(i) estimating the number of dis-
located workers in the United States who
received notice of termination from their
jobs which complied with the requirements
of the Worker Adjustment and Retraining
Notification Act (29 U.S.C. 2101 et seq.);
(ii) estimating the number of dis-
located workers in the United States who
received some notice of termination from
their jobs under such Act but less than the
full amount of notice required by such Act;
(iii) estimating the number of dis-
located workers in the United States who
did not receive any notice of termination
from their jobs in violation of the require-
ments of such Act; and
(iv) analyzing the reasons why dis-
located workers described in clauses (ii)
and (iii) did not receive appropriate ad-
vance notice of termination from their jobs.
(B) REPORT.—Not later than 2 years after
the date of the enactment of this Act, the Sec-
retary shall submit to the Congress a report
containing—
(i) the results of the survey conducted
under subparagraph (A); and
(ii) recommendations for appropriate
legislation that would increase the likeli-
hood that all dislocated workers covered by
the requirements of the Worker Adjust-
ment and Retraining Notification Act (29
U.S.C. 2101 et seq.) would receive notice
of termination from their jobs in accord-
ance with the requirements of such Act.
(c) DEMONSTRATIONS.—
(1) IN GENERAL.—The Secretary shall conduct
a program of demonstration projects to develop and
improve the methods for addressing economic dis-
location and promoting worker adjustment. Such
program may include projects that—
(A) provide services to upgrade the skills
of employed workers who are at risk of being
permanently laid off; and
(B) assist in retraining employed workers
in new technologies and work processes that
will facilitate the conversion or restructuring of
businesses into high performance work organi-
zations and avert plant closings or substantial
layoffs.
(2) LIMITATION.—Each demonstration project
conducted under paragraph (1) shall not exceed
three years in duration.
(3) EVALUATION COMPONENT.—The Secretary
shall conduct or provide for an evaluation of each of
the projects carried out under paragraph (1) and
shall provide for the dissemination of each such eval-
uation through the Capacity Building and Informa-
tion and Dissemination Network established under
section 453 of the Job Training Partnership Act (29
U.S.C. 1733).
(d) ANNUAL REPORT.—The Secretary shall submit
to the Committee on Education and Labor of the House
of Representatives and the Committee on Labor and
Human Resources of the Senate an annual report describ-
ing the activities of the Secretary under this section during
the preceding fiscal year.
SEC. 125. CAPACITY BUILDING AND TECHNICAL ASSIST-
ANCE.
(a) IN GENERAL.—The Secretary shall provide,
through grants, contracts, or other arrangements, staff
training and technical assistance (primarily using com-
puter-based and telecommunications technologies) to
States, substate grantees, one-stop career systems, com-
munities, business and labor organizations, service provid-
ers, industry consortia, and other entities, to enhance their
capacity to develop and deliver effective adjustment assist-
ance services to workers and to avert plant closings or sub-
stantial layoffs. Such training and assistance may include
the development of management information systems, cus-
tomized training programs, and the dissemination of com-
puter-accessed learning systems.
(b) COORDINATION.—The Secretary shall integrate
the activities carried out under subsection (a) with the ac-
tivities of the Capacity Building and Information and Dis-
semination Network established under section 453 of the
Job Training Partnership Act (29 U.S.C. 1733).
SEC. 126. FEDERAL BYPASS AUTHORITY.
If a State chooses not to participate in the program
authorized under subtitle A of title I or fails to submit
an approved plan under such part, the Secretary shall use
the amount that would be allotted to such State under
section 101(b) to provide for the delivery in that State
of the programs, activities, and services authorized under
this title until such time as such State chooses to partici-
pate in the program.
Subtitle 
C—Performance 
Stand-
ards and Quality Assurance Sys-
tems
SEC. 131. PERFORMANCE STANDARDS.
(a) IN GENERAL.—The Secretary, after consultation
with the Secretary of Education, Governors, and substate
grantees shall establish performance standards relating to
the provision of services under this title. Such standards
shall be based on factors the Secretary determines to be
appropriate, which may include—
(1) placement, retention, and earnings of par-
ticipants in unsubsidized employment, including—
(A) earnings at six months or more after
termination from the program; and
(B) comparability of wages at a specified
period after termination from the program with
wages prior to participation in the program;
(2) acquisition of skills pursuant to a skill
standards and skill certification system endorsed by
the National Skill Standards Board established
under the Goals 2000: Educate America Act;
(3) satisfaction of participants and employers
with services provided and employment outcomes;
and
(4) the quality of services provided to hard-to-
serve populations, such as low income individuals,
older workers, and displaced homemakers.
(b) ADJUSTMENTS.—Each Governor shall, in accord-
ance with regulations established by the Secretary and
after consultation with substate grantees, prescribe ad-
justments to the performance standards established under
section (a) for the substate grantees established in the
State based on—
(1) specific economic, geographic, and demo-
graphic factors in the State and in substate areas
within the State;
(2) the characteristics of the population to be
served, including the demonstrated difficulties in
serving special populations; and
(3) the types of services to be provided to such
populations.
(c) FAILURE TO MEET STANDARDS.—
(1) UNIFORM CRITERIA.—
(A) IN GENERAL.—The Secretary shall es-
tablish uniform criteria for determining whether
a substate grantee fails to meet the perform-
ance standards under this section.
(B) MODIFICATION.—Such criteria may
not be modified more than once every two
years.
(2) TECHNICAL
ASSISTANCE.—The Governor
shall provide technical assistance to substate grant-
ees that fail to meet the performance standards
under the uniform criteria established under para-
graph (1).
(3) REPORT
ON
PERFORMANCE.—Not later
than 90 days after the end of each program year,
each Governor shall submit to the Secretary a report
containing the final performance standards for the
State and the final performance standards for each
substate grantee in the State, including a description
of the technical assistance provided or planned to be
provided in accordance with paragraph (2).
(4) DESIGNATION OF ANOTHER ENTITY AS SUB-
STATE
GRANTEE.—If a substate grantee fails to
meet the performance standards for two consecutive
program years, the Governor shall notify the Sec-
retary and the substate grantee of the continued
failure and shall terminate the grant agreement with
such grantee and designate another entity as the
substate grantee consistent with section 116(b)(2).
(5) APPEAL.—
(A) IN GENERAL.—A substate grantee that
has received notice under paragraph (4) that
such grantee has failed to meet the performance
standards for two consecutive years may, not
later than 30 days after receiving such notice,
appeal to the Secretary the decision of the Gov-
ernor to terminate the grant agreement with
such grantee.
(B) DECISION.—The Secretary shall issue
a decision on an appeal under subparagraph
(A) not later than 30 days after receiving notice
of such appeal.
(d) INCENTIVE GRANTS.—
(1) AUTHORIZATION.—From the funds reserved
pursuant to section 101(c)(1), the Governor shall re-
serve funds to provide incentive grants to substate
grantees in the State that exceed the performance
standards under this section.
(2) USE OF AMOUNTS.—Such substate grantees
shall use amounts from such grants to enhance or
expand services provided under this title.
SEC. 132. CUSTOMER FEEDBACK.
(a) METHODS.—Each substate grantee shall estab-
lish, in accordance with standards established by the Sec-
retary, methods for obtaining, on a regular basis, informa-
tion from eligible individuals and employers who have re-
ceived services under this title regarding the effectiveness
and quality of such services and of service providers. Such
methods may include the use of surveys, interviews, and
focus groups.
(b) ANALYSIS AND DISSEMINATION.—Each substate
grantee shall analyze the information obtained from using
the methods established under subsection (a) on a regular
basis for use in improving the administration of the pro-
grams under this title and assisting participants in choos-
ing from among eligible service providers, including infor-
mation to assist individuals from various demographic
groups to choose from among such providers. Employees
of service providers with respect to which customer feed-
back information is being collected and analyzed shall be
provided with such information and analysis, and offered
an opportunity to provide comments before such informa-
tion and analysis is made available to the public.
SEC. 133. ELIGIBILITY REQUIREMENTS FOR PROVIDERS OF
EDUCATION AND TRAINING SERVICES.
(a) ELIGIBILITY REQUIREMENTS.—A provider of
education and training services shall be eligible to receive
funds under this title if such provider—
(1) is either—
(A) an institution of higher education that
continues to be eligible to participate in title IV
of the Higher Education Act of 1965; or
(B) determined to be eligible under the
procedures described in subsection (b); and
(2) provides the performance-based information
required pursuant to subsection (c).
(b) ALTERNATIVE ELIGIBILITY PROCEDURE.—
(1) IN GENERAL.—The Governor shall estab-
lish, in accordance with standards established by the
Secretary, an alternative eligibility procedure for
providers of education and training services in such
State desiring to receive funds under this title but
that are not eligible to participate in title IV of the
Higher Education Act of 1965. Such procedure shall
establish minimum acceptable levels of performance
for such providers based on factors and guidelines
developed by the Secretary, after consultation with
the Secretary of Education. Such factors shall be
comparable in rigor and scope to those provisions of
part H of such title of such Act that are used to de-
termine an institution of higher education’s eligi-
bility to participate in programs under such title as
are appropriate to the type of provider seeking eligi-
bility under this subsection and the nature of the
education and training services to be provided.
(2) LIMITATION.—Notwithstanding paragraph
(1), if the participation of an institution of higher
education in any of the programs under such title of
such Act is terminated, such institution shall not be
eligible to receive funds under this Act for a period
of two years.
(c) PERFORMANCE-BASED INFORMATION.—
(1) CONTENTS.—The Secretary, in consultation
with the Secretary of Education, shall identify per-
formance-based information that is to be submitted
by providers of services desiring to be eligible under
this section and shall establish a standard methodol-
ogy for retrieving such information. Such informa-
tion shall be independently verified prior to submis-
sion and may include information by various demo-
graphic groups relating to—
(A) the percentage of students completing
the programs conducted by the provider;
(B) the rates of licensure of graduates of
the programs conducted by the provider;
(C) the percentage of graduates of the pro-
grams meeting skill standards and certification
requirements endorsed by the National Skill
100
Standards Board established under the Goals
2000: Educate America Act;
(D) the rates of placement and retention in
employment, and earnings of the graduates of
the programs conducted by the provider;
(E) the percentage of students who ob-
tained employment in an occupation related to
the program conducted by the provider; and
(F) the warranties or guarantees provided
by such provider relating to the skill levels or
employment to be attained by students.
(2) ADDITIONAL INFORMATION.—The Governor
may, with the approval of the Secretary, prescribe
additional performance-based information that shall
be submitted by providers pursuant to this sub-
section.
(d) ADMINISTRATION.—
(1) STATE AGENCY.—The Governor shall des-
ignate a State agency to collect, verify, and dissemi-
nate the performance-based information submitted
under subsection (c).
(2) SUBMISSION
OF
INFORMATION
TO
STATE
AGENCY.—A provider of education and training serv-
ices that desires to be eligible to receive funds under
this title shall submit the information required under
101
subsection (c) to the State agency designated under
paragraph (1) at such time and in such form as
such State agency may require.
(3) LIST OF ELIGIBLE PROVIDERS.—The State
agency designated under paragraph (1) shall compile
a list of eligible providers, accompanied by the per-
formance-based information submitted under para-
graph (2), and disseminate such list and information
to the substate grantees within the State.
(4) ACCURACY OF INFORMATION.—
(A) IN
GENERAL.—If the State agency
designated under paragraph (1) determines that
information concerning a provider is inaccurate,
such provider shall be disqualified from receiv-
ing funds under this title for a period of two
years, unless such provider can demonstrate to
the satisfaction of the Governor or the designee
of such Governor, that the information was pro-
vided in good faith. Individuals who received
training from such a disqualified provider shall
be provided the opportunity to receive appro-
priate additional training and income support
from a qualified provider.
(B) APPEAL.—The Governor shall estab-
lish a procedure for a service provider to appeal
102
a determination by the State agency designated
under paragraph (1) that results in a disquali-
fication under subparagraph (A). Such proce-
dure shall provide an opportunity for a hearing
and prescribe appropriate time limits to ensure
prompt resolution of the appeal.
(5) ASSISTANCE
IN
DEVELOPING
INFORMA-
TION.—The State agency designated under para-
graph (1) may provide technical assistance to edu-
cation and training providers in developing the infor-
mation required under subsection (b). Such assist-
ance may include facilitating the utilization of State
administrative records, such as unemployment com-
pensation wage records, and other appropriate co-
ordination activities.
(6) CONSULTATION.—The Secretary shall con-
sult with the Secretary of Education regarding the
eligibility of institutions of higher education or other
providers of education and training to participate in
programs under this Act or under title IV of the
Higher Education Act of 1965.
(e) ON-THE-JOB TRAINING EXCEPTION.—
(1) IN
GENERAL.—A provider of on-the-job
training shall not be subject to the requirements of
subsections (a), (b), and (c).
103
(2) COLLECTION AND DISSEMINATION OF IN-
FORMATION.—The substate grantee shall collect per-
formance-based information from on-the-job training
providers as the Secretary may require.
Subtitle D—Program Requirements
SEC. 141. GENERAL REQUIREMENTS.
Except as otherwise provided in this title, the follow-
ing conditions are applicable to all programs under this
title:
(1) PROHIBITION ON INDUCING RELOCATION OF
ESTABLISHMENTS.—
(A) IN
GENERAL.—No funds provided
under this title shall be used or proposed for
use to encourage or induce the relocation, of an
establishment or part thereof, that results in a
loss of employment for any employee of such es-
tablishment at the original location of such es-
tablishment.
(B) PROHIBITION
ON
CUSTOMIZED
OR
SKILL
TRAINING, ON-THE-JOB
TRAINING, OR
COMPANY SPECIFIC ASSESSMENTS OF JOB AP-
PLICANTS OR EMPLOYEES.—No funds provided
under this title shall be used for customized or
skill training, on-the-job training, or company
specific assessments of job applicants or em-
104
ployees, for any establishment or part thereof,
that has relocated, until 1 year after the date
on which such establishment commences oper-
ations at the new location, if the relocation of
such establishment or part thereof, results in a
loss of employment for any employee of such es-
tablishment at the original location.
(C) ENFORCEMENT PROCEDURES.—
(i) INVESTIGATION.—If a violation of
subparagraph (A) or (B) is alleged, the
Secretary shall conduct an investigation to
determine whether a violation has oc-
curred.
(ii) PAYMENT
OF
PENALTY.—If the
Secretary determines that a violation of
subparagraph (A) or (B) has occurred, the
Secretary shall require the State, substate
area, or substate grantee that has violated
subparagraph (A) or (B) to—
(I) repay to the United States an
amount equal to the amount expended
in violation of subparagraph (A) or
(B), in accordance with subsections
(d) or (e) of section 154; and
105
(II) pay an additional amount
equal to the amount required to be re-
paid under subclause (I), unless the
State, substate area, or substate
grantee demonstrates to the Secretary
that it neither knew nor reasonably
could have known (after an inquiry
undertaken with due diligence) that it
provided funds in violation of sub-
paragraph (A) or (B).
(iii) DEPOSIT OF PENALTY AMOUNTS
IN
THE
TREASURY.—Amounts received
under clause (ii)(II) shall be deposited in a
special account in the Treasury for use by
the Secretary for carrying out this title.
(2) SPECIAL PROGRAMS.—Efforts shall be made
to develop programs under this title which contrib-
ute to occupational development, upward mobility,
development of new careers, and overcoming sex-
stereotyping in occupations traditional for the other
sex.
(3) JOINT
SUBSTATE
AGREEMENTS.—A sub-
state grantee may enter into an agreement or con-
tract with another substate grantee to pay or share
the cost of educating, training, or placing in employ-
106
ment individuals participating in programs assisted
under this Act, including the provision of supportive
services.
(4) ON-THE-JOB TRAINING.—
(A) PAYMENTS
TO
EMPLOYERS.—Pay-
ments to employers for on-the-job training of
individuals participating in programs assisted
under this title shall not, during the period of
such training, average more than 50 percent of
the amount of wages paid by the employer to
such individuals, and such payments shall be
deemed to be in compensation for—
(i) the extraordinary costs associated
with training individuals participating in
programs assisted under this title; and
(ii) the costs associated with the lower
productivity of such individuals.
(B) DURATION OF TRAINING.—
(i) IN GENERAL.—On-the-job training
authorized under this title for individuals
participating in programs assisted under
this title shall be limited in duration to a
period not in excess of the period generally
required for acquisition of skills needed for
the position within a particular occupation,
108
(ii) ADDITIONAL REQUIREMENTS FOR
CONTRACTS
ENTERED
INTO
THROUGH
INTERMEDIARY
BROKERING
CONTRAC-
TOR.—Each on-the-job training contract
that is not directly entered into by a sub-
state grantee with an employer (but in-
stead 
is 
contracted 
through 
an
intermediary brokering contractor) shall, in
addition to meeting the requirements con-
tained in clause (i), specify—
(I) the outreach, recruitment,
participant training, counseling, place-
ment, monitoring, followup, and other
services to be provided directly by the
brokering contractor within its own
organization;
(II) the services to be provided
by the employer conducting the on-
the-job training; and
(III) the services to be provided,
with or without cost, by other agen-
cies and subcontractors.
(iii) ON-SITE MONITORING REQUIRE-
MENT
WITH
RESPECT
TO
SUBCONTRAC-
TOR.—If an intermediary brokering con-
109
tractor enters into a contract with a sub-
contractor to provide training or other
services, the brokering contractor shall en-
sure, through on-site monitoring, compli-
ance with the subcontract terms prior to
making payment to the subcontractor.
(iv) PROHIBITION OF CONTRACT WITH
CERTAIN EMPLOYERS.—In accordance with
regulations developed by the Secretary, on-
the-job training contracts under this title
shall not be entered into with employers
who have received payments under pre-
vious contracts and have exhibited a pat-
tern of failing to provide on-the-job train-
ing 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.
(5) PROHIBITION ON FEES FOR PLACEMENT OR
REFERRAL.—A person or organization may not
charge an individual a fee for the placement or re-
110
ferral of such individual in or to a training program
under this title.
(6) PROHIBITION
ON
SUBSIDIZED
EMPLOY-
MENT.—No funds may be provided under this Act
for any subsidized employment with any private for-
profit employer.
(7) RETENTION OF PROGRAM INCOME.—
(A) IN GENERAL.—Income under any pro-
gram under this title administered by a public
or private nonprofit entity may be retained by
such entity only if used to continue to carry out
the program.
(B) 
MAINTENANCE
OF
FINANCIAL
RECORDS.—Each such public or private non-
profit entity shall maintain records sufficient to
determine the amount of income received and
the purposes for which such income is ex-
pended.
(C) INCOME DESCRIBED.—For purposes of
this paragraph, the term ‘‘income’’ shall in-
clude—
(i) receipts from goods or services (in-
cluding conferences) provided as a result of
activities funded under the title;
111
(ii) funds provided to a service pro-
vider under this title that are in excess of
the costs associated with the services pro-
vided; and
(iii) interest income earned on funds
received under this title.
(8) NOTIFICATION
AND
CONSULTATION
RE-
QUIREMENTS.—
(A) 
REQUIREMENTS
OF
THE
SEC-
RETARY.—The Secretary shall notify the Gov-
ernor and the appropriate chief elected officials
of, and consult with the Governor and such offi-
cials concerning, any activity to be funded by
the Secretary under this title within the State
or substate area of the State.
(B) REQUIREMENTS OF THE GOVERNOR.—
The Governor shall notify the appropriate chief
elected officials of, and consult with such offi-
cials concerning, any activity to be funded by
the Governor under this title within the sub-
state area of the State.
(9) PROHIBITION ON PUBLIC SERVICE EMPLOY-
MENT.—Except as provided in section 123, no funds
available under this title may be used for public
service employment.
112
(10) PROHIBITION ON EMPLOYMENT GENERAT-
ING AND RELATED ACTIVITIES.—Except for funds
available to the Secretary to carry out section 123,
no funds available under this Act shall be used for
employment generating activities, economic develop-
ment activities, investment in revolving loan funds,
capitalization of businesses, investment in contract
bidding resource centers, and similar activities, or
for foreign travel.
(11) APPLICABILITY
OF
FEDERAL
REQUIRE-
MENTS RELATING TO TITLE, USE, AND DISPOSITION
OF CERTAIN PROPERTY.—The Federal requirements
governing the title, use, and disposition of real prop-
erty, equipment, and supplies purchased with funds
provided under this Act shall be the Federal require-
ments generally applicable to Federal grants to
States and local governments.
(12) TRANSFER OF EXCESS PROPERTY OF THE
DEPARTMENT
OF
DEFENSE.—(A) Notwithstanding
title II of the Federal Property and Administrative
Services Act of 1949 (40 U.S.C. 481 et seq.) and
any other provision of law, the Secretary shall re-
ceive priority by the Secretary of Defense for the di-
rect transfer, on a nonreimbursable basis, of the
property described in subparagraph (B) for use in
113
carrying out programs under this Act or under any
other Act.
(B) The property described in this subpara-
graph is both real and personal property under the
control of the Department of Defense that is not
used by such Department, including property that
the Secretary of Defense determines is in excess of
current and projected requirements of such Depart-
ment.
SEC. 142. BENEFITS.
(a) IN GENERAL.—Except as otherwise provided in
this title, the following provisions shall apply to all activi-
ties financed under this title:
(1) PROHIBITION ON PAYMENTS FOR FAILURE
TO PARTICIPATE WITHOUT GOOD CAUSE.—A partici-
pant under this title shall not receive payments for
training activities in which the participant fails to
participate without good cause.
(2) WAGE RATES.—An individual employed in
activities authorized under this title shall be paid
wages which shall not be less than the highest of—
(A) the minimum wage under section
6(a)(1) of the Fair Labor Standards Act of
1938;
114
(B) the minimum wage under the applica-
ble State or local minimum wage law; or
(C) the prevailing rates of pay for individ-
uals employed in similar occupations by the
same employer.
(3) COMPENSATION
FOR
ON-THE-JOB
TRAIN-
ING.—
(A) IN
GENERAL.—Subject to subpara-
graph (B), a participant in on-the-job training
shall be compensated by the employer at the
same rates, including periodic increases, as
similarly situated employees or trainees and in
accordance with applicable law.
(B) MINIMUM RATES.—The rates of com-
pensation described in subparagraph (A) shall
not be less than the higher of the rate specified
in section 6(a)(1) of the Fair Labor Standards
Act of 1938 or the applicable State or local
minimum wage law.
(4) APPLICABILITY OF WAGE RATES WITH RE-
SPECT TO EMPLOYEES IN THE COMMONWEALTH OF
PUERTO RICO AND AMERICAN SAMOA.—References
in paragraphs (2) and (3) to section 6(a)(1) of the
Fair Labor Standards Act of 1938 (29 U.S.C.
206(a)(1)—
115
(A) shall be deemed to be references to
section 6(c) of that Act for individuals in the
Commonwealth of Puerto Rico;
(B) shall be deemed to be references to
6(a)(3) of that Act for individuals in American
Samoa; and
(C) shall not be applicable for individuals
in other territorial jurisdictions in which section
6 of the Fair Labor Standards Act of 1938
does not apply.
(b) INCOME DISREGARD.—Allowances, earnings, and
payments to individuals participating in programs under
this title shall not be considered as income for the pur-
poses of determining eligibility for and the amount of in-
come transfer and in-kind aid furnished under any Fed-
eral or federally assisted program based on need, except
as provided under the Social Security Act.
SEC. 143. LABOR STANDARDS.
(a) IN GENERAL.—
(1) CONDITIONS OF EMPLOYMENT AND TRAIN-
ING.—Conditions of employment and training shall
be appropriate and reasonable in light of such fac-
tors as the type of work, geographical region, and
proficiency of the participant in a program under
this title.
116
(2) HEALTH AND SAFETY STANDARDS.—
(A) IN
GENERAL.—Health and safety
standards established under Federal and State
law, otherwise applicable to working conditions
of employees, shall be equally applicable to
working conditions of participants in programs
under this title.
(B) ACTIVITIES NOT COVERED UNDER THE
OCCUPATIONAL SAFETY AND HEALTH ACT OF
1970.—With respect to any participant in a
program under this title who is engaged in ac-
tivities which are not covered by health and
safety standards under the Occupational Safety
and Health Act of 1970, the Secretary shall
prescribe, by regulation, such standards as may
be necessary to protect the health and safety of
such participant.
(3) WORKERS COMPENSATION LAW.—
(A) IN GENERAL.—To the extent that a
State workers’ compensation law is applicable,
workers’ compensation benefits in accordance
with such law shall be available with respect to
injuries suffered by participants.
(B) INSURANCE
COVERAGE.—To the ex-
tent that such law is not applicable, each recipi-
117
ent of funds under this title shall secure insur-
ance coverage for injuries suffered by such par-
ticipants, in accordance with regulations pre-
scribed by the Secretary.
(4) BENEFITS
AND
WORKING
CONDITIONS
UNDER SUBSIDIZED JOBS.—All individuals employed
in subsidized jobs in a program under this title shall
be provided benefits and working conditions at the
same level and to the same extent as other employ-
ees working a similar length of time and doing the
same type of work.
(5) PROHIBITION ON CONTRIBUTIONS TO RE-
TIREMENT SYSTEMS OR PLANS.—No funds available
under this title may be used for contributions on be-
half of any participant to retirement systems or
plans.
(b) DISPLACEMENT OF EMPLOYEES.—
(1) IN GENERAL.—A currently employed worker
shall not be displaced by any participant in a pro-
gram under this title (including partial displacement
such as a reduction in the hours of nonovertime
work, wages, or employment benefits).
(2) PROHIBITION ON EMPLOYMENT OF PARTICI-
PANT
DUE
TO
LAYOFF
OR
TERMINATION
OF
EM-
PLOYEE.—A participant in a program under this
118
title shall not be employed or a job opening filled
if—
(A) any other individual is on layoff from
the same or any substantially equivalent job; or
(B) the employer has terminated the em-
ployment of any regular employee or otherwise
reduced its workforce with the intention of fill-
ing the vacancy so created by hiring a partici-
pant whose wages are subsidized under this
title.
(3) INFRINGEMENT OF PROMOTIONAL OPPOR-
TUNITIES.—Jobs shall not be created in a pro-
motional line that will infringe in any way upon the
promotional opportunities of currently employed in-
dividuals.
(c) IMPAIRMENT
OF CONTRACTS
OR COLLECTIVE
BARGAINING AGREEMENTS.—A program under this title
shall not impair—
(1) existing contracts for services; or
(2) existing collective bargaining agreements.
The employer and the labor organization must concur in
writing with respect to any elements of the proposed ac-
tivities which affect such agreement.
(d) ORGANIZED LABOR.—
119
(1) UNION
ORGANIZING.—Each recipient of
funds under this title shall provide to the Secretary
assurances that none of such funds will be used to
assist, promote, or deter union organizing.
(2) CONSULTATION REQUIREMENT.—Any pro-
gram conducted with funds made available under
this title which will provide services to members of
a labor organization will be established only after
full consultation with such organization.
(3) OPPORTUNITY
TO
COMMENTS
WITH
RE-
SPECT TO CERTAIN PROPOSALS.—If a labor organi-
zation represents a substantial number of employees
who are engaged in similar work or training in the
same area as that proposed to be funded under this
title, an opportunity shall be provided for such orga-
nization to submit comments with respect to such
proposal.
(e) PREVAILING WAGES.—
(1) IN GENERAL.—All laborers and mechanics
employed by contractors or subcontractors in any
construction, alteration, or repair, including painting
and decorating, of project, buildings, and works
which are federally assisted under this title shall be
paid wages at rates not less than those prevailing or
similar construction in the locality as determined by