to provide services or functions that are customarily pro-
vided by a unit of general local government where such 
services or functions are provided by the organization. 
(c) NONDISPLACEMENT
OF
LOCAL
BUSINESS.— 
Where appropriate, any unit of government or community- 
based organizations receiving funds under this Act cannot 
use those funds to provide services or functions that are 
currently provided by a local business. 
SEC. 806. EMPLOYMENT STATUS AND COMPENSATION IN 
NEW PROGRAMS. 
(a) EMPLOYEE STATUS.—An individual hired for a 
position funded under title I, title V, or title VI, or section 
401 of title IV shall— 
(1) be considered an employee of the unit of 
general local government, business, or community- 
based organization, by which such individual was 
hired; and 
(2) receive the same employee compensation, 
have the same rights and responsibilities and job 
classifications, and be subject to the same job stand-
ards, employer policies, and collective bargaining 
agreements as if such individual was hired without 
assistance under this Act. 
(b) TOTAL AMOUNT OF COMPENSATION.—For each 
fiscal year for which funds are appropriated to carry out 
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this Act, each unit of general local government, each busi-
ness, and each community-based organization that re-
ceives funds under the provisions described in subsection 
(a) for any such fiscal year shall use such funds to provide 
an amount equal to the total amount of employee com-
pensation for the individuals such the entity hired under 
this Act. 
(c) LIMIT ON PERIOD OF EMPLOYMENT.—Notwith-
standing any agreement or other provision of law (other 
than those provisions of law pertaining to civil rights in 
employment), a unit of general local government, business, 
or community-based organization shall not be obligated to 
employ the individuals hired under this Act or retain the 
positions filled by such individuals beyond the period for 
which the unit or organization receives funding under the 
provisions described in subsection (a). 
SEC. 807. DISPUTE RESOLUTIONS, WHISTLEBLOWER HOT-
LINE, AND ENFORCEMENT BY THE SEC-
RETARY. 
(a) ESTABLISHMENT
OF
ARBITRATION
PROCE-
DURE.— 
(1) IN
GENERAL.—Each entity that receives 
funding under this Act shall agree to the arbitration 
procedure described in this subsection to resolve dis-
putes described in subsections (b) and (c). 
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(2) WRITTEN GRIEVANCES.— 
(A) IN GENERAL.—If an employee (or an 
employee representative) wishes to use the arbi-
tration procedure described in this subsection, 
such party shall file a written grievance within 
the time period required under subsection (b) or 
(c), as applicable, simultaneously with the chief 
executive officer of an entity involved in the dis-
pute and the Secretary of Labor. 
(B) IN-PERSON MEETING.—Not later than 
10 days after the date of the filing of the griev-
ance, the chief executive officer (or the designee 
of the chief executive officer) shall have an in- 
person meeting with the party to resolve the 
grievance. 
(3) ARBITRATION.— 
(A) SUBMISSION.—If the grievance is not 
resolved within the time period described in 
paragraph (2)(B), a party, by written notice to 
the other party involved, may submit such 
grievance to binding arbitration before a quali-
fied arbitrator who is jointly selected and inde-
pendent of the parties. 
(B) APPOINTMENT BY SECRETARY.—If the 
parties cannot agree on an arbitrator within 5 
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days of submitting the grievance to binding ar-
bitration under subparagraph (A), one of the 
parties may submit a request to the Secretary 
of Labor to appoint a qualified and independent 
arbitrator. The Secretary of Labor shall appoint 
a qualified and independent arbitrator within 
15 days after receiving the request. 
(C) HEARING.—Unless the parties mutu-
ally agree otherwise, the arbitrator shall con-
duct a hearing on the grievance and issue a de-
cision not later than 30 days after the date 
such arbitrator is selected or appointed. 
(D) COSTS.— 
(i) IN GENERAL.—Except as provided 
in clause (ii), the cost of an arbitration 
proceeding shall be divided evenly between 
the parties to the arbitration. 
(ii) EXCEPTION.—If a grievant pre-
vails under an arbitration proceeding, the 
entity involved in the dispute shall pay the 
cost of such proceeding, including attor-
neys’ fees. 
(b) DISPUTES CONCERNING
THE ALLOTMENT
OF 
FUNDS.—In the case where a dispute arises as to whether 
an entity has improperly requested funds for services, an 
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employee or employee representative of entity may file a 
grievance under subsection (a) not later than 15 days 
after public notice of an intent to request funds for serv-
ices. Upon receiving a copy of the grievance, the Secretary 
of Labor shall withhold the funds subject to such griev-
ance, unless and until the grievance is resolved under sub-
section (a), by the parties or an arbitrator in favor of pro-
viding such funding. 
(c) ALL OTHER DISPUTES.— 
(1) IN GENERAL.—In the case of a dispute not 
covered under subsection (b) concerning compliance 
with the requirements of this Act by an entity re-
ceiving funds under this title, an employee or em-
ployee representative of an entity may file a griev-
ance under subsection (a) not later than 90 days 
after the dispute arises. In such cases, an arbitrator 
may award such remedies as are necessary to make 
the grievant whole, including the reinstatement of a 
displaced employee or the payment of back wages, 
and may submit recommendations to the Secretary 
of Labor to ensure further compliance with the re-
quirements of this Act, including recommendations 
to suspend or terminate funding, or to require the 
repayment of funds received under this title during 
any period of noncompliance. 
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