$100,000,000 to carry out this subsection for each 
fiscal year. 
SEC. 106. EMPLOYMENT STATUS AND COMPENSATION. 
(a) EMPLOYEE STATUS.—An individual hired for a 
position funded under this title shall— 
(1) be considered an employee of the unit of 
general local government, or community-based orga-
nization, 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 title. 
(b) LIMIT ON NUMBER OF EXECUTIVE, ADMINISTRA-
TIVE, OR PROFESSIONAL POSITIONS.— 
(1) UNITS.—Of the total number of positions 
funded under this title for a fiscal year for each unit 
of general local government and each community- 
based organization— 
(A) not more than 20 percent shall be in 
a bona fide executive, administrative, or profes-
sional capacity; and 
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(B) at least 80 percent shall not be in a 
bona fide executive, administrative, or profes-
sional capacity. 
(2) DEFINITIONS.—For purposes of this sub-
section, the terms ‘‘bona fide executive’’, ‘‘bona fide 
administrative’’; and ‘‘bona fide professional’’, when 
used in relation to capacity, shall have the meanings 
given such terms under section 13(a)(1) of the Fair 
Labor 
Standards 
Act 
of 
1938 
(29 
U.S.C. 
213(a)(1)). 
(c) TOTAL AMOUNT OF COMPENSATION.—For each 
fiscal year for which funds are appropriated to carry out 
this title, each unit of general local government and each 
community-based organization that receives funds under 
this title for any such fiscal year shall use such funds to 
provide an amount equal to the total amount of employee 
compensation for individuals hired by such unit or organi-
zation, as appropriate, for such fiscal year under this title. 
(d) 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 or com-
munity-based organization shall not be obligated to employ 
the individuals hired under this title or retain the positions 
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filled by such individuals beyond the period for which the 
unit or organization receives funding under this title. 
SEC. 107. NONDISPLACEMENT. 
(a) NONDISPLACEMENT OF EXISTING EMPLOYEES.— 
(1) IN GENERAL.—Except as provided under 
section 102(c)(2)(A)(i) and 103(a)(2), a unit of gen-
eral local government or community-based organiza-
tion may not employ an individual for a position 
funded under this title, if— 
(A) employing such individual will result in 
the layoff or partial displacement (such as a re-
duction in hours, wages, or employee benefits) 
of an existing employee, as of the date of em-
ploying such individual, of the unit or organiza-
tion; or 
(B) such individual will perform the same 
or substantially similar work that had pre-
viously been performed by an employee of the 
unit or organization 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 the unit 
or organization, to be restored to the posi-
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tion the employee had immediately prior to 
being laid off or partially displaced. 
(2) ELIMINATION OF POSITION.—For the pur-
poses of this subsection, a position shall be consid-
ered to have been eliminated by a unit of general 
local government or community-based organization if 
the position has remained unfilled and the unit or 
organization has not sought to fill such position for 
at least a period of one month. 
(3) PROMOTIONAL
OPPORTUNITIES.—An indi-
vidual may not be hired for a position funded under 
this title in a manner that infringes upon the pro-
motional opportunities of an existing employee (as of 
the date of such hiring) of a unit or organization re-
ceiving funding under this title. 
(b) NONDISPLACEMENT
OF LOCAL GOVERNMENT 
SERVICES.—A community-based organization receiving 
funds under this title may not use such funds to provide 
services or functions that are customarily provided by a 
unit of general local government where such services or 
functions are provided by the organization. 
SEC. 108. REPORTING REQUIREMENTS. 
(a) ENTITLEMENT COMMUNITY.—A unit of general 
local government that is an entitlement community that 
receives funds under this title shall submit, every 90 days 
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during the period the unit receives such funds, to the Sec-
retary, a report that provides— 
(1) the status of the unit’s compliance with the 
statement submitted by the unit under section 
104(a)(2)(A); and 
(2) the status of the compliance of any commu-
nity-based organization that receives funds from the 
unit pursuant to this title with the statement sub-
mitted 
by 
the 
organization 
under 
section 
104(a)(2)(B). 
(b) NONENTITLEMENT AREA.— 
(1) UNITS
AND
ORGANIZATIONS.—A unit of 
general local government located in a nonentitlement 
area of a State that is receiving funds under this 
title, or a community-based organization that is pro-
viding services in a nonentitlement area of such 
State, shall submit, every 90 days during the period 
the unit or organization receives funds from the 
State pursuant to this title, to the State, a report 
that provides the status of the compliance of the 
unit or organization with the statements submitted 
under section 104(a)(3)(A). 
(2) STATES.—A State shall submit, every 90 
days during the period the State receives funds 
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under this title, to the Secretary, a report containing 
the information received under paragraph (1). 
(c) POSTING OF REPORTS.—Upon receiving the re-
ports submitted under subsections (a) and (b)(2), the Sec-
retary shall post on a publicly accessible Web site of the 
Department of Labor such reports. 
SEC. 109. AUDITING BY THE SECRETARY. 
The Secretary shall perform random, periodic audits 
to determine compliance with this title. 
SEC. 110. DISPUTE RESOLUTIONS, WHISTLEBLOWER HOT-
LINE, AND ENFORCEMENT BY THE SEC-
RETARY. 
(a) ESTABLISHMENT
OF
ARBITRATION
PROCE-
DURE.— 
(1) IN GENERAL.—Each unit of general local 
government that is an entitlement community and 
each State that receives funding under this title 
shall agree to the arbitration procedure described in 
this subsection to resolve disputes described in sub-
sections (b) and (c). 
(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 
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the time period required under subsection (b) or 
(c), as applicable, simultaneously with the chief 
executive officer of a unit or State involved in 
the dispute and the Secretary. 
(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 
days of submitting the grievance to binding ar-
bitration under subparagraph (A), one of the 
parties may submit a request to the Secretary 
to appoint a qualified and independent arbi-
trator. The Secretary shall appoint a qualified 
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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 
unit of general local government or State 
involved in the dispute shall pay the cost 
of such proceeding, including attorneys’ 
fees. 
(b) DISPUTES CONCERNING
THE ALLOTMENT
OF 
FUNDS.— 
(1) IN GENERAL.—In the case of a dispute as 
to whether— 
(A) a unit of general local government that 
is an entitlement community improperly re-
quested funds under this title by requesting 
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such funds for services or functions to be pro-
vided by a community-based organization that 
are customarily provided by the unit; or 
(B) a State improperly requested fund 
under this title by requesting such funds for 
services or functions to be provided by a com-
munity-based organization in a nonentitlement 
area of the State that are customarily provided 
by the unit located in such area, 
an employee or employee representative of the unit 
or State may file a grievance under subsection (a) 
not later than 15 days after public notice of an in-
tent to submit a statement under section 104(a) is 
published in accordance with paragraph (1)(C) of 
such section. 
(2) SECRETARIAL DUTIES.—Upon receiving a 
copy of the grievance, the Secretary shall withhold 
the funds subject to such grievance, unless and until 
the grievance is resolved under subsection (a), by the 
parties or an arbitrator in favor of providing 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 title by a unit of gen-
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eral local government that is an entitlement commu-
nity, State, or community-based organization receiv-
ing funds under this title, an employee or employee 
representative of the unit or State 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 
to ensure further compliance with the requirements 
of this title, including recommendations to suspend 
or terminate funding, or to require the repayment of 
funds received under this title during any period of 
noncompliance. 
(2) EXISTING
GRIEVANCE
PROCEDURES.—A 
party to a dispute described in paragraph (1) may 
use the existing grievance procedure of a unit or 
State involved in such dispute, or the arbitration 
procedure described in this subsection, to resolve 
such dispute. 
(d) PARTY DEFINED.—For purposes of subsections 
(a), (b), and (c), the term ‘‘party’’ means an employee, 
employee representative, unit of general local government, 
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or State, involved in a dispute described in subsection (b) 
or (c). 
(e) WHISTLEBLOWER HOTLINE; ENFORCEMENT BY 
THE SECRETARY.— 
(1) WHISTLEBLOWER
HOTLINE.—The Sec-
retary shall post on a publicly accessible Internet 
Web site of the Department of Labor the contact in-
formation for reporting noncompliance with this title 
by a State, unit of general local government, com-
munity-based organization, or individual receiving 
funding under this title. 
(2) ENFORCEMENT BY THE SECRETARY.— 
(A) IN
GENERAL.—If the Secretary re-
ceives a complaint alleging noncompliance with 
this title, the Secretary may conduct an inves-
tigation and after notice and an opportunity for 
a hearing, may order such remedies as the Sec-
retary determines appropriate, including— 
(i) withholding further funds under 
this title to a noncompliant entity; 
(ii) requiring the entity to make an 
injured party whole; or 
(iii) requiring the entity to repay to 
the Secretary any funds received under 
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