board is a board 

established by the Governor in 

accordance with the requirements of 

WIOA sec. 101 and this section. 

(b) The membership of the State 

Board must meet the requirements of 

WIOA 101(b) and must represent 

diverse geographic areas of the State, 

including urban, rural, and suburban 

areas. The Board membership and must 

include: 

(1) The Governor; 

(2) A member of each chamber of the 

State legislature, appointed by the 

appropriate presiding officers of such 

chamber, as appropriate under State 

law; and 

(3) Members appointed by the 

Governor, which must include: 

(i) A majority of representatives of 

businesses or organizations who: 

(A) Are the owner or chief executive 

officer for the business or organization, 

or is an executive with the business or 

organization with optimum policymaking or hiring authority, and may 

also be members of a Local Board as 

described in WIOA sec. 107(b)(2)(A)(i); 

(B) Represent businesses, or 

organizations that represent businesses 

described in 679.110(b)(3)(i), that, at a 

minimum, provide employment and 

training opportunities that include highquality, work-relevant training and 

development in in-demand industry 

sectors or occupations in the State; and 

(C) Are appointed from a list of 

potential members nominated by State 

business organizations and business 

trade associations; and 

(D) At a minimum, one member 

representing small businesses as defined 

by the U.S. Small Business 

Administration. 

(ii) Not less than 20 percent who are 

representatives of the workforce within 

the State, which: 

(A) Must include two or more 

representatives of labor organizations 

nominated by State labor federations; 

(B) Must include one representative 

who must be a member of a labor 

organization or training director from a 

joint labor-management apprenticeship 

program, or, if no such joint program 

exists in the State, a member of a labor 

organization or training director who is 

a representative of an apprenticeship 

program; 

(C) May include one or more 

representatives of community-based 

organizations that have demonstrated 

experience and expertise in addressing 

the employment, training, or education 

needs of individuals with barriers to 

employment, including organizations 

that serve veterans or provide or support 

competitive, integrated employment for 

individuals with disabilities; and 

(D) May include one or more 

representatives of organizations that 

have demonstrated experience and 

expertise in addressing the employment, 

training, or education needs of eligible 

youth, including representatives of 

organizations that serve out-of-school 

youth. 

(iii) The balance of the members: 

(A) Must include representatives of 

the Government including: 

(1) The lead State officials with 

primary responsibility for each of the 

core programs. Where the lead official 

represents more than one core program, 

that official must ensure adequate 

representation of the needs of all core 

programs under his or her jurisdiction. 

(2) Two or more chief elected officials 

(collectively representing both cities 

and counties, where appropriate). 

(B) May include other appropriate 

representatives and officials designated 

by the Governor, such as, but not 

limited to, State agency officials 

responsible for one-stop partner 

programs, economic development or 

juvenile justice programs in the State, 

individuals who represent an Indian 

tribe or tribal organization as defined in 

WIOA sec. 166(b), and State agency 

officials responsible for education 

programs in the State, including chief 

executive officers of community 

colleges and other institutions of higher 

education. 

(c) The Governor must select a 

chairperson for the State Board from the 

business representatives on the board 

described in paragraph (b)(3)(i) of this 

section). 

(d) The Governor must establish bylaws that at a minimum address: 

(1) The nomination process used by 

the Governor to select the State Board 

chair and members; 

(2) The term limitations and how the 

term appointments will be staggered to 

ensure only a portion of membership 

expire in a given year; 

(3) The process to notify the Governor 

of a board member vacancy to ensure a 

prompt nominee; 

(4) The proxy and alternative designee 

process that will be used when a board 

member is unable to attend a meeting 

and assigns a designee as per the 

requirements at 679.110(d)(4); 

(i) If the alternative designee is a 

business representative, he or she must 

have optimum policy-making hiring 

authority. 

(ii) Other alternative designees should 

have demonstrated experience and 

expertise and optimum policy-making 

authority. 

(5) The use of technology, such as 

phone and Web-based meetings, that 

must be used to promote board member 

participation; and 

(6) The process to ensure members 

actively participate in convening the 

workforce development system’s 

stakeholders, brokering relationships 

with a diverse range of employers, and 

leveraging support for workforce 

development activities; and 

(7) Other conditions governing 

appointment or membership on the 

State Board as deemed appropriate by 

the Governor. 

(e) Members who represent 

organizations, agencies or other entities 

described in (b)(3)(ii) through (iii) above 

must be individuals who have optimum 

policy-making authority in the 

organizations that they represent. 

(f)(1) A State Board member may not 

represent more than one of the 

categories described in: 

(i) Paragraph (b)(3)(i) of this section 

(business representatives); 

(ii) Paragraph (b)(3)(ii) of this section 

(workforce representatives); or 

(iii) Paragraph (b)(3)(iii) of this section 

(government representatives). 

(2) A State Board member may not 

serve as a representative of more than 

one subcategory under paragraph 

(b)(3)(ii) of this section. 

(3) A State Board member may not 

serve as a representative of more than 

one subcategory under paragraph 

(b)(3)(iii) of this section, except that 

where a single government agency is 

responsible for multiple required 

programs, the head of the agency may 

represent each of the required programs. 

(g) All required board members must 

have voting privileges. The Governor 

may also convey voting privileges to 

non-required members. 

§ 679.120 What is meant by the terms 

‘‘optimum policy-making authority’’ and 

‘‘demonstrated experience and expertise’’? 

For purposes of § 679.110: 

(a) A representative with ‘‘optimum 

policy-making authority’’ is 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. 

(b) A representative with 

‘‘demonstrated experience and 

expertise’’ means an individual with 

documented leadership in developing or 

implementing workforce development, 

human resources, training and 

development, or a core program 

function. 


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§ 679.130 What are the functions of the 

State Board? 

Under WIOA sec. 101(d), the State 

Board must assist the Governor in the: 

(a) Development, implementation, 

and modification of the 4-year State 

Plan; 

(b) Review of statewide policies, 

programs, and recommendations on 

actions that should 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. 

(c) Development and continuous 

improvement of the workforce 

development system, including— 

(1) Identification of barriers and 

means for removing barriers to better 

coordinate, align, and avoid duplication 

among programs and activities; 

(2) Development of strategies to 

support career pathways for the purpose 

of providing individuals, including lowskilled adults, youth, and individuals 

with barriers to employment, including 

individuals with disabilities, with 

workforce investment activities, 

education, and supportive services to 

enter or retain employment; 

(3) Development of strategies to 

provide effective outreach to and 

improved access for individuals and 

employers who could benefit from 

workforce development system; 

(4) Development and expansion of 

strategies to meet the needs of 

employers, workers, and jobseekers 

particularly through industry or sector 

partnerships related to in-demand 

industry sectors and occupations; 

(5) 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 

chief elected officials; 

(6) Development and continuous 

improvement of the one-stop delivery 

system in local areas, including 

providing assistance to Local Boards, 

one-stop operators, one-stop partners, 

and providers. Such assistance includes 

assistance with planning and delivering 

services, including training and 

supportive services, to support effective 

delivery of services to workers, 

jobseekers, and employers; and 

(7) Development of strategies to 

support staff training and awareness 

across the workforce development 

system and its programs. 

(d) Development and updating of 

comprehensive State performance and 

accountability measures to assess core 

program effectiveness under WIOA sec. 

116(b). 

(e) Identification and dissemination of 

information on best practices, including 

best practices for— 

(1) The effective operation of one-stop 

centers, relating to the use of business 

outreach, partnerships, and service 

delivery strategies, including strategies 

for serving individuals with barriers to 

employment; 

(2) The development of effective Local 

Boards, which may include information 

on factors that contribute to enabling 

Local Boards to exceed negotiated local 

levels of performance, sustain fiscal 

integrity, and achieve other measures of 

effectiveness; and 

(3) Effective training programs that 

respond to real-time labor market 

analysis, that effectively use direct 

assessment and prior learning 

assessment to measure an individual’s 

prior knowledge, skills, competencies, 

and experiences for adaptability, to 

support efficient placement into 

employment or career pathways. 

(f) Development and review of 

statewide policies affecting the 

coordinated provision of services 

through the State’s one-stop delivery 

system described in WIOA sec. 121(e), 

including the development of— 

(1) Objective criteria and procedures 

for use by Local Boards in assessing the 

effectiveness, physical and 

programmatic accessibility and 

continuous improvement of one-stop 

centers. Where a Local Board serves as 

the one-stop operator, the State Board 

must use such criteria to assess and 

certify the one-stop center; 

(2) Guidance for the allocation of onestop center infrastructure funds under 

121(h); and 

(3) Policies relating to the appropriate 

roles and contributions of entities 

carrying out one-stop partner programs 

within the one-stop delivery system, 

including approaches to facilitating 

equitable and efficient cost allocation in 

the system. 

(g) Development of strategies for 

technological improvements to facilitate 

access to, and improve the quality of 

services and activities provided through 

the one-stop delivery system, including 

such improvements to— 

(1) Enhance digital literacy skills (as 

defined in sec. 202 of the Museum and 

Library Service Act, 20 U.S.C. 9101); 

(2) Accelerate acquisition of skills and 

recognized post-secondary credentials 

by participants; 

(3) Strengthen professional 

development of providers and 

workforce professionals; and 

(4) Ensure technology is accessible to 

individuals with disabilities and 

individuals residing in remote areas; 

(h) Development of strategies for 

aligning technology and data systems 

across one-stop partner programs to 

enhance service delivery and improve 

efficiencies in reporting on performance 

accountability measures, including 

design implementation of common 

intake, data collection, case 

management information, and 

performance accountability 

measurement and reporting processes 

and the incorporation of local input into 

such design and implementation to 

improve coordination of services across 

one-stop partner programs; 

(i) Development of allocation 

formulas for the distribution of funds for 

employment and training activities for 

adults and youth workforce investment 

activities, to local areas as permitted 

under WIOA secs. 128(b)(3) and 

133(b)(3); 

(j) Preparation of the annual reports 

described in paragraphs (1) and (2) of 

WIOA sec. 116(d); 

(k) Development of the statewide 

workforce and labor market information 

system described in sec. 15(e) of the 

Wagner-Peyser Act; and 

(l) Development of other policies as 

may promote statewide objectives for 

and enhance the performance of the 

workforce development system in the 

State. 

§ 679.140 How does the State Board meet 

its requirement to conduct business in an 

open manner under the ‘‘sunshine 

provision’’ of the Workforce Innovation and 

Opportunity Act? 

(a) The State Board must conduct 

business in an open manner as required 

by WIOA sec. 101(g). 

(b) The State Board must make 

available to the public, on a regular 

basis through electronic means and 

open meetings, information about the 

activities and functions of the State 

Board, including: 

(1) The State Plan, or modification to 

the State Plan, prior to submission of 

the Plan or modification of the Plan; 

(2) Information regarding 

membership; 

(3) Minutes of formal meetings of the 

State Board upon request; 

(4) State Board by-laws as described at 

§ 679.110(d). 

§ 679.150 Under what circumstances may 

the Governor select an alternative entity in 

place of the State Workforce Development 

Board? 

(a) The State may use any State entity 

that meets the requirements of WIOA 

sec. 101(e) to perform the functions of 

the State Board. This may include: 


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(1) A State council; 

(2) A State Workforce Development 

Board within the meaning of the 

Workforce Investment Act of 1998, as in 

effect on the day before the date of 

enactment of WIOA; or 

(3) A combination of regional 

Workforce Development Boards or 

similar entity. 

(b) If the State uses an alternative 

entity, the State Plan must demonstrate 

that the alternative entity meets all three 

of the requirements of WIOA sec. 

101(e)(1): 

(1) Was in existence on the day before 

the date of enactment of the Workforce 

Investment Act of 1998; 

(2) Is substantially similar to the State 

Board described in WIOA secs. 101(a)– 

(c) and § 679.110; and 

(3) Includes representatives of 

business and labor organizations in the 

State. 

(c) 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 State Board 

must maintain an ongoing and 

meaningful role for an unrepresented 

membership group, including entities 

carrying out the core programs, by such 

methods as: 

(1) Regularly scheduled consultations 

with entities within the unrepresented 

membership groups; 

(2) Providing an opportunity for input 

into the State Plan or other policy 

development by unrepresented 

membership groups, and 

(3) Establishing an advisory 

committee of unrepresented 

membership groups. 

(d) 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 

case, the Governor must establish a new 

State Board which meets all of the 

criteria of WIOA sec. 101(b). 

(e) A significant change in the 

membership structure includes a 

significant 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. 

(1) A significant change in the 

membership structure occurs when the 

alternative entity adds members to 

represent groups not previously 

represented on the entity. 

(2) A significant change in the 

membership structure does not occur 

when the alternative entity adds 

members to an existing membership 

category, when it adds non-voting 

members, or when it adds members to 

fill a vacancy created in an existing 

membership category. 

(f) In 20 CFR parts 675 through 687, 

all references to the State Board also 

apply to an alternative entity used by a 

State. 

§ 679.160 Under what circumstances may 

the State Board hire staff? 

(a) The State Board may hire a 

director and other staff to assist in 

carrying out the functions described in 

WIOA sec. 101(d) and § 679.130 using 

funds described in WIOA sec. 129(b)(3) 

or sec. 134(a)(3)(B)(i). 

(b) The State Board must establish 

and apply a set of objective 

qualifications for the position of director 

that ensures the individual selected has 

the requisite knowledge, skills, and 

abilities to meet identified benchmarks 

and to assist in effectively carrying out 

the functions of the State Board. 

(c) The director and staff must be 

subject to the limitations on the 

payment of salary and bonuses 

described in WIOA sec. 194(15). 

Subpart B—Workforce Innovation and 

Opportunity Act Local Governance 

(Workforce Development Areas) 

§ 679.200 What is the purpose of requiring 

States to identify regions? 

The purpose of identifying regions is 

to align workforce development 

activities and resources with larger 

regional economic development areas 

and available resources to provide 

coordinated and efficient services to 

both job seekers and employers. 

§ 679.210 What are the requirements for 

identifying a region? 

(a) The Governor must assign local 

areas to a region prior to submission of 

the State Unified or Combined Plan, in 

order for the State to receive WIOA title 

I–B adult, dislocated worker, and youth 

allotments. 

(b) The Governor must develop a 

policy and process for identifying 

regions. Such policy must include: 

(1) Consultation with the Local 

Boards and chief local elected officials 

in the local area(s) as required in WIOA 

sec. 102(b)(2)(D)(i)(II) and WIOA sec. 

106(a)(1); and 

(2) Consideration of the extent to 

which the local areas in a proposed 

region: 

(i) Share a single labor market; 

(ii) Share a common economic 

development area; and 

(iii) Possess the Federal and nonFederal resources, including appropriate 

education and training institutions, to 

administer activities under WIOA 

subtitle B. 

(c) In addition to the required criteria 

described in paragraph (b)(2) of this 

section, other factors the Governor may 

also consider include: 

(1) Population centers 

(2) Commuting patterns 

(3) Land ownership 

(4) Industrial composition 

(5) Location quotients 

(6) Labor force conditions 

(7) Geographic boundaries 

(8) Additional factors as determined 

by the Secretary 

(d) Regions must consist of: 

(1) One local area; 

(2) Two or more contiguous local 

areas in a single State; or 

(3) Two or more contiguous local 

areas in two or more States. 

(e) Planning regions are those regions 

described in paragraph (d)(2) or (3) of 

this section. Planning regions are 

subject to the regional planning 

requirements in § 679.510. 

§ 679.220 What is the purpose of the local 

workforce development area? 

(a) The purpose of a local area is to 

serve as a jurisdiction for the 

administration of workforce 

development activities and execution of 

adult, dislocated worker, and youth 

funds allocated by the State. Such areas 

may be aligned with a region identified 

in WIOA sec. 106(a)(1) or may be 

components of a planning region, each 

with its own Local Workforce 

Development Board. Also, significantly, 

local workforce development areas are 

the areas within which Local Workforce 

Development Boards oversee their 

functions, including strategic planning, 

operational alignment and service 

delivery design, and a jurisdiction 

where partners align resources at a subState level to design and implement 

overall service delivery strategies. 

(b) The Governor must designate local 

workforce development areas (local 

areas) in order for the State to receive 

adult, dislocated worker, and youth 

funding under title I, subtitle B of 

WIOA. 

§ 679.230 What are the general procedural 

requirements for designation of local 

workforce development areas? 

As part of the process of designating 

or redesignating a local workforce 

development area, the Governor must 

develop a policy for designation of local 

workforce development areas that must 

include: 


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(a) Consultation with the State Board; 

(b) Consultation with the chief elected 

officials and affected Local Boards; and 

(c) Consideration of comments 

received through a public comment 

process which must: 

(1) Offer adequate time for public 

comment prior to designation of the 

local workforce development area; and 

(2) Provide an opportunity for 

comment by representatives of Local 

Boards, chief elected officials, 

businesses, institutions of higher 

education, labor organizations, other 

primary stakeholders, and the general 

public regarding the designation of the 

local area. 

§ 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? 

(a) Except as provided in § 679.250, 

the Governor may designate or 

redesignate a local workforce 

development area in accordance with 

policies and procedures developed by 

the Governor, which must include at a 

minimum consideration of the extent to 

which the proposed area: 

(1) Is consistent with local labor 

market areas; 

(2) Has a common economic 

development area; and 

(3) Has the Federal and non-Federal 

resources, including appropriate 

education and training institutions, to 

administer activities under WIOA 

subtitle B. 

(b) The Governor may approve a 

request at any time for designation as a 

workforce development area from any 

unit of general local government, 

including a combination of such units, 

if the State Board determines that the 

area meets the requirements of 

paragraph (a)(1) of this section and 

recommends designation. 

(c) Regardless of whether a local area 

has been designated under this section 

or § 679.250, the Governor may 

redesignate a local area if the 

redesignation has been requested by a 

local area and the Governor approves 

the request. 

§ 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? 

(a) If the chief elected official and 

Local Board in a local area submits a 

request for initial designation, the 

Governor must approve the request if, 

for the 2 program years preceding the 

date of enactment of WIOA, the 

following criteria are met: 

(1) The local area was designated as 

a local area for purposes of WIA; 

(2) The local area performed 

successfully; and 

(3) The local area sustained fiscal 

integrity. 

(b) If a local area is approved for 

initial designation, the period of initial 

designation applies to program years 

2015 and 2016. 

(c) After the period of initial 

designation, if the chief elected official 

and Local Board in a local area submits 

a request for subsequent designation, 

the Governor must approve the request 

if the following criteria are met for the 

2 program years of initial designation: 

(1) The local area performed 

successfully; 

(2) The local area sustained fiscal 

integrity; and 

(3) In the case of a local area in a 

planning region, the local area met the 

regional planning requirements 

described in WIOA sec.106(c) paragraph 

(1). 

(d) The Governor: 

(1) May review a local area designated 

under paragraph (c) of this section at 

any time to evaluate whether that the 

area continues to meet the requirements 

for subsequent designation under that 

paragraph; and 

(2) Must review a local area 

designated under paragraph (c) of this 

section before submitting its State Plan 

during each 4-year State planning cycle 

to evaluate whether the area continues 

to meet the requirements for subsequent 

designation under that paragraph. 

(e) For purposes of subsequent 

designation under paragraphs (c) and (d) 

of this section, the local area and chief 

elected official must be considered to 

have requested continued designation 

unless the local area and chief elected 

official notify the Governor that they no 

longer seek designation. 

(f) Local areas designated under 

§ 679.240 or States designated as singlearea States under § 679.270 are not 

subject to the requirements described in 

paragraph (c) of this section related to 

the subsequent designation of a local 

area. 

(g) Rural concentrated employment 

programs are not eligible to apply for 

initial designation as a local area under 

paragraph (c) of this section. 

§ 679.260 What do the terms ‘‘performed 

successfully’’ and ‘‘sustained fiscal 

integrity’’ mean for purposes of designating 

local areas? 

(a) For the purpose of initial local area 

designation, the term ‘‘performed 

successfully’’ means that the local area 

met or exceeded the levels of 

performance the Governor negotiated 

with Local Board and chief elected 

official under WIA sec. 136(c) for the 

last 2 full program years before the 

enactment of WIOA, and that the local 

area has not failed any individual 

measure for the last 2 consecutive 

program years before the enactment of 

WIOA. 

(1) The terms ‘‘met or exceeded’’ and 

‘‘failure’’ must be defined by the 

Governor consistent with how those 

terms were defined at the time the 

performance levels were negotiated. 

(2) When designating local areas, the 

Governor may not retroactively apply 

any higher WIOA threshold to 

performance negotiated and achieved 

under WIA. 

(b) For the purpose of determining 

subsequent local area designation, the 

term ‘‘performed successfully’’ means 

that the local area met or exceeded the 

levels of performance the Governor 

negotiated with Local Board and chief 

elected official for core indicators of 

performance described under WIA sec. 

136(c) or WIOA sec. 116(b)(2)(A), as 

appropriate, and in accordance with a 

State-established definition, provided in 

the State Plan, of met or exceeded 

performance. 

(c) For the purpose of determining 

initial and subsequent local area 

designation under § 679.250(a) and (c), 

the term ‘‘sustained fiscal integrity’’ 

means that the Secretary has not made 

a formal determination that either the 

grant recipient or the administrative 

entity of the area misexpended 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 2-year period 

preceding the determination. 

§ 679.270 What are the special designation 

provisions for single-area States? 

(a) The Governor of any State that was 

a single-State local area under the 

Workforce Investment Act as in effect 

on July 1, 2013 may designate the State 

as a single-State local workforce 

development area under WIOA. 

(b) The Governor of a State local 

workforce development area under 

paragraph (a) of this section who seeks 

to designate the State as a single-State 

local workforce development area under 

WIOA must: 

(1) Identify the State as a single State 

local area in the Unified or Combined 

State Plan; and 

(2) Include the local plan for approval 

as part of the Unified or Combined State 

Plan. 

(c) The State Board for a single-State 

local workforce development area must 

act as the Local Board and carry out the 


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functions of the Local Board in 

accordance with WIOA sec. 107 and 

§ 679.370, except that the State is not 

required to meet and report on a set of 

local performance accountability 

measures. 

§ 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? 

(a) When the chief elected officials 

and Local Boards of each local area 

within a planning region make a request 

to the Governor to redesignate into a 

single local area, the State Workforce 

Development Board must authorize 

statewide adult, dislocated worker 

(WIOA sec. 133(a)(1)), and youth 

program (WIOA sec. 128(a)) funds to 

facilitate such redesignation. 

(b) When statewide funds are not 

available, the State may provide funds 

for redesignation in the next available 

program year. 

(c) Redesignation activities that may 

be carried out by the local areas include: 

(1) Convening sessions and 

conferences; 

(2) Renegotiation of contracts and 

agreements; and 

(3) Other activities directly associated 

with the redesignation as deemed 

appropriate by the State Board. 

§ 679.290 What right does an entity have 

to appeal the Governor’s decision rejecting 

a request for designation as a workforce 

development area? 

(a) A unit of local government (or 

combination of units) or a local area 

which has requested but has been 

denied its request for designation as a 

workforce development area under 

§ 679.250 may appeal the decision to the 

State Board, in accordance with appeal 

procedures established in the State Plan 

and 20 CFR 683.630(a). 

(b) If a decision on the appeal is not 

rendered in a timely manner or if the 

appeal to the State Board does not result 

in designation, the entity may request 

review by the Secretary of Labor, under 

the procedures set forth at 20 CFR 

683.640. 

Subpart C—Local Boards 

§ 679.300 What is the vision and purpose 

of the Local Workforce Development 

Board? 

(a) The vision for the Local Workforce 

Development Board (Local Board) is to 

serve as a strategic leader and convener 

of local workforce development system 

stakeholders. The Local Board partners 

with employers and the workforce 

development system to develop policies 

and investments that support workforce 

system strategies that support regional 

economies, the development of effective 

approaches including local and regional 

sector partnerships and career 

pathways, and high quality, customer 

centered service delivery and service 

delivery approaches; 

(b) The purpose of the Local Board is 

to— 

(1) Provide strategic and operational 

oversight in collaboration with the 

required and additional partners and 

workforce stakeholders to help develop 

a comprehensive and high-quality 

workforce development system in the 

local area and larger planning region; 

(2) Assist in the achievement of the 

State’s strategic and operational vision 

and goals as outlined in the Unified 

State Plan or Combined State Plan; and 

(3) Maximize and continue to improve 

the quality of services, customer 

satisfaction, effectiveness of the services 

provided. 

§ 679.310 What is the Local Workforce 

Development Board? 

(a) The Local Board is appointed by 

the chief elected official(s) in each local 

area in accordance with State criteria 

established under WIOA sec. 107(b), 

and is certified by the Governor every 2 

years, in accordance with WIOA sec. 

107(c)(2). 

(b) In partnership with the chief 

elected official(s), the Local Board sets 

policy for the portion of the statewide 

workforce investment system within the 

local area and consistent with State 

policies. 

(c) The Local Board and the chief 

elected official(s) may enter into an 

agreement that describes the respective 

roles and responsibilities of the parties. 

(d) The Local Board, in partnership 

with the chief elected official(s), 

develops the local plan and performs 

the functions described in WIOA sec. 

107(d) and § 679.370. 

(e) If a local area includes more than 

one unit of general local government in 

accordance with WIOA sec. 107(c)(1)(B), 

the chief elected officials of such units 

may execute an agreement to describe 

their responsibilities for carrying out the 

roles and responsibilities. If the chief 

elected officials are unable to reach 

agreement after a reasonable effort, the 

Governor may appoint the members of 

the Local Board from individuals 

nominated or recommended as specified 

in WIOA sec. 107(b). 

(f) If the State Plan indicates that the 

State will be treated as a local area 

under WIOA, the State Board must carry 

out the roles of the Local Board in 

accordance with WIOA sec. 107, except 

that the State is not required to meet 

and report on a set of local performance 

accountability measures. 

(g) The chief local elected official 

must establish by-laws, consistent with 

State policy for Local Board 

membership, that at a minimum 

address: 

(1) The nomination process used by 

the chief local elected official to elect 

the Local Board chair and members; 

(2) The term limitations and how the 

term appointments will be staggered to 

ensure only a portion of membership 

expire in a given year; 

(3) The process to notify the chief 

local elected official of a board member 

vacancy to ensure a prompt nominee; 

(4) The proxy and alternative designee 

process that will be used when a board 

member is unable to attend a meeting 

and assigns a designee as per the 

requirements at § 679.110(d)(4); 

(5) The use of technology, such as 

phone and Web-based meetings, that 

will be used to promote board member 

participation; and 

(6) The process to ensure board 

members actively participate in 

convening the workforce development 

system’s stakeholders, brokering 

relationships with a diverse range of 

employers, and leveraging support for 

workforce development activities. 

(7) A description of any other 

conditions governing appointment or 

membership on the State Board as 

deemed appropriate by the chief local 

elected official. 

§ 679.320 Who are the required members 

of the Local Workforce Development 

Board? 

(a) For each local area in the State, the 

members of Local Board must be 

selected by the chief elected official 

consistent with criteria established 

under WIOA sec. 107(b)(1) and criteria 

established by the Governor, and must 

meet the requirements of WIOA sec. 

107(b)(2). 

(b) A majority of the members of the 

Local Board must be representatives of 

business in the local area. At a 

minimum, two members must represent 

small business as defined by the U.S. 

Small Business Administration. 

Business representatives serving on 

Local Boards may also serve on the State 

Board. Each business representative 

must meet the following criteria: 

(1) Be an owner, chief executive 

officer, chief operating officer, or other 

individual with optimum policy-making 

or hiring authority; and 

(2) provide employment opportunities 

in in-demand industry sectors or 

occupations, as those terms are defined 

in WIOA sec. 3(23). 

(c) At least 20 percent of the members 

of the Local Board must be workforce 

representatives. These representatives: 


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(1) Must include two or more 

representatives of labor organizations, 

where such organizations exist in the 

local area. Where labor organizations do 

not exist, representatives must be 

selected from other employee 

representatives; 

(2) Must include one or more 

representatives of a joint labormanagement, or union affiliated, 

registered apprenticeship program 

within the area who must be a training 

director or a member of a labor 

organization. If no union affiliated 

registered apprenticeship programs exist 

in the area, a representative of a 

registered apprenticeship program with 

no union affiliation must be appointed, 

if one exists; 

(3) May include one or more 

representatives of community-based 

organizations that have demonstrated 

experience and expertise in addressing 

the employment, training or education 

needs of individuals with barriers to 

employment, including organizations 

that serve veterans or provide or support 

competitive integrated employment for 

individuals with disabilities; and 

(4) May include one or more 

representatives of organizations that 

have demonstrated experience and 

expertise in addressing the employment, 

training, or education needs of eligible 

youth, including representatives of 

organizations that serve out-of-school 

youth. 

(d) The Local Board must also 

include: 

(1) At least one eligible provider 

administering adult education and 

literacy activities under WIOA title II; 

(2) At least one representative from an 

institution of higher education 

providing workforce investment 

activities, including community 

colleges; and 

(3) At least one representative from 

each of the following governmental and 

economic and community development 

entities: 

(i) Economic and community 

development entities; 

(ii) The State employment service 

office under the Wagner-Peyser Act (29 

U.S.C. 49 et seq.) serving the local area; 

and 

(iii) The programs carried out under 

title I of the Rehabilitation Act of 1973, 

other than sec. 112 or part C of that title; 

(e) The membership of Local Boards 

may include individuals or 

representatives of other appropriate 

entities in the local area, including: 

(1) Entities administering education 

and training activities who represent 

local educational agencies or 

community-based organizations with 

demonstrated expertise in addressing 

the education or training needs for 

individuals with barriers to 

employment; 

(2) Governmental and economic and 

community development entities who 

represent transportation, housing, and 

public assistance programs; 

(3) Philanthropic organizations 

serving the local area; and 

(4) Other appropriate individuals as 

determined by the chief elected official. 

(f) Members must be individuals with 

optimum policy-making authority 

within the entities they represent. 

(g) Chief elected officials must 

establish a formal nomination and 

appointment process, consistent with 

the criteria established by the Governor 

and State Board under sec. 107(b)(1) of 

WIOA for appointment of members of 

the Local Boards, that ensures: 

(1) Business representatives are 

appointed from among individuals who 

are nominated by local business 

organizations and business trade 

associations. 

(2) Labor representatives are 

appointed from among individuals who 

are nominated by local labor federations 

(or, for a local area in which no 

employees are represented by such 

organizations, other representatives of 

employees); and 

(3) 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 

investment activities as described in 

WIOA 107(b)(2)(C)(i) or (ii), 

nominations are solicited from those 

particular entities. (WIOA sec. 107(b)(6)) 

(h) 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. 

(i) All required board members must 

have voting privilege. The chief elected 

official may convey voting privileges to 

non-required members. 

§ 679.330 Who must chair a Local Board? 

The Local Board must elect a 

chairperson from among the business 

representatives on the board. (WIOA 

sec. 107(b)(3)) 

§ 679.340 What is meant by the terms 

‘‘optimum policy-making authority’’ and 

‘‘demonstrated experience and expertise’’? 

For purposes of selecting 

representatives to Local Workforce 

Development Boards: 

(a) A representative with ‘‘optimum 

policy-making authority’’ is 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. 

(b) A representative with 

‘‘demonstrated experience and 

expertise’’ means an individual who:– 

(1) Is a workplace learning advisor as 

defined in WIOA sec. 3(70); 

(2) Contributes to the field of 

workforce development, human 

resources, training and development, or 

a core program function; or 

(3) The Local Board recognizes for 

valuable contributions in education or 

workforce development related fields. 

§ 679.350 What criteria will be used to 

establish the membership of the Local 

Board? 

The Local Board is appointed by the 

chief elected official(s) in the local area 

in accordance with State criteria 

established under WIOA sec. 107(b), 

and is certified by the Governor every 2 

years, in accordance with WIOA sec. 

107(c)(2). 

§ 679.360 What is a standing committee, 

and what is its relationship to the Local 

Board? 

(a) Standing committees may be 

established by the Local Board to 

provide information and assist the Local 

Board in carrying out its responsibilities 

under WIOA sec. 107. Standing 

committees must be chaired by a 

member of the Local Board, may include 

other members of the Local Board, and 

must include other individuals 

appointed by the Local Board who are 

not members of the Local Board and 

who have demonstrated experience and 

expertise in accordance with 

§ 679.340(b) and as determined by the 

Local Board. Standing committees may 

include each of the following: 

(1) A standing committee to provide 

information and assist with operational 

and other issues relating to the one-stop 

delivery system, which may include 

representatives of the one-stop partners. 

(2) 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 community-based 

organizations with a demonstrated 

record of success in serving eligible 

youth. 

(3) A standing committee to provide 

information and to assist with 

operational and other issues relating to 

the provision of services to individuals 

with disabilities, including issues 

relating to compliance with WIOA sec. 

188, if applicable, and applicable 

provisions of the Americans with 

Disabilities Act of 1990 (42 U.S.C. 12101 


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et seq.) regarding providing 

programmatic and physical access to the 

services, programs, and activities of the 

one-stop delivery system, as well as 

appropriate training for staff on 

providing supports for or 

accommodations to, and finding 

employment opportunities for, 

individuals with disabilities. 

(b) The Local Board may designate 

other standing committees in addition 

to those specified in paragraph (a) of 

this section. 

(c) Local Boards may designate an 

entity in existence as of the date of the 

enactment of WIOA, such as an effective 

youth council, to serve as a standing 

committee as long as the entity meets 

the requirements of WIOA sec. 

107(b)(4). 

§ 679.370 What are the functions of the 

Local Board? 

As provided in WIOA sec. 107(d), the 

Local Board must: 

(a) Develop and submit a 4-year local 

plan for the local area, in partnership 

with the chief elected official and 

consistent with WIOA sec. 108; 

(b) If the local area is part of a 

planning region that includes other 

local areas, develop and submit a 

regional plan in collaboration with other 

local areas. If the local area is part of a 

planning region, the local plan must be 

submitted as a part of the regional plan; 

(c) Conduct workforce research and 

regional labor market analysis to 

include: 

(1) analyses and regular updates of 

economic conditions, needed 

knowledge and skills, workforce, and 

workforce development (including 

education and training) activities to 

include an analysis of the strengths and 

weaknesses (including the capacity to 

provide) of such services to address the 

identified education and skill needs of 

the workforce and the employment 

needs of employers; 

(2) Assistance to the Governor in 

developing the statewide workforce and 

labor market information system under 

the Wagner-Peyser Act for the region; 

(3) Other research, data collection, 

and analysis related to the workforce 

needs of the regional economy as the 

board, after receiving input from a wide 

array of stakeholders, determines to be 

necessary to carry out its functions. 

(d) Convene local workforce 

development system stakeholders to 

assist in the development of the local 

plan under § 679.550 and in identifying 

non-Federal expertise and resources to 

leverage support for workforce 

development activities. Such 

stakeholders may assist the Local Board 

and standing committees in carrying out 

convening, brokering, and leveraging 

functions at the direction of the Local 

Board; 

(e) Lead efforts to engage with a 

diverse range of employers and other 

entities in the region in order to: 

(1) Promote business representation 

(particularly representatives with 

optimum policy-making or hiring 

authority from employers whose 

employment opportunities reflect 

existing and emerging employment 

opportunities in the region) on the Local 

Board; 

(2) Develop effective linkages 

(including the use of intermediaries) 

with employers in the region to support 

employer utilization of the local 

workforce development system and to 

support local workforce investment 

activities; 

(3) Ensure that workforce investment 

activities meet the needs of employers 

and support economic growth in the 

region by enhancing communication, 

coordination, and collaboration among 

employers, economic development 

entities, and service providers; and 

(4) Develop and implement proven or 

promising strategies for meeting the 

employment and skill needs of workers 

and employers (such as the 

establishment of industry and sector 

partnerships), that provide the skilled 

workforce needed by employers in the 

region, and that expand employment 

and career advancement opportunities 

for workforce development system 

participants in in-demand industry 

sectors or occupations. 

(f) 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. 

(g) 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, and identify 

and disseminate information on proven 

and promising practices carried out in 

other local areas for meeting such needs. 

(h) Develop strategies for using 

technology to maximize the accessibility 

and effectiveness of the local workforce 

development system for employers, and 

workers and jobseekers, by: 

(1) Facilitating connections among the 

intake and case management 

information systems of the one-stop 

partner programs to support a 

comprehensive workforce development 

system in the local area; 

(2) Facilitating access to services 

provided through the one-stop delivery 

system involved, including access in 

remote areas; 

(3) Identifying strategies for better 

meeting the needs of individuals with 

barriers to employment, including 

strategies that augment traditional 

service delivery, and increase access to 

services and programs of the one-stop 

delivery system, such as improving 

digital literacy skills; and 

(4) Leveraging resources and capacity 

within the local workforce development 

system, including resources and 

capacity for services for individuals 

with barriers to employment. 

(i) In partnership with the chief 

elected official for the local area: 

(1) Conduct oversight of youth 

workforce investment activities 

authorized under WIOA sec. 129(c), 

adult and dislocated worker 

employment and training activities 

under WIOA secs. 134 (c) and (d); and 

entire one-stop delivery system in the 

local area; and 

(2) Ensure the appropriate use and 

management of the funds provided 

under WIOA subtitle B for the youth, 

adult, and dislocated worker activities 

and one-stop delivery system in the 

local area; and 

(3) Ensure the appropriate use 

management, and investment of funds 

to maximize performance outcomes 

under WIOA sec. 116. 

(j) Negotiate and reach agreement on 

local performance measures with the 

chief elected official and the Governor. 

(k) 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 or must notify the Governor if 

they fail to reach agreement at the local 

level and will use a State infrastructure 

funding mechanism. 

(l) Select the following providers in 

the local area, and where appropriate 

terminate such providers in accordance 

with 2 CFR part 200: 

(1) Providers of youth workforce 

investment activities through 

competitive grants or contracts based on 

the recommendations of the youth 

standing committee (if such a committee 

is established); however, if the Local 

Board determines there is an 

insufficient number of eligible providers 

in a local area, the Local Board may 

award contracts on a sole-source basis 

as per the provisions at WIOA sec. 

123(b); 

(2) Providers of training services 

consistent with the criteria and 

information requirements established by 

the Governor and WIOA sec. 122; 


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(3) Providers of career services 

through the award of contracts, if the 

one-stop operator does not provide such 

services; and 

(4) One-stop operators in accordance 

with §§ 678.600 through 678.635. 

(m) In accordance with WIOA sec. 

107(d)(10)(E) work with the State to 

ensure there are sufficient numbers and 

types of providers of career services and 

training services serving the local area 

and providing the services in a manner 

that maximizes consumer choice, as 

well as providing opportunities that 

lead to competitive integrated 

employment for individuals with 

disabilities. 

(n) Coordinate activities with 

education and training providers in the 

local area, including: 

(1) Reviewing applications to provide 

adult education and literacy activities 

under title II for the local area to 

determine whether such applications 

are consistent with the local plan; 

(2) making recommendations to the 

eligible agency to promote alignment 

with such plan; and 

(3) Replicating and implementing 

cooperative agreements to enhance the 

provision of services to individuals with 

disabilities and other individuals, such 

as cross training of staff, technical 

assistance, use and sharing of 

information, cooperative efforts with 

employers, and other efforts at 

cooperation, collaboration, and 

coordination. 

(o) Develop a budget for the activities 

of the Local Board, with approval of the 

chief elected official and consistent with 

the local plan and the duties of the 

Local Board. 

(p) Assess, on an annual basis, the 

physical and programmatic accessibility 

of all one-stop centers in the local area, 

in accordance with WIOA sec. 188, if 

applicable, and applicable provisions of 

the Americans with Disabilities Act of 

1990 (42 U.S.C. 12101 et seq.). 

(q) Certification of one-stop centers in 

accordance with § 678.800. 

§ 679.380 How does the Local Board 

satisfy the consumer choice requirements 

for career services and training services? 

(a) In accordance with WIOA sec. 122 

and in working with the State, the Local 

Board satisfies the consumer choice 

requirement for training services by: 

(1) Determining the initial eligibility 

of entities providing a program of 

training services, renewing the 

eligibility of providers, and considering 

the possible termination of an eligible 

provider due to the provider’s 

submission of inaccurate eligibility and 

performance information or the 

provider’s substantial violation of 

WIOA; 

(2) Working with the State to ensure 

there are sufficient numbers and types 

of providers of training services, 

including eligible providers with 

expertise in assisting individuals with 

disabilities and eligible providers with 

expertise in assisting adults in need of 

adult education and literacy activities 

described under WIOA sec. 

107(d)(10)(E), serving the local area; 

(3) Ensuring the dissemination and 

appropriate use of the State list through 

the local one-stop system. 

(4) Receiving performance and cost 

information from the State and 

disseminating this information through 

the one-stop delivery systems within the 

State; and 

(5) Providing adequate access to 

services for individuals with 

disabilities. 

(b) Working with the State, the Local 

Board satisfies the consumer choice 

requirement for career services by: 

(1) Determining the career services 

that are best performed by the one-stop 

operator consistent with §§ 678.620 and 

678.625 and career services that require 

contracting with a career service 

provider; 

(2) Identifying a wide-array of 

potential career service providers and 

awarding contracts where appropriate 

including to providers to ensure: 

(i) Sufficient access to services for 

individuals with disabilities, including 

opportunities that lead to integrated, 

competitive employment for people 

with disabilities; 

(ii) Sufficient access for Adult 

Education and literacy activities. 

§ 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? 

The Local Board must conduct its 

business in an open manner as required 

by WIOA sec. 107(e), by making 

available to the public, on a regular 

basis through electronic means and 

open meetings, information about the 

activities of the Local Board. This 

includes: 

(a) Information about the Local Plan, 

or modification to the Local Plan, before 

submission of the plan; 

(b) List and affiliation of Local Board 

members; 

(c) Selection of one-stop operators; 

(d) Award of grants or contracts to 

eligible providers of workforce 

investment activities including 

providers of youth workforce 

investment activities; 

(e) Minutes of formal meetings of the 

Local Board; and 

(f) Local Board by-laws, consistent 

with § 679.310(g). 

§ 679.400 Who are the staff to the Local 

Board and what is their role? 

(a) WIOA sec. 107(f) grants Local 

Boards authority to hire a director and 

other staff to assist in carrying out the 

functions of the Local Board. 

(b) Local Boards must establish and 

apply a set of qualifications for the 

position of director that ensures the 

individual selected has the requisite 

knowledge, skills, and abilities to meet 

identified benchmarks and to assist in 

carrying out the functions of the Local 

Board. 

(c) The Local Board director and staff 

must be subject to the limitations on the 

payment of salary and bonuses 

described in WIOA sec. 194(15). 

(d) In general, Local Board staff may 

only assist the Local Board fulfill the 

required functions at WIOA sec. 107(d). 

(e) Should the board select an entity 

to staff the board that provides 

additional workforce functions beyond 

the functions described at WIOA sec. 

107(d), such an entity is required to 

enter into a written agreement with the 

Local Board and chief elected official(s) 

to clarify their roles and responsibilities 

as required by § 679.430. 

§ 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? 

(a)(1) A Local Board may be selected 

as a one-stop operator: 

(i) Through sole source procurement 

in accordance with § 678.610; or 

(ii) Through successful competition in 

accordance with § 678.615. 

(2) The chief elected official in the 

local area and the Governor must agree 

to the selection described in paragraph 

(a)(1) of this section. 

(3) Where a Local Board acts as a onestop operator, the State must ensure 

certification of one-stop centers in 

accordance with § 662.600. 

(b) A Local Board may act as a 

provider career services only with the 

agreement of the chief elected official in 

the local area and the Governor. 

(c) A Local Board is prohibited from 

providing training services, unless the 

Governor grants a waiver in accordance 

with the provisions in WIOA sec. 

107(g)(1). 

(1) The State must develop a 

procedure for approving waivers that 

includes the criteria at WIOA sec. 

107(g)(1)(B)(i): 

(i) Satisfactory evidence that there is 

an insufficient number of eligible 

providers of such a program of training 

services to meet local demand in the 

local area; 

(ii) Information demonstrating that 

the board meets the requirements for an 


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eligible provider of training services 

under WIOA sec. 122; and 

(iii) Information demonstrating that 

the program of training services 

prepares participants for an in-demand 

industry sector or occupation in the 

local area. 

(2) The local area must make the 

proposed request for a waiver available 

to eligible providers of training services 

and other interested members of the 

public for a public comment period of 

not less than 30 days and includes any 

comments received during this time in 

the final request for the waiver. 

(3) The waiver must not exceed the 

duration of the local plan and may be 

renewed by submitting a new waiver 

request consistent with paragraphs (c)(1) 

and (2) of this section for additional 

periods, not to exceed the durations of 

such subsequent plans. 

(4) The Governor may revoke the 

waiver if the Governor determines the 

waiver is no longer needed or that the 

Local Board involved has engaged in a 

pattern of inappropriate referrals to 

training services operated by the Local 

Board. 

(d) The restrictions on the provision 

of career and training services by the 

Local Board, and on as one-stop 

operator, also apply to staff of the Local 

Board. 

§ 679.420 What are the functions of the 

local fiscal agent? 

(a) In order to assist in administration 

of the grant funds, the chief elected 

official 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. 

Designation of a fiscal agent does not 

relieve the chief elected official or 

Governor of liability for the misuse of 

grant funds. If the CEO designates a 

fiscal agent, the CEO must ensure this 

agent has clearly defined roles and 

responsibilities. 

(b) In general the fiscal agent is 

responsible for the following functions: 

(1) Receive funds. 

(2) Ensure sustained fiscal integrity 

and accountability for expenditures of 

funds in accordance with Office of 

Management and Budget circulars, 

WIOA and the corresponding Federal 

Regulations and State policies. 

(3) Respond to audit financial 

findings. 

(4) Maintain proper accounting 

records and adequate documentation. 

(5) Prepare financial reports. 

(6) Provide technical assistance to 

subrecipients regarding fiscal issues. 

(c) At the direction of the Local Board 

or the State Board in single State areas, 

the fiscal agent may have the following 

additional functions: 

(1) Procure contracts or obtain written 

agreements. 

(2) Conduct financial monitoring of 

service providers. 

(3) Ensure independent audit of all 

employment and training programs. 

§ 679.430 How do entities performing 

multiple functions in a local area 

demonstrate internal controls and prevent 

conflict of interest? 

Local organizations often function 

simultaneously in a variety of roles, 

including local fiscal agent, Local Board 

staff, one-stop operator, and direct 

provider of career services or training 

services. Any organization that has been 

selected or otherwise designated to 

perform more than one of these 

functions must develop a written 

agreement with the Local Board and 

chief local elected official to clarify how 

the organization will carry out its 

responsibilities while demonstrating 

compliance with the Workforce 

Innovation and Opportunity Act and 

corresponding regulations, relevant 

Office of Management and Budget 

circulars, and the State’s conflict of 

interest policy. 

Subpart D—Regional and Local Plan 

§ 679.500 What is the purpose of the 

regional and local plan? 

(a) The local plan serves as 4-year 

action plan to develop, align, and 

integrate service delivery strategies and 

to support the State’s vision and 

strategic and operational goals. The 

local plan sets forth the strategy to: 

(1) Direct investments in economic, 

education, and workforce training 

programs to focus on providing relevant 

education and training to ensure that 

individuals, including youth and 

individuals with barriers to 

employment, have the skills to compete 

in the job market and that employers 

have a ready supply of skilled workers; 

(2) Apply job-driven strategies in the 

one-stop system; 

(3) Enable economic, education, and 

workforce partners to build a skilled 

workforce through innovation in, and 

alignment of, employment, training, and 

education programs; and 

(4) Incorporate the local plan into the 

regional plan per 20 CFR 679.540. 

(b) In the case of planning regions, a 

regional plan is required to meet the 

purposes described in paragraph (a) of 

this section and to coordinate resources 

among multiple boards in a region. 

§ 679.510 What are the requirements for 

regional planning? 

(a) Local Boards and chief elected 

officials within an identified planning 

region (as defined in WIOA secs. 

106(a)(2)(B)–(C) and § 679.200 of this 

part) must: 

(1) Participate in a regional planning 

process that results in: 

(i) The preparation of a regional plan, 

as described in paragraph (a)(2) of this 

section and consistent with any 

guidance issued by the Department; 

(ii) The establishment of regional 

service strategies, including use of 

cooperative service delivery agreements; 

(iii) The development and 

implementation of sector initiatives for 

in-demand industry sectors or 

occupations for the planning region; 

(iv) The collection and analysis of 

regional labor market data (in 

conjunction with the State) which must 

include the local planning requirements 

at § 679.560(a)(1)(i) and (ii); 

(v) The coordination of administrative 

cost arrangements, including the 

pooling of funds for administrative 

costs, as appropriate; 

(vi) The coordination of 

transportation and other supportive 

services as appropriate; 

(vii) The coordination of services with 

regional economic development services 

and providers; and 

(viii) The establishment of an 

agreement concerning how the planning 

region will collectively negotiate and 

reach agreement with the Governor on 

local levels of performance for, and 

report on, the performance 

accountability measures described in 

WIOA sec. 116(c) for local areas or the 

planning region. 

(2) Prepare, submit, and obtain 

approval of a single regional plan that: 

(i) Includes a description of the 

activities described in paragraph (a)(1) 

of this section; and 

(ii) Incorporates local plans for each 

of the local areas in the planning region, 

consistent with § 679.540(a). 

(b) Consistent with § 679.550(b), the 

Local Boards representing each local 

area in the planning region must 

provide an opportunity for public 

comment on the development of the 

regional plan or subsequent plan 

modifications before submitting the 

plan to the Governor. To provide 

adequate opportunity for public 

comment, the Local Boards must: 

(1) Make copies of the proposed 

regional plan available to the public 

through electronic and other means, 

such as public hearings and local news 

media; 

(2) Include an opportunity for 

comment by members of the public, 

including representatives of business, 

labor organizations, and education; 

(3) Provide no more than a 30-day 

period for comment on the plan before 

its submission to the Governor, 


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beginning on the date on which the 

proposed plan is made available; and 

(4) The Local Boards must submit any 

comments that express disagreement 

with the plan to the Governor along 

with the plan. 

(5) Consistent with WIOA sec. 107(e), 

the Local Board must make information 

about the plan available to the public on 

a regular basis through electronic means 

and open meetings. 

(c) The State must provide technical 

assistance and labor market data, as 

requested by local areas, to assist with 

regional planning and subsequent 

service delivery efforts. 

(d) As they relate to regional areas and 

regional plans, the terms local area and 

local plan are defined in WIOA secs. 

106(c)(3)(A)–(B). 

§ 679.520 What are the requirements for 

approval of a regional plan? 

Consistent with § 679.570, the 

Governor must review completed plans 

(including a modification to the plan). 

Such plans will be considered approved 

90 days after submission unless the 

Governor determines in writing that: 

(a) There are deficiencies in workforce 

investment activities that have been 

identified through audits and the local 

area has not made acceptable progress 

in implementing plans to address 

deficiencies; or 

(b) The plan does not comply with 

applicable provisions of WIOA and the 

WIOA regulations, including the 

required consultations and public 

comment provisions, and the 

nondiscrimination requirements of 29 

CFR part 37. 

(c) The plan does not align with the 

State Plan, including with regard to the 

alignment of the core programs to 

support the strategy identified in the 

State Plan in accordance with WIOA 

sec. 102(b)(1)(E) and 20 CFR 676.105. 

§ 679.530 When must the regional plan be 

modified? 

(a) Consistent with § 679.580, the 

Governor must establish procedures 

governing the modification of regional 

plans. 

(b) At the end of the first 2-year 

period of the 4-year local plan, the Local 

Boards within a planning region, in 

partnership with the appropriate chief 

elected officials, must review the 

regional plan and prepare and submit 

modifications to the regional plan to 

reflect changes: 

(1) In regional labor market and 

economic conditions; and 

(2) Other factors affecting the 

implementation of the local plan, 

including but not limited to changes in 

the financing available to support WIOA 

title I and partner-provided WIOA 

services. 

§ 679.540 How are local planning 

requirements reflected in a regional plan? 

(a) The regional plan must address the 

requirements at WIOA secs. 

106(c)(1)(A)–(H), and incorporate the 

local planning requirements identified 

for local plans at WIOA secs. 108(b)(1)– 

(22). 

(b) The Governor may issue regional 

planning guidance that allows Local 

Boards and chief elected officials in a 

planning region to address any local 

plan requirements through the regional 

plan where there is a shared regional 

responsibility. 

§ 679.550 What are the requirements for 

the development of the local plan? 

(a) Under WIOA sec. 108, each Local 

Board must, in partnership with the 

appropriate chief elected officials, 

develop and submit a comprehensive 4- 

year plan to the Governor. 

(1) The plan must identify and 

describe the policies, procedures, and 

local activities that are carried out in the 

local area, consistent with the State 

Plan. 

(2) If the local area is part of a 

planning region, the Local Board must 

comply with WIOA sec. 106(c) and 

§§ 679.510 through 679.540 in the 

preparation and submission of a 

regional plan. 

(b) Consistent with 679.510(b), the 

Local Board must provide an 

opportunity for public comment on the 

development of the local plan or 

subsequent plan modifications before 

submitting the plan to the Governor. To 

provide adequate opportunity for public 

comment, the Local Board must: 

(1) Make copies of the proposed local 

plan available to the public through 

electronic and other means, such as 

public hearings and local news media; 

(2) Include an opportunity for 

comment by members of the public, 

including representatives of business, 

labor organizations, and education; 

(3) Provide no more than a 30-day 

period for comment on the plan before 

its submission to the Governor, 

beginning on the date on which the 

proposed plan is made available, prior 

to its submission to the Governor; and 

(4) The Local Board must submit any 

comments that express disagreement 

with the plan to the Governor along 

with the plan. 

(5) Consistent WIOA sec. 107(e), the 

Local Board must make information 

about the plan available to the public on 

a regular basis through electronic means 

and open meetings. 

§ 679.560 What are the contents of the 

local plan? 

(a) The local workforce investment 

plan must describe strategic planning 

elements, including: 

(1) A regional analysis of: 

(i) Economic conditions including 

existing and emerging in-demand 

industry sectors and occupations; and 

(ii) Employment needs of employers 

in existing and emerging in-demand 

industry sectors and occupations. 

(iii) As appropriate, a local area may 

use an existing analysis, which is a 

timely current description of the 

regional economy, to meet the 

requirements of paragraphs (a)(1)(i) and 

(ii) of this section. 

(2) Knowledge and skills needed to 

meet the employment needs of the 

employers in the region, including 

employment needs in in-demand 

industry sectors and occupations; 

(3) An analysis of the regional 

workforce, including current labor force 

employment and unemployment data, 

information on labor market trends, and 

educational and skill levels of the 

workforce, including individuals with 

barriers to employment; 

(4) An analysis of workforce 

development activities, including 

education and training, in the region. 

This analysis must include the strengths 

and weaknesses of workforce 

development activities and capacity to 

provide the workforce development 

activities to address the education and 

skill needs of the workforce, including 

individuals with barriers to 

employment, and the employment 

needs of employers; 

(5) A description of the Local Board’s 

strategic vision to support regional 

economic growth and economic selfsufficiency. This must include goals for 

preparing an educated and skilled 

workforce (including youth and 

individuals with barriers to 

employment), and goals relating to the 

performance accountability measures 

based on performance indicators 

described in 20 CFR 677.155(a)(1); and 

(6) Taking into account analyses 

described in paragraphs (a)(1) through 

(4) of this section, a strategy to work 

with the entities that carry out the core 

programs and required partners to align 

resources available to the local area, to 

achieve the strategic vision and goals 

described in paragraph (a)(5) of this 

section; 

(b) The plan must include a 

description of the following 

requirements at WIOA secs. 108(b)(2)– 

(21): 

(1) The workforce development 

system in the local area that identifies: 


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(i) The programs that are included in 

the system; and 

(ii) How the Local Board will support 

the strategy identified in the State Plan 

under 20 CFR 676.105 and work with 

the entities carrying out core programs 

and other workforce development 

programs, including programs of study 

authorized under the Carl D. Perkins 

Career and Technical Education Act of 

2006 (20 U.S.C. 2301 et seq.) to support 

service alignment. 

(2) How the Local Board will work 

with entities carrying out core programs 

to: 

(i) Expand access to employment, 

training, education, and supportive 

services for eligible individuals, 

particularly eligible individuals with 

barriers to employment; 

(ii) Facilitate the development of 

career pathways and co-enrollment, as 

appropriate, in core programs; and 

(iii) Improve access to activities 

leading to a recognized post-secondary 

credential (including a credential that is 

an industry-recognized certificate or 

certification, portable, and stackable); 

(3) The strategies and services that 

will be used in the local area: 

(i) To facilitate engagement of 

employers in workforce development 

programs, including small employers 

and employers in in-demand industry 

sectors and occupations; 

(ii) To support a local workforce 

development system that meets the 

needs of businesses in the local area; 

(iii) To better coordinate workforce 

development programs and economic 

development; 

(iv) To strengthen linkages between 

the one-stop delivery system and 

unemployment insurance programs; and 

(v) That may include the 

implementation of initiatives such as 

incumbent worker training programs, 

on-the-job training programs, 

customized training programs, industry 

and sector strategies, career pathways 

initiatives, utilization of effective 

business intermediaries, and other 

business services and strategies 

designed to meet the needs of regional 

employers. These initiatives should 

support the strategy described in this 

paragraph (b)(3). 

(4) An examination of how the Local 

Board 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; 

(5) The one-stop delivery system in 

the local area, including: 

(i) How the Local Board will ensure 

the continuous improvement of eligible 

providers of services through the system 

and that such providers will meet the 

employment needs of local employers, 

workers, and jobseekers; 

(ii) How the Local Board will facilitate 

access to services provided through the 

one-stop delivery system, including in 

remote areas, through the use of 

technology and other means; 

(iii) 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 

the physical and programmatic 

accessibility of facilities, programs and 

services, technology, and materials for 

individuals with disabilities, including 

providing staff training and support for 

addressing the needs of individuals 

with disabilities; and 

(iv) The roles and resource 

contributions of the one-stop partners; 

(6) A description and assessment of 

the type and availability of adult and 

dislocated worker employment and 

training activities in the local area; 

(7) A description of how the Local 

Board will coordinate workforce 

investment activities carried out in the 

local area with statewide rapid response 

activities; 

(8) A description and assessment of 

the type and availability of youth 

workforce investment activities in the 

local area including activities for youth 

who are individuals with disabilities, 

which must include an identification of 

successful models of such activities; 

(9) How the Local Board will 

coordinate relevant secondary and postsecondary education programs and 

activities with education and workforce 

investment activities to coordinate 

strategies, enhance services, and avoid 

duplication of services; 

(10) How the Local Board will 

coordinate WIOA title I workforce 

investment activities with the provision 

of transportation and other appropriate 

supportive services in the local area; 

(11) Plans, assurances, and strategies 

for maximizing coordination, improving 

service delivery, and avoiding 

duplication of Wagner-Peyser Act (29 

U.S.C. 49 et seq.) services and other 

services provided through the one-stop 

delivery system; 

(12) How the Local Board will 

coordinate WIOA title I workforce 

investment activities with adult 

education and literacy activities under 

WIOA title II. This description must 

include how the Local Board will carry 

out the review of local applications 

submitted under title II consistent with 

WIOA secs. 107(d)(11)(A) and (B)(i) and 

WIOA sec. 232; 

(13) Copies of executed cooperative 

agreements which define how all local 

service providers, including additional 

providers, will carry out the 

requirements for integration of and 

access to the entire set of services 

available in the local one-stop system. 

This includes cooperative agreements 

(as defined in WIOA sec. 107(d)(11)) 

between the Local Board or other local 

entities described in WIOA sec. 

101(a)(11)(B) of the Rehabilitation Act of 

1973 (29 U.S.C. 721(a)(11)(B)) and the 

local office of a designated State agency 

or designated State unit administering 

programs carried out under title I of 

such Act (29 U.S.C. 720 et seq.) (other 

than sec. 112 or part C of that title (29 

U.S.C. 732, 741) and subject to sec. 

121(f)) in accordance with sec. 

101(a)(11) of such Act (29 U.S.C. 

721(a)(11)) with respect to efforts that 

will enhance the provision of services to 

individuals with disabilities and to 

other individuals, such as cross training 

of staff, technical assistance, use and 

sharing of information, cooperative 

efforts with employers, and other efforts 

at cooperation, collaboration, and 

coordination; 

(14) An identification of the entity 

responsible for the disbursal of grant 

funds described in WIOA sec. 

107(d)(12)(B)(i)(III), as determined by 

the chief elected official or the Governor 

under WIOA sec. 107(d)(12)(B)(i). 

(15) The competitive process that will 

be used to award the subgrants and 

contracts for WIOA title I activities; 

(16) The local levels of performance 

negotiated with the Governor and chief 

elected official consistent with WIOA 

sec. 116(c), to be used to measure the 

performance of the local area and to be 

used by the Local Board for measuring 

the performance of the local fiscal agent 

(where appropriate), eligible providers 

under WIOA title I subtitle B, and the 

one-stop delivery system in the local 

area; 

(17) The actions the Local Board will 

take toward becoming or remaining a 

high-performing board, consistent with 

the factors developed by the State Board 

(WIOA sec. 101(d)(6)); 

(18) How training services outlined in 

WIOA sec. 134 will be provided through 

the use of individual training accounts, 

including, if contracts for training 

services will be used, how the use of 

such contracts will be coordinated with 

the use of individual training accounts 

under that chapter, and how the Local 

Board will ensure informed customer 

choice in the selection of training 

programs regardless of how the training 

services are to be provided; 


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(19) The process used by the Local 

Board, consistent with WIOA 108(d), to 

provide a 30-day public comment 

period prior to submission of the plan, 

including an opportunity to have input 

into the development of the local plan, 

particularly for representatives of 

businesses, education, and labor 

organizations; 

(20) How 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; and 

(21) The direction given by the 

Governor and the Local Board to the 

one-stop operator to ensure priority for 

adult career and training services will 

be given to recipients of public 

assistance, other low-income 

individuals, and individuals who are 

basic skills deficient consistent with 

WIOA 134(c)(3)(E) and § 680.600. 

(c) The local plan must include any 

additional information required by the 

Governor. 

(d) The local plan should identify the 

portions that the Governor has 

designated as appropriate for common 

response in the regional plan where 

there is a shared regional responsibility, 

as permitted by § 679.540(b). 

(e) Comments submitted during the 

public comment period that represent 

disagreement with the plan must be 

submitted with the local plan. 

§ 679.570 What are the requirements for 

approval of a local plan? 

(a) Consistent with the requirements 

at § 679.520 the Governor must review 

completed plans (including a 

modification to the plan). Such plans 

will be considered approved 90 days 

after submission unless the Governor 

determines in writing that: 

(1) There are deficiencies in 

workforce investment activities that 

have been identified through audits and 

the local area has not made acceptable 

progress in implementing plans to 

address deficiencies; or 

(2) The plan does not comply with 

applicable provisions of WIOA and the 

WIOA regulations, including the 

required consultations and public 

comment provisions, and the 

nondiscrimination requirements of 29 

CFR part 37. 

(3) The plan does not align with the 

State Plan, including with regard to the 

alignment of the core programs to 

support the strategy identified in the 

State Plan in accordance with WIOA 

sec. 102(b)(1)(E) and 20 CFR 676.105. 

(b) In cases where the State is a single 

local area: 

(1) The State must incorporate the 

local plan into the State’s Unified or 

Combined State Plan and submit it to 

the Department of Labor in accordance 

with the procedures described in 20 

CFR 676.105. 

(2) The Secretary of Labor performs 

the roles assigned to the Governor as 

they relate to local planning activities. 

(3) The Secretary of Labor will issue 

planning guidance for such States. 

§ 679.580 When must the local plan be 

modified? 

(a) Consistent with the requirements 

at § 679.530, the Governor must 

establish procedures governing the 

modification of local plans. 

(b) At the end of the first 2-year 

period of the 4-year local plan, each 

Local Board, in partnership with the 

appropriate chief elected officials, must 

review the local plan and prepare and 

submit modifications to the local plan to 

reflect changes: 

(1) In labor market and economic 

conditions; and 

(2) Other factors affecting the 

implementation of the local plan, 

including but not limited to: 

(i) Significant changes in local 

economic conditions, 

(ii) Changes in the financing available 

to support WIOA title I and partnerprovided WIOA services; 

(iii) Changes to the Local Board 

structure; and 

(iv) The need to revise strategies to 

meet local performance goals. 

Subpart E—Waivers/WorkFlex 

(Workforce Flexibility Plan) 

§ 679.600 What is the purpose of the 

General Statutory and Regulatory Waiver 

Authority in the Workforce Innovation and 

Opportunity Act? 

(a) The purpose of the general 

statutory and regulatory waiver 

authority provided at sec. 189(i)(3) of 

the WIOA is to provide flexibility to 

States and local areas and enhance their 

ability to improve the statewide 

workforce investment system to achieve 

the goals and purposes of WIOA. 

(b) A waiver may be requested to 

address impediments to the 

implementation of a Unified or 

Combined State Plan, including the 

continuous improvement strategy, 

consistent with the purposes of title I of 

WIOA as identified in § 675.100. 

§ 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? 

(a) The Secretary may waive for a 

State, or local area in a State, any of the 

statutory or regulatory requirements of 

subtitles A, B and E of title I of WIOA, 

except for requirements relating to: 

(1) Wage and labor standards; 

(2) Non-displacement protections; 

(3) Worker rights; 

(4) Participation and protection of 

workers and participants; 

(5) Grievance procedures and judicial 

review; 

(6) Nondiscrimination; 

(7) Allocation of funds to local areas; 

(8) Eligibility of providers or 

participants; 

(9) The establishment and functions 

of local areas and Local Boards; 

(10) Procedures for review and 

approval of State and Local plans; 

(11) The funding of infrastructure 

costs for one-stop centers; and 

(12) Other requirements relating to the 

basic purposes of title I of WIOA 

described in § 675.100 of this chapter. 

(b) The Secretary may waive for a 

State, or local area in a State, any of the 

statutory or regulatory requirements of 

secs. 8 through 10 of the Wagner-Peyser 

Act (29 U.S.C. 49g–49i) except for 

requirements relating to: 

(1) The provision of services to 

unemployment insurance claimants and 

veterans; and 

(2) Universal access to the basic labor 

exchange services without cost to job 

seekers. 

§ 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? 

(a) The Secretary will issue guidelines 

under which the States may request 

general waivers of WIOA and WagnerPeyser requirements. 

(b) A Governor may request a general 

waiver in consultation with appropriate 

chief elected officials: 

(1) By submitting a waiver plan which 

may accompany the State’s WIOA 4- 

year Unified or Combined State Plan or 

2-year modification; or 

(2) After a State’s WIOA Plan is 

approved, by separately submitting a 

waiver plan. 

(c) A Governor’s waiver request may 

seek waivers for the entire State or for 

one or more local areas within the State. 

(d) A Governor requesting a general 

waiver must submit to the Secretary a 

plan to improve the statewide workforce 

investment system that: 

(1) Identifies the statutory or 

regulatory requirements for which a 

waiver is requested and the goals that 

the State or local area, as appropriate, 

intends to achieve as a result of the 

waiver and how those goals relate to the 

Unified or Combined State Plan; 

(2) Describes the actions that the State 

or local area, as appropriate, has 


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undertaken to remove State or local 

statutory or regulatory barriers; 

(3) Describes the goals of the waiver 

and the expected programmatic 

outcomes if the request is granted; 

(4) Describes how the waiver will 

align with the Department’s policy 

priorities, such as: 

(i) Supporting employer engagement; 

(ii) Connecting education and training 

strategies; 

(iii) Supporting work-based learning; 

(iv) Improving job and career results, 

and 

(v) Other priorities as articulated in 

forthcoming guidance. 

(5) Describes the individuals affected 

by the waiver, including how the waiver 

will impact services for disadvantaged 

populations or individuals with 

multiple barriers to employment; and 

(6) Describes the processes used to: 

(i) Monitor the progress in 

implementing the waiver; 

(ii) Provide notice to any Local Board 

affected by the waiver; 

(iii) Provide any Local Board affected 

by the waiver an opportunity to 

comment on the request; 

(iv) Ensure meaningful public 

comment, including comment by 

business and organized labor, on the 

waiver; and 

(v) Collect and report information 

about waiver outcomes in the State’s 

WIOA Annual Report. 

(7) The Secretary may require that 

States provide the most recent data 

available about the outcomes of the 

existing waiver in cases where the State 

seeks renewal of a previously approved 

waiver. 

(e) The Secretary will issue a decision 

on a waiver request within 90 days after 

the receipt of the original waiver 

request. 

(f) The Secretary will approve a 

waiver request if and only to the extent 

that: 

(1) The Secretary determines 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; 

(2) The Secretary determines that the 

waiver plan meets all of the 

requirements of WIOA sec. 189(i)(3) and 

§§ 679.600 through 679.620; and 

(3) The State has executed a 

memorandum of understanding (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. 

(g) A waiver may be approved for as 

long as the Secretary determines 

appropriate, but for not longer than the 

duration of the State’s existing Unified 

or Combined State Plan. 

(h) The Secretary may revoke a waiver 

granted under this section if the 

Secretary determines that the State has 

failed to meet the agreed upon 

outcomes, measures, failed to comply 

with the terms and conditions in the 

MOU described in paragraph (f) of this 

section or any other document 

establishing the terms and conditions of 

the waiver, or if the waiver no longer 

meets the requirements of §§ 679.600 

through 679.620. 

§ 679.630 Under what conditions may the 

Governor submit a Workforce Flexibility 

Plan? 

(a) A State may submit to the 

Secretary, and the Secretary may 

approve, a workforce flexibility 

(workflex) plan under which the State is 

authorized to waive, in accordance with 

the plan: 

(1) Any of the statutory or regulatory 

requirements under title I of WIOA 

applicable to local areas, if the local area 

requests the waiver in a waiver 

application, except for: 

(i) Requirements relating to the basic 

purposes of title I of WIOA described in 

§ 675.100 of this chapter; 

(ii) Wage and labor standards; 

(iii) Grievance procedures and 

judicial review; 

(iv) Nondiscrimination; 

(v) Eligibility of participants; 

(vi) Allocation of funds to local areas; 

(vii) Establishment and functions of 

local areas and Local Boards; 

(viii) Procedures for review and 

approval of local plans; and 

(ix) Worker rights, participation, and 

protection. 

(2) Any of the statutory or regulatory 

requirements applicable to the State 

under secs. 8 through 10 of the WagnerPeyser Act (29 U.S.C. 49g–49i), except 

for requirements relating to: 

(i) The provision of services to 

unemployment insurance claimants and 

veterans; and 

(ii) Universal access to basic labor 

exchange services without cost to job 

seekers. 

(3) Any of the statutory or regulatory 

requirements applicable under the 

Older Americans Act of 1965 (OAA) (42 

U.S.C. 3001 et seq.), to State agencies on 

aging with respect to activities carried 

out using funds allotted under OAA sec. 

506(b) (42 U.S.C. 3056d(b)), except for 

requirements relating to: 

(i) The basic purposes of OAA; 

(ii) Wage and labor standards; 

(iii) Eligibility of participants in the 

activities; and 

(iv) Standards for grant agreements. 

(b) A workforce flexibility plan 

submitted under paragraph (a) of this 

section must include descriptions of: 

(1) The process by which local areas 

in the State may submit and obtain State 

approval of applications for waivers of 

requirements under title I of WIOA; 

(2) A description of the criteria the 

State will use to approve local area 

waiver requests and how such requests 

support implementation of the goals 

identified State Plan; 

(3) The statutory and regulatory 

requirements of title I of WIOA that are 

likely to be waived by the State under 

the workforce flexibility plan; 

(4) The statutory and regulatory 

requirements of secs. 8 through 10 of the 

Wagner-Peyser Act that are proposed for 

waiver, if any; 

(5) The statutory and regulatory 

requirements of the Older Americans 

Act of 1965 that are proposed for 

waiver, if any; 

(6) The outcomes to be achieved by 

the waivers described in paragraphs 

(b)(1) to (b)(5) of this section including, 

where appropriate, revisions to adjusted 

levels of performance included in the 

State or local plan under title I of WIOA, 

and a description of the data or other 

information the State will use to track 

and assess outcomes; and 

(7) The measures to be taken to ensure 

appropriate accountability for Federal 

funds in connection with the waivers. 

(c) A State’s workforce flexibility plan 

may accompany the State’s Unified or 

Combined State Plan, 2-year 

modification, or may be submitted 

separately as a modification to that plan. 

(d) The Secretary may approve a 

workforce flexibility plan consistent 

with the period of approval of the 

State’s Unified or Combined State Plan, 

and not for more than 5 years. 

(e) Before submitting a workforce 

flexibility plan to the Secretary for 

approval, the State must provide 

adequate notice and a reasonable 

opportunity for comment on the 

proposed waiver requests under the 

workforce flexibility plan to all 

interested parties and to the general 

public. 

(f) The Secretary will issue guidelines 

under which States may request 

designation as a work-flex State. These 

guidelines may require a State to 

implement an evaluation of the impact 

of work-flex in the State. 

§ 679.640 What limitations apply to the 

State’s Workforce Flexibility Plan authority 

under the Workforce Innovation and 

Opportunity Act? 

(a)(1) Under work-flex waiver 

authority a State must not waive the 

WIOA, Wagner-Peyser or Older 


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Americans Act requirements which are 

excepted from the work-flex waiver 

authority and described in § 679.630(a). 

(2) Requests to waive statutory and 

regulatory requirements of title I of 

WIOA applicable at the State level may 

not be granted under work-flex waiver 

authority granted to a State. Such 

requests may only be granted by the 

Secretary under the general waiver 

authority described at §§ 679.610 

through 679.620. 

(b) As required in § 679.630(b)(6), 

States must address the outcomes to 

result from work-flex waivers as part of 

its workforce flexibility plan. The 

Secretary may terminate a State’s workflex designation if the State fails to meet 

agreed-upon outcomes or other terms 

and conditions contained in its 

workforce flexibility plan. 

■ 7. Add part 680 to read as follows: 

PART 680—ADULT AND DISLOCATED 

WORKER ACTIVITIES UNDER TITLE I 

OF THE WORKFORCE INNOVATION 

AND OPPORTUNITY ACT 

Subpart A—Delivery of Adult and 

Dislocated Worker Activities Under Title I of 

the Workforce Innovation and Opportunity 

Act 

Sec. 

680.100 What is the role of the adult and 

dislocated worker programs in the onestop delivery system? 

680.110 When must adults and dislocated 

workers be registered and considered a 

participant? 

680.120 What are the eligibility criteria for 

career services for adults in the adult and 

dislocated worker programs? 

680.130 What are the eligibility criteria for 

career services for dislocated workers in 

the adult and dislocated worker 

programs? 

680.140 What Workforce Innovation and 

Opportunity Act title I adult and 

dislocated worker services are Local 

Boards required and permitted to 

provide? 

680.150 What career services must be 

provided to adults and dislocated 

workers? 

680.160 How are career services delivered? 

680.170 What is an internship or work 

experience for adults and dislocated 

workers? 

680.180 What is the individual employment 

plan? 

Subpart B—Training Services 

680.200 What are training services for 

adults and dislocated workers? 

680.210 Who may receive training 

services? 

680.220 Are there particular career services 

an individual must receive before 

receiving training services under 

Workforce Innovation and Opportunity 

Act? 

680.230 What are the requirements for 

coordination of Workforce Innovation 

and Opportunity Act training funds and 

other grant assistance? 

Subpart C—Individual Training Accounts 

680.300 How are training services 

provided? 

680.310 Can the duration and amount of 

Individual Training Accounts be 

limited? 

680.320 Under what circumstances may 

mechanisms other than Individual 

Training Accounts be used to provide 

training services? 

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? 

680.340 What are the requirements for 

consumer choice? 

Subpart D—Eligible Training Providers 

680.400 What is the purpose of this 

subpart? 

680.410 What entities are eligible providers 

of training services? 

680.420 What is a ‘‘program of training 

services’’? 

680.430 Who is responsible for managing 

the eligible provider process? 

680.440 What are the transition procedures 

for Workforce Investment Act-eligible 

providers to become eligible under the 

Workforce Innovation and Opportunity 

Act? 

680.450 What is the initial eligibility 

procedure for new providers? 

680.460 What is the application procedure 

for continued eligibility? 

680.470 What is the procedure for 

registered apprenticeship programs that 

seek to be included in a State’s eligible 

training provider list? 

680.480 May an eligible training provider 

lose its eligibility? 

680.490 What kind of performance and cost 

information must eligible training 

providers provide for each program of 

training? 

680.500 How is the State list of eligible 

training providers disseminated? 

680.510 In what ways can a Local Board 

supplement the information available 

from the State list? 

680.520 May individuals choose training 

providers located outside of the local 

area? 

680.530 What requirements apply to 

providers of on-the-job-training, 

customized training, incumbent worker 

training, and other training exceptions? 

Subpart E—Priority and Special 

Populations 

680.600 What priority must be given to lowincome adults and public assistance 

recipients and individuals who are basic 

skills deficient served with adult funds 

under title I? 

680.610 Does the statutory priority for use 

of adult funds also apply to dislocated 

worker funds? 

680.620 How does the Temporary 

Assistance for Needy Families program 

relate to the one-stop delivery system? 

680.630 How does a displaced homemaker 

qualify for services under title I? 

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 low-income 

adult? 

680.650 Do veterans receive priority of 

service under the Workforce Innovation 

and Opportunity Act? 

680.660 Are separating military service 

members eligible for dislocated worker 

activities under the Workforce 

Innovation and Opportunity Act? 

Subpart F—Work-Based Training 

680.700 What are the requirements for onthe-job training? 

680.710 What are the requirements for onthe-job training contracts for employed 

workers? 

680.720 What conditions govern on-the-job 

training payments to employers? 

680.730 Under what conditions may a 

Governor or Local Board raise the on-thejob training reimbursement rate up to 75 

percent of the wage rate? 

680.740 How can on-the-job training funds 

be used to support placing participants 

into a registered apprenticeship 

program? 

680.750 Can Individual Training Account 

and on-the-job training funds be 

combined to support placing participants 

into a registered apprenticeship 

program? 

680.760 What is customized training? 

680.770 What are the requirements for 

customized training for employed 

workers? 

680.780 Who is an ‘‘incumbent worker’’ for 

purposes of statewide and local 

employment and training activities? 

680.790 What is incumbent worker 

training? 

680.800 What funds may be used for 

incumbent worker training? 

680.810 What criteria must be taken into 

account for an employer to be eligible to 

receive local incumbent worker funds? 

680.820 Are there cost sharing requirements 

for local area incumbent worker training? 

680.830 What is a transitional job? 

680.840 What funds may be used for 

transitional jobs? 

680.850 May funds provided to employers 

for work-based training be used to assist, 

promote, or deter union organizing? 

Subpart G—Supportive Services 

680.900 What are supportive services for 

adults and dislocated workers? 

680.910 When may supportive services be 

provided to participants? 

680.920 Are there limits on the amounts or 

duration of funds for supportive 

services? 

680.930 What are needs-related payments? 

680.940 What are the eligibility 

requirements for adults to receive needsrelated payments? 

680.950 What are the eligibility 

requirements for dislocated workers to 

receive needs-related payments? 


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680.960 May needs-related payments be 

paid while a participant is waiting to 

start training classes? 

680.970 How is the level of needs-related 

payments determined? 

Authority: Secs. 122, 134, 189, 503, Pub. 

L. 113–128, 128 Stat. 1425 (Jul. 22, 2014). 

Subpart A—Delivery of Adult and 

Dislocated Worker Activities Under 

Title I of the Workforce Innovation and 

Opportunity Act 

§ 680.100 What is the role of the adult and 

dislocated worker programs in the one-stop 

delivery system? 

(a) The one-stop system is the basic 

delivery system for adult and dislocated 

worker services. Through this system, 

adults and dislocated workers can 

access a continuum of services. The 

services are classified as career and 

training services. 

(b) The chief elected official or his/her 

designee(s), as the local grant 

recipient(s) for the adult and dislocated 

worker programs, is a required one-stop 

partner and is subject to the provisions 

relating to such partners described in 

part 678 of this chapter. Consistent with 

those provisions: 

(1) Career services for adults and 

dislocated workers must be made 

available in at least one comprehensive 

one-stop center in each local workforce 

investment area. Services may also be 

available elsewhere, either at affiliated 

sites or at specialized centers. For 

example, specialized centers may be 

established to serve workers being 

dislocated from a particular employer or 

industry, or to serve residents of public 

housing. 

(2) Through the one-stop system, 

adults and dislocated workers needing 

training are provided Individual 

Training Accounts (ITAs) and access to 

lists of eligible providers and programs 

of training. These lists contain quality 

consumer information, including cost 

and performance information for each of 

the providers’ programs, so that 

participants can make informed choices 

on where to use their ITAs. (ITAs are 

more fully discussed in subpart C of this 

part.) 

§ 680.110 When must adults and 

dislocated workers be registered and 

considered a participant? 

(a) Registration is the process for 

collecting information to support a 

determination of eligibility. This 

information may be collected through 

methods that include electronic data 

transfer, personal interview, or an 

individual’s application. Participation 

occurs after the registration process of 

collecting information to support an 

eligibility determination and begins 

when the individual receives a staffassisted WIOA service, which does not 

include self-service or informational 

activities. 

(b) Adults and dislocated workers 

who receive services funded under title 

I other than self-service or informational 

activities must be registered and must 

be a participant. 

(c) Employment Opportunity data 

must be collected on every individual 

who is interested in being considered 

for WIOA title I financially assisted aid, 

benefits, services, or training by a 

recipient, and who has signified that 

interest by submitting personal 

information in response to a request 

from the grant recipient or designated 

service provider. 

§ 680.120 What are the eligibility criteria 

for career services for adults in the adult 

and dislocated worker programs? 

To be eligible to receive career 

services as an adult in the adult and 

dislocated worker programs, an 

individual must be 18 years of age or 

older. To be eligible for any dislocated 

worker programs, an eligible adult must 

meet the criteria of § 680.130. Eligibility 

criteria for training services are found at 

§ 680.210. 

§ 680.130 What are the eligibility criteria 

for career services for dislocated workers in 

the adult and dislocated worker programs? 

(a) To be eligible to receive career 

services as a dislocated worker in the 

adult and dislocated worker programs, 

an individual must meet the definition 

of ‘‘dislocated worker’’ at WIOA sec. 

3(15). Eligibility criteria for training 

services are found at § 680.210. 

(b) Governors and Local Boards may 

establish policies and procedures for 

one-stop operators to use in determining 

an individual’s eligibility as a dislocated 

worker, consistent with the definition at 

WIOA sec. 3(15). These policies and 

procedures may address such 

conditions as: 

(1) What constitutes a ‘‘general 

announcement’’ of plant closing under 

WIOA sec. 3(15)(B)(ii) or (iii); and 

(2) What constitutes ‘‘unemployed as 

a result of general economic conditions 

in the community in which the 

individual resides or because of natural 

disasters’’ for determining the eligibility 

of self-employed individuals, including 

family members and farm workers or 

ranch hands, under WIOA sec. 3(15)(C). 

§ 680.140 What Workforce Innovation and 

Opportunity Act title I adult and dislocated 

worker services are Local Boards required 

and permitted to provide? 

(a) WIOA title I formula funds 

allocated to local areas for adults and 

dislocated workers must be used to 

provide career and training services 

through the one-stop delivery system. 

Local Boards determine the most 

appropriate mix of these services, but 

both types must be available for eligible 

adults and dislocated workers. Different 

eligibility criteria apply for each type of 

services. See §§ 680.120, 680.130, and 

680.210. 

(b) WIOA title I funds may also be 

used to provide the additional services 

described in WIOA sec. 134(d), 

including: 

(1) Job seeker services: 

(i) Customer support to enable 

individuals with barriers to employment 

(including individuals with disabilities) 

and veterans, to navigate among 

multiple services and activities (WIOA 

sec. 134(d)(1)(A)(iv)); 

(ii) Training programs for displaced 

homemakers and for individuals 

training for nontraditional occupations 

(as defined in WIOA sec. 3(37) as 

occupations or fields of work in which 

individuals of one gender comprise less 

than 25 percent of the individuals so 

employed), in conjunction with 

programs operated in the local area 

(WIOA sec. 134(d)(1)(A)(viii)); 

(iii) Work support activities for lowwage workers, in coordination with onestop partners, which will provide 

opportunities for these workers to retain 

or enhance employment. These 

activities may include any activities 

available under the WIOA adult and 

dislocated worker programs in 

coordination with activities and 

resources available through partner 

programs. These activities may be 

provided in a manner that enhances the 

worker’s ability to participate, for 

example by providing them at 

nontraditional hours or providing onsite child care (WIOA sec. 134(d)(1)(B)); 

(iv) Supportive services, including 

needs-related payments, as described in 

subpart G of this part (WIOA secs. 

134(d)(2) and (3)); and 

(v) Providing transitional jobs, as 

described in § 680.830, to individuals 

with barriers to employment who are 

chronically unemployed or have an 

inconsistent work history (WIOA sec. 

134(d)(5)). 

(2) Employer services: 

(i) Customized screening and referral 

of qualified participants in training 

services to employers (WIOA sec. 

134(d)(1)(A)(i)); 

(ii) Customized employment-related 

services to employers, employer 

associations, or other such organization 

on a fee-for-service basis that are in 

addition to labor exchange services 

available to employers under the 

Wagner-Peyser Act (WIOA sec. 

134(d)(1)(A)(ii)); 


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(iii) Activities to provide business 

services and strategies that meet the 

workforce investment needs of area 

employers, as determined by the Local 

Board and consistent with the local plan 

(see § 678.435 and WIOA sec. 

134(d)(1)(A)(ix)); and 

(3) Coordination activities: 

(i) Employment and training activities 

in coordination with child support 

enforcement activities, as well as child 

support services and assistance 

activities, of the State and local agencies 

carrying out part D of title IV of the 

Social Security Act (42 U.S.C. 651 et 

seq.) (WIOA secs. 134(d)(1)(A)(vi)(I)– 

(II)); 

(ii) Employment and training 

activities in coordination with 

cooperative extension programs carried 

out by the Department of Agriculture 

(WIOA sec. 134(d)(1)(A)(vi)(III)); 

(iii) Employment and training 

activities in coordination with activities 

to facilitate remote access to services 

provided through a one-stop delivery 

system, including facilitating access 

through the use of technology (WIOA 

sec. 134(d)(1)(A)(vi)(IV)); 

(iv) Improving coordination between 

workforce investment activities and 

economic development activities carried 

out within the local area involved, and 

to promote entrepreneurial skills 

training and microenterprise services 

(WIOA sec. 134(d)(1)(A)(vii)(I)); 

(v) Improving services and linkages 

between the local workforce investment 

system (including the local one-stop 

delivery system) and employers, 

including small employers, in the local 

area (WIOA sec. 134(d)(1)(A)(vii)(II)); 

(vi) Strengthening linkages between 

the one-stop delivery system and the 

unemployment insurance programs 

(WIOA sec. 134(d)(1)(A)(vii)(III)); and 

(vii) Improving coordination between 

employment and training activities and 

programs carried out in the local area 

for individuals with disabilities, 

including programs carried out by State 

agencies relating to intellectual 

disabilities and developmental 

disabilities, activities carried out by 

Statewide Independent Living Councils 

established under sec. 705 of the 

Rehabilitation Act of 1973 (29 U.S.C. 

796d), programs funded under part B of 

chapter 1 of title VII of such Act (29 

U.S.C. 796e et seq.), and activities 

carried out by centers for independent 

living, as defined in sec. 702 of such Act 

(29 U.S.C. 796a) (WIOA sec. 

134(d)(1)(A)(xi)). 

(4) Implementing a pay-forperformance contract strategy for 

training services in accordance with 

§§ 683.500 through 683.530 for which 

up to 10 percent of the Local Board’s 

total adult and dislocated worker funds 

may be used (WIOA sec. 

134(d)(1)(A)(iii)). 

(5) Technical assistance for one-stop 

operators, partners, and eligible training 

providers on the provision of service to 

individuals with disabilities in local 

areas, including staff training and 

development, provision of outreach and 

intake assessments, service delivery, 

service coordination across providers 

and programs, and development of 

performance accountability measures 

(WIOA sec. 134(d)(1)(A)(v)). 

(6) Activities to adjust the economic 

self-sufficiency standards referred to in 

WIOA sec. 134(a)(3)(A)(xii) for local 

factors or activities to adopt, calculate or 

commission for approval, economic selfsufficiency standards for the local areas 

that specify the income needs of 

families, by family size, the number and 

ages of children in the family, and subState geographical considerations 

(WIOA sec. 134(d)(1)(A)(x)). 

(7) Implementing promising service to 

workers and businesses, which may 

include support for education, training, 

skill upgrading, and statewide 

networking for employees to become 

workplace learning advisors and 

maintain proficiency in carrying out the 

activities associated with such advising 

(WIOA sec. 134(d)(1)(A)(xii)). 

(8) Incumbent worker training 

programs, as described in subpart F of 

this part (WIOA sec. 134(d)(4)). 

§ 680.150 What career services must be 

provided to adults and dislocated workers? 

(a) At a minimum, all of the career 

services described in WIOA secs. 

134(c)(2)(A)(i)–(xi) and § 678.430(a) 

must be provided in each local area 

through the one-stop delivery system. 

(b) Individualized career services 

described in WIOA sec. 134(c)(2)(A)(xii) 

and § 678.430(b) must be made 

available, if determined appropriate in 

order for an individual to obtain or 

retain employment. 

(c) Follow-up services, as described in 

WIOA sec. 134(c)(2)(A)(xiii) and 

§ 678.430(c), must be made available, as 

appropriate, for a minimum of 12 

months following the first day of 

employment, to registered participants 

who are placed in unsubsidized 

employment. 

§ 680.160 How are career services 

delivered? 

Career services must be provided 

through the one-stop delivery system. 

Career services may be provided 

directly by the one-stop operator or 

through contracts with service providers 

that are approved by the Local Board. 

The Local Board may only be a provider 

of career services when approved by the 

chief elected official and the Governor 

in accordance with the requirements of 

WIOA sec. 107(g)(2) and § 679.410. 

§ 680.170 What is an internship or work 

experience for adults and dislocated 

workers? 

For the purposes of WIOA sec. 

134(c)(2)(A)(xii)(VII), internships or 

work experiences are a planned, 

structured learning experience that 

takes place in a workplace for a limited 

period of time. Work experience may be 

paid or unpaid, as appropriate. An 

internship or work experience may be 

arranged within the private for profit 

sector, the non-profit sector, or the 

public sector. Labor standards apply in 

any work experience setting where an 

employee/employer relationship, as 

defined by the Fair Labor Standards Act, 

exists. 

§ 680.180 What is the individual 

employment plan? 

The individual employment plan is 

an individualized career service, under 

WIOA sec. 134(c)(2)(A)(xii)(II), that is 

jointly developed by the participant and 

case manager when determined 

appropriate by the one-stop operator or 

one-stop partner. The plan is an ongoing 

strategy to identify employment goals, 

achievement objectives, and an 

appropriate combination of services for 

the participant to achieve the 

employment goals. 

Subpart B—Training Services 

§ 680.200 What are training services for 

adults and dislocated workers? 

Training services are listed in WIOA 

sec. 134(c)(3)(D). The list in the Act is 

not all-inclusive and additional training 

services may be provided. 

§ 680.210 Who may receive training 

services? 

Under WIOA sec. 134(c)(3)(A) 

training services may be made available 

to employed and unemployed adults 

and dislocated workers who: 

(a) A one-stop operator or one-stop 

partner determines, after an interview, 

evaluation, or assessment, and career 

planning, are: 

(1) Unlikely or unable to obtain or 

retain employment that leads to 

economic self-sufficiency or wages 

comparable to or higher than wages 

from previous employment through 

career services; 

(2) In need of training services to 

obtain or retain employment leading to 

economic self-sufficiency or wages 

comparable to or higher than wages 

from previous employment; and 


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(3) Have the skills and qualifications 

to participate successfully in training 

services; 

(b) Have selected a program of 

training services that is directly linked 

to the employment opportunities in the 

local area or the planning region, or in 

another area to which the individuals 

are willing to commute or relocate; 

(c) Are unable to obtain grant 

assistance from other sources to pay the 

costs of such training, including such 

sources as State-funded training funds, 

Trade Adjustment Assistance, and 

Federal Pell Grants established under 

title IV of the Higher Education Act of 

1965, or require WIOA assistance in 

addition to other sources of grant 

assistance, including Federal Pell Grants 

(provisions relating to fund 

coordination are found at § 680.230 and 

WIOA sec. 134(c)(3)(B)); and 

(d) If training services are provided 

through the adult funding stream, are 

determined eligible in accordance with 

the State and local priority system, if 

any, in effect for adults under WIOA 

sec. 134(c)(3)(E) and § 680.600. 

§ 680.220 Are there particular career 

services an individual must receive before 

receiving training services under Workforce 

Innovation and Opportunity Act? 

(a) Yes, an individual must at a 

minimum receive either an interview, 

evaluation, or assessment, and career 

planning or any other method through 

which the one-stop operator or partner 

can obtain enough information to make 

an eligibility determination to be 

determined eligible for training services 

see WIOA sec. 134(c)(3)(A)(i). Where 

appropriate, a recent interview, 

evaluation, or assessment, may be used 

for the assessment purpose; see WIOA 

sec. 134(c)(3)(A)(ii); and 

(b) The case file must contain a 

determination of need for training 

services under § 680.210 as determined 

through the interview, evaluation, or 

assessment, and career planning 

informed by local labor market 

information and training provider 

performance information, or through 

any other career service received. There 

is no requirement that career services be 

provided as a condition to receipt of 

training services; however, if career 

services are not provided before 

training, the Local Board must 

document the circumstances that 

justified its determination to provide 

training without first providing the 

services described in paragraph (a) of 

this section. 

(c) There is no Federally-required 

minimum time period for participation 

in career services before receiving 

training services. 

§ 680.230 What are the requirements for 

coordination of Workforce Innovation and 

Opportunity Act training funds and other 

grant assistance? 

(a) WIOA funding for training is 

limited to participants who: 

(1) Are unable to obtain grant 

assistance from other sources to pay the 

costs of their training; or 

(2) Require assistance beyond that 

available under grant assistance from 

other sources to pay the costs of such 

training. Program operators and training 

providers must coordinate funds 

available to pay for training as described 

in paragraphs (b) and (c) of this section. 

In making the determination under this 

paragraph, one-stop operators should 

take into account the full cost of 

participating in training services, 

including the cost of support services 

and other appropriate costs. 

(b) One-stop operators must 

coordinate training funds available and 

make funding arrangements with onestop partners and other entities to apply 

the provisions of paragraph (a) of this 

section. One-stop operators must 

consider the availability of other sources 

of grants to pay for training costs such 

as Temporary Assistance for Needy 

Families (TANF), State-funded training 

funds, and Federal Pell Grants, so that 

WIOA funds supplement other sources 

of training grants. 

(c) A WIOA participant may enroll in 

WIOA-funded training while his/her 

application for a Pell Grant is pending 

as long as the one-stop operator has 

made arrangements with the training 

provider and the WIOA participant 

regarding allocation of the Pell Grant, if 

it is subsequently awarded. In that case, 

the training provider must reimburse 

the one-stop operator the WIOA funds 

used to underwrite the training for the 

amount the Pell Grant covers. 

Reimbursement is not required from the 

portion of Pell Grant assistance 

disbursed to the WIOA participant for 

education-related expenses. (WIOA sec. 

134(c)(3)(B)) 

Subpart C—Individual Training 

Accounts 

§ 680.300 How are training services 

provided? 

Training service for eligible 

individuals are typically provided by 

training providers who receive payment 

for their services through an Individual 

Training Account (ITA). The ITA is a 

payment agreement established on 

behalf of a participant with a training 

provider. WIOA title I adult and 

dislocated workers purchase training 

services from eligible providers they 

select in consultation with the case 

manager, which includes discussion of 

quality and performance information on 

the available training providers. 

Payments from ITAs may be made in a 

variety of ways, including the electronic 

transfer of funds through financial 

institutions, vouchers, or other 

appropriate methods. Payments may 

also be made incrementally, e.g., 

through payment of a portion of the 

costs at different points in the training 

course. (WIOA sec. 134(c)(4)(G)) Under 

limited conditions, as provided in 

§ 680.320 and WIOA sec. 134(d)(3)(G), a 

Local Board may contract for these 

services, rather than using an ITA for 

this purpose. In some limited 

circumstances, the Local Board may 

itself provide the training services, but 

only if it obtains a waiver from the 

Governor for this purpose, and the Local 

Board meets the other requirements of 

§ 679.410 and WIOA sec. 107(g)(1). 

§ 680.310 Can the duration and amount of 

Individual Training Accounts be limited? 

(a) Yes, the State or Local Board may 

impose limits on ITAs, such as 

limitations on the dollar amount and/or 

duration. 

(b) Limits to ITAs may be established 

in different ways: 

(1) There may be a limit for an 

individual participant that is based on 

the needs identified in the individual 

employment plan, such as the 

participant’s occupational choice or goal 

and the level of training needed to 

succeed in that goal; or 

(2) There may be a policy decision by 

the State Board or Local Board to 

establish a range of amounts and/or a 

maximum amount applicable to all 

ITAs. 

(c) Limitations established by State or 

Local Board policies must be described 

in the State or Local Plan, respectively, 

but must not be implemented in a 

manner that undermines the Act’s 

requirement that training services are 

provided in a manner that maximizes 

customer choice in the selection of an 

eligible training provider. ITA 

limitations may provide for exceptions 

to the limitations in individual cases. 

(d) An individual may select training 

that costs more than the maximum 

amount available for ITAs under a State 

or local policy when other sources of 

funds are available to supplement the 

ITA. These other sources may include: 

Pell Grants; scholarships; severance pay; 

and other sources. 


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§ 680.320 Under what circumstances may 

mechanisms other than Individual Training 

Accounts be used to provide training 

services? 

(a) Contracts for services may be used 

instead of ITAs only when one or more 

of the following five exceptions apply: 

(1) When the services provided are 

on-the-job training (OJT), customized 

training, incumbent worker training or 

transitional jobs; 

(2) When the Local Board determines 

that there are an insufficient number of 

eligible providers in the local area to 

accomplish the purpose of a system of 

ITAs. The Local Plan must describe the 

process to be used in selecting the 

providers under a contract for services. 

This process must include a public 

comment period for interested providers 

of at least 30 days; 

(3) When the Local Board determines 

that there is a training services program 

of demonstrated effectiveness offered in 

the area by a community-based 

organization (CBO) or another private 

organization to serve individuals with 

barriers to employment, as described in 

paragraph (b) of this section. The Local 

Board must develop criteria to be used 

in determining demonstrated 

effectiveness, particularly as it applies 

to the individuals with barriers to 

employment to be served. The criteria 

may include: 

(i) Financial stability of the 

organization; 

(ii) Demonstrated performance in the 

delivery of services to hard to serve 

participant populations through such 

means as program completion rate; 

attainment of the skills, certificates or 

degrees the program is designed to 

provide; placement after training in 

unsubsidized employment; and 

retention in employment; and 

(iii) How the specific program relates 

to the workforce investment needs 

identified in the local plan. 

(4) When the Local Board determines 

that it would be most appropriate to 

contract with an institution of higher 

education or other eligible provider of 

training services will facilitate the 

training of multiple individuals in indemand industry sectors or occupations, 

provided that the contract does not limit 

consumer choice. 

(5) When the Local Board is 

considering entering into a pay-forperformance contract, the Local Board 

ensures that the contract is consistent 

with § 683.510. 

(b) Under paragraph (a)(3) of this 

section, individuals with barriers to 

employment include those individuals 

in one or more of the following 

categories, as prescribed by WIOA sec. 

3(24): 

(1) Displaced homemakers; 

(2) Low-income individuals; 

(3) Indians, Alaska Natives, and 

Native Hawaiians; 

(4) Individuals with disabilities; 

(5) Older individuals, i.e., those aged 

55 or over; 

(6) Ex-offenders; 

(7) Homeless individuals; 

(8) Youth who are in or have aged out 

of the foster care system; 

(9) Individuals who are English 

language learners, individuals who have 

low levels of literacy, and individuals 

facing substantial cultural barriers; 

(10) Eligible migrant and seasonal 

farmworkers, defined in WIOA sec. 

167(i); 

(11) Individuals within 2 years of 

exhausting lifetime eligibility under 

TANF (part A of title IV of the Social 

Security Act); 

(12) Single-parents (including single 

pregnant women); 

(13) Long-term unemployed 

individuals; 

(14) Other groups determined by the 

Governor to have barriers to 

employment. 

§ 680.330 How can Individual Training 

Accounts, supportive services, and needsrelated 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? 

Registered apprenticeships 

automatically qualify to be a on a State’s 

eligible training provider list (ETPL) as 

described in § 680.470. ITAs can be 

used to support participants in: 

(a) Pre-apprenticeship training, as 

defined in § 681.480; 

(b) Training tuition for a registered 

apprenticeship program to the training 

provider; 

(c) Supportive services may be 

provided as described in §§ 680.900 and 

680.910; and 

(d) Needs-related payments may be 

provided as described in §§ 680.930, 

680.940, 680.950, 680.960, and 680.970; 

(e) Work-based training options may 

also be used to support participants in 

registered apprenticeship programs (see 

§§ 680.740 and 680.750). 

§ 680.340 What are the requirements for 

consumer choice? 

(a) Training services, whether under 

ITA’s or under contract, must be 

provided in a manner that maximizes 

informed consumer choice in selecting 

an eligible provider. 

(b) Each Local Board, through the onestop center, must make available to 

customers the State list of eligible 

providers required in WIOA sec. 122(e). 

The list includes a description of the 

programs through which the providers 

may offer the training services, the 

information identifying eligible 

providers of on-the-job training and 

customized training required under 

WIOA sec. 122(h) (where applicable), 

and the performance and cost 

information about eligible providers of 

training services described in WIOA 

secs. 122(d) and 122(h). 

(c) An individual who has been 

determined eligible for training services 

under § 680.210 may select a provider 

described in paragraph (b) of this 

section after consultation with a career 

planner. Unless the program has 

exhausted training funds for the 

program year, the operator must refer 

the individual to the selected provider, 

and establish an ITA for the individual 

to pay for training. For purposes of this 

paragraph, a referral may be carried out 

by providing a voucher or certificate to 

the individual to obtain the training. 

(d) The cost of referral of an 

individual with an ITA to a training 

provider is paid by the applicable adult 

or dislocated worker program under title 

I of WIOA. 

(e) Each Local Board, through the onestop center, may coordinate funding for 

ITAs with funding from other Federal, 

State, local, or private job training 

programs or sources to assist the 

individual in obtaining training 

services. 

(f) Consistent with paragraph (a) of 

this section, priority consideration must 

be given to programs that lead to 

recognized post-secondary credentials 

that are aligned with in-demand 

industry sectors or occupations in the 

local area. 

Subpart D—Eligible Training Providers 

§ 680.400 What is the purpose of this 

subpart? 

(a) This subpart describes the process 

for determining eligible training 

providers for WIOA title I–B adult and 

dislocated worker training participants 

and for publicly disseminating the list 

of these providers with relevant 

information about their programs. 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. 

(b) The State eligible training provider 

list 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. 


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The State list is also a means for 

ensuring informed customer choice for 

individuals eligible for training. In 

administering the eligible training 

provider process, States and local areas 

must work to ensure that qualified 

providers offering a wide variety of jobdriven training programs are available. 

The State list is made publicly available 

online through Web sites and searchable 

databases as well as any other means the 

State uses to disseminate information to 

consumers. The list must be 

accompanied by relevant performance 

and cost information and must be 

presented in a way that is easily 

understood, in order to maximize 

informed consumer choice and serve all 

significant population groups, and must 

also be available in an electronic format. 

The State eligible training provider 

performance reports, as required under 

WIOA sec. 116(d)(4), are addressed 

separately in § 677.230. 

§ 680.410 What entities are eligible 

providers of training services? 

(a) Eligible providers of training 

services are entities that are eligible to 

receive WIOA title I–B funds, according 

to criteria and procedures established by 

the Governor in accordance with WIOA 

sec. 122(b) for adult and dislocated 

worker participants who enroll in 

training services. Potential providers 

may include: 

(1) Institutions of higher education 

that provide a program which leads to 

a recognized post-secondary credential; 

(2) Entities that carry out programs 

registered under the National 

Apprenticeship Act (29 U.S.C. 50 et 

seq.); 

(3) Other public or private providers 

of a program of training services, which 

may include joint labor-management 

organizations and eligible providers of 

adult education and literacy activities 

under title II if such activities are 

provided in combination with 

occupational skills training; and 

(4) Local Boards, if they meet the 

conditions of WIOA sec. 107(g)(1). 

(b) In order to provide training 

services, a provider must meet the 

requirements of this part and WIOA sec. 

122. 

(1) The requirements of this part 

apply to the use of WIOA title I–B adult 

and dislocated worker funds to provide 

training: 

(i) To individuals using individual 

training accounts to access training 

through the eligible training provider 

list; and 

(ii) To individuals for training 

provided through the exceptions to 

individual training accounts described 

at §§ 680.320 and 680.530. Training 

services under WIOA title I–B may be 

provided through a contract for services 

rather than Individual Training 

Accounts under conditions identified in 

WIOA sec. 134(c)(3)(G). These 

exceptions include: on-the-job training, 

customized training, incumbent worker 

training or transitional employment; 

instances where the Local Board 

determines there are insufficient 

number 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. 

(2) The requirements of this part 

apply to all entities providing training 

to adult and dislocated workers, with 

specific exceptions for entities that carry 

out registered apprenticeship programs, 

as described in § 680.470. 

§ 680.420 What is a ‘‘program of training 

services’’? 

A program of training services, as 

referred to in § 680.410(a), is one or 

more courses or classes, or a structured 

regimen that leads to: 

(a) A recognized post-secondary 

credential, secondary school diploma or 

its equivalent, 

(b) Employment, or 

(c) Measurable skill gains toward such 

a credential or employment. 

§ 680.430 Who is responsible for 

managing the eligible provider process? 

(a) The Governor, in consultation with 

the State Board, establishes the criteria, 

information requirements and 

procedures, including procedures 

identifying the respective roles of the 

State and local areas, governing the 

eligibility of providers of training 

services to receive funds for adult and 

dislocated worker training activities as 

described under WIOA sec. 133(b). 

(b) The Governor may designate a 

State agency (or appropriate State 

entity) to assist in carrying out the 

process and procedures for determining 

the eligibility of training providers. The 

Governor or such agency (or appropriate 

State entity) is responsible for: 

(1) Ensuring the development and 

maintenance of the State list of eligible 

providers and programs, as described is 

§§ 680.450, 680.460, and 680.490; 

(2) Ensuring that programs meet 

eligibility criteria and performance 

levels established by the State, 

including verifying the accuracy of the 

information; 

(3) Removing programs that do not 

meet State-established program criteria 

or performance levels, as described in 

§ 680.480(c); 

(4) Taking appropriate enforcement 

actions against providers that 

intentionally provide inaccurate 

information, or that substantially violate 

the requirements of WIOA, as described 

in § 680.480(a) and (b) (WIOA secs. 

122(f)(1)(A) and (B)); and 

(5) Disseminating the State list, 

accompanied by performance and cost 

information relating to each provider, to 

the public and the Local Boards 

throughout the State, as further 

described in § 680.500. 

(c) The Local Board must: 

(1) Carry out the procedures assigned 

to the Local Board by the State, such as 

determining the initial eligibility of 

entities providing a program of training 

services, renewing the eligibility of 

providers, and considering the possible 

termination of an eligible provider due 

to the provider’s submission of 

inaccurate eligibility and performance 

information or the provider’s substantial 

violation of WIOA requirements; 

(2) Work with the State to ensure 

there are sufficient numbers and types 

of providers of training services, 

including eligible providers with 

expertise in assisting individuals with 

disabilities and eligible providers with 

expertise in assisting adults in need of 

adult education and literacy activities 

described under WIOA sec. 

107(d)(10)(E), serving the local area; and 

(3) Ensure the dissemination and 

appropriate use of the State list through 

the local one-stop system. 

(d) The Local Board may: 

(1) Make recommendations to the 

Governor on the procedure used in 

determining eligibility of providers; 

(2) Require additional criteria and 

information from local providers as 

criteria to become or remain eligible; 

and 

(3) Set higher levels of performance 

than those required by the State as 

criteria for local providers to become or 

remain eligible to provide services in 

that particular local area. 

§ 680.440 What are the transition 

procedures for Workforce Investment Acteligible providers to become eligible under 

the Workforce Innovation and Opportunity 

Act? 

(a) The Governor may establish a 

transition procedure under which 


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providers eligible to provide training 

services under WIA may continue to be 

eligible to provide such services until 

December 31, 2015 or such earlier date 

as the Governor determines to be 

appropriate. 

(b) After this transition period, which 

may extend no later than December 31, 

2015, the eligibility of these providers 

will be determined under the 

application procedure for continued 

eligibility established by the Governor 

as described in § 680.460. 

(c) Providers that were previously 

eligible under WIA are not subject to the 

initial eligibility procedures described 

under § 680.450. 

§ 680.450 What is the initial eligibility 

procedure for new providers? 

(a) All providers that have not 

previously been an eligible provider of 

training services under WIOA sec. 122 

or WIA sec. 122, except for registered 

apprenticeship programs, must submit 

required information to be considered 

for initial eligibility in accordance with 

the Governor’s procedures. 

(b) Apprenticeship programs 

registered under the National 

Apprenticeship Act (NAA) are exempt 

from initial eligibility procedures. 

Registered apprenticeship programs 

must be included and maintained on the 

list of eligible providers of training 

services as long as the corresponding 

program remains registered, as 

described at WIOA sec. 122(a)(3). 

Procedures for registered apprenticeship 

programs to be added and maintained 

on the list are described in § 680.470. 

(c) In establishing the State 

requirements described in paragraph (d) 

of this section, the Governor must, in 

consultation with the State Board, 

develop a procedure for determining the 

eligibility of training providers. This 

procedure, which must be described in 

the State Plan, must be developed after: 

(1) Soliciting and taking into 

consideration recommendations from 

Local Boards and providers of training 

services within the State; 

(2) Providing an opportunity for 

interested members of the public, 

including representatives of business 

and labor organizations, to submit 

comments on the procedure; and 

(3) Designating a specific time period 

for soliciting and considering the 

recommendations of Local Boards and 

providers, and for providing an 

opportunity for public comment. 

(d) For institutions of higher 

education that provide a program that 

leads to a recognized post-secondary 

credential and for other public or 

private providers of programs of training 

services, including joint labormanagement organizations, and 

providers of adult education and 

literacy activities, the Governor must 

establish criteria and State requirements 

for providers seeking initial eligibility. 

(e) The Governor must require 

providers seeking initial eligibility to 

provide verifiable program specific 

performance information. At a 

minimum, these criteria must require 

applicant providers to: 

(1) Describe each program of training 

services to be offered; 

(2) Provide information addressing a 

factor related to the indicators of 

performance, as described in WIOA 

secs. 116(b)(2)(A)(i)(I)–(IV) and 

§ 680.460(g)(1) through (4) which 

include unsubsidized employment 

during the second quarter after exit, 

unsubsidized employment during the 

fourth quarter after exit, median 

earnings and credentials attainment; 

(3) Describe whether the provider is 

in a partnership with a business; 

(4) Provide other information the 

Governor may require in order to 

demonstrate high quality training 

services, including a program of training 

services that leads to a recognized postsecondary credential; and 

(5) Provide information that addresses 

alignment of the training services with 

in-demand industry sectors and 

occupations, to the extent possible. 

(f) In establishing the initial eligibility 

procedures and criteria, the Governor 

may establish minimum standards, 

based on the performance information 

described in paragraph (e) of this 

section. 

(g) Under WIOA sec. 122(b)(4)(B), 

providers receive initial eligibility for 

only 1 fiscal year for a particular 

program. 

(h) After the initial eligibility expires, 

these initially-eligible providers are 

subject to the Governor’s application 

procedures for continued eligibility, 

described at § 680.460, in order to 

remain eligible. 

§ 680.460 What is the application 

procedure for continued eligibility? 

(a) The Governor must establish an 

application procedure for training 

providers to maintain their continued 

eligibility. The application procedure 

must take into account the provider’s 

prior eligibility status. 

(1) Training providers that were 

previously eligible under WIA, as of 

July 21, 2014, will be subject to the 

application procedure for continued 

eligibility after the close of the 

Governor’s transition period for 

implementation, described in § 680.440. 

(2) Training providers that were not 

previously eligible under WIA and have 

been determined to be initially-eligible 

under WIOA, under the procedures 

described at § 680.450, will be subject to 

the application procedure for continued 

eligibility after their initial eligibility 

expires. 

(b) The Governor must develop this 

procedure after: 

(1) Soliciting and taking into 

consideration recommendations from 

Local Boards and providers of training 

services within the State; 

(2) Providing an opportunity for 

interested members of the public, 

including representatives of business 

and labor organizations, to submit 

comments on such procedure; and 

(3) Designating a specific time period 

for soliciting and considering the 

recommendations of Local Boards and 

providers, and for providing an 

opportunity for public comment. 

(c) Apprenticeship programs 

registered under the National 

Apprenticeship Act (NAA) must be 

included and maintained on the list of 

eligible providers of training services for 

as long as the corresponding program 

remains registered. The Governor’s 

procedure must include a mechanism 

for registered apprenticeship programs 

to indicate interest in being included on 

the list, as described in § 680.470. 

(d) The application procedure must 

describe the roles of the State and local 

areas in receiving and reviewing 

provider applications and in making 

eligibility determinations. 

(e) The application procedure must be 

described in the State Plan. 

(f) In establishing eligibility criteria, 

the Governor must take into account: 

(1) The performance of providers of 

training services on the performance 

accountability measures described in 

WIOA secs. 116(b)(2)(A)(i)(I)–(IV) and 

required by WIOA sec. 122(b)(2), which 

may include minimum performance 

standards, and other appropriate 

measures of performance outcomes for 

program participants receiving training 

under WIOA title I–B, as determined by 

the Governor. Until data from the 

conclusion of each performance 

indicator’s first data cycle is available, 

the Governor may take into account 

alternate factors related to such 

performance measure. 

(2) Ensuring access to training 

services throughout the State including 

rural areas and through the use of 

technology; 

(3) Information reported to State 

agencies on Federal and State training 

programs other than programs within 

WIOA title I–B; 

(4) The degree to which training 

programs relate to in-demand industry 

sectors and occupations in the State; 


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(5) State licensure requirements of 

training providers; 

(6) Encouraging the use of industryrecognized certificates and credentials; 

(7) The ability of providers to offer 

programs that lead to post-secondary 

credentials; 

(8) The quality of the program of 

training services including a program 

that leads to a recognized postsecondary credential; 

(9) The ability of the providers to 

provide training services to individuals 

who are employed and individuals with 

barriers to employment; 

(10) Whether the providers timely and 

accurately submitted eligible training 

provider performance reports as 

required under WIOA sec. 116(d)(4); 

and 

(11) Other factors that the Governor 

determines are appropriate in order to 

ensure: the accountability of providers; 

that one-stop centers in the State will 

meet the needs of local employers and 

participants; and, that participants will 

be given an informed choice among 

providers. 

(g) The information requirements that 

the Governor establishes under 

paragraph (f)(1) of this section must 

require training providers to submit 

appropriate, accurate and timely 

information for participants receiving 

training under WIOA title I–B. That 

information must include: 

(1) The percentage of program 

participants who are in unsubsidized 

employment during the second quarter 

after exit from the program; 

(2) The percentage of program 

participants who are in unsubsidized 

employment during the fourth quarter 

after exit from the program; 

(3) The median earnings of program 

participants who are in unsubsidized 

employment during the second quarter 

after exit from the program; 

(4) The percentage of program 

participants who obtain a recognized 

post-secondary credential, or a 

secondary school diploma or its 

recognized equivalent during 

participation in or within 1 year after 

exit from the program; 

(5) Information on recognized postsecondary credentials received by 

program participants; 

(6) Information on cost of attendance, 

including costs of tuition and fees, for 

program participants; 

(7) Information on the program 

completion rate for such participants. 

(h) The eligibility criteria must 

require that: 

(1) Providers submit performance and 

cost information as described in 

paragraph (g) of this section and in the 

Governor’s procedures for each program 

of training services for which the 

provider has been determined to be 

eligible, in a timeframe and manner 

determined by the State, but at least 

every 2 years; and 

(2) That the collection of information 

required to demonstrate compliance 

with the criteria is not unduly 

burdensome or costly to providers 

(WIOA sec. 122(b)(1)(J)(iv)). 

(i) The procedure for continued 

eligibility must also provide for the 

State to review biennially-required 

provider eligibility information to assess 

the renewal of training provider 

eligibility. Such procedures may 

establish minimum levels of training 

provider performance as criteria for 

continued eligibility. 

(j) The procedure for biennial review 

of the provider eligibility must include 

verification of the registration status of 

registered apprenticeship programs as 

described in § 680.470. 

(k) Local Boards may require higher 

levels of performance for local programs 

than the levels specified in the 

procedures established by the Governor. 

(l) The Governor may establish 

procedures and timeframes for 

providing technical assistance to 

eligible providers of training who are 

not intentionally supplying inaccurate 

information or who have not 

substantially violated any of the 

requirements under this section but are 

failing to meet the criteria and 

information requirements due to undue 

cost or burden. 

§ 680.470 What is the procedure for 

registered apprenticeship programs that 

seek to be included in a State’s eligible 

training provider list? 

(a) All registered apprenticeship 

programs that are registered with the 

U.S. Department of Labor, Office of 

Apprenticeship, or a recognized State 

apprenticeship agency are automatically 

eligible to be included in the State list 

of eligible training providers. Some 

program sponsors may not wish to be 

included on the State eligible training 

provider list. Therefore, the Governor 

must establish a mechanism for 

registered apprenticeship program 

sponsors in the State to indicate that the 

program sponsor wishes to be included 

on the State eligible training provider 

list. This mechanism should be 

developed with the assistance of the 

U.S. Department of Labor Office of 

Apprenticeship representative in the 

State or, if the State oversees the 

administration of the apprenticeship 

system, with the assistance of the 

recognized State apprenticeship agency. 

(b) Once on the State eligible training 

provider list, registered apprenticeship 

programs will remain on the list until 

they are deregistered or until the 

registered apprenticeship program 

notifies the State that it no longer wants 

to be included on the list. 

(c) Inclusion of a registered 

apprenticeship in the State eligible 

training provider list allows an 

individual 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 § 680.300. The use of 

individual training accounts and other 

WIOA title I–B funds toward 

apprenticeship training is further 

described in § 680.330. 

(d) The Governor is encouraged to 

consult with the State and Local Boards, 

ETA’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. 

§ 680.480 May an eligible training provider 

lose its eligibility? 

(a) Yes. A training provider must 

deliver results and provide accurate 

information in order to retain its status 

as an eligible training provider. 

(b) Providers determined to have 

intentionally supplied inaccurate 

information or to have substantially 

violated any provision of title I of WIOA 

or the WIOA regulations, including 29 

CFR part 37, must be removed from the 

list in accordance with the enforcement 

provisions of WIOA sec. 122(f). A 

provider whose eligibility is terminated 

under these conditions must be 

terminated for not less than 2 years and 

is liable to repay all adult and 

dislocated worker training funds it 

received during the period of 

noncompliance. 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 that meets the 

requirements of 20 CFR 683.630(b). 

(c) As a part of the biennial review of 

eligibility established by the Governor, 

the State must remove provider 

programs that fail to meet criteria 

established by the Governor to remain 

eligible, which may include failure to 

meet established minimum performance 

levels. 

(d) The Governor must establish an 

appeals procedure for providers of 

training to appeal a denial of eligibility 

under this subpart that meets the 

requirements of 20 CFR 683.630(b), 

which explains the appeals process for 


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denial or termination of eligibility of a 

provider of training services. 

(e) Where a Local Board has 

established higher minimum standards, 

according to § 680.460(k), the Local 

Board may remove a provider program 

from the eligible programs in that local 

area for failure to meet established 

criteria. The Local Board must establish 

an appeals procedure for providers of 

training to appeal a denial of eligibility 

under this subpart that meets the 

requirements of 20 CFR 683.630(b), 

which explains the appeals process for 

denial or termination of eligibility of a 

provider of training services. 

§ 680.490 What kind of performance and 

cost information must eligible training 

providers provide for each program of 

training? 

(a) In accordance with the State 

procedure and § 680.460(h), eligible 

providers of training services must 

submit, at least every 2 years, 

appropriate, timely and accurate 

performance and cost information. 

(b) Program-specific performance 

information must include: 

(1) The information described in 

WIOA sec. 122(b)(2)(A) for individuals 

participating in the programs of training 

services who are receiving assistance 

under WIOA sec. 134. This information 

includes indicators of performance as 

described in WIOA secs. 116(b)(2)(I)– 

(IV) and § 680.460(g)(1) through (4). 

(2) Information identifying the 

recognized post-secondary credentials 

received by such participants. 

(3) Program cost information, 

including tuition and fees, for WIOA 

participants in the program, and 

(4) Information on the program 

completion rate for WIOA participants. 

(c) Governors may require any 

additional performance information 

(such as the information described at 

WIOA sec. 122(b)(1)) that the Governor 

determines to be appropriate to 

determine or maintain eligibility. 

(d) Governors must establish a 

procedure by which a provider can 

demonstrate that providing additional 

information required under this section 

would be unduly burdensome or costly. 

If the Governor determines that 

providers have demonstrated such 

extraordinary costs or undue burden: 

(1) The Governor must provide access 

to cost-effective methods for the 

collection of the information; 

(2) The Governor may provide 

additional resources to assist providers 

in the collection of the information from 

funds for statewide workforce 

investment activities reserved under 

WIOA secs. 128(a) and 133(a)(1); or 

(3) The Governor may take other steps 

to assist training providers in collecting 

and supplying required information 

such as offering technical assistance. 

§ 680.500 How is the State list of eligible 

training providers disseminated? 

(a) In order to assist participants in 

choosing employment and training 

activities, the Governor or State agency 

must disseminate the State list of 

eligible training providers and 

accompanying performance and cost 

information to Local Boards in the State 

and to members of the public online 

including through Web sites and 

searchable databases and through 

whatever other means the State uses to 

disseminate information to consumers, 

including the one-stop delivery system 

and its program partners throughout the 

State. 

(b) The State list and information 

must be updated regularly and provider 

eligibility must be reviewed biennially 

according to the procedures established 

by the Governor in § 680.460(i). 

(c) In order to ensure informed 

consumer choice, the State eligible 

training provider list and accompanying 

information must be widely available to 

the public through electronic means, 

including Web sites and searchable 

databases, as well as through any other 

means the State uses to disseminate 

information to consumers. The list and 

accompanying information must be 

available through the one-stop delivery 

system and its partners including the 

State’s secondary and post-secondary 

education systems. The eligible training 

provider list should be accessible to 

individuals seeking information on 

training outcomes, as well as 

participants in employment and training 

activities funded under WIOA, 

including those under § 680.210, and 

other programs. In accordance with 

WIOA sec. 188, the State list must also 

be accessible to individuals with 

disabilities. 

(d) The State eligible training provider 

list must be accompanied by 

appropriate information to assist 

participants in choosing employment 

and training activities. Such information 

must include: 

(1) Recognized post-secondary 

credential(s) offered; 

(2) Provider information supplied to 

meet the Governor’s eligibility 

procedure as described in §§ 680.450 

and 680.460; 

(3) Performance and cost information 

as described in § 680.490; and 

(4) Additional information as the 

Governor determines appropriate. 

(e) The State list and accompanying 

information must be made available in 

a manner that does not reveal personally 

identifiable information about an 

individual participant. In addition, in 

developing the information to 

accompany the State list described in 

§ 680.490(b), disclosure of personally 

identifiable information from an 

education record must be carried out in 

accordance with the Family Educational 

Rights and Privacy Act, including the 

circumstances relating to prior written 

consent. 

§ 680.510 In what ways can a Local Board 

supplement the information available from 

the State list? 

(a) Local Boards may supplement the 

criteria and information requirements 

established by the Governor in order to 

support informed consumer choice and 

the achievement of local performance 

measures. 

(b) This additional information may 

include: 

(1) Information on programs of 

training services that are linked to 

occupations in demand in the local area; 

(2) Performance and cost information, 

including program-specific performance 

and cost information, for the local 

outlet(s) of multi-site eligible providers; 

(3) Information that shows how 

programs are responsive to local 

requirements; and 

(4) Other appropriate information 

related to the objectives of WIOA. 

§ 680.520 May individuals choose training 

providers located outside of the local area? 

Yes, individuals may choose any of 

the eligible providers and programs on 

the State list. A State may also establish 

a reciprocal agreement with other States 

to permit providers of eligible training 

programs in each State to accept 

individual training accounts provided 

by the other State. See WIOA sec. 

122(g). 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. 

§ 680.530 What requirements apply to 

providers of on-the-job-training, customized 

training, incumbent worker training, and 

other training exceptions? 

Providers of on-the-job training, 

customized training, incumbent worker 

training, internships, paid or unpaid 

work experience, or transitional 

employment are not subject to the same 

requirements as entities listed on the 

eligible training provider list. For these 

training programs, one-stop operators in 

a local area must collect such 

performance information as the 

Governor may require and determine 

whether the providers meet the 

Governor’s performance criteria. The 

Governor may require one-stop 


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operators to disseminate a list of 

providers that have met the performance 

criteria, along with the relevant 

performance information about them, 

through the one-stop delivery system. 

Providers that meet the criteria are 

considered eligible providers of training 

services. These providers are not subject 

to the other requirements of WIOA sec. 

122 or this part. 

Subpart E—Priority and Special 

Populations 

§ 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? 

(a) WIOA states, in sec. 134(c)(3)(E), 

that priority for individualized career 

services (see § 678.430(b)) and training 

services funded with title I adult funds 

must be given to recipients of public 

assistance, other low-income 

individuals, who are basic skills 

deficient (as defined in WIOA sec. 

3(5)(B)) in the local area. 

(b) States and local areas must 

establish criteria by which the one-stop 

operator will apply the priority under 

WIOA sec. 134(c)(3)(E). Such criteria 

may include the availability of other 

funds for providing employment and 

training-related services in the local 

area, the needs of the specific groups 

within the local area, and other 

appropriate factors. 

(c) The priority established under 

paragraph (b) of this section does not 

necessarily mean that these services 

may only be provided to recipients of 

public assistance, other low-income 

individuals, and individuals without 

basic work skills. The Local Board and 

the Governor may establish a process 

that also gives priority to other 

individuals eligible to receive such 

services, provided that it is consistent 

with priority of service for veterans (see 

§ 680.650). 

§ 680.610 Does the statutory priority for 

use of adult funds also apply to dislocated 

worker funds? 

No, the statutory priority applies only 

to adult funds for individualized career 

services, as described in § 680.150(b), 

and training services. Funds allocated 

for dislocated workers are not subject to 

this requirement. 

§ 680.620 How does the Temporary 

Assistance for Needy Families program 

relate to the one-stop delivery system? 

The local TANF program is a required 

partner in the one-stop delivery system. 

Part 678 describes the roles of such 

partners in the one-stop delivery system 

and it applies to the TANF program. 

TANF serves individuals who may also 

be served by the WIOA programs and, 

through appropriate linkages and 

referrals, these customers will have 

access to a broader range of services 

through the cooperation of the TANF 

program in the one-stop system. TANF 

participants, who are determined to be 

WIOA eligible, and who need 

occupational skills training may be 

referred through the one-stop system to 

receive WIOA training, when TANF 

grant and other grant funds are not 

available to the individual in 

accordance with § 680.230(a). WIOA 

participants who are also determined 

TANF eligible may be referred to the 

TANF operator for assistance. 

§ 680.630 How does a displaced 

homemaker qualify for services under title 

I? 

(a) Individuals who meet the 

definitions of a ‘‘displaced homemaker’’ 

(WIOA sec. 3(16)) qualify for career and 

training services with dislocated worker 

title I funds. 

(b) Displaced homemakers may also 

qualify for career and training services 

with adult funds under title I if the 

requirements of this part are met (see 

§§ 680.120 and 680.600). 

(c) Displaced homemakers may also 

be served in statewide employment and 

training projects conducted with reserve 

funds for innovative programs for 

displaced homemakers, as described in 

20 CFR 682.210(c). 

(d) The definition of displaced 

homemaker includes the dependent 

spouse 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 under a provision of law referred 

to in sec. 101(a)(13)(B) of title 10, 

United State Code, a permanent change 

of station, or the service-connected 

death or disability of the member. 

§ 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 low-income adult? 

Yes, even if the family of an 

individual with a disability does not 

meet the income eligibility criteria, the 

individual with a disability is to be 

considered a low-income individual if 

the individual’s own income: 

(a) Meets the income criteria 

established in WIOA sec. 3(36)(A)(vi); or 

(b) Meets the income eligibility 

criteria for payments under any Federal, 

State or local public assistance program 

(see WIOA sec. 3(36)(A)(i)). 

§ 680.650 Do veterans receive priority of 

service under the Workforce Innovation and 

Opportunity Act? 

Yes, veterans under WIOA sec. 

3(63)(A) and 38 U.S.C. 101 receive 

priority of service in all Department of 

Labor-funded training programs under 

38 U.S.C. 4215 and described in 20 CFR 

1010. A veteran must still meet each 

program’s eligibility criteria to receive 

services under the respective 

employment and training program. For 

income-based eligibility determinations, 

amounts paid while on active duty or 

paid by the Department of Veterans 

Affairs (VA) for vocational 

rehabilitation, disability payments, or 

related VA-funded programs are not to 

be considered as income in accordance 

with 38 U.S.C. 4213 and 20 CFR 

683.230. 

§ 680.660 Are separating military service 

members eligible for dislocated worker 

activities under the Workforce Innovation 

and Opportunity Act? 

If the separating service member is 

separating from the Armed Forces with 

a discharge that is anything other than 

dishonorable, the separating service 

member qualifies for dislocated worker 

activities based on the following 

criteria: 

(a) The separating service member has 

received a notice of separation, a DD– 

214 from the Department of Defense, or 

other documentation showing a 

separation or imminent separation from 

the Armed Forces to satisfy the 

termination or layoff part of the 

dislocated worker eligibility criteria in 

WIOA sec. 3(15)(A)(i); 

(b) The separating service member 

qualifies for the dislocated worker 

eligibility criteria on eligibility for or 

exhaustion of unemployment 

compensation in WIOA sec. 

3(15)(A)(ii)(I) or (II); and, 

(c) As a separating service member, 

the individual meets the dislocated 

worker eligibility criteria that the 

individual is unlikely to return to a 

previous industry or occupation in 

WIOA sec. 3(15)(A)(iii). 

Subpart F—Work-Based Training 

§ 680.700 What are the requirements for 

on-the-job training? 

(a) On-the-job training (OJT) is 

defined at WIOA sec. 3(44). OJT is 

provided under a contract with an 

employer in the public, private nonprofit, or private sector. Through the 

OJT contract, occupational training is 

provided for the WIOA participant in 

exchange for the reimbursement, 

typically up to 50 percent of the wage 

rate of the participant, for the 

extraordinary costs of providing the 


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training and supervision related to the 

training. In limited circumstances, as 

provided in WIOA sec. 134(c)(3)(h) and 

§ 680.730, the reimbursement may be up 

to 75 percent of the wage rate of the 

participant. 

(b) On-the-job training contracts 

under WIOA title I, must not be entered 

into with an employer who has received 

payments under previous contracts 

under WIOA or WIA if the employer has 

exhibited a pattern of failing to provide 

on-the-job training participants with 

continued long-term employment as 

regular employees with wages and 

employment benefits (including health 

benefits) and working conditions at the 

same level and to the same extent as 

other employees working a similar 

length of time and doing the same type 

of work. (WIOA sec. 194(4)) 

(c) An OJT contract must be limited 

to the period of time required for a 

participant to become proficient in the 

occupation for which the training is 

being provided. In determining the 

appropriate length of the contract, 

consideration should be given to 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. (WIOA sec. 3(44)(C)) 

§ 680.710 What are the requirements for 

on-the-job training contracts for employed 

workers? 

OJT contracts may be written for 

eligible employed workers when: 

(a) The employee is not earning a selfsufficient wage as determined by Local 

Board policy; 

(b) The requirements in § 680.700 are 

met; and 

(c) The OJT relates to the introduction 

of new technologies, introduction to 

new production or service procedures, 

upgrading to new jobs that require 

additional skills, workplace literacy, or 

other appropriate purposes identified by 

the Local Board. 

§ 680.720 What conditions govern on-thejob training payments to employers? 

(a) On-the-job training payments to 

employers are deemed to be 

compensation for the extraordinary 

costs associated with training 

participants and potentially lower 

productivity of the participants while in 

the OJT. 

(b) Employers may be reimbursed up 

to 50 percent of the wage rate of an OJT 

participant, and up to 75 percent using 

the criteria in § 680.730, for the 

extraordinary costs of providing the 

training and additional supervision 

related to the OJT. (WIOA secs. 3(44) 

and 134(c)(3)(H)(i)) 

(c) Employers are not required to 

document such extraordinary costs. 

§ 680.730 Under what conditions may a 

Governor or Local Board raise the on-thejob training reimbursement rate up to 75 

percent of the wage rate? 

(a) The Governor may increase the 

reimbursement rate for OJT contracts 

funded through the statewide 

employment and training activities 

described in § 682.210 up to 75 percent, 

and the Local Board may also increase 

the reimbursement rate for OJT 

contracts described in § 680.320(a)(1) up 

to 75 percent, when taking into account 

the following factors: (WIOA sec. 

134(c)(H)(ii)) 

(1) The characteristics of the 

participants taking into consideration 

whether they are ‘‘individuals with 

barriers to employment,’’ as defined in 

WIOA sec. 3(24); 

(2) The size of the employer, with an 

emphasis on small businesses; 

(3) The quality of employer-provided 

training and advancement 

opportunities, for example if the OJT 

contract is for an in-demand occupation 

and will lead to an industry-recognized 

credential; and 

(4) Other factors the Governor or 

Local Board may determine to be 

appropriate, which may include the 

number of employees participating, 

wage and benefit levels of the 

employees (both at present and after 

completion), and relation of the training 

to the competitiveness of the 

participant. 

(b) Governors or Local Boards must 

document the factors used when 

deciding to increase the wage 

reimbursement levels above 50 percent 

up to 75 percent. 

§ 680.740 How can on-the-job training 

funds be used to support placing 

participants into a registered 

apprenticeship program? 

(a) OJT contracts may be written with 

registered apprenticeship programs or 

participating employers in registered 

apprenticeship programs for the on-thejob training portion of the registered 

apprenticeship program consistent with 

§ 680.700. Depending on the length of 

the registered apprenticeship and State 

and local OJT policies, these funds may 

cover some or all of the registered 

apprenticeship training. 

(b) If the apprentice is unemployed at 

the time of participation, the OJT must 

be conducted as described in § 680.700. 

If the apprentice is employed at the time 

of participation, the OJT must be 

conducted as described in § 680.700 

§ 680.750 Can Individual Training Account 

and on-the-job training funds be combined 

to support placing participants into a 

registered apprenticeship program? 

There is no Federal prohibition on 

using both ITA and OJT funds when 

placing participants into a registered 

apprenticeship program. See § 680.330 

on using ITAs to support participants in 

registered apprenticeship. 

§ 680.760 What is customized training? 

Customized training is training: 

(a) That is designed to meet the 

special requirements of an employer 

(including a group of employers); 

(b) That is conducted with a 

commitment by the employer to employ 

an individual upon successful 

completion of the training; and 

(c) For which the employer pays for 

a significant cost of the training, as 

determined by the Local Board in 

accordance with the factors identified in 

WIOA sec. 3(14). 

§ 680.770 What are the requirements for 

customized training for employed workers? 

Customized training of an eligible 

employed individual may be provided 

for an employer or a group of employers 

when: 

(a) The employee is not earning a selfsufficient wage as determined by Local 

Board policy; 

(b) The requirements in § 680.760 are 

met; and 

(c) The customized training relates to 

the purposes described in § 680.710(c) 

or other appropriate purposes identified 

by the Local Board. 

§ 680.780 Who is an ‘‘incumbent worker’’ 

for purposes of statewide and local 

employment and training activities? 

States and local areas must establish 

policies and definitions to determine 

which workers, or groups of workers, 

are eligible for incumbent worker 

services (WIOA sec. 134(d)(4)). To 

qualify as an incumbent worker, the 

incumbent worker needs to be 

employed, meet the Fair Labor 

Standards Act requirements for an 

employer-employee relationship, and 

have an established employment history 

with the employer for 6 months or more. 

The training must satisfy the 

requirements in WIOA sec. 134(d)(4) 

and § 680.790 and increase the 

competitiveness of the employee or 

employer. An incumbent worker does 

not necessarily have to meet the 

eligibility requirements for career and 

training services for adults and 

dislocated workers under this Act. 


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§ 680.790 What is incumbent worker 

training? 

Incumbent Worker training, for 

purposes of WIOA sec. 134(d)(4)(B), is 

training: 

(a) 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. 

(b) Conducted with a commitment by 

the employer to retain or avert the 

layoffs of the incumbent worker(s) 

trained. 

§ 680.800 What funds may be used for 

incumbent worker training? 

(a) The local area may reserve up to 

20 percent of their combined total of 

adult and dislocated worker allotments 

for incumbent worker training as 

described in § 680.790 (see WIOA sec. 

134(d)(4)(A)(i)); 

(b) The State may use their statewide 

activities funds (per WIOA sec. 

134(a)(3)(A)(i)) and Rapid Response 

funds for statewide incumbent worker 

training activities (see §§ 682.210(b) and 

682.320(b)(3)). 

§ 680.810 What criteria must be taken into 

account for an employer to be eligible to 

receive local incumbent worker funds? 

The Local Board must consider under 

WIOA sec. 134(d)(4)(A)(ii): 

(a) The characteristics of the 

participants in the program; 

(b) The relationship of the training to 

the competitiveness of a participant and 

the employer; and 

(c) Other factors the Local Board 

determines appropriate, including 

number of employees trained, wages 

and benefits including post training 

increases, and the existence of other 

training opportunities provided by the 

employer. 

§ 680.820 Are there cost sharing 

requirements for local area incumbent 

worker training? 

Yes. Under WIOA secs. 134(d)(4)(C) 

and 134(d)(4)(D)(i)–(iii), employers 

participating in incumbent worker 

training are required to pay the nonFederal share of the cost of providing 

training to their incumbent workers. 

The amount of the non-Federal share 

will depend upon the limits established 

under WIOA secs. 134(d)(4)(ii)(C) and 

(D). 

§ 680.830 What is a transitional job? 

A transitional job is one that provides 

a limited work experience, that is 

subsidized in the public, private, or 

non-profit sectors for those individuals 

with barriers to employment because of 

chronic unemployment or inconsistent 

work history; these jobs are designed to 

enable an individual to establish a work 

history, demonstrate work success, and 

develop the skills that lead to 

unsubsidized employment. (WIOA sec. 

134 (d)(5)) 

§ 680.840 What funds may be used for 

transitional jobs? 

The local area may use up to 10 

percent of their combined total of adult 

and dislocated worker allotments for 

transitional jobs as described in 

§ 680.810 (see WIOA sec. 134(d)(5)). 

Transitional jobs must be combined 

with comprehensive career services (see 

§ 680.150) and supportive services (see 

§ 680.900). 

§ 680.850 May funds provided to 

employers for work-based training be used 

to assist, promote, or deter union 

organizing? 

No, funds provided to employers for 

work-based training, as described in this 

subpart, must not be used to directly or 

indirectly assist, promote or deter union 

organizing. (WIOA sec. 181(b)(7)) 

Subpart G—Supportive Services 

§ 680.900 What are supportive services for 

adults and dislocated workers? 

Supportive services for adults and 

dislocated workers are defined at WIOA 

sec. 3(59) and secs. 134(d)(2) and (3). 

They include services such as 

transportation, child care, dependent 

care, housing, and needs-related 

payments that are necessary to enable 

an individual to participate in activities 

authorized under WIOA secs. 134(c)(2) 

and (3). 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 should address procedures for 

referral to such services, including how 

such services will be funded when they 

are not otherwise available from other 

sources. The provision of accurate 

information about the availability of 

supportive services in the local area, as 

well as referral to such activities, is one 

of the career services that must be 

available to adults and dislocated 

workers through the one-stop delivery 

system. (WIOA sec. 134(c)(2)(A)(ix) and 

§ 678.430) Local Boards must ensure 

that needs-related payments are made in 

a manner consistent with §§ 680.930, 

680.940, 680.950, 680.960, and 680.970. 

§ 680.910 When may supportive services 

be provided to participants? 

(a) Supportive services may only be 

provided to individuals who are: 

(1) Participating in career or training 

services as defined in WIOA secs. 

134(c)(2) and (3); and 

(2) Unable to obtain supportive 

services through other programs 

providing such services. (WIOA sec. 

134(d)(2)(B)) 

(b) Supportive services may only be 

provided when they are necessary to 

enable individuals to participate in 

career service or training activities. (see 

WIOA sec. 134(d)(2)(A) and WIOA sec. 

3(59)) 

§ 680.920 Are there limits on the amounts 

or duration of funds for supportive 

services? 

(a) Local Boards may establish limits 

on the provision of supportive services 

or provide the one-stop operator with 

the authority to establish such limits, 

including a maximum amount of 

funding and maximum length of time 

for supportive services to be available to 

participants. 

(b) Procedures may also be 

established to allow one-stop operators 

to grant exceptions to the limits 

established under paragraph (a) of this 

section. 

§ 680.930 What are needs-related 

payments? 

Needs-related payments provide 

financial assistance to participants for 

the purpose of enabling them to 

participate in training and are a 

supportive service authorized by WIOA 

sec. 134(d)(3). Unlike other supportive 

services, in order to qualify for needsrelated payments a participant must be 

enrolled in training. 

§ 680.940 What are the eligibility 

requirements for adults to receive needsrelated payments? 

Adults must: 

(a) Be unemployed, 

(b) Not qualify for, or have ceased 

qualifying for, unemployment 

compensation; and 

(c) Be enrolled in a program of 

training services under WIOA sec. 

134(c)(3). 

§ 680.950 What are the eligibility 

requirements for dislocated workers to 

receive needs-related payments? 

To receive needs-related payments, a 

dislocated worker must: 

(a) Be unemployed, and: 

(1) Have ceased to qualify for 

unemployment compensation or trade 

readjustment allowance under TAA; 

and 

(2) Be enrolled in a program of 

training services under WIOA sec. 

134(c)(3) by the end of the 13th week 

after the most recent layoff that resulted 

in a determination of the worker’s 


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eligibility as a dislocated worker, or, if 

later, by the end of the 8th week after 

the worker is informed that a short-term 

layoff will exceed 6 months; or 

(b) Be unemployed and did not 

qualify for unemployment 

compensation or trade readjustment 

assistance under TAA and be enrolled 

in a program of training services under 

WIOA sec. 134(c)(3). 

§ 680.960 May needs-related payments be 

paid while a participant is waiting to start 

training classes? 

Yes, payments may be provided if the 

participant has been accepted in a 

training program that will begin within 

30 calendar days. The Governor may 

authorize local areas to extend the 30- 

day period to address appropriate 

circumstances. 

§ 680.970 How is the level of needs-related 

payments determined? 

(a) The payment level for adults must 

be established by the Local Board. 

(b) For dislocated workers, payments 

must not exceed the greater of either of 

the following levels: 

(1) The applicable weekly level of the 

unemployment compensation benefit, 

for participants who were eligible for 

unemployment compensation as a result 

of the qualifying dislocation; or 

(2) The poverty level for an equivalent 

period, for participants who did not 

qualify for unemployment 

compensation as a result of the 

qualifying layoff. The weekly payment 

level must be adjusted to reflect changes 

in total family income, as determined by 

Local Board policies. (WIOA sec. 

134(d)(3)(C)) 

■ 8. Add part 681 to read as follows: 

PART 681—YOUTH ACTIVITIES 

UNDER TITLE I OF THE WORKFORCE 

INNOVATION AND OPPORTUNITY ACT 

Subpart A—Standing Youth Committees 

Sec. 

681.100 What is a standing youth 

committee? 

681.110 Who is included on a standing 

youth committee? 

681.120 What does a standing youth 

committee do? 

Subpart B—Eligibility for Youth Services 

Sec. 

681.200 Who is eligible for youth services? 

681.210 Who is an ‘‘out-of-school youth’’? 

681.220 Who is an ‘‘in-school youth’’? 

681.230 What does ‘‘school’’ refer to in the 

‘‘not attending or attending any school’’ 

in the out-of-school and in-school 

definitions? 

681.240 When do local youth programs 

verify dropout status, particular for 

youth attending alternative schools? 

681.250 Who does the low-income 

eligibility requirement apply to? 

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? 

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? 

681.280 Is a youth with a disability eligible 

for youth services under the Act if their 

family income exceeds the income 

eligibility criteria? 

681.290 How does the Department define 

the ‘‘basic skills deficient’’ criterion this 

part? 

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? 

681.310 Must youth participants enroll to 

participate in the youth program? 

Subpart C—Youth Program Design, 

Elements, and Parameters 

Sec. 

681.400 What is the process used to select 

eligible youth providers? 

681.410 Does the requirement that a State 

and local area expend at least 75 percent 

of youth funds to provide services to outof-school youth apply to all youth funds? 

681.420 How must Local Boards design 

Workforce Innovation and Opportunity 

Act youth programs? 

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? 

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 

the Workforce Innovation and 

Opportunity Act adult program? 

681.450 For how long must a local 

Workforce Innovation and Opportunity 

Act youth program serve a participant? 

681.460 What services must local programs 

offer to youth participants? 

681.470 Does the Department require local 

programs to use WIOA funds for each of 

the 14 program elements? 

681.480 What is a pre-apprenticeship 

program? 

681.490 What is adult mentoring? 

681.500 What is financial literacy 

education? 

681.510 What is comprehensive guidance 

and counseling? 

681.520 What are leadership development 

opportunities? 

681.530 What are positive social and civic 

behaviors? 

681.540 What is occupational skills 

training? 

681.550 Are Individual Training Accounts 

permitted for youth participants? 

681.560 What is entrepreneurial skills 

training and how is it taught? 

681.570 What are supportive services for 

youth? 

681.580 What are follow-up services for 

youth? 

681.590 What is the work experience 

priority? 

681.600 What are work experiences? 

681.610 How will local Workforce 

Innovation and Opportunity Act youth 

programs track the work experience 

priority? 

681.620 Does the Workforce Innovation and 

Opportunity Act require Local Boards to 

offer summer employment opportunities 

in the local youth program? 

681.630 How are summer employment 

opportunities administered? 

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? 

681.650 Does the Department allow 

incentive payments for youth 

participants? 

681.660 How can parents, youth, and other 

members of the community get involved 

in the design and implementation of 

local youth programs? 

Subpart D—One-Stop Services to Youth 

Sec. 

681.700 What is the connection between 

the youth program and the one-stop 

service delivery system? 

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? 

Authority: Secs. 107, 121, 123, 129, 189, 

503, Pub. L. 113–128, 128 Stat. 1425 (Jul. 22, 

2014). 

Subpart A—Standing Youth 

Committees 

§ 681.100 What is 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, 

oversight, and other issues relating to 

the provision of services to youth. If the 

Local Board does not designate a 

standing youth committee, it retains 

responsibility for all aspects of youth 

formula programs. 

§ 681.110 Who is included on a standing 

youth committee? 

(a) If a Local Board decides to form a 

standing youth committee, the 

committee must include a member of 

the Local Board, who chairs the 

committee, members of communitybased organizations with a 

demonstrated record of success in 

serving eligible youth and other 

individuals with appropriate expertise 


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and experience who are not members of 

the Local Board (WIOA secs. 

107(b)(4)(A) and (ii)). 

(b) The committee should reflect the 

needs of the local area. The committee 

members appointed for their experience 

and expertise may bring their expertise 

to help the committee address the 

employment, training education, human 

and supportive service needs of eligible 

youth including out-of-school youth. 

Members may represent agencies such 

as education, training, health, mental 

health, housing, public assistance, and 

justice, or be representatives of 

philanthropic or economic and 

community development organizations, 

and employers. The committee may also 

include parents, participants, and 

youth. (WIOA sec. 129(c)(3)(C)) 

(c) A Local Board may designate an 

existing entity such as an effective 

youth council as the standing youth 

committee if it fulfills the requirements 

above in paragraph (a) of this section. 

§ 681.120 What does a standing youth 

committee do? 

Under the direction of the Local 

Board, a standing youth committee may: 

(a) Recommend policy direction to the 

Local Board for the design, 

development, and implementation of 

programs that benefit all youth; 

(b) Recommend the design of a 

comprehensive community workforce 

development system to ensure a full 

range of services and opportunities for 

all youth, including disconnected 

youth; 

(c) Recommend ways to leverage 

resources and coordinate services 

among schools, public programs, and 

community-based organizations serving 

youth; 

(d) Recommends ways to coordinate 

youth services and recommend eligible 

youth service providers; and 

(e) Provide on-going leadership and 

support for continuous quality 

improvement for local youth programs; 

(f) Assist with planning, operational, 

and other issues relating to the 

provision of services to youth; and 

(g) If so delegated by the Local Board 

after consultation with the CEO, oversee 

eligible youth providers, as well as other 

youth program oversight 

responsibilities. 

Subpart B—Eligibility for Youth 

Services 

§ 681.200 Who is eligible for youth 

services? 

Both in-school youth (ISY) and out-ofschool youth (OSY) are eligible for 

youth services. (WIOA sec. 3(18)) 

§ 681.210 Who is an ‘‘out-of-school 

youth’’? 

An out-of-school youth (OSY) is an 

individual who is: 

(a) Not attending any school (as 

defined under State law); 

(b) Not younger than 16 or older than 

age 24 at time of enrollment. Because 

age eligibility is based on age at 

enrollment, participants may continue 

to receive services beyond the age of 24 

once they are enrolled in the program; 

and 

(c) One or more of the following: 

(1) A school dropout; 

(2) A youth who is within the age of 

compulsory school attendance, but has 

not attended school for at least the most 

recent complete school year calendar 

quarter. School year calendar quarter is 

based on how a local school district 

defines its school year quarters; 

(3) A recipient of a secondary school 

diploma or its recognized equivalent 

who is a low-income individual and is 

either basic skills deficient or an English 

language learner; 

(4) An individual who is subject to 

the juvenile or adult justice system; 

(5) A homeless individual (as defined 

in sec. 41403(6) of the Violence Against 

Women Act of 1994 (42 U.S.C. 14043e– 

2(6))), a homeless child or youth (as 

defined in sec. 725(2) of the McKinneyVento Homeless Assistance Act (42 

U.S.C. 11434a(2))), a runaway, in foster 

care or has aged out of the foster care 

system, a child eligible for assistance 

under sec. 477 of the Social Security Act 

(42 U.S.C. 677), or in an out-of-home 

placement; 

(6) An individual who is pregnant or 

parenting; 

(7) An individual with a disability; 

(8) A low-income individual who 

requires additional assistance to enter or 

complete an educational program or to 

secure or hold employment. (WIOA 

secs. 3(46) and 129(a)(1)(B)) 

§ 681.220 Who is an ‘‘in-school youth’’? 

An in-school youth (ISY) is an 

individual who is: 

(a) Attending school (as defined by 

State law), including secondary and 

post-secondary school; 

(b) Not younger than age 14 or (unless 

an individual with a disability who is 

attending school under State law) older 

than age 21 at time of enrollment. 

Because age eligibility is based on age 

at enrollment, participants may 

continue to receive services beyond the 

age of 21 once they are enrolled in the 

program; 

(c) A low-income individual; and 

(d) One or more of the following: 

(1) Basic skills deficient; 

(2) An English language learner; 

(3) An offender; 

(4) A homeless individual (as defined 

in sec. 41403(6) of the Violence Against 

Women Act of 1994 (42 U.S.C. 14043e– 

2(6))), a homeless child or youth (as 

defined in sec. 725(2) of the McKinneyVento Homeless Assistance Act (42 

U.S.C. 11434a(2))), a runaway, in foster 

care or has aged out of the foster care 

system, a child eligible for assistance 

under sec. 477 of the Social Security Act 

(42 U.S.C. 677), or in an out-of-home 

placement; 

(5) An individual who is pregnant or 

parenting; 

(6) An individual with a disability; 

(7) An individual who requires 

additional assistance to enter or 

complete an educational program or to 

secure or hold employment. (WIOA 

secs. 3(27) and 129(a)(1)(C)) 

§ 681.230 What does ‘‘school’’ refer to in 

the ‘‘not attending or attending any school’’ 

in the out-of-school and in-school 

definitions? 

In general, the applicable State law for 

secondary and post-secondary 

institutions defines ‘‘school.’’ However, 

for purposes of WIOA, the Department 

does not consider providers of Adult 

Education under title II of WIOA, 

YouthBuild programs, and Job Corps 

programs to be schools. Therefore, 

WIOA youth programs may consider a 

youth to be out-of-school youth for 

purposes of WIOA youth program 

eligibility if they are attending Adult 

Education provided under title II of 

WIOA, YouthBuild, or Job Corps. 

§ 681.240 When do local youth programs 

verify dropout status, particular for youth 

attending alternative schools? 

Local WIOA youth programs must 

verify a youth’s dropout status at the 

time of WIOA youth program 

enrollment. A youth attending an 

alternative school at the time of 

enrollment is not a dropout. States must 

define ‘‘alternative school’’ in their State 

Plan. The definition should be 

consistent with their State Education 

Agency definition, if available. An 

individual who is out-of-school at the 

time of enrollment and subsequently 

placed in an alternative school or any 

school, is an out-of-school youth for the 

purposes of the 75 percent expenditure 

requirement for out-of-school youth. 

§ 681.250 Who does the low-income 

eligibility requirement apply to? 

(a) 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 assistance to enter or 

complete an educational program or to 


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secure or hold employment must be 

low-income. All other OSY meeting 

OSY eligibility under § 681.210(c)(1), (2) 

and (4) through (7) are not required to 

be low-income. (WIOA secs. 

129(a)(1)(iii)(I)–(II) and 

129(a)(1)(iii)(IV)–(VII)) 

(b) All ISY must be low-income to 

meet the ISY eligibility criteria, except 

those that fall under the low-income 

exception. 

(c) WIOA allows a low-income 

exception where five percent of all 

WIOA youth participants may be 

participants who ordinarily would be 

required to be low-income for eligibility 

purposes and who meet all other 

eligibility criteria for WIOA youth 

except the low-income criteria. A 

program must calculate the five percent 

based on the percent of all youth served 

by the program in the local area’s WIOA 

youth program in a given program year. 

(d) In addition to the criteria in the 

definition of ‘‘low-income individual’’ 

in WIOA sec. 3(36), a youth is lowincome 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. or if she or her lives 

in a high-poverty area. 

§ 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? 

A youth who lives in a high poverty 

area is automatically considered to be a 

low-income individual. A high-poverty 

area is a Census tract, a set of 

contiguous Census tracts, Indian 

Reservation, tribal land, or Native 

Alaskan Village or county that has a 

poverty rate of at least 30 percent as set 

every 5 years using American 

Community Survey 5-Year data. 

§ 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? 

Yes, WIOA sec. 3(36) defines a lowincome individual to include an 

individual who receives (or is eligible to 

receive) a free or reduced price lunch 

under the Richard B. Russell National 

School Lunch Act. 

§ 681.280 Is a youth with a disability 

eligible for youth services under the Act if 

their family income exceeds the income 

eligibility criteria? 

Yes, for an individual with a 

disability, income level for eligibility 

purposes is based on the individual’s 

own income rather than his or her 

family’s income. WIOA sec. 3(36)(A)(vi) 

states that an individual with a 

disability whose own income meets the 

low-income definition in clause (ii) 

(income that does not exceed the higher 

of the poverty line or 70 percent of the 

lower living standard income level), but 

who is a member of a family whose 

income exceeds this income 

requirement is eligible for youth 

services. 

§ 681.290 How does the Department define 

the ‘‘basic skills deficient’’ criterion in this 

part? 

(a) As defined in § 681.210(c)(3), a 

youth is ‘‘basic skills deficient’’ if they: 

(1) Have English reading, writing, or 

computing skills at or below the 8th 

grade level on a generally accepted 

standardized test; or 

(2) Are 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. (WIOA sec. 3(5)) 

(b) The State or Local Board must 

establish its policy on paragraph (a)(2) 

of this section in its respective State or 

local plan. 

(c) In assessing basic skills, local 

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 people with 

disabilities. 

§ 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? 

As defined in § 681.200(c)(8), either 

the State or the local level may establish 

definitions and eligibility 

documentation requirements for the 

‘‘requires additional assistance to 

complete an educational program, or to 

secure and hold employment’’ criterion 

of § 681.200(c)(8). In cases where the 

State Board establishes State policy on 

this criterion, the State Board must 

include the definition in the State Plan. 

In cases where the State Board does not 

establish a policy, the Local Board must 

establish a policy in their local plan if 

using this criterion. 

§ 681.310 Must youth participants enroll to 

participate in the youth program? 

(a) Yes, to participate in youth 

programs, participants must enroll in 

the WIOA youth program. 

(b) Enrollment in this case requires: 

(1) The collection of information to 

support an eligibility determination; 

and 

(2) Participation in any of the fourteen 

WIOA youth program elements. 

Subpart C—Youth Program Design, 

Elements, and Parameters 

§ 681.400 What is the process used to 

select eligible youth providers? 

(a) As provided in WIOA sec. 123, the 

Local Board must identify eligible 

providers of youth workforce 

investment activities in the local area by 

awarding grants or contracts on a 

competitive basis, except as provided 

below in paragraph (a)(3) of this section, 

based on the recommendation of the 

youth standing committee, if they 

choose to establish a standing youth 

committee and assign it that function. If 

such a committee is not established for 

the local area, this responsibility falls to 

the Local Board. 

(1) Local areas must include the 

criteria used to identify youth providers 

in the State Plan (including such quality 

criteria established by the Governor for 

a training program that leads to a 

recognized post-secondary credential) 

taking into consideration the ability of 

the provider to meet the performance 

accountability measures based on 

primary indicators of performance for 

youth programs. 

(2) Local areas must conduct a full 

and open competition to secure youth 

service providers according to the 

Federal procurement guidelines at 2 

CFR parts 200 and 2900, in addition to 

applicable State and local procurement 

laws. 

(3) Where the Local Board determines 

there is an insufficient number of 

eligible providers of youth workforce 

investment activities in the local area, 

such as a rural area, the Local Board 

may award grants or contracts on a sole 

source basis (WIOA sec. 123(b)). 

(b) The requirement in WIOA sec. 123 

that eligible providers of youth services 

be selected by awarding a grant or 

contract on a competitive basis does not 

apply to the design framework services 

when these services are more 

appropriately provided by the grant 

recipient/fiscal agent. Design framework 

services include intake, objective 

assessments and the development of 

individual service strategy, case 

management, and follow-up services. 

§ 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? 

Yes. The 75 percent requirement 

applies to both statewide youth 

activities funds and local youth funds 

with two exceptions. 

(a) Only statewide funds spent on 

direct services to youth are subject to 

the OSY expenditure requirement. 


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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. For example, 

administrative costs, monitoring, and 

technical assistance are not subject to 

OSY expenditure requirement; while 

funds spent on direct services to youth 

such as statewide demonstration 

projects, are subject to the OSY 

expenditure requirement. 

(b) For a State that receives a small 

State minimum allotment under WIOA 

sec. 127(b)(1)(C)(iv)(II) or WIOA sec. 

132(b)(1)(B)(iv)(II), the State may submit 

a request to the Secretary to decrease the 

percentage to a percentage not less than 

50 percent for a local area in the State, 

and the Secretary may approve such a 

request for that program year, if the 

State meets the following requirements: 

(1) After an analysis of the in-school 

youth and out-of-school youth 

populations in the local area, the State 

determines that the local area will be 

unable to use at least 75 percent of the 

local area WIOA youth funds to serve 

out-of-school youth due to a low 

number of out-of-school youth; and 

(2) The State submits to the Secretary, 

for the local area, a request including a 

proposed percentage decreased to not 

less than 50 percent to provide 

workforce investment activities for outof-school youth. 

(c) In the exercise of the discretion 

afforded by WIOA sec. 129(a)(4) the 

Secretary has determined that requests 

to decrease the percentage of funds 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. 

Therefore, 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. 

(d) For local area funds, the 

administrative costs of carrying out 

local workforce investment activities 

described in WIOA sec. 128(b)(4) are not 

subject to the OSY expenditure 

requirement. All other local area youth 

funds beyond the administrative costs 

are subject to the OSY expenditure 

requirement. 

§ 681.420 How must Local Boards design 

Workforce Innovation and Opportunity Act 

youth programs? 

(a) The design framework services of 

local youth programs must: 

(1) Provide for an objective 

assessment of each youth participant 

that meets the requirements of WIOA 

sec. 129(c)(1)(A), and includes a review 

of the academic and occupational skill 

levels, as well as the service needs, of 

each youth for the purpose of 

identifying appropriate services and 

career pathways for participants and 

informing the individual service 

strategy; 

(2) Develop, and update as needed, an 

individual service strategy for each 

youth participant that is directly linked 

to one or more indicators of 

performance described in WIOA sec. 

116(b)(2)(A)(ii), that identifies 

appropriate career pathways that 

include education and employment 

goals, that considers career planning 

and the results of the objective 

assessment and that prescribes 

achievement objectives and services for 

the participant; and 

(3) Provides case management of 

youth participants, including follow-up 

services. 

(b) The local plan must describe the 

design framework for youth programs in 

the local area, and how the fourteen 

program elements required in § 681.460 

are to be made available within that 

framework. 

(c) Local Boards must ensure 

appropriate links to entities that will 

foster the participation of eligible local 

area youth. Such links may include 

connections to: 

(1) Local area justice and law 

enforcement officials; 

(2) Local public housing authorities; 

(3) Local education agencies; 

(4) Local human service agencies; 

(5) WIOA title II adult education 

providers; 

(6) Local disability-serving agencies 

and providers and health and mental 

health providers; 

(7) Job Corps representatives; and 

(8) Representatives of other area youth 

initiatives, such as YouthBuild, and 

including those that serve homeless 

youth and other public and private 

youth initiatives. 

(d) Local Boards must ensure that 

WIOA youth service providers meet the 

referral requirements in WIOA sec. 

129(c)(3)(A) for all youth participants, 

including: 

(1) Providing these participants with 

information about the full array of 

applicable or appropriate services 

available through the Local Board or 

other eligible providers, or one-stop 

partners; and 

(2) Referring these participants to 

appropriate training and educational 

programs that have the capacity to serve 

them either on a sequential or 

concurrent basis. 

(e) If a youth applies for enrollment in 

a program of workforce investment 

activities and either does not meet the 

enrollment requirements for that 

program or cannot be served by that 

program, the eligible provider of that 

program must ensure that the youth is 

referred for further assessment, if 

necessary, or referred to appropriate 

programs to meet the skills and training 

needs of the youth. 

(f) In order to meet the basic skills and 

training needs of applicants who do not 

meet the eligibility requirements of a 

particular program or who cannot be 

served by the program, each youth 

provider must ensure that these youth 

are referred: 

(1) For further assessment, as 

necessary, and 

(2) To appropriate programs, in 

accordance with paragraph (d)(2) of this 

section. (WIOA sec. 129(c)(3)(B)) 

(g) Local Boards must ensure that 

parents, youth participants, and other 

members of the community with 

experience relating to youth programs 

are actively involved in both the design 

and implementation of its youth 

programs. (WIOA sec. 129(c)(3)(C)) 

(h) The objective assessment required 

under paragraph (a)(1) of this section or 

the individual service strategy required 

under paragraph (a)(2) of this section is 

not required if the program provider 

determines that it is appropriate to use 

a recent objective assessment or 

individual service strategy that was 

developed under another education or 

training program. (WIOA sec. 

129(c)(1)(A)) 

(i) The Local Board may implement a 

pay-for-performance contract strategy 

for program elements described at 

§ 681.460, for which the Local Board 

may reserve and use not more than 10 

percent of the total funds allocated to 

the local area under WIOA sec. 128(b). 

For additional rules on pay-forperformance contracts see § 683.500. 

§ 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? 

(a) Yes, individuals who meet the 

respective program eligibility 

requirements may participate in adult 

and youth programs concurrently. Such 

individuals must be eligible under the 

youth or adult eligibility criteria 

applicable to the services received. 

Local program operators may determine, 

for these individuals, the appropriate 


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level and balance of services under the 

youth and adult programs. 

(b) Local program operators must 

identify and track the funding streams 

which pay the costs of services provided 

to individuals who are participating in 

youth and adult programs concurrently, 

and ensure no duplication of services. 

(c) Individuals who meet the 

respective program eligibility 

requirements for WIOA youth title I and 

title II may participate in title I youth 

and title II concurrently. 

§ 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 the 

Workforce Innovation and Opportunity Act 

adult program? 

A local program should determine the 

appropriate program for the participant 

based on the service needs of the 

participant and if the participant is 

career-ready based on an objective 

assessment of their occupational skills, 

prior work experience, employability, 

and participants needs as required in 

WIOA sec. 129(c)(1)(A). 

§ 681.450 For how long must a local 

Workforce Innovation and Opportunity Act 

youth program serve a participant? 

Local youth programs must provide 

service to a participant for the amount 

of time necessary to ensure successful 

preparation to enter post-secondary 

education and/or unsubsidized 

employment. While there is no 

minimum or maximum time a youth can 

participate in the WIOA youth program, 

programs must link participation to the 

individual service strategy and not the 

timing of youth service provider 

contracts or program years. 

§ 681.460 What services must local 

programs offer to youth participants? 

(a) Local programs must make each of 

the following 14 services available to 

youth participants (WIOA sec. 

129(c)(2)): 

(1) Tutoring, study skills training, 

instruction and evidence-based dropout 

prevention and recovery strategies that 

lead to completion of the requirements 

for a secondary school diploma or its 

recognized equivalent (including a 

recognized certificate of attendance or 

similar document for individuals with 

disabilities) or for a recognized postsecondary credential; 

(2) Alternative secondary school 

services, or dropout recovery services, 

as appropriate; 

(3) Paid and unpaid work experiences 

that have academic and occupational 

education as a component of the work 

experience, which may include the 

following types of work experiences: 

(i) Summer employment 

opportunities and other employment 

opportunities available throughout the 

school year; 

(ii) Pre-apprenticeship programs; 

(iii) Internships and job shadowing; 

and 

(iv) On-the-job training opportunities; 

(4) Occupational skill training, which 

includes priority consideration for 

training programs that lead to 

recognized post-secondary credentials 

that align with in-demand industry 

sectors or occupations in the local area 

involved, if the Local Board determines 

that the programs meet the quality 

criteria described in WIOA sec. 123; 

(5) Education offered concurrently 

with and in the same context as 

workforce preparation activities and 

training for a specific occupation or 

occupational cluster; 

(6) Leadership development 

opportunities, including community 

service and peer-centered activities 

encouraging responsibility and other 

positive social and civic behaviors; 

(7) Supportive services, including the 

services listed in § 681.570; 

(8) Adult mentoring for a duration of 

at least 12 months, that may occur both 

during and after program participation; 

(9) Follow-up services for not less 

than 12 months after the completion of 

participation, as provided in § 681.580; 

(10) Comprehensive guidance and 

counseling, which may include drug 

and alcohol abuse counseling, as well as 

referrals to counseling, as appropriate to 

the needs of the individual youth; 

(11) Financial literacy education; 

(12) Entrepreneurial skills training; 

(13) Services that provide labor 

market and employment information 

about in-demand industry sectors or 

occupations available in the local area, 

such as career awareness, career 

counseling, and career exploration 

services; and 

(14) Activities that help youth prepare 

for and transition to post-secondary 

education and training. 

(b) Local programs have the discretion 

to determine what specific program 

services a youth participant receives, 

based on each participant’s objective 

assessment and individual service 

strategy. Local programs are not 

required to provide every program 

service to each participant. 

§ 681.470 Does the Department require 

local programs to use WIOA funds for each 

of the 14 program elements? 

No. The Department does not require 

local programs to use WIOA youth 

funds for each of the program elements. 

Local programs may leverage partner 

resources to provide some of the readily 

available program elements. However, 

the local area must ensure that if a 

program element is not funded with 

WIOA title I youth funds, the local 

program has an agreement in place with 

a partner organization to ensure that the 

program element will be offered. The 

Local Board must ensure that the 

program element is closely connected 

and coordinated with the WIOA youth 

program. 

§ 681.480 What is a pre-apprenticeship 

program? 

A pre-apprenticeship is a program or 

set of strategies designed to prepare 

individuals to enter and succeed in a 

registered apprenticeship program and 

has a documented partnership with at 

least one, if not more, registered 

apprenticeship program(s). 

§ 681.490 What is adult mentoring? 

(a) Adult mentoring for youth must: 

(1) Last at least 12 months and may 

take place both during the program and 

following exit from the program; 

(2) Be a formal relationship between 

a youth participant and an adult mentor 

that includes structured activities where 

the mentor offers guidance, support, and 

encouragement to develop the 

competence and character of the 

mentee; 

(3) Include a mentor who is an adult 

other than the assigned youth case 

manager; and 

(4) While group mentoring activities 

and mentoring through electronic means 

are allowable as part of the mentoring 

activities, at a minimum, the local youth 

program must match the youth with an 

individual mentor with whom the youth 

interacts on a face-to-face basis. 

(b) Mentoring may include workplace 

mentoring where the local program 

matches a youth participant with an 

employer or employee of a company. 

§ 681.500 What is financial literacy 

education? 

The financial literacy education 

program element includes activities 

which: 

(a) Support the ability of participants 

to create budgets, initiate checking and 

savings accounts at banks, and make 

informed financial decisions; 

(b) Support participants in learning 

how to effectively manage spending, 

credit, and debt, including student 

loans, consumer credit, and credit cards; 

(c) Teach participants about the 

significance of credit reports and credit 

scores; what their rights are regarding 

their credit and financial information; 

how to determine the accuracy of a 

credit report and how to correct 

inaccuracies; and how to improve or 

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(d) Support a participant’s ability to 

understand, evaluate, and compare 

financial products, services, and 

opportunities and to make informed 

financial decisions; 

(e) Educate participants about identity 

theft, ways to protect themselves from 

identify theft, and how to resolve cases 

of identity theft and in other ways 

understand their rights and protections 

related to personal identity and 

financial data; 

(f) Support activities that address the 

particular financial literacy needs of 

non-English speakers, including 

providing the support through the 

development and distribution of 

multilingual financial literacy and 

education materials; 

(g) Provide financial education that is 

age appropriate, timely, and provides 

opportunities to put lessons into 

practice, such as by access to safe and 

affordable financial products that enable 

money management and savings; and 

(h) Implement other approaches to 

help participants gain the knowledge, 

skills, and confidence to make informed 

financial decisions that enable them to 

attain greater financial health and 

stability by using high quality, ageappropriate, and relevant strategies and 

channels, including, where possible, 

timely and customized information, 

guidance, tools, and instruction. 

§ 681.510 What is comprehensive 

guidance and counseling? 

Comprehensive guidance and 

counseling provides individualized 

counseling to participants. This 

includes career and academic 

counseling, drug and alcohol abuse 

counseling, mental health counseling, 

and referral to partner programs, as 

appropriate. (WIOA sec. 129(c)(1)(C)(J)) 

When referring participants to necessary 

counseling that cannot be provided by 

the local youth program or its service 

providers, the local youth program must 

coordinate with the organization it 

refers to in order to ensure continuity of 

service. 

§ 681.520 What are leadership 

development opportunities? 

Leadership development 

opportunities are opportunities that 

encourage responsibility, confidence, 

employability, self-determination and 

other positive social behaviors such as: 

(a) Exposure to post-secondary 

educational possibilities; 

(b) Community and service learning 

projects; 

(c) Peer-centered activities, including 

peer mentoring and tutoring; 

(d) Organizational and team work 

training, including team leadership 

training; 

(e) Training in decision-making, 

including determining priorities and 

problem solving; 

(f) Citizenship training, including life 

skills training such as parenting and 

work behavior training; 

(g) Civic engagement activities which 

promote the quality of life in a 

community; and 

(h) Other leadership activities that 

place youth in a leadership role such as 

serving on youth leadership committees, 

such as a Standing Youth Committee. 

(WIOA sec. 129(c)(2)(F)) 

§ 681.530 What are positive social and 

civic behaviors? 

Positive social and civic behaviors are 

outcomes of leadership opportunities, 

which are incorporated by local 

programs as part of their menu of 

services. Positive social and civic 

behaviors focus on areas that may 

include the following: 

(a) Positive attitudinal development; 

(b) Self-esteem building; 

(c) Openness to work with individuals 

from diverse backgrounds; 

(d) Maintaining healthy lifestyles, 

including being alcohol- and drug-free; 

(e) Maintaining positive social 

relationships with responsible adults 

and peers, and contributing to the wellbeing of one’s community, including 

voting; 

(f) Maintaining a commitment to 

learning and academic success; 

(g) Avoiding delinquency; 

(h) Postponing parenting and 

responsible parenting, including child 

support education; 

(i) Positive job attitudes and work 

skills; and 

(j) Keeping informed in community 

affairs and current events. 

§ 681.540 What is occupational skills 

training? 

(a) The Department defines 

occupational skills training as an 

organized program of study that 

provides specific vocational skills that 

lead to proficiency in performing actual 

tasks and technical functions required 

by certain occupational fields at entry, 

intermediate, or advanced levels. Local 

areas must give priority consideration to 

training programs that lead to 

recognized post-secondary credentials 

that align with in-demand industry 

sectors or occupations in the local area. 

Such training must: 

(1) be outcome-oriented and focused 

on an occupational goal specified in the 

individual service strategy; 

(2) be of sufficient duration to impart 

the skills needed to meet the 

occupational goal; and 

(3) result in attainment of a 

recognized post-secondary credential. 

(b) The chosen occupational skills 

training must meet the quality standards 

in WIOA sec. 123. 

§ 681.550 Are Individual Training Accounts 

permitted for youth participants? 

Yes. In order to enhance individual 

participant choice in their education 

and training plans and provide 

flexibility to service providers, the 

Department allows WIOA ITAs for outof-school youth, ages 18 to 24 using 

WIOA youth funds when appropriate. 

§ 681.560 What is entrepreneurial skills 

training and how is it taught? 

Entrepreneurial skills training 

provides the basics of starting and 

operating a small business. 

(a) Such training must develop the 

skills associated with entrepreneurship. 

Such skills include, but are not limited 

to, the ability to: 

(1) Take initiative; 

(2) Creatively seek out and identify 

business opportunities; 

(3) Develop budgets and forecast 

resource needs; 

(4) Understand various options for 

acquiring capital and the trade-offs 

associated with each option; and 

(5) Communicate effectively and 

market oneself and one’s ideas. 

(b) Approaches to teaching youth 

entrepreneurial skills include, but are 

not limited to, the following: 

(1) Entrepreneurship education that 

provides an introduction to the values 

and basics of starting and running a 

business. Entrepreneurship education 

programs often guide youth through the 

development of a business plan and 

may also include simulations of 

business start-up and operation. 

(2) Enterprise development which 

provides supports and services that 

incubate and help youth develop their 

own businesses. Enterprise 

development programs go beyond 

entrepreneurship education by helping 

youth access small loans or grants that 

are needed to begin business operation 

and by providing more individualized 

attention to the development of viable 

business ideas. 

(3) Experiential programs that provide 

youth with experience in the day-to-day 

operation of a business. These programs 

may involve the development of a 

youth-run business that young people 

participating in the program work in 

and manage. Or, they may facilitate 

placement in apprentice or internship 

positions with adult entrepreneurs in 

the community. 

§ 681.570 What are supportive services for 

youth? 

Supportive services for youth, as 

defined in WIOA sec. 3(59), are services 


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that enable an individual to participate 

in WIOA activities. These services 

include, but are not limited to, the 

following: 

(a) Linkages to community services; 

(b) Assistance with transportation; 

(c) Assistance with child care and 

dependent care; 

(d) Assistance with housing; 

(e) Needs-related payments; 

(f) Assistance with educational 

testing; 

(g) Reasonable accommodations for 

youth with disabilities; 

(h) Referrals to health care; and 

(i) Assistance with uniforms or other 

appropriate work attire and workrelated tools, including such items as 

eye glasses and protective eye gear. 

§ 681.580 What are follow-up services for 

youth? 

(a) Follow-up services are critical 

services provided following a youth’s 

exit from the program to help ensure the 

youth is successful in employment and/ 

or post-secondary education and 

training. 

(b) Follow-up services for youth may 

include: 

(1) The leadership development and 

supportive service activities listed in 

§§ 681.520 and 681.570; 

(2) Regular contact with a youth 

participant’s employer, including 

assistance in addressing work-related 

problems that arise; 

(3) Assistance in securing better 

paying jobs, career pathway 

development, and further education or 

training; 

(4) Work-related peer support groups; 

(5) Adult mentoring; and/or 

(6) Services necessary to ensure the 

success of youth participants in 

employment and/or post-secondary 

education. 

(c) All youth participants must 

receive some form of follow-up services 

for a minimum duration of 12 months. 

Follow-up services may be provided 

beyond 12 months at the State or Local 

Board’s discretion. 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. However, 

follow-up services must include more 

than only a contact attempted or made 

for securing documentation in order to 

report a performance outcome. (WIOA 

sec. 129(c)(2)(I)) 

§ 681.590 What is the work experience 

priority? 

Local youth programs must expend 

not less than 20 percent of the funds 

allocated to them to provide in-school 

youth and out-of-school youth with paid 

and unpaid work experiences that fall 

under the categories listed in 

§ 681.460(a)(3) and further defined in 

§ 681.600. (WIOA sec. 129(c)(4)) 

§ 681.600 What are work experiences? 

(a) Work experiences are a planned, 

structured learning experience that 

takes place in a workplace for a limited 

period of time. Work experience may be 

paid or unpaid, as appropriate. A work 

experience may take place in the private 

for-profit sector, the non-profit sector, or 

the public sector. Labor standards apply 

in any work experience where an 

employee/employer relationship, as 

defined by the Fair Labor Standards Act 

or applicable State law, exists. Work 

experiences provide the youth 

participant with opportunities for career 

exploration and skill development. 

(b) Work experiences must include 

academic and occupational education. 

(c) The types of work experiences 

include the following categories: 

(1) Summer employment 

opportunities and other employment 

opportunities available throughout the 

school year; 

(2) Pre-apprenticeship programs; 

(3) Internships and job shadowing; 

and 

(4) On-the-job training opportunities 

as defined in WIOA sec. 3(44) and in 

§ 680.700. 

§ 681.610 How will local Workforce 

Innovation and Opportunity Act youth 

programs track the work experience 

priority? 

Local WIOA youth programs must 

track program funds spent on paid and 

unpaid work experiences, including 

wages and staff costs for the 

development and management of work 

experiences, and report such 

expenditures as part of the local WIOA 

youth financial reporting. The 

percentage of funds spent on work 

experience is calculated based on the 

total local area youth funds expended 

for work experience rather than 

calculated separately for in-school and 

out-of-school youth. Local area 

administrative costs are not subject to 

the 20 percent minimum work 

experience expenditure requirement. 

§ 681.620 Does the Workforce Innovation 

and Opportunity Act require Local Boards 

to offer summer employment opportunities 

in the local youth program? 

No, WIOA does not require Local 

Boards to offer summer youth 

employment opportunities as summer 

employment is no longer its own 

program element under WIOA. 

However, WIOA does require Local 

Boards to offer work experience 

opportunities using at least 20 percent 

of their funding, which may include 

summer employment. 

§ 681.630 How are summer employment 

opportunities administered? 

Summer employment opportunities 

are a component of the work experience 

program element. Providers 

administering the work experience 

program element must be selected by 

the Local Board by awarding a grant or 

contract on a competitive basis as 

described in WIOA sec. 123, based on 

criteria contained in the State Plan. 

However, the summer employment 

administrator does not need to select the 

employers who are providing the 

employment opportunities through a 

competitive process. 

§ 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 program element reflects the 

integrated education and training model 

and requires integrated education and 

training to occur concurrently and 

contextually with workforce preparation 

activities and workforce training. This 

program element describes how 

workforce preparations activities, basic 

academic skills, and hands-on 

occupational skills training are to be 

taught within the same time frame and 

connected to training in a specific 

occupation, occupational cluster, or 

career pathway. (WIOA sec. 

129(c)(2)(E)) 

§ 681.650 Does the Department allow 

incentive payments for youth participants? 

Yes, the Department allows incentive 

payments to youth participants for 

recognition and achievement directly 

tied to training activities and work 

experiences. The local program must 

have written policies and procedures in 

place governing the awarding of 

incentives and must ensure that such 

incentive payments are: 

(a) Tied to the goals of the specific 

program; 

(b) Outlined in writing before the 

commencement of the program that may 

provide incentive payments; 

(c) Align with the local program’s 

organizational policies; and 

(d) Accord with the requirements 

contained in 2 CFR 200. 

§ 681.660 How can parents, youth, and 

other members of the community get 

involved in the design and implementation 

of local youth programs? 

Local Boards and programs must 

provide opportunities for parents, 

participants, and other members of the 


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community with experience working 

with youth to be involved in the design 

and implementation of youth programs. 

Parents, youth participants, and other 

members of the community can get 

involved in a number of ways including 

serving on youth standing committees, 

if they exist and they are appointed by 

the Local Board. They can also get 

involved by serving as mentors, serving 

as tutors, and providing input into the 

design and implementation of other 

program design elements. Local Boards 

must also make opportunities available 

to successful participants to volunteer to 

help participants as mentors, tutors or 

in other activities. 

Subpart D—One-Stop Services to 

Youth 

§ 681.700 What is the connection between 

the youth program and the one-stop service 

delivery system? 

(a) WIOA sec. 121(b)(1)(B)(i) requires 

that the youth program function as a 

required one-stop partner and fulfill the 

roles and responsibilities of a one-stop 

partner described in WIOA sec. 

121(b)(1)(A). 

(b) In addition to the provisions of 20 

CFR part 678, connections between the 

youth program and the one-stop system 

may include those that facilitate: 

(1) The coordination and provision of 

youth activities; 

(2) Linkages to the job market and 

employers; 

(3) Access for eligible youth to the 

information and services required in 

§ 681.460; 

(4) Services for non-eligible youth 

such as basic labor exchange services, 

other self-service activities such as job 

searches, career exploration, use of 

career center resources, and referral as 

appropriate; and 

(5) Other activities described in WIOA 

secs. 129(b)–(c). 

(c) Local Boards must either collocate 

WIOA youth program staff at one-stop 

centers and/or ensure one-stop centers 

and staff are equipped to advise youth 

in order to increase youth access to 

services and connect youth to the 

program that best aligns with their 

needs. 

§ 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? 

Yes. However, Local Boards must 

ensure one-stop centers fund services 

for non-eligible youth through programs 

authorized to provide services to such 

youth. For example, one-stop centers 

may provide basic labor exchange 

services under the Wagner-Peyser Act to 

any youth. 

■ 9. Add part 682 to read as follows: 

PART 682—STATEWIDE ACTIVITIES 

UNDER TITLE I OF THE WORKFORCE 

INNOVATION AND OPPORTUNITY ACT 

Subpart A—General Description 

Sec. 

682.100 What are the statewide 

employment and training activities 

under title I of the Workforce Innovation 

and Opportunity Act? 

682.110 How are statewide employment 

and training activities funded? 

Subpart B—Required and Allowable 

Statewide Employment and Training 

Activities 

682.200 What are required statewide 

employment and training activities? 

682.210 What are allowable statewide 

employment and training activities? 

682.220 What are States’ responsibilities in 

regard to evaluations and research? 

Subpart C—Rapid Response Activities 

682.300 What is rapid response, and what 

is its purpose? 

682.310 Who is responsible for carrying out 

rapid response activities? 

682.320 What is layoff aversion, and what 

are appropriate layoff aversion strategies 

and activities? 

682.330 What rapid response activities are 

required? 

682.340 May other activities be undertaken 

as part of rapid response? 

682.350 What is meant by ‘‘provision of 

additional assistance’’ in the Workforce 

Innovation and Opportunity Act? 

682.360 What rapid response, layoff 

aversion, or other information will States 

be required to report to the Employment 

and Training Administration? 

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? 

Authority: Secs. 129, 134, 189, 503, Pub. L. 

113–128, 128 Stat. 1425 (Jul. 22, 2014). 

Subpart A—General Description 

§ 682.100 What are the statewide 

employment and training activities under 

title I of the Workforce Innovation and 

Opportunity Act? 

Statewide employment and training 

activities include those activities for 

adults and dislocated workers, as 

described in WIOA sec. 134(a), and 

statewide youth activities, as described 

in WIOA sec. 129(b). They include both 

required and allowable activities. In 

accordance with the requirements of 

this subpart, the State may develop 

policies and strategies for use of 

statewide employment and training 

funds. Descriptions of these policies and 

strategies must be included in the State 

Plan. 

§ 682.110 How are statewide employment 

and training activities funded? 

(a) Except for the statewide rapid 

response activities described in 

paragraph (c) of this section, statewide 

employment and training activities are 

supported by funds reserved by the 

Governor under WIOA sec. 128(a). 

(b) Funds reserved by the Governor 

for statewide workforce investment 

activities may be combined and used for 

any of the activities authorized in WIOA 

sec. 129(b), 134(a)(2)(B), or 134(a)(3)(A) 

(which are described in §§ 682.200 and 

682.210), regardless of whether the 

funds were allotted through the youth, 

adult, or dislocated worker funding 

streams. 

(c) Funds for statewide rapid response 

activities are reserved under WIOA sec. 

133(a)(2) and may be used to provide 

the activities authorized at WIOA sec. 

134(a)(2)(A) (which are described in 

§§ 682.310 through 682.330). (WIOA 

secs. 129(b), 133(a)(2), 134(a)(2)(A), and 

134(a)(3)(A)) 

Subpart B—Required and Allowable 

Statewide Employment and Training 

Activities 

§ 682.200 What are required statewide 

employment and training activities? 

Required statewide employment and 

training activities are: 

(a) Required rapid response activities, 

as described in § 682.310; 

(b) Disseminating by various means, 

as provided by WIOA sec. 134(a)(2)(B): 

(1) The State list of eligible providers 

of training services (including those 

providing non-traditional training 

services), for adults and dislocated 

workers and eligible providers of 

apprenticeship programs; 

(2) Information identifying eligible 

providers of on-the-job training (OJT), 

customized training, incumbent worker 

training (see § 680.780 of this chapter), 

internships, paid or unpaid work 

experience opportunities (see § 680.170 

of this chapter) and transitional jobs (see 

§ 680.830 of this chapter); 

(3) Information on effective outreach 

and partnerships with business; 

(4) Information on effective service 

delivery strategies and promising 

practices to serve workers and job 

seekers; 

(5) Performance information and 

information on the cost of attendance, 

including tuition and fees as described 

in § 680.490 of this chapter; 

(6) A list of eligible providers of youth 

activities as described in WIOA sec. 

123; and 

(7) Information of physical and 

programmatic accessibility for 

individuals with disabilities. (WIOA 

sec. 134(a)(2)(b)(v)(VI)). 


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(c) States must assure that the 

information listed in paragraphs (b)(1) 

through (b)(7) of this section is widely 

available; 

(d) Conducting evaluations (WIOA 

sec. 134(a)(2)(B)(vi)) under WIOA sec. 

116(e), consistent with the requirements 

found under § 682.220. 

(e) Providing technical assistance to 

local areas in carrying out activities 

described in the State Plan, including 

coordination and alignment of data 

systems used to carry out the 

requirements of this Act; 

(f) Assisting local areas, one-stop 

operators, one-stop partners, and 

eligible providers, including 

development of staff, including staff 

training to provide opportunities for 

individuals with barriers to employment 

to enter in-demand industry sectors or 

occupations and nontraditional 

occupations, and the development of 

exemplary program activities. (WIOA 

sec. 134(a)(2)(B)(IV)); 

(g) Assisting local areas for carrying 

out the regional planning and service 

delivery efforts required under WIOA 

sec. 106(c); 

(h) Assisting local areas by providing 

information on and support for the 

effective development, convening, and 

implementation of industry and sector 

partnerships; 

(i) Providing technical assistance to 

local areas that fail to meet local 

performance accountability measure 

described in 20 CFR 677.205 (WIOA 

secs. 129(b)(2)(E) and 134(a)(2)(B)(IV)); 

(j) Carrying out monitoring and 

oversight of activities for services to 

youth, adults, and dislocated workers 

under WIOA title I, and which may 

include a review comparing the services 

provided to male and female youth 

(WIOA sec. 129(b)(1)(E)); 

(k) Providing additional assistance to 

local areas that have a high 

concentration of eligible youth (WIOA 

sec. 129(b)(1)(F)); and 

(l) Operating a fiscal and management 

accountability information system, 

based on guidelines established by the 

Secretary (WIOA secs. 129(b)(1)((D)), 

134(a)(2)(B)(iii)). 

§ 682.210 What are allowable statewide 

employment and training activities? 

Allowable statewide employment and 

training activities include: 

(a) State administration of the adult, 

dislocated worker and youth workforce 

investment activities, consistent with 

the five percent administrative cost 

limitation at WIOA sec. 134(a)(3)(B) and 

§ 683.205(a)(1) of this chapter; 

(b) Developing and implementing 

innovative programs and strategies 

designed to meet the needs of all 

employers (including small employers) 

in the State, including the programs and 

strategies referenced in WIOA sec. 

134(a)(3)(A)(i); 

(c) Developing strategies for serving 

individuals with barriers to 

employment, and for coordinating 

programs and services among one-stop 

partners (WIOA sec. 134(a)(3)(A)(ii)); 

(d) Development or identification of 

education and training programs that 

have the characteristics referenced in 

WIOA sec. 134(a)(3)(A)(iii); 

(e) Implementing programs to increase 

the number of individuals training for 

and placed in non-traditional 

employment (WIOA sec. 

134(a)(3)(A)(iv)); 

(f) Conducting research and 

demonstrations related to meeting the 

employment and education needs of 

youth, adults and dislocated workers 

(WIOA sec. 134(a)(3)(A)(ix)); 

(g) Supporting the development of 

alternative, evidence-based programs, 

and other activities that enhance the 

choices available to eligible youth and 

which encourage youth to reenter and 

complete secondary education, enroll in 

post-secondary education and advanced 

training, progress through a career 

pathway, and enter into unsubsidized 

employment that leads to economic selfsufficiency (WIOA sec. 129(b)(2)(B); 

(h) Supporting the provision of career 

services in the one-stop delivery system 

in the State as described in § 678.430 

and WIOA secs. 129(b)(2)(C) and 

134(c)(2); 

(i) Supporting financial literacy 

activities as described in § 681.500 and 

WIOA sec. 129(b)(2)(D); 

(j) Providing incentive grants to local 

areas for performance by the local areas 

on local performance accountability 

measures (WIOA sec. 134(a)(3)(A)(xi)); 

(k) Providing technical assistance to 

Local Boards, chief elected officials, 

one-stop operators, one-stop partners, 

and eligible providers in local areas on 

the development of exemplary program 

activities and on 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)); 

(l) Providing technical assistance to 

local areas that are implementing WIOA 

Pay-for-Performance contract strategies 

and conducting evaluations of such 

strategies. Technical assistance may 

include providing assistance with data 

collections, meeting data entry 

requirements, and identifying level of 

performance (WIOA sec. 

134(a)(3)(A)(xiv)); 

(m) Carrying out activities to facilitate 

remote access to training services 

provided through the one-stop delivery 

system (WIOA sec. 134(a)(3)(A)(v)); 

(n) Activities that include: 

(1) Activities to improve coordination 

of workforce investment activities, with 

economic development activities (WIOA 

sec. 134(a)(3)(A)(viii)(I)); and 

(2) Activities to improve coordination 

of employment and training activities 

with child support services and 

activities, cooperative extension 

programs carried out by the Department 

of Agriculture, programs carried out by 

local 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 provided by public 

libraries, activities in the correction 

systems to assist ex-offenders in 

reentering the workforce and financial 

literacy activities (WIOA sec. 

134(a)(3)(A)(viii)(II)); and 

(3) Developing and disseminating 

workforce and labor market information 

(WIOA sec. 134(a)(3)(A)(viii)(III)). 

(o) Implementation of promising 

practices for workers and businesses as 

described in WIOA sec. 134(a)(3)(A)(x); 

(p) Adopting, calculating, or 

commissioning for approval an 

economic self-sufficiency standard for 

the State that specifies the income needs 

of families, by family size, the number 

and ages of children in the family, and 

sub-State geographical considerations 

(WIOA sec. 134(a)(3)(A)(xii)); 

(q) Developing and disseminating 

common intake procedures and related 

items, including registration processes, 

across core and partner programs 

(WIOA sec. 134(A)(3)(A)(xiii)); and 

(r) Coordinating activities with the 

child welfare system to facilitate 

provision of services for children and 

youth who are eligible for assistance 

under sec. 477 of the Social Security Act 

(WIOA sec. 134(a)(3)(A)(vii)). 

§ 682.220 What are States’ responsibilities 

in regard to evaluations and research? 

(a)(1) As required by § 682.200(d), 

States must use funds reserved by the 

Governor for statewide activities to 

conduct evaluations of activities under 

the WIOA title I core programs, in order 

to promote continuous improvement; 

test innovative services and strategies, 

and achieve high levels of performance 

and outcomes; 

(2) States may use the funds reserved 

by the Governor for statewide activities 

(under § 682.210(f)), to conduct research 

and demonstration projects relating to 

the education and employment needs of 

youth, adults, and dislocated worker 

programs; 


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(3) States may use funds from any 

WIOA title II–IV core program to 

conduct evaluations and other research, 

as determined through the processes 

associated with paragraph (b)(1) of this 

section; 

(b) Evaluations and research projects 

funded in whole or in part with WIOA 

title I funds must: 

(1) Be coordinated with and designed 

in conjunction with State and Local 

Boards and with State agencies 

responsible for the administration of all 

core programs; 

(2) When appropriate, include 

analysis of customer feedback and 

outcome and process measures in the 

statewide workforce development 

system; 

(3) Use designs that employ the most 

rigorous analytical and statistical 

methods that are reasonably feasible, 

such as the use of control groups; and 

(4) To the extent feasible, be 

coordinated with the evaluations 

provided for by the Secretary of Labor 

and the Secretary of Education under 

WIOA sec. 169 (regarding title I 

programs and other employment-related 

programs), WIOA sec. 242(c)(2)(D) 

(regarding Adult Education), secs. 

12(a)(5), 14, and 107 of the 

Rehabilitation Act of 1973 (29 U.S.C. 

709(a)(5), 711, 727) [applied with 

respect to programs carried out under 

title I of that Act (29 U.S.C. 720 et seq.)] 

and the investigations provided by the 

Secretary of Labor under sec. 10(b) of 

the Wagner-Peyser Act [29 U.S.C. 

49i(b)]. 

(c) States must annually prepare, 

submit to the State Board and Local 

Boards in the State, and make available 

to the public (including by electronic 

means), reports containing the results of 

the evaluations and other research 

described in paragraph (a) of this 

section. 

(d) States must cooperate, to the 

extent practicable, in evaluations and 

related research projects conducted by 

the Secretaries of Labor and Education 

or their agents under sec. 116(e)(4) of 

WIOA. Such cooperation must, at a 

minimum, meet the following 

requirements: 

(1) The timely provision of: 

(i) Data, in accordance with 

appropriate privacy protections 

established by the Secretary of Labor; 

(ii) Responses to surveys; 

(iii) Site visits; and 

(iv) Data and survey responses from 

local subgrantees and State and Local 

Boards, and assuring that subgrantees 

and boards allow timely site visits. 

(2) Encouraging other one-stop 

partners at the local level to cooperate 

in timely provision of data, survey 

responses and site visits as listed in 

paragraphs (f)(1)(a)–(c) of this section. 

(3) If a State determines that timely 

cooperation in data provision as 

described in paragraph (d)(1) of this 

section is not practicable, the Governor 

must inform the Secretary in writing 

and explain the reasons why it is not 

practicable. In such circumstances, the 

State must cooperate with the 

Department in developing a plan or 

strategy to mitigate or overcome the 

problems preventing timely provision of 

data, survey responses, and site visits. 

(e) 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. 

Subpart C—Rapid Response Activities 

§ 682.300 What is rapid response, and 

what is its purpose? 

(a) Rapid response is described in 

§§ 682.310 through 682.370, and 

encompasses the strategies and 

activities necessary to: 

(1) Plan for and respond to as quickly 

as possible following either: 

(i) An announcement of a closure or 

layoff; or, 

(ii) Mass job dislocation resulting 

from a natural or other disaster; and 

(2) Deliver services to enable 

dislocated workers to transition to new 

employment as quickly as possible. 

(b) The purpose of rapid response is 

to promote economic recovery and 

vitality by developing an ongoing, 

comprehensive approach to identifying, 

planning for, responding to layoffs and 

dislocations, and preventing or 

minimizing their impacts on workers, 

businesses, and communities. A 

successful rapid response system 

includes: 

(1) Informational and direct 

reemployment services for workers, 

including but not limited to information 

and support for filing unemployment 

insurance claims, information on the 

impacts of layoff on health coverage or 

other benefits, information on and 

referral to career services, 

reemployment-focused workshops and 

services, and training; 

(2) Delivery of solutions to address 

the needs of businesses in transition, 

provided across the business lifecycle 

(expansion and contraction), including 

comprehensive business engagement 

and layoff aversion strategies and 

activities designed to prevent or 

minimize the duration of 

unemployment; 

(3) Convening, brokering, and 

facilitating the connections, networks 

and partners to ensure the ability to 

provide assistance to dislocated workers 

and their families such as home heating 

assistance, legal aid, and financial 

advice; and 

(4) Strategic planning, data gathering 

and analysis designed to anticipate, 

prepare for, and manage economic 

change. 

§ 682.310 Who is responsible for carrying 

out rapid response activities? 

(a) Rapid response activities must be 

carried out by the State or an entity 

designated by the State, in conjunction 

with the Local Boards, chief elected 

officials, and other stakeholders, as 

provided by WIOA secs. 133(a)(2) and 

134(a)(2)(A); 

(b) States must establish and maintain 

a rapid response unit to carry out 

statewide rapid response activities and 

to oversee rapid response activities 

undertaken by a designated State entity, 

Local Board, or the chief elected 

officials for affected local areas, as 

provided under WIOA sec. 

134(a)(2)(A)(i)(I). 

§ 682.320 What is layoff aversion, and 

what are appropriate layoff aversion 

strategies and activities? 

(a) Layoff aversion consists of 

strategies and activities, including those 

provided in paragraph (b)(2) of this 

section and §§ 682.330 and 682.340, to 

prevent or minimize the duration of 

unemployment resulting from layoffs; 

(b) Layoff aversion activities may 

include: 

(1) Providing assistance to employers 

in managing reductions in force, which 

may include early identification of firms 

at risk of layoffs, assessment of the 

needs of and options for at-risk firms, 

and the delivery of services to address 

these needs, as provided by WIOA sec. 

134(d)(1)(A)(ix)(II)(cc); 

(2) Ongoing engagement, partnership, 

and relationship-building activities with 

businesses in the community, in order 

to create an environment for successful 

layoff aversion efforts and to enable the 

provision of assistance to dislocated 

workers in obtaining reemployment as 

soon as possible; 

(3) Funding feasibility studies to 

determine if a company’s operations 

may be sustained through a buyout or 

other means to avoid or minimize 

layoffs; 

(4) Developing and managing 

incumbent worker training programs or 

other worker up skilling approaches; 

(5) Connecting companies to: 

(i) Short-time compensation or other 

programs designed to prevent layoffs or 


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to quickly reemploy dislocated workers, 

available under Unemployment 

Insurance programs; 

(ii) Employer loan programs for 

employee skill upgrading; and 

(iii) Other Federal, State and local 

resources as necessary to address other 

business needs that cannot be funded 

with resources provided under this title. 

(6) Establishing linkages with 

economic development activities at the 

Federal, State and local levels, 

including Federal Department of 

Commerce programs and available State 

and local business retention and 

expansion activities; 

(7) Partnering or contracting with 

business-focused organizations to assess 

risks to companies, propose strategies to 

address those risks, implement services, 

and measure impacts of services 

delivered; 

(8) Conducting analyses of the 

suppliers of an affected company to 

assess their risks and vulnerabilities 

from a potential closing or shift in 

production of their major customer; 

(9) Engaging in proactive measures to 

identify opportunities for potential 

economic transition and training needs 

in growing industry sectors or 

expanding businesses; and 

(10) Connecting businesses and 

workers to short-term, on-the-job, or 

customized training programs and 

apprenticeships before or after layoff to 

help facilitate rapid reemployment. 

§ 682.330 What rapid response activities 

are required? 

Rapid response activities must 

include: 

(a) Layoff aversion activities as 

described in § 682.320, as applicable. 

(b) Immediate and on-site contact 

with the employer, representatives of 

the affected workers, and the local 

community, including an assessment of 

and plans to address the: 

(1) Layoff plans and schedule of the 

employer; 

(2) Background and probable 

assistance needs of the affected workers; 

(3) Reemployment prospects for 

workers; and 

(4) Available resources to meet the 

short and long-term assistance needs of 

the affected workers. 

(c) The provision of information and 

access to unemployment compensation 

benefits and programs, such as ShortTime Compensation, comprehensive 

one-stop system services, and 

employment and training activities, 

including information on the Trade 

Adjustment Assistance (TAA) program 

(19 U.S.C. 2271 et seq.), Pell Grants, the 

GI Bill, and other resources; 

(d) The delivery of other necessary 

services and resources including 

workshops and classes, use of worker 

transition centers, and job fairs, to 

support reemployment efforts for 

affected workers; 

(e) Partnership with the Local 

Board(s) and chief elected official(s) to 

ensure a coordinated response to the 

dislocation event and, as needed, obtain 

access to State or local economic 

development assistance. Such 

coordinated response may include the 

development of an application for a 

national dislocated worker grant as 

provided under WIOA secs. 101(38) and 

134(a)(2)(A) and 20 CFR part 687; 

(f) The provision of emergency 

assistance adapted to the particular 

layoff or disaster; 

(g) As appropriate, developing 

systems and processes for: 

(1) Identifying and gathering 

information for early warning of 

potential layoffs or opportunities for 

layoff aversion; 

(2) Analyzing, and acting upon, data 

and information on dislocations and 

other economic activity in the State, 

region, or local area; and 

(3) Tracking outcome and 

performance data and information 

related to the activities of the rapid 

response program. 

(h) Developing and maintaining 

partnerships with other appropriate 

Federal, State and local agencies and 

officials, employer associations, 

technical councils, other industry 

business councils, labor organizations, 

and other public and private 

organizations, as applicable, in order to: 

(1) Conduct strategic planning 

activities to develop strategies for 

addressing dislocation events and 

ensuring timely access to a broad range 

of necessary assistance; 

(2) Develop mechanisms for gathering 

and exchanging information and data 

relating to potential dislocations, 

resources available, and the 

customization of layoff aversion or rapid 

response activities, to ensure the ability 

to provide rapid response services as 

early as possible; 

(i) Delivery of services to worker 

groups for which a petition for Trade 

Adjustment Assistance has been filed; 

(j) The provision of additional 

assistance, as described in § 682.350, to 

local areas that experience disasters, 

layoffs, or other dislocation events when 

such events exceed the capacity of the 

local area to respond with existing 

resources as provided under WIOA sec. 

134(a)(2)(A)(i)(II). 

(k) Provision of guidance and 

financial assistance as appropriate, in 

establishing a labor-management 

committee if voluntarily agreed to by 

the employee’s bargaining 

representative and management. The 

committee may devise and oversee an 

implementation strategy that responds 

to the reemployment needs of the 

workers. The assistance to this 

committee may include: 

(1) The provision of training and 

technical assistance to members of the 

committee; and; 

(2) Funding the operating costs of a 

committee to enable it to provide advice 

and assistance in carrying out rapid 

response activities and in the design 

and delivery of WIOA-authorized 

services to affected workers. 

§ 682.340 May other activities be 

undertaken as part of rapid response? 

(a) Yes, in order to conduct layoff 

aversion activities, or to prepare for and 

respond to dislocation events, in 

addition to the activities required under 

§ 682.330, a State or designated entity 

may devise rapid response strategies or 

conduct activities that are intended to 

minimize the negative impacts of 

dislocation on workers, businesses, and 

communities and ensure rapid 

reemployment for workers affected by 

layoffs. 

(b) When circumstances allow, rapid 

response may provide guidance and/or 

financial assistance to establish 

community transition teams to assist the 

impacted community in organizing 

support for dislocated workers and in 

meeting the basic needs of their 

families, including heat, shelter, food, 

clothing and other necessities and 

services that are beyond the resources 

and ability of the one-stop delivery 

system to provide. 

§ 682.350 What is meant by ‘‘provision of 

additional assistance’’ in the Workforce 

Innovation and Opportunity Act? 

As stated in WIOA sec. 

134(a)(2)(A)(ii), up to 25 percent of 

dislocated worker funds may be 

reserved for rapid response activities. 

Once the State has reserved adequate 

funds for rapid response activities, such 

as those described in §§ 682.310, 

682.320, and 682.330, any of the 

remaining funds reserved may be 

provided to local areas that experience 

increases of unemployment due to 

natural disasters, layoffs or other events, 

for provision of direct career services to 

participants if there are not adequate 

local funds available to assist the 

dislocated workers. States may wish to 

establish the policies or procedures 

governing the provision of additional 

assistance as described in § 682.330. 


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§ 682.360 What rapid response, layoff 

aversion, or other information will States be 

required to report to the Employment and 

Training Administration? 

States must report information 

regarding the receipt of rapid response 

services by individuals enrolled as 

dislocated workers on the WIOA 

individual record. 

§ 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? 

WIOA permits a State to recapture 

rapid response funds, which remain 

unspent at the end of the program year 

in which they were obligated, to be used 

for allowable statewide activities, 

including prioritizing the planning for 

and delivery of activities designed to 

prevent job loss, increasing the rate of 

reemployment, building relationships 

with businesses and other stakeholders, 

building and maintaining early warning 

networks and systems, and otherwise 

supporting efforts to allow long-term 

unemployed workers to return to work. 

■ 10. Add part 683 to read as follows: 

PART 683—ADMINISTRATIVE 

PROVISIONS UNDER TITLE I OF THE 

WORKFORCE INNOVATION AND 

OPPORTUNITY ACT 

Subpart A—Funding and Closeout 

Sec. 

683.100 When do Workforce Innovation 

and Opportunity Act grant funds become 

available for obligation? 

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? 

683.110 What is the period of performance 

of Workforce Innovation and 

Opportunity Act title I and WagnerPeyser Act funds? 

683.115 What planning information must a 

State submit in order to receive a 

formula grant? 

683.120 How are Workforce Innovation and 

Opportunity Act title I formula funds 

allocated to local areas? 

683.125 What minimum funding provisions 

apply to Workforce Innovation and 

Opportunity Act adult, dislocated 

worker, and youth allocations? 

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? 

683.135 What reallotment procedures does 

the Secretary use? 

683.140 What reallocation procedures must 

the Governors use? 

683.145 What merit review and risk 

assessment does the Department conduct 

for Federal financial assistance awards 

made under the Workforce Innovation 

and Opportunity Act title I, subtitle D? 

683.150 What closeout requirements apply 

to grants funded with Workforce 

Innovation and Opportunity Act title I 

and Wagner-Peyser funds? 

Subpart B—Administrative Rules, Costs, 

and Limitations 

683.200 What general fiscal and 

administrative rules apply to the use of 

Workforce Innovation and Opportunity 

Act title I and Wagner-Peyser funds? 

683.205 What administrative cost 

limitations apply to Workforce 

Innovation and Opportunity Act title I 

grants? 

683.210 What audit requirements apply to 

the use of Workforce Innovation and 

Opportunity Act title I and WagnerPeyser funds? 

683.215 What Workforce Innovation and 

Opportunity Act title I functions and 

activities constitute the costs of 

administration subject to the 

administrative cost limitation? 

683.220 What are the internal controls 

requirements for recipients and 

subrecipients of Workforce Innovation 

and Opportunity Act title I and WagnerPeyser funds? 

683.225 What requirements relate to the 

enforcement of the Military Selective 

Service Act? 

683.230 Are there special rules that apply 

to veterans when income is a factor in 

eligibility determinations? 

683.235 May Workforce Innovation and 

Opportunity Act title I funds be spent for 

construction? 

683.240 What are the instructions for using 

real property with Federal equity? 

683.245 Are employment generating 

activities, or similar activities, allowable 

under the Workforce Innovation and 

Opportunity Act title I? 

683.250 What other activities are prohibited 

under title I of the Workforce Innovation 

and Opportunity Act? 

683.255 What are the limitations related to 

religious activities of title I of the 

Workforce Innovation and Opportunity 

Act? 

683.260 What prohibitions apply to the use 

of Workforce Innovation and 

Opportunity Act title I funds to 

encourage business relocation? 

683.265 What procedures and sanctions 

apply to violations of this part? 

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? 

683.275 What wage and labor standards 

apply to participants in activities under 

title I of the Workforce Innovation and 

Opportunity Act? 

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? 

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? 

683.290 Are there salary and bonus 

restrictions in place for the use of title 

I and Wagner-Peyser funds? 

683.295 Is earning of profit allowed under 

the Workforce Innovation and 

Opportunity Act? 

Subpart C—Reporting Requirements 

683.300 What are the reporting 

requirements for programs funded under 

the Workforce Innovation and 

Opportunity Act? 

Subpart D—Oversight and Resolution of 

Findings 

683.400 What are the Federal and State 

monitoring and oversight 

responsibilities? 

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? 

683.420 What procedures apply to the 

resolution of findings arising from 

audits, investigations, monitoring, and 

oversight reviews? 

683.430 How does the Secretary resolve 

investigative and monitoring findings? 

683.440 What is the Grant Officer 

resolution process? 

Subpart E—Pay-for-Performance Contract 

Strategies 

683.500 What is a Workforce Innovation 

and Opportunity Act Pay-forPerformance contract strategy? 

683.510 What is a Workforce Innovation 

and Opportunity Act Pay-forPerformance contract? 

683.520 What funds can be used to support 

Workforce Innovation and Opportunity 

Act Pay-for-Performance contract 

strategies? 

683.530 How long are funds used for 

Workforce Innovation and Opportunity 

Act Pay-for-Performance contract 

strategies available? 

683.540 What is the State’s role in assisting 

local areas in using Workforce 

Innovation and Opportunity Act Pay-forPerformance contract strategies? 

Subpart F—Grievance Procedures, 

Complaints, and State Appeals Processes 

683.600 What local area, State, and direct 

recipient grievance procedures must be 

established? 

683.610 What processes does the Secretary 

use to review grievances and complaints 

of title I recipients? 

683.620 How are complaints and reports of 

criminal fraud and abuse addressed 

under the Workforce Innovation and 

Opportunity Act? 

683.630 What additional appeal processes 

or systems must a State have for the 

Workforce Innovation and Opportunity 

Act program? 

683.640 What procedures apply to the 

appeals of non-designation of local 

areas? 

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? 


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Subpart G—Sanctions, Corrective Actions, 

and Waiver of Liability 

683.700 When can the Secretary impose 

sanctions and corrective actions on 

recipients and subrecipients of title I 

Workforce Innovation and Opportunity 

Act funds? 

683.710 Who is responsible for funds 

provided under title I and WagnerPeyser? 

683.720 What actions are required to 

address the failure of a local area to 

comply with the applicable uniform 

administrative provisions? 

683.730 When can the Secretary waive the 

imposition of sanctions? 

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? 

683.750 What procedure must be used for 

administering the offset/deduction 

provisions of the Workforce Innovation 

and Opportunity Act? 

Subpart H—Administrative Adjudication 

and Judicial Review 

683.800 What actions of the Department 

may be appealed to the Office of 

Administrative Law Judges? 

683.810 What rules of procedure apply to 

hearings conducted under this subpart? 

683.820 What authority does the 

Administrative Law Judge have in 

ordering relief as an outcome of an 

administrative hearing? 

683.830 When will the Administrative Law 

Judge issue a decision? 

683.840 Is there an alternative dispute 

resolution process that may be used in 

place of an Office of Administrative Law 

Judges hearing? 

683.850 Is there judicial review of a final 

order of the Secretary issued under 

WIOA? 

Authority: Secs. 102, 116, 121, 127, 128, 

132, 133, 147, 167, 169, 171, 181, 185, 189, 

195, 503, Pub. L. 113–128, 128 Stat. 1425 

(Jul. 22, 2014). 

Subpart A—Funding and Closeout 

§ 683.100 When do Workforce Innovation 

and Opportunity Act grand funds become 

available for obligation? 

(a) Title I. Except as provided in 

paragraph (b) of this section or in the 

applicable fiscal year appropriation, 

fiscal year appropriations for programs 

and activities carried out under title I 

are available for obligation on the basis 

of a program year. A program year 

begins on July 1 in the fiscal year for 

which the appropriation is made and 

ends on June 30 of the following year. 

(b) Youth funds. Fiscal year 

appropriations for a program year’s 

youth activities, authorized under 

chapter 2, subtitle B, title I of WIOA 

may be made available for obligation 

beginning on April 1 of the fiscal year 

for which the appropriation is made. 

(c) Wagner-Peyser Employment 

Service. Fiscal year appropriations for 

activities authorized under sec. 6 of the 

Wagner Peyser Act, 29 U.S.C. 49e, are 

available for obligation on the basis of 

a program year. A program year begins 

July 1 in the fiscal year for which the 

appropriation is made and ends on June 

30 of the following year. 

(d) Discretionary Grants. 

Discretionary grant funds are available 

for obligation in accordance with the 

fiscal year appropriation. 

§ 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? 

(a) Agreement. All WIOA title I and 

Wagner-Peyser funds are awarded by 

grant or cooperative agreement, as 

defined under 2 CFR 200.51 and 2 CFR 

200.24 respectively, or contract, as 

defined in 2 CFR 200.22. All grant or 

cooperative agreements are awarded by 

the Grant Officer through negotiation 

with the recipient (the non-Federal 

entity). The agreement describes the 

terms and conditions applicable to the 

award of WIOA title I and WagnerPeyser funds and will conform to the 

requirements of 2 CFR 200.210. 

Contracts are issued by the Contracting 

Officer in compliance with the Federal 

Acquisition Regulations. 

(b) Grant funds awarded to States and 

outlying areas. The Federal funds 

allotted to the States and outlying areas 

each program year in accordance with 

secs. 127(b) and 132(b) of WIOA will be 

obligated by grant agreement. 

(c) Native American programs. 

Awards of grants, contracts or 

cooperative agreements for the WIOA 

Native American program will be made 

to eligible entities on a competitive 

basis every 4 program years for a 4-year 

period, in accordance with the 

provisions of sec. 166 of WIOA. 

(d) Migrant and seasonal farmworker 

programs. Awards of grants or contracts 

for the Migrant and Seasonal 

Farmworker Program will be made to 

eligible entities on a competitive basis 

every 4 program years for a 4-year 

period, in accordance with the 

provisions of sec. 167 of WIOA. 

(e) Awards for evaluation and 

research under sec. 169 of WIOA. (1) 

Awards of grants, contracts or 

cooperative agreements will be made to 

eligible entities for programs or 

activities authorized under WIOA sec. 

169. These funds are for: 

(i) Evaluations; 

(ii) Research; 

(iii) Studies; 

(iv) Multi-State projects; and 

(v) Dislocated worker projects. 

(2) Contracts and grants under 

paragraphs (e)(1)(ii) through (iv) of this 

section in amounts that exceed $100,000 

will be awarded on a competitive basis, 

except that a noncompetitive award may 

be made in the case of a project that is 

funded jointly with other public or 

private sector entities that provide a 

substantial portion of the assistance 

under the grant or contract for the 

project. 

(3) Grants or contracts for carrying out 

projects in paragraphs (e)(1)(ii) through 

(iv) of this section may not be awarded 

on a noncompetitive basis to the same 

organization for more than 3 

consecutive years. 

(4) Entities with nationally recognized 

expertise in the methods, techniques 

and knowledge of workforce investment 

activities will be provided priority in 

awarding contracts or grants for the 

projects under paragraphs (e)(1)(ii) 

through (iv) of this section. The 

duration of such projects will be 

specified in the grant or contract 

agreement. 

(5) A peer review process will be used 

to review and evaluate projects under 

this paragraph (e) for grants that exceed 

$500,000, and to designate exemplary 

and promising programs. 

(f) Termination. Each grant, 

cooperative agreement, or contract 

terminates as indicated in the terms of 

the agreement or when the period of 

fund availability has expired. The grant 

must be closed in accordance with the 

closeout provisions at 2 CFR 200.343 

and 2 CFR 2900 as applicable. 

§ 683.110 What is the period of 

performance of Workforce Innovation and 

Opportunity Act title I and Wagner-Peyser 

Act funds? 

(a) The statutory period of availability 

for expenditure for WIOA title I grants 

will be established as the period of 

performance for such grants unless 

otherwise provided in the grant 

agreement or cooperative agreement. All 

funds should be fully expended by the 

expiration of the period of performance 

or they risk losing their availability. 

Unless otherwise authorized in a grant 

or cooperative agreement or subsequent 

modification, recipients should expend 

funds with the shortest period of 

availability first. 

(b) Grant funds expended by States. 

Funds allotted to States under WIOA 

secs. 127(b) and 132(b) for any program 

year are available for expenditure by the 

State receiving the funds only during 

that program year and the 2 succeeding 

program years as identified in § 683.100. 

(c) Grant funds expended by local 

areas as defined in WIOA sec. 106. (1)(i) 


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Funds allocated by a State to a local area 

under WIOA secs. 128(b) and 133(b), for 

any program year are available for 

expenditure only during that program 

year and the succeeding program year; 

(ii) Pay for performance exception. 

Funds used to carry out pay-forperformance contract strategies will 

remain available until expended in 

accordance with WIOA sec. 189(g)(2)(B). 

(2) Funds which are not expended by 

a local area(s) in the 2-year period 

described in paragraph (c)(1)(i) of this 

section, must be returned to the State. 

Funds so returned are available for 

expenditure by State and local 

recipients and subrecipients only during 

the third program year of availability in 

accordance with WIOA secs. 128(c) and 

132(c). These funds are available for 

only the following purposes: 

(i) For statewide projects, or 

(ii) For distribution to local areas 

which had fully expended their 

allocation of funds for the same program 

year within the 2-year period. 

(d) Native American programs. Funds 

awarded by the Department under 

WIOA sec. 166(c) are available for 

expenditure for the period identified in 

the grant or contract award document, 

which will not exceed 4 years. 

(e) Migrant and seasonal farmworker 

programs. Funds awarded by the 

Department under WIOA sec. 167 are 

available for expenditure for the period 

identified in the grant award document, 

which will not exceed 4 years. 

(f) Evaluations and research. Funds 

awarded by the Department under 

WIOA sec. 169 are available for 

expenditure for any program or activity 

authorized under sec. 169 of WIOA and 

will remain available until expended or 

as specified in the terms and conditions 

of award. 

(g) Other programs under title I of 

WIOA, including secs. 170 and 171, and 

all other grants, contracts and 

cooperative agreements. Funds are 

available for expenditure for a period of 

performance identified in the grant or 

contract agreement. 

(h) Wagner-Peyser. Funds allotted to 

States for grants under secs. 3 and 15 of 

the Wagner-Peyser Act for any program 

year are available for expenditure by the 

State receiving the funds only during 

that program year and the 2 succeeding 

program years. The program year begins 

on July 1 of the fiscal year for which the 

appropriation is made. 

§ 683.115 What planning information must 

a State submit in order to receive a formula 

grant? 

Each State seeking financial 

assistance under subtitle B, chapter 2 

(youth) or chapter 3 (adults and 

dislocated workers), of title I of WIOA, 

or under the Wagner-Peyser Act must 

submit a Unified State Plan, under sec. 

102 of WIOA or a Combined State Plan 

under WIOA sec. 103. The requirements 

for the plan content and the plan review 

process are described in sec. 102 of 

WIOA, sec. 8 of Wagner-Peyser Act, and 

20 CFR 676.100 through 676.135 and 20 

CFR 652.211 through 652.214. 

§ 683.120 How are Workforce Innovation 

and Opportunity Act title I formula funds 

allocated to local areas? 

(a) General. The Governor must 

allocate WIOA formula funds allotted 

for services to youth, adults and 

dislocated workers in accordance with 

secs. 128 and 133 of WIOA and this 

section. 

(1) State Boards must assist Governors 

in the development of any youth or 

adult discretionary within-State 

allocation formulas. (WIOA secs. 

128(b)(3) and 133(b)(3)). 

(2) Within-State allocations must be 

made: 

(i) In accordance with the allocation 

formulas contained in secs. 128(b) and 

133(b) of WIOA and in the State Plan, 

and 

(ii) After consultation with chief 

elected officials and Local Boards in 

each of the local areas. 

(iii) In accordance with sec. 182(e) of 

WIOA, and must be made available to 

local areas not later than 30 days after 

the date funds are made available to the 

State or 7 days after the date the local 

plan for the area is approved, whichever 

is later. 

(b) State reserve. Of the WIOA 

formula funds allotted for services to 

youth, adults and dislocated workers, 

the Governor must reserve not more 

than 15 percent of the funds from each 

of these sources to carry out statewide 

activities. Funds reserved under this 

paragraph may be combined and spent 

on statewide activities under secs. 

129(b) and 134(a) of WIOA and 

statewide employment and training 

activities, for adults and dislocated 

workers, and youth activities, as 

described in 20 CFR 682.200 and 

682.210, without regard to the funding 

source of the reserved funds. 

(c) Youth allocation formula. (1) 

Unless the Governor elects to distribute 

funds in accordance with the 

discretionary allocation formula 

described in paragraph (c)(2) of this 

section, the remainder of youth funds 

not reserved under paragraph (b) of this 

section must be allocated: 

(i) 331⁄3 percent on the basis of the 

relative number of unemployed 

individuals in areas of substantial 

unemployment in each local area, 

compared to the total number of 

unemployed individuals in all areas of 

substantial unemployment in the State; 

(ii) 331⁄3 percent on the basis of the 

relative excess number of unemployed 

individuals in each local area, compared 

to the total excess number of 

unemployed individuals in the State; 

and 

(iii) 331⁄3 percent on the basis of the 

relative number of disadvantaged youth 

in each local area, compared to the total 

number of disadvantaged youth in the 

State except for local areas as described 

in sec. 107(c)(1)(C) of WIOA where the 

allotment must be based on the greater 

of either the number of individuals aged 

16 to 21 in families with an income 

below the low-income level for the area 

or the number of disadvantaged youth 

in the area. 

(2) Discretionary youth allocation 

formula. In lieu of making the formula 

allocation described in paragraph (c)(1) 

of this section, the State may allocate 

youth funds under a discretionary 

formula. Under this discretionary 

formula, the State must allocate a 

minimum of 70 percent of youth funds 

not reserved under paragraph (b) of this 

section on the basis of the formula in 

paragraph (c)(1) of this section, and may 

allocate up to 30 percent on the basis of 

a formula that: 

(i) Incorporates additional factors 

(other than the factors described in 

paragraph (c)(1) of this section) relating 

to: 

(A) Excess youth poverty in urban, 

rural and suburban local areas; and 

(B) Excess unemployment above the 

State average in urban, rural and 

suburban local areas; and 

(ii) Was developed by the State Board 

and approved by the Secretary of Labor 

as part of the State Plan. 

(d) Adult allocation formula. (1) 

Unless the Governor elects to distribute 

funds in accordance with the 

discretionary allocation formula 

described in paragraph (d)(2) of this 

section, the remainder of adult funds 

not reserved under paragraph (b) of this 

section must be allocated: 

(i) 331⁄3 percent on the basis of the 

relative number of unemployed 

individuals in areas of substantial 

unemployment in each local area, 

compared to the total number of 

unemployed individuals in areas of 

substantial unemployment in the State; 

(ii) 331⁄3 percent on the basis of the 

relative excess number of unemployed 

individuals in each local area, compared 

to the total excess number of 

unemployed individuals in the State; 

and 

(iii) 331⁄3 percent on the basis of the 

relative number of disadvantaged adults 


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in each local area, compared to the total 

number of disadvantaged adults in the 

State. Except for local areas as described 

in sec. 107(c)(1)(C) of WIOA where the 

allotment must be based on the higher 

of either the number of adults with an 

income below the low-income level for 

the area or the number of disadvantaged 

adults in the area. 

(2) Discretionary adult allocation 

formula. In lieu of making the formula 

allocation described in paragraph (d)(1) 

of this section, the State may allocate 

adult funds under a discretionary 

formula, Under this discretionary 

formula, the State must allocate a 

minimum of 70 percent of adult funds 

not reserved under paragraph (b) of this 

section on the basis of the formula in 

paragraph (d)(1), and may allocate up to 

30 percent on the basis of a formula 

that: 

(i) Incorporates additional factors 

(other than the factors described in 

paragraph (d)(1) of this section) relating 

to: 

(A) Excess poverty in urban, rural and 

suburban local areas; and 

(B) Excess unemployment above the 

State average in urban, rural and 

suburban local areas; and 

(ii) Was developed by the State Board 

and approved by the Secretary of Labor 

as part of the State Plan. 

(e) Dislocated worker allocation 

formula. (1) The remainder of dislocated 

worker funds not reserved under 

paragraph (b) of this section must be 

allocated on the basis of a formula 

prescribed by the Governor that 

distributes funds in a manner that 

addresses the State’s dislocated worker 

needs. Funds so distributed must not be 

less than 60 percent of the State’s 

formula allotment. 

(2) The Governor’s dislocated worker 

formula must use the most appropriate 

information available to the Governor, 

including information on: 

(i) Insured unemployment data, 

(ii) Unemployment concentrations, 

(iii) Plant closings and mass layoff 

data, 

(iv) Declining industries data, 

(v) Farmer-rancher economic 

hardship data, and 

(vi) Long-term unemployment data. 

(3) The Governor may not amend the 

dislocated worker formula more than 

once for any program year. 

(f) Rapid response. (1) Of the WIOA 

formula funds allotted for services to 

dislocated workers in sec. 132(b)(2)(B) 

of WIOA, the Governor must reserve not 

more than 25 percent of the funds for 

statewide rapid response activities 

described in WIOA sec. 134(a)(2)(A) and 

20 CFR 682.300 through 682.370. 

(2) Unobligated funds. Funds reserved 

by a Governor for rapid response 

activities under sec. 133(a)(2) of WIOA, 

and sec. 133(a)(2) of the Workforce 

Investment Act (as in effect on the day 

before the date of enactment of WIOA), 

to carry out sec. 134(a)(2)(A) of WIOA 

that remain unobligated after the first 

program year for which the funds were 

allotted, may be used by the Governor 

to carry out statewide activities 

authorized under paragraph (b) of this 

section and §§ 682.200 and 682.210. 

(g) Special Rule. For the purpose of 

the formula in paragraphs (c)(1) and 

(d)(1) of this section, the State must, as 

appropriate and to the extent 

practicable, exclude college students 

and members of the Armed Forces from 

the determination of the number of 

disadvantaged youth and disadvantaged 

adults. 

§ 683.125 What minimum funding 

provisions apply to Workforce Innovation 

and Opportunity Act adult, dislocated 

worker, and youth allocations? 

(a) For funding authorized by secs. 

128(b)(2)(ii), 133(b)(ii), and 

133(b)(2)(B)(iii) of WIOA, a local area 

must not receive an allocation 

percentage for fiscal year 2016 or 

subsequent fiscal year that is less than 

90 percent of the average allocation 

percentage of the local area for the 2 

preceding fiscal years. 

(b) Amounts necessary to increase 

allocations to local areas to comply with 

paragraph (a) of this section must be 

obtained by ratably reducing the 

allocations to be made to other local 

areas. 

(c) If the amounts of WIOA funds 

appropriated in a fiscal year are not 

sufficient to provide the amount 

specified in paragraph (a) of this section 

to all local areas, the amounts allocated 

to each local area must be ratably 

reduced. 

§ 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? 

(a) A Local Board may transfer up to 

100 percent of a program year allocation 

for adult employment and training 

activities, and up to 100 percent of a 

program year allocation for dislocated 

worker employment and training 

activities between the two programs. 

(b) Before making any such transfer, a 

Local Board must obtain the Governor’s 

written approval. 

(c) Local Boards may not transfer 

funds to or from the youth program. 

§ 683.135 What reallotment procedures 

does the Secretary use? 

(a) The Secretary determines, during 

the second quarter of each program year, 

whether a State has obligated its 

required level of at least 80 percent of 

the funds allotted under secs. 127 and 

132 of WIOA for programs serving 

youth, adults, and dislocated workers 

for the prior program year, as separately 

determined for each of the three funding 

streams. The amount to be recaptured 

from each State for reallotment, if any, 

is based on State obligations of the 

funds allotted to each State under secs. 

127 and 132 of WIOA for programs 

serving youth, adults or dislocated 

workers, less any amount reserved (up 

to five percent at the State level) for the 

costs of administration. The recapture 

amount, if any, is separately determined 

for each funding stream. 

(b) The Secretary reallots youth, adult 

and dislocated worker funds among 

eligible States in accordance with the 

provisions of secs. 127(c) and 132(c) of 

WIOA, respectively. To be eligible to 

receive a reallotment of youth, adult, or 

dislocated worker funds under the 

reallotment procedures, a State must 

have obligated at least 80 percent of the 

prior program year’s allotment, less any 

amount reserved for the costs of 

administration at the State level of 

youth, adult, or dislocated worker 

funds. A State’s eligibility to receive a 

reallotment is separately determined for 

each funding stream. 

(c) The term ‘‘obligation’’ is defined at 

2 CFR 200.71. Obligations must be 

reported on the required Department of 

Labor (DOL or the Department) financial 

form, such as the ETA–9130 form. For 

purposes of this section, the Secretary 

will also treat as State obligations: 

(1) Amounts allocated by the State, 

under secs. 128(b) and 133(b) of WIOA, 

to the local area, including a single-State 

local area if the State has been 

designated as a single local area as 

described in sec. 106(d) of WIOA or to 

a balance of State local area 

administered by a unit of the State 

government, and; 

(2) Inter-agency transfers and other 

actions treated by the State as 

encumbrances against amounts reserved 

by the State under secs. 128(a) and 

133(a) of WIOA for statewide workforce 

investment activities. 

§ 683.140 What reallocation procedures 

must the Governors use? 

(a) The Governor, after consultation 

with the State Board, may reallocate 

youth, adult, and dislocated worker 

funds among local areas within the State 

in accordance with the provisions of 

secs. 128(c) and 133(c) of WIOA. If the 


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Governor chooses to reallocate funds, 

the provisions in paragraphs (b) and (c) 

of this section apply. 

(b) For the youth, adult and dislocated 

worker programs, the amount to be 

recaptured from each local area for 

purposes of reallocation, if any, must be 

based on the amount by which the prior 

year’s unobligated balance of allocated 

funds exceeds 20 percent of that year’s 

allocation for the program, less any 

amount reserved (up to 10 percent) for 

the costs of administration. Unobligated 

balances must be determined based on 

allocations adjusted for any allowable 

transfer between funding streams. The 

amount to be recaptured, if any, must be 

separately determined for each funding 

stream. The term ‘‘obligation’’ is defined 

at 2 CFR 200.71. 

(c) To be eligible to receive youth, 

adult or dislocated worker funds under 

the reallocation procedures, a local area 

must have obligated at least 80 percent 

of the prior program year’s allocation, 

less any amount reserved (up to 10 

percent) for the costs of administration, 

for youth, adult, or dislocated worker 

activities, as separately determined. A 

local area’s eligibility to receive a 

reallocation must be separately 

determined for each funding stream. 

§ 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? 

(a) For competitive awards, the 

Department will design and execute a 

merit review process for applications as 

prescribed under 2 CFR 200.204 when 

issuing Federal financial assistance 

awards made under WIOA title I, 

subtitle D. This process will be 

described or incorporated by reference 

in the applicable funding opportunity 

announcement. 

(b) Prior to issuing a Federal financial 

assistance award under WIOA title I, 

subtitle D, the Department will conduct 

a risk assessment to assess the 

organization’s overall ability to 

administer Federal funds as required 

under 2 CFR 200.205. As part of this 

assessment, the Department may 

consider any information that has come 

to its attention and will consider the 

organization’s history with regard to the 

management of other grants, including 

DOL grants. 

(c) In evaluating risks posed by 

applicants, the Department will 

consider the following: 

(1) Financial stability; 

(2) Quality of management systems 

and ability to meet the management 

standards prescribed in this part; 

(3) History of performance. The 

applicant’s record in managing Federal 

awards, if it is a prior recipient of 

Federal awards, including timeliness of 

compliance with applicable reporting 

requirements, conformance to the terms 

and conditions of previous Federal 

awards, and if applicable, the extent to 

which any previously awarded amounts 

will be expended prior to future awards; 

(4) Reports and findings from audits; 

and 

(5) The applicant’s ability to 

implement effectively statutory, 

regulatory, or other requirements 

imposed on non-Federal entities. 

§ 683.150 What closeout requirements 

apply to grants funded with Workforce 

Innovation and Opportunity Act title I and 

Wagner-Peyser funds? 

(a) After the expiration of the period 

of performance, the Department will 

close-out the Federal award when it 

determines that all applicable 

administrative actions and all required 

work of the Federal award have been 

completed by the grant recipient. This 

section specifies the actions the grant 

recipient and the Department must take 

to complete this process. 

(1) The grant recipient must submit, 

no later than 90 calendar days after the 

end date of the period of performance, 

all financial, performance, and other 

reports as required by the terms and 

conditions of the Federal award. 

(2) The Department may approve 

extensions when requested by the grant 

recipient. 

(b) Unless the Department authorizes 

an extension, the grant recipient must 

liquidate all obligations and/or accrued 

expenditures incurred under the Federal 

award not later than 90 calendar days 

after the end date of the period of 

performance as specified in the terms 

and conditions of the Federal award. 

(c) The Department must make 

prompt payments to the grant recipient 

for allowable reimbursable costs under 

the Federal award being closed out. 

(d) The grant recipient must promptly 

refund any balances of unobligated cash 

that the Department paid in advance or 

paid and that is not authorized to be 

retained by the grant recipient. See 

Office of Management and Budget 

Circular A–129, 2 CFR 200.345, and 2 

CFR part 2900 for requirements 

regarding unreturned amounts that 

become delinquent debts. 

(e) Consistent with the terms and 

conditions of the Federal award, the 

Department must make a settlement for 

any upward or downward adjustments 

to the Federal share of costs after 

closeout reports are received. 

(f) The grant recipient must account 

for any real and personal property 

acquired with Federal funds or received 

from the Federal government in 

accordance with 2 CFR 200.310 to 

200.316, and 200.329. 

(g) The Department should complete 

all closeout actions for Federal awards 

no later than 1 year after receipt and 

acceptance of all required final reports. 

(h) The closeout of an award does not 

affect any of the following: 

(1) The right of the Department to 

disallow costs and recover funds on the 

basis of a later audit or other review. 

(2) The obligation of the grant 

recipient to return any funds due as a 

result of later refunds, corrections, or 

other transactions. 

(3) Audit requirements as described in 

2 CFR part 200, subpart F. 

(4) Property management 

requirements in 2 CFR 200.310 to 

200.316. 

(5) Records retention as required in 2 

CFR 200.333 to 200.337. 

(i) After closeout of an award, a 

relationship created under the award 

may be modified or ended in whole or 

in part with the consent of the 

Department and the grant recipient, 

provided the responsibilities of the 

grant recipient referred to in 2 CFR 

200.344(a) and 2 CFR 200.310 to 

200.316 are considered, and provisions 

are made for continuing responsibilities 

of the grant recipient, as appropriate. 

(j) Grant recipients that award WIOA 

funds to subrecipients must institute a 

timely closeout process after the end of 

performance to ensure a timely closeout 

in accordance with 2 CFR 200.343 to 

200.344. 

Subpart B—Administrative Rules, 

Costs, and Limitations 

§ 683.200 What general fiscal and 

administrative rules apply to the use of 

Workforce Innovation and Opportunity Act 

title I and Wagner-Peyser funds? 

(a) Uniform guidance. Recipients and 

subrecipients of a Federal award under 

title I of WIOA and Wagner-Peyser must 

follow the uniform guidance at 2 CFR 

parts 200, 215, 225, 230 and Appendices 

I through XI, including any exceptions 

identified by the Department at 2 CFR 

part 2900. 

(1) Commercial organizations, forprofit entities, and foreign entities that 

are recipients and subrecipients of a 

Federal award must adhere to 2 CFR 

part 200, including any exceptions 

identified by the Department under 2 

CFR part 2900 and to the Federal 

Acquisition Regulations (FAR), 

including 48 CFR part 31. 

(b) Allowable costs and cost 

principles. (1) Recipients and 

subrecipients of a Federal award under 

title I of WIOA and Wagner-Peyser must 


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follow the cost principles at subpart E 

and Appendices III through IX of 2 CFR 

part 200, including any exceptions 

identified by the Department at 2 CFR 

part 2900. 

(2) Prior approval: Unless specified in 

the grant agreement, for those items 

requiring prior approval in the Uniform 

Guidance (e.g., selected items of cost, 

budget realignment), the authority to 

grant or deny approval is delegated to 

the Governor for programs funded under 

sec. 127 or 132 of WIOA or under 

Wagner-Peyser. 

(3) Costs of workforce councils, 

advisory councils, Native American 

Employment and Training Councils, 

and Local Board committees established 

under title I of WIOA are allowable. 

(c) Uniform administrative 

requirements. (1) Except as provided in 

paragraphs (c)(3) through (6) of this 

section, all recipients and subrecipients 

of a Federal award under title I of WIOA 

and under Wagner-Peyser must follow 

subparts A through D and Appendices 

I through II of 2 CFR part 200, including 

any exceptions identified by the 

Department at 2 CFR part 2900. 

(2) Unless otherwise specified in the 

grant agreement, expenditures must be 

reported on accrual basis. 

(3) In accordance with the 

requirements at 2 CFR 200.400(g), 

subgrantees may not earn or keep any 

profit resulting from Federal financial 

assistance, unless expressly authorized 

by the terms and conditions of the 

Federal award. 

(4) In addition to the requirements at 

2 CFR 200.317 through 200.326 (as 

appropriate), all procurement contracts 

between Local Boards and units of State 

or local governments must be conducted 

only on a cost reimbursement basis. 

(5) In addition to the requirements at 

2 CFR 200.318, which address codes of 

conduct and conflict of interest the 

following applies: 

(i) A State Board member, Local Board 

member, or Board standing committee 

member must neither cast a vote on, nor 

participate in any decision-making 

capacity, on the provision of services by 

such member (or any organization 

which that member directly represents), 

nor on any matter which would provide 

any direct financial benefit to that 

member or a member of his immediate 

family. 

(ii) Neither membership on the State 

Board, the Local Board, or a Board 

standing committee, nor the receipt of 

WIOA funds to provide training and 

related services, by itself, violates these 

conflict of interest provisions. 

(iii) In accordance with the 

requirements at 2 CFR 200.112, 

recipients of Federal awards must 

disclose in writing any potential conflict 

of interest to the Department. 

Subrecipients must disclose in writing 

any potential conflict of interest to the 

recipient of grant funds. 

(6) The addition method, described at 

2 CFR 200.307, must be used for all 

program income earned under title I of 

WIOA and Wagner-Peyser grants. When 

the cost of generating program income 

has been charged to the program, the 

gross amount earned must be added to 

the WIOA program. However, the cost of 

generating program income must be 

subtracted from the amount earned to 

establish the net amount of program 

income available for use under the 

grants when these costs have not been 

charged to the WIOA program. 

(7) Any excess of revenue over costs 

incurred for services provided by a 

governmental or non-profit entity must 

be included in program income. (WIOA 

secs. 194(7)(A)–(B)) 

(8) Interest income earned on funds 

received under title I of WIOA and 

Wagner-Peyser must be included in 

program income. (WIOA sec. 

194(7)(B)(iii)) 

(9) On a fee-for-service basis, 

employers may use local area services, 

facilities, or equipment funded under 

title I of WIOA to provide employment 

and training activities to incumbent 

workers: 

(i) When the services, facilities, or 

equipment are not being used by eligible 

participants; 

(ii) If their use does not affect the 

ability of eligible participants to use the 

services, facilities, or equipment; and 

(iii) If the income generated from such 

fees is used to carry out programs 

authorized under this title. 

(d) Government-wide debarment and 

suspension, and government-wide drugfree workplace requirements. All WIOA 

title I and Wagner-Peyser grant 

recipients and subrecipients must 

comply with the government-wide 

requirements for debarment and 

suspension, and the government-wide 

requirements for a drug-free workplace, 

codified at 29 CFR part 98. 

(e) Restrictions on lobbying. All WIOA 

title I and Wagner-Peyer grant recipients 

and subrecipients must comply with the 

restrictions on lobbying specified in 

WIOA sec. 195 and codified in the 

Department regulations at 29 CFR part 

93. 

(f) Buy-American. As stated in sec. 

502 of WIOA, all funds authorized in 

title I of WIOA and Wagner- Peyser 

must be expended on only Americanmade equipment and products, as 

required by the Buy American Act (41 

U.S.C. 8301–8305). 

(g) Nepotism. (1) No individual may 

be placed in a WIOA employment 

activity if a member of that person’s 

immediate family is directly supervised 

by or directly supervises that 

individual. 

(2) To the extent that an applicable 

State or local legal requirement 

regarding nepotism is more restrictive 

than this provision, such State or local 

requirement must be followed. 

(h) Mandatory disclosures. All WIOA 

title I and Wagner-Peyser recipients of 

Federal awards must disclose as 

required at 2 CFR 200.113, in a timely 

manner, in writing to the Federal 

awarding agency or pass-through entity 

all violations of Federal criminal law 

involving fraud, bribery, or gratuity 

violations potentially affecting the 

Federal award. Failure to make required 

disclosures can result in any of the 

remedies described in 2 CFR 200.338 

(Remedies for noncompliance), 

including suspension or debarment. 

§ 683.205 What administrative cost 

limitations apply to Workforce Innovation 

and Opportunity Act title I grants? 

(a) State formula grants. (1) As part of 

the 15 percent that a State may reserve 

for statewide activities, the State may 

spend up to 5 percent of the amount 

allotted under secs. 127(b)(1), 132(b)(1), 

and 132(b)(2) of WIOA for the 

administrative costs of statewide 

activities. 

(2) Local area expenditures for 

administrative purposes under WIOA 

formula grants are limited to no more 

than 10 percent of the amount allocated 

to the local area under secs. 128(b) and 

133(b) of WIOA. 

(3) The 5 percent reserved for 

statewide administrative costs and the 

10 percent reserved for local 

administrative costs may be used for 

administrative costs for any of the 

statewide youth workforce investment 

activities or statewide employment and 

training activities under secs. 127(b)(1), 

128(b), and 132(b) of WIOA. 

(4) In a one-stop environment, 

administrative costs borne by other 

sources of funds, such as the WagnerPeyser Act, are not included in the 

administrative cost limit calculation. 

Each program’s administrative activities 

are chargeable to its own grant and 

subject to its own administrative cost 

limitations. 

(5) Costs of negotiating a MOU or 

infrastructure agreement under title I of 

WIOA are excluded from the 

administrative cost limitations. 

(b) Discretionary grants. (1) Limits on 

administrative costs, if any, for 

programs operated under subtitle D of 


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title I of WIOA will be identified in the 

grant or cooperative agreement. 

§ 683.210 What audit requirements apply 

to the use of Workforce Innovation and 

Opportunity Act title I and Wagner-Peyser 

funds? 

(a)(1) All recipients of WIOA title I 

and Wagner-Peyser funds that expend 

more than the minimum amounts 

specified in 2 CFR part 200, subpart F 

in Federal awards during their fiscal 

year must have a program specific or 

single audit conducted in accordance 

with 2 CFR part 200, subpart F. 

(2) Commercial or for-profit. Grant 

recipients and subrecipients of title I 

and Wagner-Peyser funds that are 

commercial or for-profit entities must 

adhere to the requirements contained in 

2 CFR part 200, subpart F. 

(3) Subrecipients and contractors. An 

auditee may simultaneously be a 

recipient, a subrecipient, and a 

contractor depending on the substance 

of its agreements with Federal awarding 

agencies and pass-through entities. 

Federal awards expended as a recipient 

or subrecipient are subject to audit 

requirements under 2 CFR part 200, 

subpart F. 

(4) Contractors. The payments 

received for goods or services provided 

as a contractor are not Federal awards. 

Subrecipient and contractor 

determinations made under 2 CFR 

200.330 should be considered in 

determining whether payments 

constitute a Federal award or a payment 

for goods and services provided as a 

contractor. 

§ 683.215 What Workforce Innovation and 

Opportunity Act title I functions and 

activities constitute the costs of 

administration subject to the administrative 

cost limitation? 

(a) The costs of administration are 

expenditures incurred by State and 

Local Workforce Development Boards, 

Regions, direct grant recipients, 

including State grant recipients under 

subtitle B of title I of WIOA, and 

recipients of awards under subtitle D of 

title I, as well as local grant recipients, 

local grant subrecipients, local fiscal 

agents and one-stop operators that are 

associated with those specific functions 

identified in paragraph (b) of this 

section and which are not related to the 

direct provision of workforce 

investment services, including services 

to participants and employers. These 

costs can be both personnel and nonpersonnel and both direct and indirect. 

(b) The costs of administration are the 

costs associated with performing the 

following functions: 

(1) Performing the following overall 

general administrative functions and 

coordination of those functions under 

title I of WIOA: 

(i) Accounting, budgeting, financial 

and cash management functions; 

(ii) Procurement and purchasing 

functions; 

(iii) Property management functions; 

(iv) Personnel management functions; 

(v) Payroll functions; 

(vi) Coordinating the resolution of 

findings arising from audits, reviews, 

investigations and incident reports; 

(vii) Audit functions; 

(viii) General legal services functions; 

(ix) Developing systems and 

procedures, including information 

systems, required for these 

administrative functions; and 

(x) Fiscal agent responsibilities; 

(2) Performing oversight and 

monitoring responsibilities related to 

WIOA administrative functions; 

(3) Costs of goods and services 

required for administrative functions of 

the program, including goods and 

services such as rental or purchase of 

equipment, utilities, office supplies, 

postage, and rental and maintenance of 

office space; 

(4) Travel costs incurred for official 

business in carrying out administrative 

activities or the overall management of 

the WIOA system; 

and 

(5) Costs of information systems 

related to administrative functions (for 

example, personnel, procurement, 

purchasing, property management, 

accounting and payroll systems) 

including the purchase, systems 

development and operating costs of 

such systems. 

(c)(1) Awards to subrecipients or 

contractors that are solely for the 

performance of administrative functions 

are classified as administrative costs. 

(2) Personnel and related nonpersonnel costs of staff that perform 

both administrative functions specified 

in paragraph (b) of this section and 

programmatic services or activities must 

be allocated as administrative or 

program costs to the benefitting cost 

objectives/categories based on 

documented distributions of actual time 

worked or other equitable cost 

allocation methods. 

(3) Specific costs charged to an 

overhead or indirect cost pool that can 

be identified directly as a program cost 

are to be charged as a program cost. 

Documentation of such charges must be 

maintained. 

(4) Except as provided at paragraph 

(c)(1) of this section, all costs incurred 

for functions and activities of 

subrecipients and contractors are 

program costs. 

(5) Continuous improvement 

activities are charged to administration 

or program category based on the 

purpose or nature of the activity to be 

improved. Documentation of such 

charges must be maintained. 

(6) Costs of the following information 

systems including the purchase, systems 

development, and operational costs 

(e.g., data entry) are charged to the 

program category: 

(i) Tracking or monitoring of 

participant and performance 

information; 

(ii) Employment statistics 

information, including job listing 

information, job skills information, and 

demand occupation information; 

(iii) Performance and program cost 

information on eligible providers of 

training services, youth activities, and 

appropriate education activities; 

(iv) Local area performance 

information; and 

(v) Information relating to supportive 

services and unemployment insurance 

claims for program participants. 

(d) Where possible, entities identified 

in item (a) must make efforts to 

streamline the services in paragraphs 

(b)(1) through (5) of this section to 

reduce administrative costs by 

minimizing duplication and effectively 

using information technology to 

improve services. 

§ 683.220 What are the internal controls 

requirements for recipients and 

subrecipients of Workforce Innovation and 

Opportunity Act title I and Wagner-Peyser 

funds? 

(a) Recipients and subrecipients of 

WIOA title I and Wagner-Peyser Act 

funds must have an internal control 

structure and written policies in place 

that provide safeguards to protect 

personally identifiable information, 

records, contracts, grant funds, 

equipment, sensitive information, 

tangible items, and other information 

that is readily or easily exchanged in the 

open market, or that the Department or 

the recipient or subrecipient considers 

to be sensitive, consistent with 

applicable Federal, State and local 

privacy and confidentiality laws. 

Internal controls also must include 

reasonable assurance that the entity is: 

(1) Managing the award in compliance 

with Federal statutes, regulations, and 

the terms and conditions of the Federal 

award; 

(2) Complying with Federal statutes, 

regulations, and the terms and 

conditions of the Federal awards; 

(3) Evaluating and monitoring the 

recipient’s and subrecipient’s 

compliance with the statute, regulations 

and the terms and conditions of Federal 

awards; and 


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(4) Taking prompt action when 

instances of noncompliance are 

identified. 

(b) Internal controls should be in 

compliance with the guidance in 

‘‘Standards for Internal Control in the 

Federal Government’’ issued by the 

Comptroller General of the United 

States and the ‘‘Internal Control 

Integrated Framework’’, issued by the 

Committee of Sponsoring Organizations 

of the Treadway Commission (COSO). 

See 2 CFR 200.303. 

§ 683.225 What requirements relate to the 

enforcement of the Military Selective 

Service Act? 

The requirements relating to the 

enforcement of the Military Selective 

Service Act are found at WIOA sec. 

189(h). 

§ 683.230 Are there special rules that 

apply to veterans when income is a factor 

in eligibility determinations? 

Yes, under 38 U.S.C. 4213, when past 

income is an eligibility determinant for 

Federal employment or training 

programs, any amounts received as 

military pay or allowances by any 

person who served on active duty, and 

certain other specified benefits must be 

disregarded for the veteran and for other 

individuals for whom those amounts 

would normally be applied in making 

an eligibility determination. This 

applies when determining if a person is 

a ‘‘low-income individual’’ for 

eligibility purposes (for example, in the 

WIOA youth, or NFJP programs). Also, 

it applies when income is used as a 

factor when a local area provides 

priority of service for ‘‘low-income 

individuals’’ with title I WIOA funds 

(see 20 CFR 680.600 and 20 CFR 

680.650). Questions regarding the 

application of 38 U.S.C. 4213 should be 

directed to the Veterans’ Employment 

and Training Service. 

§ 683.235 May Workforce Innovation and 

Opportunity Act title I funds be spent for 

construction? 

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 the prior written approval 

of the Secretary. 

§ 683.240 What are the instructions for 

using real property with Federal equity? 

(a) SESA properties. Federal equity 

acquired in real property through grants 

to States awarded under title III of the 

Social Security Act or the WagnerPeyser Act, including State Employment 

Security Agency (SESA) real property, is 

transferred to the States that used the 

grant to acquire such equity. 

(1) The portion of any real property 

that is attributable to the Federal equity 

transferred under this section must be 

used to carry out activities authorized 

under WIOA, title III of the Social 

Security Act (Unemployment 

Compensation program) or the WagnerPeyser Act. 

(2) When such real property is no 

longer needed for the activities 

described in paragraph (a)(1) of this 

section, the States must request 

disposition instructions from the Grant 

Officer prior to disposition or sale of the 

property. The portion of the proceeds 

from the disposition of the real property 

that is attributable to the Federal equity 

transferred under this section must be 

used to carry out activities authorized 

under WIOA, title III of the Social 

Security Act, or the Wagner-Peyser Act. 

(3) Limitation on use of funds. States 

must not use funds awarded under 

WIOA, title III of the Social Security 

Act, or the Wagner-Peyser Act to 

amortize the costs of real property that 

is purchased by any State on or after 

February 15, 2007, the date of 

enactment of the Revised Continuing 

Appropriations Resolution, 2007. 

(4) Properties occupied by WagnerPeyser must be collocated with one-stop 

centers. 

(b) Reed Act-funded properties. 

Properties with Reed Act equity may be 

used for the one-stop service 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 

Unemployment Compensation and 

Wagner-Peyser Act programs in such 

properties. When such real property is 

no longer needed as described in the 

previous sentence, the State must 

request disposition instructions from 

the Grant Officer prior to disposition or 

sale. 

(c) Job Training Partnership Actfunded properties. Real property that 

was purchased with JTPA funds and 

transferred to WIA, is now transferred to 

the WIOA title I programs and must be 

used for WIOA purposes. When such 

real property is no longer needed for the 

activities of WIOA, the recipient or 

subrecipient must seek instructions 

from the Grant Officer or State (in the 

case of a subrecipient) prior to 

disposition or sale. 

§ 683.245 Are employment generating 

activities, or similar activities, allowable 

under the Workforce Innovation and 

Opportunity Act title I? 

(a) Under sec. 181(e) of WIOA, title I 

funds must not be spent on employment 

generating activities, investment in 

revolving loan funds, capitalization of 

businesses, investment in contract 

bidding resource centers, economic 

development activities, or similar 

activities, unless they are directly 

related to training for eligible 

individuals. For purposes of this 

prohibition, employer outreach and job 

development activities are directly 

related to training for eligible 

individuals. 

(b) These employer outreach and job 

development activities may include: 

(1) Contacts with potential employers 

for the purpose of placement of WIOA 

participants; 

(2) Participation in business 

associations (such as chambers of 

commerce); joint labor management 

committees, labor associations, and 

resource centers; 

(3) WIOA staff participation on 

economic development boards and 

commissions, and work with economic 

development agencies to: 

(i) Provide information about WIOA 

programs, 

(ii) Coordinate activities in a region or 

local area to promote entrepreneurial 

training and microenterprise services, 

(iii) Assist in making informed 

decisions about community job training 

needs, and 

(iv) Promote the use of first source 

hiring agreements and enterprise zone 

vouchering services; 

(4) Active participation in local 

business resource centers (incubators) to 

provide technical assistance to small 

businesses and new businesses to 

reduce the rate of business failure; 

(5) Subscriptions to relevant 

publications; 

(6) General dissemination of 

information on WIOA programs and 

activities; 

(7) The conduct of labor market 

surveys; 

(8) The development of on-the-job 

training opportunities; and 

(9) Other allowable WIOA activities in 

the private sector. 

§ 683.250 What other activities are 

prohibited under title I of the Workforce 

Innovation and Opportunity Act? 

(a) WIOA title I funds must not be 

spent on: 

(1) The wages of incumbent 

employees during their participation in 

economic development activities 

provided through a statewide workforce 

investment system (WIOA secs. 

181(b)(1) and 181(b)(2)); 

(2) Public service employment, except 

as specifically authorized under title I of 

WIOA (WIOA sec. 194(10)). 

(3) Expenses prohibited under any 

other Federal, State or local law or 

regulation. 


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(4) Subawards or contracts with 

parties that are debarred, suspended, or 

otherwise excluded from or ineligible 

for participation in Federal programs or 

activities. 

(5) Contracts with persons falsely 

labeling products made in America. 

(b) WIOA formula funds available to 

States and local areas under subtitle B, 

title I must not be used for foreign travel 

(WIOA sec. 181(e)). 

§ 683.255 What are the limitations related 

to religious activities of title I of the 

Workforce Innovation and Opportunity Act? 

(a) Section 188(a)(3) of WIOA 

prohibits the use of funds to employ 

participants to carry out the 

construction, operation, or maintenance 

of any part of any facility used for 

sectarian instruction or as a place for 

religious worship with the exception of 

maintenance of facilities that are not 

primarily used for instruction or 

worship and are operated by 

organizations providing services to 

WIOA participants. 

(b) 29 CFR part 2, subpart D governs 

the circumstances under which 

Department support, including WIOA 

title I financial assistance, may be used 

to employ or train participants in 

religious activities. Under that subpart, 

such assistance may be used for such 

employment or training only when the 

assistance is provided indirectly within 

the meaning of the Establishment Clause 

of the U.S. Constitution, and not when 

the assistance is provided directly. That 

subpart also contains requirements 

related to equal treatment in Department 

of Labor programs for religious 

organizations, and to protecting the 

religious liberty of Department of Labor 

social service providers and 

beneficiaries. (29 CFR part 2, subpart 

D—Equal Treatment in Department of 

Labor Programs for Religious 

Organizations, Protection of Religious 

Liberty of Department of Labor Social 

Service Providers and Beneficiaries). 

§ 683.260 What prohibitions apply to the 

use of Workforce Innovation and 

Opportunity Act title I funds to encourage 

business relocation? 

(a) Section 181(d) of WIOA states that 

funds must not be used or proposed to 

be used for: 

(1) The encouragement or inducement 

of 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; 

(2) Customized training, skill training, 

on-the-job training, incumbent worker 

training, transitional employment, or 

company specific assessments of job 

applicants for or employees of any 

business or part of a business that has 

relocated from any location in the 

United States, until the company has 

operated at that location for 120 days, if 

the relocation has resulted in any 

employee losing his or her jobs at the 

original location. 

(b) Pre-award review. To verify that a 

business establishment which is new or 

expanding is not, in fact, relocating 

employment from another area, 

standardized pre-award review criteria 

developed by the State must be 

completed and documented jointly by 

the local area and the business 

establishment as a prerequisite to WIOA 

assistance. 

(1) The review must include names 

under which the establishment does 

business, including predecessors and 

successors in interest; the name, title, 

and address of the company official 

certifying the information, and whether 

WIOA assistance is sought in 

connection with past or impending job 

losses at other facilities, including a 

review of whether WARN notices 

relating to the employer have been filed. 

(2) The review may include 

consultations with labor organizations 

and others in the affected local area(s). 

§ 683.265 What procedures and sanctions 

apply to violations of this part? 

(a) The Grant Officer will promptly 

review and take appropriate action on 

alleged violations of the provisions 

relating to: 

(1) Construction (§ 683.235); 

(2) Employment generating activities 

(§ 683.245); 

(3) Other prohibited activities 

(§ 683.250); 

(4) The limitation related to religious 

activities (§ 683.255); and 

(5) The use of WIOA title I funds to 

encourage business relocation 

(§ 683.260). 

(b) Procedures for the investigation 

and resolution of the violations are 

provided under the Grant Officer’s 

resolution process at § 683.440. 

(c) Sanctions and remedies are 

provided for under sec. 184(c) of WIOA 

for violations of the provisions relating 

to: 

(1) Construction (§ 683.235); 

(2) Employment generating activities 

(§ 683.245); 

(3) Other prohibited activities 

(§ 683.250); and 

(4) The limitation related to religious 

activities (§ 683.255(b)). 

(d) Sanctions and remedies are 

provided for in sec. 181(d)(3) of WIOA 

for violations of § 683.260, which 

addresses business relocation. 

(e) Violations of § 683.255(a) will be 

handled in accordance with the 

Department’s nondiscrimination 

regulations implementing sec. 188 of 

WIOA, codified at 29 CFR part 37. 

§ 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? 

(a) A participant in a program or 

activity authorized under title I of 

WIOA must not displace (including a 

partial displacement, such as a 

reduction in the hours of non-overtime 

work, wages, or employment benefits) 

any currently employed employee (as of 

the date of the participation). 

(b) A program or activity authorized 

under title I of WIOA must not impair 

existing contracts for services or 

collective bargaining agreements. When 

a program or activity authorized under 

title I of WIOA would be inconsistent 

with a collective bargaining agreement, 

the appropriate labor organization and 

employer must provide written 

concurrence before the program or 

activity begins. 

(c) A participant in a program or 

activity under title I of WIOA may not 

be employed in or assigned to a job if: 

(1) Any other individual is on layoff 

from the same or any substantially 

equivalent job; 

(2) 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 vacancy so created with the WIOA 

participant; or 

(3) The job is created in a promotional 

line that infringes in any way on the 

promotional opportunities of currently 

employed workers as of the date of the 

participation. 

(d) Regular employees and program 

participants alleging displacement may 

file a complaint under the applicable 

grievance procedures found at 

§ 683.600. (WIOA sec. 181) 

§ 683.275 What wage and labor standards 

apply to participants in activities under title 

I of the Workforce Innovation and 

Opportunity Act? 

(a) Individuals in on-the-job training 

or individuals employed in activities 

under title I of WIOA 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. Such 

rates must be in accordance with 

applicable law, but may not be less than 

the higher of the rate specified in sec. 

6(a)(1) of the Fair Labor Standards Act 

of 1938 (29 U.S.C. 206(a)(1)) or the 


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applicable State or local minimum wage 

law. (WIOA sec. 181(a)(1)(A)) 

(b) The reference in paragraph (a) of 

this section to sec. 6(a)(1) of the Fair 

Labor Standards Act of 1938 (29 U.S.C. 

206(a)(1)) is not applicable for 

individuals in territorial jurisdictions in 

which sec. 6(a)(1) of the Fair Labor 

Standards Act of 1938 (29 U.S.C. 

206(a)(1)) does not apply. (WIOA sec. 

181(a)(1)(B)) 

(c) Individuals in on-the-job training 

or individuals employed in programs 

and activities under title I of WIOA 

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. 

(WIOA sec. 181(b)(5)). 

(d) 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 

Social Security Act (42 U.S.C. 301 et 

seq.). (WIOA sec. 181(a)(2)) 

(e) Funds under title I of WIOA 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)) 

§ 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? 

(a) Health and safety standards 

established under Federal and State law 

otherwise applicable to working 

conditions of employees are equally 

applicable to working conditions of 

participants engaged in programs and 

activities under title I of WIOA. 

(b)(1) To the extent that a State 

workers’ compensation law applies, 

workers’ compensation must be 

provided to participants in programs 

and activities under title I of WIOA on 

the same basis as the compensation is 

provided to other individuals in the 

State in similar employment. 

(2) If a State workers’ compensation 

law applies to a participant in work 

experience, workers’ compensation 

benefits must be available for injuries 

suffered by the participant in such work 

experience. If a State workers’ 

compensation law does not apply to a 

participant in work experience, 

insurance coverage must be secured for 

injuries suffered by the participant in 

the course of such work experience. 

§ 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? 

(a)(1) Recipients, as defined in 29 CFR 

37.4, must comply with the 

nondiscrimination and equal 

opportunity provisions of WIOA sec. 

188 and its implementing regulations, 

codified at 29 CFR part 37. Under that 

definition, the term ‘‘recipients’’ 

includes State and Local Workforce 

Development Boards, one-stop 

operators, service providers, Job Corps 

contractors, and subrecipients, as well 

as other types of individuals and 

entities. 

(2) Nondiscrimination and equal 

opportunity requirements and 

procedures, including complaint 

processing and compliance reviews, are 

governed by the regulations 

implementing sec. 188 of WIOA, 

codified at 29 CFR part 37, and are 

administered and enforced by the DOL 

Civil Rights Center. 

(3) As described in sec. 188 of WIOA, 

financial assistance provided under title 

I of WIOA may be used to meet a 

recipient’s obligation to provide 

physical and programmatic accessibility 

and reasonable accommodation/

modification in regard to the WIOA 

program, as required by sec. 504 of the 

Rehabilitation Act of 1973, as amended, 

the Americans with Disabilities Act of 

1990, as amended, sec. 188 of WIOA, 

and the regulations implementing these 

statutory provisions. 

(4) No person may discriminate 

against an individual who is a 

participant in a program or activity that 

receives funds under title I of WIOA, 

with respect to the terms and conditions 

affecting, or rights provided to, the 

individual, solely because of the status 

of the individual as a participant. 

(5) Participation in programs and 

activities or receiving funds under title 

I of WIOA must 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. 

(b)(1) 29 CFR part 2, subpart D 

governs the circumstances under which 

recipients may use Department support, 

including WIOA title I and WagnerPeyser Act financial assistance, to 

employ or train participants in religious 

activities. As explained in that subpart, 

such assistance may be used for such 

employment or training only when the 

assistance is provided indirectly within 

the meaning of the Establishment Clause 

of the U.S. Constitution, and not when 

the assistance is provided directly. As 

explained in that subpart, assistance 

provided through an Individual 

Training Account is generally 

considered indirect, and other 

mechanisms may also be considered 

indirect. See also § 683.255 and 29 CFR 

37.6(f)(1). 

(2) 29 CFR part 2, subpart D also 

contains requirements related to equal 

treatment of religious organizations in 

Department of Labor programs, and to 

protection of religious liberty for 

Department of Labor social service 

providers and beneficiaries. Limitations 

on the employment of participants 

under WIOA title I to carry out the 

construction, operation, or maintenance 

of any part of any facility used or to be 

used for religious instruction or as a 

place of religious worship are described 

at 29 CFR 37.6(f)(2). See also WIOA sec. 

188(a)(3). 

§ 683.290 Are there salary and bonus 

restrictions in place for the use of title I and 

Wagner-Peyser funds? 

(a) No funds available under title I of 

WIOA or the Wagner-Peyser Act may be 

used by a recipient or subrecipient of 

such funds to pay the salary and 

bonuses of an individual, either as 

direct costs 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, which 

can be found at www.opm.gov. 

(b) In instances where funds awarded 

under title I of WIOA or the WagnerPeyser Act pay only a portion of the 

salary or bonus, the WIOA title I or 

Wagner-Peyser 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. The restriction 

applies to the sum of salaries and 

bonuses charged as either direct costs or 

indirect costs under title I of WIOA and 

the Wagner-Peyser Act. 

(c) The limitation described in 

paragraph (a) of this section will not 

apply to contractors (as defined in 2 

CFR 200.23) providing goods and 

services. In accordance with 2 CFR part 

200.330, characteristics indicative of 

contractor are the following: 

(1) Provides the goods and services 

within normal business operations; 

(2) Provides similar goods or services 

to many different purchasers; 

(3) Normally operates in a competitive 

environment; 


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(4) Provides goods or services that are 

ancillary to the operation of the Federal 

program; and 

(5) Is not subject to compliance 

requirements of the Federal program as 

a result of the agreement, though similar 

requirements may apply for other 

reasons. 

(d) If a State is a recipient of such 

funds, the State may establish a lower 

limit than is provided in paragraph (a) 

of this section for salaries and bonuses 

of those receiving salaries and bonuses 

from a subrecipient of such funds, 

taking into account factors including the 

relative cost of living in the State, the 

compensation levels for comparable 

State or local government employees, 

and the size of the organizations that 

administer the Federal programs 

involved. 

(e) 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 does not exceed the 

prescribed limit in paragraph (a) of this 

section. 

§ 683.295 Is earning of profit allowed 

under the Workforce Innovation and 

Opportunity Act? 

(a)(1) Under secs. 121(d) and 134(b) of 

WIOA, for-profit entities are eligible to 

be one-stop operators, service providers, 

and eligible training providers. 

(2) Where for-profit entities are onestop operators, service providers, and 

eligible training providers, and those 

entities are recipients of Federal 

financial assistance, the recipient or 

subrecipient and the for-profit entity 

must follow 2 CFR 200.323. 

(3) Where for-profit entities are onestop operators, service providers, and 

eligible training providers, and those 

entities are providing services under a 

contract, profit is allowable, and the 

requirements of 2 CFR 200.323 apply. 

(b) For programs authorized by other 

sections of WIOA, 2 CFR 200.400(g) 

prohibits earning and keeping of profit 

in Federal financial assistance unless 

expressly authorized by the terms and 

conditions of the Federal award. 

(c) Income earned by a public or 

private nonprofit entity may be retained 

by such entity only if such income is 

used to continue to carry out the 

program. (WIOA sec. 194(7)). 

Subpart C—Reporting Requirements 

§ 683.300 What are the reporting 

requirements for programs funded under 

the Workforce Innovation and Opportunity 

Act? 

(a) General. All States and other direct 

grant recipients must report financial, 

participant, and other performance data 

in accordance with instructions issued 

by the Secretary. Reports, records, 

plans, or any other data required to be 

submitted or made available must, to 

the extent practicable, be submitted or 

made available through electronic 

means. Reports will not be required to 

be submitted more frequently than 

quarterly (unless otherwise specified by 

Congress) within a time period specified 

in the reporting instructions. 

(b) Subrecipient reporting. (1) For the 

annual eligible training provider 

performance reports described in 

§ 677.230 of this chapter and local area 

performance reports described in 

§ 677.205 of this chapter, the State must 

require the template developed under 

WIOA sec. 116(d)(1) to be used. 

(2) For financial reports and 

performance reports other than those 

described in paragraph (b)(1) of this 

section, a State or other grant recipient 

may impose different forms or formats, 

shorter due dates, and more frequent 

reporting requirements on 

subrecipients. 

(3) If a State intends to impose 

different reporting requirements on 

subrecipients, it must describe those 

reporting requirements in its State 

WIOA Plan. 

(c) Financial reports. (1) Each grant 

recipient must submit financial reports 

on a quarterly basis. 

(2) Local Boards will submit quarterly 

financial reports to the Governor. 

(3) Each State will submit to the 

Secretary a summary of the reports 

submitted to the Governor pursuant to 

paragraph (c)(2) of this section. 

(4) Reports must include cash on 

hand, obligations, expenditures, any 

income or profits earned, including 

such income or profits earned by 

subrecipients, indirect costs, recipient 

share of expenditures and any 

expenditures incurred (such as stand-in 

costs) by the recipient that are otherwise 

allowable except for funding 

limitations. 

(5) Reported expenditures, matching 

funds, and program income, including 

any profits earned, must be reported on 

the accrual basis of accounting and 

cumulative by fiscal year of 

appropriation. If the recipient’s 

accounting records are not normally 

kept on the accrual basis of accounting, 

the recipient must develop accrual 

information through an analysis of the 

documentation on hand. 

(d) Performance reports. (1) States 

must submit an annual performance 

report for each of the core workforce 

programs administered under WIOA as 

required by sec. 116(d) of WIOA and in 

accordance with 20 CFR part 667, 

subpart A. 

(2) For all programs authorized under 

subtitle D of WIOA, each grant recipient 

must complete reports on performance 

measures or goals specified in its grant 

agreement. 

(e) Due date. (1) For the core 

programs, performance reports are due 

on the date set forth in guidance. 

(2) Financial reports and all 

performance and data reports not 

described in paragraph (e)(1) of this 

section 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 expiration of 

a period of performance or period of 

fund availability (whichever comes first) 

and/or termination of the grant. 

(f) Format. All reports whenever 

practicable should be collected, 

transmitted, and stored in open and 

machine readable formats. 

(g) Systems compatibility. States and 

grant recipients will develop strategies 

for aligning data systems based upon 

guidelines issued by the Secretary of 

Labor and the Secretary of Education. 

Subpart D—Oversight and Resolution 

of Findings 

§ 683.400 What are the Federal and State 

monitoring and oversight responsibilities? 

(a) The Secretary is authorized to 

monitor all recipients and subrecipients 

of all Federal financial assistance 

awarded and funds expended under 

title I of WIOA and Wagner-Peyser to 

determine compliance with the Acts 

and Department regulations, and may 

investigate any matter deemed 

necessary to determine such 

compliance. Federal oversight will be 

conducted primarily at the recipient 

level. 

(b) As funds allow, in each fiscal year, 

the Secretary will also conduct in-depth 

reviews in several States, including 

financial and performance monitoring, 

to assure that funds are spent in 

accordance with the Acts. 

(c)(1) Each recipient and subrecipient 

must monitor grant-supported activities 

in accordance with 2 CFR part 200. 

(2) In the case of grants under secs. 

128 and 133 of WIOA, the Governor 

must develop a State monitoring system 

that meets the requirements of 

§ 683.410(b). The Governor must 


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monitor Local Boards and regions 

annually for compliance with applicable 

laws and regulations in accordance with 

the State monitoring system. Monitoring 

must include an annual review of each 

local area’s compliance with 2 CFR part 

200. 

(d) Documentation of monitoring, 

including monitoring reports and audit 

work papers, conducted under 

paragraph (c) of this section, along with 

corrective action plans, must be made 

available for review upon request of the 

Secretary, Governor, or a representative 

of the Federal government authorized to 

request the information. 

§ 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? 

(a) Each recipient and subrecipient of 

funds under title I of WIOA and under 

Wagner-Peyser must conduct regular 

oversight and monitoring of its WIOA 

and Wagner-Peyser program(s) and 

those of its subrecipients and 

contractors as required under title I of 

WIOA and Wagner-Peyser, as well as 

under 2 CFR part 200, including 2 CFR 

200.327, 200.328, 200.330, 200.331, and 

Department exceptions at 2 CFR part 

2900, in order to: 

(1) Determine that expenditures have 

been made against the proper cost 

categories and within the cost 

limitations specified in the Act and the 

regulations in this part; 

(2) Determine whether there is 

compliance with other provisions of the 

Act and the WIOA regulations and other 

applicable laws and regulations; 

(3) Assure compliance with 2 CFR 

part 200; and 

(4) Determine compliance with the 

nondiscrimination, disability, and equal 

opportunity requirements of sec. 188 of 

WIOA, including the Assistive 

Technology Act of 1998 (29 U.S.C. 

3003). 

(b) State roles and responsibilities for 

grants under secs. 128 and 133 of 

WIOA: 

(1) The Governor is responsible for 

the development of the State monitoring 

system. The Governor must be able to 

demonstrate, through a monitoring plan 

or otherwise, that the State monitoring 

system meets the requirements of 

paragraph (b)(2) of this section. 

(2) The State monitoring system must: 

(i) Provide for annual on-site 

monitoring reviews of local areas’ 

compliance with 2 CFR part 200, as 

required by sec. 184(a)(3) of WIOA; 

(ii) Ensure that established policies to 

achieve program performance and 

outcomes meet the objectives of the Act 

and the WIOA regulations; 

(iii) Enable the Governor to determine 

if subrecipients and contractors have 

demonstrated substantial compliance 

WIOA and Wagner-Peyser requirements; 

(iv) Enable the Governor to determine 

whether a local plan will be 

disapproved for failure to make 

acceptable progress in addressing 

deficiencies, as required in sec. 108(e) of 

WIOA; and 

(v) Enable the Governor to ensure 

compliance with the 

Nondiscrimination, disability, and equal 

opportunity requirements of sec. 188 of 

WIOA, including the Assistive 

Technology Act of 1998 (29 U.S.C. 

3003). 

(3) The State must conduct an annual 

on-site monitoring review of each local 

area’s compliance with 2 CFR part 200, 

as required by sec. 184(a)(4) of WIOA. 

(4) The Governor must require that 

prompt corrective action be taken if any 

substantial violation of standards 

identified in paragraphs (b)(2) or (3) of 

this section is found (WIA sec. 

184(a)(5)). 

(5) The Governor must impose the 

sanctions provided in secs. 184(b)-(c) of 

WIOA in the event of a subrecipient’s 

failure to take required corrective action 

required under paragraph (b)(4) of this 

section. 

(6) The Governor may issue additional 

requirements and instructions to 

subrecipients on monitoring activities. 

(7) The Governor must certify to the 

Secretary every 2 years that: 

(i) The State has implemented 2 CFR 

part 200; 

(ii) The State has monitored local 

areas to ensure compliance with 2 CFR 

part 200, including annual certifications 

and disclosures as outlined in 2 CFR 

200.113, Mandatory Disclosures. Failure 

to do so may result in remedies 

described under 2 CFR 200.338, 

including suspension and debarment; 

and 

(iii) The State has taken appropriate 

corrective action to secure such 

compliance (WIOA secs. 184 and 188). 

§ 683.420 What procedures apply to the 

resolution of findings arising from audits, 

investigations, monitoring, and oversight 

reviews? 

(a) Resolution of subrecipient-level 

findings. (1) The Governor or direct 

grant recipient is responsible for 

resolving findings that arise from the 

monitoring reviews, investigations, 

other Federal monitoring reviews, and 

audits (including under 2 CFR part 200) 

of subrecipients awarded funds through 

title I of WIOA or Wagner-Peyser. 

(i) A State or direct grant recipient 

must utilize the written monitoring and 

audit resolution, debt collection and 

appeal procedures that it uses for other 

Federal grant programs. 

(ii) If a State or direct grant recipient 

does not have such written procedures, 

it must prescribe standards and 

procedures to be used for this grant 

program. 

(2) For subrecipients awarded funds 

through a recipient of grant funds under 

subtitle D of title I of WIOA, the direct 

recipient of the grant funds must have 

written monitoring and resolution 

procedures in place that are consistent 

with 2 CFR part 200. 

(b) Resolution of State and other 

direct recipient-level findings. (1) The 

Secretary is responsible for resolving 

findings that arise from Federal audits, 

monitoring reviews, investigations, 

incident reports, and audits under 2 

CFR part 200 for direct recipients of 

Federal awards under title I of WIOA 

and Wagner Peyser. 

(2) The Secretary will use the 

Department audit resolution process, 

consistent with 2 CFR part 200 (and 

Department modifications at 2 CFR part 

2900), and Grant Officer Resolution 

provisions of § 683.440, as appropriate. 

(3) A final determination issued by a 

Grant Officer under this process may be 

appealed to the DOL Office of 

Administrative Law Judges under the 

procedures at § 683.800. 

(c) Resolution of nondiscrimination 

findings. Findings arising from 

investigations or reviews conducted 

under nondiscrimination laws will be 

resolved in accordance with WIOA sec. 

188 of WIOA and the Department of 

Labor nondiscrimination regulations 

implementing sec. 188 of WIOA, 

codified at 29 CFR part 37. 

§ 683.430 How does the Secretary resolve 

investigative and monitoring findings? 

(a) As a result of an investigation, onsite visit, other monitoring, or an audit 

(i.e., Single Audit, OIG Audit, GAO 

Audit, or other audit), the Secretary will 

notify the direct recipient of the Federal 

award of the findings of the 

investigation and give the direct 

recipient a period of time (not more 

than 60 days) to comment and to take 

appropriate corrective actions. 

(1) Adequate resolution. The Grant 

Officer in conjunction with the Federal 

project officer, reviews the complete file 

of the monitoring review, monitoring 

report, or final audit report and the 

recipient’s response and actions under 

this paragraph (a). The Grant Officer’s 

review takes into account the sanction 

provisions of secs. 184(b)–(c) of WIOA. 

If the Grant Officer agrees with the 

recipient’s handling of the situation, the 

Grant Officer so notifies the recipient. 


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This notification constitutes final 

agency action. 

(2) Inadequate resolution. If the direct 

recipient’s response and actions to 

resolve the findings are found to be 

inadequate, the Grant Officer will begin 

the Grant Officer resolution process 

under § 683.440. 

(b) Audits from 2 CFR part 200 will 

be resolved through the Grant Officer 

resolution process, as discussed in 

§ 683.440. 

§ 683.440 What is the Grant Officer 

resolution process? 

(a) General. When the Grant Officer is 

dissatisfied with the a recipient’s 

disposition of an audit or other 

resolution of findings (including those 

arising out of site visits, incident reports 

or compliance reviews), or with the 

recipient’s response to findings 

resulting from investigations or 

monitoring reports, the initial and final 

determination process as set forth in 

this section is used to resolve the 

matter. 

(b) Initial determination. The Grant 

Officer makes an initial determination 

on the findings for both those matters 

where there is agreement and those 

where there is disagreement with the 

recipient’s resolution, including the 

allowability of questioned costs or 

activities. This initial determination is 

based upon the requirements of WIOA, 

Wagner-Peyser, and applicable 

regulations, and the terms and 

conditions of the grants, contracts, or 

other agreements under the award. 

(c) Informal resolution. Except in an 

emergency situation, when the Secretary 

invokes the authority described in sec. 

184(e) of WIOA, the Grant Officer may 

not revoke a recipient’s grant in whole 

or in part, nor institute corrective 

actions or sanctions, without first 

providing the recipient with an 

opportunity to present documentation 

or arguments to resolve informally those 

matters in dispute contained in the 

initial determination. The initial 

determination must provide for an 

informal resolution period of at least 60 

days from issuance of the initial 

determination. If the matters are 

resolved informally, the Grant Officer 

must issue a final determination under 

paragraph (d) of this section which 

notifies the parties in writing of the 

nature of the resolution and may close 

the file. 

(d) Final determination. (1) Upon 

completion of the informal resolution 

process, the Grant Officer provides each 

party with a written final determination 

by certified mail, return receipt 

requested. For audits of recipient-level 

entities and other recipients which 

receive WIOA funds directly from the 

Department, ordinarily, the final 

determination is issued not later than 

180 days from the date that the Office 

of Inspector General (OIG) issues the 

final approved audit report to the 

Employment and Training 

Administration. For audits of 

subrecipients conducted by the OIG, 

ordinarily the final determination is 

issued not later than 360 days from the 

date the OIG issues the final approved 

audit report to ETA. 

(2) A final determination under this 

paragraph (d) must: 

(i) Indicate whether efforts to resolve 

informally matters contained in the 

initial determination have been 

unsuccessful; 

(ii) List those matters upon which the 

parties continue to disagree; 

(iii) List any modifications to the 

factual findings and conclusions set 

forth in the initial determination and 

the rationale for such modifications; 

(iv) Establish a debt, if appropriate; 

(v) Require corrective action, when 

needed; 

(vi) Determine liability, method of 

restitution of funds, and sanctions; and 

(vii) Offer an opportunity for a 

hearing in accordance with § 683.800. 

(3) Unless a hearing is requested, a 

final determination under this 

paragraph (d) is final agency action and 

is not subject to further review. 

Subpart E—Pay-for-Performance 

Contract Strategies 

§ 683.500 What is a Workforce Innovation 

and Opportunity Act Pay-for-Performance 

contract strategy? 

(a) A WIOA Pay-for-Performance 

contract strategy is a specific type of 

performance-based contract strategy that 

has four distinct characteristics: 

(1) It is a strategy to use WIOA Payfor-Performance contracts as they are 

described in § 683.510; 

(2) It must include the identification 

of the problem space and target 

populations for which a local area will 

pursue a WIOA Pay-for-Performance 

contract strategy; the outcomes the local 

area would hope to achieve through a 

Pay-for-Performance contract relative to 

baseline performance; the acceptable 

cost to government associated with 

implementing such a strategy; and a 

feasibility study to determine whether 

the intervention is suitable for a WIOA 

Pay-for-Performance contracting 

strategy; 

(3) It must include a strategy for 

independently validating the 

performance outcomes achieved under 

each contract within the strategy prior 

to payment occurring; 

(4) It must include a description of 

how the State or 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. 

(b) The WIOA Pay-for-Performance 

contract strategy must be developed in 

accordance with guidance issued by the 

Secretary. 

§ 683.510 What is a Workforce Innovation 

and Opportunity Act Pay-for-Performance 

contract? 

(a) Pay-for-Performance contract. A 

WIOA Pay-for-Performance contract is a 

type of Performance-Based contract. 

(b) Applicability. WIOA Pay-forPerformance contracts may only be 

entered into when they are a part of a 

WIOA Pay-for-Performance contract 

strategy described in § 683.500. 

(c) Cost-plus percentage contracts. 

Use of cost-plus percentage contracts is 

prohibited. (2 CFR 200.323.) 

(d) Services provided. WIOA Pay-forPerformance contracts must be used to 

provide adult training services 

described in sec. 134(c)(3) of WIOA or 

youth activities described in sec. 

129(c)(2) of WIOA. 

(e) Structure of payment. WIOA Payfor-Performance contracts 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 

for target populations within a defined 

timetable. Outcomes must be 

independently validated, as described 

in §§ 683.500 and 683.510(j), prior to 

disbursement of funds. 

(f) Eligible service providers. WIOA 

Pay-for-Performance contracts may be 

entered into with eligible service 

providers, which may include local or 

national community-based 

organizations or intermediaries, 

community colleges, or other training 

providers that are eligible under sec. 

122 or 123 of WIOA (as appropriate). 

(WIOA sec. 3(47)(A)) 

(g) Target populations. WIOA Pay-forPerformance contracts must identify 

target populations as specified by the 

Local Board, which may include 

individuals with barriers to 

employment. (WIOA sec. 3(47)(A)) 

(h) Bonus and incentive payments. 

WIOA Pay-for-Performance contracts 

may include bonus and/or incentive 

payments for the contractor, based on 

achievement of specified levels of 

performance. 

(1) Bonus payments for achieving 

outcomes above and beyond those 

specified in the contract must be used 


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by the service provider to expand 

capacity to provide effective training. 

(2) Incentive payments must be 

consistent with incentive payments for 

performance-based contracting as 

described in the Federal Acquisition 

Regulations. 

(i) Performance reporting. 

Performance outcomes achieved under 

the WIOA Pay-for-Performance contract, 

measured against the levels of 

performance specified in the contract, 

must be tracked by the local area and 

reported to the State pursuant to WIOA 

sec. 116(d)(2)(K) and § 677.160. 

(j) Validation. WIOA Pay-forPerformance contracts must include 

independent validation of the 

contractor’s achievement of the 

performance benchmarks specified in 

the contract. (WIOA sec. 3(47)(B)) This 

validation must be based on highquality, reliable, and verified data. 

(k) Guidance. The Secretary may issue 

additional guidance related to use of 

WIOA Pay-for-Performance contracts. 

§ 683.520 What funds can be used to 

support Workforce Innovation and 

Opportunity Act Pay-for-Performance 

contract strategies? 

(a) For WIOA Pay-for-Performance 

contract strategies providing adults and 

dislocated worker training services, 

funds allocated under secs. 133(b)(2)–(3) 

of WIOA can be used. For WIOA Payfor-Performance contract strategies 

providing youth activities, funds 

allocated under WIOA sec. 128(b) can 

be used. 

(b) No more than 10 percent of the 

total local adult and dislocated worker 

allotments can be expended on the 

implementation of WIOA Pay-forPerformance 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-for-Performance contract 

strategies for youth training services and 

other activities described in secs. 

129(c)(1)–(2) of WIOA. 

§ 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 

authorizes funds used for WIOA Payfor-Performance contract strategies to be 

available until expended. Under WIOA 

sec. 3(47)(C), funds that are obligated 

but not expended due to a contractor 

not achieving the levels of performance 

specified in a WIOA Pay-forPerformance contract may be reallocated 

for further activities related to WIOA 

Pay-for-Performance contract strategies 

only. The Secretary will issue additional 

guidance related to the funds 

availability and reallocation. 

§ 683.540 What is the State’s role in 

assisting local areas in using Workforce 

Innovation and Opportunity Act Pay-forPerformance contract strategies? 

(a) Using funds from the Governor’s 

reserve the State may: 

(1) Provide technical assistance to 

local areas including assistance with 

structuring WIOA Pay-for-Performance 

contracting strategies, performance data 

collection, meeting performance data 

entry requirements, and identifying 

levels of performance. 

(2) Conduct evaluations of local 

WIOA Pay-for-Performance contracting 

strategies, if appropriate. 

(b) Using non-Federal funds, 

Governors may establish incentives for 

Local Boards to implement WIOA Payfor-Performance contract strategies as 

described in this subpart. 

(c) In the case of a State in which local 

areas are implementing WIOA Pay-forPerformance contract strategies, the 

State must: 

(1) Collect and report to DOL data on 

the performance of service providers 

entering into WIOA Pay-forPerformance contracts, measured 

against the levels of performance 

benchmarks specified in the contracts, 

pursuant to sec. 116(d)(2)(K) of WIOA 

and § 677.160 and in accordance with 

any additional guidance issued by the 

Secretary. 

(2) Collect and report to DOL State 

and/or local evaluations of the design 

and performance of the WIOA Pay-forPerformance contract strategies, and, 

where possible, the level of satisfaction 

with the strategies among employers 

and participants benefitting from the 

strategies, pursuant to sec. 116(d)(2)(K) 

of WIOA and § 677.160, and in 

accordance with any guidance issued by 

the Secretary. 

(3) Monitor local areas’ use of WIOA 

Pay-for-Performance contract strategies 

to ensure compliance with the five 

required elements listed in § 683.500, 

the contract specifications in § 683.510, 

and State procurement policies. 

(4) Monitor local areas’ expenditures 

to ensure that no more than 10 percent 

of a local area’s adult and dislocated 

worker allotment and no more than 10 

percent of a local area’s youth 

allotments is expended on WIOA Payfor-Performance contract strategies. 

(d) The Secretary will issue additional 

guidance on State roles in WIOA Payfor-Performance contract strategies. 

Subpart F—Grievance Procedures, 

Complaints, and State Appeals 

Processes 

§ 683.600 What local area, State, and direct 

recipient grievance procedures must be 

established? 

(a) Each local area, State, outlying 

area, and direct recipient of funds under 

title I of WIOA, except for Job Corps, 

must establish and maintain a 

procedure for participants and other 

interested parties to file grievances and 

complaints alleging violations of the 

requirements of title I of WIOA, 

according to the requirements of this 

section. The grievance procedure 

requirements applicable to Job Corps are 

set forth at 20 CFR 686.1050. 

(b) Each local area, State, and direct 

recipient must: 

(1) Provide information about the 

content of the grievance and complaint 

procedures required by this section to 

participants and other interested parties 

affected by the local Workforce 

Investment System, including one-stop 

partners and service providers; 

(2) Require that every entity to which 

it awards title I funds provide the 

information referred to in paragraph 

(b)(1) of this section to participants 

receiving title I-funded services from 

such entities; and 

(3) Must make reasonable efforts to 

assure that the information referred to in 

paragraph (b)(1) of this section will be 

understood by affected participants and 

other individuals, including youth and 

those who are limited-English speaking 

individuals. Such efforts must comply 

with the language requirements of 29 

CFR 37.35 regarding the provision of 

services and information in languages 

other than English. 

(c) Local area procedures must 

provide: 

(1) A process for dealing with 

grievances and complaints from 

participants and other interested parties 

affected by the local Workforce 

Investment System, including one-stop 

partners and service providers; 

(2) An opportunity for an informal 

resolution and a hearing to be 

completed within 60 days of the filing 

of the grievance or complaint; 

(3) A process which allows an 

individual alleging a labor standards 

violation to submit the grievance to a 

binding arbitration procedure, if a 

collective bargaining agreement 

covering the parties to the grievance so 

provides; and 

(4) An opportunity for a local level 

appeal to a State entity when: 

(i) No decision is reached within 60 

days; or 

(ii) Either party is dissatisfied with 

the local hearing decision. 


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(d) State procedures must provide: 

(1) A process for dealing with 

grievances and complaints from 

participants and other interested parties 

affected by the statewide Workforce 

Investment programs; 

(2) A process for resolving appeals 

made under paragraph (c)(4) of this 

section; 

(3) A process for remanding 

grievances and complaints related to the 

local Workforce Innovation and 

Opportunity Act programs to the local 

area grievance process; and 

(4) An opportunity for an informal 

resolution and a hearing to be 

completed within 60 days of the filing 

of the grievance or complaint; and 

(5) An opportunity for appeal to the 

Secretary under the circumstances 

described in § 683.610(a). 

(e) Procedures of direct recipients 

must provide: 

(1) A process for dealing with 

grievance and complaints from 

participants and other interested parties 

affected by the recipient’s Workforce 

Innovation and Opportunity Act 

programs; and 

(2) An opportunity for an informal 

resolution and a hearing to be 

completed within 60 days of the filing 

of the grievance or complaint. 

(f) The remedies that may be imposed 

under local, State and direct recipient 

grievance procedures are enumerated at 

WIOA sec. 181(c)(3). 

(g)(1) The provisions of this section 

on grievance procedures do not apply to 

discrimination complaints brought 

under WIOA sec. 188 and/or 29 CFR 

part 37. Such complaints must be 

handled in accordance with the 

procedures set forth in that regulatory 

part. 

(2) Questions about or complaints 

alleging a violation of the 

nondiscrimination provisions of WIOA 

sec. 188 may be directed or mailed to 

the Director, Civil Rights Center, U.S. 

Department of Labor, Room N4123, 200 

Constitution Avenue NW., Washington, 

DC 20210, for processing. 

(h) Nothing in this subpart precludes 

a grievant or complainant from pursuing 

a remedy authorized under another 

Federal, State or local law. 

§ 683.610 What processes does the 

Secretary use to review grievances and 

complaints of title I recipients? 

(a) The Secretary investigates 

allegations arising through the grievance 

procedures described in § 683.600 

when: 

(1) A decision on a grievance or 

complaint under § 683.600(d) has not 

been reached within 60 days of receipt 

of the grievance or complaint or within 

60 days of receipt of the request for 

appeal of a local level grievance and 

either party appeals to the Secretary; or 

(2) A decision on a grievance or 

complaint under § 683.600(d) has been 

reached and the party to which such 

decision is adverse appeals to the 

Secretary. 

(b) The Secretary must make a final 

decision on an appeal under paragraph 

(a) of this section no later than 120 days 

after receiving the appeal. 

(c) Appeals made under paragraph 

(a)(2) of this section must be filed 

within 60 days of the receipt of the 

decision being appealed. Appeals made 

under paragraph (a)(1) of this section 

must be filed within 120 days of the 

filing of the grievance with the State, or 

the filing of the appeal of a local 

grievance with the State. All appeals 

must be submitted by certified mail, 

return receipt requested, to the 

Secretary, U.S. Department of Labor, 

200 Constitution Ave. NW., 

Washington, DC 20210, Attention: 

ASET. A copy of the appeal must be 

simultaneously provided to the 

appropriate ETA Regional 

Administrator and the opposing party. 

(d) Except for complaints arising 

under WIOA sec. 184(f) or sec. 188, 

grievances or complaints made directly 

to the Secretary will be referred to the 

appropriate State or local area for 

resolution in accordance with this 

section, unless the Department notifies 

the parties that the Department of Labor 

will investigate the grievance under the 

procedures at § 683.430. Discrimination 

complaints brought under WIOA sec. 

184(f) or sec. 188 or 29 CFR part 37 will 

be referred to the Director of the Civil 

Rights Center. 

(e) Complaints and grievances from 

participants receiving services under the 

Wagner-Peyser Act will follow the 

procedures outlined at 20 CFR 658. 

§ 683.620 How are complaints and reports 

of criminal fraud and abuse addressed 

under the Workforce Innovation and 

Opportunity Act? 

(a) Information and complaints 

involving criminal fraud, waste, abuse 

or other criminal activity must be 

reported immediately through the 

Department’s Incident Reporting System 

to the DOL Office of Inspector General, 

Office of Investigations, Room S5514, 

200 Constitution Avenue NW., 

Washington, DC 20210, or to the 

corresponding Regional Inspector 

General for Investigations, with a copy 

simultaneously provided to the 

Employment and Training 

Administration. The Hotline number is 

1–800–347–3756. The Web site is 

http://www.oig.dol.gov/contact.htm. 

(b) Complaints of a non-criminal 

nature may be handled under the 

procedures set forth in § 683.600 or 

through the Department’s Incident 

Reporting System. 

§ 683.630 What additional appeal 

processes or systems must a State have for 

the Workforce Innovation and Opportunity 

Act program? 

(a) Non-designation of local areas: 

(1) The State must establish, and 

include in its State Plan, due process 

procedures which provide expeditious 

appeal to the State Board for a unit of 

general local government (including a 

combination of such units) or grant 

recipient that requests, but is not 

granted, initial or subsequent 

designation of an area as a local area 

under WIOA sec. 106(b)(2) or 106(b)(3) 

and 20 CFR 679.250. 

(2) These procedures must provide an 

opportunity for a hearing and prescribe 

appropriate time limits to ensure 

prompt resolution of the appeal. 

(3) If the appeal to the State Board 

does not result in designation, the 

appellant may request review by the 

Secretary under § 683.640. 

(b) Denial or termination of eligibility 

as a training provider: 

(1) A State must establish procedures 

which allow providers of training 

services the opportunity to appeal: 

(i) Denial of eligibility by a Local 

Board or the designated State agency 

under WIOA sec. 122(b), 122(c), or 

122(d). 

(ii) Termination of eligibility or other 

action by a Local Board or State agency 

under WIOA sec. 122(f); or 

(iii) Denial of eligibility as a provider 

of on-the-job training (OJT) or 

customized training by a one-stop 

operator under WIOA sec. 122(h). 

(2) Such procedures must provide an 

opportunity for a hearing and prescribe 

appropriate time limits to ensure 

prompt resolution of the appeal. 

(3) A decision under this State appeal 

process may not be appealed to the 

Secretary. 

(c) Testing and sanctioning for use of 

controlled substances. 

(1) A State must establish due process 

procedures, in accordance with WIOA 

sec. 181(f), which provide expeditious 

appeal for: 

(i) Participants in programs under title 

I subtitle B of WIOA subject to testing 

for use of controlled substances, 

imposed under a State policy 

established under WIOA sec. 181(f)(1); 

and 

(ii) Participants in programs under 

title I subtitle B of WIOA who are 

sanctioned, in accordance with WIOA 

sec. 181(f)(2), after testing positive for 


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the use of controlled substances, under 

the policy described in paragraph 

(c)(1)(i) of this section. 

(2) A decision under this State appeal 

process may not be appealed to the 

Secretary. 

§ 683.640 What procedures apply to the 

appeals of non-designation of local areas? 

(a) A unit of general local government 

(including a combination of such units) 

or grant recipient whose appeal of the 

denial of a request for initial or 

subsequent designation as a local 

workforce investment area to the State 

Board has not resulted in such 

designation, may appeal the State 

Board’s denial to the Secretary. 

(b) Appeals made under paragraph (a) 

of this section must be filed no later 

than 30 days after receipt of written 

notification of the denial from the State 

Board, and must be submitted by 

certified mail, return receipt requested, 

to the Secretary, U.S. Department of 

Labor, 200 Constitution Ave. NW., 

Washington, DC 20210, Attention: 

ASET. A copy of the appeal must be 

simultaneously provided to the State 

Board. 

(c) The appellant must establish that 

it was not accorded procedural rights 

under the appeal process set forth in the 

State Plan, or establish that it meets the 

requirements for designation in WIOA 

sec. 106(b)(2) or 106(b)(3) and 20 CFR 

679.250. 

(d) If the Secretary determines that the 

appellant has met its burden of 

establishing that it was not accorded 

procedural rights under the appeal 

process set forth in the State Plan, or 

that it meets the requirements for 

designation in WIOA sec. 106(b)(2) or 

106(b)(3) and 20 CFR 679.250, the 

Secretary may require that the area be 

designated as a local workforce 

investment area. In making this 

determination the Secretary may 

consider any comments submitted by 

the State Board in response to the 

appeal made under paragraph (a) of this 

section. 

(e) The Secretary must issue a written 

decision to the Governor and the 

appellant. 

§ 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? 

(a) A local area which has been found 

in substantial violation of WIOA title I, 

and has received notice from the 

Governor that either all or part of the 

local plan will be revoked or that a 

reorganization will occur, may appeal 

such sanctions to the Secretary under 

WIOA sec. 184(b). The appeal must be 

filed no later than 30 days after receipt 

of written notification of the revoked 

plan or imposed reorganization. 

(b) The sanctions described in 

paragraph (a) of this section do not 

become effective until: 

(1) The time for appeal has expired; 

or 

(2) The Secretary has issued the 

decision described in paragraph (e) of 

this section. 

(c) A local area which has failed to 

meet local performance accountability 

measures for 3 consecutive program 

years, and has received the Governor’s 

notice of intent to impose a 

reorganization plan, may appeal to the 

Governor to rescind or revise such plan, 

in accordance with 20 CFR 677.225. 

(d) Appeals to the Secretary made 

under paragraph (a) of this section must 

be submitted by certified mail, return 

receipt requested, to the Secretary, U.S. 

Department of Labor, 200 Constitution 

Ave. NW., Washington, DC 20210, 

Attention: ASET. A copy of the appeal 

must be simultaneously provided to the 

Governor. 

(e) The Secretary will notify the 

Governor and the appellant in writing of 

the Secretary’s decision under 

paragraph (a) of this section within 45 

days after receipt of the appeal. In 

making this determination the Secretary 

may consider any comments submitted 

by the Governor in response to the 

appeals. 

Subpart G—Sanctions, Corrective 

Actions, and Waiver of Liability 

§ 683.700 When can the Secretary impose 

sanctions and corrective actions on 

recipients and subrecipients of title I 

Workforce Innovation and Opportunity Act 

funds? 

(a)(1) Except for actions under WIOA 

secs. 116 and 188(a) or 29 CFR parts 31, 

32, 35, 37 and 49 CFR part 25, the Grant 

Officer must use the procedures 

outlined in § 683.440 before imposing a 

sanction on, or require corrective action 

by, recipients of funds under title I of 

WIOA. 

(2) To impose a sanction or corrective 

action for a violation of WIOA sec. 

188(a) the Department will use the 

procedures set forth in 29 CFR part 37. 

(3) To impose a sanction or corrective 

action for a violation of WIOA sec. 116 

the Department will use the procedures 

set forth in 20 CFR part 677. 

(b) States. When a Grant Officer 

determines that the Governor has not 

fulfilled its requirements under 2 CFR 

part 200, an audit, or a monitoring 

compliance review set forth at sec. 

184(a)(4) of WIOA and § 683.200(a), or 

has not taken corrective action to 

remedy a violation as required by WIOA 

secs. 184(a)(5) and 184(b)(1), the Grant 

Officer must require the Governor to 

impose the necessary corrective actions 

set forth at WIOA secs. 184(a)(5) and 

184(b)(1), or may require repayment of 

funds under WIOA sec. 184(c). If the 

Secretary determines it is necessary to 

protect the funds or ensure the proper 

operation of a program or activity, the 

Secretary may immediately suspend or 

terminate financial assistance in 

accordance with WIOA sec. 184(e). 

(c) Local areas. If the Governor fails to 

promptly take the actions specified in 

WIOA sec. 184(b)(1) when it determines 

that a local area has failed to comply 

with the requirements described in 

§ 683.720(a), and that the local area has 

not taken the necessary corrective 

action, the Grant Officer may impose 

such actions directly against the local 

area. 

(d) Direct grant recipients. When the 

Grant Officer determines that a direct 

grant recipient of subtitle D of title I of 

WIOA has not taken corrective action to 

remedy a substantial violation as the 

result of noncompliance with 2 CFR 

part 200, the Grant Officer may impose 

sanctions against the grant recipient. 

(e) Subrecipients. The Grant Officer 

may impose a sanction directly against 

a subrecipient, as authorized in WIOA 

sec. 184(d)(3) and 2 CFR 200.338. In 

such a case, the Grant Officer will 

inform the direct grant recipient of the 

action. 

§ 683.710 Who is responsible for funds 

provided under title I and Wagner-Peyser? 

(a) The recipient of the funds is 

responsible for all funds under its 

grant(s) awarded under WIOA title I and 

the Wagner-Peyser Act. 

(b)(1) The local government’s chief 

elected official(s) in a local workforce 

investment area is liable for any misuse 

of the WIOA grant funds allocated to the 

local area under WIOA secs. 128 and 

133, unless the chief elected official(s) 

reaches an agreement with the Governor 

to bear such liability. 

(2) When a local workforce area or 

region is composed of more than one 

unit of general local government, the 

liability of the individual jurisdictions 

must be specified in a written agreement 

between the chief elected officials. 

(3) When there is a change in the chief 

elected official(s), the Local Board is 

required to inform the new chief elected 

official(s), in a timely manner, of their 

responsibilities and liabilities as well as 

the need to review and update any 

written agreements among the chief 

elected official(s). 

(4) The use of a fiscal agent does not 

relieve the chief elected official, or 


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Governor if designated under paragraph 

(b)(1) of this section, of responsibility 

for any misuse of grant funds allocated 

to the local area under WIOA secs. 128 

and 133. 

§ 683.720 What actions are required to 

address the failure of a local area to comply 

with the applicable uniform administrative 

provisions? 

(a) If, as part of the annual on-site 

monitoring of local areas, the Governor 

determines that a local area is not in 

compliance with 2 CFR part 200, 

including the failure to make the 

required disclosures in accordance with 

2 CFR 200.113 or the failure to address 

all violations of Federal criminal law 

involving fraud, bribery or gratuity 

violations (2 CFR part 180), the 

Governor must: 

(1) Require corrective action to secure 

prompt compliance; and 

(2) Impose the sanctions provided for 

at WIOA sec. 184(b) if the Governor 

finds that the local area has failed to 

take timely corrective action. 

(b) An action by the Governor to 

impose a sanction against a local area, 

in accordance with this section, may be 

appealed to the Secretary in accordance 

with § 683.650. 

(c)(1) If the Secretary finds that the 

Governor has failed to monitor and 

certify compliance of local areas with 

the administrative requirements under 

WIOA sec. 184(a), or that the Governor 

has failed to take the actions promptly 

required upon a determination under 

paragraph (a) of this section, the 

Secretary must take the action described 

in § 683.700(b). 

(2) If the Governor fails to take the 

corrective actions required by the 

Secretary under paragraph (c)(1) of this 

section, the Secretary may immediately 

suspend or terminate financial 

assistance under WIOA sec. 184(e). 

§ 683.730 When can the Secretary waive 

the imposition of sanctions? 

(a)(1) A recipient of title I funds may 

request that the Secretary waive the 

imposition of sanctions authorized 

under WIOA sec. 184. 

(2) A Grant officer may approve the 

waiver described in paragraph (a)(1) of 

this section if the grant officer finds that 

the recipient has demonstrated 

substantial compliance with the 

requirements of WIOA sec. 184(d)(2). 

(b)(1) When the debt for which a 

waiver is request was established in a 

non-Federal resolution proceeding, the 

resolution report must accompany the 

waiver request. 

(2) When the waiver request is made 

during the ETA Grant Officer resolution 

process, the request must be made 

during the informal resolution period 

described in § 683.440(c). 

(c) A waiver of the recipient’s liability 

must be considered by the Grant Officer 

only when: 

(1) The misexpenditure of WIOA 

funds occurred at a subrecipient’s level; 

(2) The misexpenditure was not due 

to willful disregard of the requirements 

of title I of the Act, gross negligence, 

failure to observe accepted standards of 

administration, and did not constitute 

fraud or failure to make the required 

disclosures in accordance with 2 CFR 

part 200.113 addressing all violations of 

Federal criminal law involving fraud, 

bribery or gratuity violations (2 CFR part 

180 and 31 U.S.C 3321) 

(3) If fraud did exist, was perpetrated 

against the recipient/subrecipients, and: 

(i) The recipient/subrecipients 

discovered, investigated, reported, and 

cooperated in any prosecution of the 

perpetrator of the fraud; and 

(ii) After aggressive debt collection 

action, it has been documented that 

further attempts at debt collection from 

the perpetrator of the fraud would be 

inappropriate or futile; 

(4) The recipient has issued a final 

determination which disallows the 

misexpenditure, the recipient’s appeal 

process has been exhausted, and a debt 

has been established; and 

(5) The recipient provides 

documentation to demonstrate that it 

has substantially complied with the 

requirements of WIOA sec. 184(d)(2) 

and this section. 

(d) The recipient will not be released 

from liability for misspent funds under 

the determination required by WIOA 

sec. 184(d) unless the Grant Officer 

determines that further collection 

action, either by the recipient or 

subrecipient(s), would be inappropriate 

or would prove futile. 

§ 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? 

(a) The recipient may request advance 

approval from the Grant Officer for 

contemplated corrective actions, 

including debt collection actions, which 

the recipient plans to initiate or to 

forego. The recipient’s request must 

include a description and an assessment 

of all actions taken to collect the 

misspent funds. 

(b) Based on the recipient’s request, 

the Grant Officer may determine that the 

recipient may forego certain debt 

collection actions against a subrecipient 

when: 

(1) The subrecipient meets the criteria 

set forth in WIOA sec. 184(d)(2); 

(2) The misexpenditure of funds: 

(i) Was not made by that subrecipient 

but by an entity that received WIOA 

funds from that subrecipient; 

(ii) Was not a violation of WIOA sec. 

184(d)(1), did not constitute fraud, or 

failure to disclose, in a timely manner, 

all violations of Federal criminal law 

involving fraud, bribery, or gratuity 

violations potentially affecting the 

Federal award; or 

(iii) If fraud did exist, 

(A) It was perpetrated against the 

subrecipient; 

(B) The subrecipient discovered, 

investigated, reported, and cooperated 

in any prosecution of the perpetrator of 

the fraud; and 

(C) After aggressive debt collection 

action, it has been documented that 

further attempts at debt collection from 

the perpetrator of the fraud would be 

inappropriate or futile; 

(3) A determination which disallows 

the misexpenditure and establishes a 

debt has been issued at the appropriate 

level; and, 

(4) Further debt collection action by 

that subrecipient or the recipient would 

be either inappropriate or futile. 

§ 683.750 What procedure must be used 

for administering the offset/deduction 

provisions of the Workforce Innovation and 

Opportunity Act? 

(a)(1) For misexpenditures by direct 

recipients of title I and Wagner-Peyser 

formula funds the Grant Officer may 

determine that a debt, or a portion 

thereof, may be offset against amounts 

that are allotted to the recipient. 

Recipients must submit a written 

request for an offset to the Grant Officer. 

Generally, the Grant Officer will apply 

the offset against amounts that are 

available at the recipient level for 

administrative costs. 

(2) The Grant Officer may approve an 

offset request, under paragraph (a)(1) of 

this section, if the misexpenditures were 

not due to willful disregard of the 

requirements of the Act and regulations, 

fraud, gross negligence, failure to 

observe accepted standards of 

administration or a pattern of 

misexpenditure. 

(b) For subrecipient misexpenditures 

that were not due to willful disregard of 

the requirements of the Act and 

regulations, fraud, gross negligence, 

failure to observe accepted standards of 

administration or a pattern of 

misexpenditure, if the Grant Officer has 

required the State to repay or offset such 

amount, the State may deduct an 

amount equal to the misexpenditure 

from the subrecipient’s allocation of the 

program year after the determination 

was made. Deductions are to be made 


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from funds reserved for the 

administrative costs of the local 

programs involved, as appropriate. 

(c) If offset is granted, the debt will 

not be fully satisfied until the Grant 

Officer reduces amounts allotted to the 

recipient by the amount of the 

misexpenditure. 

(d) For recipients of funds under title 

I and Wagner-Peyser funds, a direct 

recipient may not make a deduction 

under paragraph (b) of this section until 

the State has taken appropriate 

corrective action to ensure full 

compliance within the local area with 

regard to appropriate expenditure of 

WIOA funds. 

Subpart H—Administrative 

Adjudication and Judicial Review 

§ 683.800 What actions of the Department 

may be appealed to the Office of 

Administrative Law Judges? 

(a) An applicant for financial 

assistance under title I of WIOA who is 

dissatisfied by a determination not to 

award Federal financial assistance, in 

whole or in part, to such applicant; or 

a recipient, subrecipient, or a contractor 

against which the Grant Officer has 

directly imposed a sanction or 

corrective action under sec. 184 of 

WIOA, including a sanction against a 

State under 20 CFR part 677, may 

appeal to the U.S. Department of Labor, 

Office of Administrative Law Judges 

(OALJ) within 21 days of receipt of the 

final determination. 

(b) Failure to request a hearing within 

21 days of receipt of the final 

determination constitutes a waiver of 

the right to a hearing. 

(c) A request for a hearing under this 

subpart must specifically state those 

issues or findings in the final 

determination upon which review is 

requested. Issues or findings in the final 

determination not specified for review, 

or the entire final determination when 

no hearing has been requested within 

the 21 days, are considered resolved and 

not subject to further review. Only 

alleged violations of the Act, its 

regulations, the grant or other agreement 

under the Act raised in the final 

determination and the request for 

hearing are subject to review. 

(d) A request for a hearing must be 

transmitted by certified mail, return 

receipt requested, to the Chief 

Administrative Law Judge, U.S. 

Department of Labor, Suite 400, 800 K 

Street NW., Washington, DC 20001, 

with one copy to the Departmental 

official who issued the determination. 

(e) The procedures in this subpart 

apply in the case of a complainant who 

has engaged in the alternative dispute 

resolution process set forth in § 683.840, 

if neither a settlement was reached nor 

a decision issued within the 60 days, 

except that the request for hearing 

before the OALJ must be filed within 15 

days of the conclusion of the 60-day 

period provided in § 683.840. In 

addition to including the final 

determination upon which review is 

requested, the complainant must 

include a copy of any Stipulation of 

Facts and a brief summary of 

proceedings. 

§ 683.810 What rules of procedure apply to 

hearings conducted under this subpart? 

(a) Rules of practice and procedure. 

The rules of practice and procedure 

promulgated by the OALJ at subpart A 

of 29 CFR part 18, govern the conduct 

of hearings under this subpart. 

However, a request for hearing under 

this subpart is not considered a 

complaint to which the filing of an 

answer by the Department or a DOL 

agency or official is required. Technical 

rules of evidence will not apply to 

hearings conducted pursuant to this 

part. However, rules or principles 

designed to assure production of the 

most credible evidence available and to 

subject testimony to cross-examination 

will apply. 

(b) Prehearing procedures. In all 

cases, the Administrative Law Judge 

(ALJ) should encourage the use of 

prehearing procedures to simplify and 

clarify facts and issues. 

(c) Subpoenas. Subpoenas necessary 

to secure the attendance of witnesses 

and the production of documents or 

other items at hearings must be obtained 

from the ALJ and must be issued under 

the authority contained in WIOA sec. 

183(c), incorporating 15 U.S.C. 49. 

(d) Timely submission of evidence. 

The ALJ must not permit the 

introduction at the hearing of any 

documentation if it has not been made 

available for review by the other parties 

to the proceeding either at the time 

ordered for any prehearing conference, 

or, in the absence of such an order, at 

least 3 weeks prior to the hearing date. 

(e) Burden of production. The Grant 

Officer has the burden of production to 

support her or his decision. This burden 

is satisfied once the Grant Officer 

prepares and files an administrative file 

in support of the decision which must 

be made part of the record. Thereafter, 

the party or parties seeking to overturn 

the Grant Officer’s decision has the 

burden of persuasion. 

§ 683.820 What authority does the 

Administrative Law Judge have in ordering 

relief as an outcome of an administrative 

hearing? 

(a) In ordering relief the ALJ has the 

full authority of the Secretary under the 

Act, except as described in paragraph 

(b) of this section. 

(b) In grant selection appeals of 

awards funded under WIOA title I, 

subtitle D: 

(1) If the Administrative Law Judge 

rules, under § 683.800, that the 

appealing organization should have 

been selected for an award, the matter 

must be remanded to the Grant Officer. 

The Grant Officer must, within 10 

working days, determine whether the 

organization continues to meet the 

requirements of the applicable 

solicitation, whether the funds which 

are the subject of the ALJ’s decision will 

be awarded to the organization, and the 

timing of the award. In making this 

determination, the Grant Officer must 

take into account disruption to 

participants, disruption to grantees, and 

the operational needs of the program. 

(2) If the Administrative Law Judge 

rules that additional application review 

is required, the Grant Officer must 

implement that review and, if a new 

organization is selected, follow the steps 

laid out in paragraph (b)(1) of this 

section to determine whether the grant 

funds will be awarded to that 

organization. 

(3) In the event that the Grant Officer 

determines that the funds will not be 

awarded to the appealing organization 

for the reasons discussed in paragraph 

(b)(1) of this section, an organization 

which does not have an approved 

Negotiated Indirect Cost Rate Agreement 

will be awarded its reasonable 

application preparation costs. 

(4) If funds are awarded to the 

appealing organization, the Grant 

Officer will notify the current grantee 

within 10 days. In addition, the 

appealing organization is not entitled to 

the full grant amount but will only 

receive the funds remaining in the grant 

that have not been obligated by the 

current grantee through its operation of 

the grant and its subsequent closeout. 

(5) In the event that an organization, 

other than the appealing organization, is 

adversely effected by the Grant Officer’s 

determination upon completion of the 

additional application review under 

paragraph (b)(2) of this section, that 

organization may appeal that decision to 

the Office of Administrative Law Judges 

by following the procedures set forth in 

§ 683.800. 

(6) Any organization selected and/or 

funded under WIOA title I, subtitle D, 

is subject to having its award removed 


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if an ALJ decision so orders. As part of 

this process, the Grant Officer will 

provide instructions on transition and 

closeout to both the newly selected 

grantee and to the grantee whose 

position is affected or which is being 

removed. All awardees must agree to the 

provisions of this paragraph as a 

condition of accepting a grant award. 

§ 683.830 When will the Administrative 

Law Judge issue a decision? 

(a) The ALJ should render a written 

decision not later than 90 days after the 

closing of the record. 

(b) The decision of the ALJ constitutes 

final agency action unless, within 20 

days of the decision, a party dissatisfied 

with the ALJ’s decision has filed a 

petition for review with the 

Administrative Review Board (ARB) 

(established under Secretary’s Order No. 

02–2012), specifically identifying the 

procedure, fact, law or policy to which 

exception is taken. Any exception not 

specifically raised in the petition is 

deemed to have been waived. A copy of 

the petition for review must also be sent 

to the opposing party and if an 

applicant or recipient, to the Grant 

Officer and the Grant Officer’s Counsel 

at the time of filing. Unless the ARB, 

within 30 days of the filing of the 

petition for review, notifies the parties 

that the case has been accepted for 

review, the decision of the ALJ 

constitutes final agency action. Any case 

accepted by the ARB must be decided 

within 180 days of acceptance. If not so 

decided, the decision of the ALJ 

constitutes final agency action. 

§ 683.840 Is there an alternative dispute 

resolution process that may be used in 

place of an Office of Administrative Law 

Judges hearing? 

(a) The parties to a complaint which 

has been filed according to the 

requirements of § 683.800 may choose to 

waive their rights to an administrative 

hearing before the OALJ. Instead, they 

may choose to transfer the settlement of 

their dispute to an individual acceptable 

to all parties who will conduct an 

informal review of the stipulated facts 

and render a decision in accordance 

with applicable law. A written decision 

must be issued within 60 days after 

submission of the matter for informal 

review. 

(b) The waiver of the right to request 

a hearing before the OALJ described in 

paragraph (a) of this section will 

automatically be revoked if a settlement 

has not been reached or a written 

decision has not been issued within the 

60 days provided in paragraph (a) of this 

section. 

(c) The decision rendered under this 

informal review process will be treated 

as a final decision of an Administrative 

Law Judge under WIOA sec. 186(b). 

§ 683.850 Is there judicial review of a final 

order of the Secretary issued under WIOA? 

(a) Any party to a proceeding which 

resulted in a Secretary’s final order 

under WIOA sec. 186 in which the 

Secretary awards, declines to award, or 

only conditionally awards financial 

assistance or with respect to a corrective 

action or sanction imposed under WIOA 

sec. 184 may obtain a review in the 

United States Court of Appeals having 

jurisdiction over the applicant or 

recipient of funds involved, by filing a 

review petition within 30 days of the 

issuance of the Secretary’s final order in 

accordance with WIOA sec. 187. 

(b) The court has jurisdiction to make 

and enter a decree affirming, modifying, 

or setting aside the order of the 

Secretary, in whole or in part. 

(c) No objection to the Secretary’s 

order may be considered by the court 

unless the objection was specifically 

urged, in a timely manner, before the 

Secretary. The review is limited to 

questions of law, and the findings of fact 

of the Secretary are conclusive if 

supported by substantial evidence. 

(d) The judgment of the court is final, 

subject to certiorari review by the 

United States Supreme Court. 

■ 11. Add part 684 to read as follows: 

PART 684—INDIAN AND NATIVE 

AMERICAN PROGRAMS UNDER TITLE 

I OF THE WORKFORCE INNOVATION 

AND OPPORTUNITY ACT 

Subpart A—Purposes and Policies 

Sec. 

684.100 What is the purpose of the 

programs established to serve Indians 

and Native Americans under of the 

Workforce Innovation and Opportunity 

Act? 

684.110 How must Indian and Native 

American programs be administered? 

684.120 What obligation does the 

Department have to consult with the 

Indian and Native American program 

grantee community in developing rules, 

regulations, and standards of 

accountability for Indian and Native 

American programs? 

684.130 What definitions apply to terms 

used in this part? 

Subpart B—Service Delivery Systems 

Applicable to Section 166 Programs 

684.200 What are the requirements to apply 

for a Workforce Innovation and 

Opportunity Act grant? 

684.210 What priority for awarding grants 

is given to eligible organizations? 

684.220 What is the process for applying for 

a Workforce Innovation and Opportunity 

Act grant? 

684.230 What appeal rights are available to 

entities that are denied a grant award? 

684.240 Are there any other ways in which 

an entity may be awarded a Workforce 

Innovation and Opportunity Act grant? 

684.250 Can an Indian and Native 

American program grantee’s grant award 

be terminated? 

684.260 Does the Department have to award 

a grant for every part of the country? 

684.270 How are Workforce Innovation and 

Opportunity Act funds allocated to 

Indian and Native American program 

grantees? 

Subpart C—Services to Customers 

684.300 Who is eligible to receive services 

under the Indian and Native American 

program? 

684.310 What are Indian and Native 

American program grantee allowable 

activities? 

684.320 Are there any restrictions on 

allowable activities? 

684.330 What is the role of Indian and 

Native American program grantees in the 

one-stop system? 

684.340 What policies govern payments to 

participants, including wages, training 

allowances or stipends, or direct 

payments for supportive services? 

684.350 What will the Department do to 

strengthen the capacity of Indian and 

Native American program grantees to 

deliver effective services? 

Subpart D—Supplemental Youth Services 

684.400 What is the purpose of the 

supplemental youth services program? 

684.410 What entities are eligible to receive 

supplemental youth services funding? 

684.420 What are the planning 

requirements for receiving supplemental 

youth services funding? 

684.430 What individuals are eligible to 

receive supplemental youth services? 

684.440 How is funding for supplemental 

youth services determined? 

684.450 How will supplemental youth 

services be provided? 

684.460 What performance measures are 

applicable to the supplemental youth 

services program? 

Subpart E—Services to Communities 

684.500 What services may Indian and 

Native American program grantees 

provide to or for employers under the 

WIOA? 

684.510 What services may Indian and 

Native American program grantees 

provide to the community at large under 

the WIOA? 

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? 

684.530 What rules govern the issuance of 

contracts and/or subgrants? 

Subpart F—Accountability for Services and 

Expenditures 

684.600 To whom is the Indian and Native 

American program grantee accountable 

for the provision of services and the 

expenditure of Indian and Native 

American funds? 


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684.610 How is this accountability 

documented and fulfilled? 

684.620 What performance measures are in 

place for the Indian and Native 

American program? 

684.630 What are the requirements for 

preventing fraud and abuse under the 

WIOA? 

684.640 What grievance systems must an 

Indian and Native American program 

grantee provide? 

684.650 Can Indian and Native American 

program grantees exclude segments of 

the eligible population? 

Subpart G—Section 166 Planning/Funding 

Process 

684.700 What is the process for submitting 

a 4-year plan? 

684.710 What information must be 

included in the 4-year plans as part of 

the competitive application? 

684.720 When must the 4-year plan be 

submitted? 

684.730 How will the Department review 

and approve such plans? 

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)? 

Subpart H—Administrative Requirements 

684.800 What systems must an Indian and 

Native American program grantee have 

in place to administer an Indian and 

Native American program? 

684.810 What types of costs are allowable 

expenditures under the Indian and 

Native American program? 

684.820 What rules apply to administrative 

costs under the Indian and Native 

American program? 

684.830 Does the Workforce Innovation and 

Opportunity Act administrative cost 

limit for States and local areas apply to 

WIOA grants? 

684.840 How should Indian and Native 

American program grantees classify 

costs? 

684.850 What cost principles apply to 

Indian and Native American funds? 

684.860 What audit requirements apply to 

Indian and Native American grants? 

684.870 What is ‘‘program income’’ and 

how is it regulated in the Indian and 

Native American program? 

Subpart I—Miscellaneous Program 

Provisions 

684.900 Does the Workforce Innovation and 

Opportunity Act provide regulatory and/ 

or statutory waiver authority? 

684.910 What information is required in a 

waiver request? 

684.920 What provisions of law or 

regulations may not be waived? 

684.930 May Indian and Native American 

program grantees combine or consolidate 

their employment and training funds? 

684.940 What is the role of the Native 

American Employment and Training 

Council? 

684.950 Does the Workforce Innovation and 

Opportunity Act provide any additional 

assistance to unique populations in 

Alaska and Hawaii? 

Authority: Secs. 134, 166, 189, 503, Pub. 

L. 113–128, 128 Stat. 1425 (Jul. 22, 2014). 

Subpart A—Purposes and Policies 

§ 684.100 What is the purpose of the 

programs established to serve Indians and 

Native Americans under the Workforce 

Innovation and Opportunity Act? 

(a) The purpose of WIOA INA 

programs in sec. 166 is to support 

employment and training activities for 

INAs in order to: 

(1) Develop more fully the academic, 

occupational, and literacy skills of such 

individuals; 

(2) Make such individuals more 

competitive in the workforce and to 

equip them with entrepreneurial skills 

necessary for successful selfemployment; and 

(3) Promote the economic and social 

development of INA communities in 

accordance with the goals and values of 

such communities. 

(b) The principal means of 

accomplishing these purposes is to 

enable tribes and Native American 

organizations to provide employment 

and training services to INAs and their 

communities. Services should be 

provided in a culturally appropriate 

manner, consistent with the principles 

of the Indian Self-Determination and 

Education Assistance Act (25 U.S.C. 450 

et seq.). (WIOA sec. 166(a)(2)). 

§ 684.110 How must Indian and Native 

American programs be administered? 

(a) INA programs will be administered 

to maximize the Federal commitment to 

support the growth and development of 

INAs and their communities as 

determined by representatives of such 

communities. 

(b) In administering these programs, 

the Department will follow the 

Congressional declaration of policy set 

forth in the Indian Self-Determination 

and Education Assistance Act, at 25 

U.S.C. 450a, as well as the Department 

of Labor’s ‘‘American Indian and Alaska 

Native Policies. 

(c) The regulations in this part are not 

intended to abrogate the trust 

responsibilities of the Federal 

government to federally-recognized 

tribes in any way. 

(d) The Department will administer 

INA programs through a single 

organizational unit and consistent with 

the requirements in sec. 166(i) of WIOA. 

The Division of Indian and Native 

American Programs (DINAP) within the 

Employment and Training 

Administration (ETA) is designated as 

this single organizational unit as 

required by sec. 166(i)(1) of WIOA. 

(e) The Department will establish and 

maintain administrative procedures for 

the selection, administration, 

monitoring, and evaluation of INA 

employment and training programs 

authorized under this Act. 

§ 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? 

The Department’s primary 

consultation vehicle for INA programs is 

the Native American Employment and 

Training Council. The Department will 

consult with the INA grantee 

community in developing policies for 

the INA programs, actively seeking and 

considering the views of INA grantees 

prior to establishing INA program 

policies and regulations. (WIOA sec. 

166(i)(4)). The Department will follow 

DOL’s tribal consultation policy and 

Executive Order 13175 of November 6, 

2000. 

§ 684.130 What definitions apply to terms 

used in this part? 

In addition to the definitions found in 

secs. 3 and 166 of WIOA, and 20 CFR 

675.300, the following definitions 

apply: 

Alaska Native-Controlled 

Organization means an organization 

whose governing board is comprised of 

51 percent or more of individuals who 

are Alaska Native as defined in secs. 

3(b) and 3(r) of the Alaska Native Claims 

Settlement Act (43 U.S.C. 1602(b), (r)). 

Carry-in means the total amount of 

funds unobligated by a grantee at the 

end of a program year. If the amount of 

funds unobligated by a grantee at the 

end of a program year is more than 20 

percent of the grantee’s ‘‘total funds 

available’’ for that program year, such 

excess amount is considered ‘‘excess 

carry-in.’’ 

DINAP means the Division of Indian 

and Native American Programs within 

the Employment and Training 

Administration of the U.S. Department 

of Labor. 

Governing body means a body of 

representatives who are duly elected, 

appointed by duly elected officials, or 

selected according to traditional tribal 

means. A governing body must have the 

authority to provide services to and to 

enter into grants on behalf of the 

organization that selected or designated 

it. 

Grant Officer means a U.S. 

Department of Labor official authorized 

to obligate Federal funds. 

High-poverty area means a Census 

tract, a set of contiguous Census tracts, 

or a county or Indian reservation that 

has a poverty rate of at least 30 percent 


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as set every 5 years using American 

Community Survey 5-Year data. 

INA Grantee means an entity which is 

formally selected under subpart B of 

this part to operate an INA program and 

which has a grant agreement. 

Incumbent Grantee means an entity 

that is currently receiving a grant under 

this subpart. 

Indian and Native American or INA 

means, for the purpose of this part, an 

individual that is an American Indian, 

Native American, Native Hawaiian, or 

Alaska Native. 

Indian-Controlled Organization 

means an organization whose governing 

board is comprised of 51 percent or 

more individuals who are members of 

one or more Federally-recognized tribes. 

Incumbent grantees who received 

funding under WIA can include 

members of ‘‘State recognized tribes’’ in 

meeting the 51 percent threshold to 

continue to be eligible for WIOA sec. 

166 funds as an Indian-Controlled 

Organization. Tribal Colleges and 

Universities meet the definition of 

Indian-Controlled Organization for the 

purposes of this regulation. 

Native Hawaiian-Controlled 

Organization means an organization 

whose governing board is comprised of 

51 percent or more individuals who are 

Native Hawaiian as defined in sec. 7207 

of the Native Hawaiian Education Act 

(20 U.S.C. 7517). 

Total funds available means all funds 

that a grantee had ‘‘available’’ at the 

beginning of a program year. 

Underemployed means an individual 

who is working part-time but desires 

full-time employment, or who is 

working in employment not 

commensurate with the individual’s 

demonstrated level of educational and/ 

or skill achievement. 

Subpart B—Service Delivery Systems 

Applicable to Section 166 Programs 

§ 684.200 What are the requirements to 

apply for a Workforce Innovation and 

Opportunity Act grant? 

(a) To be eligible to apply for a WIOA, 

sec. 166 grant, an entity must have: 

(1) Legal status as a government or as 

an agency of a government, private nonprofit corporation, or a consortium 

whose members all qualify as one of 

these entities; and 

(2) A new entity (which is not an 

incumbent grantee) must have a 

population within the designated 

geographic service area which would 

receive at least $100,000 under the 

funding formula found at § 684.270(b), 

including any amounts received for 

supplemental youth services under the 

funding formula at § 684.440(a). 

Incumbent grantees which do not meet 

this dollar threshold will be 

grandfathered in. Additionally, the 

Department will make an exception to 

the $100,000 minimum for grantees 

wishing to participate in the 

demonstration program under Public 

Law 102–477 if all resources to be 

consolidated under the Public Law 102– 

477 plan total at least $100,000, with at 

least $20,000 derived from sec. 166 

funds. However, incumbent Public Law 

102–477 grantees that are receiving WIA 

funding of less than $20,000 as of the 

date of implementation of WIOA will be 

grandfathered into the program and can 

continue to be awarded the same 

amount. 

(b) To be eligible to apply as a 

consortium, each member of the 

consortium must meet the requirements 

of paragraph (a) of this section and 

must: 

(1) Be in close proximity to one 

another, but may operate in more than 

one State; 

(2) Have an administrative unit legally 

authorized to run the program and to 

commit the other members to contracts, 

grants, and other legally-binding 

agreements; and 

(3) Be jointly and individually 

responsible for the actions and 

obligations of the consortium, including 

debts. 

(c) Entities eligible under paragraph 

(a)(1) of this section are: 

(1) Federally-recognized Indian tribes; 

(2) Tribal organizations, as defined in 

25 U.S.C. 450b; 

(3) Alaska Native-controlled 

organizations; 

(4) Native Hawaiian-controlled 

organizations; 

(5) Indian-controlled organizations 

serving INAs; and 

(6) A consortium of eligible entities 

which meets the legal requirements for 

a consortium described in paragraph (b) 

of this section. 

(d) State-recognized tribal 

organizations that meet the definition of 

an Indian-controlled organization are 

eligible to apply for WIOA sec. 166 

grant funds. State-recognized tribes that 

do not meet this definition but are 

grantees under WIA will be 

grandfathered into WIOA as Indiancontrolled organizations. 

§ 684.210 What priority for awarding 

grants is given to eligible organizations? 

(a) Federally-recognized Indian tribes, 

Alaska Native entities, or a consortium 

of such entities will have priority to 

receive grants under this part for those 

geographic service areas in which they 

have legal jurisdiction, such as an 

Indian reservation, Oklahoma Tribal 

Service Area (OTSA), or Alaska Native 

Village Service Area (ANVSA). 

(b) 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, it will 

consult with such tribe or Alaska Native 

entity that has jurisdiction before 

selecting another entity to provide 

services for such areas. 

(c) The priority described in 

paragraphs (a) and (b) of this section 

does not apply to service areas outside 

the legal jurisdiction of an Indian tribe 

or Alaska Native entity. 

§ 684.220 What is the process for applying 

for a Workforce Innovation and Opportunity 

Act grant? 

(a) Entities seeking a WIOA sec. 166 

grant, including incumbent grantees, 

will be provided an opportunity to 

apply for a WIOA sec. 166 grant every 

4 years through a competitive grant 

process. 

(b) As part of the competitive 

application process, applicants will be 

required to submit a 4-year plan as 

described at § 684.710. The requirement 

to submit a 4-year plan does not apply 

to entities that have been granted 

approval to transfer their WIOA funds to 

the Department of Interior pursuant to 

Public Law 102–477. 

§ 684.230 What appeal rights are available 

to entities that are denied a grant award? 

Any entity that is denied a grant 

award for which it applied in whole or 

in part may appeal the denial to the 

Office of the Administrative Law Judges 

using the procedures at 20 CFR 683.800 

or the alternative dispute resolution 

procedures at 20 CFR 683.840. The 

Grant Officer will provide an entity 

whose request for a grant award was 

denied, in whole or in part, with a copy 

of the appeal procedures. 

§ 684.240 Are there any other ways in 

which an entity may be awarded a 

Workforce Innovation and Opportunity Act 

grant? 

Yes. For areas that would otherwise 

go unserved, the Grant Officer may 

designate an entity, which has not 

submitted a competitive application, but 

which meets the qualifications for a 

grant award, to serve the particular 

geographic area. Under such 

circumstances, DINAP will seek the 

views of INA leaders in the community 

that would otherwise go unserved 

before making the decision to designate 

the entity that would serve the 

community. DINAP will inform the 

Grant Officer of the INA leaders’ views. 

The Grant Officer will accommodate 

views of INA leaders in such areas to 

the extent possible. 


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§ 684.250 Can an Indian and Native 

American grantee’s grant award be 

terminated? 

(a) Yes, the Grant Officer can 

terminate a grantee’s award for cause, or 

the Secretary or another Department of 

Labor official confirmed by the Senate 

can terminate a grantee’s award in 

emergency circumstances where 

termination is necessary to protect the 

integrity of Federal funds or ensure the 

proper operation of the program under 

sec. 184(e) of WIOA. 

(b) The Grant Officer may terminate a 

grantee’s award for cause only if there 

is a substantial or persistent violation of 

the requirements in WIOA or the WIOA 

regulations. The grantee must be 

provided with written notice 60 days 

before termination, stating the specific 

reasons why termination is proposed. 

The appeal procedures at 20 CFR 

683.800 apply. 

§ 684.260 Does the Department have to 

award a grant for every part of the country? 

No, if there are no entities meeting the 

requirements for a grant award in a 

particular area, or willing to serve that 

area, the Department will not award 

funds for that service area. The funds 

that otherwise would have been 

allocated to that area under § 684.270 

will be distributed to other INA program 

grantees, or used for other program 

purposes such as technical assistance 

and training (TAT). Unawarded funds 

used for technical assistance and 

training are in addition to, and not 

subject to the limitations on, amounts 

reserved under § 684.270(e). Areas 

which are unserved by the INA program 

may be restored during a subsequent 

grant award cycle, when and if a current 

grantee or other eligible entity applies 

for a grant award to serve that area. 

§ 684.270 How are Workforce Innovation 

and Opportunity Act funds allocated to 

Indian and Native American program 

grantees? 

(a) Except for reserved funds 

described in paragraph (e) of this 

section and funds used for other 

program purposes under § 684.260, all 

funds available for WIOA sec. 

166(d)(2)(A)(i) comprehensive 

workforce investment services program 

at the beginning of a program year will 

be allocated to INA program grantees for 

the geographic service area(s) awarded 

to them through the grant competition. 

(b) Each INA program grantee will 

receive the sum of the funds calculated 

using the following formula: 

(1) One-quarter of the funds available 

will be allocated on the basis of the 

number of unemployed American 

Indian, Alaska Native and Native 

Hawaiian individuals in the grantee’s 

geographic service area(s) compared to 

all such unemployed persons in the 

United States. 

(2) Three-quarters of the funds 

available will be allocated on the basis 

of the number of American Indian, 

Alaska Native and Native Hawaiian 

individuals in poverty in the grantee’s 

geographic service area(s) as compared 

to all such persons in poverty in the 

United States. 

(3) The data and definitions used to 

implement these formulas are provided 

by the U.S. Bureau of the Census. 

(c) In years immediately following the 

use of new data in the formula 

described in paragraph (b) of this 

section, based upon criteria to be 

described in the Funding Opportunity 

Announcement (FOA), the Department 

may utilize a hold harmless factor to 

reduce the disruption in grantee 

services which would otherwise result 

from changes in funding levels. This 

factor will be determined in 

consultation with the grantee 

community and the Native American 

Employment and Training Council. 

(d) The Department may reallocate 

funds from one INA program grantee to 

another if a grantee is unable to serve its 

area for any reason, such as audit or 

debt problems, criminal activity, 

internal (political) strife, failure to 

adhere to or meet grant terms and 

conditions, or lack of ability or interest. 

If a grantee has excess carry-in for a 

program year, the Department may also 

readjust the awards granted under the 

funding formula so that an amount that 

equals the previous program year’s 

carry-in will be allocated to another INA 

program grantee(s). 

(e) The Department may reserve up to 

one percent of the funds appropriated 

under WIOA sec. 166(d)(2)(A)(i) for any 

program year for technical assistance 

and training (TAT) purposes. It will 

consult with the Native American 

Employment and Training Council in 

planning how the TAT funds will be 

used, designating activities to meet the 

unique needs of the INA communities 

served by the INA program. Section 166 

grantees also will have access to 

resources available to other Department 

programs to the extent permitted under 

other law. 

Subpart C—Services to Customers 

§ 684.300 Who is eligible to receive 

services under the Indian and Native 

American program? 

(a) A person is eligible to receive 

services under the INA program if that 

person is: 

(1) An Indian, as determined by a 

policy of the INA program grantee. The 

grantee’s definition must at least 

include anyone who is a member of a 

Federally-recognized tribe; or 

(2) An Alaska Native, as defined in 

WIOA sec. 166(b)(1); or 

(3) A Native Hawaiian, as defined in 

WIOA sec. 166(b)(3). 

(b) The person also must be any one 

of the following: 

(1) Unemployed; or 

(2) Underemployed, as defined in 

§ 684.130; or 

(3) A low-income individual, as 

defined in sec. 3(36) of WIOA; or 

(4) The recipient of a bona fide layoff notice which has taken effect in the 

last 6 months or will take effect in the 

following 6-month period, who is 

unlikely to return to a previous industry 

or occupation, and who is in need of 

retraining for either employment with 

another employer or for job retention 

with the current employer; or 

(5) An individual who is employed, 

but is determined by the grantee to be 

in need of employment and training 

services to obtain or retain employment 

that allows for self-sufficiency. 

(c) If applicable, male applicants must 

also register or be registered for the 

Selective Service. 

§ 684.310 What are Indian and Native 

American program grantee allowable 

activities? 

(a) Generally, INA program grantees 

must make efforts to provide 

employment and training opportunities 

to eligible individuals (as described in 

§ 684.300) who can benefit from, and 

who are most in need of, such 

opportunities. In addition, INA program 

grantees must make efforts to develop 

programs that contribute to 

occupational development, upward 

mobility, development of new careers, 

and opportunities for nontraditional 

employment (WIOA sec. 194(1)). 

(b) Allowable activities for INA 

program grantees are any services 

consistent with the purposes of this part 

that are necessary to meet the needs of 

INAs preparing to enter, reenter, or 

retain unsubsidized employment 

leading to self-sufficiency (WIOA sec. 

166(d)(1)(B)). 

(c) Examples of career services, which 

may be delivered in partnership with 

the one-stop delivery system, are 

described in sec. 134(c)(2) of WIOA and 

§ 678.430. 

(d) Follow-up services, including 

counseling and supportive services for 

up to 12 months after the date of exit to 

assist participants in obtaining and 

retaining employment. 

(e) Training services include the 

activities described in WIOA sec. 

134(c)(3)(D). 


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(f) Allowable activities specifically 

designed for youth, as listed in sec. 129 

of WIOA, include: 

(1) Tutoring, study skills training, 

instruction, and evidence-based dropout 

prevention and recovery strategies that 

lead to completion of the requirements 

for a secondary school diploma or its 

recognized equivalent (including a 

recognized certificate of attendance or 

similar document for individuals with 

disabilities) or for a recognized postsecondary credential; 

(2) Alternative secondary school 

services, or dropout recovery services, 

as appropriate; 

(3) Paid and unpaid work experiences 

that have as a component academic and 

occupational education, which may 

include: 

(i) Summer employment 

opportunities and other employment 

opportunities available throughout the 

school year; 

(ii) Pre-apprenticeship programs; 

(iii) Internships and job shadowing; 

and 

(iv) On-the-job training opportunities; 

(4) Occupational skill training, which 

must include priority consideration for 

training programs that lead to 

recognized post-secondary credentials 

that are aligned with in-demand 

industry sectors or occupations in the 

local area involved; 

(5) Education offered concurrently 

with and in the same context as 

workforce preparation activities and 

training for a specific occupation or 

occupational cluster; 

(6) Leadership development 

opportunities, which may include 

community service and peer-centered 

activities encouraging responsibility and 

other positive social and civic 

behaviors, as appropriate; 

(7) Supportive services as defined in 

WIOA sec. 3(59); 

(8) Adult mentoring for the period of 

participation and a subsequent period, 

for a total of not less than 12 months; 

(9) Follow-up services for not less 

than 12 months after the completion of 

participation, as appropriate; 

(10) Comprehensive guidance and 

counseling, which may include drug 

and alcohol abuse counseling and 

referral, as appropriate; 

(11) Financial literacy education; 

(12) Entrepreneurial skills training; 

(13) Services that provide labor 

market and employment information 

about in-demand industry sectors or 

occupations available in the local area, 

such as career awareness, career 

counseling, and career exploration 

services; and 

(14) Activities that help youth prepare 

for and transition to post-secondary 

education and training. 

(g) In addition, allowable activities 

include job development and 

employment outreach, including: 

(1) Support of the Tribal Employment 

Rights Office (TERO) program; 

(2) Negotiation with employers to 

encourage them to train and hire 

participants; 

(3) Establishment of linkages with 

other service providers to aid program 

participants; 

(4) Establishment of management 

training programs to support tribal 

administration or enterprises; and 

(5) Establishment of linkages with 

remedial education, such as Adult Basic 

Education (ABE), basic literacy training, 

and English-as-a-second-language (ESL) 

training programs, as necessary. 

(h) Participants may be enrolled in 

more than one activity at a time and 

may be sequentially enrolled in 

multiple activities. 

(i) Services may be provided to a 

participant in any sequence based on 

the particular needs of the participant. 

§ 684.320 Are there any restrictions on 

allowable activities? 

(a) Training services must be directly 

linked to an in-demand industry sector 

or occupation in the service area, or in 

another area to which a participant 

receiving such services is willing to 

relocate (WIOA sec. 134(c)(3)(A)(i)(II)). 

(b) INA grantees must provide On-theJob Training (OJT) services consistent 

with the definition provided in WIOA 

sec. 3(44) and other limitations in 

WIOA. Individuals in OJT must: 

(1) 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 (WIOA 

sec. 181(a)(1)); and 

(2) 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. 

(WIOA sec. 181(b)(5)) 

(c) In addition, OJT contracts under 

this title must not be entered into with 

employers who have: 

(1) Received payments under previous 

contracts under WIOA or the Workforce 

Investment Act of 1998 and have 

exhibited a pattern of failing to provide 

on-the-job training participants with 

continued, long-term employment as 

regular employees with wages and 

employment benefits (including health 

benefits) and working conditions at the 

same level and to the same extent as 

other employees working a similar 

length of time and doing the same type 

of work (WIOA sec. 194(4)); or 

(2) Have exhibited a pattern of 

violating paragraphs (b)(1) and/or (2) of 

this section. (WIOA sec. 194(4)). 

(d) INA program grantees are 

prohibited from using funds to 

encourage the relocation of a business, 

as described in WIOA sec. 181(d) and 20 

CFR 683.260. 

(e) INA program grantees must only 

use WIOA funds for activities that are in 

addition to those that would otherwise 

be available to the INA population in 

the area in the absence of such funds 

(WIOA sec. 194(2)). 

(f) INA program grantees must not 

spend funds on activities that displace 

currently employed individuals, impair 

existing contracts for services, or in any 

way affect union organizing. 

(g) Under 20 CFR 683.255, sectarian 

activities involving WIOA financial 

assistance or participants are limited in 

accordance with the provisions of sec. 

188(a)(3) of WIOA. 

§ 684.330 What is the role of Indian and 

Native American program grantees in the 

one-stop system? 

(a) In those local workforce 

investment areas where an INA program 

grantee conducts field operations or 

provides substantial services, the INA 

program grantee is a required partner in 

the local one-stop delivery system and 

is subject to the provisions relating to 

such partners described in 20 CFR part 

678. Consistent with those provisions, a 

Memorandum of Understanding (MOU) 

between the INA program grantee and 

the Local Board over the operation of 

the one-stop center(s) in the Local 

Board’s workforce investment area also 

must be executed. Where the Local 

Board is an alternative entity under 20 

CFR 679.150, the INA program grantee 

must negotiate with the alternative 

entity on the terms of its MOU and the 

scope of its on-going role in the local 

workforce investment system, as 

specified in 20 CFR 679.410(b)(2). In 

local areas with a large concentration of 

potentially eligible INA participants, 

which are in an INA program grantee’s 

service area but in which the grantee 

does not conduct operations or provide 

substantial services, the INA program 

grantee should encourage such 

individuals to participate in the onestop system in that area in order to 

receive WIOA services. 

(b) At a minimum, the MOU must 

contain to the provisions listed in WIOA 

sec. 121(c) and: 

(1) The exchange of information on 

the services available and accessible 

through the one-stop system and the 

INA program; 

(2) As necessary to provide referrals 

and case management services, the 


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exchange of information on INA 

participants in the one-stop system and 

the INA program; 

(3) Arrangements for the funding of 

services provided by the one-stop(s), 

consistent with the requirements at 20 

CFR 678.425 that no expenditures may 

be made with INA program funds for 

individuals who are not eligible or for 

services not authorized under this part. 

(c) Where the INA program grantee 

has failed to enter into a MOU with the 

Local Board, the INA program grantee 

must describe in its 4-year plan the 

good-faith efforts made in order to 

negotiate an MOU with the Local Board. 

(d) Pursuant to WIOA sec. 

121(h)(2)(D)(iv), INA program grantees 

will not be subject to the funding of the 

one-stop infrastructure unless otherwise 

agreed upon in the MOU under subpart 

C of 20 CFR part 678. 

§ 684.340 What policies govern payments 

to participants, including wages, training 

allowances or stipends, or direct payments 

for supportive services? 

(a) INA program grantees may pay 

training allowances or stipends to 

participants for their successful 

participation in and completion of 

education or training services (except 

such allowance may not be provided to 

participants in OJT). Allowances or 

stipends may not exceed the Federal or 

State minimum wage, whichever is 

higher. 

(b) INA program grantees may not pay 

a participant in a training activity when 

the person fails to participate without 

good cause. 

(c) If a participant in a WIOA-funded 

activity, including participants in OJT, 

is involved in an employer-employee 

relationship, that participant must be 

paid wages and fringe benefits at the 

same rates as trainees or employees who 

have similar training, experience and 

skills and which are not less than the 

higher of the applicable Federal, State or 

local minimum wage. 

(d) In accordance with the policy 

described in the 4-year plan submitted 

as part of the competitive process, INA 

program grantees may pay incentive 

bonuses to participants who meet or 

exceed individual employability or 

training goals established in writing in 

the individual employment plan. 

(e) INA program grantees must 

comply with other restrictions listed in 

WIOA secs. 181 through 195, which 

apply to all programs funded under title 

I of WIOA, including the provisions on 

labor standards in WIOA sec. 181(b). 

§ 684.350 What will the Department do to 

strengthen the capacity of Indian and Native 

American program grantees to deliver 

effective services? 

The Department will provide 

appropriate technical assistance and 

training (TAT), as necessary, to INA 

program grantees. This TAT will assist 

INA program grantees to improve 

program performance and improve the 

quality of services to the target 

population(s), as resources permit. 

(WIOA sec. 166(i)(5)) 

Subpart D—Supplemental Youth 

Services 

§ 684.400 What is the purpose of the 

supplemental youth services program? 

The purpose of this program is to 

provide supplemental employment and 

training and related services to lowincome INA youth on or near Indian 

reservations and in Oklahoma, Alaska, 

or Hawaii. (WIOA sec. 166(d)(2)(A)(ii)) 

§ 684.410 What entities are eligible to 

receive supplemental youth services 

funding? 

Entities eligible to receive 

supplemental youth services funding 

are limited to Federally-recognized 

tribes that have a land base in which 

they have legal jurisdiction such as an 

Indian reservation, Oklahoma Tribal 

Service Area (OTSA), Alaska Native 

Village Service Area (ANVSA) etc., and 

Native Hawaiian organizations in the 

State of Hawaii. American Indian, 

Alaskan Native -controlled non-profit 

organizations may receive youth 

funding if they are providing services to 

an area where the Indian tribe or Alaska 

Native entity has legal jurisdiction on 

behalf of the tribe or entity with legal 

jurisdiction. 

§ 684.420 What are the planning 

requirements for receiving supplemental 

youth services funding? 

Applicants eligible to apply for 

supplemental youth funding must 

describe the supplemental youth 

services they intend to provide in the 4- 

year plan that they will submit as part 

of the competitive application process. 

The information on youth services will 

be incorporated into the overall 4-year 

plan, which is more fully described in 

§§ 684.700 and 684.710, and is required 

for both adult and youth funds. As 

indicated in § 684.710(c), additional 

planning information required for 

applicants requesting supplemental 

youth funding will be provided in the 

FOA. The Department envisions that the 

strategy for youth funds will not be 

extensive; however, grantees will be 

required to provide the number of youth 

it plans to serve and projected 

performance outcomes. The Department 

also supports youth activities that 

preserve INA culture and will support 

strategies that promote INA values. 

§ 684.430 What individuals are eligible to 

receive supplemental youth services? 

(a) Participants in supplemental youth 

services activities must be; 

(1) American Indian, Alaska Native or 

Native Hawaiian as determined by the 

INA program grantee according to 

§ 684.300(a); 

(2) Between the age of 14 and 24; and 

(3) A low-income individual as 

defined at WIOA sec. 3(36) except up to 

five percent of the participants during a 

program year in an INA youth program 

may not be low-income individuals 

provided they meet the eligibility 

requirements of paragraphs (a)(1) and 

(2) of this section. 

(b) For the purpose of this section, the 

term ‘‘low-income’’, used with respect 

to an individual, also includes a youth 

living in a high-poverty area. (WIOA 

sec.129(a)(2)) 

§ 684.440 How is funding for supplemental 

youth services determined? 

(a) Supplemental youth funding will 

be allocated to eligible INA program 

grantees on the basis of the relative 

number of INA youth between the ages 

of 14 and 24 living in poverty in the 

grantee’s geographic service area 

compared to the number of INA youth 

between the ages of 14 and 24 living in 

poverty in in all eligible geographic 

service areas. The Department reserves 

the right to redefine the supplemental 

youth funding stream in future program 

years, in consultation with the Native 

American Employment and Training 

Council, as program experience 

warrants and as appropriate data 

become available. 

(b) The data used to implement this 

formula are provided by the U.S. Bureau 

of the Census. 

(c) The hold harmless factor described 

in § 684.270(c) also applies to 

supplemental youth services funding. 

This factor also will be determined in 

consultation with the grantee 

community and the Native American 

Employment and Training Council. 

(d) The reallocation provisions of 

§ 684.270(d) also apply to supplemental 

youth services funding. 

(e) Any supplemental youth services 

funds not allotted to a grantee or refused 

by a grantee may be used for the 

purposes outlined in § 684.270(e), as 

described in § 684.260. Any such funds 

are in addition to, and not subject to the 

limitations on, amounts reserved under 

§ 684.270(e). 


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§ 684.450 How will supplemental youth 

services be provided? 

(a) INA program grantees may offer 

supplemental services to youth 

throughout the school year, during the 

summer vacation, and/or during other 

breaks during the school year at their 

discretion; 

(b) The Department encourages INA 

program grantees to work with local 

educational agencies to provide 

academic credit for youth activities 

whenever possible; 

(c) INA program grantees may provide 

participating youth with the activities 

referenced in § 684.310(e). 

§ 684.460 What performance measures are 

applicable to the supplemental youth 

services program? 

(a) Pursuant to WIOA secs. 166(e)(5) 

and 166(h), the performance measures at 

WIOA sec. 116(b)(2)(A)(ii) apply to the 

INA youth program which must 

include: 

(1) The percentage of program 

participants who are in education or 

training activities, or in unsubsidized 

employment, during the second quarter 

after exit from the program; 

(2) The percentage of program 

participants who are in education or 

training activities, or in unsubsidized 

employment, during the fourth quarter 

after exit from the program; 

(3) The median earnings of program 

participants who are in unsubsidized 

employment during the second quarter 

after exit from the program; 

(4) The percentage of program 

participants who obtain a recognized 

post-secondary credential, or a 

secondary school diploma or its 

recognized equivalent (subject to WIOA 

sec. 116(b)(2)(A)(iii)) during 

participation in or within 1 year after 

exit from the program; 

(5) 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; 

(6) The indicators of effectiveness in 

serving employers established under 

WIOA sec. 116(b)(2)(A)(iv). 

(b) In addition to the performance 

measures indicated in paragraphs (a)(1) 

through (6) of this section, the Secretary, 

in consultation with the Native 

American Employment and Training 

Council, must develop a set of 

performance indicators and standards 

that is in addition to the primary 

indicators of performance that are 

applicable to the INA program under 

this section. 

Subpart E—Services to Communities 

§ 684.500 What services may Indian and 

Native American grantees provide to or for 

employers under the WIOA? 

(a) INA program grantees may provide 

a variety of services to employers in 

their areas. These services may include: 

(1) Workforce planning which 

involves the recruitment of current or 

potential program participants, 

including job restructuring services; 

(2) Recruitment and assessment of 

potential employees, with priority given 

to potential employees who are or who 

might become eligible for program 

services; 

(3) Pre-employment training; 

(4) Customized training; 

(5) On-the-Job training (OJT); 

(6) Post-employment services, 

including training and support services 

to encourage job retention and 

upgrading; 

(7) Work experience for public or 

private sector work sites; 

(8) Other innovative forms of worksite 

training. 

(b) In addition to the services listed in 

paragraph (a) of this section, other 

grantee-determined services (as 

described in the grantee’s 4-year plan), 

which are intended to assist eligible 

participants to obtain or retain 

employment may also be provided to or 

for employers. 

§ 684.510 What services may Indian and 

Native American grantees provide to the 

community at large under the WIOA? 

(a) INA program grantees may provide 

services to the INA communities in their 

service areas by engaging in program 

development and service delivery 

activities which: 

(1) Strengthen the capacity of Indiancontrolled institutions to provide 

education and work-based learning 

services to INA youth and adults, 

whether directly or through other INA 

institutions such as tribal colleges; 

(2) Increase the community’s capacity 

to deliver supportive services, such as 

child care, transportation, housing, 

health, and similar services needed by 

clients to obtain and retain employment; 

(3) Use program participants engaged 

in education, training, work experience, 

or similar activities to further the 

economic and social development of 

INA communities in accordance with 

the goals and values of those 

communities; and 

(4) Engage in other communitybuilding activities described in the INA 

grantee’s 4-year plan. 

(b) INA grantees program should 

develop their 4-year plan in conjunction 

with, and in support of, strategic tribal 

planning and community development 

goals. 

§ 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? 

Yes, INA program grantees must give 

as much preference as possible to Indian 

organizations and to Indian-owned 

economic enterprises, as defined in sec. 

3 of the Indian Financing Act of 1974 

(25 U.S.C. 1452), when awarding any 

contract or subgrant. 

§ 684.530 What rules govern the issuance 

of contracts and/or subgrants? 

In general, INA program grantees 

must follow the rules of Uniform 

administrative requirements, Cost 

Principles, & Audit Requirements for 

Federal Awards when awarding 

contracts and/or subgrants under WIA 

sec. 166. These requirements are 

codified at 2 CFR part 200 subpart E. 

Common rules implementing those 

circulars are codified for Departmentfunded programs at 29 CFR part 97 (A– 

102) or 29 CFR part 95 (A–110), and 

covered in WIA regulations at 20 CFR 

683.200. These rules do not apply to 

OJT contract awards. 

Subpart F—Accountability for Services 

and Expenditures 

§ 684.600 To whom is the Indian and 

Native American program grantee 

accountable for the provision of services 

and the expenditure of Indian and Native 

American funds? 

(a) The INA program grantee is 

responsible to the INA community to be 

served by INA funds. 

(b) The INA program grantee is also 

responsible to the Department of Labor, 

which is charged by law with ensuring 

that all WIOA funds are expended: 

(1) According to applicable laws and 

regulations; 

(2) For the benefit of the identified 

INA client group; and 

(3) For the purposes approved in the 

grantee’s plan and signed grant 

document. 

§ 684.610 How is this accountability 

documented and fulfilled? 

(a) Each INA program grantee must 

establish its own internal policies and 

procedures to ensure accountability to 

the INA program grantee’s governing 

body, as the representative of the INA 

community(ies) served by the INA 

program. At a minimum, these policies 

and procedures must provide a system 

for governing body review and oversight 

of program plans and measures and 

standards for program performance. 


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(b) Accountability to the Department 

is accomplished in part through on-site 

program reviews (monitoring), which 

strengthen the INA program grantee’s 

capability to deliver effective services 

and protect the integrity of Federal 

funds. 

(c) In addition to audit information, as 

described at § 684.860 and program 

reviews, accountability to the 

Department is documented and fulfilled 

by the submission of quarterly financial 

and program reports, and compliance 

with the terms and conditions of the 

grant award. 

§ 684.620 What performance measures are 

in place for the Indian and Native American 

program? 

(a) Pursuant to WIOA secs. 166(e)(5) 

and 166(h), the performance measures at 

WIOA sec. 116(b)(2)(A)(i) apply to the 

INA program which must include: 

(1) The percentage of program 

participants who are in unsubsidized 

employment during the second quarter 

after exit from the program; 

(2) The percentage of program 

participants who are in unsubsidized 

employment during the fourth quarter 

after exit from the program; 

(3) The median earnings of program 

participants who are in unsubsidized 

employment during the second quarter 

after exit from the program; 

(4) The percentage of program 

participants who obtain a recognized 

post-secondary credential, or a 

secondary school diploma or its 

recognized equivalent (subject to WIOA 

sec. 116(b)(2)(A)(iii)) during 

participation in or within 1 year after 

exit from the program; 

(5) 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 

(6) The indicators of effectiveness in 

serving employers established under 

WIOA sec. 116(b)(2)(A)(iv). 

(b) In addition to the performance 

measures at WIOA sec. 116(b)(2)(A)(i), 

the Department, in consultation with 

the Native American Employment and 

Training Council, must develop a set of 

performance indicators and standards 

that are applicable to the INA program. 

§ 684.630 What are the requirements for 

preventing fraud and abuse under the 

WIOA? 

(a) INA program grantees must 

establish such fiscal control and fund 

accounting procedures as may be 

necessary to assure the proper disbursal 

of, and accounting for, Federal funds. 

Such procedures must ensure that all 

financial transactions are conducted and 

records maintained in accordance with 

generally accepted accounting 

principles. 

(b) Each INA program grantee must 

have rules to prevent conflict of interest 

by its governing body. These conflict of 

interest rules must include a rule 

prohibiting any member of any 

governing body or council associated 

with the INA program grantee from 

voting on any matter which would 

provide a direct financial benefit to that 

member, or to a member of his or her 

immediate family, in accordance with 

20 CFR 683.200(a)(4) and 2 CFR 200 and 

2900. 

(c) Officers or agents of the INA 

program grantee must not solicit or 

personally accept gratuities, favors, or 

anything of monetary value from any 

actual or potential contractor, 

subgrantee, vendor or participant. This 

rule must also apply to officers or agents 

of the grantee’s contractors and/or 

subgrantees. This prohibition does not 

apply to: 

(1) Any rebate, discount or similar 

incentive provided by a vendor to its 

customers as a regular feature of its 

business; 

(2) Items of nominal monetary value 

distributed consistent with the cultural 

practices of the INA community served 

by the grantee. 

(d) No person who selects program 

participants or authorizes the services 

provided to them may select or 

authorize services to any participant 

who is such a person’s spouse, parent, 

sibling, or child unless: 

(1)(i) The participant involved is a 

low-income individual; or 

(ii) The community in which the 

participant resides has a population of 

less than 1,000 INAs combined; and 

(2) The INA program grantee has 

adopted and implemented the policy 

described in the 4-year plan to prevent 

favoritism on behalf of such relatives. 

(e) INA program grantees are subject 

to the provisions of 41 U.S.C. 8702 

relating to kickbacks. 

(f) No assistance provided under this 

Act may involve political activities 

(WIOA sec. 194(6)). 

(g) INA program grantees must 

comply with the restrictions on 

lobbying activities pursuant to sec. 195 

of WIOA and the restrictions on 

lobbying codified in the Department 

regulations at 29 CFR part 93. 

(h) The provisions of 18 U.S.C. 665 

and 666 prohibiting embezzlement 

apply to programs under WIOA. 

(i) Recipients of financial assistance 

under WIOA sec. 166 are prohibited 

from discriminatory practices as 

outlined at WIOA sec. 188, and the 

regulations implementing WIA sec. 188, 

at 29 CFR part 37. However, this does 

not affect the legal requirement that all 

INA participants be INAs. Also, INA 

program grantees are not obligated to 

serve populations outside the 

geographic boundaries for which they 

receive funds. However, INA program 

grantees are not precluded from serving 

eligible individuals outside their 

geographic boundaries if the INA 

program grantee chooses to do so. 

§ 684.640 What grievance systems must 

an Indian and Native American program 

granteeprovide? 

INA program grantees must establish 

grievance procedures consistent with 

the requirements of WIOA sec. 181(c) 

and 20 CFR 683.600. 

§ 684.650 Can Indian and Native American 

grantees exclude segments of the eligible 

population? 

(a) No, INA program grantees cannot 

exclude segments of the eligible 

population except as otherwise 

provided in this part. INA program 

grantees must document in their 4-year 

plan that a system is in place to afford 

all members of the eligible population 

within the service area for which the 

grantee was designated an equitable 

opportunity to receive WIOA services 

and activities. 

(b) Nothing in this section restricts the 

ability of INA program grantees to target 

subgroups of the eligible population (for 

example, the disabled, substance 

abusers, TANF recipients, or similar 

categories), as outlined in an approved 

4-year plan. However, it is unlawful to 

target services to subgroups on grounds 

prohibited by WIOA sec. 188 and 29 

CFR part 37, including tribal affiliation 

(which is considered national origin). 

Outreach efforts, on the other hand, may 

be targeted to any subgroups. 

Subpart G—Section 166 Planning/

Funding Process 

§ 684.700 What is the process for 

submitting a 4-year plan? 

Every 4 years, INA program grantees 

must submit a 4-year strategy for 

meeting the needs of INAs in 

accordance with WIOA sec. 166(e). This 

plan will be part of, and incorporated 

with, the 4-year competitive process 

described in WIOA sec. 166(c) and 

§ 684.220. Accordingly, specific 

requirements for the submission of a 4- 

year plan will be provided in a Funding 

Opportunity Announcement (FOA) and 

will include the information described 

at § 684.710. 


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§ 684.710 What information must be 

included in the 4-year plans as part of the 

competitive application? 

(a) The 4-year plan, which will be 

submitted as part of the competitive 

process, must include the information 

required at WIOA secs. 166(e)(2)-(5) 

which are: 

(1) The population to be served; 

(2) The education and employment 

needs of the population to be served and 

the manner in which the activities to be 

provided will strengthen the ability of 

the individuals served to obtain or 

retain unsubsidized employment 

leading to self-sufficiency; 

(3) A description of the activities to be 

provided and the manner in which such 

activities are to be integrated with other 

appropriate activities; and 

(4) A description of the performance 

measures and expected levels of 

performance. 

(b) The 4-year plan must also include 

any additional information requested in 

the FOA. 

(c) INA program grantees receiving 

supplemental youth funds will be 

required to provide additional 

information (at a minimum the number 

of youth it plans to serve and the 

projected performance outcomes) in the 

4-year plan that describes a strategy for 

serving low-income, INA youth. 

Additional information required for 

supplemental youth funding will be 

identified in the FOA. 

§ 684.720 When must the 4-year plan be 

submitted? 

The 4-year plans will be submitted as 

part of the competitive FOA process 

described at § 684.220. Accordingly, the 

due date for the submission of the 4- 

year plan will be specified in the FOA. 

§ 684.730 How will the Department review 

and approve such plans? 

(a) 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 unless: 

(1) The planning documents do not 

contain the information specified in the 

regulations in this part and/or the FOA; 

or 

(2) The services which the INA 

program grantee proposes are not 

permitted under WIOA or applicable 

regulations. 

(b) After competitive grant selections 

have been made, the DINAP office will 

assist INA grantees in resolving any 

outstanding issues with the 4-year plan. 

However, the Department may delay 

funding to grantees until all issues have 

been resolved. If the issues with the 

application of an incumbent grantee 

cannot be solved, the Department will 

reallocate funds from the grantee to 

other grantees that have an approved 4- 

year plan. The Grant Officer may delay 

executing a grant agreement and 

obligating funds to an entity selected 

through the competitive process until 

all the required documents—including 

the 4-year plan—are in place and 

satisfactory. 

(c) The Department may approve a 

portion of the plan and disapprove other 

portions. 

(d) The grantee also has the right to 

appeal a nonselection decision or a 

decision by the Department to deny or 

reallocate funds based on unresolved 

issues with the applicant’s application 

or 4-year plan. Such an appeal would go 

to the Office of the Administrative Law 

Judges under procedures at 20 CFR 

683.800 or 683.840 in the case of a 

nonelection. 

§ 684.740 Under what circumstances can 

the Department or the Indian and Native 

American grantee modify the terms of the 

grantee’s plan(s)? 

(a) The Department may unilaterally 

modify the INA program grantee’s plan 

to add funds or, if required by 

Congressional action, to reduce the 

amount of funds available for 

expenditure. 

(b) The INA grantee may request 

approval to modify its plan to add, 

expand, delete, or diminish any service 

allowable under the regulations in this 

part. The INA grantee may modify its 

plan without our approval, unless the 

modification reduces the total number 

of participants to be served annually 

under the grantee’s program by a 

number which exceeds 25 percent of the 

participants previously proposed to be 

served, or by 25 participants, whichever 

is larger. 

Subpart H—Administrative 

Requirements 

§ 684.800 What systems must an Indian 

and Native American program grantee have 

in place to administer an Indian and Native 

American program? 

(a) Each INA program grantee must 

have a written system describing the 

procedures the grantee uses for: 

(1) The hiring and management of 

personnel paid with program funds; 

(2) The acquisition and management 

of property purchased with program 

funds; 

(3) Financial management practices; 

(4) A participant grievance system 

which meets the requirements in sec. 

181(c) of WIOA and 20 CFR 683.600; 

and 

(5) A participant records system. 

(b) Participant records systems must 

include: 

(1) A written or computerized record 

containing all the information used to 

determine the person’s eligibility to 

receive program services; 

(2) The participant’s signature 

certifying that all the eligibility 

information he or she provided is true 

to the best of his/her knowledge; and 

(3) The information necessary to 

comply with all program reporting 

requirements. 

§ 684.810 What types of costs are 

allowable expenditures under the Indian 

and Native American program? 

Rules relating to allowable costs 

under WIOA are covered in 20 CFR 

683.200 through 683.215. 

§ 684.820 What rules apply to 

administrative costs under the Indian and 

Native American program? 

The definition and treatment of 

administrative costs are covered in 20 

CFR 683.205(b) and 683.215. 

§ 684.830 Does the Workforce Innovation 

and Opportunity Act administrative cost 

limit for States and local areas apply to 

WIOA grants? 

No, under 20 CFR 683.205(b), limits 

on administrative costs for sec. 166 

grants will be negotiated with the 

grantee and identified in the grant 

award document. 

§ 684.840 How should Indian and Native 

American program grantees classify costs? 

Cost classification is covered in the 

WIOA regulations at 20 CFR 683.200 

through 683.215. For purposes of the 

INA program, program costs also 

include costs associated with other 

activities such as Tribal Employment 

Rights Office (TERO), and supportive 

services, as defined in WIOA sec. 3(59). 

§ 684.850 What cost principles apply to 

Indian and Native American funds? 

The cost principles at 2 CFR 200 

subpart E of the Uniform Administrative 

Requirements, Cost Principles, & Audit 

Requirements for Federal Awards 

published December 26, 2013 apply to 

INA program grantees. 

§ 684.860 What audit requirements apply 

to Indian and Native American grants? 

(a) WIOA sec. 166 grantees must 

follow the audit requirements at 2 CFR 

200 subpart F of the Uniform 

Administrative Requirements, Cost 

Principles, & Audit Requirements for 

Federal Awards published December 26, 

2013. 

(b) Grants made and contracts and 

cooperative agreements entered into 

under sec. 166 of WIOA are subject to 

the requirements of chapter 75 of 

subtitle V of title 31, United States 

Code, and charging of costs under this 


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section are subject to appropriate 

circulars issued by the Office of 

Management and Budget (WIOA, sec. 

166(j)). 

§ 684.870 What is ‘‘program income’’ and 

how is it regulated in the Indian and Native 

American program? 

(a) Program income is regulated by 

WIOA sec. 194(7)(A), 20 CFR 

683.200(a)(5), and the applicable rules 

in 2 CFR parts 200 and 2900, 

(b) For grants made under this part, 

program income does not include 

income generated by the work of a work 

experience participant in an enterprise, 

including an enterprise owned by an 

INA entity, whether in the public or 

private sector. 

(c) Program income does not include 

income generated by the work of an OJT 

participant in an establishment under 

paragraph (b) of this section. 

Subpart I—Miscellaneous Program 

Provisions 

§ 684.900 Does the Workforce Innovation 

and Opportunity Act provide regulatory 

and/or statutory waiver authority? 

Yes, WIOA sec. 166(i)(3) permits 

waivers of any statutory or regulatory 

requirement of title I of WIOA that are 

inconsistent with the specific needs of 

the INA grantee (except for the areas 

cited in § 684.920). Such waivers may 

include those necessary to facilitate 

WIOA support of long-term community 

development goals. 

§ 684.910 What information is required in a 

waiver request? 

(a) To request a waiver, an INA 

program grantee must submit a waiver 

request indicating how the waiver will 

improve the grantee’s WIOA program 

activities which must include the items 

specified at WIOA secs. 189(i)(3)(B)(i)– 

(v). 

(b) 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. INA program 

grantees seeking to continue an existing 

waiver in a new 4-year grant cycle must 

submit a new waiver request in 

accordance with § 684.910(a). This 

requirement also applies to grants 

transferred under Public Law 102–477. 

§ 684.920 What provisions of law or 

regulations may not be waived? 

Requirements relating to: 

(a) Wage and labor standards; 

(b) Worker rights; 

(c) Participation and protection of 

workers and participants; 

(d) Grievance procedures; 

(e) Judicial review; 

(f) Non-discrimination may not be 

waived. 

§ 684.930 May Indian and Native American 

program grantees combine or consolidate 

their employment and training funds? 

Yes. INA program grantees may 

consolidate their employment and 

training funds under WIOA with 

assistance received from related 

programs in accordance with the 

provisions of the Public Law 102–477, 

the Indian Employment, Training, and 

Related Services Demonstration Act of 

1992, as amended by Public Law 106– 

568, the Omnibus Indian Advancement 

Act of 2000 (25 U.S.C. 3401 et seq.). 

WIOA funds consolidated under Public 

Law 102–477 are administered by 

Department of Interior (DOI). 

Accordingly, the administrative 

oversight for funds transferred to DOI, 

including the reporting of financial 

expenditures and program outcomes are 

the responsibility of the DOI. However, 

the Department of Labor must review 

the initial 477 plan and ensure that all 

Departmental programmatic and 

financial obligations have been met 

before WIOA funds are approved to be 

transferred to DOI and consolidated 

with other related programs. The initial 

plan must meet the statutory 

requirements of WIOA. After approval 

of the initial plan, all subsequent plans 

that are renewed or updated from the 

initial plan may be approved by the 

Department of Interior without further 

review by the Department. 

§ 684.940 What is the role of the Native 

American Employment and Training 

Council? 

The Native American Employment 

and Training Council is a body 

composed of representatives of the 

grantee community which advises the 

Secretary on the operation and 

administration of the INA employment 

and training program. WIOA sec. 

166(i)(4) continues the Council 

essentially as it is currently constituted. 

The Department continues to support 

the Council. 

§ 684.950 Does the Workforce Innovation 

and Opportunity Act provide any additional 

assistance to unique populations in Alaska 

and Hawaii? 

Yes. Notwithstanding any other 

provision of law, the Secretary is 

authorized to award grants, on a 

competitive basis, to entities with 

demonstrated experience and expertise 

in developing and implementing 

programs for the unique populations 

who reside in Alaska or Hawaii, 

including public and private nonprofit 

organizations, tribal organizations, 

American Indian tribal colleges or 

universities, institutions of higher 

education, or consortia of such 

organizations or institutions, to improve 

job training and workforce investment 

activities for such unique populations. 

(WIOA, sec. 166(k)) 

■ 12. Add part 685 to read as follows: 

PART 685—NATIONAL FARMWORKER 

JOBS PROGRAM UNDER TITLE I OF 

THE WORKFORCE INNOVATION AND 

OPPORTUNITY ACT 

Subpart A—Purpose and Definitions 

Sec. 

685.100 What is the purpose of the National 

Farmworker Jobs Program and the other 

services and activities established under 

the Workforce Innovation and 

Opportunity Act? 

685.110 What definitions apply to this 

program? 

685.120 How does the Department 

administer the National Farmworker Jobs 

Program? 

685.130 How does the Department assist 

grantees to serve eligible migrant and 

seasonal farmworkers? 

685.140 What Workforce Innovation and 

Opportunity Act regulations apply to the 

programs authorized under the 

Workforce Innovation and Opportunity 

Act? 

Subpart B—The Service Delivery System for 

the National Farmworker Jobs Program 

685.200 Who is eligible to receive a 

National Farmworker Jobs Program 

grant? 

685.210 How does an eligible entity become 

a grantee? 

685.220 What is the role of the grantee in 

the one-stop delivery system? 

685.230 Can a grantee’s designation be 

terminated? 

685.240 How does the Department use 

funds appropriated under the Workforce 

Innovation and Opportunity Act for the 

National Farmworker Jobs Program? 

Subpart C—The National Farmworker Jobs 

Program Services to Eligible Migrant and 

Seasonal Farmworkers 

685.300 What are the general 

responsibilities of grantees? 

685.310 What are the basic components of 

an National Farmworker Jobs Program 

service delivery strategy? 

685.320 Who is eligible to receive services 

under the National Farmworker Jobs 

Program? 

685.330 How are services delivered to 

eligible migrant and seasonal 

farmworkers? 

685.340 What career services must grantees 

provide to eligible migrant and seasonal 

farmworkers? 

685.350 What training services must 

grantees provide to eligible migrant and 

seasonal farmworkers? 

685.360 What housing services must 

grantees provide to eligible migrant and 

seasonal farmworkers? 

685.370 What services may grantees 

provide to eligible migrant and seasonal 


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farmworkers youth participants aged 14– 

24? 

685.380 What related assistance services 

may be provided to eligible migrant and 

seasonal farmworkers? 

685.390 When may eligible migrant and 

seasonal farmworkers receive related 

assistance? 

Subpart D—Performance Accountability, 

Planning, and Waiver Provisions 

685.400 What are the indicators of 

performance that apply to the National 

Farmworker Jobs Program? 

685.410 What planning documents must a 

grantee submit? 

685.420 What information is required in the 

grantee program plan? 

685.430 Under what circumstances are the 

terms of the grantee’s program plan 

modified by the grantee or the 

Department? 

685.440 How are costs classified under the 

National Farmworker Jobs Program? 

685.450 What is the Workforce Innovation 

and Opportunity Act administrative cost 

limit for National Farmworker Jobs 

Program grants? 

685.460 Are there regulatory and/or 

statutory waiver provisions that apply to 

the Workforce Innovation and 

Opportunity Act? 

685.470 How can grantees request a waiver? 

Subpart E—Supplemental Youth Workforce 

Investment Activity Funding Under the 

Workforce Innovation and Opportunity Act 

685.500 What is supplemental youth 

workforce investment activity funding? 

685.510 What requirements apply to grants 

funded by the Workforce Innovation and 

Opportunity Act? 

685.520 What is the application process for 

obtaining a grant funded by the 

Workforce Innovation and Opportunity 

Act? 

685.530 What planning documents are 

required for grants funded by the 

Workforce Innovation and Opportunity 

Act? 

685.540 How are funds allocated to grants 

funded by the Workforce Innovation and 

Opportunity Act? 

685.550 Who is eligible to receive services 

through grants funded by the Workforce 

Innovation and Opportunity Act? 

Authority: Secs. 167, 189, 503, Pub. L. 

113–128, 128 Stat. 1425 (Jul. 22, 2014). 

Subpart A—Purpose and Definitions 

§ 685.100 What is the purpose of the 

National Farmworker Jobs Program and the 

other services and activities established 

under the Workforce Innovation and 

Opportunity Act? 

The purpose of the NFJP and the other 

services and activities established under 

WIOA sec. 167 is to strengthen the 

ability of eligible migrant and seasonal 

farmworkers (MSFWs) and their 

dependents to obtain or retain 

unsubsidized employment, stabilize 

their unsubsidized employment and 

achieve economic self-sufficiency, 

including upgraded employment in 

agriculture. This part provides the 

regulatory requirements applicable to 

the expenditure of WIOA secs. 167 and 

127(a)(1) funds for such programs, 

services and activities. 

§ 685.110 What definitions apply to this 

program? 

In addition to the definitions found in 

20 CFR 675.300, the following 

definitions apply to programs under this 

part: 

Allowances means direct payments 

made to participants during their 

enrollment to enable them to participate 

in the career services described in 

WIOA sec. 134(c)(2)(A)(xii) or training 

services as appropriate. 

Dependent means an individual who: 

(1) Was claimed as a dependent on 

the eligible MSFW’s Federal income tax 

return for the previous year; or 

(2) Is the spouse of the eligible 

MSFW; or 

(3) If not claimed as a dependent for 

Federal income tax purposes, is able to 

establish: 

(i) A relationship as the eligible 

MSFW’s; 

(A) Child, grandchild, great 

grandchild, including legally adopted 

children; 

(B) Stepchild; 

(C) Brother, sister, half-brother, halfsister, stepbrother, or stepsister; 

(D) Parent, grandparent, or other 

direct ancestor but not foster parent; 

(E) Foster child; 

(F) Stepfather or stepmother; 

(G) Uncle or aunt; 

(H) Niece or nephew; 

(I) Father-in-law, mother-in-law, sonin-law; or 

(J) Daughter-in-law, brother-in-law, or 

sister-in-law; and 

(ii) The receipt of over half of his/her 

total support from the eligible MSFW’s 

family during the eligibility 

determination period. 

Eligibility determination period 

means any consecutive 12-month period 

within the 24-month period 

immediately preceding the date of 

application for the MSFW program by 

the applicant MSFW. 

Eligible migrant farmworker means an 

eligible seasonal farmworker as defined 

in WIOA sec. 167(i)(3) whose 

agricultural labor requires travel to a job 

site such that the farmworker is unable 

to return to a permanent place of 

residence within the same day; and 

dependents of the migrant farmworker, 

as described in WIOA 167(i)(2). 

Eligible migrant and seasonal 

farmworker means an eligible migrant 

farmworker or an eligible seasonal 

farmworker, also referred to in this 

regulation as an ‘‘eligible MSFW,’’ as 

defined in WIOA sec. 167(i). 

Eligible MSFW youth means an 

eligible MSFW aged 14–24 who is 

individually eligible or is a dependent 

of an eligible MSFW. The term eligible 

MSFW youth is a subset of the term 

eligible MSFW defined in this section. 

Eligible seasonal farmworker means a 

low-income individual who for 12 

consecutive months out of the 24 

months prior to application for the 

program involved, has been primarily 

employed in agricultural or fish farming 

labor that is characterized by chronic 

unemployment or underemployment; 

and faces multiple barriers to economic 

self-sufficiency; and dependents of the 

seasonal farmworker as described in 

WIOA 167(i)(3). 

Emergency assistance is a form of 

‘‘related assistance’’ and means 

assistance that addresses immediate 

needs of eligible MSFWs and their 

dependents, provided by grantees. An 

applicant’s self-certification is accepted 

as sufficient documentation of eligibility 

for emergency assistance. 

Family, for the purpose of reporting 

housing assistance grantee indicators of 

performance as described in in 

§ 685.400, means the eligible MSFW(s) 

and all the individuals identified under 

the definition of dependent in this 

section who are living together in one 

physical residence. 

Farmwork means work while 

employed in the occupations described 

in 20 CFR 651.10. 

Grantee means an entity to which the 

Department directly awards a WIOA 

grant to carry out programs to serve 

eligible MSFWs in a service area, with 

funds made available under WIOA sec. 

167 or 127(a)(1). 

Housing assistance means housingrelated services provided to eligible 

MSFWs. 

Lower living standard income level 

means the income level as defined in 

WIOA sec. 3(36)(B). 

Low-income individual means an 

individual as defined in WIOA sec. 

3(36)(A). 

MOU means Memorandum of 

Understanding. 

National Farmworker Jobs Program 

(NFJP) is the Department of Laboradministered workforce investment 

program for eligible MSFWs established 

by WIOA sec. 167 as a required partner 

of the one-stop system and includes 

both career services and training grants, 

and housing grants. 

Recognized post-secondary credential 

means a credential as defined in WIOA 

sec. 3(52). 

Related assistance means short-term 

forms of direct assistance designed to 


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assist eligible MSFWs retain or stabilize 

their agricultural employment. 

Examples of related assistance may 

include, but are not limited to, services 

such as transportation assistance or 

providing work clothing. 

Self-certification means an eligible 

MSFW’s signed attestation that the 

information he/she submits to 

demonstrate eligibility for the NFJP is 

true and accurate. 

Service area means the geographical 

jurisdiction, which may be comprised of 

one or more designated State or subState areas, in which a WIOA sec. 167 

grantee is designated to operate. 

Technical assistance means 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. 

§ 685.120 How does the Department 

administer the National Farmworker Jobs 

Program? 

The Department’s Employment and 

Training Administration (ETA) 

administers NFJP activities required 

under WIOA sec. 167 for eligible 

MSFWs. As described in § 685.210, the 

Department designates grantees using 

procedures consistent with standard 

Federal government competitive 

procedures. 

§ 685.130 How does the Department assist 

grantees to serve eligible migrant and 

seasonal farmworkers? 

The Department provides guidance, 

administrative support, technical 

assistance, and training to grantees for 

the purposes of program 

implementation, and program 

performance management to enhance 

services and promote continuous 

improvement in the employment 

outcomes of eligible MSFWs. 

§ 685.140 What regulations apply to the 

programs authorized under the Workforce 

Innovation and Opportunity Act? 

The regulations that apply to 

programs authorized under WIOA sec. 

167 are: 

(a) The regulations found in this part; 

(b) The general administrative 

requirements found in 20 CFR part 683, 

including the regulations concerning 

Complaints, Investigations and Hearings 

found at 20 CFR part 683, subpart D 

through subpart H, which cover 

programs under WIOA sec. 167; 

(c) 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; 

(d) The regulations on partnership 

responsibilities contained in 20 CFR 

parts 679 (Statewide and Local 

Governance) and 678 (the One-Stop 

System); and 

(e) The Department’s regulations at 29 

CFR part 37, which implement the 

nondiscrimination provisions of WIOA 

sec. 188. 

Subpart B—The Service Delivery 

System for the National Farmworker 

Jobs Program 

§ 685.200 Who is eligible to receive a 

National Farmworker Jobs Program grant? 

To be eligible to receive a grant under 

this section, an entity must have: 

(a) An understanding of the problems 

of eligible MSFWs; 

(b) A familiarity with the agricultural 

industries and the labor market needs of 

the proposed service area; 

(c) 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. 

§ 685.210 How does an eligible entity 

become a grantee? 

To become a grantee and receive a 

grant under this subpart, an applicant 

must respond to a Funding Opportunity 

Announcement (FOA). Under the FOA, 

grantees will be selected using standard 

Federal government competitive 

procedures. The entity’s proposal must 

include a program plan, which is a 4- 

year strategy for meeting the needs of 

eligible MSFWs in the proposed service 

area, and a description of the entities 

experience working with the broader 

workforce delivery system. 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 this section 

is denied in whole or in part may 

request an administrative review under 

20 CFR 683.800. 

§ 685.220 What is the role of the grantee in 

the one-stop delivery system? 

In those local workforce investment 

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 

which sets forth their respective 

responsibilities for providing access to 

the full range of NFJP services through 

the one-stop system to eligible MSFWs. 

§ 685.230 Can a grantee’s designation be 

terminated? 

Yes, a grantee’s designation may be 

terminated by the Department for cause: 

(a) in emergency circumstances when 

such action is necessary to protect the 

integrity of Federal funds or to ensure 

the proper operation of the program. 

Any grantee so terminated will be 

provided with written notice and an 

opportunity for a hearing within 30 days 

after the termination (WIOA sec. 184(e)); 

or (b) by the Department’s Grant Officer, 

if the recipient materially fails to 

comply with the terms and conditions 

of the award. In such a case, the Grant 

Officer will follow the administrative 

regulations at 20 CFR 683.440. 

§ 685.240 How does the Department use 

funds appropriated under the Workforce 

Innovation and Opportunity Act for the 

National Farmworker Jobs Program? 

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 established 

by the Secretary. The Department will 

use a percentage of the funds allocated 

for State service areas for housing 

grants, specified in a FOA issued by the 

Department. The Department will use 

up to one percent of the appropriated 

funds for discretionary purposes, such 

as technical assistance to eligible 

entities and other activities prescribed 

by the Secretary. 

Subpart C—The National Farmworker 

Jobs Program Services to Eligible 

Migrant and Seasonal Farmworkers 

§ 685.300 What are the general 

responsibilities of grantees? 

(a) The Department awards career 

services and training grants and housing 

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. Housing grantees are 

responsible for providing housing 

assistance to eligible MSFWs. 

(b) Grantees will provide these 

services in accordance with the service 

delivery strategy meeting the 

requirements of § 685.310 and as 

described in their 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. 


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(c) Grantees are responsible for 

coordinating services; particularly 

outreach to MSFWs, with the State 

Workforce Agency as defined in 20 CFR 

part 651 and the State’s monitor 

advocate. 

(d) Grantees are responsible for 

fulfilling the responsibilities of one-stop 

partners described in § 678.420. 

§ 685.310 What are the basic components 

of an National Farmworker Jobs Program 

service delivery strategy? 

The NFJP service delivery strategy 

must include: 

(a) A customer-focused case 

management approach; 

(b) The provision of workforce 

investment activities to eligible MSFWs 

which include career services and 

training, as described in WIOA secs. 

167(d) and 134, and 20 CFR part 680. 

(c) The provision of youth workforce 

investment activities described in WIOA 

sec. 129 and 20 CFR part 681 may be 

provided to eligible MSFW youth; 

(d) The arrangements under the 

MOUs with the applicable Local 

Workforce Development Boards for the 

delivery of the services available 

through the one-stop system to MSFWs; 

and 

(e) Related assistance services. 

§ 685.320 Who is eligible to receive 

services under the National Farmworker 

Jobs Program? 

Eligible migrant farmworkers 

(including eligible MSFW youth) and 

eligible seasonal farmworkers (including 

eligible MSFW youth) as defined in 

§ 685.110 are eligible for services 

funded by the NFJP. 

§ 685.330 How are services delivered to 

eligible migrant and seasonal farmworkers? 

To ensure that all services are focused 

on the customer’s needs, services are 

provided through a case-management 

approach emphasizing customer choice 

and may include: appropriate career 

services and training; related assistance, 

which includes emergency assistance; 

and supportive services, which includes 

allowance payments. The basic services 

and delivery of case-management 

activities are further described in 

§§ 685.340 through 685.390. 

§ 685.340 What career services must 

grantees provide to eligible migrant and 

seasonal farmworkers? 

(a) Grantees must provide the career 

services described in WIOA secs. 167(d) 

and 134(c)(2), and 20 CFR part 680 to 

eligible MSFWs. 

(b) Grantees must provide other 

services identified in the approved 

program plan. 

(c) Grantees must provide access to 

career services through the one-stop 

delivery system. Grantees can also 

provide career services through sources 

outside the one-stop system. 

(d) 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. 

§ 685.350 What training services must 

grantees provide to eligible migrant and 

seasonal farmworkers? 

(a) Grantees must provide the training 

activities described in WIOA secs. 

167(d) and 134(c)(3)(D), and 20 CFR part 

680 to eligible MSFWs. These activities 

include, but are not limited to, 

occupational-skills training and on-thejob training. Eligible MSFWs are not 

required to receive career services prior 

to receiving training services. 

(b) Training services must 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. 

(c) Training activities must encourage 

the attainment of recognized postsecondary credentials as defined in 

§ 685.110 when appropriate for an 

eligible MSFW. 

§ 685.360 What housing services must 

grantees provide to eligible migrant and 

seasonal farmworkers? 

(a) Housing grantees must provide 

housing services to eligible MSFWs. 

(b) Career services and training 

grantees may provide housing services 

to eligible MSFWs as described in their 

program plan. 

(c) Housing services include the 

following: 

(1) Permanent housing that is owneroccupied, or occupied on a permanent, 

year-round basis (notwithstanding 

ownership) as the eligible MSFW’s 

primary residence to which he/she 

returns at the end of the work or 

training day; and 

(2) Temporary housing that is not 

owner-occupied and is used by MSFWs 

whose employment requires occasional 

travel outside their normal commuting 

area. 

(d) Permanent housing services 

include but are not limited to: 

Investments in development services, 

project management, and resource 

development to secure acquisition, 

construction/renovation and operating 

funds, property management services, 

and program management. New 

construction, purchase of existing 

structures, and rehabilitation of existing 

structures, as well as the infrastructure, 

utilities, and other improvements 

necessary to complete or maintain those 

structures may also be considered part 

of managing permanent housing. 

(e) Temporary housing services 

include but not limited to: Housing 

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, 

closed during the off-season, or handled 

through other similar arrangements; 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. Managing temporary housing 

may involve property management of 

temporary housing facilities, case 

management, and referral services, and 

emergency housing payments, including 

vouchers and cash payments for rent/

lease and utilities. 

(f) Housing services may only be 

provided when the services are required 

to meet the needs of eligible MSFWs to 

occupy a unit of housing for reasons 

related to seeking or retaining 

employment, or engaging in training. 

§ 685.370 What services may grantees 

provide to eligible migrant and seasonal 

farmworkers youth participants aged 14– 

24? 

(a) Based on an evaluation and 

assessment of the needs of eligible 

MSFW youth, grantees may provide 

activities and services that include but 

are not limited to: 

(1) Career services and training as 

described in §§ 685.340 and 685.350; 

(2) Youth workforce investment 

activities specified in WIOA sec. 129; 

(3) Life skills activities which may 

include self- and interpersonal skills 

development; 

(4) Community service projects; 

(b) Other activities and services that 

conform to the use of funds for youth 

activities described in 20 CFR part 681. 

(c) 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). 

§ 685.380 What related assistance services 

may be provided to eligible migrant and 

seasonal farmworkers? 

Related assistance may include shortterm direct services and activities. 

Examples include emergency assistance, 

as defined in § 685.110, and those 


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activities identified in WIOA sec. 

167(d), such as: English language and 

literacy instruction; pesticide and 

worker safety training; housing 

(including permanent housing), as 

described in § 685.360 and as provided 

in the approved program plan; and 

school dropout prevention and recovery 

activities. Related assistance may be 

provided to eligible MSFWs not 

enrolled in career services, youth 

services, or training services. 

§ 685.390 When may eligible migrant and 

seasonal farmworkers receive related 

assistance? 

Eligible MSFWs may receive related 

assistance services when the grantee 

identifies and documents the need for 

the related assistance, which may 

include a statement by the eligible 

MSFW. 

Subpart D—Performance 

Accountability, Planning, and Waiver 

Provisions 

§ 685.400 What are the indicators of 

performance that apply to the National 

Farmworker Jobs Program? 

(a) For grantees providing career 

services and training, the Department 

will use the indicators of performance 

common to the adult and youth 

programs, described in WIOA sec. 

116(b)(2)(A). 

(b) For grantees providing career 

services and training, the Department 

will reach agreement with individual 

grantees on the levels of performance for 

each of the primary indicators of 

performance, taking into account 

economic conditions, characteristics of 

the individuals served, and other 

appropriate factors, and using, to the 

extent practicable, the statistical 

adjustment model under WIOA sec. 

116(b)(3)(A)(viii). Once agreement on 

the levels of performance for each of the 

primary indicators of performance is 

reached with individual grantees, the 

Department will incorporate the 

adjusted levels of performance in the 

grant plan. 

(c) 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. 

(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. 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. 

(e) Grantees may develop additional 

performance indicators and include 

them in the program plan or in periodic 

performance reports. 

§ 685.410 What planning documents must 

a grantee submit? 

Each grantee receiving WIOA sec. 167 

program funds must submit to the 

Department a comprehensive program 

plan and a projection of participant 

services and expenditures in accordance 

with instructions issued by the 

Secretary. 

§ 685.420 What information is required in 

the grantee program plan? 

A grantee’s 4-year program plan must 

describe: 

(a) The service area that the applicant 

proposes to serve; 

(b) The population to be served and 

the education and employment needs of 

the MSFW population to be served; 

(c) The manner in which proposed 

services to eligible MSFWs will 

strengthen their ability to obtain or 

retain unsubsidized employment or 

stabilize their unsubsidized 

employment, including upgraded 

employment in agriculture; 

(d) The related assistance and 

supportive services to be provided and 

the manner in which such assistance 

and services are to be integrated and 

coordinated with other appropriate 

services; 

(e) The performance accountability 

measures that will be used to assess the 

performance of the entity in carrying out 

the NFJP program activities, including 

the expected levels of performance for 

the primary indicators of performance 

described in § 685.400; 

(f) The availability and accessibility of 

local resources, such as supportive 

services, services provided through onestop delivery systems, and education 

and training services, and how the 

resources can be made available to the 

population to be served; 

(g) The plan for providing services 

including strategies and systems for 

outreach, career planning, assessment, 

and delivery through one-stop delivery 

systems; 

(h) The methods the grantee will use 

to target its services on specific 

segments of the eligible population, as 

appropriate; and 

(i) Such other information as required 

by the Secretary in instructions issued 

under § 685.410. 

§ 685.430 Under what circumstances are 

the terms of the grantee’s program plan 

modified by the grantee or the Department? 

(a) Plans must be modified to reflect 

the funding level for each year of the 

grant. 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. 

(b) The grantee must submit a request 

to the Department for any proposed 

modifications to its plan to add, delete, 

expand, or reduce any part of the 

program plan or allowable activities. 

The Department will consider the cost 

principles, uniform administrative 

requirements, and terms and conditions 

of award when reviewing modifications 

to program plans. 

(c) If the grantee is approved for a 

regulatory waiver under §§ 685.460 and 

685.470, the grantee must submit a 

modification of its grant plan to reflect 

the effect of the waiver. 

§ 685.440 How are costs classified under 

the National Farmworker Jobs Program? 

(a) Costs are classified as follows: 

(1) Administrative costs, as defined in 

20 CFR 683.215; and 

(2) Program costs, which are all other 

costs not defined as administrative. 

(b) Program costs must be classified 

and reported in the following categories: 

(1) Related assistance (including 

emergency assistance); 

(2) Supportive services; and 

(3) All other program services. 

§ 685.450 What is the Workforce 

Innovation and Opportunity Act 

administrative cost limit for National 

Farmworker Jobs Program grants? 

Under 20 CFR 683.205(b), limits on 

administrative costs for programs 

operated under subtitle D of WIOA title 

I will be identified in the grant or 

contract award document. 

Administrative costs will not exceed 15 

percent of total grantee funding. 

§ 685.460 Are there regulatory and/or 

statutory waiver provisions that apply to the 

Workforce Innovation and Opportunity Act? 

(a) The statutory waiver provision at 

WIOA sec. 189(i) and discussed in 20 

CFR 679.600 does not apply to any NFJP 

grant under WIOA sec. 167. 

(b) Grantees may request waiver of 

any regulatory provisions only when 

such regulatory provisions are: 

(1) Not required by WIOA; 

(2) Not related to wage and labor 

standards, non-displacement protection, 

worker rights, participation and 

protection of workers and participants, 

and eligibility of participants, grievance 

procedures, judicial review, 


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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. 

§ 685.470 How can grantees request a 

waiver? 

To request a waiver, a grantee must 

submit to the Department a waiver plan 

that: 

(a) Describes the goals of the waiver, 

the expected programmatic outcomes, 

and how the waiver will improve the 

provision of program activities; 

(b) Is consistent with any guidelines 

the Department establishes; 

(c) Describes the data that will be 

collected to track the impact of the 

waiver; and 

(d) Includes a modified program plan 

reflecting the effect of the requested 

waiver. 

Subpart E—Supplemental Youth 

Workforce Investment Activity Funding 

Under the Workforce Innovation and 

Opportunity Act 

§ 685.500 What is supplemental youth 

workforce investment activity funding? 

Pursuant to WIOA sec. 127(a)(1), 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. 

§ 685.510 What requirements apply to 

grants funded by the Workforce Innovation 

and Opportunity Act? 

The requirements in subparts A 

through D of this regulation 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). 

§ 685.520 What is the application process 

for obtaining a grant funded by the 

Workforce Innovation and Opportunity Act? 

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. 

§ 685.530 What planning documents are 

required for grants funded by the Workforce 

Innovation and Opportunity Act? 

The required planning documents 

will be described in the FOA. 

§ 685.540 How are funds allocated to 

grants funded by the Workforce Innovation 

and Opportunity Act? 

The allocation of funds will be based 

on the comparative merits of the 

applications, in accordance with criteria 

set forth in the FOA. 

§ 685.550 Who is eligible to receive 

services through grants funded by the 

Workforce Innovation and Opportunity Act? 

Eligible MSFW youth as defined in 

§ 685.110 are eligible to receive services 

through grants funded by WIOA sec. 

127(a)(1). 

■ 13. Add part 686 to read as follows: 

PART 686—THE JOB CORPS UNDER 

TITLE I OF THE WORKFORCE 

INNOVATION AND OPPORTUNITY ACT 

Subpart A—Scope and Purpose 

Sec. 

686.100 What is the scope of this part? 

686.110 What is the Job Corps program? 

686.120 What definitions apply to this 

part? 

686.130 What is the role of the Job Corps 

Director? 

Subpart B—Site Selection and Protection 

and Maintenance of Facilities 

686.200 How are Job Corps center locations 

and sizes determined? 

686.210 How are center facility 

improvements and new construction 

handled? 

686.220 Who is responsible for the 

protection and maintenance of center 

facilities? 

Subpart C—Funding and Selection of 

Center Operators and Service Providers 

686.300 What entities are eligible to receive 

funds to operate centers and provide 

training and operational support 

services? 

686.310 How are entities selected to receive 

funding to operate centers? 

686.320 What if a current center operator is 

deemed to be an operator of a highperforming center? 

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? 

686.340 How are entities selected to receive 

funding to provide outreach and 

admission, career transition and other 

operations support services? 

686.350 What conditions apply to the 

operation of a Civilian Conservation 

Center? 

686.360 What are the requirements for 

award of contracts and payments to 

Federal agencies? 

Subpart D—Recruitment, Eligibility, 

Screening, Selection and Assignment, and 

Enrollment 

686.400 Who is eligible to participate in the 

Job Corps program? 

686.410 Are there additional factors which 

are considered in selecting an eligible 

applicant for enrollment? 

686.420 Are there any special requirements 

for enrollment related to the Military 

Selective Service Act? 

686.430 What entities conduct outreach and 

admissions activities for the Job Corps 

program? 

686.440 What are the responsibilities of 

outreach and admissions providers? 

686.450 How are applicants who meet 

eligibility and selection criteria assigned 

to centers? 

686.460 What restrictions are there on the 

assignment of eligible applicants for 

nonresidential enrollment in Job Corps? 

686.470 May an individual who is 

determined to be ineligible or an 

individual who is denied enrollment 

appeal that decision? 

686.480 At what point is an applicant 

considered to be enrolled in Job Corps? 

686.490 How long may a student be 

enrolled in Job Corps? 

Subpart E—Program Activities and Center 

Operations 

686.500 What services must Job Corps 

centers provide? 

686.505 What types of training must Job 

Corps centers provide? 

686.510 Are entities other than Job Corps 

center operators permitted to provide 

academic and career technical training? 

686.515 What are advanced career training 

programs? 

686.520 What responsibilities do the center 

operators have in managing work-based 

learning? 

686.525 Are students permitted to hold jobs 

other than work-based learning 

opportunities? 

686.530 What residential support services 

must Job Corps center operators provide? 

686.535 Are Job Corps centers required to 

maintain a student accountability 

system? 

686.540 Are Job Corps centers required to 

establish behavior management systems? 

686.545 What is Job Corps’ zero tolerance 

policy? 

686.550 How does Job Corps ensure that 

students receive due process in 

disciplinary actions? 

686.555 What responsibilities do Job Corps 

centers have in assisting students with 

child care needs? 

686.560 What are the center’s 

responsibilities in ensuring that 

students’ religious rights are respected? 

686.565 Is Job Corps authorized to conduct 

pilot and demonstration projects? 

Subpart F—Student Support 

686.600 Are students provided with 

government-paid transportation to and 

from Job Corps centers? 

686.610 When are students authorized to 

take leaves of absence from their Job 

Corps centers? 

686.620 Are Job Corps students eligible to 

receive cash allowances and 

performance bonuses? 

686.630 Are student allowances subject to 

Federal payroll taxes? 

686.640 Are students provided with 

clothing? 


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Subpart G—Career Transition and Graduate 

Services 

686.700 What are a Job Corps center’s 

responsibilities in preparing students for 

career transition services? 

686.710 What career transition services are 

provided for Job Corps enrollees? 

686.720 Who provides career transition 

services? 

686.730 What are the responsibilities of 

career transition service providers? 

686.740 What services are provided for 

program graduates? 

686.750 Are graduates provided with 

transition allowances? 

686.760 What services are provided to 

former enrollees? 

Subpart H—Community Connections 

686.800 How do Job Corps centers and 

service providers become involved in 

their local communities? 

686.810 What is the makeup of a workforce 

council and what are its responsibilities? 

686.820 How will Job Corps coordinate 

with other agencies? 

Subpart I—Administrative and Management 

Provisions 

686.900 Are damages caused by the acts or 

omissions of students eligible for 

payment under the Federal Tort Claims 

Act? 

686.905 Are loss and damages that occur to 

persons or personal property of students 

at Job Corps centers eligible for 

reimbursement? 

686.910 If a student is injured in the 

performance of duty as a Job Corps 

student, what benefits may the student 

receive? 

686.915 When is a Job Corps student 

considered to be in the performance of 

duty? 

686.920 How are students protected from 

unsafe or unhealthy situations? 

686.925 What are the requirements for 

criminal law enforcement jurisdiction on 

center property? 

686.930 Are Job Corps operators and service 

providers authorized to pay State or local 

taxes on gross receipts? 

686.935 What are the financial management 

responsibilities of Job Corps center 

operators and other service providers? 

686.940 Are center operators and service 

providers subject to Federal audits? 

686.945 What are the procedures for 

management of student records? 

686.950 What procedures apply to 

disclosure of information about Job 

Corps students and program activities? 

686.955 What are the reporting 

requirements for center operators and 

operational support service providers? 

686.960 What procedures are available to 

resolve complaints and disputes? 

686.965 How does Job Corps ensure that 

complaints or disputes are resolved in a 

timely fashion? 

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? 

686.975 How does Job Corps ensure that 

contract disputes will be resolved? 

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 

Job Corps centers? 

686.985 What Department of Labor equal 

opportunity and nondiscrimination 

regulations apply to Job Corps? 

Subpart J—Performance 

686.1000 How is the performance of the 

Job Corps program assessed? 

686.1010 What are the primary indicators of 

performance for Job Corps centers and 

the Job Corps program? 

686.1020 What are the indicators of 

performance for Job Corps outreach and 

admissions providers? 

686.1030 What are the indicators of 

performance for Job Corps career 

transition service providers? 

686.1040 What information will be 

collected for use in the Annual Report? 

686.1050 How are the expected levels of 

performance for Job Corps centers, 

outreach and admissions providers and 

career transition service providers 

established? 

686.1060 How are center rankings 

established? 

686.1070 How and when will the Secretary 

use Performance Improvement Plans? 

Authority: Secs. 142, 144, 146, 147, 159, 

189, 503, Pub. L. 113–128, 128 Stat. 1425 

(Jul. 22, 2014). 

Subpart A—Scope and Purpose 

§ 686.100 What is the scope of this part? 

The regulations in this part outline 

the requirements that apply to the Job 

Corps program. More detailed policies 

and procedures are contained in a 

Policy and Requirements Handbook 

issued by the Secretary. Throughout this 

part, ‘‘instructions (procedures) issued 

by the Secretary’’ and similar references 

refer to the Policy and Requirements 

Handbook and other Job Corps 

directives. 

§ 686.110 What is the Job Corps program? 

Job Corps is a national program that 

operates in partnership with States and 

communities, Local Workforce 

Development Boards, Youth Standing 

Committees where established, one-stop 

centers and partners, and other youth 

programs to provide academic, career 

and technical education, servicelearning, and social opportunities 

primarily in a residential setting, for 

low-income young people. The objective 

of Job Corps is to support responsible 

citizenship and provide young people 

with the skills they need to lead to 

successful careers that will result in 

economic self-sufficiency and 

opportunities for advancement in indemand industry sectors or occupations 

or the Armed Forces, or to enrollment 

in post-secondary education. 

§ 686.120 What definitions apply to this 

part? 

The following definitions apply to 

this part: 

Absent Without Official Leave 

(AWOL) means an adverse enrollment 

status to which a student is assigned 

based on extended, unapproved absence 

from his/her assigned center or offcenter place of duty. Students do not 

earn Job Corps allowances while in 

AWOL status. 

Applicable Local Board means a Local 

Workforce Development Board that: 

(1) Works with a Job Corps center and 

provides information on local 

employment opportunities and the job 

skills and credentials needed to obtain 

the opportunities; and 

(2) Serves communities in which the 

graduates of the Job Corps seek 

employment. 

Applicable one-stop center means a 

one-stop center that provides career 

transition services, such as referral, 

assessment, recruitment, and placement, 

to support the purposes of the Job 

Corps. 

Capital improvement means any 

modification, addition, restoration or 

other improvement: 

(1) Which increases the usefulness, 

productivity, or serviceable life of an 

existing site, facility, building, structure, 

or major item of equipment; 

(2) Which is classified for accounting 

purposes as a ‘‘fixed asset;’’ and 

(3) The cost of which increases the 

recorded value of the existing building, 

site, facility, structure, or major item of 

equipment and is subject to 

depreciation. 

Career technical training means 

career and technical education and 

training. 

Career transition service provider 

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. 

Civilian Conservation Center (CCC) 

means a center operated on public land 

under an agreement between the 

Department of Labor (DOL or the 

Department) and the Department of 

Agriculture, which provides, in addition 

to other training and assistance, 

programs of work-based learning to 

conserve, develop, or manage public 

natural resources or public recreational 

areas or to develop community projects 

in the public interest. 

Contract center means a Job Corps 

center operated under a contract with 

the Department. 

Contracting officer means an official 

authorized to enter into contracts or 

agreements on behalf of the Department. 


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Enrollee means an individual who has 

voluntarily applied for, been selected 

for, and enrolled in the Job Corps 

program, and remains with the program, 

but has not yet become a graduate. 

Enrollees are also referred to as 

‘‘students’’ in this part. 

Enrollment means the process by 

which an individual formally becomes a 

student in the Job Corps program. 

Former enrollee means an individual 

who has voluntarily applied for, been 

selected for, and enrolled in the Job 

Corps program, but left the program 

prior to becoming a graduate. 

Graduate means an individual who 

has voluntarily applied for, been 

selected for, and enrolled in the Job 

Corps program and who, as a result of 

participation in the program, has 

received a secondary school diploma or 

recognized equivalent, or has completed 

the requirements of a career technical 

training program that prepares 

individuals for employment leading to 

economic self-sufficiency or entrance 

into post-secondary education or 

training. 

Individual with a disability means an 

individual with a disability as defined 

in sec. 3 of the Americans with 

Disabilities Act of 1990 (42 U.S.C. 

12102). 

Interagency agreement means a formal 

agreement between the Department and 

another Federal agency administering 

and operating centers. The agreement 

establishes procedures for the funding, 

administration, operation, and review of 

those centers as well as the resolution 

of any disputes. 

Job Corps means the Job Corps 

program established within the 

Department of Labor and described in 

sec. 143 of the Workforce Innovation 

and Opportunity Act (WIOA). 

Job Corps center means a facility and 

an organizational entity, including all of 

its parts, providing Job Corps training 

and designated as a Job Corps center, as 

described in sec. 147 of WIOA. 

Job Corps Director means the chief 

official of the Job Corps or a person 

authorized to act for the Job Corps 

Director. 

Low-income individual means an 

individual who meets the definition in 

WIOA sec. 3(36). 

National Office means the national 

office of Job Corps. 

National training contractor means a 

labor union, union-affiliated 

organization, business organization, 

association or a combination of such 

organizations, which has a contract with 

the national office to provide career 

technical training, career transition 

services, or other services. 

Operational support services means 

activities or services required to support 

the operation of Job Corps, including: 

(1) Outreach and admissions services; 

(2) Contracted career technical 

training and off-center training; 

(3) Career transition services; 

(4) Continued services for graduates; 

(5) Certain health services; and 

(6) Miscellaneous logistical and 

technical support. 

Operator means a Federal, State or 

local agency, or a contractor selected 

under this subtitle to operate a Job 

Corps center under an agreement or 

contract with the Department. 

Outreach and admissions provider 

means an organization that performs 

recruitment services, including outreach 

activities, and screens and enrolls youth 

under a contract or other agreement 

with Job Corps. 

Participant, as used in this part, 

includes both graduates and enrollees 

and former enrollees that have 

completed their career preparation 

period. It also includes all enrollees and 

former enrollees who have remained in 

the program for at least 60 days. 

Placement means student 

employment, entry into the Armed 

Forces, or enrollment in other training 

or education programs following 

separation from Job Corps. 

Regional appeal board means the 

board designated by the Regional 

Director to consider student appeals of 

disciplinary discharges. 

Regional Director means the chief Job 

Corps official of a regional office or a 

person authorized to act for the Regional 

Director. 

Regional Office means a regional 

office of Job Corps. 

Regional Solicitor means the chief 

official of a regional office of the DOL 

Office of the Solicitor, or a person 

authorized to act for the Regional 

Solicitor. 

Separation means the action by which 

an individual ceases to be a student in 

the Job Corps program, either 

voluntarily or involuntarily. 

Service Provider means an entity 

selected under this subtitle to provide 

operational support services described 

in this subtitle to a Job Corps center. 

Student means an individual enrolled 

in the Job Corps. 

Unauthorized goods means: 

(1) Firearms and ammunition; 

(2) Explosives and incendiaries; 

(3) Knives with blades longer than 2 

inches; 

(4) Homemade weapons; 

(5) All other weapons and 

instruments used primarily to inflict 

personal injury; 

(6) Stolen property; 

(7) Drugs, including alcohol, 

marijuana, depressants, stimulants, 

hallucinogens, tranquilizers, and drug 

paraphernalia except for drugs and/or 

paraphernalia that are prescribed for 

medical reasons; and 

(8) Any other goods prohibited by the 

Secretary, Center Director, or center 

operator in a student handbook. 

§ 686.130 What is the role of the Job Corps 

Director? 

The Job Corps Director has been 

delegated the authority to carry out the 

responsibilities of the Secretary under 

title I, subtitle C of WIOA. Where the 

term ‘‘Secretary’’ is used in this part to 

refer to establishment or issuance of 

guidelines and standards directly 

relating to the operation of the Job Corps 

program, the Job Corps Director has that 

responsibility. 

Subpart B—Site Selection and 

Protection and Maintenance of 

Facilities 

§ 686.200 How are Job Corps center 

locations and sizes determined? 

(a) The Secretary must approve the 

location and size of all Job Corps centers 

based on established criteria and 

procedures. 

(b) The Secretary establishes 

procedures for making decisions 

concerning the establishment, 

relocation, expansion, or closing of 

contract centers. 

§ 686.210 How are center facility 

improvements and new construction 

handled? 

The Secretary establishes procedures 

for requesting, approving, and initiating 

capital improvements and new 

construction on Job Corps centers. 

§ 686.220 Who is responsible for the 

protection and maintenance of center 

facilities? 

(a) The Secretary establishes 

procedures for the protection and 

maintenance of contract center facilities 

owned or leased by the Department of 

Labor, that are consistent with the 

current Federal Property Management 

Regulations. 

(b) The U.S. Department of 

Agriculture, when operating Civilian 

Conservation Centers (CCC) on public 

land, is responsible for the protection 

and maintenance of CCC facilities. 

(c) The Secretary issues procedures 

for conducting periodic facility surveys 

of centers to determine their condition 

and to identify needs such as correction 

of safety and health deficiencies, 

rehabilitation, and/or new construction. 


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Subpart C—Funding and Selection of 

Center Operators and Service 

Providers 

§ 686.300 What entities are eligible to 

receive funds to operate centers and 

provide training and operational support 

services? 

(a) Center Operators. Entities eligible 

to receive funds under this subpart to 

operate centers include: 

(1) Federal, State, and local agencies; 

(2) Private organizations, including 

for-profit and non-profit corporations; 

(3) Indian tribes and organizations; 

and 

(4) Area career and technical 

education or residential career and 

technical schools (WIOA sec. 

147(a)(1)(A)). 

(b) Service Providers. Entities eligible 

to receive funds to provide outreach and 

admissions, career transition services 

and other operational support services 

are local or other entities with the 

necessary capacity to provide activities 

described in this part to a Job Corps 

center, including: 

(1) Applicable one-stop centers and 

partners; 

(2) Organizations that have a 

demonstrated record of effectiveness in 

serving at-risk youth and placing them 

into employment, including community 

action agencies; business organizations, 

including private for-profit and nonprofit corporations; and labor 

organizations; and 

(3) Child welfare agencies that are 

responsible for children and youth 

eligible for benefits and services under 

sec. 477 of the Social Security Act (42 

U.S.C. 677). 

§ 686.310 How are entities selected to 

receive funding to operate centers? 

(a) The Secretary selects eligible 

entities to operate contract centers on a 

competitive basis in accordance with 

applicable statutes and regulations. In 

selecting an entity, ETA issues requests 

for proposals (RFPs) for the operation of 

all contract centers according to the 

Federal Acquisition Regulation (48 CFR 

chapter 1) and DOL Acquisition 

Regulation (48 CFR 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 investment area in which the 

center is located (WIOA sec. 

147(b)(1)(A)). 

(b) The RFP for each contract center 

describes uniform specifications and 

standards, as well as specifications and 

requirements that are unique to the 

operation of the specific center. 

(c) The Contracting Officer selects and 

funds Job Corps contract center 

operators on the basis of an evaluation 

of the proposals received using criteria 

established by the Secretary, and set 

forth in the RFP. The criteria include 

the following: 

(1) The offeror’s 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; 

(2) The offeror’s ability to offer career 

technical training that has been 

proposed by the workforce council and 

the degree to which the training reflects 

employment opportunities in the local 

areas in which most of the enrollees 

intend to seek employment; 

(3) The degree to which the offeror 

demonstrates relationships with the 

surrounding communities, including 

employers, labor organizations, State 

Boards, Local Boards, applicable onestop centers, and the State and region in 

which the center is located; and 

(4) The offeror’s past performance, if 

any, relating to operating or providing 

activities to a Job Corps center, 

including information regarding the 

offeror in any reports developed by the 

Office of the Inspector General of the 

Department of Labor and the offeror’s 

demonstrated effectiveness in assisting 

individuals in achieving the indicators 

of performance for eligible youth 

described in sec. 116(b)(2)(A)(ii) of 

WIOA, listed in § 686.1010. 

(5) 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 

technical training. 

(d) In order to be eligible to operate 

a Job Corps center, the offeror must also 

submit the following information at 

such time and in such manner as 

required by the Secretary: 

(1) A description of the program 

activities that will be offered at the 

center and how the academics and 

career technical training reflect State 

and local employment opportunities, 

including opportunities in in-demand 

industry sectors and occupations 

recommended by the workforce council; 

(2) A description of the counseling, 

career transition, and support activities 

that will be offered at the center, 

including a description of the strategies 

and procedures the offeror will use to 

place graduates into unsubsidized 

employment or education leading to a 

recognized post-secondary credential 

upon completion of the program; 

(3) A description of the offeror’s 

demonstrated record of effectiveness in 

placing at-risk youth into employment 

and post-secondary education, 

including past performance of operating 

a Job Corps center and as appropriate, 

the entity’s demonstrated effectiveness 

in assisting individuals in achieving the 

indicators of performance for eligible 

youth described in sec. 116(b)(2)(A)(ii) 

of WIOA, listed in § 686.1010; 

(4) A description of the relationships 

that the offeror has developed with State 

Boards, Local Boards, applicable onestop centers, employers, labor 

organizations, State and local 

educational agencies, and the 

surrounding communities in which the 

center is located; 

(5) A description of the offeror’s 

ability to coordinate the activities 

carried out through the Job Corps center 

with activities carried out under the 

appropriate State Plan and local plans; 

(6) A description of the strong fiscal 

controls the offeror has in place to 

ensure proper accounting of Federal 

funds and compliance with the 

Financial Management Information 

System established by the Secretary 

under sec. 159(a) of WIOA; 

(7) A description of the steps to be 

taken to control costs in accordance 

with the Financial Management 

Information System established by the 

Secretary (WIOA sec. 159(a)(3)); 

(8) A detailed budget of the activities 

that will be supported using Federal 

funds provided under this part and nonFederal resources; 

(9) An assurance the offeror is 

licensed to operate in the State in which 

the center is located; 

(10) An assurance that the offeror will 

comply with basic health and safety 

codes, including required disciplinary 

measures and Job Corps’ Zero Tolerance 

Policy (WIOA sec. 152(b)); and 

(11) Any other information on 

additional selection factors required by 

the Secretary. 

§ 686.320 What if a current center operator 

is deemed to be an operator of a highperforming center? 

(a) If an offeror meets the 

requirements as an operator of a highperforming center as applied to a 

particular Job Corps center, that 

operator will be allowed to compete in 

any competitive selection process 

carried out for an award to operate that 

center (WIOA sec. 147(b)(1)). 

(b) An offeror is considered to be an 

operator of a high-performing center if 

the Job Corps center operated by the 

offeror: 

(1) Is ranked among the top 20 percent 

of Job Corps centers for the most recent 

preceding program year according to the 

rankings calculated under § 686.1060; 

and 

(2) Meets the expected levels of 

performance established under 


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§ 686.1050 with respect to each of the 

primary indicators of performance for 

Job Corps centers: 

(i) For the period of the most recent 

preceding 3 program years for which 

information is available at the time the 

determination is made, achieved an 

average of 100 percent, or higher, of the 

expected level of performance for the 

indicator; and 

(ii) For the most recent preceding 

program year for which information is 

available at the time the determination 

is made, achieved 100 percent, or 

higher, of the expected level of 

performance established for the 

indicator. 

(c) If any of the program years 

described in paragraphs (b)(2)(i) and (ii) 

of this section precedes the 

implementation of the establishment of 

the expected levels of performance 

under § 686.1050 and the application of 

the primary indicators of performance 

for Job Corps centers identified in 

§ 686.1010, an entity is considered an 

operator of a high-performing center 

during that period if the Job Corps 

center operated by the entity: 

(1) Meets the requirements of 

paragraph (b)(2) of this section with 

respect to such preceding program years 

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 for— 

(i) The 6-month follow-up placement 

rate of graduates in employment, the 

military, education or training; 

(ii) The 12-month follow-up 

placement rate of graduates in 

employment, the military, education, or 

training; 

(iii) The 6-month follow-up average 

weekly earnings of graduates; 

(iv) The rate of attainment of 

secondary school diplomas or their 

recognized equivalent; 

(v) The rate of attainment of 

completion certificates for career 

technical training; 

(vi) Average literacy gains; and 

(vii) Average numeracy gains; or 

(2) Is ranked among the top five 

percent of Job Corps centers for the most 

recent preceding program year 

according to the rankings calculated 

under § 686.1060. 

§ 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? 

(a) Agreements are for not more than 

a 2-year period. The Secretary may 

exercise any contractual option to renew 

the agreement in 1-year increments for 

not more than 3 additional years. 

(b) The Secretary will establish 

procedures for evaluating the option to 

renew an agreement that includes: an 

assessment of the factors described in 

paragraph (c) of this section; a review of 

contract performance and financial 

reporting compliance; a review of the 

program management and performance 

data described in §§ 686.1000 and 

686.1010; an assessment of whether the 

center is on a performance improvement 

plan as described § 686.1070 and if so, 

whether the center is making 

measureable progress in completing the 

actions described in the plan; and an 

evaluation of the factors described in 

paragraph (d) of this section. 

(c) The Secretary will only renew the 

agreement of an entity to operate a Job 

Corps center if the entity: 

(1) Has a satisfactory record of 

integrity and business ethics; 

(2) Has adequate financial resources 

to perform the agreement; 

(3) Has the necessary organization, 

experience, accounting and operational 

controls, and technical skills; and 

(4) Is otherwise qualified and eligible 

under applicable laws and regulations, 

including that the contractor is not 

under suspension or debarred from 

eligibility for Federal contractors. 

(d) The Secretary will not renew an 

agreement for an entity to operate a Job 

Corps center for any additional 1-year 

period if, for both of the 2 most recent 

preceding program years for which 

information is available at the time the 

determination is made, or if a second 

program year is not available, the 

preceding year for which information is 

available, such center: 

(1) Has been ranked in the lowest 10 

percent of Job Corps centers according 

to the rankings calculated under 

§ 686.1060; and 

(2) Failed to achieve an average of 50 

percent or higher of the expected level 

of performance established under 

§ 686.1050 with respect to each of the 

primary indicators of performance for 

eligible youth described in sec. 

116(b)(2)(A)(ii) of WIOA, listed in 

§ 686.1010. 

(e) Information Availability: 

(1) Information will be considered to 

be available for a program year for 

purposes of paragraph (d) of this section 

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 participation under the 

previous center operator, were on center 

for at least 6 months under the current 

operator. 

(2) If complete information for any of 

the indicators of performance described 

in paragraph (d)(2) of this section is not 

available for either of the 2 program 

years described in paragraph (d) of this 

section, the Secretary will review partial 

program year data from the most recent 

program year for those indicators, if at 

least two quarters of data are available, 

when making the determination 

required under paragraph (d)(2) of this 

section. 

(f) If any of the program years 

described in paragraph (d) of this 

section precede the implementation of 

the establishment of the expected levels 

of performance under § 686.1050 and 

the application of the primary indicators 

of performance for Job Corps centers 

described in § 686.1010, the evaluation 

described in paragraph (d) of this 

section will be based on whether in its 

operation of the center the entity: 

(1) Meets the requirement of 

paragraph (d)(2) of this section with 

respect to such preceding program years 

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 for— 

(i) The 6-month follow-up placement 

rate of graduates in employment, the 

military, education, or training; 

(ii) The 12-month follow-up 

placement rate of graduates in 

employment, the military, education, or 

training; 

(iii) The 6-month follow-up average 

weekly earnings of graduates; 

(iv) The rate of attainment of 

secondary school diplomas or their 

recognized equivalent; 

(v) The rate of attainment of 

completion certificates for career 

technical training; 

(vi) Average literacy gains; and 

(vii) Average numeracy gains; or 

(2) Is ranked among the lowest 10 

percent of Job Corps centers for the most 

recent preceding program year 

according to the ranking calculated 

under § 686.1060. 

(g) Exception—the Secretary can 

exercise an option to renew the 

agreement with an entity 

notwithstanding the requirements in 

paragraph (d) of this section for no more 

than 2 additional years if the Secretary 

determines that a renewal would be in 

the best interest of the Job Corps 

program, taking into account factors 

including: 

(1) Significant improvements in 

program performance in carrying out a 

performance improvement plan; 

(2) That the performance is due to 

circumstances beyond the control of the 

entity, such as an emergency or disaster; 

(3) A significant disruption in the 

operations of the center, including in 


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the ability to continue to provide 

services to students, or significant 

increase in the cost of such operations; 

or 

(4) A significant disruption in the 

procurement process with respect to 

carrying out a competition for the 

selection of a center operator. 

(h) If the Secretary does make an 

exception and exercises the option to 

renew per paragraph (g) of this section, 

the Secretary will 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. 

§ 686.340 How are entities selected to 

receive funding to provide outreach and 

admission, career transition and other 

operations support services? 

(a) The Secretary selects eligible 

entities to provide outreach and 

admission, career transition, and 

operational services on a competitive 

basis in accordance with applicable 

statutes and regulations. In selecting an 

entity, ETA issues requests for proposals 

(RFP) for operational support services 

according to the Federal Acquisition 

Regulation (48 CFR chapter 1) and DOL 

Acquisition Regulation (48 CFR chapter 

29). ETA develops RFPs for operational 

support services in consultation with 

the Governor, the center workforce 

council (if established), and the Local 

Board for the workforce investment area 

in which the center is located (WIOA 

sec. 147(a)(1)(A)). 

(b) The RFP for each support service 

contract describes uniform 

specifications and standards, as well as 

specifications and requirements that are 

unique to the specific required 

operational support services. 

(c) The Contracting Officer selects and 

funds operational support service 

contracts on the basis of an evaluation 

of the proposals received using criteria 

established by the Secretary and set 

forth in the RFP. The criteria may 

include the following, as applicable: 

(1) The ability of the offeror to 

coordinate the activities carried out in 

relation to the Job Corps center with 

related activities carried out under the 

appropriate State Plan and local plans; 

(2) The ability of the entity to offer 

career technical training that has been 

proposed by the workforce council and 

the degree to which the training reflects 

employment opportunities in the local 

areas in which most of the students 

intend to seek employment; 

(3) The degree to which the offeror 

demonstrates relationships with the 

surrounding communities, including 

employers, labor organizations, State 

Boards, Local Boards, applicable onestop centers, and the State and region in 

which the services are provided; 

(4) The offeror’s past performance, if 

any, relating to providing services to a 

Job Corps center, including information 

regarding the offeror in any reports 

developed by the Office of the Inspector 

General of the Department of Labor and 

the offeror’s demonstrated effectiveness 

in assisting individuals in achieving the 

indicators of performance for eligible 

youth described in sec. 116(b)(2)(A)(ii) 

of WIOA, listed in § 686.1010; 

(5) The offeror’s ability to demonstrate 

a record of successfully assisting at-risk 

youth to connect to the workforce; and 

(6) Any other information on 

additional selection factors required by 

the Secretary. 

§ 686.350 What conditions apply to the 

operation of a Civilian Conservation 

Center? 

(a) The Secretary of Labor may enter 

into an agreement with the Secretary of 

Agriculture to operate Job Corps centers 

located on public land, which are called 

Civilian Conservation Centers (CCCs). 

Located primarily in rural areas, in 

addition to academics, career technical 

training, and workforce preparation 

skills training, CCCs provide programs 

of work experience to conserve, 

develop, or manage public natural 

resources or public recreational areas or 

to develop community projects in the 

public interest. 

(b) 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. 

(c) Enrollees in CCCs may provide 

assistance in addressing national, State, 

and local disasters, consistent with 

current child labor laws. The Secretary 

of Agriculture must 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.). 

(d) The Secretary of Agriculture must 

designate a Job Corps National Liaison 

to support the agreement between the 

Departments of Labor and Agriculture to 

operate CCCs. 

(e) The Secretary of Labor, in 

consultation with the Secretary of 

Agriculture, may select an entity to 

operate a CCC in accordance with the 

requirements of § 686.310 if the 

Secretary of Labor determines 

appropriate. 

(f) The Secretary of Labor has the 

discretion to close CCCs if the Secretary 

determines appropriate. 

§ 686.360 What are the requirements for 

award of contracts and payments to Federal 

agencies? 

(a) The requirements of the Federal 

Property and Administrative Services 

Act of 1949, as amended; the Federal 

Grant and Cooperative Agreement Act of 

1977; the Federal Acquisition 

Regulation (48 CFR chapter 1); and the 

DOL Acquisition Regulation (48 CFR 

chapter 29) apply to the award of 

contracts and to payments to Federal 

agencies. 

(b) Job Corps funding of Federal 

agencies that operate CCCs are made by 

a transfer of obligational authority from 

the Department to the respective 

operating agency. 

Subpart D—Recruitment, Eligibility, 

Screening, Selection and Assignment, 

and Enrollment 

§ 686.400 Who is eligible to participate in 

the Job Corps program? 

(a) To be eligible to participate in the 

Job Corps, an individual must be: 

(1) At least 16 and not more than 24 

years of age at the time of enrollment, 

except that: 

(i) The Job Corps Director may waive 

the maximum age limitation described 

in paragraph (a)(1) of this section, and 

the requirement in paragraph (a)(1)(ii) of 

this section for an individual with a 

disability if he or she is otherwise 

eligible according to the requirements 

listed in §§ 686.400 and 686.410; and 

(ii) Not more than 20 percent of 

individuals enrolled nationwide may be 

individuals who are aged 22 to 24 years 

old; 

(2) A low-income individual; 

(3) An individual who is facing one or 

more of the following barriers to 

education and employment: 

(i) Is basic skills deficient, as defined 

in WIOA sec. 3; 

(ii) Is a school dropout; 

(iii) Is homeless as defined in sec. 

41403(6) of the Violence Against 

Women Act of 1994 (42 U.S.C. 14043e– 

2(6)); is a homeless child or youth, as 

defined in sec. 725(2) of the McKinneyVento Homeless Assistance Act (42 

U.S.C. 11434a(2)); or is a runaway, an 

individual in foster care; or an 

individual who was in foster care and 

has aged out of the foster care system. 

(iv) Is a parent; or 

(v) Requires additional education, 

career technical training, or workforce 

preparation skills in order to obtain and 


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retain employment that leads to 

economic self-sufficiency; and 

(4) Meets the requirements of 

§ 686.420, if applicable. 

(b) Notwithstanding paragraph (a)(2) 

of this section, a veteran is eligible to 

become an enrollee if the individual: 

(1) Meets the requirements of 

paragraphs (a)(1) and (3) of this section; 

and 

(2) Does not meet the requirement of 

paragraph (a)(2) of this section because 

the military income earned by the 

individual within the 6-month period 

prior to the individual’s application for 

Job Corps prevents the individual from 

meeting that requirement. 

§ 686.410 Are there additional factors 

which are considered in selecting an 

eligible applicant for enrollment? 

Yes, in accordance with procedures 

issued by the Secretary, an eligible 

applicant may be selected for 

enrollment only if: 

(a) A determination is made, based on 

information relating to the background, 

needs, and interests of the applicant, 

that the applicant’s educational and 

career and technical needs can best be 

met through the Job Corps program; 

(b) A determination is made that there 

is a reasonable expectation the applicant 

can participate successfully in group 

situations and activities, and is not 

likely to engage in actions that would 

potentially: 

(1) Prevent other students from 

receiving the benefit of the program; 

(2) Be incompatible with the 

maintenance of sound discipline; or 

(3) Impede satisfactory relationships 

between the center to which the student 

is assigned and surrounding local 

communities. 

(c) The applicant is made aware of the 

center’s rules, what the consequences 

are for failure to observe the rules, and 

agrees to comply with such rules, as 

described in procedures issued by the 

Secretary; 

(d) The applicant has not been 

convicted of a felony consisting of 

murder, child abuse, or a crime 

involving rape or sexual assault (WIOA 

secs. 145(b)(1)(C), 145(b)(2), and 

145(b)(3)). Other than these felony 

convictions, no one will be denied 

enrollment in Job Corps solely on the 

basis of contact with the criminal justice 

system. All applicants must submit to a 

background check conducted according 

to procedures established by the 

Secretary and in accordance 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; and 

(e) Suitable arrangements are made for 

the care of any dependent children for 

the proposed period of enrollment. 

§ 686.420 Are there any special 

requirements for enrollment related to the 

Military Selective Service Act? 

(a) Yes, each male applicant 18 years 

of age or older must present evidence 

that he has complied with sec. 3 of the 

Military Selective Service Act (50 U.S.C. 

App. 451 et seq.) if required; and 

(b) When a male student turns 18 

years of age, he must submit evidence 

to the center that he has complied with 

the requirements of the Military 

Selective Service Act (50 U.S.C. App. 

451 et seq.). 

§ 686.430 What entities conduct outreach 

and admissions activities for the Job Corps 

program? 

The Secretary makes arrangements 

with outreach and admissions providers 

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 services are identified in 

§ 686.300. 

§ 686.440 What are the responsibilities of 

outreach and admissions providers? 

(a) Outreach and admissions agencies 

are responsible for: 

(1) Developing outreach and referral 

sources; 

(2) Actively seeking out potential 

applicants; 

(3) Conducting personal interviews 

with all applicants to identify their 

needs and eligibility status; and 

(4) Identifying youth who are 

interested and likely Job Corps 

participants. 

(b) Outreach and admissions 

providers are responsible for completing 

all Job Corps application forms and 

determining whether applicants meet 

the eligibility and selection criteria for 

participation in Job Corps as provided 

in §§ 686.400 and 686.410. 

(c) The Secretary may decide that 

determinations with regard to one or 

more of the eligibility criteria will be 

made by the National Director or his or 

her designee. 

§ 686.450 How are applicants who meet 

eligibility and selection criteria assigned to 

centers? 

(a) Each applicant who meets the 

application and selection requirements 

of §§ 686.400 and 686.410 is assigned to 

a center based on an assignment plan 

developed by the Secretary in 

consultation with the operators of Job 

Corps centers. The assignment plan 

identifies a target for the maximum 

percentage of students at each center 

who come from the State or region 

nearest the center, and the regions 

surrounding the center. The assignment 

plan is based on an analysis of: 

(1) The number of eligible individuals 

in the State and region where the center 

is located and the regions surrounding 

where the center is located; 

(2) The demand for enrollment in Job 

Corps in the State and region where the 

center is located and in surrounding 

regions; 

(3) The size and enrollment level of 

the center, including the education, 

training, and supportive services 

provided through the center; and 

(4) The performance of the Job Corps 

center relating to the expected levels of 

performance for indicators described in 

WIOA sec. 159(c)(1), and whether any 

actions have been taken with respect to 

the center under secs. 159(f)(2) and 

159(f)(3) of WIOA. 

(b) Eligible applicants are assigned to 

the center that offers the type of career 

technical training selected by the 

individual, and among the centers that 

offer such career technical training, is 

closest to the home of the individual. 

The Secretary may waive this 

requirement if: 

(1) The enrollee would be unduly 

delayed in participating in the Job Corps 

program because the closest center is 

operating at full capacity; or 

(2) The parent or guardian of the 

enrollee requests assignment of the 

enrollee to another Job Corps center due 

to circumstances in the community that 

would impair prospects for successful 

completion by the enrollee. 

(c) If a parent or guardian objects to 

the assignment of a student under the 

age of 18 to a center other than the 

center closest to home that offers the 

desired career technical training, the 

Secretary must not make such an 

assignment. 

§ 686.460 What restrictions are there on 

the assignment of eligible applicants for 

nonresidential enrollment in Job Corps? 

No more than 20 percent of students 

enrolled in Job Corps nationwide may 

be nonresidential students. 


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§ 686.470 May an individual who is 

determined to be ineligible or an individual 

who is denied enrollment appeal that 

decision? 

(a) A person who is determined to be 

ineligible to participate in Job Corps 

under § 686.400 or a person who is not 

selected for enrollment under § 686.410 

may appeal the determination to the 

outreach and admissions agency within 

60 days of the determination. The 

appeal will be resolved according to the 

procedures in §§ 686.960 and 686.965. If 

the appeal is denied by the outreach/

admissions contractor or the center, the 

person may appeal the decision in 

writing to the Regional Director within 

60 days of the date of the denial. The 

Regional Director will decide within 60 

days whether to reverse or approve the 

appealed decision. The decision by the 

Regional Director is the Department’s 

final decision. 

(b) If an applicant believes that he or 

she has been determined ineligible or 

not selected for enrollment based upon 

a factor prohibited by sec. 188 of WIOA, 

the individual may proceed under the 

applicable Department 

nondiscrimination regulations 

implementing WIOA sec. 188 at 29 CFR 

part 37. 

(c) An applicant who is determined to 

be ineligible or a person who is denied 

enrollment must be referred to the 

appropriate one-stop center or other 

local service provider. 

§ 686.480 At what point is an applicant 

considered to be enrolled in Job Corps? 

(a) To be considered enrolled as a Job 

Corps student, an applicant selected for 

enrollment must physically arrive at the 

assigned Job Corps center on the 

appointed date. However, applicants 

selected for enrollment who arrive at 

their assigned centers by government 

furnished transportation are considered 

to be enrolled on their dates of 

departure by such transportation. 

(b) Center operators must document 

the enrollment of new students 

according to procedures issued by the 

Secretary. 

§ 686.490 How long may a student be 

enrolled in Job Corps? 

(a) Except as provided in paragraph 

(b) of this section, a student may remain 

enrolled in Job Corps for no more than 

2 years. 

(b)(1) An extension of a student’s 

enrollment may be authorized in special 

cases according to procedures issued by 

the Secretary; 

(2) A student’s enrollment in an 

advanced career training program may 

be extended in order to complete the 

program for a period not to exceed 1 

year; 

(3) An extension of a student’s 

enrollment may be authorized in the 

case of 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 not more than 1 additional year; and 

(4) An enrollment extension may be 

granted to a student who participates in 

national service, as authorized by a 

Civilian Conservation Center, for the 

amount of time equal to the period of 

national service. 

Subpart E—Program Activities and 

Center Operations 

§ 686.500 What services must Job Corps 

centers provide? 

(a) Job Corps centers must provide an 

intensive, well-organized and fully 

supervised program including: 

(1) Educational activities, including: 

(i) Career technical training; 

(ii) Academic instruction; and 

(iii) Employability and independent 

learning and living skills development. 

(2) Work-based learning and 

experience; 

(3) Residential support services; and 

(4) Other services as required by the 

Secretary. 

(b) In addition, centers must provide 

students with access to the career 

services described in secs. 

134(c)(2)(A)(i)–(xi) of WIOA. 

§ 686.505 What types of training must Job 

Corps centers provide? 

(a) Job Corps centers must provide 

students with a career technical training 

program that is: 

(1) Aligned with industry-recognized 

standards and credentials and with 

program guidance; and 

(2) Linked to employment 

opportunities in in-demand industry 

sectors and occupations both in the area 

in which the center is located and, if 

practicable, in the area the student plans 

to reside after graduation. 

(b) Each center must provide 

education programs, including: an 

English language acquisition program, 

high school diploma or high school 

equivalency certification program, and 

academic skills training necessary for 

students to master skills in their chosen 

career technical training programs. 

(c) Each center must provide 

programs for students to learn and 

practice employability and independent 

learning and living skills including: job 

search and career development, 

interpersonal relations, driver’s 

education, study and critical thinking 

skills, financial literacy and other skills 

specified in program guidance. 

(d) All Job Corps training programs 

must be based on industry and 

academic skills standards leading to 

recognized industry and academic 

credentials, applying evidence-based 

instructional approaches, and resulting 

in: 

(1) Students’ employment in 

unsubsidized, in-demand jobs with the 

potential for advancement 

opportunities; 

(2) Enrollment in advanced education 

and training programs or 

apprenticeships, including registered 

apprenticeship; or 

(3) Enlistment in the Armed Services. 

(e) Specific career technical training 

programs offered by individual centers 

must be approved by the Regional 

Director according to policies issued by 

the Secretary. 

(f) Center workforce councils 

described in § 670.810 must review 

appropriate labor market information, 

identify in-demand industry sectors and 

employment opportunities in local areas 

where students will look for 

employment, determine the skills and 

education necessary for those jobs, and 

as appropriate, recommend changes in 

the center’s career technical training 

program to the Secretary. 

(g) Each center must implement a 

system to evaluate and track the 

progress and achievements of each 

student at regular intervals. 

(h) Each center must develop a 

training plan that must be available for 

review and approval by the appropriate 

Regional Director. 

§ 686.510 Are entities other than Job 

Corps center operators permitted to provide 

academic and career technical training? 

(a) The Secretary may arrange for the 

career technical and academic 

education of Job Corps students through 

local public or private educational 

agencies, career and technical 

educational institutions or technical 

institutes, or other providers such as 

business, union or union-affiliated 

organizations 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. 

(b) Entities providing these services 

will be selected in accordance with the 

requirements of § 686.310. 

§ 686.515 What are advanced career 

training programs? 

(a) The Secretary may arrange for 

programs of advanced career training 

(ACT) for selected students, which may 

be provided through the eligible 

providers of training services identified 

in WIOA sec. 122 in which the students 

continue to participate in the Job Corps 

program for a period not to exceed 1 


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year in addition to the period of 

participation to which these students 

would otherwise be limited. 

(b) Students participating in an ACT 

program are eligible to receive: 

(1) All of the benefits provided to a 

residential Job corps student; or 

(2) A monthly stipend equal to the 

average value of the benefits described 

in paragraph (b)(1) of this section. 

(c) Any operator may enroll more 

students than otherwise authorized by 

the Secretary in an ACT program if, in 

accordance with standards developed 

by the Secretary, the operator 

demonstrates: 

(1) Participants in such a program 

have achieved a satisfactory rate of 

training and placement in trainingrelated jobs; and 

(2) For the most recently preceding 2 

program years, the operator has, on 

average, met or exceeded the expected 

levels of performance under WIOA sec. 

159(c)(1) for each of the primary 

indicators described in WIOA sec. 

116(b)(2)(A)(ii), listed in § 686.1010. 

§ 686.520 What responsibilities do the 

center operators have in managing workbased learning? 

(a) The center operator must 

emphasize and implement work-based 

learning programs for students through 

center program activities, including 

career and technical skills training, and 

through arrangements with employers. 

Work-based learning must be under 

actual working conditions and must be 

designed to enhance the employability, 

responsibility, and confidence of the 

students. Work-based learning usually 

occurs in tandem with students’ career 

technical training. 

(b) The center operator must ensure 

that students are assigned only to 

workplaces that meet the safety 

standards described in § 670.920. 

§ 686.525 Are students permitted to hold 

jobs other than work-based learning 

opportunities? 

Yes, 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 activities. 

§ 686.530 What residential support 

services must Job Corps center operators 

provide? 

Job Corps center operators must 

provide the following services according 

to procedures issued by the Secretary: 

(a) A center-wide quality living and 

learning environment that supports the 

overall training program and includes a 

safe, secure, clean and attractive 

physical and social environment, 7 days 

a week, 24 hours a day; 

(b) An ongoing, structured personal 

counseling program for students 

provided by qualified staff; 

(c) A quality, safe and clean food 

service, to provide nutritious meals for 

students; 

(d) Medical services, through 

provision or coordination of a wellness 

program which includes access to basic 

medical, dental and mental health 

services, as described in the Policy and 

Requirements Handbook, for all 

students from the date of enrollment 

until separation from the Job Corps 

program; 

(e) A recreation/avocational program 

that meets the needs of all students; 

(f) A student leadership program and 

an elected student government; and 

(g) A student welfare association for 

the benefit of all students that is funded 

by non-appropriated funds that come 

from sources such as snack bars, 

vending machines, disciplinary fines, 

and donations, and is run by an elected 

student government, with the help of a 

staff advisor. 

§ 686.535 Are Job Corps centers required 

to maintain a student accountability 

system? 

Yes, each Job Corps center must 

establish and implement an effective 

system to account for and document the 

daily whereabouts, participation, and 

status of students during their Job Corps 

enrollment. The system must enable 

center staff to detect and respond to 

instances of unauthorized or 

unexplained student absence. Each 

center must operate its student 

accountability system according to 

requirements and procedures issued by 

the Secretary. 

§ 686.540 Are Job Corps centers required 

to establish behavior management 

systems? 

(a) Yes, each Job Corps center must 

establish and maintain its own student 

incentives system to encourage and 

reward students’ accomplishments. 

(b) The Job Corps center must 

establish and maintain a behavior 

management system, based on a 

behavior management plan, according to 

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 

behavior management system must 

include a zero tolerance policy for 

violence and drugs as described in 

§ 686.590. All criminal incidents will be 

promptly reported to local law 

enforcement. 

§ 686.545 What is Job Corps’ zero 

tolerance policy? 

(a) All center operators must comply 

with Job Corps’ zero tolerance policy as 

established by the Secretary. Job Corps 

has a zero tolerance policy for 

infractions including but not limited to: 

(1) Acts of violence, as defined by the 

Secretary; 

(2) Use, sale, or possession of a 

controlled substance, as defined at 21 

U.S.C. 802; 

(3) Abuse of alcohol; 

(4) Possession of unauthorized goods; 

or 

(5) Other illegal or disruptive activity. 

(b) As part of this policy, all students 

must be tested for drugs as a condition 

of participation. (WIOA secs. 145(a)(2) 

and 152(b)(2)) 

(c) The zero tolerance policy specifies 

the offenses that result in the separation 

of students from the Job Corps. The 

center director is expressly responsible 

for determining when there is a 

violation of a specified offense. 

§ 686.550 How does Job Corps ensure that 

students receive due process in 

disciplinary actions? 

The center operator must ensure that 

all students receive due process in 

disciplinary proceedings according to 

procedures developed by the Secretary. 

These procedures must include center 

fact-finding and behavior review boards, 

a code of sanctions under which the 

penalty of separation from Job Corps 

might be imposed, and procedures for 

students to submit an appeal to a Job 

Corps regional appeal board following a 

center’s decision to discharge 

involuntarily the student from Job 

Corps. 

§ 686.555 What responsibilities do Job 

Corps centers have in assisting students 

with child care needs? 

(a) Job Corps centers are responsible 

for coordinating with outreach and 

admissions agencies to assist applicants, 

whenever feasible, with making 

arrangements for child care. 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. 

(b) Child development programs may 

be located at Job Corps centers with the 

approval of the Secretary. 

§ 686.560 What are the center’s 

responsibilities in ensuring that students’ 

religious rights are respected? 

(a) Centers must ensure that a student 

has the right to worship or not worship 

as he or she chooses. 

(b) Students who believe their 

religious rights have been violated may 


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file complaints under the procedures set 

forth in 29 CFR part 37. 

(c) Requirements related to equal 

treatment of religious organizations in 

Department of Labor programs, and to 

protection of religious liberty of 

Department of Labor social service 

providers and beneficiaries, are found at 

subpart D of 29 CFR part 2. See also 20 

CFR 683.255 and 683.285; 29 CFR part 

37. 

§ 686.565 Is Job Corps authorized to 

conduct pilot and demonstration projects? 

Yes, the Secretary may undertake 

experimental, research and 

demonstration projects related to the Job 

Corps program according to WIOA sec. 

156(a), provided that such projects are 

developed, approved, and conducted in 

accordance with policies and 

procedures developed by the Secretary. 

Subpart F—Student Support 

§ 686.600 Are students provided with 

government-paid transportation to and from 

Job Corps centers? 

Yes, Job Corps provides for the 

transportation of students between their 

homes and centers as described in 

policies and procedures issued by the 

Secretary. 

§ 686.610 When are students authorized to 

take leaves of absence from their Job Corps 

centers? 

(a) Job Corps students are eligible for 

annual leaves, emergency leaves and 

other types of leaves of absence from 

their assigned centers according to 

criteria and requirements issued by the 

Secretary. Additionally, enrollees in 

Civilian Conservation Centers may take 

leave to provide assistance in 

addressing national, State, and local 

disasters, consistent with current laws 

and regulations, including child labor 

laws and regulations. 

(b) Center operators and other service 

providers must account for student 

leave according to procedures issued by 

the Secretary. 

§ 686.620 Are Job Corps students eligible 

to receive cash allowances and 

performance bonuses? 

(a) Yes, according to criteria and rates 

established by the Secretary, Job Corps 

students receive cash living allowances, 

performance bonuses, and allotments 

for care of dependents. Graduates 

receive post-separation transition 

allowances according to § 686.750. 

(b) In the event of a student’s death, 

any amount due under this section is 

paid according to the provisions of 5 

U.S.C. 5582 governing issues such as 

designation of beneficiary, order of 

precedence, and related matters. 

§ 686.630 Are student allowances subject 

to Federal payroll taxes? 

Yes, Job Corps student allowances are 

subject to Federal payroll tax 

withholding and social security taxes. 

Job Corps students are considered to be 

Federal employees for purposes of 

Federal payroll taxes. (WIOA sec. 

157(a)(2)) 

§ 686.640 Are students provided with 

clothing? 

Yes, Job Corps students are provided 

cash clothing allowances and/or articles 

of clothing, including safety clothing, 

when needed for their participation in 

Job Corps and their successful entry into 

the work force. Center operators and 

other service providers must issue 

clothing and clothing assistance to 

students according to rates, criteria, and 

procedures issued by the Secretary. 

Subpart G—Career Transition and 

Graduate Services 

§ 686.700 What are a Job Corps center’s 

responsibilities in preparing students for 

career transition services? 

Job Corps centers must assess and 

counsel students to determine their 

competencies, capabilities, and 

readiness for career transition services. 

§ 686.710 What career transition services 

are provided for Job Corps enrollees? 

Job Corps career transition services 

focus on placing program graduates in: 

(a) Full-time jobs that are related to 

their career technical training and career 

pathway that lead to economic selfsufficiency; 

(b) Post-secondary education; 

(c) Advanced training programs, 

including apprenticeship programs; or 

(d) The Armed Forces. 

§ 686.720 Who provides career transition 

services? 

The one-stop delivery system must be 

used to the maximum extent practicable 

in placing graduates and former 

enrollees in jobs. (WIOA sec. 149(b)) 

Multiple other resources may also 

provide post-program services, 

including but not limited to Job Corps 

career transition service providers under 

a contract or other agreement with the 

Department of Labor, and State 

vocational rehabilitation agencies for 

individuals with disabilities. 

§ 686.730 What are the responsibilities of 

career transition service providers? 

(a) Career transition service providers 

are responsible for: 

(1) Contacting graduates; 

(2) Assisting them in improving skills 

in resume preparation, interviewing 

techniques and job search strategies; 

(3) Identifying job leads or 

educational and training opportunities 

through coordination with Local 

Workforce Development Boards, onestop operators and partners, employers, 

unions and industry organizations; 

(4) Placing graduates in jobs, 

apprenticeship, the Armed Forces, or 

post-secondary education or training, or 

referring former students for additional 

services in their local communities as 

appropriate; and 

(5) Providing placement services for 

former enrollees according to 

procedures issued by the Secretary. 

(b) Career transition service providers 

must record and submit all Job Corps 

placement information according to 

procedures established by the Secretary. 

§ 686.740 What services are provided for 

program graduates? 

According to procedures issued by the 

Secretary, career transition and support 

services must be provided to program 

graduates for up to 12 months after 

graduation. 

§ 686.750 Are graduates provided with 

transition allowances? 

Yes, graduates receive post-separation 

transition allowances according to 

policies and procedures established by 

the Secretary. Transition allowances are 

incentive-based to reflect a graduate’s 

attainment of academic credentials and 

those associated with career technical 

training such as industry-recognized 

credentials. 

§ 686.760 What services are provided to 

former enrollees? 

(a) Up to 3 months of employment 

services, including career services 

offered through a one-stop center, may 

be provided to former enrollees. 

(b) According to procedures issued by 

the Secretary, other career transition 

services as determined appropriate may 

be provided to former enrollees. 

Subpart H—Community Connections 

§ 686.800 How do Job Corps centers and 

service providers become involved in their 

local communities? 

(a) The director of each Job Corps 

center must ensure the establishment 

and development of mutually beneficial 

business and community relationships 

and networks. Establishing and 

developing networks includes 

relationships with: 

(1) Local and distant employers; 

(2) Applicable one-stop centers and 

Local Boards: 

(3) Entities offering apprenticeship 

opportunities and youth programs; 

(4) Labor-management organizations 

and local labor organizations; 


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(5) Employers and contractors that 

support national training programs and 

initiatives; and 

(6) Community-based organizations, 

non-profit organizations, and 

intermediaries providing workforce 

development-related services. 

(b) Each Job Corps center also must 

establish and develop relationships with 

members of the community in which it 

is located. Members of the community 

should be informed of the projects of the 

Job Corps center and changes in the 

rules, procedures, or activities of the 

center that may affect the community. 

Events of mutual interest to the 

community and the Job Corps center 

should be planned to create and 

maintain community relations and 

community support. 

§ 686.810 What is the makeup of a 

workforce council and what are its 

responsibilities? 

(a) Each Job Corps center must 

establish a workforce council, according 

to procedures established by the 

Secretary. The workforce council must 

include: 

(1) Non-governmental and private 

sector employers; 

(2) Representatives of labor 

organizations (where present) and of 

employees; 

(3) Job Corps enrollees and graduates; 

and 

(4) In the case of a single-State local 

area, the workforce council must 

include a representative of the State 

Board constituted under § 679.110. 

(b) A majority of the council members 

must be business owners, chief 

executives or chief operating officers of 

nongovernmental employers or other 

private sector employers, who have 

substantial management, hiring or 

policy responsibility and who represent 

businesses with employment 

opportunities in the local area and the 

areas in which students will seek 

employment. 

(c) The workforce council may 

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. 

(d) The workforce council must: 

(1) Work with all applicable Local 

Boards and review labor market 

information to determine and provide 

recommendations to the Secretary 

regarding the center’s career technical 

training offerings, including 

identification of emerging occupations 

suitable for training (WIOA sec. 

154(c)(1)); 

(2) Review all relevant labor market 

information, including related 

information in the State Plan or the 

local plan, to: 

(i) Recommend in-demand industry 

sectors or occupations in the area in 

which the center operates; 

(ii) Determine employment 

opportunities in the areas in which 

enrollees intend to seek employment; 

(iii) Determine the skills and 

education necessary to obtain the 

identified employment; and 

(iv) Recommend to the Secretary the 

type of career technical training that 

should be implemented at the center to 

enable enrollees to obtain the 

employment opportunities identified. 

(3) Meet at least once every 6 months 

to reevaluate the labor market 

information, and other relevant 

information, to determine and 

recommend to the Secretary any 

necessary changes in the career 

technical training provided at the 

center. 

§ 686.820 How will Job Corps coordinate 

with other agencies? 

(a) The Secretary issues guidelines for 

the national office, regional offices, Job 

Corps centers and operational support 

providers to use in developing and 

maintaining cooperative relationships 

with other agencies and institutions, 

including law enforcement, educational 

institutions, communities, and other 

employment and training programs and 

agencies. 

(b) The Secretary develops polices 

and requirements to ensure linkages 

with the one-stop delivery system to the 

greatest extent practicable, as well as 

with other Federal, State, and local 

programs, and youth programs funded 

under title I of WIOA. These linkages 

enhance services to youth who face 

multiple barriers to employment and 

must include, where appropriate: 

(1) Referrals of applicants and 

students; 

(2) Participant assessment; 

(3) Pre-employment and work 

maturity skills training; 

(4) Work-based learning; 

(5) Job search, occupational, and basic 

skills training; and 

(6) Provision of continued services for 

graduates. 

(c) Job Corps is identified as a 

required one-stop partner. Wherever 

practicable, Job Corps centers and 

operational support contractors must 

establish cooperative relationships and 

partnerships with one-stop centers and 

other one-stop partners, Local Boards, 

and other programs for youth. 

Subpart I—Administrative and 

Management Provisions 

§ 686.900 Are damages caused by the acts 

or omissions of students eligible for 

payment under the Federal Tort Claims 

Act? 

Yes, students are considered Federal 

employees for purposes of the FTCA. 

(28 U.S.C. 2671 et seq.) Claims for such 

damage should be filed pursuant to the 

procedures found in 29 CFR part 15, 

subpart D. 

§ 686.905 Are loss and damages that 

occur to persons or personal property of 

students at Job Corps centers eligible for 

reimbursement? 

Yes, the Job Corps may pay students 

for valid claims under the procedures 

found in 29 CFR part 15, subpart D. 

§ 686.910 If a student is injured in the 

performance of duty as a Job Corps 

student, what benefits may the student 

receive? 

(a) Job Corps students are considered 

Federal employees for purposes of the 

Federal Employees’ Compensation Act 

(FECA) as specified in sec. 157(a)(3) of 

WIOA. (29 U.S.C. 2897(a)(3)) 

(b) Job Corps students may be entitled 

to benefits under FECA as provided by 

5 U.S.C. 8143 for injuries occurring in 

the performance of duty. 

(c) Job Corps students must meet the 

same eligibility tests for FECA benefits 

that apply to all other Federal 

employees. The requirements for FECA 

benefits may be found at 5 U.S.C. 8101, 

et seq. and part 10 of this title. The 

Department of Labor’s Office of 

Workers’ Compensation Programs 

(OWCP) administers the FECA program; 

all FECA determinations are within the 

exclusive authority of the OWCP, 

subject to appeal to the Employees’ 

Compensation Appeals Board. 

(d) Whenever a student is injured, 

develops an occupationally related 

illness, or dies while in the performance 

of duty, the procedures of the OWCP, at 

part 10 of this title, must be followed. 

To assist OWCP in determining FECA 

eligibility, a thorough investigation of 

the circumstances and a medical 

evaluation must be completed and 

required forms must be timely filed by 

the center operator with the 

Department’s OWCP. Additional 

information regarding Job Corps FECA 

claims may be found in OWCP’s 

regulations and procedures available on 

the Department’s Web site located at 

www.dol.gov 

§ 686.915 When is a Job Corps student 

considered to be in the performance of 

duty? 

(a) Performance of duty is a 

determination that must be made by the 


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OWCP under FECA, and is based on the 

individual circumstances in each claim. 

(b) In general, residential students 

may be considered to be in the 

‘‘performance of duty’’ when: 

(1) They are on center under the 

supervision and control of Job Corps 

officials; 

(2) They are engaged in any 

authorized Job Corps activity; 

(3) They are in authorized travel 

status; or 

(4) They are engaged in any 

authorized offsite activity. 

(c) Non-resident students are 

generally considered to be ‘‘in 

performance of duty’’ as Federal 

employees when they are engaged in 

any authorized Job Corps activity, from 

the time they arrive at any scheduled 

center activity until they leave the 

activity. The standard rules governing 

coverage of Federal employees during 

travel to and from work apply. These 

rules are described in guidance issued 

by the Secretary. 

(d) Students are generally considered 

to be not in the performance of duty 

when: 

(1) They are Absent Without Leave 

(AWOL); 

(2) They are at home, whether on pass 

or on leave; 

(3) They are engaged in an 

unauthorized offsite activity; or 

(4) They are injured or ill due to their 

own willful misconduct, intent to cause 

injury or death to oneself or another, or 

through intoxication or illegal use of 

drugs. 

§ 686.920 How are students protected from 

unsafe or unhealthy situations? 

(a) The Secretary establishes 

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. 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. 

(b) The Secretary develops procedures 

to ensure compliance with applicable 

DOL Occupational Safety and Health 

Administration regulations and Wage 

and Hour Division regulations. 

§ 686.925 What are the requirements for 

criminal law enforcement jurisdiction on 

center property? 

(a) All Job Corps property which 

would otherwise be under exclusive 

Federal legislative jurisdiction is 

considered under concurrent 

jurisdiction with the appropriate State 

and locality with respect to criminal law 

enforcement. Concurrent jurisdiction 

extends to all portions of the property, 

including housing and recreational 

facilities, in addition to the portions of 

the property used for education and 

training activities. 

(b) Centers located on property under 

concurrent Federal-State jurisdiction 

must establish agreements with Federal, 

State and local law enforcement 

agencies to enforce criminal laws. 

(c) The Secretary develops procedures 

to ensure that any searches of a 

student’s person, personal area or 

belongings for unauthorized goods 

follow applicable right-to-privacy laws. 

§ 686.930 Are Job Corps operators and 

service providers authorized to pay State or 

local taxes on gross receipts? 

(a) A private for-profit or a non-profit 

Job Corps service provider is not liable, 

directly or indirectly, to any State or 

subdivision for any gross receipts taxes, 

business privilege taxes measured by 

gross receipts, or any similar taxes in 

connection with any payments made to 

or by such service provider for operating 

a center or other Job Corps program or 

activity. The service provider is not 

liable to any State or subdivision to 

collect or pay any sales, excise, use, or 

similar tax imposed upon the sale to or 

use by such deliverer of any property, 

service, or other item in connection 

with the operation of a center or other 

Job Corps program or activity. (WIOA 

sec. 158(d)) 

(b) If a State or local authority 

compels a center operator or other 

service provider to pay such taxes, the 

center operator or service provider may 

pay the taxes with Federal funds, but 

must document and report the State or 

local requirement according to 

procedures issued by the Secretary. 

§ 686.935 What are the financial 

management responsibilities of Job Corps 

center operators and other service 

providers? 

(a) Center operators and other service 

providers must manage Job Corps funds 

using financial management information 

systems that meet the specifications and 

requirements of the Secretary. 

(b) These financial management 

systems must: 

(1) Provide accurate, complete, and 

current disclosures of the costs of their 

Job Corps activities; 

(2) Ensure that expenditures of funds 

are necessary, reasonable, allocable and 

allowable in accordance with applicable 

cost principles; 

(3) Use account structures specified 

by the Secretary; 

(4) Ensure the ability to comply with 

cost reporting requirements and 

procedures issued by the Secretary; and 

(5) Maintain sufficient cost data for 

effective planning, monitoring, and 

evaluation of program activities and for 

determining the allowability of reported 

costs. 

§ 686.940 Are center operators and service 

providers subject to Federal audits? 

(a) Yes, Center operators and service 

providers are subject to Federal audits. 

(b) The Secretary arranges for the 

survey, audit, or evaluation of each Job 

Corps center and service provider at 

least once every 3 years, by Federal 

auditors or independent public 

accountants. The Secretary may arrange 

for more frequent audits. (WIOA sec. 

159(b)(2)) 

(c) Center operators and other service 

providers are responsible for giving full 

cooperation and access to books, 

documents, papers and records to duly 

appointed Federal auditors and 

evaluators. (WIOA sec. 159(b)(1)) 

§ 686.945 What are the procedures for 

management of student records? 

The Secretary issues guidelines for a 

system for maintaining records for each 

student during enrollment and for 

disposition of such records after 

separation. 

§ 686.950 What procedures apply to 

disclosure of information about Job Corps 

students and program activities? 

(a) The Secretary develops procedures 

to respond to requests for information or 

records or other necessary disclosures 

pertaining to students. 

(b) Department disclosure of Job 

Corps information must be handled 

according to the Freedom of Information 

Act and according to Department 

regulations at 29 CFR part 70. 

(c) Job Corps contractors are not 

‘‘agencies’’ for Freedom of Information 

Act purposes. Therefore, their records 

are not subject to disclosure under the 

Freedom of Information Act or 29 CFR 

part 70. 

(d) The regulations at 29 CFR part 71 

apply to a system of records covered by 

the Privacy Act of 1974 maintained by 

the Department or to a similar system 

maintained by a contractor, such as a 

screening agency, contract center 

operator, or career transition service 

provider on behalf of the Job Corps. 

§ 686.955 What are the reporting 

requirements for center operators and 

operational support service providers? 

The Secretary establishes procedures 

to ensure the timely and complete 

reporting of necessary financial and 

program information to maintain 

accountability. Center operators and 

operational support service providers 

are responsible for the accuracy and 


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integrity of all reports and data they 

provide. 

§ 686.960 What procedures are available to 

resolve complaints and disputes? 

(a) Each Job Corps center operator and 

service provider must establish and 

maintain a grievance procedure for 

filing complaints and resolving disputes 

from applicants, students and/or other 

interested parties about its programs 

and activities. A hearing on each 

complaint or dispute must be conducted 

within 30 days of the filing of the 

complaint or dispute. A decision on the 

complaint must be made by the center 

operator or service provider, as 

appropriate, within 60 days after the 

filing of the complaint, and a copy of 

the decision must be immediately 

served, by first-class mail, on the 

complainant and any other party to the 

complaint. Except for complaints under 

§ 670.470 or complaints alleging fraud 

or other criminal activity, complaints 

may be filed within 1 year of the 

occurrence that led to the complaint. 

(b) The procedure established under 

paragraph (a) of this section must 

include procedures to process 

complaints alleging violations of sec. 

188 of WIOA, consistent with 

Department nondiscrimination 

regulations implementing sec. 188 of 

WIOA at 29 CFR part 37 and § 670.998 

of this chapter. 

§ 686.965 How does Job Corps ensure that 

complaints or disputes are resolved in a 

timely fashion? 

(a) If a complaint is not resolved by 

the center operator or service provider 

in the time frames described in 

§ 686.960, the person making the 

complaint may request that the Regional 

Director determine whether reasonable 

cause exists to believe that the Act or 

regulations for this part of the Act have 

been violated. The request must be filed 

with the Regional Director within 60 

days from the date that the center 

operator or service provider should have 

issued the decision. 

(b) Following the receipt of a request 

for review under paragraph (a) of this 

section, the Regional Director must 

determine within 60 days whether there 

has been a violation of the Act or the 

WIOA regulations. If the Regional 

Director determines that there has been 

a violation of the Act or regulations, 

(s)he may direct the operator or service 

provider to remedy the violation or 

direct the service provider to issue a 

decision to resolve the dispute 

according to the service provider’s 

grievance procedures. If the service 

provider does not comply with the 

Regional Director’s decision within 30 

days, the Regional Director may impose 

a sanction on the center operator or 

service provider for violating the Act or 

regulations, and/or for failing to issue a 

decision. Decisions imposing sanctions 

upon a center operator or service 

provider may be appealed to the DOL 

Office of Administrative Law Judges 

under 20 CFR 683.800 or 683.840. 

§ 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? 

(a) If the Department receives a 

complaint or has reason to believe that 

a center or other service provider is 

failing to comply with the requirements 

of the Act or regulations, the Regional 

Director must investigate the allegation 

and determine within 90 days after 

receiving the complaint or otherwise 

learning of the alleged violation, 

whether such allegation or complaint is 

true. 

(b) As a result of such a 

determination, the Regional Director 

may: 

(1) Direct the center operator or 

service provider to handle a complaint 

through the grievance procedures 

established under § 686.960; or 

(2) Investigate and determine whether 

the center operator or service provider 

is in compliance with the Act and 

regulations. If the Regional Director 

determines that the center or service 

provider is not in compliance with the 

Act or regulations, the Regional Director 

may take action to resolve the complaint 

under § 686.965(b), or will report the 

incident to the DOL Office of the 

Inspector General, as described in 20 

CFR 683.620. 

§ 686.975 How does Job Corps ensure that 

contract disputes will be resolved? 

A dispute between the Department 

and a Job Corps contractor will be 

handled according to the Contract 

Disputes Act and applicable regulations. 

§ 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 Job 

Corps centers? 

Disputes between the U.S. 

Department of Labor and the U.S. 

Department of Agriculture regarding 

operating a center will be handled 

according to the interagency agreement 

between the two agencies. 

§ 686.985 What Department of Labor equal 

opportunity and nondiscrimination 

regulations apply to Job Corps? 

Nondiscrimination requirements, 

procedures, complaint processing, and 

compliance reviews are governed by, as 

applicable, provisions of the following 

Department of Labor regulations: 

(a) Regulations implementing sec. 188 

of WIOA for programs receiving Federal 

financial assistance under WIOA found 

at 29 CFR part 37. 

(b) 29 CFR part 33 for programs 

conducted by the Department of Labor; 

and 

(c) 41 CFR chapter 60 for entities that 

have a Federal government contract. 

Subpart J—Performance 

§ 686.1000 How is the performance of the 

Job Corps program assessed? 

(a) The performance of the Job Corps 

program as a whole, and the 

performance of individual centers, 

outreach and admissions providers, and 

career transition service providers, is 

assessed in accordance with the 

regulations in this part and procedures 

and standards issued by the Secretary, 

through a national performance 

management system, including the 

Outcome Measurement System (OMS). 

(b) The national performance 

management system will include 

measures that reflect the primary 

indicators of performance described in 

§ 686.1010, the information needed to 

complete the Annual Report described 

in § 686.1040, and any other 

information the Secretary determines is 

necessary to manage and evaluate the 

effectiveness of the Job Corps program. 

The Secretary will issue annual 

guidance describing the performance 

management system and outcome 

measurement system. 

(c) Annual performance assessments 

based on the measures described in 

paragraph (b) of this section are done for 

each center operator and other service 

providers, including outreach and 

admissions providers and career 

transition providers. 

§ 686.1010 What are the primary indicators 

of performance for Job Corps centers and 

the Job Corps program? 

The primary indicators of 

performance for eligible youth are 

described in sec. 116(b)(2)(A)(ii) of 

WIOA. They are: 

(a) The percentage of program 

participants who are in education or 

training activities, or in unsubsidized 

employment, during the second quarter 

after exit from the program (WIOA sec. 

116(b)(2)(A)(ii)(I)); 

(b) The percentage of program 

participants who are in education or 

training activities, or in unsubsidized 

employment, during the fourth quarter 

after exit from the program (WIOA sec. 

116(b)(2)(A)(ii)(II)); 

(c) The median earnings of program 

participants who are in unsubsidized 


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employment during the second quarter 

after exit from the program (WIOA sec. 

116(b)(2)(A)(i)(III)); 

(d) The percentage of program 

participants who obtain a recognized 

post-secondary credential, or a 

secondary school diploma or its 

recognized equivalent during 

participation in or within 1 year after 

exit from the program. (WIOA sec. 

116(b)(2)(A)(i)(IV)) Program participants 

who obtain a secondary school diploma 

or its recognized equivalent will be 

included in the percentage only if they 

have also obtained or retained 

employment, or are in an education or 

training program leading to a recognized 

post-secondary credential, within 1 year 

after exit from the program (WIOA sec. 

116(b)(2)(A)(iii)); 

(e) 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 (WIOA sec. 

116(b)(2)(A)(i)(V)); and 

(f) The indicators of effectiveness in 

serving employers established by the 

Secretaries of Education and Labor, 

pursuant to sec. 116(b)(2)(A)(iv) of 

WIOA. (WIOA sec. 116(b)(2)(A)(i)(VI)) 

§ 686.1020 What are the indicators of 

performance for Job Corps outreach and 

admissions providers? 

The Secretary establishes performance 

indicators for outreach and admission 

service providers serving the Job Corps 

program. They include, but are not 

limited to: 

(a) The number of enrollees recruited, 

compared to the established goals for 

such recruitment, and the number of 

enrollees who remain committed to the 

program for 90 days after enrollment 

(WIOA sec. 159(c)(2)(A)); 

(b) The percentage and number of 

former enrollees, including the number 

dismissed under the zero tolerance 

policy described in sec. 152(b) of WIOA 

and § 686.545 (WIOA sec. 159(d)(1)(I)); 

(c) The maximum attainable percent 

of enrollees at the Job Corps center that 

reside in the State in which the center 

is located, and the maximum attainable 

percentage of enrollees at the Job Corps 

center that reside in the State in which 

the center is located and in surrounding 

regions, as compared to the percentage 

targets established by the Secretary for 

the center for each of those measures 

(WIOA sec. 159(d)(1)(L)); and 

(d) The cost per enrollee, calculated 

by comparing the number of enrollees at 

the center in a program year to the total 

budget for such center in the same 

program year. (WIOA sec. 159(d)(1)(M)). 

§ 686.1030 What are the indicators of 

performance for Job Corps career transition 

service providers? 

The Secretary establishes performance 

indicators for career transition service 

providers serving the Job Corps 

program. These include, but are not 

limited to, the following: 

(a) The primary indicators of 

performance for eligible youth in WIOA 

sec. 116(b)(2)(A)(ii), as listed in 

§ 686.1010; 

(b) The number of graduates who 

entered the Armed Forces (WIOA sec. 

159(d)(1)(D)); 

(c) The number of graduates who 

entered apprenticeship programs (WIOA 

sec. 159(d)(1)(E)); 

(d) The number of graduates who 

entered unsubsidized employment 

related to the career technical training 

received through the Job Corps program 

(WIOA sec. 159(d)(1)(H)); 

(e) The number of graduates who 

entered unsubsidized employment not 

related to the education and training 

received through the Job Corps program 

(WIOA sec. 159(d)(1)(H)); 

(f) The percentage and number of 

graduates who enter post-secondary 

education (WIOA sec. 159(d)(1)(J)); and 

(g) The average wage of graduates who 

entered unsubsidized employment 

(WIOA sec. 159(d)(1)(K)): 

(1) On the first day of such 

employment, and 

(2) On the day that is 6 months after 

such first day. 

§ 686.1040 What information will be 

collected for use in the Annual Report? 

The Secretary will collect and submit 

in the Annual Report described in sec. 

159(c)(4) of WIOA, which will include 

the following information on each Job 

Corps center, and the Job Corps program 

as a whole: 

(a) Information on the performance, 

based on the performance indicators 

described § 686.1010, as compared to 

the expected level of performance 

established under § 686.1050 for each 

performance indicator; 

(b) Information on the performance of 

outreach service providers and career 

transition service providers on the 

performance indicators established 

under §§ 686.1020 and 686.1030, as 

compared to the expected levels of 

performance established under 

§ 686.1050 for each of those indicators; 

(c) The number of enrollees served; 

(d) Demographic information on the 

enrollees served, including age, race, 

gender, and education and income level; 

(e) The number of graduates of a Job 

Corps center; 

(f) The number of graduates who 

entered the Armed Forces; 

(g) The number of graduates who 

entered apprenticeship programs; 

(h) The number of graduates who 

received a regular secondary school 

diploma; 

(i) The number of graduates who 

received a State recognized equivalent 

of a secondary school diploma; 

(j) The number of graduates who 

entered unsubsidized employment 

related to the career technical training 

received through the Job Corps program 

and the number who entered 

unsubsidized employment not related to 

the education and training received; 

(k) The percentage and number of 

former enrollees, including the number 

dismissed under the zero tolerance 

policy described in § 686.545; 

(l) The percentage and number of 

graduates who enter post-secondary 

education; 

(m) The average wage of graduates 

who enter unsubsidized employment: 

(1) On the first day of such 

employment; and 

(2) On the day that is 6 months after 

such first day; 

(n) The maximum attainable percent 

of enrollees at a Job Corps center that 

reside in the State in which the center 

is located, and the maximum attainable 

percentage of enrollees at a Job Corps 

center that reside in the State in which 

the center is located and in surrounding 

regions, as compared to the percentage 

targets established by the Secretary for 

the center for each of those measures; 

(o) The cost per enrollee, which is 

calculated by comparing the number of 

enrollees at the center in a program year 

to the total budget for such center in the 

same program year; 

(p) The cost per graduate, which is 

calculated by comparing the number of 

graduates of the center in a program 

year compared to the total budget for 

such center in the same program year; 

(q) Information regarding the state of 

Job Corps buildings and facilities, 

including a review of requested 

construction, rehabilitation, and 

acquisition projects, by each Job Corps 

center, and a review of new facilities 

under construction; 

(r) Available information regarding 

the national and community service 

activities of enrollees, particularly those 

enrollees at Civilian Conservation 

Centers; and 

(s) Any additional information 

required by the Secretary. 


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§ 686.1050 How are the expected levels of 

performance for Job Corps centers, 

outreach and admissions providers and 

career transition service providers 

established? 

(a) The Secretary establishes expected 

levels of performance for Job Corps 

centers, outreach and admissions 

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. 

(b) As described in § 686.1000, the 

Secretary will issue annual guidance 

describing the national performance 

management system and outcomes 

measurement system, which will 

communicate the expected levels of 

performance for each primary indicator 

of performance for each center, and each 

indicator of performance for each 

outreach and admission provider, and 

for each career transition service 

provider. Such guidance will also 

describe how the expected levels of 

performance were calculated. 

§ 686.1060 How are center rankings 

established? 

(a) The Secretary calculates annual 

rankings of center performance based on 

the performance management system 

described in § 686.1000 as part of the 

annual performance assessment 

described in § 686.1000(c). 

(b) The Secretary will issue annual 

guidance that communicates the 

methodology for calculating the 

performance rankings for the year. 

§ 686.1070 How and when will the 

Secretary use Performance Improvement 

Plans? 

(a) The Secretary establishes 

standards and procedures for 

developing and implementing 

performance improvement plans. 

(1) The Secretary will develop and 

implement a performance improvement 

plan for a center when that center fails 

to meet the expected levels of 

performance described in § 686.1050, 

(i) The Secretary will consider a 

center to have failed to meet the 

expected level of performance if the 

center: 

(A) Is ranked among the lowest 10 

percent of Job Corps centers for the most 

recent preceding program year 

according to the rankings calculated 

under § 686.1060; and 

(B) The center fails to achieve an 

average of 90 percent of the expected 

level of performance for all of the 

primary indicators. 

(ii) For any program year that 

precedes the implementation of the 

establishment of the expected levels of 

performance under § 686.1050 and the 

application of the primary indicators of 

performance for Job Corps centers 

identified in § 686.1010, the Secretary 

will consider a center to have failed to 

meet the expected levels of performance 

if the center: 

(A) Is ranked among the lowest 10 

percent of Job Corps centers for the most 

recent preceding program year 

according to the rankings calculated 

under § 686.1060; and 

(B) The center’s composite OMS score 

for the program year is 88 percent or 

less of the year’s OMS national average. 

(2) The Secretary may also develop 

and implement additional performance 

improvement plans, which will require 

improvements for a Job Corps center 

that fails to meet criteria established by 

the Secretary other than the expected 

levels of performance. 

(b) A performance improvement plan 

will require action be taken to correct 

identified performance issues within 1 

year of the implementation of the plan 

(WIOA sec. 159(f)(2)), and it will 

identify criteria that must be met for the 

center to complete the performance 

improvement plan. 

(1) The center operator must 

implement the actions outlined in the 

performance improvement plan. 

(2) 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) of this section. 

(i) Such a center will remain on a 

performance improvement plan and the 

Secretary will take action as described 

in paragraph (c) of this section. 

(ii) If a Civilian Conservation Center 

fails to meet expected levels of 

performance relating to the primary 

indicators of performance specified in 

§ 686.1010, or fails to improve 

performance under a performance 

improvement plan detailed in paragraph 

(a) of this section after 3 program years, 

the Secretary, in consultation with the 

Secretary of Agriculture, must select an 

entity to operate the Civilian 

Conservation Center on a competitive 

basis, in accordance with the 

requirements of § 686.310. (WIOA sec. 

159(f)(4)) 

(c) Under a performance improvement 

plan, the Secretary may take the 

following actions, as necessary: 

(1) Providing technical assistance to 

the center (WIOA sec. 159(f)(2)(A)); 

(2) Changing the management staff of 

a center (WIOA sec. 159(f)(2)(C)); 

(3) Changing the career technical 

training offered at the center (WIOA sec. 

159(f)(2)(B)); 

(4) Replacing the operator of the 

center (WIOA sec. 159(f)(2)(D)); 

(5) Reducing the capacity of the center 

(WIOA sec. 159(f)(2)(E)); 

(6) Relocating the center (WIOA sec. 

159(f)(2)(F)); or 

(7) Closing the center (WIOA sec. 

159(f)(2)(G)) in accordance with the 

criteria established under § 670.200(b). 

■ 14. Add part 687 to read as follows: 

PART 687—NATIONAL DISLOCATED 

WORKER GRANTS 

Sec. 

687.100 What are the types and purposes of 

national disclosed worker grants under 

the Workforce Innovation and 

Opportunity Act? 

687.110 What are major economic 

dislocations or other events which may 

qualify for a national dislocated worker 

grant? 

687.120 Who is eligible to apply for 

national dislocated worker grants? 

687.130 When should applications for 

national dislocated worker grants be 

submitted to the Department? 

687.140 What activities are applicants 

expected to conduct before a national 

dislocated worker grant application is 

submitted? 

687.150 What are the requirements for 

submitting applications for national 

dislocated worker grants? 

687.160 What is the timeframe for the 

Department to issue decisions on 

national dislocated worker grant 

applications? 

687.170 Who is eligible to be served under 

national dislocated worker grants? 

687.180 What are the allowable activities 

under national dislocated worker grants? 

687.190 How do statutory and regulatory 

waivers apply to national dislocated 

worker grants? 

687.200 What are the program and 

administrative requirements that apply 

to national dislocated worker grants? 

Authority: Secs. 170, 189, 503, Pub. L. 

113–128, 128 Stat. 1425 (Jul. 22, 2014). 

§ 687.100 What are the types and 

purposes of national disclosed worker 

grants under the Workforce Innovation and 

Opportunity Act? 

There are two types of national 

dislocated worker grants (NDWGs) 

under sec. 170 of the WIOA: Regular 

NDWGs and Disaster NDWGs. 

(a) Regular NDWGs provide career 

services for dislocated workers and 

other eligible populations. They are 

intended to expand service capacity 

temporarily at the State and local levels, 

by providing time-limited funding 

assistance in response to significant 

events that affect the U.S. workforce that 

cannot be accommodated with WIOA 

formula funds or other relevant existing 

resources. 


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(b) Disaster NDWGs allow for the 

creation of temporary employment to 

assist with clean-up and recovery efforts 

from emergencies or major disasters and 

the provision of career services in 

certain situations, as provided in 

§ 687.180(b). 

§ 687.110 What are major economic 

dislocations or other events which may 

qualify for a national dislocated worker 

grant? 

(a) Qualifying events for Regular 

NDWGs include: 

(1) Mass layoffs affecting 50 or more 

workers from one employer in the same 

area; 

(2) Closures and realignments of 

military installations; 

(3) Layoffs that have significantly 

increased the total number of 

unemployed individuals in a 

community; 

(4) Situations where 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 

§ 687.170(a)(1)(iii), exceeds State and 

local resources for providing such 

activities; and 

(5) Other events, as determined by the 

Secretary. 

(b) Qualifying events for Disaster 

NDWGs include: 

(1) Emergencies or major disasters, as 

defined in paragraphs (1) and (2), 

respectively, of sec. 102 of the Robert T. 

Stafford Disaster Relief and Emergency 

Assistance Act (42 U.S.C. 5122(1) and 

(2)) which have been declared eligible 

for public assistance by the Federal 

Emergency Management Agency 

(FEMA); 

(2) An emergency or disaster situation 

of national significance that could result 

in a potentially large loss of 

employment, as declared or otherwise 

recognized by the chief official of a 

Federal Agency with jurisdiction over 

the Federal response to the emergency 

or disaster situation; and 

(3) 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. 

§ 687.120 Who is eligible to apply for 

national dislocated worker grants? 

(a) For Regular NDWGs, the following 

entities are eligible to apply: 

(1) States or outlying areas, or a 

consortium of States; 

(2) Local Boards, or a consortium of 

boards; 

(3) An entity described in sec. 166(c) 

of WIOA relating to Native American 

programs; and, 

(4) Other entities determined to be 

appropriate by the Governor of the State 

or outlying area involved; and 

(5) Other entities that demonstrate to 

the Secretary the capability to respond 

effectively to circumstances relating to 

particular dislocations. 

(b) For Disaster NDWGs, only States, 

outlying areas, and Indian tribal 

governments as defined by the Robert T. 

Stafford Disaster Relief and Emergency 

Assistance Act (42 U.S.C. 5122(6)) are 

eligible to apply. 

§ 687.130 When should applications for 

national dislocated worker grants be 

submitted to the Department? 

(a) Applications for Regular NDWGs 

may be submitted at any time during the 

year and should be submitted to 

respond to eligible events as soon as 

possible when: 

(1) The applicant receives a 

notification of a mass layoff or a closure 

as a result of a Worker Adjustment and 

Retraining Notification (WARN) Act 

notice, a general announcement, or 

some other means, or in the case of 

applications to address situations 

described in § 687.110(a)(4), when 

higher than average demand for 

employment and training activities for 

those members of the Armed Forces and 

military spouses exceeds State and local 

resources for providing such activities; 

(2) Worker need and interest in 

services has been determined through 

Rapid Response, or other means, and is 

sufficient to justify the need for a 

NDWG; and 

(3) A determination has been made, in 

collaboration with the applicable local 

area, that State and local formula funds 

are inadequate to provide the level of 

services needed by the affected workers. 

(b) Applications for Disaster NDWGs 

to respond to an emergency or major 

disaster should be submitted as soon as 

possible when: 

(1) As described in § 687.110(b)(1), 

FEMA has declared that the affected 

area is eligible for public assistance; 

(2) An emergency or disaster situation 

of national significance that could result 

in a potentially large loss of 

employment occurs, and the Federal 

agency with jurisdiction over the 

Federal response has issued an 

appropriate declaration, as described in 

§ 687.110(b)(2) (such applications must 

indicate the applicable Federal agency 

declaration, describe the impact on the 

local and/or State economy, and 

describe the proposed activities); or 

(3) 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, as provided under 

§ 687.110(b)(3), and interest in services 

has been determined and is sufficient to 

justify the need for a NDWG. 

§ 687.140 What activities are applicants 

expected to conduct before a national 

dislocated worker grant application is 

submitted? 

Prior to submitting an application for 

NDWG funds, applicants must: 

(a) For Regular NDWGs: 

(1) Collect information to identify the 

needs and interests of the affected 

workers through Rapid Response 

activities (described in § 682.330), or 

other means; 

(2) Provide appropriate services to 

eligible workers with State and local 

funds, including funds from State 

allotments for dislocated worker 

training and statewide activities 

provided under sec. 132(b)(2)(B) of 

WIOA, as available; and 

(3) Coordinate with the Local Board(s) 

and chief elected official(s) of the local 

area(s) in which the proposed NDWG 

project is to operate. 

(b) For Disaster NDWGs: 

(1) Conduct a preliminary assessment 

of the clean-up and humanitarian needs 

of the affected areas; 

(2) Put a mechanism in place to 

reasonably ascertain that there is a 

sufficient population of eligible 

individuals to conduct the planned 

work; and 

(3) Coordinate with the Local Board(s) 

and chief elected official(s) of the local 

area(s) in which the proposed project is 

to operate. 

§ 687.150 What are the requirements for 

submitting applications for national 

dislocated worker grants? 

The Department will publish 

additional guidance on NDWGs and the 

requirements for submitting 

applications for NDWGs. A project 

implementation plan must be submitted 

after receiving the NDWG award. The 

additional guidance also will identify 

the information which must be included 

in the required project implementation 

plan. The project implementation plan 

will include more detailed information 

than is required for the initial 

application. 

§ 687.160 What is the timeframe for the 

Department to issue decisions on national 

dislocated worker grant applications? 

The Department will issue a final 

decision on a NDWG application within 

45 calendar days of receipt of an 

application that meets the requirements 

of this part. Applicants are strongly 

encouraged to review their NDWG 


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20922 Federal Register / Vol. 80, No. 73 / Thursday, April 16, 2015 / Proposed Rules 

application submissions carefully and 

consult with the appropriate 

Employment and Training 

Administration Regional Office to 

ensure their applications meet the 

requirements established in this part 

and those that may be set forth in 

additional guidance. 

§ 687.170 Who is eligible to be served 

under national dislocated worker grants? 

(a) For Regular NDWGs: 

(1) In order to receive career services, 

as prescribed by sec. 134(c)(2)(A) of 

WIOA and § 680.130(a) of this chapter 

under a NDWG, an individual must be: 

(i) A dislocated worker within the 

meaning of sec. 3(15) of WIOA; 

(ii) A person who is either: 

(A) A civilian employee of the 

Department of Defense or the 

Department of Energy employed at a 

military installation that is being closed 

or will undergo realignment within 24 

months after the date of determination 

of eligibility; or 

(B) An individual employed in a nonmanagerial position with a Department 

of Defense contractor determined by the 

Secretary of Defense to be at risk of 

termination from employment as a 

result of reductions in defense 

expenditures and whose employer is 

converting from defense to non-defense 

applications in order to prevent worker 

layoffs; or 

(iii) A member of the Armed Forces 

who: 

(A) was on active duty or full-time 

National Guard duty; 

(B) is involuntarily separated from 

active duty or full-time National Guard 

duty (as defined in 10 U.S.C. 1141), or 

is separated from active duty or fulltime National Guard duty pursuant to a 

special separation benefits program 

under 10 U.S.C. 1174a or the voluntary 

separation incentive program under 10 

U.S.C. 1175; 

(C) is not entitled to retired or 

retained pay incident to the separation 

described in paragraph (a)(1)(ii) of this 

section; and 

(D) applies for employment and 

training assistance under this part 

before the end of the 180-day period 

beginning on the date of the separation 

described in paragraph (a)(1)(ii) of this 

section. 

(iv) For Regular NDWGs awarded for 

situations described in § 687.110(a)(4), a 

person who is: 

(A) A dislocated member of the 

Armed Forces, or member of the Armed 

Forces described in paragraph (a)(1)(iii) 

of this section; or 

(B) The dislocated spouse of a 

member of the Armed Forces on active 

duty (as defined in 10 U.S.C. 101(d)(1)). 

(b) For Disaster NDWGs: 

(1) In order to be eligible to receive 

disaster relief employment under sec. 

170(b)(1)(B)(i) of WIOA, an individual 

must be: 

(i) A dislocated worker; 

(ii) A long-term unemployed 

individual; 

(iii) An individual who is temporarily 

or permanently laid off as a 

consequence of the emergency or 

disaster; or 

(iv) An individual who is selfemployed and becomes unemployed or 

significantly underemployed as a result 

of the emergency or disaster. 

(2) In order to be eligible to receive 

employment-related assistance, and in 

rare instances, humanitarian-related 

temporary employment under sec. 

170(b)(1)(B)(ii) of WIOA, an individual 

must have relocated or evacuated from 

an area as a result of a disaster that has 

been declared or otherwise recognized, 

and be: 

(i) A dislocated worker; 

(ii) A long-term unemployed 

individual; 

(iii) An individual who is temporarily 

or permanently laid off as a 

consequence of the emergency or 

disaster; or 

(iv) An individual who is selfemployed and becomes unemployed or 

significantly underemployed as a result 

of the emergency or disaster. 

§ 687.180 What are the allowable activities 

under national dislocated worker grants? 

(a) For Regular NDWGs: 

(1) Employment and training 

activities include career services and 

training authorized at secs. 134(c)–(d) 

and 170(b)(1) of WIOA. The services to 

be provided in a particular project are 

negotiated between the Department and 

the grantee, taking into account the 

needs of the target population covered 

by the grant, and may be changed 

through grant modifications, if 

necessary. 

(2) NDWGs may provide for 

supportive services, including needsrelated payments (subject to the 

restrictions in sec. 134(d)(3) of WIOA, 

where applicable), to help workers who 

require such assistance to participate in 

the activities provided for in the grant. 

Generally, the terms of a grant must be 

consistent with local policies governing 

such financial assistance under its 

formula funds (including the payment 

levels and duration of payments). The 

terms of the grant agreement may 

diverge from established local policies, 

in the following instances: 

(i) If unemployed dislocated workers 

served by the project are not able to 

meet the 13 or 8 weeks enrollment in 

training requirement established by sec. 

134(d)(3)(B) of WIOA because of the 

lack of formula or NDWG funds in the 

State or local area at the time of the 

dislocation, such individuals may be 

eligible for needs-related payments if 

they are enrolled in training by the end 

of the 6th week following the date of the 

NDWG award; or 

(ii) Under other circumstances as 

specified in the NDWG application 

requirements. 

(b) For Disaster NDWGs: NDWG funds 

provided under sec. 170(b)(1)(B) of 

WIOA can support a different array of 

activities, depending on the 

circumstances surrounding the situation 

for which the grant was awarded: 

(1) For NDWGs serving individuals in 

a disaster area declared eligible for 

public assistance by FEMA disaster 

relief, employment is authorized to 

support projects that provide food, 

clothing, shelter, and other 

humanitarian assistance for emergency 

and disaster victims, and projects 

regarding demolition, cleaning, repair, 

renovation, and reconstruction of 

damaged and destroyed structures, 

facilities, and lands located within the 

disaster area and in offshore areas 

related to the emergency or disaster in 

coordination with the Administrator of 

FEMA. Employment and training 

activities may also be provided, as 

appropriate. An individual’s disaster 

relief employment is limited to 12 

months or less for work related to 

recovery from a single emergency or 

disaster. The Secretary may extend an 

individual’s disaster relief employment 

for up to an additional 12 months, if it 

is requested and sufficiently justified by 

the State. 

(2) For NDWGs serving individuals 

who have relocated from a disaster area, 

only career services and training 

activities will be authorized, except 

where temporary employment for 

humanitarian assistance is appropriate. 

(3) For NDWGs awarded to States for 

events that have designations from 

Federal agencies (other than FEMA) that 

recognize an emergency or disaster 

situation as one of national significance 

that could result in a potentially large 

loss of employment, disaster relief 

employment and/or career services may 

be authorized, depending on the 

circumstances associated with the 

specific event. 

(4) Disaster NDWG funds may be 

expended through public and private 

agencies and organizations engaged in 

the disaster relief, humanitarian 

assistance, and clean-up projects 

described in this paragraph (b) of this 

section. 


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§ 687.190 How do statutory and regulatory 

waivers apply to national dislocated worker 

grants? 

(a) Grantees may request and the 

Department may approve the 

application of existing general statutory 

or regulatory waivers to a NDWG award. 

The application for NDWG grant funds 

must describe any statutory waivers 

which the applicant wishes to apply to 

the project that the State and/or Local 

Board, as applicable, have been granted 

under its waiver plan. The Department 

will consider such requests as part of 

the overall application review and 

decision process. 

(b) If, during the operation of the 

project, the grantee wishes to apply a 

waiver not identified in the application, 

the grantee must request a modification 

which includes the provision to be 

waived, the operational barrier to be 

removed, and the effect upon the 

outcome of the project. 

§ 687.200 What are the program and 

administrative requirements that apply to 

national dislocated worker grants? 

(a) Unless otherwise authorized in a 

NDWG agreement, the financial and 

administrative rules contained in part 

683 apply to awards under this part. 

(b) Exceptions include: 

(1) Funds provided in response to a 

disaster may be used for temporary job 

creation in areas declared eligible for 

public assistance by FEMA, and, in 

some instances, areas impacted by an 

emergency or disaster situation of 

national significance, as provided in 

§ 687.110(b)(2), and subject to the 

limitations of sec. 170(d) of WIOA, this 

part, and any additional guidance 

issued by the Department; 

(2) Per sec. 170(d)(4) of WIOA, in 

extremely limited instances, as 

determined by the Secretary or the 

Secretary’s designee, any Disaster 

NDWG funds that are available for 

expenditure under any grant awarded 

under this part may be used for 

additional disasters or situations of 

national significance experienced by the 

State in the same program year the 

funds were awarded; 

(3) NDWG funds may be used to pay 

an appropriate level of administrative 

costs based on the design and 

complexity of the project. The 

Department will negotiate 

administration costs with the applicant 

as part of the application review and 

grant award and modification processes; 

(4) The period of availability for 

expenditure of funds under a NDWG is 

specified in the grant agreement; 

(5) The Department may establish 

supplemental reporting, monitoring, 

and oversight requirements for NDWGs. 

The requirements will be identified in 

the grant application instructions or the 

grant document; and 

(6) The Department may negotiate and 

fund projects under terms other than 

those specified in this part where it can 

be clearly demonstrated that such 

adjustments will achieve a greater 

positive benefit for the workers and/or 

communities being assisted. 

■ 15. Add part 688 to read as follows: 

PART 688—PROVISIONS GOVERNING 

THE YOUTHBUILD PROGRAM 

Subpart A—Purpose and Definitions 

Sec. 

688.100 What is YouthBuild? 

688.110 What are the purposes of the 

YouthBuild program? 

688.120 What definitions apply to this part? 

Subpart B—Funding and Grant Applications 

Sec. 

688.200 How are YouthBuild grants funded 

and administered? 

688.210 How does an eligible entity apply 

for grant funds to operate a YouthBuild 

program? 

688.220 How are eligible entities selected to 

receive grant funds? 

688.230 What are the minimum 

requirements to apply for YouthBuild 

funds? 

688.240 How are eligible entities notified of 

approval for grant funds? 

Subpart C—Program Requirements 

Sec. 

688.300 Who is an eligible participant? 

688.310 Are there special rules that apply 

to veterans? 

688.320 What eligible activities may be 

funded under the YouthBuild program? 

688.330 What level of training qualifies a 

construction project as a qualifying work 

site under the YouthBuild program? 

688.340 What timeframes apply to 

participation? 

688.350 What timeframes must be devoted 

to education and workforce investment 

or other activities? 

688.360 What timeframes apply to followup services? 

688.370 What are the requirements for exit 

from the YouthBuild program? 

688.380 What is the role of the YouthBuild 

grantee in the one-stop system? 

Subpart D—Performance Indicators 

Sec. 

688.400 What are the performance 

indicators for YouthBuild grants? 

688.410 What are the required levels of 

performance for the performance 

indicators? 

688.420 What are the reporting 

requirements for YouthBuild grantees? 

688.430 What are the due dates for 

quarterly reporting? 

Subpart E—Administrative Rules, Costs, 

and Limitations 

Sec. 

688.500 What administrative regulations 

apply to the YouthBuild program? 

688.510 How may grantees provide services 

under the YouthBuild program? 

688.520 What cost limits apply to the use 

of YouthBuild program funds? 

688.530 What are the cost-sharing or 

matching requirements of the 

YouthBuild program? 

688.540 What are considered to be 

leveraged funds? 

688.550 How are the costs associated with 

real property treated in the YouthBuild 

program? 

688.560 What participant costs are 

allowable under the YouthBuild 

program? 

688.570 Does the Department allow 

incentive payments in the YouthBuild 

program? 

688.580 What effect do payments to 

YouthBuild participants have on 

eligibility for other Federal needs-based 

benefits? 

688.590 What program income 

requirements apply under the 

YouthBuild program? 

688.600 Are YouthBuild programs subject 

to the Davis-Bacon Act labor standards? 

688.610 What are the recordkeeping 

requirements for YouthBuild programs? 

Subpart F—Additional Requirements 

Sec. 

688.700 What are the safety requirements 

for the YouthBuild program? 

688.710 What are the reporting 

requirements for youth safety? 

688.720 What environmental protection 

laws apply to the YouthBuild program? 

688.730 What requirements apply to 

YouthBuild housing? 

Authority: Secs. 171, 189, 503, Pub. L. 

113–128, 128 Stat. 1425 (Jul. 22, 2014). 

Subpart A—Purpose and Definitions 

§ 688.100 What is YouthBuild? 

(a) YouthBuild is a workforce 

development program that provides 

employment, education, leadership 

development, and training opportunities 

to disadvantaged and low-income youth 

between the ages of 16 and 24, most of 

whom are secondary school drop outs 

and are either a member of a lowincome family, a foster care youth, a 

youth who is homeless, an offender, a 

youth with a disability, a child of an 

incarcerated parent, or a migrant youth. 

(b) Program participants receive 

education services that may lead to 

either a high school diploma or its Staterecognized equivalent. Further, they 

receive occupational skills training and 

are encouraged to pursue postsecondary education or additional 

training, including registered 

apprenticeship and pre-apprenticeship 

programs. The program is designed to 

create a skilled workforce either in the 

construction industry, through the 

rehabilitation and construction of 

housing for homeless and low-income 

individuals and families, as well as 


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public facilities, or in other in-demand 

jobs. The program also benefits the 

larger community because it provides 

increased access to affordable housing. 

§ 688.110 What are the purposes of the 

YouthBuild program? 

The overarching goal of the 

YouthBuild program is to provide 

disadvantaged and low-income youth 

the opportunity to obtain education and 

employment skills in local in-demand 

jobs to achieve economic selfsufficiency. Additionally, the 

YouthBuild program has as goals: 

(a) To enable disadvantaged youth to 

obtain the education and employment 

skills necessary to achieve economic 

self-sufficiency through employment in 

in-demand occupations and pursuit of 

post-secondary education and training 

opportunities; 

(b) To provide disadvantaged youth 

with opportunities for meaningful work 

and service to their communities; 

(c) To foster the development of 

employment and leadership skills and 

commitment to community 

development among youth in lowincome communities; 

(d) To expand the supply of 

permanent affordable housing for 

homeless individuals and families, 

homeless youth, and low-income 

families by utilizing the talents of 

disadvantaged youth. The program 

seeks to increase the number of 

affordable and transitional housing 

units available to decrease the rate of 

homelessness in communities with 

YouthBuild programs. 

(e) To improve the quality and energy 

efficiency of community and other nonprofit and public facilities, including 

those that are used to serve homeless 

and low-income families. 

§ 688.120 What definitions apply to this 

part? 

In addition to the definitions at sec. 

3 of WIOA and 20 CFR 675.300, the 

following definitions apply: 

Adjusted income means, with respect 

to a family, the amount (as determined 

by the Housing Development Agency) of 

the income of the members of the family 

residing in a dwelling unit or the 

persons on a lease, after any income 

exclusions as follows: 

(1) Mandatory exclusions. In 

determining adjusted income, a Housing 

Development Agency must exclude 

from the annual income of a family the 

following amounts: 

(2) Elderly and disabled families. 

$400 for any elderly or disabled family. 

(3) Medical expenses. The amount by 

which three percent of the annual 

family income is exceeded by the sum 

of: 

(i) Unreimbursed medical expenses of 

any elderly family or disabled family; 

(ii) Unreimbursed medical expenses 

of any family that is not covered under 

paragraph (3)(i) of this definition, except 

that this paragraph applies only to the 

extent approved in appropriation Acts; 

and 

(iii) Unreimbursed reasonable 

attendant care and auxiliary apparatus 

expenses for each handicapped member 

of the family, to the extent necessary to 

enable any member of such family 

(including such handicapped member) 

to be employed. 

(4) Child care expenses. Any 

reasonable child care expenses 

necessary to enable a member of the 

family to be employed or to further his 

or her education. 

(5) Minors, students, and persons with 

disabilities. $480 for each member of the 

family residing in the household (other 

than the head of the household or his or 

her spouse) who is less than 18 years of 

age or is attending school or vocational 

training on a full-time basis, or who is 

18 years of age or older and is a person 

with disabilities. 

(6) Child support payments. Any 

payment made by a member of the 

family for the support and maintenance 

of any child who does not reside in the 

household, except that the amount 

excluded under this clause may not 

exceed $480 for each child for whom 

such payment is made; except that this 

clause applies only to the extent 

approved in appropriations Acts. 

(7) Spousal support expenses. Any 

payment made by a member of the 

family for the support and maintenance 

of any spouse or former spouse who 

does not reside in the household, except 

that the amount excluded under this 

clause must not exceed the lesser of the 

amount that such family member has a 

legal obligation to pay, or $550 for each 

individual for whom such payment is 

made; except that this clause applies 

only to the extent approved in 

appropriations Acts. 

(8) Earned income of minors. The 

amount of any earned income of a 

member of the family who is not: 

(i) 18 years of age or older; and 

(ii) The head of the household (or the 

spouse of the head of the household). 

(9) Permissive exclusions for public 

housing. In determining adjusted 

income, a Housing Development Agency 

may, in the discretion of the agency, 

establish exclusions from the annual 

income of a family residing in a public 

housing dwelling unit. Such exclusions 

may include the following amounts: 

(10) Excessive travel expenses. 

Excessive travel expenses in an amount 

not to exceed $25 per family per week, 

for employment or education-related 

travel. 

(11) Earned income. An amount of 

any earned income of the family, 

established at the discretion of the 

Housing Development Agency, which 

may be based on— 

(i) All earned income of the family, 

(ii) The amount earned by particular 

members of the family; 

(iii) The amount earned by families 

having certain characteristics; or 

(iv) The amount earned by families or 

members during certain periods or from 

certain sources. 

(12) Others. Such other amounts for 

other purposes, as the Housing 

Development Agency may establish. 

Applicant means an eligible entity 

that has submitted an application under 

§ 688.210. 

Basic Skills Deficient means an 

individual: 

(1) Who is a youth, that the individual 

has English reading, writing, or 

computing skills at or below the 8th 

grade level on a generally accepted 

standardized test; or 

(2) Who is a youth or adult, that the 

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. 

Community or other public facility 

means those facilities which are either 

privately owned by non-profit 

organizations, including faith-based and 

community-based organizations, and 

publicly used for the benefit of the 

community, or publicly owned and 

publicly used for the benefit of the 

community. 

Construction Plus means the 

inclusion of occupational skills training 

for YouthBuild participants in indemand occupations other than 

construction. 

Eligible entity means a public or 

private non-profit agency or 

organization (including a consortium of 

such agencies or organizations), 

including: 

(1) A community-based organization; 

(2) A faith-based organization; 

(3) An entity carrying out activities 

under this title, such as a Local Board; 

(4) A community action agency; 

(5) A State or local housing 

development agency; 

(6) An Indian tribe or other agency 

primarily serving Indians; 

(7) A community development 

corporation; 

(8) A State or local youth service or 

conservation corps; and 

(9) Any other entity eligible to 

provide education or employment 

training under a Federal program (other 


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than the program carried out under this 

section). 

English language learner, when used 

with respect to a participant, means an 

eligible individual who has limited 

ability in reading, writing, speaking, or 

comprehending the English language, 

and: 

(1) Whose native language is a 

language other than English; or 

(2) Who lives in a family or 

community environment where a 

language other than English is the 

dominant language. 

Exit, as used in § 688.400, has the 

same meaning as in § 676.150(c). 

Follow-up services include: 

(1) The leadership development and 

supportive service activities listed in 

§§ 681.520 and 681.570; 

(2) Regular contact with a youth 

participant’s employer, including 

assistance in addressing work-related 

problems that arise; 

(3) Assistance in securing better 

paying jobs, career development and 

further education; 

(4) Work-related peer support groups; 

(5) Adult mentoring; and 

(6) Services necessary to ensure the 

success of youth participants in 

employment and/or post-secondary 

education. 

Homeless individual means an 

individual who lacks a fixed, regular, 

and adequate nighttime residence and 

includes an individual who: 

(1) Is sharing the housing of other 

persons due to loss of housing, 

economic hardship, or similar reason; 

(2) Is living in a motel, hotel, trailer 

park, or campground due to the lack of 

alternative adequate accommodations; 

(3) Is living in an emergency or 

transitional shelter; 

(4) Is abandoned in a hospital; or is 

awaiting foster care placement; 

(5) An individual who has a primary 

nighttime residence that is a public or 

private place not designed for or 

ordinarily used as regular sleeping 

accommodation for human beings; or 

(6) Migratory children who qualify as 

homeless under this section because the 

children are living in circumstances 

described in this definition. 

Homeless child or youth means an 

individual who lacks a fixed, regular, 

and adequate nighttime residence and 

includes: 

(1) Children and youths who are 

sharing the housing of other persons 

due to loss of housing, economic 

hardship, or a similar reason; 

(2) Are living in motels, hotels, trailer 

parks, or camping grounds due to the 

lack of alternative adequate 

accommodations; 

(3) Are living in emergency or 

transitional shelters; are abandoned in 

hospitals; or are awaiting foster care 

placement; 

(4) Children and youths who have a 

primary nighttime residence that is a 

public or private place not designed for 

or ordinarily used as a regular sleeping 

accommodation for human beings; 

(5) Children and youths who are 

living in cars, parks, public spaces, 

abandoned buildings, substandard 

housing, bus or train stations, or similar 

settings; or 

(6) Migratory children who qualify as 

homeless for the purposes of this part 

because the children are living in 

circumstances described in this 

definition. 

Housing Development Agency means 

any agency of a Federal, State or local 

government, or any private non-profit 

organization, that is engaged in 

providing housing for homeless 

individuals or low-income families. 

Income, as defined in the United 

States Housing Act of 1937 (42 U.S.C. 

1437 a(b)(2)), means income is from all 

sources of each member of the 

household, as determined in accordance 

with the criteria prescribed by the 

Secretary of Labor, in consultation with 

the Secretary of Agriculture, except that 

any amounts not actually received by 

the family and any amounts which 

would be eligible for exclusion under 

sec. 1382b(a)(7) of the United States 

Housing Act of 1937, may not be 

considered as income under this 

definition. 

In-Demand Industry Sector or 

Occupation means: 

(1) An industry sector that has a 

substantial current or potential impact 

(including through jobs that lead to 

economic self-sufficiency and 

opportunities for advancement) on the 

State, regional, or local economy, as 

appropriate, and that contributes to the 

growth or stability of other supporting 

business, or the growth of other industry 

sectors; or 

(2) An occupation that currently has 

or is projected to have a number of 

positions (including positions that lead 

to economic self-sufficiency and 

opportunities for advancement) in an 

industry sector so as to have a 

significant impact on the State, regional, 

or local economy, as appropriate. 

Indian, as defined in the Indian SelfDetermination and Education 

Assistance Act (25 U.S.C. 450b), means 

a person who is a member of an Indian 

tribe. 

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 (85 Stat. 688) (43 U.S.C. 

1601 et seq.), which is recognized as 

eligible for the special programs and 

services provided by the United States 

to Indians because of their status as 

Indians. 

Individual with a disability means an 

individual: 

(1) With a physical or mental 

impairment that substantially limits one 

or more major life activities of such 

individual; 

(2) With a record of such an 

impairment; or 

(3) Regarded as having such an 

impairment. 

(i) An individual is regarded as 

having such an impairment if the 

individual establishes that he or she has 

been subjected to an action prohibited 

under the Americans with Disabilities 

Act of 1990 because of an actual or 

perceived physical or mental 

impairment whether or not the 

impairment limits or is perceived to 

limit a major life activity. 

(ii) An individual is not considered an 

individual with a disability under 

paragraph (3) of this section if the 

impairment has an actual or expected 

duration of 6 months or less. 

(4) For purposes of paragraphs (1) 

through (3) of this definition, major life 

activity, includes, but is not limited to: 

(i) Caring for oneself, performing 

manual tasks, seeing, hearing, eating, 

sleeping, walking, standing, lifting, 

bending, speaking, breathing, learning, 

reading, concentrating, thinking, 

communicating, and working; and 

(ii) The operation of a major bodily 

function, including but not limited to, 

functions of the immune system, normal 

cell growth, digestive, bowel, bladder, 

neurological, brain, respiratory, 

circulatory, endocrine, and reproductive 

functions. 

Low-income family means a family 

whose income does not exceed 80 

percent of the median income for the 

area unless the Secretary determines 

that a higher or lower ceiling is 

warranted. This definition includes 

families consisting of one person as 

defined by 42 U.S.C. 1437a(b)(3). 

Migrant youth means a youth, or a 

youth who is the dependent of someone 

who, during the previous 12 months 

has: 

(1) Worked at least 25 days in 

agricultural labor that is characterized 

by chronic unemployment or 

underemployment; 

(2) Made at least $800 from 

agricultural labor that is characterized 

by chronic unemployment or 

underemployment, if at least 50 percent 

of his or her income came from such 

agricultural labor; 


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(3) Was employed at least 50 percent 

of his or her total employment in 

agricultural labor that is characterized 

by chronic unemployment or 

underemployment; or 

(4) Was employed in agricultural 

labor that requires travel to a jobsite 

such that the farmworker is unable to 

return to a permanent place of residence 

within the same day. 

Needs-based payments means 

additional payments beyond regular 

stipends for program participation that 

are based on defined needs that enable 

a youth to participate in the program. 

Occupational skills training means an 

organized program of study that 

provides specific vocational skills that 

lead to proficiency in performing actual 

tasks and technical functions required 

by certain occupational fields at entry, 

intermediate, or advanced levels. 

Occupational skills training includes 

training programs that lead to 

recognized post-secondary credentials 

that align with in-demand industry 

sectors or occupations in the local area. 

Such training must: 

(1) Be outcome-oriented and focused 

on an occupational goal specified in the 

individual service strategy; 

(2) Be of sufficient duration to impart 

the skills needed to meet the 

occupational goal; and 

(3) Result in attainment of a 

recognized post-secondary credential. 

Offender means an adult or juvenile 

who: 

(1) Is or has been subject to any stage 

of the criminal justice process, and who 

may benefit from WIOA services; or 

(2) Requires assistance in overcoming 

artificial barriers to employment 

resulting from a record of arrest or 

conviction. 

Participant means an individual who 

has been determined eligible to 

participate in the YouthBuild program, 

and that enrolls in the program and 

receives services or training described 

in § 688.320. 

Pre-apprenticeship means a program 

or set of strategies designed to prepare 

individuals to enter and succeed in a 

registered apprenticeship program and 

has a documented partnership with at 

least one, if not more, registered 

apprenticeship programs. A quality preapprenticeship program incorporates at 

least one of the following elements: 

(1) Approved training and 

curriculum; 

(2) Strategies for long-term success; 

(3) Access to appropriate support 

services; 

(4) Promotes greater use of registered 

apprenticeship to increase future 

opportunities; 

(5) Meaningful hands-on training that 

does not displace paid employees; and 

(6) Facilitated entry and/or 

articulation. 

Recognized post-secondary credential 

means a credential consisting of an 

industry-recognized certificate or 

certification, a certificate of completion 

of an apprenticeship, a license 

recognized by the State involved or 

Federal government, or an associate or 

baccalaureate degree. 

Registered apprenticeship program 

means an apprenticeship program that: 

(1) Is registered under the Act of 

August 16, 1937 (commonly known as 

the ‘‘National Apprenticeship Act’’; 50 

Stat. 664, chapter 663; 20 U.S.C. 50 et 

seq.); and 

(2) Meets such other criteria as the 

Secretary may establish. 

School dropout means an individual 

who no longer attends any school and 

who has not received a secondary 

school diploma or its State-recognized 

equivalent. 

Secondary school means 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 

twelve. 

Section 3 means to a program 

described in sec. 3 of the Housing and 

Urban Development Act of 1968, as 

amended by the Housing and 

Community Development Act of 1992. 

Supportive services means services 

that enable an individual to participate 

in WIOA activities. These services 

include, but are not limited to, the 

following: 

(1) Linkages to community services; 

(2) Assistance with transportation; 

(3) Assistance with child care and 

dependent care; 

(4) Referrals to child support; 

(5) Assistance with housing; 

(6) Needs-related payments; 

(7) Assistance with educational 

testing; 

(8) Reasonable accommodations for 

youth with disabilities 

(9) Referrals to medical services; and 

(10) Assistance with uniforms or other 

appropriate work attire and workrelated tools, including such items as 

eye glasses and protective eye gear. 

Transitional housing means housing 

provided to ease the movement of 

individuals and families experiencing 

homelessness to permanent housing 

within 24 months or such longer period. 

YouthBuild program means 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, includes energy efficiency 

enhancements) or construction of 

housing for homeless individuals and 

low-income families, and public 

facilities. 

Youth in foster care means youth 

currently in foster care or youth who 

have ever been in foster care. 

Subpart B—Funding and Grant 

Applications 

§ 688.200 How are YouthBuild grants 

funded and administered? 

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 the Act. YouthBuild grants are 

awarded to eligible entities, as defined 

in § 688.120, through the competitive 

selection process described in § 688.210. 

§ 688.210 How does an eligible entity 

apply for grant funds to operate a 

YouthBuild program? 

The Secretary announces the 

availability of grant funds through a 

Funding Opportunity Announcement 

(FOA). The FOA contains instructions 

for what the Department requires in the 

grant application, describes eligibility 

requirements, the rating criteria that the 

Department will use in reviewing grant 

applications, and special reporting 

requirements to operate a YouthBuild 

project. The FOA, along with the 

requisite forms needed to apply for 

grant funds, can be found athttp://

www.doleta.gov/grants/find_grants.cfm. 

§ 688.220 How are eligible entities selected 

to receive grant funds? 

In order to receive funds under the 

YouthBuild program, an eligible entity 

must meet selection criteria established 

by the Secretary which include: 

(a) The qualifications or potential 

capabilities of an applicant; 

(b) An applicant’s potential to 

develop a successful YouthBuild 

program; 

(c) The need for an applicant’s 

proposed program, as determined by the 

degree of economic distress of the 

community from which participants 

would be recruited (measured by 

indicators such as poverty, youth 

unemployment, and the number of 

individuals who have dropped out of 

secondary school) and of the 

community in which the housing and 

community and public facilities 

proposed to be rehabilitated or 

constructed are located (measured by 

indicators such as incidence of 

homelessness, shortage of affordable 

housing, and poverty); 


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(d) The commitment of an applicant 

to provide skills training, leadership 

development, counseling and case 

management, and education to 

participants; 

(e) The focus of a proposed program 

on preparing youth for local in-demand 

sectors or occupations, or postsecondary education and training 

opportunities; 

(f) The extent of an applicant’s 

coordination of activities to be carried 

out through the proposed program with: 

(1) Local Boards, one-stop career 

center operators, and one-stop partners 

participating in the operation of the onestop delivery system involved, or the 

extent of the applicant’s good faith 

efforts, as determined by the Secretary, 

in achieving such coordination; 

(2) Public education, criminal justice, 

housing and community development, 

national service, or post-secondary 

education or other systems that relate to 

the goals of the proposed program; and 

(3) Employers in the local area. 

(g) The extent to which a proposed 

program provides for inclusion of 

tenants who were previously homeless 

individuals or families in the rental of 

housing provided through the program; 

(h) The commitment of additional 

resources to the proposed program (in 

addition to the funds made available 

through the grant) by: 

(1) An applicant; 

(2) Recipients of other Federal, State, 

or local housing and community 

development assistance who will 

sponsor any part of the rehabilitation, 

construction, operation and 

maintenance, or other housing and 

community development activities 

undertaken as part of the proposed 

program; or 

(3) Entities carrying out other Federal, 

State, or local activities or activities 

conducted by Indian tribes, including 

vocational education programs, adult 

and language instruction educational 

programs, and job training using funds 

provided under WIOA; 

(i) An applicant’s ability to enter 

partnerships with: 

(1) Education and training providers 

including: 

(i) The kindergarten through twelfth 

grade educational system; 

(ii) Adult education programs; 

(iii) Community and technical 

colleges; 

(iv) Four-year colleges and 

universities; 

(v) Registered apprenticeship 

programs; and 

(vi) Other training entities; 

(2) Employers, including professional 

organizations and associations. An 

applicant will be evaluated on the 

extent to which employers participate 

in: 

(i) Defining the program strategy and 

goals; 

(ii) Identifying needed skills and 

competencies; 

(iii) Designing training approaches 

and curricula; 

(iv) Contributing financial support; 

and 

(v) Hiring qualified YouthBuild 

graduates. 

(3) The workforce investment system 

which may include: 

(i) State and Local Workforce 

Development Boards; 

(ii) State workforce agencies; and 

(iii) One-stop career centers and their 

cooperating partners. 

(4) The juvenile and adult justice 

systems, and the extent to which they 

provide: 

(i) Support and guidance for 

YouthBuild participants with court 

involvement; 

(ii) Assistance in the reporting of 

recidivism rates among YouthBuild 

participants; and 

(iii) Referrals of eligible participants 

through diversion or reentry from 

incarceration. 

(5) Faith-based and community 

organizations, and the extent to which 

they provide a variety of grant services 

such as: 

(i) Case management; 

(ii) Mentoring; 

(iii) English as a Second Language 

courses; and 

(iv) Other comprehensive supportive 

services, when appropriate. 

(j) The applicant’s potential to serve 

different regions, including rural areas 

and States that may not have previously 

received grants for YouthBuild 

programs; and 

(k) Such other factors as the Secretary 

determines to be appropriate for 

purposes of evaluating an applicant’s 

potential to carry out the proposed 

program in an effective and efficient 

manner. 

(l) The weight to be given to these 

factors will be described in the FOA 

issued under § 688.210. 

§ 688.230 What are the minimum 

requirements to apply for YouthBuild 

funds? 

At minimum, applications for 

YouthBuild funds must include the 

following elements: 

(a) Labor market information for the 

relevant labor market area, including 

both current data (as of the date of 

submission of the application) and 

projections on career opportunities in 

construction and in-demand industry 

sectors or occupations; 

(b) A request for the grant, specifying 

the amount of the grant requested and 

its proposed uses; 

(c) A description of the applicant and 

a statement of its qualifications, 

including a description of the 

applicant’s relationship with Local 

Boards, one-stop operators, local 

unions, entities carrying out registered 

apprenticeship programs, other 

community groups, and employers, and 

the applicant’s past experience, with 

rehabilitation or construction of housing 

or public facilities (including 

experience with HUD’s Section 3 of the 

Housing and Urban Development Act of 

1968 (12 U.S.C. 1701u), and with youth 

education and employment training 

programs; 

(d) A description of the proposed site 

for the proposed program; 

(e) A description of the educational 

and job training activities, work 

opportunities, post-secondary education 

and training opportunities, and other 

services that will be provided to 

participants, and how those activities, 

opportunities and services will prepare 

youth for employment in in-demand 

industry sectors or occupations in the 

labor market area described in 

paragraph (a) of this section; 

(1) A description of the proposed 

activities to be undertaken under the 

grant related to rehabilitation or 

construction, and, in the case of an 

applicant requesting approval from the 

Secretary to carry out additional 

activities related to in-demand industry 

sectors or occupations, a description of 

such additional activities. 

(2) The anticipated schedule for 

carrying out all activities proposed 

under paragraph (f) of this section; 

(f) A description of the manner in 

which eligible youth will be recruited 

and selected as participants, including a 

description of arrangements that will be 

made with Local Boards, one-stop 

operators, faith and community-based 

organizations, State educational 

agencies or local education agencies 

(including agencies of Indian tribes), 

public assistance agencies, the courts of 

jurisdictions, agencies that serve youth 

who are homeless individuals 

(including those that operate shelters), 

foster care agencies, and other 

appropriate public and private agencies; 

(g) A description of the special 

outreach efforts that will be undertaken 

to recruit eligible young women 

(including young women with 

dependent children) as participants; 

(h) A description of the specific role 

of employers in the proposed program, 

such as their role in developing the 

proposed program and assisting in 


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service provision and placement 

activities; 

(i) A description of how the proposed 

program will be coordinated with other 

Federal, State, and local activities 

conducted by Indian tribes, such as 

workforce investment activities, career 

and technical education and training 

programs, adult and language 

instruction educational programs, 

activities conducted by public schools, 

activities conducted by community 

colleges, national service programs, and 

other job training provided with funds 

available under WIOA, in particular 

how programs will coordinate with 

local Workforce Development funds 

outlined in WIOA sec. 129(c)(2). 

(j) Assurances that there will be a 

sufficient number of adequately trained 

supervisory personnel in the proposed 

program; 

(k) A description of the level of 

performance to be achieved with respect 

to primary indicators of performance for 

eligible youth as described in § 688.410; 

(l) The organization’s past 

performance under a grant issued by the 

Secretary to operate a YouthBuild 

program; 

(m) A description of the applicant’s 

relationship with local building trade 

unions regarding their involvement in 

training to be provided through the 

proposed program, the relationship of 

the proposed program to established 

registered apprenticeship programs and 

employers, the ability of the applicant to 

grant an industry-recognized certificate 

or certification through the program, 

and the quality of the program leading 

to the certificate or certification; 

(n) A description of activities that will 

be undertaken to develop leadership 

skills of participants; 

(o) A detailed budget and description 

of the system of fiscal controls, and 

auditing and accounting procedures, 

that will be used to ensure fiscal 

soundness for the proposed program; 

(p) A description of the commitments 

for any additional resources (in addition 

to funds made available through the 

grant) to be made available to the 

proposed program from: 

(1) The applicant; 

(2) Recipients of other Federal, State, 

or local housing and community 

development assistance that will 

sponsor any part of the rehabilitation or 

construction, operation or maintenance, 

or other housing and community 

development activities undertaken as 

part of the proposed program; or 

(3) Entities carrying out other Federal, 

State or local activities conducted by 

Indian tribes, including career and 

technical education and training 

programs, and job training provided 

with funds under WIOA. 

(q) Information identifying, and a 

description of, the financing proposed 

for any: 

(1) Rehabilitation of the property 

involved; 

(2) Acquisition of the property; or 

(3) Construction of the property; 

(r) Information identifying, and a 

description, of the entity that will 

manage and operate the property; 

(s) Information identifying, and a 

description of, the data collection 

systems to be used; 

(t) A certification, by a public official 

responsible for the housing strategy for 

the State or unit of general local 

government within which the proposed 

program is located, that the proposed 

program is consistent with the housing 

strategy; and 

(u) A certification that the applicant 

will comply with requirements of the 

Fair Housing Act (42 U.S.C. 3601 et 

seq.) and will affirmatively further fair 

housing. 

(v) Any additional requirements that 

the Secretary determines are 

appropriate. 

§ 688.240 How are eligible entities notified 

of approval for grant funds? 

The Secretary will, to the extent 

practicable, notify each eligible entity 

applying for funds no later than 5 

months from the date the application is 

received, whether the application is 

approved or disapproved. In the event 

additional funds become available, ETA 

reserves the right to use such funds to 

select additional grantees from 

applications submitted in response to a 

FOA. 

Subpart C—Program Requirements 

§ 688.300 Who is an eligible participant? 

(a) Eligibility criteria. Except as 

provided in paragraph (b) of this 

section, an individual is eligible to 

participate in a YouthBuild program if 

the individual is: 

(1) Not less than age 16 and not more 

than age 24 on the date of enrollment; 

and 

(2) A school dropout or an individual 

who has dropped out of school and has 

subsequently reenrolled; and 

(3) Is one or more of the following: 

(i) A member of a low-income family; 

(ii) A youth in foster care; 

(iii) An offender; 

(iv) A youth who is an individual 

with a disability; 

(v) The child of a current or formerly 

incarcerated parent; or 

(vi) A migrant youth. 

(b) Exceptions. Not more than 25 

percent of the participants in a program, 

under this section, may be individuals 

who do not meet the requirements of 

paragraph (a)(2) or (3) of this section, if 

such individuals: 

(1) Are basic skills deficient, as 

defined in § 688.120, despite attainment 

of a secondary school diploma or its 

recognized State equivalent (including 

recognized certificates of attendance or 

similar documents for individuals with 

disabilities); or 

(2) Have been referred by a local 

secondary school for participation in a 

YouthBuild program leading to the 

attainment of a secondary school 

diploma if such referral is to a 

YouthBuild program offering a 

secondary school diploma. 

§ 688.310 Are there special rules that 

apply to veterans? 

Special rules for determining income 

for veterans are found in 20 CFR 

683.230 and for the priority of service 

provisions for qualified persons are 

found in 20 CFR part 1010. Those 

special rules apply to covered persons 

who are eligible to participate in the 

YouthBuild program. 

§ 688.320 What eligible activities may be 

funded under the YouthBuild program? 

Grantees may provide one or more of 

the following education and workforce 

investment and other activities to 

YouthBuild participants— 

(a) Eligible education and workforce 

activities including: 

(1) Work experience and skills 

training (coordinated, to the maximum 

extent feasible, with registered 

apprenticeship programs), including: 

(i) Supervision and training for 

participants in the rehabilitation or 

construction of housing, including 

residential housing for homeless 

individuals or low-income families, or 

transitional housing for homeless 

individuals and in additional indemand industry sectors or occupations 

in the region in which the program 

operates (as approved by the Secretary); 

(ii) Supervision and training for 

participants in the rehabilitation or 

construction of community and other 

public facilities, except that not more 

than 15 percent of grant fundsappropriated to carry out this section 

may be used for this activity; and 

(iii) Supervision and training for 

participants in in-demand industry 

sectors or occupations in the region in 

which the program operates, if such 

activity is approved by the Secretary. 

(2) Occupational skills training; 

(3) Other paid and unpaid work 

experiences, including internships and 

job shadowing; 


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(4) Services and activities designed to 

meet the educational needs of 

participants, including: 

(i) Basic skills instruction and 

remedial education; 

(ii) Language instruction educational 

programs for participants who are 

English language learners; 

(iii) Secondary education services and 

activities, including tutoring, study 

skills training, and school dropout 

prevention and recovery activities, 

designed to lead to the attainment of a 

secondary school diploma or its 

recognized equivalent (including 

recognized certificates of attendance or 

similar document for individuals with 

disabilities); 

(iv) Counseling and assistance in 

obtaining post-secondary education and 

required financial aid and; 

(v) Alternative secondary school 

services; 

(5) Counseling services and related 

activities, such as comprehensive 

guidance and counseling on drug and 

alcohol abuse; referrals to mental health 

services, and referrals to victim services; 

(6) Activities designed to develop 

employment and leadership skills, 

which may include community service 

and peer-centered activities encouraging 

responsibility and other positive social 

behaviors, and activities related to 

youth policy committees that participate 

in decision-making related to the 

program; 

(7)(i) Supportive services and needsbased payments necessary to enable 

individuals to participate in the 

program and to assist individuals for a 

period of time not to exceed 12 months 

after the completion of training, in 

obtaining or retaining employment or 

applying for and transitioning to postsecondary education or training. 

(ii) To provide needs-based payments, 

a grantee must have a written policy 

which: 

(A) Establishes participant eligibility 

for such payments; 

(B) Establishes the amounts to be 

provided; 

(C) Describes the required 

documentation and criteria for 

payments, and 

(D) Is applied consistently to all 

program participants. 

(8) Job search and assistance. 

(b) Payment of the administrative 

costs of the applicant, including 

recruitment and selection of 

participants, except that not more than 

10 percent of the amount awarded 

under § 688.210 may be used for such 

costs. 

(c) Adult mentoring. 

(d) Provision of wages, stipends, or 

benefits to participants in the program; 

(e) Ongoing training and technical 

assistance that is related to developing 

and carrying out the program, and; 

(f) Follow-up services. 

§ 688.330 What level of training qualifies a 

construction project as a qualifying work 

site under the YouthBuild program? 

At a minimum, in order to qualify as 

a work site for the purposes of the 

YouthBuild program, a work site must: 

(a) Provide participants with the 

opportunity to have hands-on training 

and experience in two or more modules 

in a construction skills training program 

that offers an industry-recognized 

credential; 

(b) Be built or renovated for lowincome individuals or families; 

(c) Provide substantial hands-on 

experience for youth; 

(d) Have a restrictive covenant in 

place that only allows for rental or 

resale to low-income participants as 

required by § 688.730. 

(e) Adhere to the allowable 

construction and other capital asset 

costs applicable to the YouthBuild 

program. 

§ 688.340 What timeframes apply to 

participation? 

An eligible individual selected for 

participation in the program must be 

offered full-time participation in the 

program for not less than 6 months and 

not more than 24 months. 

§ 688.350 What timeframes must be 

devoted to education and workforce 

investment or other activities? 

YouthBuild grantees must structure 

programs so that participants in the 

program are offered: 

(a) Education and related services and 

activities designed to meet educational 

needs, such as those specified in 

§ 688.320(a)(4) through (7), during at 

least 50 percent of the time during 

which they participate in the program; 

and 

(b) Workforce and skills development 

activities, such as those specified in 

§ 688.320(a)(1) through (3), during at 

least 40 percent of the time during 

which they participate in the program. 

(c) The remaining 10 percent of the 

time of participation can be used for the 

activities described in paragraphs (a) 

and (b) of this section and/or for 

leadership development and community 

service activities. 

§ 688.360 What timeframes apply to followup services? 

Grantees must provide follow-up 

services to all YouthBuild participants 

for a period of 12 months after a 

participant successfully exits a 

YouthBuild program. 

§ 688.370 What are the requirements for 

exit from the YouthBuild program? 

At a minimum, to be a successful exit, 

the Department of Labor requires that: 

(a) Participants receive hands-on 

construction training or hands-on 

training in another industry or 

occupation, in the case of Construction 

Plus grantees; 

(b) Participants meet the exit policies 

established by the grantee. 

(1) Such policy must describe the 

program outcomes and/or individual 

goals that must be met by participants 

in order to successfully complete the 

program; and 

(2) Grantees must apply the policy 

consistently to determine when 

successful exit has occurred. 

§ 688.380 What is the role of the 

YouthBuild grantee in the one-stop system? 

In those local workforce investment 

areas where the grantee operates its 

YouthBuild program, the grantee is a 

required partner of the local one-stop 

delivery system and is subject to the 

provisions relating to such partners 

described in 20 CFR part 678. 

Subpart D—Performance Indicators 

§ 688.400 What are the performance 

indicators for YouthBuild grants? 

(a) The percentage of program 

participants who are in education and 

training activities, or in unsubsidized 

employment, during the second quarter 

after exit from the program; 

(b) The percentage of program 

participants who are in education or 

training activities, or in unsubsidized 

employment, during the fourth quarter 

after exit from the program; 

(c) The median earnings of program 

participants who are in unsubsidized 

employment during the second quarter 

after exit from the program; 

(d) The percentage of program 

participants who obtain a recognized 

post-secondary credential or secondary 

school diploma or its recognized 

equivalent (and for those achieving the 

secondary diploma or its recognized 

equivalent, such participants have also 

obtained or retained employment or are 

in an education or training program 

leading to a recognized post-secondary 

credential within 1 year after exit from 

the program); 

(e) The percentage of program 

participants, who during a program 

year, are in an education and training 

program that leads to a recognized postsecondary credential or employment 

and who are achieving measurable skill 

gains toward such a credential or 

employment; 


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(f) The indicator of effectiveness in 

serving employers described at 

§ 676.155(d)(6); and 

(g) Other indicators of performance as 

may be required by the Secretary. 

§ 688.410 What are the required levels of 

performance for the performance 

indicators? 

(a) The Secretary must annually 

establish expected levels of performance 

for YouthBuild programs relating to 

each of the primary indicators of 

performance. The expected levels of 

performance for each of the common 

performance indicators are national 

standards that are provided in 

separately issued guidance. Short-term 

or other performance indicators will be 

provided in separately issued guidance 

or as part of the FOA or grant 

agreement. Performance level 

expectations will be based on available 

YouthBuild data and data from similar 

WIOA youth programs and may change 

between grant competitions. The 

expected national levels of performance 

will take into account the extent to 

which the levels promote continuous 

improvement in performance. 

(b) The levels of performance 

established will, at a minimum: 

(1) Be expressed in an objective, 

quantifiable, and measurable form; and 

(2) Indicate continuous improvement 

in performance. 

§ 688.420 What are the reporting 

requirements for YouthBuild grantees? 

Each grantee must provide such 

reports as are required by the Secretary 

in separately issued guidance, 

including: 

(a) The quarterly performance report; 

(b) The quarterly narrative progress 

report; 

(c) The financial report; and 

(d) Such other reports as may be 

required by the grant agreement. 

§ 688.430 What are the due dates for 

quarterly reporting? 

(a) Quarterly reports are due no later 

than 45 days after the end of the 

reporting quarter, unless otherwise 

specified in the reporting guidance 

issued under § 688.420; and 

(b) A final financial report is required 

90 days after the expiration of a funding 

period or the termination of grant 

support. 

Subpart E—Administrative Rules, 

Costs, and Limitations 

§ 688.500 What administrative regulations 

apply to the YouthBuild program? 

Each YouthBuild grantee must 

comply with the following: 

(a) The regulations found in this part. 

(b) The general administrative 

requirements found in 20 CFR part 683, 

except those that apply only to the 

WIOA title I–B program and those that 

have been modified by this section. 

(c) The Department’s regulations on 

government-wide requirements, which 

include: 

(1) The regulations codifying the 

Office of Management and Budget’s 

government-wide grants requirements at 

2 CFR 200 and 2900, as applicable; 

(2) The Department’s regulations at 29 

CFR part 37, which implement the 

nondiscrimination provisions of WIA 

sec. 188; 

(3) The Department’s regulations at 29 

CFR parts 93, 94, and 98 relating to 

restrictions on lobbying, drug free 

workplace, and debarment and 

suspension; and 

(4) The audit requirements of the 

Office of Management and Budget at 2 

CFR 200 and 2900, as applicable. 

(d) Relevant State and local 

educational standards. 

§ 688.510 How may grantees provide 

services under the YouthBuild program? 

Each recipient of a grant under the 

YouthBuild program may provide the 

services and activities described in 

these regulations either directly or 

through subgrants, contracts, or other 

arrangements with local educational 

agencies, post-secondary educational 

institutions, State or local housing 

development agencies, other public 

agencies, including agencies of Indian 

tribes, or private organizations. 

§ 688.520 What cost limits apply to the use 

of YouthBuild program funds? 

(a) Administrative costs for programs 

operated under YouthBuild are limited 

to 10 percent of the grant award. The 

definition of administrative costs can be 

found in 20 CFR 683.215. 

(b) The cost of supervision and 

training for participants involved in the 

rehabilitation or construction of 

community and other public facilities is 

limited to no more than 10 percent of 

the grant award. 

§ 688.530 What are the cost-sharing or 

matching requirements of the YouthBuild 

program? 

(a) In addition to the rules described 

in paragraphs (b) through (f) of this 

section, the cost-sharing or matching 

requirements applicable to a 

YouthBuild grant will be addressed in 

the grant agreement. 

(b) The value of construction 

materials used in the YouthBuild 

program is an allowable cost for the 

purposes of the required non-Federal 

share or match. 

(c) The value of land acquired for the 

YouthBuild program is not an allowable 

cost-sharing or match. 

(d) Federal funds may not be used as 

cost-sharing or match resources except 

as provided by Federal law. 

(e) The value of buildings acquired for 

the YouthBuild program is an allowable 

match, provided that the following 

conditions apply: 

(1) The purchase cost of buildings 

used solely for training purposes is 

allowable; and 

(2) For buildings used for training and 

other purposes, the allowable amount is 

determined based on the proportionate 

share of the purchase price related to 

direct training activities. 

(f) Grantees must follow the 

requirements of 2 CFR parts 200 and 

2900 in the accounting, valuation, and 

reporting of the required non-Federal 

share. 

§ 688.540 What are considered to be 

leveraged funds? 

(a) Leveraged funds may be used to 

support allowable YouthBuild program 

activities and consist of payments made 

for allowable costs funded by both nonYouthBuild Federal, and non-Federal, 

resources which include: 

(1) Costs which meet the criteria for 

cost-sharing or match in § 688.530 and 

are in excess of the amount of costsharing or match resources required; 

(2) Costs which would meet the 

criteria in § 688.530 except that they are 

paid for with other Federal resources; 

and 

(3) Costs which benefit the grant 

program and are otherwise allowable 

under the cost principles but are not 

allowable under the grant because of 

some statutory, regulatory, or grant 

provision, whether paid for with 

Federal or non-Federal resources. 

(b) The use of leveraged funds must 

be reported in accordance with 

Departmental instructions. 

§ 688.550 How are the costs associated 

with real property treated in the YouthBuild 

program? 

(a) As provided in paragraphs (b) and 

(c) of this section, the costs of the 

following activities associated with real 

property are allowable solely for the 

purpose of training YouthBuild 

participants: 

(1) Rehabilitation of existing 

structures for use by homeless 

individuals and families or low-income 

families or for use as transitional 

housing. 

(2) Construction of buildings for use 

by homeless individuals and families or 

low-income families or for use as 

transitional housing. 


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(3) Construction or rehabilitation of 

community or other public facilities, 

except, as provided in § 688.520(b), only 

15 percent of the grant award is 

allowable for such construction and 

rehabilitation. 

(b) The costs for acquisition of 

buildings that are used for activities 

described in paragraph (a) of this 

section are allowable with prior grant 

officer approval and only under the 

following conditions: 

(1) The purchase cost of buildings 

used solely for training purposes is 

allowable; and 

(2) For buildings used for training and 

other purposes, the allowable amount is 

determined based on the proportionate 

share of the purchase cost related to 

direct training. 

(c) The following costs are allowable 

to the extent allocable to training 

YouthBuild participants in the 

construction and rehabilitation 

activities specified in paragraph (a) of 

this section: 

(1) Trainees’ tools and clothing 

including personal protective 

equipment (PPE); 

(2) On-site trainee supervisors; 

(3) Construction management; 

(4) Relocation of buildings; and 

(5) Clearance and demolition. 

(d) Architectural fees, or a 

proportionate share thereof, are 

allowable when such fees can be related 

to items such as architectural plans or 

blueprints on which participants will be 

trained. 

(e) The following costs are 

unallowable: 

(1) The costs of acquisition of land. 

(2) Brokerage fees. 

§ 688.560 What participant costs are 

allowable under the YouthBuild program? 

Allowable participant costs include: 

(a) The costs of payments to 

participants engaged in eligible workrelated YouthBuild activities. 

(b) The costs of payments provided to 

participants engaged in non-workrelated YouthBuild activities. 

(c) The costs of needs-based 

payments. 

(d) The costs of supportive services. 

(e) The costs of providing additional 

benefits to participants or individuals 

who have exited the program and are 

receiving follow-up services, which may 

include: 

(1) Tuition assistance for obtaining 

college education credits; 

(2) Scholarships to an apprenticeship, 

technical, or secondary education 

program; and 

(3) Sponsored health programs. 

§ 688.570 Does the Department allow 

incentive payments in the YouthBuild 

program? 

(a) Grantees are permitted to provide 

incentive payments to youth 

participants for recognition and 

achievement directly tied to training 

activities and work experiences. 

Grantees must tie the incentive 

payments to the goals of the specific 

grant program and outline such goals in 

writing prior to starting the program that 

makes incentive payments. 

(b) Prior to providing incentive 

payments the organization must have 

written policies and procedures in place 

governing the awarding of incentives 

and the incentives provided under the 

grant must align with these 

organizational policies. 

(c) All incentive payments must 

comply with the requirements in 2 CFR 

200. 

§ 688.580 What effect do payments to 

YouthBuild participants have on eligibility 

for other Federal needs-based benefits? 

Under 20 CFR 683.275(c), the 

Department does not consider 

allowances, earnings, and payments to 

individuals participating in programs 

under title I of WIOA 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 

Social Security Act (42 U.S.C. 301). 

§ 688.590 What program income 

requirements apply under the YouthBuild 

program? 

(a) Except as provided in paragraph 

(b) of this section, program income 

requirements, as specified in the 

applicable Uniform Administrative 

Requirements at 2 CFR parts 200 and 

2900, apply to YouthBuild grants. 

(b) Revenue from the sale of buildings 

rehabilitated or constructed under the 

YouthBuild program to homeless 

individuals and families and lowincome families is not considered 

program income. Grantees are 

encouraged to use that revenue for the 

long-term sustainability of the 

YouthBuild program. 

§ 688.600 Are YouthBuild programs 

subject to the Davis-Bacon Act labor 

standards? 

(a) YouthBuild programs and grantees 

are subject to Davis-Bacon labor 

standards requirements under the 

circumstances set forth in paragraph (b) 

of this section. In those instances where 

a grantee is subject to Davis-Bacon 

requirements, the grantee must follow 

applicable requirements in the 

Department’s regulations at 29 CFR 

parts 1, 3, and 5, including the 

requirements contained in the DavisBacon contract provisions set forth in 29 

CFR 5.5. 

(b) YouthBuild participants are 

subject to Davis-Bacon Act labor 

standards when they perform DavisBacon-covered laborer or mechanic 

work, defined at 29 CFR 5.2(m), on 

Federal or Federally-assisted projects 

that are subject to the Davis-Bacon Act 

labor standards. The Davis-Bacon 

prevailing wage requirements apply to 

hours worked on the site of the work. 

(c) YouthBuild participants who are 

not registered and participating in a 

training program approved by the 

Employment and Training 

Administration must be paid not less 

than the applicable wage rate on the 

wage determination for the 

classification of work actually 

performed. 

§ 688.610 What are the recordkeeping 

requirements for YouthBuild programs? 

(a) Grantees must follow the 

recordkeeping requirements specified in 

the Uniform Administrative 

Requirements, at 29 CFR 95.53 and 29 

CFR 97.42, as appropriate. 

(b) Grantees must maintain such 

additional records related to the use of 

buildings constructed or rehabilitated 

with YouthBuild funds as specified in 

the grant agreement or in the 

Department’s guidance. 

Subpart F—Additional Requirements 

§ 688.700 What are the safety 

requirements for the YouthBuild program? 

(a) YouthBuild Grantees must comply 

with 20 CFR 683.280, which applies 

Federal and State health and safety 

standards to the working conditions 

under WIOA-funded projects and 

programs. These health and safety 

standards include ‘‘hazardous orders’’ 

governing child labor at 29 CFR part 

570. 

(b) YouthBuild grantees are required 

to: 

(1) Provide comprehensive safety 

training for youth working on 

YouthBuild construction projects; 

(2) Have written, jobsite-specific 

safety plans overseen by an on-site 

supervisor with authority to enforce 

safety procedures; 

(3) Provide necessary personal 

protective equipment to youth working 

on YouthBuild projects; and 

(4) Submit required injury incident 

reports. 

§ 688.710 What are the reporting 

requirements for youth safety? 

YouthBuild grantees must ensure that 

YouthBuild program sites comply with 


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the Occupational Safety and Health 

Administration’s (OSHA) reporting 

requirements in 29 CFR part 1904. A 

YouthBuild grantee is responsible for 

sending a copy of OSHA’s injury 

incident report form, to U.S. Department 

of Labor, Employment and Training 

Administration within 7 days of any 

reportable injury suffered by a 

YouthBuild participant. The injury 

incident report form is available from 

OSHA and can be downloaded at 

http://www.osha.gov/recordkeeping/

RKforms.html. Reportable injuries 

include those that result in death, days 

away from work, restricted work or 

transfer to another job, medical 

treatment beyond first aid, or loss of 

consciousness. 

§ 688.720 What environmental protection 

laws apply to the YouthBuild program? 

YouthBuild Program grantees are 

required, where applicable, to comply 

with all environmental protection 

statutes and regulations. 

§ 688.730 What requirements apply to 

YouthBuild housing? 

(a) YouthBuild grantees must ensure 

that all residential housing units which 

are constructed or rehabilitated using 

YouthBuild funds must be available 

solely for: 

(1) Sale to homeless individuals and 

families or low-income families; 

(2) Rental by homeless individuals 

and families or low-income families; 

(3) Use as transitional or permanent 

housing for the purpose of assisting in 

the movement of homeless individuals 

and families to independent living. In 

the case of transitional housing, the 

unit(s) must be occupied no more than 

24 months by the same individual(s); or 

(4) Rehabilitation of homes for lowincome homeowners. 

(b) For rentals of residential units 

located on the property which are 

constructed or rehabilitated using 

YouthBuild funds: 

(1) The property must maintain at 

least a 90 percent level of occupancy for 

low-income families. The income test 

will be conducted only at the time of 

entry for each available unit or 

rehabilitation of occupant-owned home. 

If the grantee cannot find a qualifying 

tenant to lease the unit, the unit may be 

leased to a family whose income is 

above the income threshold to qualify as 

a low-income family but below the 

median income for the area. Leases for 

tenants with higher incomes will be 

limited to not more than 2 years. The 

leases provided to tenants with higher 

incomes are not subject to the 

termination clause that is described in 

paragraph (b)(2) of this section. 

(2) The property owner must not 

terminate the tenancy or refuse to renew 

the lease of a tenant occupying a 

residential rental housing unit 

constructed or rehabilitated using 

YouthBuild funds except for serious or 

repeated violations of the terms and 

conditions of the lease, for violation of 

applicable Federal, State or local laws, 

or for good cause. Any termination or 

refusal to renew the lease must be 

preceded by not less than a 30-day 

written notice to the tenant specifying 

the grounds for the action. The property 

owner may waive the written notice 

requirement for termination in 

dangerous or egregious situations 

involving the tenant. 

(c) All transitional or permanent 

housing for homeless individuals or 

families or low-income families must be 

safe and sanitary. The housing must 

meet all applicable State and local 

housing codes and licensing 

requirements in the jurisdiction in 

which the housing is located. 

(d) For sales or rentals of residential 

housing units constructed or 

rehabilitated using YouthBuild funds, 

YouthBuild grantees must ensure that 

owners of the property record a 

restrictive covenant at the time that an 

occupancy permit is issued against such 

property which includes the use 

restrictions set forth in paragraphs (a), 

(b), and (c) of this section and 

incorporates the following definitions at 

§ 688.120: Homeless Individual; LowIncome Housing; and Transitional 

Housing. The term of the restrictive 

covenant must be at least 5 years from 

the time of the issuance of the 

occupancy permit, unless a time period 

of more than 5 years has been 

established by the grantee. Any 

additional stipulations imposed by a 

grantee or property owner should be 

clearly stated in the covenant. 

(e) Any conveyance document 

prepared in the 5-year period of the 

restrictive covenant must inform the 

buyer of the property that all residential 

housing units constructed or 

rehabilitated using YouthBuild funds 

are subject to the restrictions set forth in 

paragraphs (a) through (d) of this 

section. 

PART 651—GENERAL PROVISIONS 

GOVERNING THE FEDERAL-STATE 

EMPLOYMENT SERVICE SYSTEM 

■ 16. Revise the authority citation for 

part 651 to read as follows: 

Authority: Wagner-Peyser Act sec. 49a, as 

amended by Pub. L. 113–128 sec. 302; 38 

U.S.C. part III, 4101, 4211; Secs. 503, 3, 189, 

Pub. L. 113–128, 128 Stat. 1425 (Jul. 22, 

2014). 

■ 17. Revise § 651.10 to read as follows: 

§ 651.10 Definitions of terms used in parts 

651, 652, 653, and 658. 

Act means the Wagner-Peyser Act 

(codified at 29 U.S.C. 49 et seq.). 

Administrator, Office of Workforce 

Investment (OWI Administrator) means 

the chief official of the Office of 

Workforce Investment (OWI) or the 

Administrator’s designee. 

Affirmative action means positive, 

result-oriented action imposed on or 

assumed by an employer pursuant to 

legislation, court order, consent decree, 

directive of a fair employment practice 

authority, government contract, grant or 

loan, or voluntary affirmative action 

plan adopted pursuant to the affirmative 

action guidelines of the Equal 

Employment Opportunity Commission 

(see 29 CFR part 1608) to provide equal 

employment opportunities for members 

of a specified group which for reasons 

of past custom, historical practice, or 

other non-occupationally valid purposes 

has been discouraged from entering 

certain occupational fields. 

Agricultural worker see Farmworker. 

Applicant Holding Office means an 

employment service office that is in 

receipt of a clearance order and has 

access to U.S.-based workers who may 

be willing and available to perform 

farmwork on a less than year-round 

basis. 

Applicant Holding State means a 

State Workforce Agency that is in 

receipt of a clearance order from another 

State and potentially has U.S.-based 

workers who may be willing and 

available to perform farmwork on a less 

than year-round basis. 

Bona Fide Occupational Qualification 

(BFOQ) means that an employment 

decision or request based on age, sex, 

national origin or religion is based on a 

finding that such characteristic is 

necessary to the individual’s ability to 

perform the job in question. Since a 

BFOQ is an exception to the general 

prohibition against discrimination on 

the basis of age, sex, national origin or 

religion, it must be interpreted narrowly 

in accordance with the Equal 

Employment Opportunity Commission 

regulations set forth at 29 CFR parts 

1604, 1605, and 1627. 

Career Services means the services 

described in sec. 134(b)(2) of WIOA and 

20 CFR 678.430. 

Clearance Order means a job order 

that is processed through the clearance 

system under the Agricultural 

Recruitment System (ARS). 

Clearance System means the orderly 

movement of job seekers as they are 

referred through the employment 

placement process by an employment 


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service office. This includes joint action 

of local employment service offices in 

different labor market areas and/or 

States. 

Complainant means the individual, 

employer, organization, association, or 

other entity filing a complaint. 

Complaint means a representation 

made or referred to a State or 

employment service office of an alleged 

violation of the employment service 

regulations and/or other Federal laws 

enforced by DOL’s Wage and Hour 

Division (WHD) or Occupational Safety 

and Health Administration (OSHA), as 

well as other Federal, State, or local 

agencies enforcing employment-related 

law. 

Decertification means the rescission 

by the Secretary of the year-end 

certification made under sec. 7 of the 

Wagner-Peyser Act to the Secretary of 

the Treasury that the State agency may 

receive funds authorized by the WagnerPeyser Act. 

Department or DOL means the United 

States Department of Labor, including 

its agencies and organizational units. 

Employer means a person, firm, 

corporation or other association or 

organization which currently has a 

location within the United States to 

which U.S. workers may be referred for 

employment, and which proposes to 

employ a worker at a place within the 

United States and which has an 

employer relationship with respect to 

employees under this subpart as 

indicated by the fact that it hires, pays, 

fires, supervises and otherwise controls 

the work of such employees. An 

association of employers is considered 

an employer if it has all of the indicia 

of an employer set forth in this 

definition. Such an association, 

however, is considered as a joint 

employer with the employer member if 

either shares in exercising one or more 

of the definitional indicia. 

Employment and Training 

Administration (ETA) means the 

component of the Department of Labor 

that administers Federal government job 

training and worker dislocation 

programs, Federal grants to States for 

public employment service programs, 

and unemployment insurance benefits. 

These services are primarily provided 

through State and local workforce 

development systems. 

Employment-related laws means those 

laws enforced by DOL’s Wage and Hour 

Division (WHD), Occupational Safety 

and Health Administration (OSHA), or 

by other Federal, State, or local agencies 

enforcing employment-related laws. 

Employment Service (ES) means the 

national system of public employment 

service offices described under the 

Wagner-Peyser Act. The employment 

services are delivered through a 

nationwide system of one-stop centers, 

and are managed by State agencies and 

the various offices of the State agencies, 

and funded by the United States 

Department of Labor. 

Employment Service Office means a 

local office of a State Workforce Agency 

(SWA). 

Employment Service regulations 

means the Federal regulations at 20 CFR 

parts 651, 652, 653, 654, 658, and 29 

CFR part 75. 

Establishment means a public or 

private economic employing unit 

generally at a single physical location 

which produces and/or sells goods or 

services, for example, a mine, factory, 

store, farm, orchard or ranch. It is 

usually engaged in one, or 

predominantly one, type of commercial 

or governmental activity. Each branch or 

subsidiary unit of a large employer in a 

geographical area or community should 

be considered an individual 

establishment, except that all such units 

in the same physical location is 

considered a single establishment. A 

component of an establishment which 

may not be located in the same physical 

structure (such as the warehouse of a 

department store) should also be 

considered as part of the parent 

establishment. For the purpose of the 

‘‘seasonal farmworker’’ definition, farm 

labor contractors and crew leaders are 

not considered establishments; it is the 

organizations to which they supply the 

workers that are the establishments. 

Farmwork means the cultivation and 

tillage of the soil, dairying, the 

production, cultivation, growing, and 

harvesting of any agricultural or 

horticultural commodities. This 

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. It also includes the handling, 

planting, drying, packing, packaging, 

processing, freezing, or grading prior to 

delivery for storage of any agricultural 

or horticultural commodity in its 

unmanufactured state. For the purpose 

of this section, agricultural commodities 

means all commodities produced on a 

farm including crude gum (oleoresin) 

from a living tree products processed by 

the original producer of the crude gum 

(oleoresin) from which they are derived, 

including gum spirits of turpentine and 

gum rosin. Farmwork also means any 

service or activity covered under 20 CFR 

655.103(c) and/or 29 CFR 500.20(e) and 

any service or activity so identified 

through official Department guidance 

such as a Training and Employment 

Guidance Letter. 

Farmworker means an individual 

employed in farmwork as defined in 

this section. 

Field Checks means random, 

unannounced appearances by State 

agency personnel at agricultural 

worksites to which employment service 

placements have been made through the 

intrastate or interstate clearance system 

to ensure that conditions are as stated 

on the job order and that the employer 

is not violating an employment-related 

law. 

Field Visits means appearances by 

monitor advocates or State agency 

outreach personnel to the working and 

living areas of MSFWs. The monitor 

advocates or outreach personnel must 

keep records to discuss ES services and 

other employment-related programs 

with MSFWs, crew leaders, and 

employers. 

Governor means the chief executive of 

a State or an outlying area. 

Hearing Officer means a Department 

of Labor Administrative Law Judge, 

designated to preside at Department 

administrative hearings. 

Interstate clearance order means an 

agricultural job order for temporary 

employment (employment on a less 

than year-round basis) describing one or 

more hard-to-fill job openings, which an 

employment service office uses to 

request recruitment assistance from 

other employment service offices in a 

different State. 

Intrastate clearance order means an 

agricultural job order for temporary 

employment (employment on a less 

than year-round basis) describing one or 

more hard-to-fill job openings, which an 

employment service office uses to 

request recruitment assistance from 

other employment service offices within 

the State. 

Job development means the process of 

securing a job interview with a public 

or private employer for a specific 

applicant for whom the employment 

service office has no suitable opening on 

file. 

Job information means information 

derived from data compiled in the 

normal course of employment service 

activities from reports, job orders, 

applications, and the like. 

Job opening means a single job 

opportunity for which the employment 

service office has on file a request to 

select and refer participants. 

Job order means the document 

containing the material terms and 


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conditions of employment relating to 

wages, hours, working conditions, 

worksite and other benefits, submitted 

by an employer. 

Job referral means: 

(1) The act of bringing to the attention 

of an employer an applicant or group of 

applicants who are available for specific 

job openings or for a potential job; and 

(2) The record of such referral. ‘‘Job 

referral’’ means the same as ‘‘referral to 

a job.’’ 

Labor market area means an 

economically integrated geographic area 

within which individuals can reside 

and find employment within a 

reasonable distance or can readily 

change employment without changing 

their place of residence. Such an area 

must be identified in accordance with 

criteria used by DOL’s Bureau of Labor 

Statistics in defining such areas or 

similar criteria established by a 

Governor. 

Local Office Manager means the 

official in charge of all employment 

service activities in a one-stop center. 

Local Workforce Development Board 

means a Local Workforce Development 

Board established under sec. 107 of 

WIOA. 

Migrant farmworker means a seasonal 

farmworker (as defined in this section) 

who travels to the job site so that the 

farmworker is unable to return to his/

her permanent residence within the 

same day. Full-time students traveling 

in organized groups rather than with 

their families are excluded. 

Migrant food processing worker see 

Migrant Farmworker. 

MSFW means a migrant farmworker 

or a seasonal farmworker. 

Occupational Information Network 

(O*NET) system means the online 

reference database which contains 

detailed descriptions of U.S. 

occupations, distinguishing 

characteristics, classification codes, and 

information on tasks, knowledge, skills, 

abilities, and work activities as well as 

information on interests, work styles, 

and work values. 

One-stop center means a one-stop 

delivery system described in sec. 

121(e)(2) of WIOA. 

One-stop delivery system means a 

one-stop delivery system described in 

sec. 121(e) of WIOA. 

One-stop partner means an entity 

described in sec. 121(b) of WIOA and 20 

CFR 678.400 that is participating in the 

operation of a one-stop delivery system. 

O*NET–SOC means the occupational 

codes and titles used in the O*NET 

system, based on and grounded in the 

Standard Occupational Classification 

(SOC), which are the titles and codes 

utilized by Federal statistical agencies to 

classify workers into occupational 

categories for the purpose of collecting, 

calculating, and disseminating data. The 

SOC system is issued by the Office of 

Management and Budget and the 

Department of Labor is authorized to 

develop additional detailed O*NET 

occupations within existing SOC 

categories. The Department uses 

O*NET–SOC titles and codes for the 

purposes of collecting descriptive 

occupational information and for State 

reporting of data on training, credential 

attainment, and placement in 

employment by occupation. 

Onsite Review means an appearance 

by the State monitor advocate and/or 

Federal staff at an employment service 

office to monitor the delivery of services 

and protections afforded by 

employment service regulations to 

MSFWs by the State agency and local 

offices. 

Order Holding Office means an 

employment service office that has 

accepted a clearance order from an 

employer seeking U.S.-based workers to 

perform farmwork on a less than yearround basis through the Agricultural 

Recruitment System. 

Outreach Contact means each MSFW 

that receives the presentation of 

information, offering of assistance, or 

follow-up activity from an outreach 

worker. 

Participant means a person who 

applies for or is receiving WagnerPeyser Act employment services. 

Placement means the hiring by a 

public or private employer of an 

individual referred by the employment 

service office for a job or an interview, 

provided that the employment office 

completed all of the following steps: 

(1) Prepared a job order form prior to 

referral, except in the case of a job 

development contact on behalf of a 

specific applicant; 

(2) Made prior arrangements with the 

employer for the referral of an 

individual or individuals; 

(3) Referred an individual who had 

not been specifically designated by the 

employer, except for referrals on 

agricultural job orders for a specific 

crew leader or worker; 

(4) Verified from a reliable source, 

preferably the employer, that the 

individual had entered on a job; and 

(5) Appropriately recorded the 

placement. 

Public housing means housing 

operated by or on behalf of any public 

agency. 

Regional Administrator (RA) means 

the chief DOL Employment and 

Training Administration (ETA) official 

in each Department regional office. 

Respondent means the employer or 

State agency (including a State agency 

official) who is alleged to have 

committed the violation described in a 

complaint. 

Seasonal farmworker means an 

individual who is employed, or was 

employed in the past 12 months, in 

farmwork (as described in this section) 

of a seasonal or other temporary nature 

and is not required to be absent 

overnight from his/her permanent place 

of residence. Non-migrant individuals 

who are full-time students are excluded. 

Labor is performed on a seasonal basis 

where, ordinarily, the employment 

pertains to or is of the kind exclusively 

performed at certain seasons or periods 

of the year and which, from its nature, 

may not be continuous or carried on 

throughout the year. A worker who 

moves from one seasonal activity to 

another, while employed in farmwork, 

is employed on a seasonal basis even 

though he/she may continue to be 

employed during a major portion of the 

year. A worker is employed on other 

temporary basis where he/she is 

employed for a limited time only or his/ 

her performance is contemplated for a 

particular piece of work, usually of 

short duration. Generally, employment 

which is contemplated to continue 

indefinitely is not temporary. 

Secretary means the Secretary of the 

U.S. Department of Labor or the 

Secretary’s designee. 

Significant MSFW one-stop centers 

are those designated annually by the 

Department and include those 

employment service offices where 

MSFWs account for 10 percent or more 

of annual participants in employment 

services and those local ES offices 

which the administrator determines 

should be included due to special 

circumstances such as an estimated 

large number of MSFWs in the service 

area. In no event may the number of 

significant MSFW one-stop centers be 

less than 100 centers on a nationwide 

basis. 

Significant MSFW States are those 

States designated annually by the 

Department and must include the 20 

States with the highest number of 

MSFW participants. 

Significant multilingual MSFW onestop centers are those designated 

annually by the Department and include 

those significant MSFW employment 

service offices where 10 percent or more 

of MSFW participants are estimated to 

require service provisions in a 

language(s) other than English unless 

the administrator determines other onestop centers also should be included 

due to special circumstances. 


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Solicitor means the chief legal officer 

of the U.S. Department of Labor or the 

Solicitor’s designee. 

Standard Metropolitan Statistical 

Area (SMSA) means a metropolitan area 

designated by the Bureau of Census 

which contains: 

(1) At least one city of 50,000 

inhabitants or more; or 

(2) Twin cities with a combined 

population of at least 50,000. 

State means any of the 50 States, the 

District of Columbia, Guam, Puerto 

Rico, and the Virgin Islands. 

State Administrator means the chief 

official of the State Workforce Agency 

(SWA). 

State agency or State Workforce 

Agency (SWA) means the State 

employment service agency designated 

under sec. 4 of the Wagner-Peyser Act. 

State hearing official means a State 

official designated to preside at State 

administrative hearings convened to 

resolve complaints involving ESregulations pursuant to subpart E of part 

658 of this chapter. 

State Workforce Development Board 

(State Board) means the entity within a 

State appointed by the Governor under 

sec. 101 of WIOA. 

Supply State(s) means a State that 

potentially has U.S.-based workers who 

may be recruited for referral through the 

Agricultural Recruitment System to the 

area of intended employment in a 

different State. 

Supportive services means services 

such as transportation, child care, 

dependent care, housing, needs-related 

payments, and others, that are necessary 

to enable an individual to participate in 

activities authorized under WIOA or the 

Wagner-Peyser Act. 

Training Services means services 

described in sec. 134(c)(3) of WIOA. 

Unemployment Insurance claimant 

means a person who files a claim for 

benefits under any State or Federal 

unemployment compensation law. 

United States Employment Service 

(USES) means the component of the 

Employment and Training 

Administration of the Department 

which was established under the 

Wagner-Peyser Act of 1933 to promote 

and develop a national system of public 

employment service offices. 

WIOA means the Workforce 

Innovation and Opportunity Act of 2014 

(codified at 29 U.S.C. 3901 et seq.). 

Workforce and Labor Market 

Information (WLMI) means that body of 

knowledge pertaining to the socioeconomic factors influencing the 

employment, training, and business 

decisions in national, State, sub-State, 

and local labor market areas. These 

factors, which affect labor demandsupply relationships, worker 

preparation, and educational program 

offerings, also define the content of the 

WLMI programs and system. WLMI 

includes, but is not limited to: 

(1) Employment and unemployment 

numbers and rates; 

(2) Population growth and decline, 

classified by age, sex, race, and other 

characteristics; 

(3) Short- and long-term industry and 

occupational employment projections; 

(4) Information on business 

employment dynamics, including the 

number and nature of business 

establishments, and share and location 

of industrial production; 

(5) Local employment dynamics, 

including business turnover rates; new 

hires, job separations, net job losses; 

(6) Job vacancy counts; 

(7) Job search information and 

employment data from the public labor 

exchange system; 

(8) Identification of high growth and 

high demand industries, occupations, 

and jobs; 

(9) Payroll, earnings, work hours, 

benefits, unionization, trade disputes, 

conditions of employment, and 

retirement; 

(10) Emerging occupations and 

evolving skill demands; 

(11) Business skill and hiring 

requirements; 

(12) Workforce characteristics, 

described by skills, experience, 

education, competencies, etc.; 

(13) Workforce available in 

geographic areas; 

(14) Regional and local economic 

development, including job creation 

through business start-ups and 

expansions; 

(15) Educational programs, training 

and apprenticeship opportunities; 

(16) Trends in industrial and 

occupational restructuring; 

(17) Shifts in consumer demands; 

(18) Data contained in governmental 

or administrative reporting including 

wage records as identified in 20 CFR 

652.301; 

(19) Labor market intelligence gained 

from interaction with businesses, 

industry or trade associations, education 

agencies, government entities, and the 

public; and 

(20) Other economic factors. 

Workforce and Labor Market 

Information System (WLMIS) means the 

system that collects, analyzes, 

interprets, and disseminates workforce 

characteristics and employment-related 

data, statistics, and information at 

national, State, and local labor market 

areas and makes that information 

available to the public, workforce 

development system, one-stop partner 

programs, and the education and 

economic development communities. 

Workforce Development Activity 

means an activity carried out through a 

workforce development program as 

defined in sec. 3 of WIOA. 

Working days or business days means 

those days that the order-holding 

employment service office is open for 

public business, for purposes of the 

Agricultural Recruitment System. 

Work test means activities designed to 

ensure that an individual whom a State 

determines to be eligible for 

unemployment insurance benefits is 

able to work, available for work, and 

actively seeking work in accordance 

with the State’s unemployment 

compensation law. 

■ 18. Revise part 652 to read as follows: 

PART 652—ESTABLISHMENT AND 

FUNCTIONING OF STATE 

EMPLOYMENT SERVICES 

Subpart A—Employment Service 

Operations 

Sec. 

652.1 Introduction. 

652.2 Scope and purpose of the 

employment service system. 

652.3 Public labor exchange services 

system. 

652.4 Allotment of funds and grant 

agreement. 

652.5 Services authorized. 

652.6 [Reserved]. 

652.7 [Reserved]. 

652.8 Administrative provisions. 

652.9 Labor disputes. 

Subpart B—Services for Veterans 

652.100 Services for veterans. 

Subpart C—Wagner-Peyser Act Services in 

a One-Stop Delivery System Environment 

652.200 What is the purpose of this 

subpart? 

652.201 What is the role of the State agency 

in the one-stop delivery system? 

652.202 May local Employment Service 

Offices exist outside of the one-stop 

service delivery system? 

652.203 Who is responsible for funds 

authorized under the Act in the 

workforce investment system? 

652.204 Must funds authorized under the 

Act (the Governor’s reserve) flow 

through the one-stop delivery system? 

652.205 May funds authorized under the 

Act be used to supplement funding for 

labor exchange programs authorized 

under separate legislation? 

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? 

652.207 How does a State meet the 

requirement for universal access to 

services provided under the Act? 

652.208 How are applicable career services 

related to the methods of service delivery 

described in this part? 


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652.209 What are the requirements under 

the Act for providing reemployment 

services and other activities to referred 

unemployment insurance claimants? 

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? 

652.211 What are State planning 

requirements under the Act? 

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? 

652.216 May the one-stop operator provide 

guidance to State merit staff employees 

in accordance with the Act? 

Subpart D—Workforce and Labor Market 

Information 

Sec. 

652.300 What role does the Secretary of 

Labor have concerning the Workforce 

and Labor Market Information System? 

652.301 What are wage records for purposes 

of the Wagner-Peyser Act? 

652.302 How do the Secretary of Labor’s 

responsibilities described in this part 

apply to State wage records? 

652.303 How do the requirements of part 

603 of this chapter apply to wage 

records? 

Authority: Wagner-Peyser Act sec. 15 as 

amended by Pub. L. 113–128 sec. 308, 29 

U.S.C. 491–2; Pub. L. 113–128 secs. 189, 503. 

Subpart A—Employment Service 

Operations 

§ 652.1 Introduction. 

These regulations implement the 

provisions of the Wagner-Peyser Act, 

known hereafter as the Act, as amended 

by the Workforce Innovation and 

Opportunity Act (WIOA), Public Law 

113–128. Congress intended that the 

States exercise broad authority in 

implementing provisions of the Act. 

§ 652.2 Scope and purpose of the 

employment service system. 

The basic purpose of the employment 

service system is to improve the 

functioning of the nation’s labor markets 

by bringing together individuals who 

are seeking employment and employers 

who are seeking workers. 

§ 652.3 Public labor exchange services 

system. 

At a minimum, each State must 

administer a labor exchange system 

which has the capacity: 

(a) To assist jobseekers in finding 

employment, including promoting their 

familiarity with the Department’s 

electronic tools; 

(b) To assist employers in filling jobs; 

(c) To facilitate the match between 

jobseekers and employers; 

(d) To participate in a system for 

clearing labor between the States, 

including the use of standardized 

classification systems issued by the 

Secretary, under sec. 15 of the Act; 

(e) To meet the work test 

requirements of the State 

unemployment compensation system; 

and 

(f) Provide labor exchange services as 

identified in § 678.430(a) of this chapter 

and sec. 134(c)(2)(A)(iv) of WIOA. 

§ 652.4 Allotment of funds and grant 

agreement. 

(a) Allotments. The Secretary must 

provide planning estimates in 

accordance with sec. 6(b)(5) of the Act. 

Within 30 days of receipt of planning 

estimates from the Secretary, the State 

must make public the sub-State resource 

distributions, and describe the process 

and schedule under which these 

resources will be issued, planned and 

committed. This notification must 

include a description of the procedures 

by which the public may review and 

comment on the sub-State distributions, 

including a process by which the State 

will resolve any complaints. 

(b) Grant agreement. To establish a 

continuing relationship under the Act, 

the Governor and the Secretary must 

sign a grant agreement, including a 

statement assuring that the State must 

comply with the Act and all applicable 

rules and regulations. Consistent with 

this agreement and sec. 6 of the Act, 

State allotments will be obligated 

through a notification of obligation. 

§ 652.5 Services authorized. 

The funds allotted to each State under 

sec. 6 of the Act must be expended 

consistent with an approved plan under 

20 CFR 676.100 through 676.135 and 

§ 652.211. At a minimum, each State 

must provide the minimum labor 

exchange elements listed at § 652.3. 

§ 652.6 [Reserved]. 

§ 652.7 [Reserved]. 

§ 652.8 Administrative provisions. 

(a) Administrative requirements. The 

Employment Security Manual is not 

applicable to funds appropriated under 

the Wagner-Peyser Act. Except as 

provided for in paragraph (f) of this 

section, administrative requirements 

and cost principles applicable to grants 

under this part 652 are as specified in 

2 CFR 200 and 2900. 

(b) Management systems, reporting 

and recordkeeping. (1) The State must 

ensure that financial systems provide 

fiscal control and accounting 

procedures sufficient to permit 

preparation of required reports, and the 

tracing of funds to a level of expenditure 

adequate to establish that funds have 

not been expended in violation of the 

restrictions on the use of such funds. 

(sec. 10(a)) 

(2) The financial management system 

and the program information system 

must provide Federally-required records 

and reports that are uniform in 

definition, accessible to authorized 

Federal and State staff, and verifiable for 

monitoring, reporting, audit and 

evaluation purposes. (sec. 10(c)) 

(c) Reports required. (1) Each State 

must make reports pursuant to 

instructions issued by the Secretary and 

in such format as the Secretary 

prescribes. 

(2) The Secretary is authorized to 

monitor and investigate pursuant to sec. 

10 of the Act. 

(d) Special administrative and cost 

provisions. (1) Neither the Department 

nor the State is a guarantor of the 

accuracy or truthfulness of information 

obtained from employers or applicants 

in the process of operating a labor 

exchange activity. 

(2) Prior approval authority, as 

described in various sections of 29 CFR 

part 97, Uniform Administrative 

Requirements for Grants and 

Cooperative Agreements to State and 

Local Governments, and Office of 

Management and Budget Circular A–87 

(Revised), is delegated to the State 

except that the Secretary reserves the 

right to require transfer of title on 

nonexpendable Automated Data 

Processing Equipment (ADPE), in 

accordance with provisions contained 

in 2 CFR 200 and 2900. The Secretary 

reserves the right to exercise prior 

approval authority in other areas, after 

providing advance notice to the State. 

(3) Application for financial 

assistance and modification 

requirements must be as specified under 

this part. 

(4) Cost of promotional and 

informational activities consistent with 

the provisions of the Act, describing 

services offered by employment security 

agencies, job openings, labor market 

information, and similar items are 

allowable. 

(5) Each State must retain basic 

documents for the minimum period 

specified below, consistent with 2 CFR 

200 and 2900: 

(i) Work application: 3 Years. 

(ii) Job order: 3 Years. 

(6) Payments from the State’s WagnerPeyser allotment made into a State’s 

account in the Unemployment Trust 

Fund for the purpose of reducing 

charges against Reed Act funds (sec. 

903(c) of the Social Security Act, as 

amended (42 U.S.C. 1103(c)) are 

allowable costs, provided that: 


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(i) The charges against Reed Act funds 

were for amounts appropriated, 

obligated, and expended for the 

acquisition of automatic data processing 

installations or for the acquisition or 

major renovation of State-owned office 

building; and 

(ii) With respect to each acquisition of 

improvement of property pursuant to 

paragraph (d)(6)(i) of this section, the 

payments are accounted for in the 

State’s records as credits against 

equivalent amounts of Reed Act funds 

used for administrative expenditures. 

(e) Disclosure of information. (1) The 

State must assure the proper disclosure 

of information pursuant to sec. 3(b) of 

the Act. 

(2) The information specified in sec. 

3(b) and other sections of the Act, must 

also be provided to officers or any 

employee of the Federal government or 

of a State government lawfully charged 

with administration of unemployment 

compensation laws, employment service 

activities under the Act or other related 

legislation, but only for purposes 

reasonably necessary for the proper 

administration of such laws. 

(f) Audits. (1) The State must follow 

the audit requirements found at 20 CFR 

683.210, except that funds expended 

pursuant to sec. 7(b) of the Act must be 

audited annually. 

(2) The Comptroller General and the 

Inspector General of the Department 

have the authority to conduct audits, 

evaluations or investigations necessary 

to meet their responsibilities under sec. 

9(b)(1) and 9(b)(2), respectively, of the 

Act. 

(3) The audit, conducted pursuant to 

paragraph (f)(1) or (2) of this section, 

must be submitted to the Secretary who 

will follow the resolution process 

specified in 20 CFR 667.420 through 

667.440. 

(g) Sanctions for violation of the Act. 

(1) The Secretary may impose 

appropriate sanctions and corrective 

actions for violation of the Act, 

regulations, or State Plan, including the 

following: 

(i) Requiring repayment, for debts 

owed the government under the grant, 

from non-Federal funds; 

(ii) Offsetting debts arising from the 

misexpenditure of grant funds, against 

amounts to which the State is or may be 

entitled under the Act, provided that 

debts arising from gross negligence or 

willful misuse of funds may not be 

offset against future grants. When the 

Secretary reduces amounts allotted to 

the State by the amount of the 

misexpenditure, the debt must be fully 

satisfied; 

(iii) Determining the amount of 

Federal cash maintained by the State or 

a subrecipient in excess of reasonable 

grant needs, establishing a debt for the 

amount of such excessive cash, and 

charging interest on that debt; 

(iv) Imposing other appropriate 

sanctions or corrective actions, except 

where specifically prohibited by the Act 

or regulations. 

(2) To impose a sanction or corrective 

action, the Secretary must utilize the 

initial and final determination 

procedures outlined in (f)(3) of this 

section. 

(h) Other violations. Violations or 

alleged violations of the Act, 

regulations, or grant terms and 

conditions except those pertaining to 

audits or discrimination must be 

determined and handled in accordance 

with 20 CFR part 658, subpart H. 

(i) Fraud and abuse. Any persons 

having knowledge of fraud, criminal 

activity or other abuse must report such 

information directly and immediately to 

the Secretary. Similarly, all complaints 

involving such matters should also be 

reported to the Secretary directly and 

immediately. 

(j) Nondiscrimination and affirmative 

action requirements. States must: 

(1) Assure that no individual be 

excluded from participation in, denied 

the benefits of, subjected to 

discrimination under, or denied 

employment in the administration or in 

connection with any services or 

activities authorized under the Act in 

violation of any applicable 

nondiscrimination law, including laws 

prohibiting discrimination on the basis 

of age, race, sex, color, religion, national 

origin, disability, political affiliation or 

belief. All complaints alleging 

discrimination must be filed and 

processed according to the procedures 

in the applicable DOL 

nondiscrimination regulations. 

(2) Assure that discriminatory job 

orders will not be accepted, except 

where the stated requirement is a bona 

fide occupational qualification (BFOQ). 

See, generally, 42 U.S.C. 2000(e)–2(e), 

29 CFR parts 1604, 1606, 1625. 

(3) Assure that employers’ valid 

affirmative action requests will be 

accepted and a significant number of 

qualified applicants from the target 

group(s) will be included to enable the 

employer to meet its affirmative action 

obligations. 

(4) Assure that employment testing 

programs will comply with 41 CFR part 

60–3 and 29 CFR part 32 and 29 CFR 

1627.3(b)(iv). 

(5) Nondiscrimination and equal 

opportunity requirements and 

procedures, including complaint 

processing and compliance reviews, 

will be governed by the applicable DOL 

nondiscrimination regulations. 

§ 652.9 Labor disputes. 

(a) State agencies may not make a job 

referral on job orders which will aid 

directly or indirectly in the filling of a 

job opening which is vacant because the 

former occupant is on strike, or is being 

locked out in the course of a labor 

dispute, or the filling of which is 

otherwise an issue in a labor dispute 

involving a work stoppage. 

(b) Written notification must be 

provided to all applicants referred to 

jobs not at issue in the labor dispute that 

a labor dispute exists in the employing 

establishment and that the job to which 

the applicant is being referred is not at 

issue in the dispute. 

(c) When a job order is received from 

an employer reportedly involved in a 

labor dispute involving a work 

stoppage, State agencies must: 

(1) Verify the existence of the labor 

dispute and determine its significance 

with respect to each vacancy involved 

in the job order; and 

(2) Notify all potentially affected staff 

concerning the labor dispute. 

(d) State agencies must resume full 

referral services when they have been 

notified of, and verified with the 

employer and workers’ 

representative(s), that the labor dispute 

has been terminated. 

(e) State agencies must notify the 

regional office in writing of the 

existence of labor disputes which: 

(1) Result in a work stoppage at an 

establishment involving a significant 

number of workers; or 

(2) Involve multi-establishment 

employers with other establishments 

outside the reporting State. 

Subpart B—Services for Veterans 

§ 652.100 Services for veterans. 

Veterans receive priority of service for 

all DOL-funded employment and 

training programs as described in 20 

CFR part 1010. The Department’s 

Veterans’ Employment and Training 

Service (VETS) administers the Jobs for 

Veterans State Grants (JVSG) program 

under chapter 41 of title 38 of the U.S. 

Code and other activities and training 

programs which provide services to 

specific populations of eligible veterans. 

VETS’ general regulations are located in 

parts 1001, 1002, and 1010 of this title. 


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Subpart C—Wagner-Peyser Act 

Services in a One-Stop Delivery 

System Environment 

§ 652.200 What is the purpose of this 

subpart? 

(a) This subpart provides guidance to 

States to implement the services 

provided under the Act, as amended by 

WIOA, in a one-stop delivery system 

environment. 

(b) Except as otherwise provided, the 

definitions contained in 20 CFR part 

651 and sec. 2 of the Act apply to this 

subpart. 

§ 652.201 What is the role of the State 

agency in the one-stop delivery system? 

(a) The role of the State agency in the 

one-stop delivery system is to ensure 

the delivery of services authorized 

under sec. 7(a) of the Act. The State 

agency is a required one-stop partner in 

each local one-stop delivery system and 

is subject to the provisions relating to 

such partners that are described at 20 

CFR part 678. 

(b) Consistent with those provisions, 

the State agency must: 

(1) Participate in the one-stop delivery 

system in accordance with sec. 7(e) of 

the Act; 

(2) Be represented on the Workforce 

Development Boards that oversee the 

local and State one-stop delivery system 

and be a party to the Memorandum of 

Understanding, described at 20 CFR 

678.500, addressing the operation of the 

one-stop delivery system; and 

(3) Provide these services as part of 

the one-stop delivery system. 

§ 652.202 May local Employment Service 

Offices exist outside of the one-stop service 

delivery system? 

No. Local Employment Service 

Offices may not exist outside of the onestop service delivery system. A State 

must collocate employment services, as 

provided in 20 CFR 678.310–678.315. 

§ 652.203 Who is responsible for funds 

authorized under the Act in the workforce 

investment system? 

The State agency retains 

responsibility for all funds authorized 

under the Act, including those funds 

authorized under sec. 7(a) required for 

providing the services and activities 

delivered as part of the one-stop 

delivery system. 

§ 652.204 Must funds authorized under the 

Act (the Governor’s reserve) flow through 

the one-stop delivery system? 

No, these funds are reserved for use 

by the Governor for performance 

incentives, supporting exemplary 

models of service delivery, and services 

for groups with special needs, as 

described in sec. 7(b) of the Act. 

However, these funds may flow through 

the one-stop delivery system. 

§ 652.205 May funds authorized under the 

Act be used to supplement funding for 

labor exchange programs authorized under 

separate legislation? 

(a) Section 7(c) of the Act enables 

States to use funds authorized under 

sec. 7(a) or 7(b) of the Act to supplement 

funding of any workforce activity 

carried out under WIOA. 

(b) Funds authorized under the Act 

may be used under sec. 7(c) to provide 

additional funding to other activities 

authorized under WIOA if: 

(1) The activity meets the 

requirements of the Act, and its own 

requirements; 

(2) The activity serves the same 

individuals as are served under the Act; 

(3) The activity provides services that 

are coordinated with services under the 

Act; and 

(4) The funds supplement, rather than 

supplant, funds provided from nonFederal sources. 

§ 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? 

Yes, funds authorized under sec. 7(a) 

of the Act must be used to provide basic 

career services as identified in 

§ 678.430(a) of this chapter and secs. 

134(c)(2)(A)(i)–(xi) of WIOA, and may 

be used to provide individualized career 

services as identified in § 678.430(b) of 

this chapter and sec. 134(c)(2)(A)(xii) of 

WIOA. Funds authorized under sec. 7(b) 

of the Act may be used to provide career 

services. Career services must be 

provided consistent with the 

requirements of the Wagner-Peyser Act. 

§ 652.207 How does a State meet the 

requirement for universal access to 

services provided under the Act? 

(a) A State has discretion in how it 

meets the requirement for universal 

access to services provided under the 

Act. In exercising this discretion, a State 

must meet the Act’s requirements. 

(b) These requirements are: 

(1) Labor exchange services must be 

available to all employers and job 

seekers, including unemployment 

insurance (UI) claimants, veterans, 

migrant and seasonal farmworkers, and 

individuals with disabilities; 

(2) The State must have the capacity 

to deliver labor exchange services to 

employers and job seekers, as described 

in the Act, on a statewide basis through: 

(i) Self-service, including virtual 

services; 

(ii) Facilitated self-help service; and 

(iii) Staff-assisted service; 

(3) In each local workforce investment 

area, in at least one comprehensive 

physical center, staff funded under the 

Act must provide labor exchange 

services (including staff-assisted labor 

exchange services) and career services 

as described in § 652.206; and 

(4) Those labor exchange services 

provided under the Act in a local 

workforce investment area must be 

described in the Memorandum of 

Understanding (MOU) described in 

§ 678.500. 

§ 652.208 How are applicable career 

services related to the methods of service 

delivery described in in this part? 

Career services may be delivered 

through any of the applicable three 

methods of service delivery described in 

§ 652.207(b)(2). These methods are: 

(a) Self-service, including virtual 

services; 

(b) Facilitated self-help service; and 

(c) Staff-assisted service. 

§ 652.209 What are the requirements under 

the Act for providing reemployment 

services and other activities to referred 

unemployment insurance claimants? 

(a) In accordance with sec. 3(c)(3) of 

the Act, the State agency, as part of the 

one-stop delivery system, must provide 

reemployment services to UI claimants 

for whom such services are required as 

a condition for receipt of UI benefits. 

Services must be appropriate to the 

needs of UI claimants who are referred 

to reemployment services under any 

Federal or State UI law. 

(b) The State agency must also 

provide other activities, including: 

(1) Coordination of labor exchange 

services with the provision of UI 

eligibility services as required by sec. 

5(b)(2) of the Act; 

(2) Administration of the work test, 

conducting eligibility assessments, and 

registering UI claimants for employment 

services in accordance with a State’s 

unemployment compensation law, and 

provision of job finding and placement 

services as required by sec. 3(c)(3) and 

described in sec. 7(a)(3)(F) of the Act; 

(3) Referring UI claimants to, and 

providing application assistance for, 

training and education resources and 

programs, including Federal Pell grants 

and other student assistance under title 

IV of the Higher Education Act, the 

Montgomery GI Bill, Post-9/11 GI Bill, 

and other Veterans Educational 

Assistance, training provided for youth, 

and adult and dislocated workers, as 

well as other employment training 

programs under WIOA, and for 

Vocational Rehabilitation Services 

under title I of the Rehabilitation Act of 

1973. 


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§ 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? 

(a) State UI law or rules establish the 

requirements under which UI claimants 

must register and search for work in 

order to fulfill the UI work test 

requirements. 

(b) Staff funded under the Act must 

assure that: 

(1) UI claimants receive the full range 

of labor exchange services available 

under the Act that are necessary and 

appropriate to facilitate their earliest 

return to work, including career services 

specified in § 652.206 and listed in sec. 

134(c)(2)A) of WIOA; 

(2) UI claimants requiring assistance 

in seeking work receive the necessary 

guidance and counseling to ensure they 

make a meaningful and realistic work 

search; and 

(3) ES staff will provide UI program 

staff with information about UI 

claimants’ ability or availability for 

work, or the suitability of work offered 

to them. 

§ 652.211 What are State planning 

requirements under the Act? 

The Employment Service is a core 

program identified in WIOA and must 

be included as part of each State’s 

Unified or Combined State Plans. See 

§§ 676.105 through 676.125 for planning 

requirements for the core programs. 

§ 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 (http://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. 

§ 652.216 May the one-stop operator 

provide guidance to State merit staff 

employees in accordance with the Act? 

Yes, the one-stop delivery system 

envisions a partnership in which 

Wagner-Peyser Act labor exchange 

services are coordinated with other 

activities provided by other partners in 

a one-stop setting. As part of the local 

Memorandum of Understanding 

described in § 678.500, the State agency, 

as a one-stop partner, may agree to have 

staff receive guidance from the one-stop 

operator regarding the provision of labor 

exchange services. Personnel matters, 

including compensation, personnel 

actions, terms and conditions of 

employment, performance appraisals, 

and accountability of State merit staff 

employees funded under the Act, 

remain under the authority of the State 

agency. The guidance given to 

employees must be consistent with the 

provisions of the Act, the local 

Memorandum of Understanding, and 

applicable collective bargaining 

agreements. 

Subpart D—Workforce and Labor 

Market Information 

§ 652.300 What role does the Secretary of 

Labor have concerning the Workforce and 

Labor Market Information System? 

(a) The Secretary of Labor must 

oversee the development, maintenance, 

and continuous improvement of the 

workforce and labor market information 

system defined in Wagner-Peyser Act 

sec. 15 and 20 CFR 651.10. 

(b) With respect to data collection, 

analysis, and dissemination of 

workforce and labor market information 

as defined in Wagner-Peyser Act sec. 15 

and 20 CFR 651.10, the Secretary must: 

(1) Assign responsibilities within the 

Department of Labor for elements of the 

workforce and labor market information 

system described in sec. 15(a) of the 

Wagner-Peyser Act to ensure that the 

statistical and administrative data 

collected are consistent with 

appropriate Bureau of Labor Statistics 

standards and definitions, and that the 

information is accessible and 

understandable to users of such data; 

(2) Actively seek the cooperation of 

heads of other Federal agencies to 

establish and maintain mechanisms for 

ensuring complementarity and nonduplication in the development and 

operation of statistical and 

administrative data collection activities; 

(3) Solicit, receive, and evaluate the 

recommendations of the Workforce 

Information Advisory Council 

established by Wagner-Peyser Act sec. 

15(d); 

(4) Eliminate gaps and duplication in 

statistical undertakings; 

(5) Through the Bureau of Labor 

Statistics and the Employment and 

Training Administration, and in 

collaboration with States, develop and 

maintain the elements of the workforce 

and labor market information system, 

including the development of consistent 

procedures and definitions for use by 

States in collecting and reporting the 

workforce and labor market information 

data described in Wagner-Peyser Act 

sec. 15 and defined in 20 CFR 651.10; 

and 

(6) Establish procedures for the 

system to ensure that the data and 

information are timely, and paperwork 

and reporting for the system are reduced 

to a minimum. 

§ 652.301 What are wage records for 

purposes of the Wagner-Peyser Act? 

Wage records, for purposes of the 

Wagner-Peyser Act, are records that 

contain ‘‘wage information’’ as defined 

in 20 CFR 603.2(k). In this part, ‘‘State 

wage records’’ refers to wage records 

produced or maintained by a State. 

§ 652.302 How do the Secretary of Labor’s 

responsibilities described in this part apply 

to State wage records? 

(a) State wage records, as defined in 

§ 652.301, are source data used in the 

development of a significant portion of 

the workforce and labor market 

information defined in § 651.10. 

(b) Based on the Secretary of Labor’s 

responsibilities described in WagnerPeyser Act sec. 15 and 20 CFR 652.300, 

the Secretary of Labor will, in 

consultation with the Workforce 

Information Advisory Council described 

in Wagner-Peyser Act sec. 15(d), Federal 

agencies, and States, develop: 

(1) Standardized definitions for the 

data elements comprising ‘‘wage 

records’’ as defined in § 652.301; and 

(2) Improved processes and systems 

for the collection and reporting of wage 

records. 

(c) In carrying out these activities, the 

Secretary may also consult with other 

stakeholders, such as employers. 

§ 652.303 How do the requirements of part 

603 of this chapter apply to wage records? 

All information collected by the State 

in wage records referred to in § 652.302 

is subject to the confidentiality 

regulations at 20 CFR part 603. 

■ 19. Revise part 653 to read as follows: 


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PART 653—SERVICES OF THE 

EMPLOYMENT SERVICE SYSTEM 

Subpart A—[Reserved] 

Subpart B—Services for Migrant and 

Seasonal Farmworkers (MSFWs) 

Sec. 

653.100 Purpose and scope of subpart. 

653.101 Provision of services to migrant 

and seasonal farmworkers. 

653.102 Job information. 

653.103 Process for migrant and seasonal 

farmworkers to participate in workforce 

development activities. 

653.107 Outreach and Agricultural 

Outreach Plan. 

653.108 State Workforce Agency and State 

monitor advocate responsibilities. 

653.109 Data collection and performance 

accountability measures. 

653.110 Disclosure of data. 

653.111 State agency staffing requirements. 

Subpart C–E—[Reserved] 

Subpart F—Agricultural Recruitment 

System for U.S. Farmworkers (ARS) 

653.500 Purpose and scope of subpart. 

653.501 Requirements for processing 

clearance orders. 

653.502 Conditional access to the 

agricultural recruitment system. 

653.503 Field checks. 

Authority: Pub. L. 113–128 secs. 167, 189, 

503; Wagner-Peyser Act, as amended by Pub. 

L. 113–128 secs. 302–308, 29 U.S.C. 49 et 

seq.; 38 U.S.C. part III, chapters 41 and 42. 

Subpart A—[Reserved] 

Subpart B—Services for Migrant and 

Seasonal Farmworkers (MSFWs) 

§ 653.100 Purpose and scope of subpart. 

(a) This subpart sets forth the 

principal regulations of the United 

States Employment Service (USES) 

concerning the provision of services for 

MSFWs consistent with the requirement 

that all services of the workforce 

development system be available to all 

job seekers in an equitable fashion. This 

includes ensuring that MSFWs have 

access to these services in a way that 

meets their unique needs. MSFWs must 

receive services on a basis which is 

qualitatively equivalent and 

quantitatively proportionate to services 

provided to non-MSFWs. 

(b) This subpart contains 

requirements that State agencies 

establish a system to monitor their own 

compliance with USES regulations 

governing services to MSFWs. 

(c) Special services to ensure that 

MSFWs receive the full range of 

employment related services are 

established under this subpart. 

§ 653.101 Provision of services to migrant 

and seasonal farmworkers. 

Each employment service office must 

offer MSFWs the full range of career and 

supportive services, benefits and 

protections, and job and training referral 

services as are provided to non-MSFWs. 

In providing such services, the 

employment service offices must 

consider and be sensitive to the 

preferences, needs, and skills of 

individual MSFWs and the availability 

of job and training opportunities. 

§ 653.102 Job information. 

All State agencies must make job 

order information conspicuous and 

available to MSFWs by all reasonable 

means. Such information must, at 

minimum, be available through internet 

labor exchange systems and through the 

one-stop centers. Employment service 

offices must provide adequate staff 

assistance to MSFWs to access job order 

information easily and efficiently. In 

designated significant MSFW 

multilingual offices, such assistance 

must be provided to MSFWs in their 

native language, whenever requested or 

necessary. 

§ 653.103 Process for migrant and 

seasonal farmworkers to participate in 

workforce development activities. 

(a) Each employment service office 

must determine whether or not 

participants are MSFWs as defined at 

§ 651.10 of this chapter. 

(b) All State Workforce Agencies 

(SWAs) will ensure that MSFWs with 

limited English proficiency (LEP) 

receive, free of charge, the language 

assistance necessary to afford them 

meaningful access to the programs, 

services, and information offered by the 

one-stop centers. 

(c) Employment service office staff 

members must provide MSFWs a list of 

available career and supportive services 

in their native language. 

(d) Employment service staff must 

refer and/or register MSFWs for 

services, as appropriate, if the MSFW is 

interested in obtaining such services. 

§ 653.107 Outreach and Agricultural 

Outreach Plan. 

(a) State agency outreach 

responsibilities. (1) Each State agency 

must employ an adequate number of 

outreach workers to conduct MSFW 

outreach in their service areas. SWA 

Administrators must ensure that State 

monitor advocates and outreach workers 

coordinate their outreach efforts with 

WIOA title I sec. 167 grantees as well as 

with public and private community 

service agencies and MSFW groups. 

(2) As part of their outreach, States 

agencies: 

(i) Should communicate the full range 

of workforce development services to 

MSFWs. 

(ii) Should, in supply States, conduct 

thorough outreach efforts with extensive 

follow-up activities . 

(3) For purposes of hiring and 

assigning staff to conduct outreach 

duties, and to maintain compliance with 

State agencies’ Affirmative Action 

programs, State agencies must seek, 

through merit system procedures, 

qualified candidates: 

(i) Who are from MSFW backgrounds; 

(ii) Who speak a language common 

among MSFWs in the State; and 

(4) The 20 States with the highest 

estimated year-round MSFW activity, as 

identified in guidance issued by the 

Secretary, must assign, in accordance 

with State merit staff requirements, fulltime, year-round staff to conduct 

outreach duties. The remainder of the 

States must hire year-round part-time 

outreach staff and, during periods of the 

highest MSFW activity must hire fulltime outreach staff. All outreach staff 

must be multilingual if warranted by the 

characteristics of the MSFW population 

in the State, and must spend a majority 

of their time in the field. 

(5) The State agency must publicize 

the availability of employment services 

through such means as newspaper and 

electronic media publicity. Contacts 

with public and private community 

agencies, employers and/or employer 

organizations, and MSFW groups also 

must be utilized to facilitate the widest 

possible distribution of information 

concerning employment services. 

(b) Outreach worker’s responsibilities. 

Outreach workers must locate and 

contact MSFWs who are not being 

reached by the normal intake activities 

conducted by the employment service 

offices. Outreach worker’s 

responsibilities include: 

(1) Explaining to MSFWs at their 

working, living or gathering areas 

(including day-haul sites), by means of 

written and oral presentations either 

spontaneous or recorded, in a language 

readily understood by them, the 

following; 

(i) The services available at the local 

one-stop center (which includes the 

availability of referrals to training, 

supportive services, and career services, 

as well as specific employment 

opportunities), and other related 

services; 

(ii) Information on the employment 

service complaint system; 

(iii) Information on the other 

organizations serving MSFWs in the 

area; and 

(iv) A basic summary of farmworker 

rights, including their rights with 

respect to the terms and conditions of 

employment; 


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(2) Outreach workers may not enter an 

employer’s property or work area to 

perform outreach duties described in 

this section without permission of the 

employer, owner, or farm labor 

contractor, unless otherwise authorized 

to enter by law. Outreach workers may 

not enter workers’ living areas without 

the permission of the workers, and must 

comply with appropriate State laws 

regarding access. 

(3) After making the presentation, 

outreach workers must urge the MSFWs 

to go to the local one-stop center to 

obtain the full range of employment and 

training services. 

(4) If an MSFW cannot or does not 

wish to visit the local one-stop center, 

the outreach worker must offer to 

provide on-site the following: 

(i) Assistance in the preparation of 

applications for employment services; 

(ii) Assistance in obtaining referral(s) 

to current and future employment 

opportunities; 

(iii) Assistance in the preparation of 

either employment service or 

employment-related law complaints; 

(iv) Referral of complaints to the 

employment service office complaint 

specialist or employment service officer 

manager; 

(v) Referral to supportive services 

and/or career services in which the 

individual or a family member may be 

interested; and 

(vi) As needed, assistance in making 

appointments and arranging 

transportation for individual MSFW(s) 

or members of his/her family to and 

from local one-stop centers or other 

appropriate agencies. 

(5) Outreach workers must make 

follow-up contacts as necessary and 

appropriate to provide the assistance 

specified in paragraphs (b)(1) through 

(b)(4) of this section. 

(6) Outreach workers must be alert to 

observe the working and living 

conditions of MSFWs and, upon 

observation or upon receipt of 

information regarding a suspected 

violation of Federal or State 

employment-related law, document and 

refer information to the employment 

service office manager for processing in 

accordance with § 658.411 of this 

chapter. Additionally, if an outreach 

worker observes or receives information 

about apparent violations (as described 

in 20 CFR 658.419), the outreach worker 

must document and refer the 

information to the appropriate local 

employment service office manager. 

(7) Outreach workers must be trained 

in local office procedures and in the 

services, benefits, and protections 

afforded MSFWs by the employment 

service system, including training on 

protecting farmworkers against sexual 

harassment. They must also be trained 

in the procedure for informal resolution 

of complaints. The program for such 

training must be formulated by the State 

Administrator, pursuant to uniform 

guidelines developed by ETA; the State 

monitor advocate must be given an 

opportunity to review and comment on 

the State’s program. 

(8) Outreach workers must maintain 

complete records of their contacts with 

MSFWs and the services they perform. 

These records must include a daily log, 

a copy of which must be sent monthly 

to the employment service office 

manager and maintained on file for at 

least 2 years. These records must 

include the number of contacts, the 

names of contacts (if available), and the 

services provided (e.g., whether a 

complaint was received, whether a 

request for career services was received, 

and whether a referral was made). 

Outreach workers also must maintain 

records of each possible violation or 

complaint of which they have 

knowledge, and their actions in 

ascertaining the facts and referring the 

matters as provided herein. These 

records must include a description of 

the circumstances and names of any 

employers who have refused outreach 

workers access to MSFWs pursuant to 

§ 653.107(b)(2). 

(9) Outreach workers must not engage 

in political, unionization or antiunionization activities during the 

performance of their duties. 

(10) Outreach workers must be 

provided with, carry and display, upon 

request, identification cards or other 

material identifying them as employees 

of the State agency. 

(c) Employment service office 

outreach responsibilities. Each 

employment service office manager 

must file with the State monitor 

advocate a monthly summary report of 

outreach efforts. These reports must 

summarize information collected, 

pursuant to paragraph (b)(8) of this 

section. The employment service office 

manager and/or other appropriate State 

office staff members must assess the 

performance of outreach workers by 

examining the overall quality and 

productivity of their work, including the 

services provided and the methods and 

tools used to offer services. Performance 

must not be judged solely by the 

number of contacts made by the 

outreach worker. The monthly reports 

and daily outreach logs must be made 

available to the State monitor advocate 

and Federal on-site review teams. 

(d) State Agricultural Outreach Plan 

(AOP). (1) Each State agency must 

develop an AOP every 4 years as part of 

the Unified or Combined State Plan 

required under sec. 102 or 103 of WIOA. 

(2) The AOP must: 

(i) Provide an assessment of the 

unique needs of MSFWs in the area 

based on past and projected agricultural 

and MSFW activity in the State; 

(ii) Provide an assessment of available 

resources for outreach; 

(iii) Describe the State agency’s 

proposed outreach activities including 

strategies on how to contact MSFWs 

who are not being reached by the 

normal intake activities conducted by 

the employment service offices; 

(iv) Describe the activities planned for 

providing the full range of employment 

and training services to the agricultural 

community, both MSFWs and 

agricultural employers, through the onestop centers. 

(v) Provide an assurance that the State 

agency is complying with the 

requirements under § 653.111 if the 

State has significant MSFW one-stop 

centers. 

(3) The AOP must be submitted in 

accordance with the regulations at 20 

CFR 653.107(d) and planning guidance 

issued by the Department. 

(4) The Annual Summaries required 

at § 653.108(s) must update annually the 

Department on the State agency’s 

progress toward meetings its goals set 

forth in the AOP. 

§ 653.108 State Workforce Agency and 

State monitor advocate responsibilities. 

(a) State Administrators must assure 

that their State agencies monitor their 

own compliance with ES regulations in 

serving MSFWs on an ongoing basis. 

The State Administrator has overall 

responsibility for State agency selfmonitoring. 

(b) The State Administrator must 

appoint a State monitor advocate. The 

State Administrator must inform 

farmworker organizations and other 

organizations with expertise concerning 

MSFWs of the opening and encourage 

them to refer qualified applicants to 

apply through the State merit system 

prior to appointing a State monitor 

advocate. Among qualified candidates 

determined through State merit system 

procedures, the State agencies must seek 

persons: 

(1) Who are from MSFW backgrounds; 

and/or 

(2) Who speak Spanish or other 

languages of a significant proportion of 

the State MSFW population; and/or 

(3) Who have substantial work 

experience in farmworker activities. 

(c) The State monitor advocate must 

have direct, personal access, when 

necessary, to the State Administrator. 

The State monitor advocate must have 


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status and compensation as approved by 

the civil service classification system 

and be comparable to other State 

positions assigned similar levels of 

tasks, complexity, and responsibility. 

(d) The State monitor advocates must 

be assigned staff necessary to fulfill 

effectively all of their duties as set forth 

in this subpart. The number of staff 

positions must be determined by 

reference to the number of MSFWs in 

the State, as measured at the time of the 

peak MSFW population, and the need 

for monitoring activity in the State. The 

State monitor advocates must devote 

full-time to monitor advocate functions. 

Any State that proposes less than fulltime dedication must demonstrate to its 

Regional Administrator that the State 

monitor advocate function can be 

effectively performed with part-time 

staffing. 

(e) All State monitor advocates and 

their staff must attend, within the first 

3 months of their tenure, a training 

session conducted by the regional 

monitor advocate. They must also 

attend whatever additional training 

sessions are required by the regional or 

national monitor advocate. 

(f) The State monitor advocate must 

provide any relevant documentation 

requested from the State agency by the 

regional monitor advocate. 

(g) The State monitor advocate must: 

(1) Conduct an ongoing review of the 

delivery of services and protections 

afforded by employment service 

regulations to MSFWs by the State 

agency and local employment service 

offices (including progress made in 

achieving affirmative action staffing 

goals). The State monitor advocate, 

without delay, must advise the State 

agency and local offices of problems, 

deficiencies, or improper practices in 

the delivery of services and protections 

afforded by these regulations and may 

request a corrective action plan to 

address these deficiencies. The State 

monitor advocate must advise the State 

agency on means to improve the 

delivery of services. 

(2) Participate in on-site reviews on a 

regular basis, using the following 

procedures: 

(i) Before beginning an onsite review, 

the State monitor advocate and/or 

review staff must study: 

(A) Program performance data; 

(B) Reports of previous reviews; 

(C) Corrective action plans developed 

as a result of previous reviews; 

(D) Complaint logs; and 

(E) Complaints elevated from the 

office or concerning the office. 

(ii) Ensure that the onsite review 

format, developed by ETA, is used as a 

guideline for onsite reviews. 

(iii) Upon completion of an onsite 

monitoring review, the State monitor 

advocate must hold one or more wrapup sessions with the employment 

service office manager and staff to 

discuss any findings and offer initial 

recommendations and appropriate 

technical assistance. 

(iv) After each review the State 

monitor advocate must conduct an indepth analysis of the review data. The 

conclusions and recommendations of 

the State monitor advocate must be put 

in writing, and must be sent to the State 

Administrator, to the official of the State 

agency with line authority over the 

employment service office, and other 

appropriate State agency officials. 

(v) If the review results in any 

findings of noncompliance with the 

regulations under this chapter, the 

employment service office manager 

must develop and propose a written 

corrective action plan. The plan must be 

approved or revised by appropriate 

superior officials and the State monitor 

advocate. The plan must include actions 

required to correct or to take major steps 

to correct any compliance issues within 

30 days, and if the plan allows for more 

than 30 days for full compliance, the 

length of, and the reasons for, the 

extended period must be specifically 

stated. State agencies are responsible for 

assuring and documenting that the 

employment service office is in 

compliance within the time period 

designated in the plan. 

(vi) State agencies must submit to the 

appropriate ETA regional office copies 

of the onsite review reports and 

corrective action plans for employment 

service offices. 

(vii) The State monitor advocate may 

recommend that the review described in 

paragraph (g)(2) of this section be 

delegated to a responsible, professional 

member of the administrative staff of the 

State agency, if and when the State 

Administrator finds such delegation 

necessary. In such event, the State 

monitor advocate is responsible for and 

must approve the written report of the 

review. 

(3) Assure that all significant MSFW 

one-stop centers not reviewed onsite by 

Federal staff, are reviewed at least once 

per year by State staff, and that, if 

necessary, those employment service 

offices in which significant problems 

are revealed by required reports, 

management information, the 

employment service complaint system, 

or other means are reviewed as soon as 

possible. 

(4) Review and approve the State 

agency’s Agricultural Outreach Plan 

(AOP). 

(5) On a random basis, review 

outreach workers’ daily logs and other 

reports including those showing or 

reflecting the workers’ activities. 

(6) Write and submit annual 

summaries to the State Administrator 

with a copy to the Regional 

Administrator as described in paragraph 

(s) of this section. 

(h) The State monitor advocate must 

participate in Federal reviews 

conducted pursuant to 20 CFR part 658 

subpart G. 

(i) At the discretion of the State 

Administrator, the State monitor 

advocate may be assigned the 

responsibility as the complaint 

specialist. The State monitor advocate 

must participate in and monitor the 

performance of the complaint system, as 

set forth at 20 CFR 658.400 et seq. The 

State monitor advocate must review the 

employment service office managers’ 

informal resolution of complaints 

relating to MSFWs and must ensure that 

the local employment service office 

manager transmits copies of the logs of 

all MSFW complaints pursuant to 20 

CFR 658 subpart E to the State agency. 

(j) The State monitor advocate must 

serve as an advocate to improve services 

for MSFWs. 

(k) The State monitor advocate must 

establish an ongoing liaison with WIOA 

title I sec. 167 National Farmworker Jobs 

Program (NFJP) grantees and other 

organizations serving farmworkers, 

employers, and employer organizations 

in the State. 

(l) The State monitor advocate must 

meet (either in person or by alternative 

means), at minimum, quarterly, with 

representatives of the organizations 

pursuant to paragraph (k) of this section, 

to receive complaints, assist in referrals 

of alleged violations to enforcement 

agencies, receive input on improving 

coordination with employment service 

offices or improving the coordination of 

services to MSFWs. To foster such 

collaboration, a Memorandum of 

Understanding (MOU) (or multiple 

MOUs) must be established between the 

State monitor advocate and the different 

organizations. 

(m) The State monitor advocate must 

conduct frequent field visits to the 

working and living areas of MSFWs, and 

must discuss employment services and 

other employment-related programs 

with MSFWs, crew leaders, and 

employers. Records must be kept of 

each such field visit. 

(n) The State monitor advocate must 

participate in the appropriate regional 

public meeting(s) held by the 

Department of Labor Regional Farm 

Labor Coordinated Enforcement 

Committee, other Occupational Safety 


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and Health Administration and Wage 

and Hour Division task forces, and other 

committees as appropriate. 

(o) The State monitor advocate must 

ensure that outreach efforts in all 

significant MSFW employment service 

offices are reviewed at least yearly. This 

review will include accompanying at 

least one outreach worker from each 

significant MSFW local office on their 

field visits to MSFWs’ working and 

living areas. The State monitor advocate 

must review findings from these reviews 

with the employment service office 

managers. 

(p) The State monitor advocate must 

review on at least a quarterly basis all 

statistical and other MSFW-related data 

reported by employment service offices 

in order: 

(1) To determine the extent to which 

the State agency has complied with the 

employment service regulations; and 

(2) To identify the areas of noncompliance. 

(q) The State monitor advocate must 

have full access to all statistical and 

other MSFW-related information 

gathered by State agencies and local 

employment service offices, and may 

interview State and local employment 

service office staff with respect to 

reporting methods. Subsequent to each 

review, the State monitor advocate must 

consult, as necessary, with State and 

local employment service offices and 

provide technical assistance to ensure 

accurate reporting. 

(r) The State monitor advocate must 

review and comment on proposed State 

employment service directives, 

manuals, and operating instructions 

relating to MSFWs and must ensure: 

(1) That they accurately reflect the 

requirements of the regulations, and 

(2) That they are clear and workable. 

The State monitor advocate also must 

explain and make available at the 

requestor’s cost, pertinent directives and 

procedures to employers, employer 

organizations, farmworkers, farmworker 

organizations and other parties 

expressing an interest in a readily 

identifiable directive or procedure 

issued and receive suggestions on how 

these documents can be improved. 

(s) Annual summary. The State 

monitor advocates must prepare for the 

State Administrator, the regional 

monitor advocate, and the national 

monitor advocate an annual summary 

describing how the State provides 

employment services to MSFWs within 

their State based on statistical data and 

their reviews and activities as required 

in this chapter. The summary must 

include: 

(1) A description of the activities 

undertaken during the program year by 

the State monitor advocate pertaining to 

his/her responsibilities set forth in this 

section and other applicable regulations 

in this part. 

(2) An assurance that the State 

monitor advocate has direct, personal 

access, whenever he/she finds it 

necessary, to the State Administrator 

and that the State monitor advocate has 

status and compensation approved by 

the civil service classification system, 

and is comparable to other State 

positions assigned similar levels of 

tasks, complexity, and responsibility. 

(3) An assurance that the State 

monitor advocate devotes all of his/her 

time to monitor advocate functions, or, 

if the State agency proposes conducting 

necessary State monitor advocate 

functions on a part-time basis, an 

explanation of how the State monitor 

advocate functions are effectively 

performed with part-time staffing. 

(4) A summary of the monitoring 

reviews conducted by the State monitor 

advocate, including: 

(i) A description of any problems, 

deficiencies, or improper practices the 

State monitor advocate identified in the 

delivery of services, 

(ii) A summary of the actions taken by 

the State agency to resolve the 

problems, deficiencies, or improper 

practices described in its service 

delivery, and 

(iii) A summary of any technical 

assistance the State monitor advocate 

provided for the State agency and the 

local employment service offices. 

(5) A summary of the outreach efforts 

undertaken by all significant and nonsignificant MSFW employment service 

offices. 

(6) A summary of the State’s actions 

taken under the complaint system 

described in 20 CFR 658 subpart E, 

identifying any challenges, complaint 

trends, findings from reviews of the 

complaint system, trainings offered 

throughout the year, and steps taken to 

inform MSFWs and employers, and 

farmworker advocacy groups about the 

complaint system. 

(7) A summary of how the State 

monitor advocate is working with WIOA 

title I sec. 167 NFJP grantees and other 

organizations serving farmworkers, 

employers and employer organizations, 

in the State, and an assurance that the 

State monitor advocate is meeting at 

least quarterly with representatives of 

these organizations. 

(8) A summary of the statistical and 

other MSFW-related data and reports 

gathered by State agencies and 

employment service offices for the year, 

including an overview of the State 

monitor advocate’s involvement in the 

State agency’s reporting systems. 

(9) A summary of the training 

conducted for State agency personnel, 

including local office personnel, on 

techniques for accurately reporting data. 

(10) A summary of activities related to 

the agricultural outreach plan, and an 

explanation of how those activities 

helped the State reach the goals and 

objectives described in the AOP. At the 

end of the 4-year AOP cycle, the 

summary must include a synopsis of the 

State agency’s achievements over the 

previous 4 years to accomplish the goals 

set forth in the AOP, and a description 

of the goals which were not achieved 

and the steps the State agency will take 

to address those deficiencies. 

(11) For significant MSFW 

employment offices, a summary of the 

functioning of the State’s affirmative 

action staffing program under 20 CFR 

653.111. 

§ 653.109 Data collection and performance 

accountability measures. 

State agencies must: 

(a) Collect career service indicator 

data specified in WIOA title I sec. 

134(c)(2)(A)(xii). 

(b) Collect data, in accordance with 

applicable ETA Reports and Guidance, 

on: 

(1) The number of MSFWs contacted 

through outreach activities; 

(2) The number of MSFWs and nonMSFWs registered for career services; 

(3) The number of MSFWs referred to 

and placed in agricultural jobs; 

(4) The number of MSFWs referred to 

and placed in non-agricultural jobs; 

(5) The entered employment rate for 

MSFWs; 

(6) The average earnings for MSFWs 

in both agricultural and non-agricultural 

jobs; 

(7) The employment retention rate for 

MSFWs; 

(8) The number of MSFWs served 

who identified themselves as male, 

female, African-American, Hispanic, 

American Indian, Asian, or Pacific 

Islander; 

(9) Agricultural clearance orders 

(including field checks), MSFW 

complaints, and monitoring activities; 

and 

(10) Any other data required by the 

Department. 

(c) Provide necessary training to State 

agency personnel, including local office 

personnel, on techniques for accurately 

reporting data; 

(d) Collect and submit data on 

MSFWs required by the Unified State 

Plan, as directed by the Department. 

(e) Periodically verify data required to 

be collected under this section, take 

necessary steps to ensure its validity, 

and submit the data for verification to 


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the Department, as directed by the 

Department. 

(f) Submit additional reports to the 

Department as directed. 

(g) Meet equity indicators that address 

ES controllable services and include, at 

a minimum, individuals referred to a 

job, receiving job development, and 

referred to supportive or career services. 

(h) Meet minimum levels of service in 

significant MSFW States. That is, only 

significant MSFW State agencies will be 

required to meet minimum levels of 

service to MSFWs. Minimum level of 

service indicators must include, at a 

minimum, individuals placed in a job; 

individuals placed long-term (150 days 

or more) in a non-agricultural job; a 

review of significant MSFW local 

employment service offices; field checks 

conducted, outreach contacts per week; 

and processing of complaints. The 

determination of the minimum service 

levels required of significant MSFW 

States for each year must be based on 

the following: 

(1) Past State agency performance in 

serving MSFWs, as reflected in on-site 

reviews and data collected under 

§ 653.109; 

(2) The need for services to MSFWs in 

the following year, comparing prior and 

projected levels of MSFW activity. 

§ 653.110 Disclosure of data. 

(a) State agencies must disclose to the 

public, on written request, in 

conformance with applicable State and 

Federal law, the data collected by State 

and local employment service offices 

pursuant to § 653.109, if possible within 

10 working days after receipt of the 

request. 

(b) If a request for data held by a State 

agency is made to the ETA national or 

regional office, the ETA must forward 

the request to the State agency for 

response. 

(c) If the State agency cannot supply 

the requested data within 10 business 

days after receipt of the request, the 

State agency must respond to the 

requestor in writing, giving the reason 

for the delay and specifying the date by 

which it expects to be able to comply. 

(d) State agency intra-agency 

memoranda and reports (or parts 

thereof) and memoranda and reports (or 

parts thereof) between the State agency 

and the ETA, to the extent that they 

contain statements of opinion rather 

than facts, may be withheld from public 

disclosure provided the reason for 

withholding is given to the requestor in 

writing. Similarly, documents or parts 

thereof, which, if disclosed, would 

constitute an unwarranted invasion of 

personal or employer privacy, or are 

otherwise privileged against disclosure, 

may also be withheld provided the 

reason is given to the requestor in 

writing. 

§ 653.111 State agency staffing 

requirements. 

(a) The State agency must implement 

and maintain an affirmative action 

program for staffing in significant 

MSFW one-stop centers, and will 

employ ES staff in a manner facilitating 

the delivery of ES services tailored to 

the special needs of MSFWs, including: 

(1) The positioning of multilingual 

staff in offices serving a significant 

number of Spanish-speaking or LEP 

participants; and 

(2) The hiring of staff members from 

the MSFW community or members of 

community-based migrant programs. 

(b) The State agency must hire 

sufficient numbers of qualified, 

permanent minority staff in significant 

MSFW employment service offices. 

State agencies will determine whether a 

‘‘sufficient number’’ of staff has been 

hired by conducting a comparison 

between the characteristics of the staff 

and the workforce and determining if 

the composition of the local office 

staff(s) is representative of the racial and 

ethnic characteristics of the work force 

in the local employment office service 

area(s). State agencies with significant 

MSFW local employment service 

offices, must undertake special efforts to 

recruit MSFWs and persons from MSFW 

backgrounds for its staff. 

(1) Where qualified minority 

applicants are not available to be hired 

as permanent staff, qualified minority 

part-time, provisional, or temporary 

staff must be hired in accordance with 

State merit system procedures, where 

applicable. 

(2) If a local employment service 

office does not have a sufficient number 

of qualified minority staff, the State 

agency must establish a goal to achieve 

sufficient staffing at the local 

employment service office. The State 

agency will also establish a reasonable 

timetable for achieving the staffing goal 

by hiring or promoting available, 

qualified staff in the under-represented 

categories. In establishing timetables, 

the State agency must consider the 

vacancies anticipated through 

expansion, contraction, and turnover in 

the office(s) and available funds. All 

affirmative action programs must 

establish timetables that are designed to 

achieve the staffing goal no later than 1 

year after the submission of the Unified 

or Combined State Plan or annual 

summary, whichever is sooner. Once 

such goals have been achieved, the State 

agency must submit a State Plan 

modification request to the Department 

with the assurance that the 

requirements of paragraph (b) of this 

section have been achieved. 

(3) The State monitor advocates, 

regional monitor advocates, or the 

national monitor advocate, as part of 

their regular reviews of State agency 

compliance with these regulations, must 

monitor the extent to which the State 

agency has complied with its affirmative 

action program. 

Subpart C–E—[Reserved] 

Subpart F—Agricultural Recruitment 

System for U.S. Farmworkers (ARS) 

§ 653.500 Purpose and scope of subpart. 

This subpart includes the 

requirements for the acceptance of 

intrastate and interstate job clearance 

orders which seek U.S. workers to 

perform farmwork on a temporary, less 

than year-round basis. Orders seeking 

workers to perform farmwork on a yearround basis are not subject to the 

requirements of this subpart. This 

section affects all job orders for workers 

who are recruited through the 

employment service interstate and 

intrastate clearance systems for less than 

year-round farmwork, including both 

MSFWs and non-MSFW job seekers. 

§ 653.501 Requirements for processing 

clearance orders. 

(a) No local employment service office 

or State agency may place a job order 

seeking workers to perform farmwork 

into intrastate or interstate clearance 

unless: 

(1) The local employment service 

office and employer have attempted, 

and have not been able, to obtain 

sufficient workers within the local labor 

market area, or 

(2) The local employment service 

office anticipates a shortage of local 

workers. 

(b) Employment service office 

responsibilities. (1) Each employment 

service office must ensure that the 

agricultural clearance form prescribed 

by the Department (ETA Form 790 or its 

subsequently issued form), and its 

attachments are complete when placing 

intrastate or interstate clearance orders 

seeking farmworkers. 

(2) All clearance orders must be 

posted in accordance with applicable 

ETA guidance. If the job order for the 

local employment service office 

incorporates offices beyond the local 

office commuting area, the employment 

service office must suppress the 

employer information in order to 

facilitate the orderly movement of 

workers within the employment service 

system. 


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(3) Employment service staff must 

determine, through a preoccupancy 

housing inspection performed by 

employment service staff or other 

appropriate public agency, that the 

housing assured by the employer is 

either available and meets the 

applicable housing standards or has 

been approved for conditional access to 

the clearance system as set forth in 20 

CFR 653.502; except that mobile range 

housing for sheepherders and 

goatherders must meet existing 

Departmental guidelines and/or 

applicable regulations. 

(c) State agency responsibilities. (1) 

State agencies must ensure that 

intrastate and interstate orders: 

(i) Include the following language: ‘‘In 

view of the statutorily established basic 

function of the employment service as a 

no-fee labor exchange, that is, as a 

forum for bringing together employers 

and job seekers, neither the ETA nor the 

State agencies are guarantors of the 

accuracy or truthfulness of information 

contained on job orders submitted by 

employers. Nor does any job order 

accepted or recruited upon by the 

employment service constitute a 

contractual job offer to which the ETA 

or a State agency is in any way a party;’’ 

(ii) Do not contain an unlawful 

discriminatory specification by race, 

color, religion, national origin, sex, 

sexual orientation, gender identity, age, 

disability, or genetic information; 

(iii) Are signed by the employer; and 

(iv) State all the material terms and 

conditions of the employment, 

including: 

(A) The crop; 

(B) The nature of the work; 

(C) The anticipated period and hours 

of employment; 

(D) The anticipated starting and 

ending date of employment and the 

anticipated number of days and hours 

per week for which work will be 

available; 

(E) The hourly wage rate or the piece 

rate estimated in hourly wage rate 

equivalents for each activity and unit 

size; 

(F) Any deductions to be made from 

wages; 

(G) A specification of any nonmonetary benefits to be provided by the 

employer; 

(H) Any hours, days or weeks for 

which work is guaranteed, and, for each 

guaranteed week of work except as 

provided in paragraph (c)(3)(i) of this 

section, the exclusive manner in which 

the guarantee may be abated due to 

weather conditions or other acts of God 

beyond the employer’s control; and 

(I) Any bonus or work incentive 

payments or other expenses which will 

be paid by the employer in addition to 

the basic wage rate, including the 

anticipated time period(s) within which 

such payments will be made. 

(2) State agencies must ensure that: 

(i) The wages and working conditions 

offered are not less than the prevailing 

wages and working conditions among 

similarly employed farmworkers in the 

area of intended employment or the 

applicable Federal or State minimum 

wage, whichever is higher. If the wages 

offered are expressed as piece rates or as 

base rates and bonuses, the employer 

must make the method of calculating 

the wage and supporting materials 

available to employment service staff 

who must check if the employer’s 

calculation of the estimated hourly wage 

rate is reasonably accurate and is not 

less than the prevailing wage rate or 

applicable Federal or State minimum 

wage, whichever is higher; and 

(ii) The employer has agreed to 

provide or pay for the transportation of 

the workers and their families at or 

before the end of the period of 

employment specified in the job order 

on at least the same terms as 

transportation is commonly provided by 

employers in the area of intended 

employment to farmworkers and their 

families recruited from the same area of 

supply. Under no circumstances may 

the payment or provision of 

transportation occur later than the 

departure time needed to return home to 

begin the school year, in the case of any 

worker with children 18 years old or 

younger, or be conditioned on the 

farmworker performing work after the 

period of employment specified in the 

job order. 

(3) State agencies must ensure that the 

clearance order includes the following 

assurances: 

(i) The employer will provide to 

workers referred through the clearance 

system the number of hours of work 

cited in paragraph (c)(1)(iv)(D) of this 

section for the week beginning with the 

anticipated date of need, unless the 

employer has amended the date of need 

at least 10 working days prior to the 

original date of need (pursuant to 

paragraph (c)(3)(iv) of this section) by so 

notifying the order-holding office. The 

State agency must make a record of this 

notification and must attempt to 

expeditiously inform referred workers of 

the change. 

(ii) No extension of employment 

beyond the period of employment 

specified in the clearance order may 

relieve the employer from paying the 

wages already earned, or if specified in 

the clearance order as a term of 

employment, providing transportation 

or paying transportation expenses to the 

worker’s home. 

(iii) The working conditions comply 

with applicable Federal and State 

minimum wage, child labor, social 

security, health and safety, farm labor 

contractor registration and other 

employment-related laws. 

(iv) The employer will expeditiously 

notify the order-holding office or State 

agency by emailing and telephoning 

immediately upon learning that a crop 

is maturing earlier or later, or that 

weather conditions, over-recruitment or 

other factors have changed the terms 

and conditions of employment. 

(v) The employer, if acting as a farm 

labor contractor (‘‘FLC’’) or farm labor 

contractor employee (‘‘FLCE’’) on the 

order, has a valid Federal FLC certificate 

or Federal FLCE identification card; and 

when appropriate, any required State 

farm labor contractor certificate. 

(vi) The availability of no cost or 

public housing which meets the Federal 

standards and which is sufficient to 

house the specified number of workers 

requested through the clearance system. 

This assurance must cover the 

availability of housing for only those 

workers, and, when applicable, family 

members who are unable to return to 

their residence in the same day. 

(vii) Outreach workers must have 

reasonable access to the workers in the 

conduct of outreach activities pursuant 

to § 653.107. 

(viii) The job order contains all the 

material terms and conditions of the job. 

The employer must assure this by 

signing the following statement in the 

clearance order: ‘‘This clearance order 

describes the actual terms and 

conditions of the employment being 

offered by me and contains all the 

material terms and conditions of the 

job.’’ 

(4) If a State agency discovers that an 

employer’s clearance order contains a 

material misrepresentation, the State 

agency may initiate the Discontinuation 

of Services as set forth in 20 CFR part 

658, subpart F. 

(5) If there is a change to the 

anticipated date of need and the 

employer fails to notify the orderholding office at least 10 working days 

prior to the original date of need the 

employer must pay eligible (pursuant to 

paragraph (d)(4) of this section) workers 

referred through the clearance system 

the specified hourly rate of pay, or if the 

pay is piece-rate, the higher of the 

Federal or State minimum wage for the 

first week starting with the originally 

anticipated date of need or provide 

alternative work if such alternative work 

is stated on the clearance order. If an 

employer fails to comply under this 


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section the order holding office may 

notify DOL’s Wage and Hour Division 

for possible enforcement. 

(d) Processing clearance orders. This 

section does not apply to clearance 

orders that are attached to applications 

for foreign temporary agricultural 

workers pursuant to 20 CFR 655 subpart 

B. 

(1) The order-holding office must 

transmit an electronic copy of the 

approved clearance order to the State 

agency. The State agency must 

distribute additional electronic copies of 

the form with all attachments (except 

that the State agency may, at its 

discretion, delegate this distribution to 

the local office) as follows: 

(i) At least one copy of the clearance 

order must be sent to each of the State 

agencies selected for recruitment (areas 

of supply); 

(ii) At least one copy of the clearance 

order must be sent to each applicantholding ETA regional office; 

(iii) At least one copy of the clearance 

order must be sent to the order-holding 

ETA regional office; and 

(iv) At least one copy of the clearance 

order must be sent to the Regional Farm 

Labor Coordinated Enforcement 

Committee and/or other Occupational 

Safety and Health Administration and 

Wage and Hour Division regional 

agricultural coordinators, and/or other 

committees as appropriate in the area of 

employment. 

(2) The local office may place an 

intrastate or interstate order seeking 

workers to perform farmwork for a 

specific farm labor contractor or for a 

worker preferred by an employer 

provided the order meets employment 

service nondiscrimination criteria. The 

order would not meet such criteria, for 

example, if it requested a ‘‘white male 

crew leader’’ or ‘‘any white male crew 

leader.’’ 

(3) The ETA regional office must 

review and approve the order within 10 

working days of its receipt of the order, 

and the Regional Administrator or his/ 

her designee must approve the areas of 

supply to which the order will be 

extended. Any denial by the Regional 

Administrator or his/her designee must 

be in writing and state the reasons for 

the denial. 

(4) The applicant holding office must 

notify all referred farmworkers, farm 

labor contractors on behalf of 

farmworkers, or family heads on behalf 

of farmworker family members, to 

contact a local employment service 

office, preferably the order-holding 

office, to verify the date of need cited in 

the clearance order between nine and 5 

working days prior to the original date 

of need cited in the clearance order; and 

that failure to do so will disqualify the 

referred farmworker from the first 

weeks’ pay as described in paragraph 

(c)(3)(i) of this section. The State agency 

must make a record of this notification. 

(5) If the worker referred through the 

clearance system contacts a local 

employment service office (in any State) 

other than the order holding office, that 

local employment service office must 

assist the referred worker in contacting 

the order holding office on a timely 

basis. Such assistance must include, if 

necessary, contacting the order holding 

office by telephone or other timely 

means on behalf of the worker referred 

through the clearance system. 

(6) Local employment service office 

staff must assist all farmworkers, upon 

request in their native language, to 

understand the terms and conditions of 

employment set forth in intrastate and 

interstate clearance orders and must 

provide such workers with checklists in 

their native language showing wage 

payment schedules, working conditions, 

and other material specifications of the 

clearance order. 

(7) If an order holding office learns 

that a crop is maturing earlier than 

expected or that other material factors, 

including weather conditions and 

recruitment levels, have changed since 

the date the clearance order was 

accepted, the agency must immediately 

contact the applicant holding office 

which must immediately inform crews 

and families scheduled to report to the 

job site of the changed circumstances 

and must adjust arrangements on behalf 

of such crews and families. 

(8) When there is a delay in the date 

of need, State agencies must document 

notifications by employers and contacts 

by individual farmworkers or crew 

leaders on behalf of farmworkers or 

family heads on behalf of farmworker 

family members to verify the date of 

need. 

(9) If weather conditions, overrecruitment or other conditions have 

eliminated the scheduled job 

opportunities, the State agencies 

involved must make every effort to 

place the workers in alternate job 

opportunities as soon as possible, 

especially if the worker(s) is already enroute or at the job site. Employment 

service office staff must keep records of 

actions under this section. 

(10) Applicant-holding offices must 

provide workers referred on clearance 

orders with a checklist summarizing 

wages, working conditions and other 

material specifications in the clearance 

order. Such checklists, where necessary, 

must be in the workers’ native language. 

The checklist must include language 

notifying the worker that a copy of the 

original clearance order is available 

upon request. State agencies must use a 

standard checklist format provided by 

the Department (such as in Form 

WH516 or a successor form). 

(11) The applicant-holding office 

must give each referred worker a copy 

of the list of worker’s rights described in 

the Department’s ARS Handbook. 

(12) If the labor supply State agency 

accepts a clearance order, the State 

agency must actively recruit workers for 

referral. In the event a potential labor 

supply State agency rejects a clearance 

order, the reasons for rejection must be 

documented and submitted to the 

Regional Administrator having 

jurisdiction over the State agency. The 

Regional Administrator will examine 

the reasons for rejection, and, if the 

Regional Administrator agrees, will 

inform the Regional Administrator with 

jurisdiction over the order-holding State 

agency of the rejection and the reasons. 

If the Regional Administrator who 

receives the notification of rejection 

does not concur with the reasons for 

rejection, that Regional Administrator 

will inform the national monitor 

advocate, who, in consultation with the 

Administrator of ETA’s Office of 

Workforce Investment, will make a final 

determination on the acceptance or 

rejection of the order. 

§ 653.502 Conditional access to the 

agricultural recruitment system. 

(a) Filing requests for conditional 

access—(1) ‘‘Noncriteria’’ employers. 

Except as provided in paragraph (a)(2) 

of this section, an employer whose 

housing does not meet applicable 

standards may file with the local 

employment service office serving the 

area in which its housing is located, a 

written request that its clearance orders 

be conditionally allowed into the 

intrastate or interstate clearance system, 

provided that the employer’s request 

assures that its housing will be in full 

compliance with the requirements of the 

applicable housing standards at least 20 

calendar days (giving the specific date) 

before the housing is to be occupied. 

(2) ‘‘Criteria’’ employers. If the request 

for conditional access described in 

paragraph (a)(1) of this section is from 

an employer filing a clearance order 

pursuant to an application for 

temporary alien agricultural labor 

certification for H–2A workers under 

subpart B of part 655 of this chapter, the 

request must be filed with the Certifying 

Officer (CO) at the Department’s 

Chicago National Processing Center 

(NPC) designated by the Office of 

Foreign Labor Certification (OFLC) 

Administrator to make determinations 

on applications for temporary 


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employment certification under the 

H–2A program. 

(3) Assurance. The employer’s request 

pursuant to paragraphs (a)(1) or (2) of 

this section must contain an assurance 

that the housing will be in full 

compliance with the applicable housing 

standards at least 20 calendar days 

(stating the specific date) before the 

housing is to be occupied. 

(b) Processing requests—(1) State 

agency processing. Upon receipt of a 

written request for conditional access to 

the intrastate or interstate clearance 

system under paragraph (a)(1) of this 

section, the local employment service 

office must send the request to the State 

agency, which, in turn, must forward it 

to the Regional Administrator. 

(2) Regional office processing and 

determination. Upon receipt of a request 

for conditional access pursuant to 

paragraph (b)(1) of this section, the 

Regional Administrator must review the 

matter and, as appropriate, must either 

grant or deny the request. 

(c) Authorization. The authorization 

for conditional access to the intrastate or 

interstate clearance system must be in 

writing, and must state that although the 

housing does not comply with the 

applicable standards, the employer’s job 

order may be placed into intrastate or 

interstate clearance until a specified 

date. The Regional Administrator must 

send the authorization to the employer 

and must send copies (hard copy or 

electronic) to the appropriate State 

agency and local employment service 

office. The employer must submit and 

the local employment service office 

must attach copies of the authorization 

to each of the employer’s clearance 

orders which is placed into intrastate or 

interstate clearance. 

(d) Notice of denial. If the Regional 

Administrator denies the request for 

conditional access to the intrastate or 

interstate clearance system they must 

provide written notice to the employer, 

the appropriate State agency, and the 

local employment service office, stating 

the reasons for the denial. 

(e) Inspection. The local employment 

service office serving the area 

containing the housing of any employer 

granted conditional access to the 

intrastate or interstate clearance system 

must assure that the housing is 

inspected no later than the date by 

which the employer has promised to 

have its housing in compliance with the 

applicable housing standards. An 

employer, however, may request an 

earlier preliminary inspection. If, on the 

date set forth in the authorization, the 

housing is not in full compliance with 

the applicable housing standards as 

assured in the request for conditional 

access, the local employment service 

office must afford the employer 5 

calendar days to bring the housing into 

full compliance. After the 5-calendarday period, if the housing is not in full 

compliance with the applicable housing 

standards as assured in the request for 

conditional access, the local 

employment service office immediately: 

(1) Must notify the RA, or the NPC 

designated by the Regional 

Administrator; 

(2) Must remove the employer’s 

clearance orders from intrastate and 

interstate clearance; and 

(3) Must, if workers have been 

recruited against these orders, in 

cooperation with the employment 

service agencies in other States, make 

every reasonable attempt to locate and 

notify the appropriate crew leaders or 

workers, and to find alternative and 

comparable employment for the 

workers. 

§ 653.503 Field checks. 

(a) If a worker is placed on a clearance 

order, the State agency must notify the 

employer in writing that the State 

agency, through its local employment 

service offices, and/or Federal staff, 

must conduct random, unannounced 

field checks to determine and document 

whether wages, hours, and working and 

housing conditions are being provided 

as specified in the clearance order. 

(b) The State agency must conduct 

field checks on at least 25 percent of all 

agricultural worksites where placements 

have been made through the intrastate 

or interstate clearance system or at 100 

percent of the worksites where less than 

10 employment service placements have 

been made. This requirement must be 

met on a quarterly basis. 

(c) Field checks must include visit(s) 

to the worksite at a time when workers 

are present. When conducting field 

checks, local employment service staff 

must consult both the employees and 

the employer to ensure compliance with 

the full terms and conditions of 

employment. 

(d) If State agency or Federal 

personnel observe or receive 

information, or otherwise have reason to 

believe that conditions are not as stated 

in the clearance order or that an 

employer is violating an employmentrelated law, the State agency must 

document the finding and attempt 

informal resolution. If the matter has not 

been resolved within 5 working days, 

the State agency must initiate the 

Discontinuation of Services as set forth 

at 20 CFR part 658 subpart F and must 

refer apparent violations of 

employment-related laws to appropriate 

enforcement agencies in writing. 

(e) State agencies may enter into 

formal or informal arrangements with 

appropriate State and Federal 

enforcement agencies where the 

enforcement agency staff may conduct 

field checks instead of and on behalf of 

State agency personnel. The agreement 

may include the sharing of information 

and any actions taken regarding 

violations of the terms and conditions of 

the employment as stated in the 

clearance order and any other violations 

of employment related laws. An 

enforcement agency field check must 

satisfy the requirement for State agency 

field checks where all aspects of wages, 

hours, working and housing conditions 

have been reviewed by the enforcement 

agency. The State agency must 

supplement enforcement agency efforts 

with field checks focusing on areas not 

addressed by enforcement agencies. 

(g) ES staff must keep records of all 

field checks. 

PART 654—SPECIAL 

RESPONSIBILITIES OF THE 

EMPLOYMENT SERVICE SYSTEM 

■ 20. Revise the authority citation for 

part 654 to read as follows: 

Authority: 29 U.S.C. 49k; 8 U.S.C. 

1188(c)(4); 41 Op.A.G. 406 (1959). 

■ 21. Revise subpart E of part 654 to 

read as follows: 

Subpart E—Housing for Agricultural 

Workers 

Purpose and Applicability 

Sec. 

654.400 Scope and purpose. 

654.401 Applicability. 

654.402 Variances. 

654.403 [Reserved]. 

Housing Standards 

654.404 Housing site. 

654.405 Water supply. 

654.406 Excreta and liquid waste disposal. 

654.407 Housing. 

654.408 Screening. 

654.409 Heating. 

654.410 Electricity and lighting. 

654.411 Toilets. 

654.412 Bathing, laundry, and hand 

washing. 

654.413 Cooking and eating facilities. 

654.414 Garbage and other refuse. 

654.415 Insect and rodent control. 

654.416 Sleeping facilities. 

654.417 Fire, safety, and first aid. 

Subpart E—Housing for Agricultural 

Workers 

Purpose and Applicability 

§ 654.400 Scope and purpose. 

(a) This subpart sets forth the 

Department’s Employment and Training 

Administration (ETA) standards for 

agricultural housing and variances. 


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Local employment service offices, as 

part of the State employment service 

agencies and in cooperation with the 

United States Employment Service, 

assist employers in recruiting 

agricultural workers from places outside 

the area of intended employment. The 

experiences of the employment service 

agencies indicate that employees so 

referred have on many occasions been 

provided with inadequate, unsafe, and 

unsanitary housing conditions. To 

discourage this practice, it is the policy 

of the Federal-State employment service 

system to deny its intrastate and 

interstate recruitment services to 

employers until the State employment 

service agency has ascertained that the 

employer’s housing meets certain 

standards. 

(b) To implement this policy, 

§ 653.501 of this chapter provides that 

recruitment services must be denied 

unless the employer has signed an 

assurance that if the workers are to be 

housed, a preoccupancy inspection has 

been conducted and the employment 

service staff has ascertained that, with 

respect to intrastate or interstate 

clearance orders, the employer’s 

housing meets the full set of standards 

set forth at 29 CFR 1910.142 or 20 CFR 

654 subpart E, except that mobile range 

housing for sheepherders or goatherders 

must meet existing Departmental 

guidelines and/or applicable 

regulations. 

(c) Per § 654.401(a) below, this 

subpart is effective only until [ONE 

YEAR AFTER DATE OF PUBLICATION 

OF THE FINAL RULE IN THE 

FEDERAL REGISTER]. 

§ 654.401 Applicability. 

(a) Housing that was completed or 

under construction prior to April 3, 

1980 or was under a signed contract for 

construction prior to March 4, 1980 may 

continue to follow the full set of the 

Department’s ETA standards set forth in 

this subpart until the date specified in 

paragraph (b) of this section. 

(b) On [ONE YEAR AFTER DATE OF 

PUBLICATION OF THE FINAL RULE 

IN THE FEDERAL REGISTER] all 

housing for agricultural workers 

governed by the standards set forth in 

this subpart must comply with the 

Occupational Safety and Health 

Administration’s (OSHA) housing 

standards set forth in 29 CFR 1910.142. 

(c) To effectuate the transition to the 

OSHA standards, agricultural housing to 

which this subpart applies and which 

complies with the full set of standards 

and provisions set forth in this subpart 

must be considered to be in compliance 

with the OSHA temporary labor camp 

standards at 29 CFR 1910.142 until 

[ONE YEAR AFTER DATE OF 

PUBLICATION OF THE FINAL RULE 

IN THE FEDERAL REGISTER]. 

§ 654.402 Variances. 

(a) An employer may apply for a 

structural variance from a specific 

standard(s) in this subpart by filing a 

written application for such a variance 

with the local employment service 

office serving the area in which the 

housing is located. This application 

must: 

(1) Clearly specify the standard(s) 

from which the variance is desired; 

(2) Provide adequate justification that 

the variance is necessary to obtain a 

beneficial use of an existing facility, and 

to prevent a practical difficulty or 

unnecessary hardship; and 

(3) Clearly set forth the specific 

alternative measures which the 

employer has taken to protect the health 

and safety of workers and adequately 

show that such alternative measures 

have achieved the same result as the 

standard(s) from which the employer 

desires the variance. 

(b) Upon receipt of a written request 

for a variance under paragraph (a) of 

this section, the local employment 

service office must send the request to 

the State office which, in turn, must 

forward it to the ETA Regional 

Administrator (RA). The RA must 

review the matter and, after consultation 

with OSHA, must either grant or deny 

the request for a variance. 

(c) The variance granted by the RA 

must be in writing, must state the 

particular standard(s) involved, and 

must state as conditions of the variance 

the specific alternative measures which 

have been taken to protect the health 

and safety of the workers. The RA must 

send the approved variance to the 

employer and must send copies to 

OSHA’s Regional Administrator, the 

Regional Administrator of the Wage and 

Hour Division (WHD), and the 

appropriate State agency and the local 

employment service office. The 

employer must submit and the local 

employment service office must attach 

copies of the approved variance to each 

of the employer’s job orders which is 

placed into intrastate or interstate 

clearance. 

(d) If the RA denies the request for a 

variance, the RA must provide written 

notice stating the reasons for the denial 

to the employer, the appropriate State 

agency and the local employment 

service office. The notice must also offer 

the employer an opportunity to request 

a hearing before a DOL Hearing Officer, 

provided the employer requests such a 

hearing from the RA within 30 calendar 

days of the date of the notice. The 

request for a hearing must be handled in 

accordance with the complaint 

procedures set forth at §§ 658.424 and 

658.425 of this chapter. 

(e) The procedures of paragraphs (a) 

through (d) of this section only apply to 

an employer who has chosen, as 

evidenced by its written request for a 

variance, to comply with the ETA 

housing standards at §§ 654.404– 

654.417 of this subpart. 

(f) All requests and/or approvals for 

variance under this section will expire 

on [ONE YEAR AFTER DATE OF 

PUBLICATION OF THE FINAL RULE 

IN THE FEDERAL REGISTER]. After 

that date no requests for variance will be 

accepted by the Department. 

§ 654.403 [Reserved]. 

Housing Standards 

§ 654.404 Housing site. 

(a) Housing sites must be well drained 

and free from depressions in which 

water may stagnate. They must be 

located where the disposal of sewage is 

provided in a manner which neither 

creates nor is likely to create a nuisance, 

or a hazard to health. 

(b) Housing must not be subject to, or 

in proximity to conditions that create or 

are likely to create offensive odors, flies, 

noise, traffic, or any similar hazards. 

(c) Grounds within the housing site 

must be free from debris, noxious plants 

(poison ivy, etc.) and uncontrolled 

weeds or brush. 

(d) The housing site must provide a 

space for recreation reasonably related 

to the size of the facility and the type 

of occupancy. 

§ 654.405 Water supply. 

(a) An adequate and convenient 

supply of water that meets the standards 

of the State health authority must be 

provided. 

(b) A cold water tap must be available 

within 100 feet of each individual living 

unit when water is not provided in the 

unit. Adequate drainage facilities must 

be provided for overflow and spillage. 

(c) Common drinking cups are not 

permitted. 

§ 654.406 Excreta and liquid waste 

disposal. 

(a) Facilities must be provided and 

maintained for effective disposal of 

excreta and liquid waste. Raw or treated 

liquid waste may not be discharged or 

allowed to accumulate on the ground 

surface. 

(b) Where public sewer systems are 

available, all facilities for disposal of 

excreta and liquid wastes must be 

connected thereto. 

(c) Where public sewers are not 

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seepage system or other type of liquid 

waste treatment and disposal system, 

privies or portable toilets must be 

provided. Any requirements of the State 

health authority must be complied with. 

§ 654.407 Housing. 

(a) Housing must be structurally 

sound, in good repair, in a sanitary 

condition and must provide protection 

to the occupants against the elements. 

(b) Housing must have flooring 

constructed of rigid materials, smooth 

finished, readily cleanable, and so 

located as to prevent the entrance of 

ground and surface water. 

(c) The following space requirements 

must be provided: 

(1) For sleeping purposes only in 

family units and in dormitory 

accommodations using single beds, not 

less than 50 square feet of floor space 

per occupant; 

(2) For sleeping purposes in 

dormitory accommodations using 

double bunk beds only, not less than 40 

square feet per occupant; 

(3) For combined cooking, eating, and 

sleeping purposes not less than 60 

square feet of floor space per occupant. 

(d) Housing used for families with one 

or more children over 6 years of age 

must have a room or partitioned 

sleeping area for the husband and wife. 

The partition must be of rigid materials 

and installed so as to provide reasonable 

privacy. 

(e) Separate sleeping accommodations 

must be provided for each sex or each 

family. 

(f) Adequate and separate 

arrangements for hanging clothing and 

storing personal effects for each person 

or family must be provided. 

(g) At least one-half of the floor area 

in each living unit must have a 

minimum ceiling height of 7 feet. No 

floor space may be counted toward 

minimum requirements where the 

ceiling height is less than 5 feet. 

(h) Each habitable room (not 

including partitioned areas) must have 

at least one window or skylight opening 

directly to the out-of-doors. The 

minimum total window or skylight area, 

including windows in doors, must equal 

at least 10 percent of the usable floor 

area. The total openable area must equal 

at least 45 percent of the minimum 

window or skylight area required, 

except where comparably adequate 

ventilation is supplied by mechanical or 

some other method. 

§ 654.408 Screening. 

(a) All outside openings must be 

protected with screening of not less than 

16 mesh. 

(b) All screen doors must be tight 

fitting, in good repair, and equipped 

with self-closing devices. 

§ 654.409 Heating. 

(a) All living quarters and service 

rooms must be provided with properly 

installed, operable heating equipment 

capable of maintaining a temperature of 

at least 68 °F if during the period of 

normal occupancy the temperature in 

such quarters falls below 68 °F. 

(b) Any stoves or other sources of heat 

utilizing combustible fuel must be 

installed and vented in such a manner 

as to prevent fire hazards and a 

dangerous concentration of gases. No 

portable heaters other than those 

operated by electricity may be provided. 

If a solid or liquid fuel stove is used in 

a room with wooden or other 

combustible flooring, there must be a 

concrete slab, insulated metal sheet, or 

other fireproof material on the floor 

under each stove, extending at least 18 

inches beyond the perimeter of the base 

of the stove. 

(c) Any wall or ceiling within 18 

inches of a solid or liquid fuel stove or 

a stovepipe must be of fireproof 

material. A vented metal collar must be 

installed around a stovepipe, or vent 

passing through a wall, ceiling, floor or 

roof. 

(d) When a heating system has 

automatic controls, the controls must be 

of the type which cut off the fuel supply 

upon the failure or interruption of the 

flame or ignition, or whenever a 

predetermined safe temperature or 

pressure is exceeded. 

§ 654.410 Electricity and lighting. 

(a) All housing sites must be provided 

with electric service. 

(b) Each habitable room and all 

common use rooms, and areas such as: 

laundry rooms, toilets, privies, 

hallways, stairways, etc., must contain 

adequate ceiling or wall-type light 

fixtures. At least one wall-type electrical 

convenience outlet must be provided in 

each individual living room. 

(c) Adequate lighting must be 

provided for the yard area, and 

pathways to common use facilities. 

(d) All wiring and lighting fixtures 

must be installed and maintained in a 

safe condition. 

§ 654.411 Toilets. 

(a) Toilets must be constructed, 

located and maintained so as to prevent 

any nuisance or public health hazard. 

(b) Water closets or privy seats for 

each sex must be in the ratio of not less 

than one such unit for each 15 

occupants, with a minimum of one unit 

for each sex in common use facilities. 

(c) Urinals, constructed of 

nonabsorbent materials, may be 

substituted for men’s toilet seats on the 

basis of one urinal or 24 inches of 

trough-type urinal for one toilet seat up 

to a maximum of one-third of the 

required toilet seats. 

(d) Except in individual family units, 

separate toilet accommodations for men 

and women must be provided. If toilet 

facilities for men and women are in the 

same building, they must be separated 

by a solid wall from floor to roof or 

ceiling. Toilets must be distinctly 

marked ‘‘men’’ and ‘‘women’’ in English 

and in the native language of the 

persons expected to occupy the housing. 

(e) Where common use toilet facilities 

are provided, an adequate and 

accessible supply of toilet tissue, with 

holders, must be furnished. 

(f) Common use toilets and privies 

must be well lighted and ventilated and 

must be clean and sanitary. 

(g) Toilet facilities must be located 

within 200 feet of each living unit. 

(h) Privies may not be located closer 

than 50 feet from any living unit or any 

facility where food is prepared or 

served. 

(i) Privy structures and pits must be 

fly tight. Privy pits must have adequate 

capacity for the required seats. 

§ 654.412 Bathing, laundry, and hand 

washing. 

(a) Bathing and hand washing 

facilities, supplied with hot and cold 

water under pressure, must be provided 

for the use of all occupants. These 

facilities must be clean and sanitary and 

located within 200 feet of each living 

unit. 

(b) There must be a minimum of 1 

showerhead per 15 persons. 

Showerheads must be spaced at least 3 

feet apart, with a minimum of 9 square 

feet of floor space per unit. Adequate, 

dry dressing space must be provided in 

common use facilities. Shower floors 

must be constructed of nonabsorbent 

nonskid materials and sloped to 

properly constructed floor drains. 

Except in individual family units, 

separate shower facilities must be 

provided each sex. When common use 

shower facilities for both sexes are in 

the same building they must be 

separated by a solid nonabsorbent wall 

extending from the floor to ceiling, or 

roof, and must be plainly designated 

‘‘men’’ or ‘‘women’’ in English and in 

the native language of the persons 

expected to occupy the housing. 

(c) Lavatories or equivalent units must 

be provided in a ratio of 1 per 15 

persons. 

(d) Laundry facilities, supplied with 

hot and cold water under pressure, must 


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be provided for the use of all occupants. 

Laundry trays or tubs must be provided 

in the ratio of 1 per 25 persons. 

Mechanical washers may be provided in 

the ratio of 1 per 50 persons in lieu of 

laundry trays, although a minimum of 1 

laundry tray per 100 persons must be 

provided in addition to the mechanical 

washers. 

§ 654.413 Cooking and eating facilities. 

(a) When workers or their families are 

permitted or required to cook in their 

individual unit, a space must be 

provided and equipped for cooking and 

eating. Such space must be provided 

with: 

(1) A cookstove or hot plate with a 

minimum of two burners; 

(2) Adequate food storage shelves and 

a counter for food preparation; 

(3) Provisions for mechanical 

refrigeration of food at a temperature of 

not more than 45 °F; 

(4) A table and chairs or equivalent 

seating and eating arrangements, all 

commensurate with the capacity of the 

unit; and 

(5) Adequate lighting and ventilation. 

(b) When workers or their families are 

permitted or required to cook and eat in 

a common facility, a room or building 

separate from the sleeping facilities 

must be provided for cooking and 

eating. Such room or building must be 

provided with: 

(1) Stoves or hot plates, with a 

minimum equivalent of two burners, in 

a ratio of 1 stove or hot plate to 10 

persons, or 1 stove or hot plate to 2 

families; 

(2) Adequate food storage shelves and 

a counter for food preparation; 

(3) Mechanical refrigeration for food 

at a temperature of not more than 45 °F.; 

(4) Tables and chairs or equivalent 

seating adequate for the intended use of 

the facility; 

(5) Adequate sinks with hot and cold 

water under pressure; 

(6) Adequate lighting and ventilation; 

and 

(7) Floors must be of nonabsorbent, 

easily cleaned materials. 

(c) When central mess facilities are 

provided, the kitchen and mess hall 

must be in proper proportion to the 

capacity of the housing and must be 

separate from the sleeping quarters. The 

physical facilities, equipment and 

operation must be in accordance with 

provisions of applicable State codes. 

(d) Wall surface adjacent to all food 

preparation and cooking areas must be 

of nonabsorbent, easily cleaned 

material. In addition, the wall surface 

adjacent to cooking areas must be of 

fire-resistant material. 

§ 654.414 Garbage and other refuse. 

(a) Durable, fly-tight, clean containers 

in good condition of a minimum 

capacity of 20 gallons, must be provided 

adjacent to each housing unit for the 

storage of garbage and other refuse. 

Such containers must be provided in a 

minimum ratio of 1 per 15 persons. 

(b) Provisions must be made for 

collection of refuse at least twice a 

week, or more often if necessary. The 

disposal of refuse, which includes 

garbage, must be in accordance with 

State and local law. 

§ 654.415 Insect and rodent control. 

Housing and facilities must be free of 

insects, rodents, and other vermin. 

§ 654.416 Sleeping facilities. 

(a) Sleeping facilities must be 

provided for each person. Such facilities 

must consist of comfortable beds, cots, 

or bunks, provided with clean 

mattresses. 

(b) Any bedding provided by the 

housing operator must be clean and 

sanitary. 

(c) Triple deck bunks may not be 

provided. 

(d) The clear space above the top of 

the lower mattress of a double deck 

bunk and the bottom of the upper bunk 

must be a minimum of 27 inches. The 

distance from the top of the upper 

mattress to the ceiling must be a 

minimum of 36 inches. 

(e) Beds used for double occupancy 

may be provided only in family 

accommodations. 

§ 654.417 Fire, safety, and first aid. 

(a) All buildings in which people 

sleep or eat must be constructed and 

maintained in accordance with 

applicable State or local fire and safety 

laws. 

(b) In family housing and housing 

units for less than 10 persons, of one 

story construction, two means of escape 

must be provided. One of the two 

required means of escape may be a 

readily accessible window with an 

openable space of not less than 24 × 24 

inches. 

(c) All sleeping quarters intended for 

use by 10 or more persons, central 

dining facilities, and common assembly 

rooms must have at least two doors 

remotely separated so as to provide 

alternate means of escape to the outside 

or to an interior hall. 

(d) Sleeping quarters and common 

assembly rooms on the second story 

must have a stairway, and a permanent, 

affixed exterior ladder or a second 

stairway. 

(e) Sleeping and common assembly 

rooms located above the second story 

must comply with the State and local 

fire and building codes relative to 

multiple story dwellings. 

(f) Fire extinguishing equipment must 

be provided in a readily accessible place 

located not more than 100 feet from 

each housing unit. Such equipment 

must provide protection equal to a 21⁄2

gallon stored pressure or 5-gallon pumptype water extinguisher. 

(g) First aid facilities must be 

provided and readily accessible for use 

at all time. Such facilities must be 

equivalent to the 16 unit first aid kit 

recommended by the American Red 

Cross, and provided in a ratio of 1 per 

50 persons. 

(h) No flammable or volatile liquids or 

materials must be stored in or adjacent 

to rooms used for living purposes, 

except for those needed for current 

household use. 

(i) Agricultural pesticides and toxic 

chemicals may not be stored in the 

housing area. 

■ 22. Revise part 658 to read as follows: 

PART 658—ADMINISTRATIVE 

PROVISIONS GOVERNING THE 

EMPLOYMENT SERVICE SYSTEM 

Subpart A–D—[Reserved] 

Subpart E—Employment Service and 

Employment-Related Law Complaint 

System (Complaint System) 

Sec. 

658.400 Purpose and scope of subpart. 

Complaints Filed at the Local and State 

Level 

658.410 Establishment of local and State 

complaint systems. 

658.411 Action on complaints. 

658.417 State hearings. 

658.418 Decision of the State hearing 

official. 

658.419 Apparent violations. 

When a Complaint Rises to the Federal Level 

658.420 Responsibilities of the Employment 

and Training Administration regional 

office. 

658.421 Handling of employment service 

regulation-related complaints. 

658.422 Handling of employment-related 

law complaints by the Regional 

Administrator. 

658.424 Proceedings before the Office of 

Administrative Law Judges. 

658.425 Decision of Department of Labor 

Administrative Law Judge. 

658.426 Complaints against the United 

States Employment Service. 

Subpart F—Discontinuation of Services to 

Employers by the Employment Service 

System 

658.500 Scope and purpose of subpart. 

658.501 Basis for discontinuation of 

services. 

658.502 Notification to employers. 

658.503 Discontinuation of services. 

658.504 Reinstatement of services. 


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Subpart G—Review and Assessment of 

State Agency Compliance With Employment 

Service Regulations 

658.600 Scope and purpose of subpart. 

658.601 State agency responsibility. 

658.602 Employment and Training 

Administration National Office 

responsibility. 

658.603 Employment and Training 

Administration regional office 

responsibility. 

658.604 Assessment and evaluation of 

program performance data. 

658.605 Communication of findings to State 

agencies. 

Subpart H—Federal Application of Remedial 

Action to State Agencies 

658.700 Scope and purpose of subpart. 

658.701 Statements of policy. 

658.702 Initial action by the Regional 

Administrator. 

658.703 Emergency corrective action. 

658.704 Remedial actions. 

658.705 Decision to decertify. 

658.706 Notice of decertification. 

658.707 Requests for hearings. 

658.708 Hearings. 

658.709 Conduct of hearings. 

658.710 Decision of the Administrative Law 

Judge. 

658.711 Decision of the Administrative 

Review Board. 

Authority: Pub. L. 113–128 secs. 189, 503; 

Wagner-Peyser Act, as amended by Pub. L. 

113–128 secs. 302–308, 29 U.S.C. 49 et seq. 

Subpart A–D—[Reserved] 

Subpart E—Employment Service and 

Employment-Related Law Complaint 

System (Complaint System) 

§ 658.400 Purpose and scope of subpart. 

(a) This subpart sets forth the 

regulations governing the Complaint 

System for the employment service 

system at the State and Federal levels. 

Specifically, the Complaint System 

handles complaints against an employer 

about the specific job to which the 

applicant was referred through the 

employment service system and 

complaints involving the failure to 

comply with the employment service 

regulations under this part. As noted 

below, this subpart only covers 

employment service-related complaints 

made within 2 years of the alleged 

violation. 

(b) Any complaints alleging violations 

under the Unemployment Insurance 

program, under WIOA title I programs, 

or complaints by veterans alleging 

employer violations of the mandatory 

listing requirements under 38 U.S.C. 

4212 are not covered by this subpart, 

rather they are referred to the 

appropriate administering agency which 

would follow the procedures set forth in 

the respective regulations. 

(c) The Complaint System also 

accepts, refers, and, under certain 

circumstances, tracks complaints 

involving employment-related laws as 

defined in 20 CFR 651.10. 

Complaints Filed at the Local and State 

Level 

§ 658.410 Establishment of local and State 

complaint systems. 

(a) Each State Workforce Agency 

(SWA) must establish and maintain a 

Complaint System pursuant to this 

subpart. 

(b) The State Administrator must have 

overall responsibility for the operation 

of the Complaint System. At the local 

employment service office level the 

manager must be responsible for the 

operation of the Complaint System. 

(c) SWAs must ensure that centralized 

control procedures are established for 

the processing of complaints. The 

manager of the local employment 

service office and the SWA 

Administrator must ensure that a central 

complaint log is maintained, listing all 

complaints taken by the local 

employment service office or the SWA, 

and specifying for each complaint: 

(1) The name of the complainant; 

(2) The name of the respondent 

(employer or State agency); 

(3) The date the complaint is filed; 

(4) Whether the complaint is by or on 

behalf of an MSFW; 

(5) Whether the complaint concerns 

an employment-related law or the 

employment services regulations; and 

(6) The action taken and whether the 

complaint has been resolved. 

(d) State agencies must ensure that 

information pertaining to the use of the 

Complaint System is publicized, which 

must include, but is not limited to, the 

prominent display of an ETA-approved 

Complaint System poster in each onestop center. 

(e) Each local employment service 

office must ensure that there is 

appropriate staff available during 

regular office hours to take complaints. 

(f) Complaints may be accepted in any 

local employment service office of the 

State employment service agency, or by 

a State Workforce Agency, or elsewhere 

by an outreach worker. 

(g) All complaints filed through the 

local employment service office must be 

handled by a trained Complaint System 

representative. 

(h) All complaints received by a SWA 

must be assigned to a State agency 

official designated by the State 

Administrator, provided that the State 

agency official designated to handle 

MSFW complaints must be the State 

monitor advocate (SMA). 

(i) State agencies must ensure that any 

action taken by the Complaint System 

representative, including referral, on a 

complaint from an MSFW is fully 

documented containing all relevant 

information, including a notation of the 

type of each complaint pursuant to 

Department guidance, a copy of the 

original complaint form, a copy of any 

employment service related reports, any 

relevant correspondence, a list of 

actions taken, a record of pertinent 

telephone calls and all correspondence 

relating thereto. 

(j) Within 1 month after the end of the 

calendar quarter, the employment 

service office manager must transmit an 

electronic copy of the quarterly 

Complaint System log described in 

paragraph (c) of this section to the SMA. 

These logs must be made available to 

the Department upon request. 

(k) The appropriate SWA or local 

employment office representative 

handling a complaint must offer to 

assist the complainant through the 

provision of appropriate services. 

(l) The State Administrator must 

establish a referral system for cases 

where a complaint is filed alleging a 

violation that occurred in the same State 

but through a different local 

employment service office. 

(m) Follow-up on unresolved 

complaints. When a complaint is 

submitted or referred to a SWA, the 

Complaint System representative (where 

the complainant is an MSFW, the 

Complaint System representative will be 

the SMA), must follow-up monthly 

regarding MSFW complaints and 

quarterly regarding non-MSFW 

complaints, and must inform the 

complainant of the status of the 

complaint periodically. 

§ 658.411 Action on complaints. 

(a) Filing complaints. (1) Whenever an 

individual indicates an interest in filing 

a complaint with a local employment 

service office or SWA representative, or 

an outreach worker, the individual 

receiving the complaint must offer to 

explain the operation of the Complaint 

System and must offer to take the 

complaint in writing. 

(2) During the initial discussion with 

the complainant, the staff taking the 

complaint must: 

(i) Make every effort to obtain all the 

information he/she perceives to be 

necessary to investigate the complaint; 

(ii) Request that the complainant 

indicate all of the physical addresses, 

email, and telephone numbers through 

which he/she might be contacted during 

the investigation of the complaint; 

(iii) Request that the complainant 

contact the Complaint System 


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representative before leaving the area if 

possible, and explain the need to 

maintain contact during the 

investigation. 

(3) The staff must ensure that the 

complainant submits the complaint on 

the Complaint/Referral Form prescribed 

or approved by the Department. The 

Complaint/Referral Form must be used 

for all complaints, including complaints 

about unlawful discrimination, except 

as provided in paragraph (a)(4) of this 

section. The staff must offer to assist the 

complainant in filling out the form, and 

must do so if the complainant desires 

such assistance. If the complainant also 

represents several other complainants, 

all such complainants must be named 

on the Complaint/Referral Form. The 

complainant must sign the completed 

form in writing or electronically. The 

identity of the complainant(s) and any 

persons who furnish information 

relating to, or assisting in, an 

investigation of a complaint must be 

kept confidential to the maximum 

extent possible, consistent with 

applicable law and a fair determination 

of the complaint. A copy of the 

completed Complaint/Referral Form 

must be given to the complainant(s), 

and the complaint form must be given 

to the appropriate Complaint System 

representative described in § 658.410 

(g). 

(4) Any complaint in a reasonable 

form (letter or email) which is signed by 

the complainant and includes sufficient 

information to initiate an investigation 

must be treated as if it were a properly 

completed Complaint/Referral Form 

filed in person. A letter (via hard copy 

or email) confirming that the complaint 

was received must be sent to the 

complainant and the document must be 

sent to the appropriate Complaint 

System representative. The Complaint 

System representative must request 

additional information from the 

complainant if the complaint does not 

provide sufficient information to 

investigate the matter expeditiously. 

(b) Complaints regarding an 

employment-related law. (1) When a 

complaint is filed regarding an 

employment-related law with a local 

employment service office or a SWA the 

office must determine if the 

complainant is an MSFW. 

(i) If the complainant is a non-MSFW, 

the office must immediately refer the 

complainant to the appropriate 

enforcement agency, another public 

agency, a legal aid organization, and/or 

a consumer advocate organization, as 

appropriate, for assistance. Upon 

completing the referral the local or State 

representative is not required to followup with the complainant. 

(ii) If the complainant is a MSFW, the 

local employment service office or SWA 

Complaint System representative must: 

(A) Take from the MSFW or his/her 

representative, in writing (hard copy or 

electronic), the complaint(s) describing 

the alleged violation(s) of the 

employment-related law(s); 

(B) Attempt to resolve the issue at the 

local level, except in cases where the 

complaint was submitted to the SWA 

and the SMA determines that he/she 

must take immediate action. 

Concurrently, the representative must 

offer to refer the MSFW to other 

employment services should the MSFW 

be interested. 

(C) If the issue is not resolved within 

5 business days, the representative must 

determine if the complaint should be 

referred to the appropriate enforcement 

agency, another public agency, a legal 

aid organization, or a consumer 

advocate organization, as appropriate, 

for further assistance. 

(D) If the local employment service 

office or SWA Complaint System 

representative determines that the 

complaint should be referred to a State 

or Federal agency, he/she must refer the 

complaint to the SMA who must 

immediately refer the complaint to the 

appropriate enforcement agency for 

prompt action. 

(E) If the complaint was referred to 

the SMA under paragraph (b)(1)(ii)(D) of 

this section, the representative must 

provide the SMA’s contact information 

to the complainant. The SMA must 

notify the complainant of the 

enforcement agency to which the 

complaint was referred. 

(2) If an enforcement agency makes a 

final determination that the employer 

violated an employment-related law and 

the complaint is connected to a job 

order, the SWA must initiate procedures 

for discontinuation of services 

immediately in accordance with subpart 

F. If this occurs, the SWA must notify 

the complainant and the employer of 

this action. 

(c) Complaints alleging a violation of 

rights under the Equal Employment 

Opportunity Commission Regulations. 

(1) All complaints received by a local 

employment service office alleging 

unlawful discrimination by race, color, 

religion, national origin, sex, sexual 

orientation, gender identity, age, 

disability, or genetic information, as 

well as reprisal for protected activity, 

the local Complaint System 

representative must refer the complaint 

to a local employment service Equal 

Opportunity (EO) representative and 

must notify the complainant of the 

referral in writing. 

(2) If the local employment service 

office does not have an EO 

representative, the complaint must be 

sent to the SWA for assignment to the 

State EO representative or, where 

appropriate, handled in accordance 

with the procedures set forth at 29 CFR 

part 31. 

(3) All such complaints initially 

received by the State Agency must be 

assigned to the State EO and, where 

appropriate, handled in accordance 

with the procedures set forth at 29 CFR 

part 31. 

(4) Regardless of whether the 

complaint is initially received or 

referred to the State agency, the State 

EO representative must determine if the 

complaint is alleging discrimination by 

an employer. If so, the State EO 

representative must refer the complaint 

to the Equal Employment Opportunity 

Commission (EEOC) or another 

appropriate enforcement agency. 

Complaints not referred must be subject 

to the hearing and appeal rights 

provided in this subpart. The Complaint 

System representative must notify the 

complainant of the referral in writing. 

(d) Complaints regarding the 

Employment Services Regulations (ES 

Complaints). (1) When an ES complaint 

is filed with a local employment service 

office or a SWA the following 

procedures apply: 

(i) When an ES complaint is filed 

against an employer, the proper office to 

handle the complaint is the local 

employment service office serving the 

area in which the employer is located. 

(ii) When a complaint is against an 

employer in another State or against 

another SWA: 

(A) The local employment service 

office or SWA receiving the complaint 

must send, after ensuring that the 

Complaint/Referral Form is adequately 

completed, a copy of the Complaint/ 

Referral Form and copies of any relevant 

documents to the SWA in the other 

State. Copies of the referral letter must 

be sent to the complainant, and copies 

of the complaint and referral letter must 

be sent to the ETA Regional Office(s) 

with jurisdiction over the transferring 

and receiving State agencies. All such 

copies must be sent via hard copy or 

electronic mail. 

(B) The SWA receiving the complaint 

must handle the complaint as if it had 

been initially filed with that SWA. 

(C) The ETA regional office with 

jurisdiction over the receiving SWA 

must follow-up with it to ensure the 

complaint is handled in accordance 

with these regulations. 

(D) If the complaint is against more 

than one SWA, the complaint must so 

clearly state. 


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(The complaint must be processed as 

separate complaints and must be 

handled according to procedures at 

paragraph (d) of this section.) 

(iii) When an ES complaint is filed 

against a local employment service 

office, the proper office to handle the 

complaint is the local employment 

service office serving the area in which 

the alleged violation occurred. 

(iv) When an ES complaint is filed 

against more than one local employment 

service office and is in regard to an 

alleged agency-wide violation the SWA 

representative or his/her designee must 

process the complaint. 

(v) When a complaint is filed alleging 

a violation that occurred in the same 

State but through a different local 

employment service office, the local 

employment service office where the 

complaint is filed must ensure that the 

Complaint/Referral Form is adequately 

completed and send the form to the 

appropriate local employment service 

office for tracking, further referral if 

necessary, and follow-up. A copy of the 

referral letter must be sent to the 

complainant via hard copy or electronic 

mail. 

(2)(i) If a complaint regarding the 

employment services regulations is filed 

in a local employment service office by 

either a non-MSFW or MSFW, or their 

representatives, the appropriate local 

employment service office Complaint 

System representative must investigate 

and attempt to resolve the complaint 

immediately upon receipt. 

(ii) If resolution has not been achieved 

to the satisfaction of the complainant 

within 15 working days after receipt of 

the complaint, or 5 working days with 

respect to complaints filed by or on 

behalf of MSFWs, the Complaint System 

representative must send the complaint 

to the SWA for resolution or further 

action, except that if the local 

employment service office has made a 

written request (via hard copy or 

electronic mail) for information 

pursuant to paragraph (e)(3) of this 

section. These time periods do not 

apply until the complainant’s response 

is received in accordance with 

paragraph (e)(3) of this section. 

(iii) The local employment service 

office must notify the complainant and 

the respondent, in writing (via hard 

copy or electronic mail), of the 

determination (pursuant to 

paragraph(d)(5) of this section) of its 

investigation under paragraph (d)(2)(i) 

of this section, or of the referral to the 

SWA (if referred). 

(3) When a non-MSFW or his/her 

representative files a complaint 

regarding the employment service 

regulations with a SWA, or when a nonMSFW complaint is referred from a 

local employment office the following 

procedures apply: 

(i) If the complaint is not transferred 

to an enforcement agency under 

paragraph (b)(1)(i) of this section the 

Complaint System representative must 

investigate and attempt to resolve the 

complaint immediately upon receipt. 

(ii) If resolution at the SWA level has 

not been accomplished within 30 

working days after the complaint was 

received by the SWA, whether the 

complaint was received directly or from 

a local employment service office 

pursuant to paragraph (d)(2)(ii) of this 

section, the SWA must make a written 

determination regarding the complaint 

and must send electronic copies to the 

complainant and the respondent except 

if the SWA has made a written request 

for information pursuant to paragraph 

(e)(3) of this section, this time period 

does not apply until the complainant’s 

response is received in accordance with 

paragraph (e)(3) of this section. The 

determination must follow the 

procedures set forth in paragraph (d)(5) 

of this section. 

(4)(i) When a MSFW or his/her 

representative files a complaint 

regarding the employment service 

regulations directly with a SWA, or 

when a MSFW complaint is referred 

from a local employment office, the 

SMA must investigate and attempt to 

resolve the complaint immediately upon 

receipt and may, if necessary, conduct 

a further investigation. 

(ii) If resolution at the SWA level has 

not been accomplished within 20 

business days after the complaint was 

received by the SWA, the SMA must 

make a written determination regarding 

the complaint and must send electronic 

copies to the complainant and the 

respondent except that if the SWA has 

made a written request for information 

pursuant to paragraph (a)(4) of this 

section, this time period does not apply 

until the complainant’s response is 

received in accordance with paragraph 

(e)(3) of this section. The determination 

must follow the procedures set forth in 

paragraph (d)(5) of this section. 

(5) Written Determinations. 

(i) All written determinations by local 

employment service or SWA officials on 

complaints under the employment 

services regulations must be sent by 

certified mail (or another legally viable 

method) and a copy of the 

determination may be sent via 

electronic mail. The determination must 

include all of the following: 

(A) The results of any SWA 

investigation; 

(B) The conclusions reached on the 

allegations of the complaint; 

(C) If a resolution was not reached, an 

explanation of why the complaint was 

not resolved; 

(D) If the complaint is against the 

SWA, an offer to the complainant of the 

opportunity to request, in writing, a 

hearing within 20 working days after the 

certified date of receipt of the 

notification. 

(ii) If the SWA determines that the 

employer has not violated the 

employment service regulations, the 

SWA must offer to the complainant the 

opportunity to request a hearing within 

20 working days after the certified date 

of receipt of the notification. 

(iii) If the SWA, within 20 working 

days from the certified date of receipt of 

the notification provided for in 

paragraph (d)(5) of this section, receives 

a written request (via hard copy or 

electronic mail) for a hearing, the SWA 

must refer the complaint to a State 

hearing official for hearing. The SWA 

must, in writing (via hard copy or 

electronic mail), notify the respective 

parties to whom the determination was 

sent that: 

(A) The parties will be notified of the 

date, time, and place of the hearing; 

(B) The parties may be represented at 

the hearing by an attorney or other 

representative; 

(C) The parties may bring witnesses 

and/or documentary evidence to the 

hearing; 

(D) The parties may cross-examine 

opposing witnesses at the hearing; 

(E) The decision on the complaint 

will be based on the evidence presented 

at the hearing; 

(F) The State hearing official may 

reschedule the hearing at the request of 

a party or its representative; and 

(G) With the consent of the SWA’s 

representative and of the State hearing 

official, the party who requested the 

hearing may withdraw the request for 

hearing in writing before the hearing. 

(iv) If the State agency makes a final 

determination that the employer who 

has or is currently using the 

employment service system has violated 

the employment service regulations, the 

determination, pursuant to paragraph 

(d)(5) of this section, must state that the 

State will initiate procedures for 

discontinuation of services to the 

employer in accordance with subpart F 

of this part. 

(6) A complaint regarding the 

employment service regulations must be 

handled to resolution by these 

regulations only if it is made within 2 

years of the alleged occurrence. 

(e) Resolution of complaints. A 

complaint is considered resolved when: 


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(1) The complainant indicates 

satisfaction with the outcome via 

written correspondence; 

(2) The complainant chooses not to 

elevate the complaint to the next level 

of review; 

(3) The complainant or the 

complainant’s authorized representative 

fails to respond within 20 working days 

or, in cases where the complainant is an 

MSFW, 40 working days of a written 

request by the appropriate local 

employment service office or State 

agency; 

(4) The complainant exhausts all 

available options for review; or 

(5) A final determination has been 

made by the enforcement agency to 

which the complaint was referred. 

§ 658.417 State hearings. 

(a) The hearing described in § 658.411 

must be held by State hearing officials. 

A State hearing official may be any State 

official authorized to hold hearings 

under State law. Examples of hearing 

officials are referees in State 

unemployment compensation hearings 

and officials of the State agency 

authorized to preside at State 

administrative hearings. 

(b) The State hearing official may 

decide to conduct hearings on more 

than one complaint concurrently if he/ 

she determines that the issues are 

related or that the complaints will be 

handled more expeditiously if 

conducted together. 

(c) The State hearing official, upon the 

referral of a case for a hearing, must: 

(1) Notify all involved parties of the 

date, time, and place of the hearing; and 

(2) Reschedule the hearing, as 

appropriate. 

(d) In conducting a hearing, the State 

hearing official must: 

(1) Regulate the course of the hearing; 

(2) Issue subpoenas if necessary, 

provided the official has the authority to 

do so under State law; 

(3) Ensure that all relevant issues are 

considered; 

(4) Rule on the introduction of 

evidence and testimony; and 

(5) Take all actions necessary to 

ensure an orderly proceeding. 

(e) All testimony at the hearing must 

be recorded and may be transcribed 

when appropriate. 

(f) The parties must be afforded the 

opportunity to present, examine, and 

cross-examine witnesses. 

(g) The State hearing official may 

elicit testimony from witnesses, but may 

not act as advocate for any party. 

(h) The State hearing official must 

receive and include in the record, 

documentary evidence offered by any 

party and accepted at the hearing. 

Copies thereof must be made available 

by the party submitting the document to 

other parties to the hearing upon 

request. 

(i) Federal and State rules of evidence 

do not apply to hearings conducted 

pursuant to this section; however rules 

or principles designed to assure 

production of the most credible 

evidence available and to subject 

testimony to test by cross-examination, 

must be applied where reasonably 

necessary by the State hearing official. 

The State hearing official may exclude 

irrelevant, immaterial, or unduly 

repetitious evidence. 

(j) The case record, or any portion 

thereof, must be available for inspection 

and copying by any party at, prior to, or 

subsequent to the hearing upon request. 

Special procedures may be used for 

disclosure of medical and psychological 

records such as disclosure to a 

physician designated by the individual. 

(k) The State hearing official must, if 

feasible, resolve the dispute at any time 

prior to the conclusion of the hearing. 

(l) At the State hearing official’s 

discretion, other appropriate 

individuals, organizations, or 

associations may be permitted to 

participate in the hearing as amicus 

curiae (friends of the court) with respect 

to any legal or factual issues relevant to 

the complaint. Any documents 

submitted by the amicus curiae must be 

included in the record. 

(m) If the parties to the hearing are 

located in more than one State or are 

located in the same State but access to 

the hearing location is extremely 

inconvenient for one or more parties as 

determined by the State hearing official, 

the hearing official must: 

(1) Whenever possible, hold a single 

hearing at a location convenient to all 

parties or their representatives wishing 

to appear and present evidence, with all 

such parties and/or their representatives 

present. 

(2) If a hearing location cannot be 

established by the State hearing official 

under paragraph (m)(1) of this section, 

the State hearing official may conduct, 

with the consent of the parties, the 

hearing by a telephone conference call 

from a State agency office. If the hearing 

is conducted via telephone conference 

call the parties and their representatives 

must have the option to participate in 

person or via telephone. 

(3) Where the State agency is not able, 

for any reason, to conduct a telephonic 

hearing under paragraph (m)(2) of this 

section, the State agencies in the States 

where the parties are located must take 

evidence and hold the hearing in the 

same manner as used for appealed 

interstate unemployment claims in 

those States, to the extent that such 

procedures are consistent with this 

section. 

§ 658.418 Decision of the State hearing 

official. 

(a) The State hearing official may: 

(1) Rule that it lacks jurisdiction over 

the case; 

(2) Rule that the complaint has been 

withdrawn properly in writing; 

(3) Rule that reasonable cause exists 

to believe that the request has been 

abandoned; 

(4) Render such other rulings as are 

appropriate to resolve the issues in 

question. However, the State hearing 

official does not have authority or 

jurisdiction to consider the validity or 

constitutionality of the employment 

service regulations or of the Federal 

statutes under which they are 

promulgated. 

(b) Based on the entire record, 

including the investigations and 

determinations of the local employment 

service offices and State agencies and 

any evidence provided at the hearing, 

the State hearing official must prepare a 

written decision. The State hearing 

official must send a copy of the decision 

stating the findings of fact and 

conclusions of law, and the reasons 

therefor to the complainant, the 

respondent, entities serving as amicus 

capacity (if any), the State agency, the 

Regional Administrator, and the 

Solicitor of Labor, Attn: Associate 

Solicitor for Employment and Training 

Legal Services, Department of Labor, 

room N2101, 200 Constitution Avenue 

NW., Washington, DC 20210. The 

notification to the complainant and 

respondent must be sent by certified 

mail or by other legally viable means. 

(c) All decisions of a State hearing 

official must be accompanied by a 

written notice informing the parties (not 

including the Regional Administrator, 

the Solicitor of Labor, or entities serving 

in an amicus capacity) that they may 

appeal the judge’s decision within 20 

working days of the certified date of 

receipt of the decision, file an appeal in 

writing with the Regional 

Administrator. The notice must give the 

address of the Regional Administrator. 

§ 658.419 Apparent violations. 

(a) If a State agency, local 

employment service office employee, or 

outreach worker, observes, has reason to 

believe, or is in receipt of information 

regarding a suspected violation of 

employment-related laws or 

employment service regulations by an 

employer, except as provided at 

§ 658.419 (field checks) or § 658.411 

(complaints), the employee must 


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document the suspected violation and 

refer this information to the local 

employment service office manager. 

(b) If the employer has filed a job 

order with the employment service 

office within the past 12 months, the 

local employment service office must 

attempt informal resolution provided at 

§ 658.411. 

(c) If the employer has not filed a job 

order with the local office during the 

past 12 months, the suspected violation 

of an employment-related law must be 

referred to the appropriate enforcement 

agency in writing. 

When a Complaint Rises to the Federal 

Level 

§ 658.420 Responsibilities of the 

Employment and Training Administration 

regional office. 

(a) Each Regional Administrator must 

establish and maintain a Complaint 

System within each ETA regional office. 

(b) The Regional Administrator must 

designate DOL officials to handle 

employment service regulation-related 

complaints as follows: 

(1) All complaints alleging 

discrimination by race, color, religion, 

national origin, sex, sexual orientation, 

gender identity, age, disability, or 

genetic information, as well as reprisal 

for protected activity, must be assigned 

to a Regional Director for Equal 

Opportunity and Special Review and, 

where appropriate, handled in 

accordance with procedures at 29 CFR 

part 31. 

(2) All complaints other than those 

described in paragraph (b)(1) of this 

section, must be assigned to a regional 

office official designated by the Regional 

Administrator, provided that the 

regional office official designated to 

handle MSFW complaints must be the 

regional monitor advocate (RMA). 

(c) The Regional Administrator must 

designate DOL officials to handle 

employment-related law complaints in 

accordance with § 658.411, provided 

that the regional official designated to 

handle MSFW employment-related law 

complaints must be the RMA. 

(d) The Regional Administrator must 

assure that all complaints and all related 

documents and correspondence are 

logged with a notation of the nature of 

each item. 

§ 658.421 Handling of employment service 

regulation-related complaints. 

(a)(1) No complaint alleging a 

violation of the employment service 

regulations must be handled at the ETA 

regional office level until the 

complainant has exhausted the SWA 

administrative remedies set forth at 

§§ 658.411 through 658.418. If the 

Regional Administrator determines that 

a complaint has been prematurely filed 

with an ETA regional office, the 

Regional Administrator must inform the 

complainant within 10 working days in 

writing that the complainant must first 

exhaust those remedies before the 

complaint may be filed in the regional 

office. A copy of this letter and a copy 

of the complaint must also be sent to the 

State Administrator. 

(2) If the Regional Administrator 

determines that the nature and scope of 

a complaint described in paragraph (a) 

of this section is such that the time 

required to exhaust the administrative 

procedures at the SWA level would 

adversely affect a significant number of 

individuals, the RA must accept the 

complaint and take the following action: 

(i) If the complaint is filed against an 

employer, the regional office must 

handle the complaint in a manner 

consistent with the requirements 

imposed upon State agencies by 

§§ 658.411 and 658.418. A hearing must 

be offered to the parties once the 

Regional Administrator makes a 

determination on the complaint. 

(ii) If the complaint is filed against a 

SWA, the regional office must follow 

procedures established at § 658.411(d). 

(b) The ETA regional office is 

responsible for handling appeals of 

determinations made on complaints at 

the SWA level. An appeal includes any 

letter or other writing which the 

Regional Administrator reasonably 

understands to be requesting review if it 

is received by the regional office and 

signed by a party to the complaint. 

(c)(1) Once the Regional 

Administrator receives a timely appeal 

he/she must request the complete SWA 

file, including the original Complaint/

Referral Form from the appropriate 

SWA. 

(2) The Regional Administrator must 

review the file in the case and must 

determine within 10 business days 

whether any further investigation or 

action is appropriate; however if the 

Regional Administrator determines that 

it needs to request legal advice from the 

Office of the Solicitor at the U.S. 

Department of Labor then the Regional 

Administrator may have 20 business 

days to make this determination. 

(d) If the Regional Administrator 

determines that no further action is 

warranted, the Regional Administrator 

must send his/her determination in 

writing to the appellant within 5 days 

of the determination and must offer the 

appellant a hearing before a DOL 

Administrative Law Judge (ALJ), 

provided the appellant requests such a 

hearing in writing from the Regional 

Administrator within 20 working days 

of the certified date of receipt of the 

Regional Administrator’s offer of 

hearing. 

(e) If the Regional Administrator 

determines that further investigation or 

other action is warranted, the Regional 

Administrator must undertake such an 

investigation or other action necessary 

to resolve the complaint. 

(f) After taking the actions described 

in paragraph (e) of this section, the 

Regional Administrator must either 

affirm, reverse, or modify the decision 

of the State hearing official, and must 

notify each party to the State hearing 

official’s hearing or to whom the State 

office determination was sent, notice of 

the determination and notify the parties 

that they may appeal the determination 

to the Department of Labor’s Office of 

Administrative Law Judges within 20 

business days of the party’s receipt of 

the notice. 

(g) If the Regional Administrator finds 

reason to believe that a SWA or one of 

its local employment service offices has 

violated ES regulations, the Regional 

Administrator must follow the 

procedures set forth at subpart H of this 

part. 

§ 658.422 Handling of employment-related 

law complaints by the Regional 

Administrator. 

(a) Each complaint filed by an MSFW 

alleging violation(s) of employmentrelated laws must be taken in writing, 

logged, and referred to the appropriate 

enforcement agency for prompt action. 

(b) Each complaint submitted by a 

non-MSFW alleging violation(s) of 

employment-related laws must be 

referred to the appropriate enforcement 

agency for prompt action. 

(c) Upon referring the complaint in 

accordance with paragraph (a) of this 

section, the regional official must 

inform the complainant of the 

enforcement agency (and individual, if 

known) to which the complaint was 

referred. 

§ 658.424 Proceedings before the Office of 

Administrative Law Judges. 

(a) If a party requests a hearing 

pursuant to § 658.417 or § 658.707, the 

Regional Administrator must: 

(1) Send the party requesting the 

hearing and all other parties to the prior 

State level hearing, a written notice 

(hard copy or electronic) containing the 

statements set forth at § 658.418(c); 

(2) Compile four hearing files (hard 

copy or electronic) containing copies of 

all documents relevant to the case, 

indexed and compiled chronologically; 

(3) Send simultaneously one hearing 

file to the DOL Chief Administrative 

Law Judge (ALJ), 800 K Street NW., 


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Suite 400, Washington, DC 20001–8002, 

one hearing file to the OWI 

Administrator, and one hearing file to 

the Solicitor of Labor, Attn: Associate 

Solicitor for Employment and Training 

Legal Services, and retain one hearing 

file. 

(b) Proceedings under this section are 

governed by the rules of practice and 

procedure at subpart A of 29 CFR part 

18, except where as otherwise specified 

in this section or § 658.425. 

(c) Upon the receipt of a hearing file, 

the ALJ designated to the case must 

notify the party requesting the hearing, 

all parties to the prior State hearing 

official hearing (if any), the State 

agency, the Regional Administrator, the 

OWI Administrator, and the Solicitor of 

Labor of the receipt of the case. After 

conferring all the parties, the ALJ may 

decide to make a determination on the 

record in lieu of scheduling a hearing. 

(d) The ALJ may decide to consolidate 

cases and conduct hearings on more 

than one complaint concurrently if he/ 

she determines that the issues are 

related or that the complaints will be 

handled more expeditiously. 

(e) If the parties to the hearing are 

located in more than one State or are 

located in the same State but access to 

the hearing location is extremely 

inconvenient for one or more parties as 

determined by the ALJ, the ALJ must: 

(1) Whenever possible, hold a single 

hearing, at a location convenient to all 

parties or their representatives wishing 

to appear and present evidence, with all 

such parties and/or their representatives 

present. 

(2) If a hearing location cannot be 

established by the ALJ at a location 

pursuant to paragraph (e)(1) of this 

section, the ALJ may conduct, with the 

consent of the parties, the hearing by a 

telephone conference call. If the hearing 

is conducted via telephone conference 

call the parties and their representatives 

must have the option to participate in 

person or via telephone. 

(3) Where the ALJ is unable, for any 

reason, to conduct a telephonic hearing 

under paragraph (e)(2) of this section, 

the ALJ must confer with the parties on 

how to proceed. 

(f) Upon deciding to hold a hearing, 

the ALJ must: 

(1) Notify all involved parties of the 

date, time and place of the hearing; and 

(2) Reschedule the hearing, as 

appropriate. 

(g) The parties to the hearing must be 

afforded the opportunity to present, 

examine, and cross-examine witnesses. 

The ALJ may elicit testimony from 

witnesses, but may not act as advocate 

for any party. 

(h) The ALJ must receive, and make 

part of the record, documentary 

evidence offered by any party and 

accepted at the hearing, provided that 

copies of such evidence is provided to 

the other parties to the proceeding prior 

to the hearing at the time required by 

the ALJ and agreed to by the parties. 

(i) Technical rules of evidence do not 

apply to hearings conducted pursuant to 

this part, but rules or principles 

designed to assure production of the 

most credible evidence available and to 

subject testimony to test by crossexamination must be applied where 

reasonably necessary by the ALJ 

conducting the hearing. The ALJ may 

exclude irrelevant, immaterial, or 

unduly repetitious evidence. 

(j) The case record, or any portion 

thereof, must be available for inspection 

and copying by any party to the hearing 

at, prior to, or subsequent to the hearing 

upon request. Special procedures may 

be used for disclosure of medical and 

psychological records such as disclosure 

to a physician designated by the 

individual concerned. 

(k) The ALJ must, if feasible, 

encourage resolution of the dispute by 

conciliation at any time prior to the 

conclusion of the hearing. 

§ 658.425 Decision of Department of Labor 

Administrative Law Judge. 

(a) The ALJ may: 

(1) Rule that he/she they lacks 

jurisdiction over the case; 

(2) Rule that the appeal has been 

withdrawn, with the written consent of 

all parties; 

(3) Rule that reasonable cause exists 

to believe that the appeal has been 

abandoned; or 

(4) Render such other rulings as are 

appropriate to the issues in question. 

However, the ALJ does not have 

jurisdiction to consider the validity or 

constitutionality of the employment 

service regulations or of the Federal 

statutes under which they are 

promulgated. 

(b) Based on the entire record, 

including any legal briefs, the record 

before the State agency, the 

investigation (if any) and determination 

of the Regional Administrator, and 

evidence provided at the hearing, the 

ALJ must prepare a written decision. 

The ALJ must send a copy of the 

decision stating the findings of fact and 

conclusions of law to the parties to the 

hearing, including the State agency, the 

Regional Administrator, the OWI 

Administrator, and the Solicitor, and to 

entities filing amicus briefs (if any). 

(c) The decision of the ALJ serves as 

the final decision of the Secretary. 

§ 658.426 Complaints against the United 

States Employment Service. 

(a) Complaints alleging that an ETA 

regional office or the National Office of 

the United States Employment Service 

(USES) has violated ES regulations 

should be mailed to the Assistant 

Secretary for Employment and Training, 

U.S. Department of Labor, Washington, 

DC 20210. Such complaints should 

include: 

(1) A specific allegation of the 

violation; 

(2) The date of the incident; 

(3) Location of the incident; 

(4) The individual alleged to have 

committed the violation; and 

(5) Any other relevant information 

available to the complainant. 

(b) The Assistant Secretary or the 

Regional Administrator as designated 

must make a determination and respond 

to the complainant after investigation of 

the complaint. 

Subpart F—Discontinuation of 

Services to Employers by the 

Employment Service System 

§ 658.500 Scope and purpose of subpart. 

This subpart contains the regulations 

governing the discontinuation of 

services provided pursuant to 20 CFR 

part 653 to employers by the USES, 

including SWAs. 

§ 658.501 Basis for discontinuation of 

services. 

(a) The State agency must initiate 

procedures for discontinuation of 

services to employers who: 

(1) Submit and refuse to alter or 

withdraw job orders containing 

specifications which are contrary to 

employment-related laws; 

(2) Submit job orders and refuse to 

provide assurances, in accordance with 

the Agricultural Recruitment System 

U.S. Workers at 20 CFR 653 subpart F, 

that the jobs offered are in compliance 

with employment-related laws, or to 

withdraw such job orders; 

(3) Are found through field checks or 

otherwise to have either misrepresented 

the terms or conditions of employment 

specified on job orders or failed to 

comply fully with assurances made on 

job orders; 

(4) Are found by a final determination 

by an appropriate enforcement agency 

to have violated any employmentrelated laws and notification of this 

final determination has been provided 

to the ES by that enforcement agency; 

(5) Are found to have violated ES 

regulations pursuant to § 658.411; 

(6) Refuse to accept qualified workers 

referred through the clearance system; 


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(7) Refuse to cooperate in the conduct 

of field checks conducted pursuant to 

§ 653.503; or 

(8) Repeatedly cause the initiation of 

the procedures for discontinuation of 

services pursuant to paragraphs (a)(1) 

through (7) of this section. 

(b) The SWA may discontinue 

services immediately if, in the judgment 

of the State Administrator, exhaustion 

of the administrative procedures set 

forth in this subpart in paragraphs (a)(1) 

through (7) of this section would cause 

substantial harm to a significant number 

of workers. In such instances, 

procedures at §§ 658.503 et seq. must be 

followed. 

(c) If it comes to the attention of a 

local employment service office or SWA 

that an employer participating in the 

employment service system may not 

have complied with the terms of its 

temporary labor certification, under, for 

example the H–2A and H–2B visa 

programs, State agencies must engage in 

the procedures for discontinuation of 

services to employers pursuant to 

paragraphs (a)(1) through (a)(8) of this 

section and simultaneously notify the 

Chicago National Processing Center 

(CNPC) of the alleged non-compliance 

for investigation and consideration of 

ineligibility pursuant to 20 CFR 655.184 

or 20 CFR 655.73 respectively for 

subsequent temporary labor 

certification. 

§ 658.502 Notification to employers. 

(a) The SWA must notify the 

employer in writing that it intends to 

discontinue the provision of ES services 

pursuant to 20 CFR parts 652, 653, 654, 

and 658, and the reason therefore: 

(1) Where the decision is based on 

submittal and refusal to alter or to 

withdraw job orders containing 

specifications contrary to employmentrelated laws, the SWA must specify the 

date the order was submitted, the job 

order involved, the specifications 

contrary to employment-related laws 

and the laws involved. The employer 

must be notified in writing that all ES 

services will be terminated in 20 

working days unless the employer 

within that time: 

(i) Provides adequate evidence that 

the specifications are not contrary to 

employment-related laws, or 

(ii) Withdraws the specifications and 

resubmits the job order in compliance 

with all employment-related laws, or 

(iii) If the job is no longer available 

makes assurances that all future job 

orders submitted will be in compliance 

with all employment-related laws, or 

(iv) Requests a hearing from the SWA 

pursuant to § 658.417. 

(2) Where the decision is based on the 

employer’s submittal of an order and 

refusal to provide assurances that the 

job is in compliance with employmentrelated laws or to withdraw the order, 

the SWA must specify the date the order 

was submitted, the job order involved 

and the assurances involved. The 

employer must be notified that all ES 

services will be terminated within 20 

working days unless the employer 

within that time: 

(i) Resubmits the order with the 

appropriate assurances; 

(ii) If the job is no longer available, 

make assurances that all future job 

orders submitted will contain all 

necessary assurances that the job offered 

is in compliance with employmentrelated laws; or 

(iii) Requests a hearing from the SWA 

pursuant to § 658.417. 

(3) Where the decision is based on a 

finding that the employer has 

misrepresented the terms or conditions 

of employment specified on job orders 

or failed to comply fully with 

assurances made on job orders, the State 

agency must specify the basis for that 

determination. The employer must be 

notified that all ES services will be 

terminated in 20 working days unless 

the employer within that time: 

(i) Provides adequate evidence that 

terms and conditions of employment 

were not misrepresented; or 

(ii) Provides adequate evidence that 

there was full compliance with the 

assurances made on the job orders; or 

(iii) Provides resolution of a 

complaint which is satisfactory to a 

complainant referred by the ES; and 

(iv) Provides adequate assurance that 

specifications on future orders will 

accurately represent the terms and 

conditions of employment and that 

there will be full compliance with all 

job order assurances; or 

(v) Requests a hearing from the SWA 

pursuant to § 658.417. 

(4) Where the decision is based on a 

final determination by an enforcement 

agency, the SWA must specify the 

enforcement agency’s findings of facts 

and conclusions of law. The employer 

must be notified that all ES services will 

be terminated in 20 working days unless 

the employer within that time: 

(i) Provides adequate evidence that 

the enforcement agency has reversed its 

ruling and that the employer did not 

violate employment-related laws; or 

(ii) Provides adequate evidence that 

the appropriate fines have been paid 

and/or appropriate restitution has been 

made; and 

(iii) Provides assurances that any 

policies, procedures, or conditions 

responsible for the violation have been 

corrected and the same or similar 

violations are not likely to occur in the 

future. 

(5) Where the decision is based on a 

finding of a violation of ES regulations 

under § 658.411, the SWA must specify 

the finding. The employer must be 

notified that all ES services will be 

terminated in 20 working days unless 

the employer within that time: 

(i) Provides adequate evidence that 

the employer did not violate ES 

regulations; or 

(ii) Provides adequate evidence that 

appropriate restitution has been made or 

remedial action taken; and 

(iii) Provides assurances that any 

policies, procedures, or conditions 

responsible for the violation have been 

corrected and the same or similar 

violations are not likely to occur in the 

future; or 

(iv) Requests a hearing from the SWA 

pursuant to § 658.417. 

(6) Where the decision is based on an 

employer’s failure to accept qualified 

workers referred through the clearance 

system, the SWA must specify the 

workers referred and not accepted. The 

employer must be notified that all ES 

services will be terminated in 20 

working days unless the employer 

within that time: 

(i) Provides adequate evidence that 

the workers were accepted; or 

(ii) Provides adequate evidence that 

the workers were not available to accept 

the job; or 

(iii) Provides adequate evidence that 

the workers were not qualified; and 

(iv) Provides adequate assurances that 

qualified workers referred in the future 

will be accepted; or 

(v) Requests a hearing from the SWA 

pursuant to § 658.417. 

(7) Where the decision is based on 

lack of cooperation in the conduct of 

field checks, the SWA must specify the 

lack of cooperation. The employer must 

be notified that all ES services will be 

terminated in 20 working days unless 

the employer within that time: 

(i) Provides adequate evidence that 

he/she did cooperate; or 

(ii) Cooperates immediately in the 

conduct of field checks; and 

(iii) Provides assurances that he/she 

will cooperate in future field checks in 

further activity; or 

(iv) Requests a hearing from the SWA 

pursuant to § 658.417. 

(b) If the employer chooses to respond 

pursuant to this section by providing 

documentary evidence or assurances, 

he/she must at the same time request a 

hearing if such hearing is desired in the 

event that the State agency does not 

accept the documentary evidence or 

assurances as adequate. 


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(c) Where the decision is based on 

repeated initiation of procedures for 

discontinuation of services, the 

employer must be notified that services 

have been terminated. 

(d) If the employer makes a timely 

request for a hearing, in accordance 

with this section, the SWA must follow 

procedures set forth at § 658.411 and 

notify the complainant whenever the 

discontinuation of services is based on 

a complaint pursuant to § 658.411. 

§ 658.503 Discontinuation of services. 

(a) If the employer does not provide 

a satisfactory response in accordance 

with § 658.502, within 20 working days, 

or has not requested a hearing, the SWA 

must immediately terminate services to 

the employer. 

(b) If services are discontinued to an 

employer subject to Federal Contractor 

Job Listing Requirements, the SWA 

must notify the ETA regional office 

immediately. 

§ 658.504 Reinstatement of services. 

(a) Services may be reinstated to an 

employer after discontinuation under 

§ 658.502, if: 

(1) The State is ordered to do so by 

a Federal ALJ Judge or Regional 

Administrator, or 

(2)(i) The employer provides adequate 

evidence that any policies, procedures 

or conditions responsible for the 

previous discontinuation of services 

have been corrected and that the same 

or similar circumstances are not likely 

to occur in the future, and 

(ii) The employer provides adequate 

evidence that he/she has responded 

adequately to any findings of an 

enforcement agency, State ES agency, or 

USES, including restitution to the 

complainant and the payment of any 

fines, which were the basis of the 

discontinuation of services. 

(b) The SWA must notify, the 

employer requesting reinstatement 

within 20 working days whether his/her 

request has been granted. If the State 

denies the request for reinstatement, the 

basis for the denial must be specified 

and the employer must be notified that 

he/she may request a hearing within 20 

working days. 

(c) If the employer makes a timely 

request for a hearing, the SWA must 

follow the procedures set forth at 

§ 658.417. 

(d) The SWA must reinstate services 

to an employer if ordered to do so by a 

State hearing official, Regional 

Administrator, or Federal ALJ as a result 

of a hearing offered pursuant to 

paragraph (c) of this section. 

Subpart G—Review and Assessment 

of State Agency Compliance With 

Employment Service Regulations 

§ 658.600 Scope and purpose of subpart. 

This subpart sets forth the regulations 

governing review and assessment of 

State Workforce Agency (SWA) 

compliance with the Employment 

Service regulations at 20 CFR parts 651, 

652, 653, 654, and 658. All 

recordkeeping and reporting 

requirements contained in parts 653 and 

658 have been approved by the Office of 

Management and Budget as required by 

the Federal Reports Act of 1942. 

§ 658.601 State agency responsibility. 

(a) Each State agency must establish 

and maintain a self-appraisal system for 

employment service operations to 

determine success in reaching goals and 

to correct deficiencies in performance. 

The self-appraisal system must include 

numerical (quantitative) appraisal and 

non-numerical (qualitative) appraisal. 

(1) Numerical appraisal at the local 

employment service office level must be 

conducted as follows: 

(i) Performance must be measured on 

a quarterly-basis against planned service 

levels as stated in the Unified State 

Plan. The State Plan must be consistent 

with numerical goals contained in local 

employment service office plans. 

(ii) To appraise numerical activities/

indicators, actual results as shown on 

the Department’s ETA 9002A report, or 

any successor report required by the 

Department must be compared to 

planned levels. Differences between 

achievement and plan levels must be 

identified. 

(iii) When the numerical appraisal of 

required activities/indicators identifies 

significant differences from planned 

levels, additional analysis must be 

conducted to isolate possible 

contributing factors. This data analysis 

must include, as appropriate, 

comparisons to past performance, 

attainment of Unified State Plan goals 

and consideration of pertinent nonnumerical factors. 

(iv) Results of local employment 

service office numerical reviews must 

be documented and significant 

deficiencies identified. A corrective 

action plan as described in paragraph 

(a)(6) of this section must be developed 

to address these deficiencies. 

(v) The result of local employment 

service office appraisal, including 

corrective action plans, must be 

communicated in writing to the next 

higher level of authority for review. This 

review must cover adequacy of analysis, 

appropriateness of corrective actions, 

and need for higher level involvement. 

When this review is conducted at an 

area or district office, a report describing 

local employment service office 

performance within the area or district 

jurisdiction must be communicated to 

the SWA on a quarterly basis. 

(2) Numerical appraisal at the SWA 

level must be conducted as follows: 

(i) Performance must be measured on 

a quarterly basis against planned service 

levels as stated in the Unified State 

Plan. The State Plan must be consistent 

with numerical goals contained in local 

employment service office plans. 

(ii) To appraise these key numerical 

activities/indicators, actual results as 

shown on the ETA 9002A report, or any 

successor report required by DOL must 

be compared to planned levels. 

Differences between achievement and 

plan levels must be identified. 

(iii) The SWA must review statewide 

data, and performance against planned 

service levels as stated in the Unified 

State Plan on at least a quarterly basis 

to identify significant statewide 

deficiencies and to determine the need 

for additional analysis, including 

identification of trends, comparisons to 

past performance, and attainment of 

Unified State Plan goals. 

(iv) Results of numerical reviews must 

be documented and significant 

deficiencies identified. A corrective 

action plan as described in paragraph 

(a)(5) of this section must be developed 

to address these deficiencies. These 

plans must be submitted to the ETA 

Regional Office as part of the periodic 

performance process described at 

§ 658.603(d)(2). 

(3) Non-numerical (qualitative) 

appraisal of local employment service 

office activities must be conducted at 

least annually as follows: 

(i) Each local employment service 

office must assess the quality of its 

services to applicants, employers, and 

the community and its compliance with 

Federal regulations. 

(ii) At a minimum, non-numerical 

review must include an assessment of 

the following factors: 

(A) Appropriateness of services 

provided to participants and employers; 

(B) Timely delivery of services to 

participants and employers; 

(C) Staff responsiveness to individual 

participants and employer needs; 

(D) Thoroughness and accuracy of 

documents prepared in the course of 

service delivery; and 

(E) Effectiveness of ES interface with 

external organizations, i.e., other ETAfunded programs, community groups, 

etc. 

(iii) Non-numerical review methods 

must include: 

(A) Observation of processes; 


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(B) Review of documents used in 

service provisions; and 

(C) Solicitation of input from 

applicants, employers, and the 

community. 

(iv) The result of non-numerical 

reviews must be documented and 

deficiencies identified. A corrective 

action plan that addresses these 

deficiencies as described in paragraph 

(a)(6) of this section must be developed. 

(v) The result of local employment 

service office non-numerical appraisal, 

including corrective actions, must be 

communicated in writing to the next 

higher level of authority for review. This 

review must cover thoroughness and 

adequacy of local employment service 

office appraisal, appropriateness of 

corrective actions, and need for higher 

level involvement. When this review is 

conducted at an area or district level, a 

report summarizing local employment 

service office performance within that 

jurisdiction must be communicated to 

the SWA on an annual basis. 

(4) As part of its oversight 

responsibilities, the SWA must conduct 

onsite reviews in those local 

employment service offices which show 

continuing internal problems or 

deficiencies in performance as indicated 

by such sources as data analysis, nonnumerical appraisal, or other sources of 

information. 

(5) Non-numerical (qualitative) review 

of SWA employment service activities 

must be conducted as follows: 

(i) SWA operations must be assessed 

annually to determine compliance with 

Federal regulations. 

(ii) Results of non-numerical reviews 

must be documented and deficiencies 

identified. A corrective action plan that 

addresses these deficiencies must be 

developed. 

(6) Corrective action plans developed 

to address deficiencies uncovered at any 

administrative level within the State as 

a result of the self-appraisal process 

must include: 

(i) Specific descriptions of the type of 

action to be taken, the time frame 

involved and the assignment of 

responsibility. 

(ii) Provision for the delivery of 

technical assistance as needed. 

(iii) A plan to conduct follow-up on 

a timely basis to determine if action 

taken to correct the deficiencies has 

been effective. 

(7)(i) The provisions of the ES 

regulations which require numerical 

and non-numerical assessment of 

service to special applicant groups, e.g., 

services to veterans at 20 CFR part 

1001—Services for Veterans and 

services to MSFWs at 20 CFR 653 and 

658, are supplementary to the 

provisions of this section. 

(ii) Each State Administrator and local 

employment service office manager 

must ensure that their staff know and 

carry out ES regulations, including 

regulations on performance standards 

and program emphases, and any 

corrective action plans imposed by the 

SWA or by the Department. 

(iii) Each State Administrator must 

ensure that the SWA complies with its 

approved Unified State Plan. 

(iv) Each State Administrator must 

ensure to the maximum extent feasible 

the accuracy of data entered by the SWA 

into Department-required management 

information systems. Each SWA must 

establish and maintain a data validation 

system pursuant to Department 

instructions. The system must review 

every local employment service office at 

least once every 4 years. The system 

must include the validation of time 

distribution reports and the review of 

data gathering procedures. 

§ 658.602 Employment and Training 

Administration National Office 

responsibility. 

The ETA National Office must: 

(a) Monitor ETA Regional Offices’ 

operations under ES regulations; 

(b) From time to time, conduct such 

special reviews and audits as necessary 

to monitor ETA regional office and SWA 

compliance with ES regulations; 

(c) Offer technical assistance to the 

ETA regional offices and SWAs in 

carrying out ES regulations and 

programs; 

(d) Have report validation surveys 

conducted in support of resource 

allocations; 

(e) Develop tools and techniques for 

reviewing and assessing SWA 

performance and compliance with ES 

regulations. 

(f) ETA must appoint a national 

monitor advocate (NMA), who must 

devote full time to the duties set forth 

in this subpart. The NMA must: 

(1) Review the effective functioning of 

the Regional monitor advocates (RMAs) 

and SMAs; 

(2) Review the performance of SWAs 

in providing the full range of ES 

services to MSFWs; 

(3) Take steps to resolve or refer ESrelated problems of MSFWs which come 

to his/her attention; 

(4) Take steps to refer non ES-related 

problems of MSFWs which come to his/ 

her attention; 

(5) Recommend to the Administrator 

changes in policy toward MSFWs; and 

(6) Serve as an advocate to improve 

services for MSFWs within the 

employment service system. The NMA 

must be a member of the National Farm 

Labor Coordinated Enforcement Staff 

Level Working Committee and/or other 

OSHA and WHD task forces, and/or 

other committees as appropriate. 

(g) The NMA must be appointed by 

the Office of Workforce Investment 

Administrator (Administrator) after 

informing farmworker organizations and 

other organizations with expertise 

concerning MSFWs of the opening and 

encouraging them to refer qualified 

applicants to apply through the Federal 

merit system. Among qualified 

candidates, determined through merit 

systems procedures, individuals must 

be sought who meet the criteria used in 

the selection of the SMAs, as provided 

in 20 CFR 653.108(b). 

(h) The NMA must be assigned staff 

necessary to fulfill effectively all the 

responsibilities set forth in this subpart. 

(i) The NMA must submit an annual 

report (Annual Report) to the OWI 

Administrator, the ETA Assistant 

Secretary, and the National Farm Labor 

Coordinated Enforcement Committee 

covering the matters set forth in this 

subpart. 

(j) The NMA must monitor and assess 

SWA compliance with ES regulations 

affecting MSFWs on a continuing basis. 

His/her assessment must consider: 

(1) Information from RMAs and 

SMAs; 

(2) Program performance data, 

including the service indicators; 

(3) Periodic reports from regional 

offices; 

(4) All Federal on-site reviews; 

(5) Selected State on-site reviews; 

(6) Other relevant reports prepared by 

USES; 

(7) Information received from 

farmworker organizations and 

employers; and 

(8) His/her personal observations from 

visits to State ES offices, agricultural 

work sites and migrant camps. In the 

annual report, the NMA must include 

both a quantitative and qualitative 

analysis of his/her findings and the 

implementation of his/her 

recommendations by State and Federal 

officials, and must address the 

information obtained from all of the 

foregoing sources. 

(k) The NMA must review the 

activities of the State/Federal 

monitoring system as it applies to 

services to MSFWs and the Complaint 

System including the effectiveness of 

the regional monitoring function in each 

region and must recommend any 

appropriate changes in the operation of 

the system. The NMA’s findings and 

recommendations must be fully set forth 

in the annual report. 


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(l) If the NMA finds that the 

effectiveness of any RMA has been 

substantially impeded by the Regional 

Administrator or other Regional Office 

official, he/she must, if unable to 

resolve such problems informally, 

report and recommend appropriate 

actions directly to the OWI 

Administrator. If the NMA receives 

information that the effectiveness of any 

SMA has been substantially impeded by 

the State Administrator or other State or 

Federal ES official, he/she must, in the 

absence of a satisfactory informal 

resolution at the regional level, report 

and recommend appropriate actions 

directly to the OWI Administrator. 

(m) The NMA must be informed of all 

proposed changes in policy and practice 

within USES, including ES regulations, 

which may affect the delivery of 

services to MSFWs. The NMA must 

advise the Administrator concerning all 

such proposed changes which may 

adversely affect MSFWs. The NMA 

must propose directly to the OWI 

Administrator changes in ES policy and 

administration which may substantially 

improve the delivery of services to 

MSFWs. He/she must also recommend 

changes in the funding of SWAs and/or 

adjustment or reallocation of the 

discretionary portions of funding 

formulae. 

(n) The NMA must participate in the 

review and assessment activities 

required in this section and §§ 658.700 

et seq. As part of such participation, the 

NMA, or if he/she is unable to 

participate a RMA must accompany the 

National Office review team on National 

Office on-site reviews. The NMA must 

engage in the following activities in the 

course of each State on-site review: 

(1) He/she must accompany selected 

outreach workers on their field visits. 

(2) He/she must participate in a 

random field check[s] of migrant camps 

or work site[s] where MSFWs have been 

placed on inter or intrastate clearance 

orders. 

(3) He/she must contact local WIOA 

sec. 167 National Farmworker Jobs 

Program grantees or other farmworker 

organizations as part of the on-site 

review, and, discuss with 

representatives of these organizations 

current trends and any other pertinent 

information concerning MSFWs. 

(4) He/she must meet with the SMA 

and discuss the full range of the ES 

services to MSFWs, including 

monitoring and the Complaint System. 

(o) In addition to the duties specified 

in paragraph (f)(8) of this section, the 

NMA each year during the harvest 

season must visit the four States with 

the highest level of MSFW activity 

during the prior fiscal year, if they are 

not scheduled for a National Office onsite review during the current fiscal 

year, and must: 

(1) Meet with the SMA and other 

SWA staff to discuss MSFW service 

delivery, and 

(2) Contact representatives of MSFW 

organizations and interested employer 

organizations to obtain information 

concerning ES service delivery and 

coordination with other agencies. 

(p) The NMA must perform duties 

specified in §§ 658.700 et seq. As part of 

this function, he/she must monitor the 

performance of regional offices in 

imposing corrective action. The NMA 

must report any deficiencies in 

performance to the Administrator. 

(q) The NMA must establish routine 

and regular contacts with WIOA sec. 

167 National Farmworker Jobs Program 

grantees, other farmworker 

organizations and agricultural 

employers and/or employer 

organizations. He/she must attend 

conferences or meetings of these groups 

wherever possible and must report to 

the Administrator and the National 

Farm Labor Coordinated Enforcement 

Committee on these contacts when 

appropriate. The NMA must include in 

the annual report recommendations as 

to how the Department might better 

coordinate ES and WIOA sec. 167 

National Farmworker Jobs Program 

services as they pertain to MSFWs. 

(r) In the event that any SMA or RMA, 

enforcement agency or MSFW group 

refers a matter to the NMA which 

requires emergency action, he/she must 

assist them in obtaining action by 

appropriate agencies and staff, inform 

the originating party of the action taken, 

and, upon request, provide written 

confirmation. 

(s) Through all the mechanisms 

provided in this subpart, the NMA must 

aggressively seek to ascertain and 

remedy, if possible, systemic 

deficiencies in the provisions of ES 

services and protections afforded by 

these regulations to MSFWs. The NMA 

must: 

(1) Use the regular reports on 

complaints submitted by SWAs and 

ETA regional offices to assess the 

adequacy of these systems and to 

determine the existence of systemic 

deficiencies. 

(2) Provide technical assistance to 

ETA regional office and State agency 

staff for administering the Complaint 

System, and any other ES services as 

appropriate. 

(3) Recommend to the Administrator 

specific instructions for action by 

regional office staff to correct any ESrelated systemic deficiencies. Prior to 

any ETA review of regional office 

operations concerning ES services to 

MSFWs, the NMA must provide to the 

Administrator a brief summary of ESrelated services to MSFWs in that region 

and his/her recommendations for 

incorporation in the regional review 

materials as the Administrator and ETA 

reviewing organization deem 

appropriate. 

(4) Recommend to the National Farm 

Labor Coordinated Enforcement 

Committee specific instructions for 

action by WHD and OSHA regional 

office staff to correct any non-ES-related 

systemic deficiencies of which he/she is 

aware. 

§ 658.603 Employment and Training 

Administration regional office 

responsibility. 

(a) The Regional Administrator must 

have responsibility for the regular 

review and assessment of SWA 

performance and compliance with ES 

regulations. 

(b) The Regional Administrator must 

participate with the National Office staff 

in reviewing and approving the Unified 

State Plan for the SWAs within the 

region. In reviewing the Unified State 

Plans the Regional Administrator and 

appropriate National Office staff must 

consider relevant factors including the 

following: 

(1) State agency compliance with ES 

regulations; 

(2) State agency performance against 

the goals and objectives established in 

the previous Unified State Plan; 

(3) The effect which economic 

conditions and other external factors 

considered by the ETA in the resource 

allocation process may have had or are 

expected to have on the SWA’s 

performance; 

(4) State agency adherence to national 

program emphasis; and 

(5) The adequacy and appropriateness 

of the Unified State Plan for carrying out 

ES programs. 

(c) The Regional Administrator must 

assess the overall performance of SWAs 

on an ongoing basis through desk 

reviews and the use of required 

reporting systems and other available 

information. 

(d) As appropriate, Regional 

Administrators must conduct or have 

conducted: 

(1) Comprehensive on-site reviews of 

SWAs and their offices to review SWA 

organization, management, and program 

operations; 

(2) Periodic performance reviews of 

SWA operation of ES programs to 

measure actual performance against the 

Unified State Plan, past performance, 

the performance of other SWAs, etc.; 

(3) Audits of SWA programs to review 

their program activity and to assess 


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whether the expenditure of grant funds 

has been in accordance with the 

approved budget. Regional 

Administrators may also conduct audits 

through other agencies or organizations 

or may require the SWA to have audits 

conducted; 

(4) Validations of data entered into 

management information systems to 

assess: 

(i) The accuracy of data entered by the 

SWAs into the management information 

system; 

(ii) Whether the SWAs’ data 

validating and reviewing procedures 

conform to Department instructions; 

and 

(iii) Whether SWAs have 

implemented any corrective action 

plans required by the Department to 

remedy deficiencies in their validation 

programs; 

(5) Technical assistance programs to 

assist SWAs in carrying out ES 

regulations and programs; 

(6) Reviews to assess whether the 

SWA has complied with corrective 

action plans imposed by the Department 

or by the SWA itself; and 

(7) Random, unannounced field 

checks of a sample of agricultural work 

sites to which ES placements have been 

made through the clearance system to 

determine and document whether 

wages, hours, working and housing 

conditions are as specified on the job 

order. If regional office staff find reason 

to believe that conditions vary from job 

order specifications, findings should be 

documented on the ES Complaint 

Referral Form and provided to the State 

agency to be handled as a complaint 

under § 658.411. 

(e) The Regional Administrator must 

provide technical assistance to SWAs to 

assist them in carrying out ES 

regulations and programs. 

(f) The Regional Administrator must 

appoint a RMA who must devote full 

time to the duties set forth in this 

subpart. The RMA must: 

(1) Review the effective functioning of 

the SMAs in his/her region; 

(2) Review the performance of SWAs 

in providing the full range of ES 

services to MSFWs; 

(3) Take steps to resolve ES-related 

problems of MSFWs which come to his/ 

her attention; 

(4) Recommend to the Regional 

Administrator changes in policy 

towards MSFWs; 

(5) Review the operation of the 

Complaint System; and 

(6) Serve as an advocate to improve 

service for MSFWs within the ES 

system. The RMA must be a member of 

the Regional Farm Labor Coordinated 

Enforcement Committee. 

(g) The RMA must be appointed by 

the Regional Administrator after 

informing farmworker organizations and 

other organizations in the region with 

expertise concerning MSFWs of the 

opening and encouraging them to refer 

qualified applicants to apply through 

the Federal merit system. The RMA 

must have direct personal access to the 

Regional Administrator wherever he/she 

finds it necessary. Among qualified 

candidates, individuals must be sought 

who meet the criteria used in the 

selection of the SMAs, as provided in 20 

CFR 653.108(b). 

(h) The Regional Administrator must 

ensure that staff necessary to fulfill 

effectively all the regional office 

responsibilities set forth in this section 

are assigned. The RMA must notify the 

Regional Administrator of any staffing 

deficiencies and the Regional 

Administrator must take appropriate 

action. 

(i) The RMA within the first 3 months 

of their tenure must participate in a 

training session(s) approved by the 

National Office. 

(j) At the regional level, the RMA 

must have primary responsibility for: 

(1) Monitoring the effectiveness of the 

Complaint System set forth at subpart E 

of this part; 

(2) Apprising appropriate State and 

ETA officials of deficiencies in the 

Complaint System; and 

(3) Providing technical assistance to 

SMAs in the region. 

(k) At the ETA regional level, the 

RMA must have primary responsibility 

for ensuring that SWA compliance with 

ES regulations as they pertain to 

services to MSFWs is monitored by the 

regional office. He/she must 

independently assess on a continuing 

basis the provision of ES services to 

MSFWs, seeking out and using: 

(1) Information from SMAs, including 

all reports and other documents; 

(2) Program performance data; 

(3) The periodic and other required 

reports from State ES offices; 

(4) Federal on-site reviews; 

(5) Other reports prepared by the 

National Office; 

(6) Information received from 

farmworker organizations and 

employers; and 

(7) Any other pertinent information 

which comes to his/her attention from 

any possible source. 

(8) In addition, the RMA must 

consider his/her personal observations 

from visits to ES offices, agricultural 

work sites and migrant camps. 

(l) The RMA must assist the Regional 

Administrator and other appropriate 

line officials in applying appropriate 

corrective and remedial actions to State 

agencies. 

(m) The Regional Administrator’s 

quarterly report to the National Office 

must include the RMA’s summary of 

his/her independent assessment as 

required in paragraph (f)(5) of this 

section. The fourth quarter summary 

must include an annual summary from 

the region. The summary also must 

include both a quantitative and a 

qualitative analysis of his/her reviews 

and must address all the matters with 

respect to which he/she has 

responsibilities under these regulations. 

(n) The RMA must review the 

activities and performance of the SMAs 

and the State monitoring system in the 

region, and must recommend any 

appropriate changes in the operation of 

the system to the Regional 

Administrator. The RMA’s review must 

include a determination whether the 

SMA: 

(1) Does not have adequate access to 

information; 

(2) Is being impeded in fulfilling his/ 

her duties; or 

(3) Is making recommendations which 

are being consistently ignored by SWA 

officials. If the RMA believes that the 

effectiveness of any SMA has been 

substantially impeded by the State 

Administrator, other State agency 

officials, or any Federal officials, he/she 

must report and recommend appropriate 

actions to the Regional Administrator. 

Copies of the recommendations must be 

provided to the NMA electronically or 

in hard copy. 

(o) The RMA must be informed of all 

proposed changes in policy and practice 

within USES, including ES regulations, 

which may affect the delivery of 

services to MSFWs. He/she must advise 

the Regional Administrator on all such 

proposed changes which, in his/her 

opinion, may adversely affect MSFWs or 

which may substantially improve the 

delivery of services to MSFWs. The 

RMA may also recommend changes in 

ES policy or regulations, as well as 

changes in the funding of State agencies 

and/or adjustments of reallocation of the 

discretionary portions of funding 

formulae as they pertain to MSFWs. 

(p) The RMA must participate in the 

review and assessment activities 

required in this section and 20 CFR part 

658.700 et seq. He/she, an assistant, or 

another RMA, must participate in 

National Office and regional office onsite statewide reviews of ES services to 

MSFWs in States in the region. The 

RMA must engage in the following 

activities in the course of participating 

in an on-site SWA review: 

(1) He/she must accompany selected 

outreach workers on their field visits; 

(2) He/she must participate in a 

random field check of migrant camps or 


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work sites where MSFWs have been 

placed on intrastate or interstate 

clearance orders; 

(3) He/she must contact local WIOA 

sec. 167 National Farmworker Jobs 

Program grantees or other farmworker 

organizations as part of the on-site 

review, and must discuss with 

representatives of these organizations 

perceived trends, and/or other relevant 

information concerning MSFWs in the 

area; and 

(4) He/she must meet with the SMA 

and discuss the full range of the ES 

services to MSFWs, including 

monitoring and the Complaint System. 

(q) During the calendar quarter 

preceding the time of peak MSFW 

activity in each State, the RMA must 

meet with the SMA and must review in 

detail the State agency’s capability for 

providing full services to MSFWs as 

required by ES regulations, during the 

upcoming harvest season. The RMA 

must offer technical assistance and 

recommend to the SWA and/or the 

Regional Administrator any changes in 

State policy or practice that he/she finds 

necessary. 

(r) The RMA each year during the 

peak harvest season must visit each 

State in the region not scheduled for an 

on-site review during that fiscal year 

and must: 

(1) Meet with the SMA and other 

SWA staff to discuss MSFW service 

delivery; and 

(2) Contact representatives of MSFW 

organizations to obtain information 

concerning ES service delivery and 

coordination with other agencies and 

interested employer organizations. 

(s) The RMA must initiate and 

maintain regular and personal contacts, 

including informal contacts in addition 

to those specifically required by these 

regulations, with SMA in the region. In 

addition, the RMA must have personal 

and regular contact with the NMA. The 

RMA must also establish routine and 

regular contacts with WIOA sec. 167 

National Farmworker Jobs Program 

grantees, other farmworker 

organizations and agricultural 

employers and/or employer 

organizations in his/her region. He/she 

must attend conferences or meetings of 

these groups wherever possible and 

must report to the Regional 

Administrator and the Regional Farm 

Labor Coordinated Enforcement 

Committee on these contacts when 

appropriate. He/she must also make 

recommendations as to how the 

Department might better coordinate ES 

and WIOA sec. 167 National 

Farmworker Jobs Program services to 

MSFWs. 

(t) The RMA must attend MSFWrelated public meeting(s) conducted in 

the region. Following such meetings or 

hearings, the RMA must take such steps 

or make such recommendations to the 

Regional Administrator, as he/she 

deems necessary to remedy problem(s) 

or condition(s) identified or described 

therein. 

(u) The RMA must attempt to achieve 

regional solutions to any problems, 

deficiencies or improper practices 

concerning services to MSFWs which 

are regional in scope. Further, he/she 

must recommend policies, offer 

technical assistance or take any other 

necessary steps as he/she deems 

desirable or appropriate on a regional, 

rather than State-by-State basis, to 

promote region-wide improvement in 

the delivery of employment services to 

MSFWs. He/she must facilitate regionwide coordination and communication 

regarding provision of ES services to 

MSFWs among SMAs, State 

Administrators and Federal ETA 

officials to the greatest extent possible. 

In the event that any SWA or other 

RMA, enforcement agency, or MSFW 

group refers a matter to the RMA which 

requires emergency action, he/she must 

assist them in obtaining action by 

appropriate agencies and staff, inform 

the originating party of the action taken, 

and, upon request, provide written 

confirmation. 

(v) The RMA must initiate and 

maintain such contacts as he/she deems 

necessary with RMAs in other regions to 

seek to resolve problems concerning 

MSFWs who work, live or travel 

through the region. He/she must 

recommend to the Regional 

Administrator and/or the National 

Office inter-regional cooperation on any 

particular matter, problem, or policy 

with respect to which inter-regional 

action is desirable. 

(w) The RMA must establish regular 

contacts with the regional agricultural 

coordinators from WHD and OSHA and 

any other regional staff from other 

Federal enforcement agencies and, must 

establish contacts with the staff of other 

Department agencies represented on the 

Regional Farm Labor Coordinated 

Enforcement Committee, and to the 

extent necessary, on other pertinent task 

forces or committees. 

(x) The RMA must participate in the 

regional reviews of the Unified State 

Plans, and must comment to the 

Regional Administrator as to the SWA 

compliance with the ES regulations as 

they pertain to services to MSFWs, 

including the staffing of employment 

service offices. 

§ 658.604 Assessment and evaluation of 

program performance data. 

(a) State agencies must compile 

program performance data required by 

the Department, including statistical 

information on program operations. 

(b) The Department must use the 

program performance data in assessing 

and evaluating whether each SWA has 

complied with ES regulations and its 

Unified State Plan. 

(c) In assessing and evaluating 

program performance data, the 

Department must act in accordance with 

the following general principles: 

(1) The fact that the program 

performance data from a SWA, whether 

overall or relative to a particular 

program activity, indicate poor program 

performance does not by itself 

constitute a violation of ES regulations 

or of the State agency’s responsibilities 

under its Unified State Plan; 

(2) Program performance data, 

however, may so strongly indicate that 

a SWA’s performance is so poor that the 

data may raise a presumption (prima 

facie case) that a SWA is violating ES 

regulations or the Unified State Plan. A 

SWA’s failure to meet the operational 

objectives set forth in the Unified State 

Plan raises a presumption that the 

agency is violating ES regulations and/ 

or obligations under its Unified State 

Plan. In such cases the Department must 

afford the SWA an opportunity to rebut 

the presumption of a violation pursuant 

to the procedures at subpart H of this 

part. 

(3) The Department must take into 

account that certain program 

performance data may measure items 

over which SWAs have direct or 

substantial control while other data may 

measure items over which the SWA has 

indirect or minimal control. 

(i) Generally, for example, a SWA has 

direct and substantial control over the 

delivery of employment services such as 

referrals to jobs, job development 

contacts, counseling, referrals to career 

and supportive services and the conduct 

of field checks. 

(ii) State Workforce Agencies, 

however, have only indirect control 

over the outcome of services. For 

example, SWAs cannot guarantee that 

an employer will hire a referred 

applicant, nor can they guarantee that 

the terms and conditions of employment 

will be as stated on a job order. 

(iii) Outside forces, such as a sudden 

heavy increase in unemployment rates, 

a strike by SWA employees, or a severe 

drought or flood may skew the results 

measured by program performance data. 

(4) The Department must consider a 

SWA’s failure to keep accurate and 

complete program performance data 


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required by ES regulations as a violation 

of the ES regulations. 

§ 658.605 Communication of findings to 

State agencies. 

(a) The Regional Administrator must 

inform SWAs in writing of the results of 

review and assessment activities and, as 

appropriate, must discuss with the State 

Administrator the impact or action 

required by the Department as a result 

of review and assessment activities. 

(b) The ETA National Office must 

transmit the results of any review and 

assessment activities it conducted to the 

Regional Administrator who must send 

the information to the SWA. 

(c) Whenever the review and 

assessment indicates a SWA violation of 

ES regulations or its Unified State Plan, 

the Regional Administrator must follow 

the procedures set forth at subpart H of 

this part. 

(d) Regional Administrators must 

follow-up any corrective action plan 

imposed on a SWA under subpart H of 

this part by further review and 

assessment of the State agency pursuant 

to this subpart. 

Subpart H—Federal Application of 

Remedial Action to State Agencies 

§ 658.700 Scope and purpose of subpart. 

This subpart sets forth the procedures 

which the Department must follow 

upon either discovering independently 

or receiving from other(s) information 

indicating that SWAs may not be 

adhering to ES regulations. 

§ 658.701 Statements of policy. 

(a) It is the policy of the Department 

to take all necessary action, including 

the imposition of the full range of 

sanctions set forth in this subpart, to 

ensure that State agencies comply with 

all requirements established by ES 

regulations. 

(b) It is the policy of the Department 

to initiate decertification procedures 

against SWAs in instances of serious or 

continual violations of ES regulations if 

less stringent remedial actions taken in 

accordance with this subpart fail to 

resolve noncompliance. 

(c) It is the policy of the Department 

to act on information concerning alleged 

violations by SWAs of the ES 

regulations received from any person or 

organization. 

§ 658.702 Initial action by the Regional 

Administrator. 

(a) The ETA Regional Administrator is 

responsible for ensuring that all SWAs 

in his/her region are in compliance with 

ES regulations. 

(b) Wherever a Regional 

Administrator discovers or is apprised 

of possible SWA violations of ES 

regulations by the review and 

assessment activities under subpart G of 

this part, or through required reports or 

written complaints from individuals, 

organizations or employers which are 

elevated to the Department after the 

exhaustion of SWA administrative 

remedies, the Regional Administrator 

must conduct an investigation. Within 

10 days after receipt of the report or 

other information, the Regional 

Administrator must make a 

determination whether there is probable 

cause to believe that a SWA has violated 

ES regulations. 

(c) The Regional Administrator must 

accept complaints regarding possible 

SWA violations of ES regulations from 

employee organizations, employers or 

other groups, without exhaustion of the 

complaint process described at subpart 

E, if the Regional Administrator 

determines that the nature and scope of 

the complaint are such that the time 

required to exhaust the administrative 

procedures at the State level would 

adversely affect a significant number of 

applicants. In such cases, the Regional 

Administrator must investigate the 

matter within 10 working days, may 

provide the SWA 10 working days for 

comment, and must make a 

determination within an additional 10 

working days whether there is probable 

cause to believe that the SWA has 

violated ES regulations. 

(d) If the Regional Administrator 

determines that there is no probable 

cause to believe that a SWA has violated 

ES regulations, he/she must retain all 

reports and supporting information in 

Department files. In all cases where the 

Regional Administrator has insufficient 

information to make a probable cause 

determination, he/she must so notify the 

Administrator in writing and the time 

for the investigation must be extended 

20 additional working days. 

(e) If the Regional Administrator 

determines that there is probable cause 

to believe that a SWA has violated ES 

regulations, he/she must issue a Notice 

of Initial Findings of Non-compliance 

by registered mail (or other legally 

viable means) to the offending SWA. 

The notice will specify the nature of the 

violation, cite the regulations involved, 

and indicate corrective action which 

may be imposed in accordance with 

paragraphs (g) and (h) of this section. If 

the non-compliance involves services to 

MSFWs or the Complaint System, a 

copy of said notice must be sent to the 

NMA. 

(f)(1) The SWA may have 20 working 

days to comment on the findings, or a 

longer period, up to 20 additional days, 

if the Regional Administrator 

determines that a longer period is 

appropriate. The SWA’s comments must 

include agreement or disagreement with 

the findings and suggested corrective 

actions, where appropriate. 

(2) After the period elapses, the 

Regional Administrator must prepare 

within 20 working days, written final 

findings which specify whether or not 

the SWA has violated ES regulations. If 

in the final findings the Regional 

Administrator determines that the SWA 

has not violated ES regulations, the 

Regional Administrator must notify the 

State Administrator of this finding and 

retain supporting documents in his/her 

files. If the final finding involves 

services to MSFWs or the Complaint 

System, the Regional Administrator 

must also notify the NMA. If the 

Regional Administrator determines that 

a SWA has violated ES regulations, the 

Regional Administrator must prepare a 

Final Notice of Noncompliance which 

must specify the violation(s) and cite 

the regulations involved. The Final 

Notice of Noncompliance must be sent 

to the SWA by registered mail or other 

legally viable means. If the 

noncompliance involves services to 

MSFWs or the Complaint System, a 

copy of the Final Notice must be sent to 

the NMA. 

(g) If the violation involves the 

misspending of grant funds, the 

Regional Administrator may order in the 

Final Notice of Noncompliance a 

disallowance of the expenditure and 

may either demand repayment or 

withhold future funds in the amount in 

question. If the Regional Administrator 

disallows costs, the Regional 

Administrator must give the reasons for 

the disallowance, inform the SWA that 

the disallowance is effective 

immediately and that no more funds 

may be spent in the disallowed manner, 

and offer the SWA the opportunity to 

request a hearing pursuant to § 658.707. 

The offer, or the acceptance of an offer 

of a hearing, however, does not stay the 

effectiveness of the disallowance. The 

Regional Administrator must keep 

complete records of the disallowance. 

(h) If the violation does not involve 

misspending of grant funds or the 

Regional Administrator determines that 

the circumstances warrant other action: 

(1) The Final Notice of 

Noncompliance must direct the SWA to 

implement a specific corrective action 

plan to correct all violations. If the 

SWA’s comment demonstrates with 

supporting evidence (except where 

inappropriate) that all violations have 

already been corrected, the Regional 

Administrator need not impose a 

corrective action plan and instead may 

cite the violation(s) and accept their 


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resolution, subject to follow-up review, 

if necessary. If the Regional 

Administrator determines that the 

violation(s) cited had been found 

previously and that the corrective 

action(s) taken had not corrected the 

violation(s) contrary to the findings of 

previous follow-up reviews, the 

Regional Administrator must apply 

remedial actions to the SWA pursuant 

to § 658.704. 

(2) The Final Notice of 

Noncompliance must specify the time 

by which each corrective action must be 

taken. This period may not exceed 40 

working days unless the Regional 

Administrator determines that 

exceptional circumstances necessitate 

corrective actions requiring a longer 

time period. In such cases, and if the 

violations involve services to MSFWs or 

the Complaint System, the Regional 

Administrator must notify the 

Administrator in writing of the 

exceptional circumstances which 

necessitate a longer time period, and 

must specify that time period. The 

specified time period must commence 

with the date of signature on the 

registered mail receipt. 

(3) When the time period provided for 

in paragraph (h)(2) of this section 

elapses, Department staff must review 

the SWA’s efforts as documented by the 

SWA to determine if the corrective 

action(s) has been taken and if the SWA 

has achieved compliance with ES 

regulations. If necessary, Department 

staff must conduct a follow-up visit as 

part of this review. 

(4) If, as a result of this review, the 

Regional Administrator determines that 

the SWA has corrected the violation(s), 

the Regional Administrator must record 

the basis for this determination, notify 

the SWA, send a copy to the 

Administrator, and retain a copy in 

Department files. 

(5) If, as a result of this review, the 

Regional Administrator determines that 

the SWA has taken corrective action but 

is unable to determine if the violation 

has been corrected due to seasonality or 

other factors, the Regional 

Administrator must notify in writing the 

SWA and the Administrator of his/her 

findings. The Regional Administrator 

must conduct further follow-up at an 

appropriate time to make a final 

determination if the violation has been 

corrected. If the Regional 

Administrator’s further follow-up 

reveals that violations have not been 

corrected, the Regional Administrator 

must apply remedial actions to the SWA 

pursuant to § 658.704. 

(6) If, as a result of the review the 

Regional Administrator determines that 

the SWA has not corrected the 

violations and has not made good faith 

efforts and adequate progress toward the 

correction of the violations, the Regional 

Administrator must apply remedial 

actions to the SWA pursuant to 

§ 658.704. 

(7) If, as a result of the review, the 

Regional Administrator determines that 

the SWA has made good faith efforts 

and adequate progress toward the 

correction of the violation and it 

appears that the violation will be fully 

corrected within a reasonable time 

period, the SWA must be advised by 

registered mail or other legally viable 

means (with a copy sent to the 

Administrator) of this conclusion, of 

remaining differences, of further needed 

corrective action, and that all 

deficiencies must be corrected within a 

specified time period. This period may 

not exceed 40 working days unless the 

Regional Administrator determines that 

exceptional circumstances necessitate 

corrective action requiring a longer time 

period. In such cases, the Regional 

Administrator must notify the 

Administrator in writing of the 

exceptional circumstances which 

necessitate a longer time period, and 

must specify that time period. The 

specified time period commences with 

the date of signature on the registered 

mail receipt. 

(8)(i) If the SWA has been given an 

additional time period pursuant to 

paragraph (h)(7) of this section, 

Department staff must review the SWA’s 

efforts as documented by the SWA at 

the end of the time period. If necessary, 

the Department must conduct a followup visit as part of this review. 

(ii) If the SWA has corrected the 

violation(s), the Regional Administrator 

must document that finding, notify in 

writing the SWA and the Administrator, 

and retain supporting documents in 

Department files. If the SWA has not 

corrected the violation(s), the Regional 

Administrator must apply remedial 

actions pursuant to § 658.704. 

§ 658.703 Emergency corrective action. 

In critical situations as determined by 

the Regional Administrator, where it is 

necessary to protect the integrity of the 

funds, or insure the proper operation of 

the program, the Regional Administrator 

may impose immediate corrective 

action. Where immediate corrective 

action is imposed, the Regional 

Administrator must notify the SWA of 

the reason for imposing the emergency 

corrective action prior to providing the 

SWA an opportunity to comment. 

§ 658.704 Remedial actions. 

(a) If a SWA fails to correct violations 

as determined pursuant to § 658.702, the 

Regional Administrator must apply one 

or more of the following remedial 

actions to the SWA: 

(1) Imposition of special reporting 

requirements for a specified period of 

time; 

(2) Restrictions of obligational 

authority within one or more expense 

classifications; 

(3) Implementation of specific 

operating systems or procedures for a 

specified time; 

(4) Requirement of special training for 

SWA personnel; 

(5) With the approval of the Assistant 

Secretary and after affording the State 

Administrator the opportunity to 

request a conference with the Assistant 

Secretary, the elevation of specific 

decision-making functions from the 

State Administrator to the Regional 

Administrator; 

(6) With the approval of the Assistant 

Secretary and after affording the State 

Administrator the opportunity to 

request a conference with the Assistant 

Secretary, the imposition of Federal staff 

in key State agency positions; 

(7) With the approval of the Assistant 

Secretary and after affording the State 

Administrator the opportunity to 

request a conference with the Assistant 

Secretary, funding of the State agency 

on a short-term basis or partial 

withholding of funds for a specific 

function or for a specific geographical 

area; 

(8) Holding of public hearings in the 

State on the SWA’s deficiencies; 

(9) Disallowance of funds pursuant to 

§ 658.702 (g); or 

(10) If the matter involves a serious or 

continual violation, the initiation of 

decertification procedures against the 

State agency, as set forth in paragraph 

(e) of this section. 

(b) The Regional Administrator must 

send, by registered mail, a Notice of 

Remedial Action to the SWA. The 

Notice of Remedial Action must set 

forth the reasons for the remedial action. 

When such a notice is the result of 

violations of regulations governing 

services to MSFWs (20 CFR 653.100 et 

seq.) or the Complaint System (§§ 

658.400 et seq.), a copy of said notice 

must be sent to the Administrator, who 

must publish the notice promptly in the 

Federal Register. 

(c) If the remedial action is other than 

decertification, the notice must state 

that the remedial action must take effect 

immediately. The notice must also state 

that the SWA may request a hearing 

pursuant to § 658.707 by filing a request 

in writing with the Regional 

Administrator pursuant to § 658.707 

within 20 working days of the SWA’s 

receipt of the notice. The offer of 


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hearing, or the acceptance thereof, 

however, does not stay or otherwise 

delay the implementation of remedial 

action. 

(d) Within 60 working days after the 

initial application of remedial action, 

the Regional Administrator must 

conduct a review of the SWA’s 

compliance with ES regulations unless 

the Regional Administrator determines 

that a longer time period is necessary. 

In such cases, the Regional 

Administrator must notify the 

Administrator in writing of the 

circumstances which necessitate a 

longer time period, and specify that 

time period. If necessary, Department 

staff must conduct a follow-up visit as 

part of this review. If the SWA is in 

compliance with the ES regulations, the 

Regional Administrator must fully 

document these facts and must 

terminate the remedial actions. The 

Regional Administrator must notify the 

SWA of his/her findings. When the case 

involves violations of regulations 

governing services to MSFWs or the 

Complaint System, a copy of said notice 

must be sent to the Administrator, who 

must promptly publish the notice in the 

Federal Register. The Regional 

Administrator must conduct, within a 

reasonable time after terminating the 

remedial actions, a review of the SWA’s 

compliance to determine whether any 

remedial actions should be reapplied. 

(e) If, upon conducting the on-site 

review referred to in paragraph (c) of 

this section, the Regional Administrator 

finds that the SWA remains in 

noncompliance, the Regional 

Administrator must continue the 

remedial action and/or impose different 

additional remedial actions. The 

Regional Administrator must fully 

document all such decisions and, when 

the case involves violations of 

regulations governing services to 

MSFWs or the Complaint System, must 

send copies to the Administrator, who 

must promptly publish the notice in the 

Federal Register. 

(f)(1) If the SWA has not brought itself 

into compliance with ES regulations 

within 120 working days of the initial 

application of remedial action, the 

Regional Administrator must initiate 

decertification unless the Regional 

Administrator determines that 

circumstances necessitate continuing 

remedial action for a longer period of 

time. In such cases, the Regional 

Administrator must notify the 

Administrator in writing of the 

circumstances which necessitate the 

longer time period, and specify the time 

period. 

(2) The Regional Administrator must 

notify the SWA by registered mail or by 

other legally viable means of the 

decertification proceedings, and must 

state the reasons therefor. Whenever 

such a notice is sent to a State agency, 

the Regional Administrator must 

prepare five copies (hard copies or 

electronic copies) containing, in 

chronological order, all the documents 

pertinent to the case along with a 

request for decertification stating the 

grounds therefor. One copy must be 

retained. Two must be sent to the ETA 

National Office, one must be sent to the 

Solicitor of Labor, Attention: Associate 

Solicitor for Employment and Training, 

and, if the case involves violations of 

regulations governing services to 

MSFWs or the Complaint System, one 

copy must be sent to the NMA. All 

copies must also be sent electronically 

to each respective party. The notice sent 

by the Regional Administrator must be 

published promptly in the Federal 

Register. 

§ 658.705 Decision to decertify. 

(a) Within 30 working days of 

receiving a request for decertification, 

the ETA Assistant Secretary must 

review the case and must decide 

whether to proceed with decertification. 

(b) The Assistant Secretary must grant 

the request for decertification unless he/ 

she makes a finding that: 

(1) The violations of ES regulations 

are neither serious nor continual; 

(2) The State agency is in compliance; 

or 

(3) The Assistant Secretary has reason 

to believe that the SWA will achieve 

compliance within 80 working days 

unless exceptional circumstances 

necessitate a longer time period, 

pursuant to the remedial action already 

applied or to be applied. (In the event 

the Assistant Secretary does not have 

sufficient information to act upon the 

request, he/she may postpone the 

determination for up to an additional 20 

working days in order to obtain any 

available additional information.) In 

making a determination of whether 

violations are ‘‘serious’’ or ‘‘continual,’’ 

as required by paragraph (b)(1) of this 

section, the Assistant Secretary must 

consider: 

(i) Statewide or multiple deficiencies 

as shown by performance data and/or 

on-site reviews; 

(ii) Recurrent violations, even if they 

do not persist over consecutive 

reporting periods, and 

(iii) The good faith efforts of the State 

to achieve full compliance with ES 

regulations as shown by the record. 

(c) If the Assistant Secretary denies a 

request for decertification, he/she must 

write a complete report documenting 

his/her findings and, if appropriate, 

instructing that an alternate remedial 

action or actions be applied. Electronic 

copies of the report must be sent to the 

Regional Administrator. Notice of the 

Assistant Secretary’s decision must be 

published promptly in the Federal 

Register, and the report of the Assistant 

Secretary must be made available for 

public inspection and copying. 

(d) If the Assistant Secretary decides 

that decertification is appropriate, he/

she must submit the case to the 

Secretary providing written explanation 

for his/her recommendation of 

decertification. 

(e) Within 30 working days after 

receiving the Assistant Secretary’s 

report, the Secretary must determine 

whether to decertify the SWA. The 

Secretary must grant the request for 

decertification unless he/she makes one 

of the three findings set forth in 

paragraph (b) of this section. If the 

Secretary decides not to decertify, he/

she must then instruct that remedial 

action be continued or that alternate 

actions be applied. The Secretary must 

write a report explaining his/her reasons 

for not decertifying the SWA and copies 

(hard copy and electronic) will be sent 

to the State agency. Notice of the 

Secretary’s decision must be published 

promptly in the Federal Register, and 

the report of the Secretary must be made 

available for public inspection and 

copy. 

(f) Where either the Assistant 

Secretary or the Secretary denies a 

request for decertification and order 

further remedial action, the Regional 

Administrator must continue to monitor 

the SWA’s compliance. If the SWA 

achieves compliance within the time 

period established pursuant to 

paragraph (b) of this section, the 

Regional Administrator must terminate 

the remedial actions. If the SWA fails to 

achieve full compliance within that 

time period after the Secretary’s 

decision not to decertify, the Regional 

Administrator must submit a report of 

his/her findings to the Assistant 

Secretary who must reconsider the 

request for decertification pursuant to 

the requirements of paragraph (b) of this 

section. 

§ 658.706 Notice of decertification. 

If the Secretary decides to decertify a 

SWA, he/she must send a Notice of 

Decertification to the State agency 

stating the reasons for this action and 

providing a 10 working day period 

during which the SWA may request an 

administrative hearing in writing to the 

Secretary. The notice must be published 

promptly in the Federal Register. 


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§ 658.707 Requests for hearings. 

(a) Any SWA which received a Notice 

of Decertification under § 658.706 or a 

notice of disallowance under 

§ 658.702(g) may request a hearing on 

the issue by filing a written request for 

hearing with the Secretary within 10 

working days of receipt of the notice. 

This request must state the reasons the 

SWA believes the basis of the decision 

to be wrong, and it must be signed by 

the State Administrator (electronic 

signatures may be accepted). 

(b) When the Secretary receives a 

request for a hearing from a State 

agency, he/she must send copies of a 

file containing all materials and 

correspondence relevant to the case to 

the Assistant Secretary, the Regional 

Administrator, the Solicitor of Labor, 

and the DOL Chief Administrative Law 

Judge. When the case involves 

violations of regulations governing 

services to MSFWs or the Complaint 

System, a copy must be sent to the 

NMA. 

(c) The Secretary must publish notice 

of hearing in the Federal Register. This 

notice must invite all interested parties 

to attend and to present evidence at the 

hearing. All interested parties who make 

written request to participate must 

thereafter receive copies (hard copy 

and/or electronic) of all documents filed 

in said proceedings. 

§ 658.708 Hearings. 

(a) Upon receipt of a hearing file by 

the Chief Administrative Law Judge, the 

case must be docketed and notice sent 

by electronic mail and registered mail, 

return receipt requested, to the Solicitor 

of Labor, Attention: Associate Solicitor 

for Employment and Training, the 

Administrator, the Regional 

Administrator and the State 

Administrator. The notice must set a 

time, place, and date for a hearing on 

the matter and must advise the parties 

that: 

(1) They may be represented at the 

hearing; 

(2) They may present oral and 

documentary evidence at the hearing; 

(3) They may cross-examine opposing 

witnesses at the hearing; and 

(4) They may request rescheduling of 

the hearing if the time, place, or date set 

are inconvenient. 

(b) The Solicitor of Labor or the 

Solicitor’s designee will represent the 

Department at the hearing. 

§ 658.709 Conduct of hearings. 

(a) Hearings must be conducted in 

accordance with secs. 5–8 of the 

Administrative Procedure Act, 5 U.S.C. 

553 et seq. 

(b) Technical rules of evidence do not 

apply, but rules or principles designed 

to assure production of the most 

credible evidence available and to 

subject testimony to test by crossexamination, must be applied if 

necessary by the ALJ conducting the 

hearing. The ALJ may exclude 

irrelevant, immaterial or unduly 

repetitious evidence. All documents and 

other evidence offered or taken for the 

record must be open to examination by 

the parties. Opportunity must be given 

to refute facts and arguments advanced 

on either side of the issue. A transcript 

must be made of the oral evidence 

except to the extent the substance 

thereof is stipulated for the record. 

(c) The general provisions governing 

discovery as provided in the Rules of 

Civil Procedure for the United States 

District Court, title V, 28 U.S.C., rules 26 

through 37, may be made applicable to 

the extent that the Administrative Law 

Judge concludes that their use would 

promote the proper advancement of the 

hearing. 

(d) When a public officer is a 

respondent in a hearing in an official 

capacity and during its pendency dies, 

resigns, or otherwise ceases to hold 

office, the proceeding does not abate 

and the officer’s successor is 

automatically substituted as a party. 

Proceedings following the substitution 

must be in the name of the substituted 

party, but any misnomer not affecting 

the substantive rights of the parties must 

be disregarded. An order of substitution 

may be entered at any time, but the 

omission to enter such an order may not 

affect the substitution. 

§ 658.710 Decision of the Administrative 

Law Judge. 

(a) The ALJ has jurisdiction to decide 

all issues of fact and related issues of 

law and to grant or deny appropriate 

motions, but does not have jurisdiction 

to decide upon the validity of Federal 

statutes or regulations. 

(b) The decision of the ALJ must be 

based on the hearing record, must be in 

writing, and must state the factual and 

legal basis of the decision. Notice of the 

decision must be published in the 

Federal Register and the ALJ’s decision 

must be available for public inspection 

and copying. 

(c) Except when the case involves the 

decertification of a SWA, the decision of 

the ALJ will be considered the final 

decision of the Secretary. 

(d) If the case involves the 

decertification of an appeal to the State 

agency, the decision of the ALJ must 

contain a notice stating that, within 30 

calendar days of the decision, the State 

agency or the Administrator may appeal 

to the Administrative Review Board, 

United States Department of Labor, by 

sending by registered mail, return 

receipt requested, a written appeal to 

the Administrative Review Board, in 

care of the Administrative Law Judge 

who made the decision. 

§ 658.711 Decision of the Administrative 

Review Board. 

(a) Upon the receipt of an appeal to 

the Administrative Review Board, 

United States Department of Labor, the 

ALJ must certify the record in the case 

to the Administrative Review Board, 

which must make a decision to decertify 

or not on the basis of the hearing record. 

(b) The decision of the Administrative 

Review Board must be final, must be in 

writing, and must set forth the factual 

and legal basis for the decision. Notice 

of the Administrative Review Board’s 

decision must be published in the 

Federal Register, and copies must be 

made available for public inspection 

and copying. 

Thomas E. Perez, 

Secretary of Labor. 

[FR Doc. 2015–05530 Filed 4–2–15; 4:15 pm] 

BILLING CODE 4510–FR–P; 4510–FT–P 


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