I 
117TH CONGRESS 
1ST SESSION H. R. 2790 
To establish jobs programs for long-term unemployed workers, and for other 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 22, 2021 
Mr. LEVIN of Michigan (for himself and Mr. KILMER) introduced the 
following bill; which was referred to the Committee on Education and Labor 
A BILL 
To establish jobs programs for long-term unemployed 
workers, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Long-Term Unemploy-
ment Elimination Act of 2021’’. 
SEC. 2. PURPOSE. 
The purpose of this Act is to provide job opportuni-
ties for every long-term unemployed worker in the United 
States. 
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SEC. 3. DEFINITIONS. 
In this Act: 
(1) CAREER SERVICES.—The term ‘‘career serv-
ices’’ includes the services described in section 
134(c)(2)(A) of the Workforce Innovation and Op-
portunity Act (29 U.S.C. 3174(c)(2)(A)). 
(2) COVERED AREA.—The term ‘‘covered area’’ 
means the local area in which a local board is car-
rying out a jobs program, or (in the circumstances 
described in section 4(d)) the local area in which a 
community-based organization is carrying out a jobs 
program, under this Act. 
(3) ELIGIBLE
WORKER.—The term ‘‘eligible 
worker’’ means an individual who— 
(A) is not less than 18 years old; 
(B) is authorized to be employed in the 
United States for purposes of section 274A of 
the Immigration and Nationality Act (8 U.S.C. 
1324a); 
(C) has not been employed or a full-time 
student for a period of not less than 27 weeks 
(except as modified under section 5(e)); and 
(D) is currently seeking employment and 
has been seeking employment for a period of 
not less than 4 weeks (except as modified under 
section 5(e)). 
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(4) INDIVIDUAL WITH A BARRIER TO EMPLOY-
MENT.—The term ‘‘individual with a barrier to em-
ployment’’ has the meaning given in section 3(24) of 
the Workforce Innovation and Opportunity Act (29 
U.S.C. 3102(24)), except that such term shall not 
include individuals who meet the terms of the defini-
tion in that section solely on the basis of their status 
as long-term unemployed individuals. 
(5) ON-THE-JOB TRAINING.—The term ‘‘on-the- 
job training’’ has the meaning given the term in sec-
tion 3(44) of the Workforce Innovation and Oppor-
tunity Act (29 U.S.C. 3102(44)), except that sub-
paragraph (B) of that section shall not apply. 
(6) PARTICIPATING
EMPLOYER.—The term 
‘‘participating employer’’ means an employer— 
(A) that is— 
(i) a government agency; 
(ii) a nonprofit organization; 
(iii) operating as an employment so-
cial enterprise; or 
(iv) a business; and 
(B) includes— 
(i) an employer at the site of employ-
ment for an eligible worker in a program 
position; or 
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(ii) a community-based organization 
that acts as an employer of record by— 
(I) assuming the roles and re-
sponsibilities assigned to employers 
described in clause (i) under this Act; 
(II) entering into an agreement 
with an employer described in clause 
(i) to set forth the terms and condi-
tions for employment of an eligible 
worker in a program position in a jobs 
program in accordance with the provi-
sions of this Act; and 
(III) acting as an intermediary 
between eligible workers and employ-
ers described in clause (i) to facilitate 
participation in the jobs program in-
volved. 
(7) PAYROLL
TAXES.—The term ‘‘payroll 
taxes’’ means taxes under section 3111, 3221, 3301, 
or 3321 of the Internal Revenue Code of 1986, and 
any similar State or local tax imposed on employers. 
(8) PRE-APPRENTICESHIP.—The term ‘‘pre-ap-
prenticeship’’, used with respect to a program, 
means a program that is designed to prepare indi-
viduals to enter and succeed in a registered appren-
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ticeship program and is carried out by an entity that 
has a documented partnership with at least one 
sponsor of a registered apprenticeship program. 
(9) PROGRAM POSITION.— 
(A) IN GENERAL.—The term ‘‘program po-
sition’’, used with respect to a jobs program— 
(i) means a position— 
(I) in a temporary job that is de-
signed to lead to long-term employ-
ment; and 
(II) that is provided along with, 
as necessary, career services, sup-
portive services, and training services 
to enable an individual to succeed in 
the job and obtain and retain long- 
term employment; and 
(ii) includes— 
(I) a position in a transitional 
job; 
(II) a position in a registered ap-
prenticeship program; and 
(III) an approved national service 
position made available under section 
129 of the National and Community 
Service Act of 1990 (42 U.S.C. 
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12581), including a position spon-
sored under subsection (i) of that sec-
tion, subject to subparagraph (B). 
(B) RULE.— 
(i) EMPLOYERS WITH CERTAIN PRO-
GRAM
POSITIONS.—A participating em-
ployer for an eligible worker (or an em-
ployer at the site of employment for an eli-
gible worker) in a program position de-
scribed in subparagraph (A)(ii)(III) shall 
be considered to be a service sponsor, as 
defined in section 101 of the National and 
Community Service Act of 1990 (42 
U.S.C. 12511). 
(ii) ELIGIBLE WORKERS IN CERTAIN 
PROGRAM POSITIONS.—In parity with sec-
tion 101(30) of the National and Commu-
nity Service Act of 1990 (42 U.S.C. 
12511(30)), an eligible worker in such a 
program position shall not be considered to 
be an employee of the participating em-
ployer (or of an employer at the site of em-
ployment for the eligible worker). 
(10) RECOGNIZED
POSTSECONDARY
CREDEN-
TIAL.—The term ‘‘recognized postsecondary creden-
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tial’’ means such a credential as defined in section 
3 of the Workforce Innovation and Opportunity Act 
(29 U.S.C. 3102), if the provider of the program 
leading to the credential is identified under section 
122(h) of such Act (29 U.S.C. 3152(h)). 
(11) 
REGISTERED
APPRENTICESHIP
PRO-
GRAM.—The term ‘‘registered apprenticeship pro-
gram’’ means a program registered under the Act of 
August 16, 1937 (commonly known as the ‘‘National 
Apprenticeship Act’’; 50 Stat. 664, chapter 663; 29 
U.S.C. 50 et seq.). 
(12) 
SECRETARY.—The 
term 
‘‘Secretary’’ 
means the Secretary of Labor. 
(13) TRANSITIONAL
JOB.—The term ‘‘transi-
tional job’’ means a job described in section 
134(d)(5) of the Workforce Innovation and Oppor-
tunity Act (29 U.S.C. 3174(d)(5)), without regard 
to the limitation described in that section on funding 
for such jobs. 
(14) WIOA TERMS.—The terms ‘‘adult edu-
cation and literacy activities’’, ‘‘career pathway’’, 
‘‘community-based organization’’, ‘‘customized train-
ing’’, ‘‘industry or sector partnership’’, ‘‘in-demand 
industry sector or occupation’’, ‘‘integrated edu-
cation and training’’, ‘‘local area’’, ‘‘local board’’, 
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‘‘one-stop operator’’, ‘‘poverty line’’, ‘‘State area’’, 
‘‘State board’’, ‘‘supportive services’’, ‘‘training serv-
ices’’, and ‘‘veteran’’ have the meanings given the 
terms in section 3 of the Workforce Innovation and 
Opportunity Act (29 U.S.C. 3102). 
(15) WORKER-OWNED ENTERPRISE.— 
(A) IN
GENERAL.—The term ‘‘worker- 
owned enterprise’’ means— 
(i) an eligible worker-owned coopera-
tive, as defined in section 1042(c)(2) of the 
Internal Revenue Code of 1986; or 
(ii) an enterprise for which the major-
ity of the voting stock is owned by workers 
employed by such enterprise. 
(B) VOTING STOCK.—For purposes of sub-
paragraph (A)(ii), the share of the voting stock 
owned by workers shall include stock held by an 
employee stock ownership plan, as defined in 
section 4975(e)(7) of such Code. 
SEC. 4. JOBS PROGRAMS FOR LONG-TERM UNEMPLOYED 
WORKERS. 
(a) IN GENERAL.— 
(1) ESTABLISHMENT.—The Secretary shall es-
tablish and administer a jobs initiative for eligible 
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workers, consisting of jobs programs carried out 
through local boards. 
(2) PARTNERSHIPS.—A local board may enter 
into a partnership with one or more community- 
based organizations to submit an application and 
carry out a jobs program. 
(3) AGREEMENTS.—In administering the initia-
tive, the Secretary shall enter into 4-year agree-
ments with local boards, under which the Secretary 
shall provide payments to local boards. Such an 
agreement shall specify which functions described in 
this Act will be carried out by the local board, by the 
community-based organization, and by the partner-
ship. 
(4) PAYMENTS.—The Secretary shall make 
such a payment in an amount that equals the eligi-
ble costs incurred by the local board— 
(A) to provide wages and compensation for 
program positions for eligible workers under 
this section, minus any employer share of the 
eligible costs of providing the wages and com-
pensation; 
(B) to provide career services, supportive 
services, and training services to eligible work-
ers under this section; and 
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(C) to administer the jobs program under 
this section. 
(b) LOCAL BOARD APPLICATION.—To be eligible to 
enter into an agreement under subsection (a), a local 
board shall submit an application to the Secretary at such 
time, in such manner, and containing a 4-year plan that 
includes such information as the Secretary may require, 
including— 
(1) the number of eligible workers that the local 
board proposes to serve under the jobs program in-
volved and the estimated cost of serving that number 
of workers; 
(2) a plan for one-stop operators to identify the 
issues preventing each eligible worker served by the 
jobs program from securing employment, and to re-
duce the impact of those issues with career services, 
supportive services, and training services; 
(3) a description of how the local board will en-
gage labor organizations, joint labor-management or-
ganizations, community-based organizations, commu-
nity colleges, economic development agencies, and 
career and technical education programs as partners 
to provide training services to eligible workers, in-
cluding any— 
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(A) adult education and literacy activities, 
including activities of English language acquisi-
tion, and integrated education and training pro-
grams; 
(B) pre-apprenticeship and registered ap-
prenticeship programs; and 
(C) career pathways; 
(4) a description of how the local board will 
support the creation and expansion of industry or 
sector partnerships and alignment of the jobs pro-
gram with career pathways to improve outcomes for 
eligible workers in program positions; 
(5) proposed levels for the performance ac-
countability measures described in subsection (c); 
(6) a description of the controls established by 
the local board to assure that the local board— 
(A) disburses funding to each participating 
employer for all eligible costs described in sub-
section (h) incurred under the jobs program, 
minus the employer share described in sub-
section (i); 
(B) oversees participating employers to en-
sure compliance with program rules and collec-
tion of accurate data for performance account-
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ability measures described in subsection (c); 
and 
(C) requests accurate advance payment or 
reimbursement for the eligible costs described 
in subsection (h), minus any employer share de-
scribed in subsection (i) of the eligible costs; 
(7) a description of how the local board will col-
laborate with the corresponding State board to im-
plement the jobs program and align such program 
with the plan submitted by the corresponding State 
board under subtitle A of title I of the Workforce In-
novation and Opportunity Act (29 U.S.C. 3111 et 
seq.); 
(8) a description of how the local board will 
align the activities carried out under the grant with 
the activities carried out under— 
(A) the plans submitted by the local board 
under subtitle A of title I of the Workforce In-
novation and Opportunity Act (29 U.S.C. 3111 
et seq.); 
(B) the employment and training program 
established by the corresponding State under 
the supplemental nutrition assistance program 
established under the Food and Nutrition Act 
of 2008 (7 U.S.C. 2011 et seq.); 
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(C) the corresponding State program for 
temporary assistance for needy families estab-
lished under part A of title IV of the Social Se-
curity Act (42 U.S.C. 601 et seq.); 
(D) the national service plan submitted by 
the corresponding State Commission on Na-
tional and Community Service under section 
178 of the National and Community Service 
Act of 1990 (42 U.S.C. 12638); 
(E) programs established under the Second 
Chance Act of 2007 (34 U.S.C. 60501 et seq.); 
(F) employment and community develop-
ment programs carried out by the Secretary of 
Housing and Urban Development; 
(G) career and technical education pro-
grams authorized by the Carl D. Perkins Ca-
reer and Technical Education Act of 2006 (20 
U.S.C. 2301 et seq.); 
(H) the continuum of care projects (relat-
ing to ending homelessness) carried out under 
applications submitted, by communities serving 
an area that is substantially similar to the cov-
ered area, under subtitle C of title IV of the 
McKinney-Vento Homeless Assistance Act (42 
U.S.C. 11381 et seq.); 
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(I) programs to support competitive inte-
grated employment for individuals with disabil-
ities, including programs of vocational rehabili-
tation services under title I of the Rehabilita-
tion Act of 1973 (29 U.S.C. 720 et seq.) and 
the Ticket to Work and Self-Sufficiency Pro-
gram carried out under section 1148 of the So-
cial Security Act (42 U.S.C. 1320b–19); 
(J) the program of employment services 
provided under the Wagner-Peyser Act (29 
U.S.C. 49 et seq.); and 
(K) employment and training programs for 
veterans; and 
(9) assurances that— 
(A) prior to the placement of an eligible 
worker in a program position, the local board 
will consult with the appropriate local labor or-
ganization, if any, representing employees in 
the covered area who are engaged in the same 
or similar work as that proposed to be carried 
out by the eligible worker, to prevent the dis-
placement and protect the rights of such em-
ployees; and 
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(B) the local board will comply with the 
nondisplacement provisions of subsection (f) 
and the grievance procedures of subsection (g). 
(c) PERFORMANCE ACCOUNTABILITY.— 
(1) IN GENERAL.—For each local board, the 
performance accountability measures shall consist of 
the indicators described in paragraph (2) and the 
levels described in paragraph (3). 
(2) INDICATORS.—The indicators for the per-
formance accountability measures shall consist of— 
(A) the primary indicators of performance 
described in section 116(b)(2)(A)(i) of the 
Workforce Innovation and Opportunity Act (29 
U.S.C. 3141(b)(2)(A)(i)); 
(B) the number of eligible workers placed 
in jobs created by the jobs program of the local 
board; 
(C) for households with an eligible worker 
who participated in the program, the average 
increase in income by the end of such participa-
tion; and 
(D) the percentage of program positions 
filled by eligible workers who were individuals 
with a barrier to employment. 
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(3) ACCEPTABLE
OVERALL
LEVELS
OF
PER-
FORMANCE.—The local board shall reach agreement 
with the Secretary, acting in consultation with the 
Secretary of Education, on acceptable overall levels 
of performance for each indicator described in para-
graph (2) for each year covered by the application 
submitted under subsection (b). In reaching such 
agreements, the local board and the Secretaries shall 
take into account— 
(A) the purpose of this Act, as described in 
section 2, by seeking to provide job opportuni-
ties for as many eligible workers as possible; 
and 
(B) the factors described in section 
116(b)(3)(A)(v) of the Workforce Innovation 
and 
Opportunity 
Act 
(29 
U.S.C. 
3141(b)(3)(A)(v)), except that references in 
that section to a State shall be considered to be 
references to a local area. 
(4) REPORTING REQUIREMENT.— 
(A) IN GENERAL.—The local board shall 
provide information specifying the board’s level 
of performance on the performance account-
ability measures specified in this subsection, in-
cluding disaggregated data specified under sub-
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paragraph (B), as part of the local board per-
formance reports established under section 
116(d) of the Workforce Innovation and Oppor-
tunity Act (29 U.S.C. 3141(d)). 
(B) DISAGGREGATED
DATA.—Each such 
performance report shall include data specifying 
the board’s level of performance with respect to 
individuals 
with 
barriers 
to 
employment, 
disaggregated by each subpopulation of such in-
dividuals, and by race, ethnicity, sex, and age. 
(d) SANCTIONS FOR FAILURE TO MEET PERFORM-
ANCE ACCOUNTABILITY MEASURES OR SUBMIT AN APPLI-
CATION.— 
(1) PERFORMANCE
IMPROVEMENT
PLAN
AND 
TECHNICAL ASSISTANCE.—If a local board fails to 
meet performance accountability measures specified 
in subsection (c)— 
(A) the local board shall develop a per-
formance improvement plan; and 
(B) the Secretary and State board may 
provide technical assistance, including assist-
ance in the development of the performance im-
provement plan. 
(2) REPEATED FAILURE TO MEET PERFORM-
ANCE ACCOUNTABILITY MEASURES.—If a local board 
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fails to meet the performance accountability meas-
ures for at least 3 consecutive years, the Secretary 
may enter into an agreement with a community- 
based organization to carry out a jobs program serv-
ing the corresponding local area in place of the local 
board. 
(3) FAILURE TO SUBMIT APPLICATION.— 
(A) IN GENERAL.—If a local board fails to 
submit an application under subsection (b) by 
the such date as the Secretary may require— 
(i) the Secretary shall notify the local 
board of the local board’s failure to submit 
such application; and 
(ii) the Secretary and State board 
may provide technical assistance to enable 
the local board to submit such application. 
(B) FAILURE
TO
SUBMIT
APPLICATION 
FOR 1 YEAR OR LONGER.—If a local board fails 
to submit an application under subsection (b) 
for 1 year or longer after the date described in 
subparagraph (A), the Secretary may enter into 
an agreement with a community-based organi-
zation to carry out a jobs program serving the 
corresponding local area in place of the local 
board. 
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(4) PROGRAMS CARRIED OUT BY COMMUNITY- 
BASED ORGANIZATIONS.— 
(A) APPLICATION.—A community-based 
organization that seeks to carry out a jobs pro-
gram in place of a local board as described in 
paragraph (2) or (3) shall submit an applica-
tion to the Secretary. 
(B) SELECTION.—The Secretary shall se-
lect, on a competitive basis, community-based 
organizations to carry out jobs programs as de-
scribed in paragraphs (2) and (3) for a local 
area. The Secretary shall select such organiza-
tions based on their ability to implement a jobs 
program that achieves the highest levels on the 
performance accountability measures, taking 
into account the factors described in section 
116(b)(3)(A)(v) of the Workforce Innovation 
and 
Opportunity 
Act 
(29 
U.S.C. 
3141(b)(3)(A)(v)), except that references in 
that section to a State shall be considered to be 
references to a local area, and meets the other 
requirements specified in this Act. 
(C) RENEWAL.—After the initial selection 
under subparagraph (B), the Secretary shall, 
every 4 years, hold a new competition to select 
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community-based organizations to carry out 
jobs programs for local areas. The local board 
for such an area may also submit an application 
in such competition. 
(D) IMPLEMENTATION.—This Act shall 
apply to a community-based organization se-
lected under this paragraph as if the organiza-
tion was the local board for the corresponding 
local area. 
(e) PARTICIPATING EMPLOYER.— 
(1) 
IN
GENERAL.—Participating 
employers 
shall be selected by a local board. An entity who 
seeks to be a participating employer shall enter into 
an agreement with the local board to act as a par-
ticipating employer under this subsection. 
(2) SELECTION CRITERIA.— 
(A) IN GENERAL.—To select participating 
employers (including the renewal of such a se-
lection), the local board shall take into account 
the considerations, and comply with the require-
ments, specified in subparagraphs (B) through 
(H). 
(B) WORKER FEEDBACK.—The local board 
shall provide an opportunity for eligible workers 
to provide feedback on participating employers, 
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and shall take this feedback into account when 
determining whether to renew the selection of 
an employer. 
(C) LABOR ORGANIZATIONS.— 
(i) IN
GENERAL.—The local board 
shall consider input from labor organiza-
tions and joint labor-management organi-
zations to select participating employers. 
(ii) COLLECTIVE BARGAINING AGREE-
MENTS.—For a site of employment at 
which workers are covered by a collective 
bargaining agreement, the local board shall 
not place a program participant in a pro-
gram position at the site without the con-
sent of all labor organizations and joint 
labor-management 
organizations 
rep-
resenting workers at such site. 
(D) 
LONG-TERM
EMPLOYMENT
PROS-
PECTS.—The local board shall consider whether 
the employer under consideration is proposing 
or providing an experience that will help eligible 
workers secure long-term employment after the 
program position ends, either with the partici-
pating employer or another employer. 
(E) COMMUNITY IMPACT AND INPUT.— 
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(i) 
COMMUNITY
IMPACT
PREF-
ERENCE.—The local board shall consider 
whether the employer is offering program 
positions in which the work to be per-
formed is designed to have a positive im-
pact on the communities in the covered 
area served through the jobs program, and 
shall develop criteria for that positive im-
pact based on input from members of such 
communities. 
(ii) COMMUNITY
INPUT.—The local 
board shall also provide an opportunity for 
such communities to provide input on how 
a participating employer should be selected 
and whether specific employers should be 
selected, and shall take this input into ac-
count when selecting a participating em-
ployer. 
(F) IN-DEMAND INDUSTRY SECTOR OR OC-
CUPATION.—The local board shall consider 
whether the employer is offering program posi-
tions that lead to employment in an in-demand 
industry sector or occupation. 
(G) TYPE OF BUSINESS.—The local board 
shall consider whether the employer is— 
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(i) a worker-owned enterprise; or 
(ii) a small business concern owned 
and controlled by women, a small business 
concern owned and controlled by socially 
and economically disadvantaged individ-
uals, a small business concern owned and 
controlled by veterans, or a qualified 
HUBZone small business concern, as those 
4 terms are defined in section 8(d)(3) of 
the Small Business Act (15 U.S.C. 
637(d)(3)). 
(H) OTHER
FACTORS.—The local board 
may consider other factors, besides the factors 
explicitly stated in this paragraph, that are rel-
evant to achieving the performance account-
ability measures and other requirements speci-
fied in this Act. 
(3) PARTICIPATING
EMPLOYER
DUTIES.—The 
participating employer shall— 
(A) provide wages for each eligible worker 
in a program position at a rate that— 
(i) is not less than the greatest of the 
3 rates described in subsection (h)(1)(B); 
(ii) is not less than the customary 
rate paid by the employer for the same or 
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similar work performed by other employees 
who— 
(I) are not eligible workers in 
program positions; 
(II) are similarly situated in 
similar occupations by the same em-
ployer; and 
(III) have similar training, expe-
rience, and skills; and 
(iii) is in accordance with any applica-
ble collective bargaining agreements at the 
site of employment; 
(B) provide benefits for each eligible work-
er in a program position— 
(i) at the same level as is provided to 
other employees who are not eligible work-
ers in program positions; and 
(ii) in accordance with any applicable 
collective bargaining agreements at the site 
of employment; 
(C) ensure that the site of employment is 
a location where an eligible worker in a pro-
gram position who is an individual with a dis-
ability, as defined in section 7 of the Rehabilita-
tion Act of 1973 (29 U.S.C. 705), interacts 
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with other persons who are not such individuals 
with disabilities (not including supervisory per-
sonnel or individuals who are providing services 
to such worker) to the same extent as individ-
uals who are not such individuals with disabil-
ities and who are in comparable positions inter-
act with other persons; 
(D) offer opportunities for advancement to 
eligible workers in program positions, as appro-
priate, that are similar to those for other em-
ployees who are not eligible workers in program 
positions; and 
(E) fulfill legal and administrative duties 
including payroll processing, tax withholding 
and documentation, making deductions for any 
applicable labor organization dues, and meeting 
liability requirements such as workers’ com-
pensation requirements. 
(4) PAYMENT TO PARTICIPATING EMPLOYER.— 
(A) WAGES
AND
COMPENSATION.—The 
local board shall provide payment to the partici-
pating employer for all eligible costs described 
in subsection (h) for wages and compensation 
provided by the employer for eligible workers in 
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program positions, minus the employer share 
described in subsection (i). 
(B) 
EMPLOYER-PROVIDED
TRAINING.— 
The local board may enter into an agreement 
with the participating employer under which the 
employer provides on-the-job training or cus-
tomized training to eligible workers, and, sub-
ject to subsection (h)(3), the local board pro-
vides payment to reimburse the employer for 
the cost of providing the training described in 
the agreement. 
(f) NONDISPLACEMENT.— 
(1) NONDISPLACEMENT OF EXISTING EMPLOY-
EES.—The participating employer shall not place an 
eligible worker hired for a jobs program in a position 
under this Act if— 
(A) employing such individual will result in 
the layoff or partial displacement (such as a re-
duction in hours, wages, or employment bene-
fits) of an existing employee (as of the date of 
the hiring) of the employer; 
(B) such individual will assume any of the 
duties or responsibilities of an employee who is 
on strike; 
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(C) employing such individual infringes 
upon the promotional opportunities of an exist-
ing employee (as of the date of the hiring) of 
the employer; or 
(D) such individual will perform the same 
work or substantially the same work as that 
performed by any individual, employed by the 
employer at the site of employment, who— 
(i) has been laid off or partially dis-
placed (as such term is described in sub-
paragraph (A)); and 
(ii) has not been offered by to be re-
stored to the position the employee had im-
mediately prior to being laid off or par-
tially displaced. 
(2) PROHIBITION ON ROTATION.—The partici-
pating employer may not make placements in a pro-
gram position by constantly rotating new eligible 
workers into a permanent position temporarily, ex-
cept in circumstances in which— 
(A) the employer reasonably intends to 
promote each such eligible worker to a different 
permanent position within the employer’s busi-
ness at the end of that worker’s employment in 
the program position; or 
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(B) the program position is part of an on- 
the-job training program that leads to a recog-
nized postsecondary credential. 
(3) NONDISPLACEMENT OF GOVERNMENT EM-
PLOYEES OR FUNCTIONS.— 
(A) GOVERNMENT
AGENCY.—A partici-
pating employer that is a government agency 
may not place an eligible worker hired for a 
jobs program in an existing position (as of the 
date of the hiring) that is subject to civil service 
laws of a Federal, State, or local government. 
(B) OTHER PARTICIPATING EMPLOYER.— 
A participating employer that is not a govern-
ment agency may not use funds provided under 
this Act to provide services or carry out other 
functions that are customarily provided by a 
unit of State government or general local gov-
ernment. 
(4) LIMITATION ON PROGRAM POSITIONS FOR 
PARTICIPATING EMPLOYER.— 
(A) IN GENERAL.—No more than 10 per-
cent of the employees of a participating em-
ployer may be in program positions funded 
under this Act, except as provided in any of 
subparagraphs (B) through (E). 
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(B) MINIMUM.—A participating employer 
with fewer than 10 employees may employ 1 in-
dividual in a program position funded under 
this Act. 
(C) MAXIMUM.—A participating employer 
with more than 1,000 employees may employ 
not more than 100 individuals in program posi-
tions funded under this Act, unless the em-
ployer obtains permission under subparagraph 
(D). 
(D) PERMISSION.— 
(i) IN GENERAL.—A local board may 
grant permission for a participating em-
ployer to have a higher percentage or num-
ber of employees in program positions than 
is allowed under subparagraph (A) or 
(C)— 
(I) under the circumstance de-
scribed in subclause (I) or (II) of 
clause (ii); or 
(II) under the circumstance de-
scribed in clause (ii)(III), with the 
consent of all labor organizations and 
joint labor-management organizations 
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representing workers at the site in-
volved. 
(ii) 
CIRCUMSTANCES.—The 
cir-
cumstances described in this clause are 
any of the following: 
(I) A circumstance in which the 
most recent 3-month average of the 
unemployment rate in the covered 
area is not less than 8 percent. 
(II) A circumstance in which the 
employer is a worker-owned enterprise 
and worker-ownership is widely avail-
able to the employer’s employees, in-
cluding eligible workers in program 
positions. 
(III) A circumstance in which a 
collective bargaining agreement covers 
eligible workers in program positions 
at a site of employment. 
(iii) DURATION.— 
(I) IN
GENERAL.—An employer 
granted the permission described in 
clause (i) under the circumstance de-
scribed in clause (ii)(I) may be grant-
ed such permission for a term of not 
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more than 2 years, subject to sub-
clause (II), regardless of whether the 
unemployment rate in the covered 
area falls below 8 percent during that 
2-year period. 
(II) RENEWAL.—If the permis-
sion is granted under a circumstance 
described in clause (ii)(I) and is 
scheduled to expire in 3 months or 
less, and if the most recent 3-month 
average of the unemployment rate in 
the covered area is not less than 8 
percent, the local board may renew 
the permission for another term de-
scribed in subclause (I). 
(E) APPLICATION TO GOVERNMENT AGEN-
CY.—If the employer is a Federal, State, or 
local agency, the limitations described in sub-
paragraphs (A), (B), and (C) shall be applied 
separately to each unit within that agency. 
(F) MODIFICATION.—The requirements of 
this paragraph may be modified under section 
5(e). 
(G) DEFINITION.—For purposes of this 
paragraph and subsection (g), the term ‘‘par-
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