Long-Term Unemployment Elimination Act of 2021
Bill: S.1304 | Sponsor: Sen. Van Hollen, Chris (D-MD)
Policy area: Labor and Employment

Summary:
Long-Term Unemployment Elimination Act of 2021
This bill creates a federal program to generate job opportunities for full-time students and certain workers who have been unemployed for at least 27 weeks.
Specifically, the Department of Labor must establish and administer a jobs initiative for eligible workers (i.e., individuals who are at least 18 years of age, are authorized to be employed in the United States, have not been employed or are full-time students for at least 27 weeks, and are currently seeking or have been seeking employment for at least 4 weeks), carried out through local boards or community-based organizations.
Labor shall award grants to local boards and community-based organizations to carry out jobs programs, including any added costs related to them in order to achieve economic development and job growth. Grant recipients must serve (1) high-poverty areas; or (2) areas for which the prime working-age employment-to-population ratio has been low, relative to that ratio for the United States for at least three years.

To establish jobs programs for long-term unemployed workers, and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Long-Term Unemployment Elimination 
Act of 2021''.

SEC. 2. PURPOSE.

    The purpose of this Act is to provide job opportunities for every 
long-term unemployed worker in the United States.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Career services.--The term ``career services'' includes 
        the services described in section 134(c)(2)(A) of the Workforce 
        Innovation and Opportunity 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 carrying 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)).
            (4) Individual with a barrier to employment.--The term 
        ``individual with a barrier to employment'' 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 
        definition 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 section 3(44) of the 
        Workforce Innovation and Opportunity Act (29 U.S.C. 3102(44)), 
        except that subparagraph (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 social 
                        enterprise; or
                            (iv) a business; and
                    (B) includes--
                            (i) an employer at the site of employment 
                        for an eligible worker in a program position; 
                        or
                            (ii) a community-based organization that 
                        acts as an employer of record by--
                                    (I) assuming the roles and 
                                responsibilities 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 
                                conditions for employment of an 
                                eligible worker in a program position 
                                in a jobs program in accordance with 
                                the provisions of this Act; and
                                    (III) acting as an intermediary 
                                between eligible workers and employers 
                                described in clause (i) to facilitate 
                                participation in the jobs program 
                                involved.
            (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-apprenticeship'', 
        used with respect to a program, means a program that is 
        designed to prepare individuals to enter and succeed in a 
        registered apprenticeship 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 position'', 
                used with respect to a jobs program--
                            (i) means a position--
                                    (I) in a temporary job that is 
                                designed to lead to long-term 
                                employment; and
                                    (II) that is provided along with, 
                                as necessary, career services, 
                                supportive 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 
                                apprenticeship 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. 12581), 
                                including a position sponsored under 
                                subsection (i) of that section, subject 
                                to subparagraph (B).
                    (B) Rule.--
                            (i) Employers with certain program 
                        positions.--A participating employer for an 
                        eligible worker (or an employer at the site of 
                        employment for an eligible worker) in a program 
                        position described 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 section 101(30) of 
                        the National and Community 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 employer 
                        (or of an employer at the site of employment 
                        for the eligible worker).
            (10) Recognized postsecondary credential.--The term 
        ``recognized postsecondary credential'' 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 program.--The term 
        ``registered apprenticeship program'' 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 ``transitional job'' means 
        a job described in section 134(d)(5) of the Workforce 
        Innovation and Opportunity 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 education and literacy 
        activities'', ``career pathway'', ``community-based 
        organization'', ``customized training'', ``industry or sector 
        partnership'', ``in-demand industry sector or occupation'', 
        ``integrated education and training'', ``local area'', ``local 
        board'', ``one-stop operator'', ``poverty line'', ``State 
        area'', ``State board'', ``supportive services'', ``training 
        services'', 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 cooperative, 
                        as defined in section 1042(c)(2) of the 
                        Internal Revenue Code of 1986; or
                            (ii) an enterprise for which the majority 
                        of the voting stock is owned by workers 
                        employed by such enterprise.
                    (B) Voting stock.--For purposes of subparagraph 
                (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 establish and 
        administer a jobs initiative for eligible 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 initiative, the 
        Secretary shall enter into 4-year agreements 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 partnership.
            (4) Payments.--The Secretary shall make such a payment in 
        an amount that equals the eligible 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 compensation;
                    (B) to provide career services, supportive 
                services, and training services to eligible workers 
                under this section; and
                    (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 involved 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 reduce the impact of those issues 
        with career services, supportive services, and training 
        services;
            (3) a description of how the local board will engage labor 
        organizations, joint labor-management organizations, community-
        based organizations, community colleges, economic development 
        agencies, and career and technical education programs as 
        partners to provide training services to eligible workers, 
        including any--
                    (A) adult education and literacy activities, 
                including activities of English language acquisition, 
                and integrated education and training programs;
                    (B) pre-apprenticeship and registered 
                apprenticeship 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 program with career pathways to improve 
        outcomes for eligible workers in program positions;
            (5) proposed levels for the performance accountability 
        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 subsection 
                (h) incurred under the jobs program, minus the employer 
                share described in subsection (i);
                    (B) oversees participating employers to ensure 
                compliance with program rules and collection of 
                accurate data for performance accountability 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 described in 
                subsection (i) of the eligible costs;
            (7) a description of how the local board will collaborate 
        with the corresponding State board to implement 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 Innovation 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 Innovation 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.);
                    (C) the corresponding State program for temporary 
                assistance for needy families established under part A 
                of title IV of the Social Security Act (42 U.S.C. 601 
                et seq.);
                    (D) the national service plan submitted by the 
                corresponding State Commission on National 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 development programs 
                carried out by the Secretary of Housing and Urban 
                Development;
                    (G) career and technical education programs 
                authorized by the Carl D. Perkins Career and Technical 
                Education Act of 2006 (20 U.S.C. 2301 et seq.);
                    (H) the continuum of care projects (relating to 
                ending homelessness) carried out under applications 
                submitted, by communities serving an area that is 
                substantially similar to the covered area, under 
                subtitle C of title IV of the McKinney-Vento Homeless 
                Assistance Act (42 U.S.C. 11381 et seq.);
                    (I) programs to support competitive integrated 
                employment for individuals with disabilities, including 
                programs of vocational rehabilitation services under 
                title I of the Rehabilitation Act of 1973 (29 U.S.C. 
                720 et seq.) and the Ticket to Work and Self-
                Sufficiency Program carried out under section 1148 of 
                the Social 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 organization, 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 
                displacement and protect the rights of such employees; 
                and
                    (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 performance 
        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 participation; and
                    (D) the percentage of program positions filled by 
                eligible workers who were individuals with a barrier to 
                employment.
            (3) Acceptable overall levels of performance.--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 
        paragraph (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 opportunities 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 accountability measures specified in 
                this subsection, including disaggregated data specified 
                under subparagraph (B), as part of the local board 
                performance reports established under section 116(d) of 
                the Workforce Innovation and Opportunity 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 individuals, and by race, 
                ethnicity, sex, and age.
    (d) Sanctions for Failure To Meet Performance Accountability 
Measures or Submit an Application.--
            (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 performance 
                improvement plan; and
                    (B) the Secretary and State board may provide 
                technical assistance, including assistance in the 
                development of the performance improvement plan.
            (2) Repeated failure to meet performance accountability 
        measures.--If a local board fails to meet the performance 
        accountability measures for at least 3 consecutive years, the 
        Secretary may enter into an agreement with a community-based 
        organization to carry out a jobs program serving 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 organization to carry out a jobs program serving 
                the corresponding local area in place of the local 
                board.
            (4) Programs carried out by community-based 
        organizations.--
                    (A) Application.--A community-based organization 
                that seeks to carry out a jobs program in place of a 
                local board as described in paragraph (2) or (3) shall 
                submit an application to the Secretary.
                    (B) Selection.--The Secretary shall select, on a 
                competitive basis, community-based organizations to 
                carry out jobs programs as described in paragraphs (2) 
                and (3) for a local area. The Secretary shall select 
                such organizations 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 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 selected under this 
                paragraph as if the organization 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 participating employer under this subsection.
            (2) Selection criteria.--
                    (A) In general.--To select participating employers 
                (including the renewal of such a selection), the local 
                board shall take into account the considerations, and 
                comply with the requirements, 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, 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 organizations and 
                        joint labor-management organizations to select 
                        participating employers.
                            (ii) Collective bargaining agreements.--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 program position at the site 
                        without the consent of all labor organizations 
                        and joint labor-management organizations 
                        representing workers at such site.
                    (D) Long-term employment prospects.--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 participating employer or another employer.
                    (E) Community impact and input.--
                            (i) Community impact preference.--The local 
                        board shall consider whether the employer is 
                        offering program positions in which the work to 
                        be performed is designed to have a positive 
                        impact on the communities in the covered area 
                        served through the jobs program, and shall 
                        develop criteria for that positive impact 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 account when 
                        selecting a participating employer.
                    (F) In-demand industry sector or occupation.--The 
                local board shall consider whether the employer is 
                offering program positions 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--
                            (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 individuals, 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 relevant to achieving the 
                performance accountability measures and other 
                requirements specified 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 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 
                                employer; and
                                    (III) have similar training, 
                                experience, and skills; and
                            (iii) is in accordance with any applicable 
                        collective bargaining agreements at the site of 
                        employment;
                    (B) provide benefits for each eligible worker in a 
                program position--
                            (i) at the same level as is provided to 
                        other employees who are not eligible workers 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 program position 
                who is an individual with a disability, as defined in 
                section 7 of the Rehabilitation Act of 1973 (29 U.S.C. 
                705), interacts with other persons who are not such 
                individuals with disabilities (not including 
                supervisory personnel or individuals who are providing 
                services to such worker) to the same extent as 
                individuals who are not such individuals with 
                disabilities and who are in comparable positions 
                interact with other persons;
                    (D) offer opportunities for advancement to eligible 
                workers in program positions, as appropriate, that are 
                similar to those for other employees 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' compensation 
                requirements.
            (4) Payment to participating employer.--
                    (A) Wages and compensation.--The local board shall 
                provide payment to the participating employer for all 
                eligible costs described in subsection (h) for wages 
                and compensation provided by the employer for eligible 
                workers in 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 customized training to eligible workers, 
                and, subject to subsection (h)(3), the local board 
                provides payment to reimburse the employer for the cost 
                of providing the training described in the agreement.
    (f) Nondisplacement.--
            (1) Nondisplacement of existing employees.--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 reduction in 
                hours, wages, or employment benefits) 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;
                    (C) employing such individual infringes upon the 
                promotional opportunities of an existing 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 
                        displaced (as such term is described in 
                        subparagraph (A)); and
                            (ii) has not been offered by to be restored 
                        to the position the employee had immediately 
                        prior to being laid off or partially displaced.
            (2) Prohibition on rotation.--The participating employer 
        may not make placements in a program position by constantly 
        rotating new eligible workers into a permanent position 
        temporarily, except in circumstances in which--
                    (A) the employer reasonably intends to promote each 
                such eligible worker to a different permanent position 
                within the employer's business at the end of that 
                worker's employment in the program position; or
                    (B) the program position is part of an on-the-job 
                training program that leads to a recognized 
                postsecondary credential.
            (3) Nondisplacement of government employees or functions.--
                    (A) Government agency.--A participating 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 government 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 
                government.
            (4) Limitation on program positions for participating 
        employer.--
                    (A) In general.--No more than 10 percent of the 
                employees of a participating employer may be in program 
                positions funded under this Act, except as provided in 
                any of subparagraphs (B) through (E).
                    (B) Minimum.--A participating employer with fewer 
                than 10 employees may employ 1 individual 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 positions funded under this Act, 
                unless the employer obtains permission under 
                subparagraph (D).
                    (D) Permission.--
                            (i) In general.--A local board may grant 
                        permission for a participating employer to have 
                        a higher percentage or number of employees in 
                        program positions than is allowed under 
                        subparagraph (A) or (C)--
                                    (I) under the circumstance 
                                described in subclause (I) or (II) of 
                                clause (ii); or
                                    (II) under the circumstance 
                                described in clause (ii)(III), with the 
                                consent of all labor organizations and 
                                joint labor-management organizations 
                                representing workers at the site 
                                involved.
                            (ii) Circumstances.--The circumstances 
                        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 
                                available to the employer's employees, 
                                including 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 
                                described in clause (ii)(I) may be 
                                granted such permission for a term of 
                                not more than 2 years, subject to 
                                subclause (II), regardless of whether 
                                the unemployment rate in the covered 
                                area falls below 8 percent during that 
                                2-year period.
                                    (II) Renewal.--If the permission 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 described in subclause 
                                (I).
                    (E) Application to government agency.--If the 
                employer is a Federal, State, or local agency, the 
                limitations described in subparagraphs (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 ``participating employer'' 
                shall not include a community-based organization that 
                acts as an employer of record and (even if a community-
                based organization is so acting) shall include the 
                employer at the site.
    (g) Grievance Procedure.--
            (1) In general.--The local board shall establish and 
        maintain a procedure for the filing and adjudication of 
        grievances from participants, labor organizations, or joint 
        labor-management organizations, and other interested 
        individuals concerning participating employers, including 
        grievances relating to proposed placements of eligible workers 
        with such employers.
            (2) Deadline for grievances.--Except for a grievance that 
        alleges fraud or criminal activity, a grievance shall be filed 
        not later than 1 year after the date of the alleged occurrence 
        of the event that is the subject of the grievance.
            (3) Deadline for hearing and decision.--
                    (A) Hearing.--A hearing on any grievance conducted 
                under this subsection shall be conducted not later than 
                30 days after the filing of such grievance.
                    (B) Decision.--A decision on any such grievance 
                shall be made not later than 60 days after the filing 
                of such grievance.
            (4) Arbitration.--
                    (A) In general.--
                            (i) Jointly selected arbitrator.--In the 
                        event of a decision on a grievance that is 
                        adverse to the party who filed the grievance, 
                        or 60 days after the filing of such grievance 
                        if no decision has been reached, such party 
                        shall be permitted to submit such grievance to 
                        binding arbitration before a qualified 
                        arbitrator who is jointly selected and 
                        independent of the interested parties.
                            (ii) Appointed arbitrator.--If the parties 
                        cannot agree on an arbitrator, the Secretary 
                        shall appoint an arbitrator from a list of 
                        qualified arbitrators within 15 days after 
                        receiving a request for such appointment from 
                        one of the parties to the grievance.
                    (B) Deadline for proceeding.--An arbitration 
                proceeding shall be held not later than 45 days after 
                the request for such arbitration proceeding, or, if the 
                arbitrator is appointed by the Secretary in accordance 
                with subparagraph (A)(ii), not later than 30 days after 
                the appointment of such arbitrator.
                    (C) Deadline for decision.--A decision concerning a 
                grievance shall be made not later than 30 days after 
                the date such arbitration proceeding begins.
                    (D) Cost.--
                            (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 participant, labor 
                        organization, joint labor-management 
                        organization, or other interested individual 
                        described in paragraph (1) prevails under a 
                        binding arbitration proceeding, the other 
                        entity that is a party to such grievance shall 
                        pay the total cost of such proceeding and the 
                        attorneys' fees of such participant, labor 
                        organization, or individual, as the case may 
                        be.
            (5) Proposed placement.--If a grievance is filed regarding 
        a proposed placement of an eligible worker with a participating 
        employer, such placement shall not be made unless the placement 
        is consistent with the resolution of the grievance pursuant to 
        this subsection.
            (6) Remedies.--Remedies for a grievance filed under this 
        subsection include--
                    (A) suspension of payments for the participating 
                employer;
                    (B) termination of such payments;
                    (C) prohibition of the placement described in 
                paragraph (5);
                    (D) in a case in which the grievance is filed by an 
                individual eligible worker or program participant--
                            (i) the eligible worker's selection to be a 
                        program participant, or the program 
                        participant's reinstatement, as the case may 
                        be; and
                            (ii) other changes in the terms and 
                        conditions of employment applicable to the 
                        individual; and
                    (E) in a case in which the grievance involves a 
                violation of subsection (f) and the employer of the 
                displaced employee is the participating employer--
                            (i) reinstatement of the displaced employee 
                        to the position held by such employee prior to 
                        displacement;
                            (ii) payment of lost wages and benefits of 
                        the displaced employee;
                            (iii) reestablishment of other relevant 
                        terms, conditions, and privileges of employment 
                        of the displaced employee; and
                            (iv) such equitable relief as is necessary 
                        to correct any violation of subsection (f) or 
                        to make the displaced employee whole.
            (7) Enforcement.--Suits to enforce awards under this 
        subsection may be brought in any district court of the United 
        States having jurisdiction of the parties, without regard to 
        the amount in controversy and without regard to the citizenship 
        of the parties.
            (8) Existing grievance procedures.--Notwithstanding any 
        other provision of this subsection, a grievance relating to a 
        site of employment that is covered by a collective bargaining 
        agreement that includes a grievance procedure that applies to 
        such grievance shall be adjudicated under the terms of such 
        grievance procedure and not this subsection. Nothing in this 
        subsection shall be construed to limit the application of any 
        grievance procedure included in a collective bargaining 
        agreement.
    (h) Eligible Costs.--
            (1) Wages and compensation.--
                    (A) In general.--Subject to paragraph (2), for 
                purposes of this Act, the eligible costs of providing 
                wages and compensation shall be the eligible costs of 
                providing the wages described in subparagraph (B), and 
                the compensation described in subparagraph (C), for 
                eligible workers.
                    (B) Wages.--The eligible costs described in this 
                subparagraph shall be the costs of providing wages at a 
                rate that is the greatest of--
                            (i) the applicable minimum wage rate under 
                        section 6(a)(1) of the Fair Labor Standards Act 
                        of 1938 (29 U.S.C. 206(a)(1)) (not counting any 
                        rate authorized for employment under special 
                        certificates under section 14 of such Act (29 
                        U.S.C. 214));
                            (ii) the applicable State or local minimum 
                        wage rate; or
                            (iii) a rate, calculated as an amount per 
                        hour, with the amount determined by dividing 
                        the poverty line for a family of 4 by 2,080.
                    (C) Compensation.--The eligible costs described in 
                this subparagraph--
                            (i) subject to clause (ii), shall be 
                        nonwage expenses that are directly related to 
                        compensation for eligible workers, including--
                                    (I) costs for employer payroll 
                                taxes;
                                    (II) costs for employee benefits;
                                    (III) costs to provide a national 
                                service education award for approved 
                                national service positions sponsored 
                                under section 129(i) of the National 
                                and Community Service Act of 1990 (42 
                                U.S.C. 12581(i)); and
                                    (IV) costs of fulfilling the duties 
                                described in subsection (e)(3)(E); and
                            (ii) for each eligible worker, shall not 
                        exceed 20 percent of the eligible costs of 
                        providing the wages described in subparagraph 
                        (B).
            (2) Limitation for duration of wages and compensation.--
                    (A) In general.--Subject to subparagraph (B), an 
                eligible cost related to wages and compensation for a 
                program position is an expense related to the first 12 
                months of the program position, subject to section 
                5(e).
                    (B) Extension.--A local board may extend the 12-
                month period described in subparagraph (A) for not more 
                than an additional 12 months, subject to section 5(e), 
                to the extent that such extension is necessary to cover 
                the period of a program position that is part of an on-
                the-job training program that leads to a recognized 
                postsecondary credential.
            (3) Career services, supportive services, and training 
        services.--
                    (A) Aggregate limit.--The eligible costs of 
                providing, or facilitating the provision of, career 
                services, supportive services, and training services to 
                eligible workers shall, in total, not exceed 20 percent 
                of the total eligible costs of providing the wages 
                described in paragraph (1)(B) to those eligible 
                workers.
                    (B) Flexibility for individuals.--The limit in 
                subparagraph (A) shall apply to the eligible costs for 
                the total amount of such career services, supportive 
                services, and training services provided by a jobs 
                program to all eligible workers, and shall not be 
                construed to constitute a separate limit on the 
                eligible costs for the career services, supportive 
                services, and training services so provided to each 
                eligible worker.
                    (C) Modification.--The requirements of this 
                paragraph may be modified under section 5(e).
            (4) Administration.--
                    (A) Local boards.--The eligible costs incurred by a 
                local board (and a State board, under subparagraph (B)) 
                of administering a jobs program under this section 
                shall not exceed 10 percent of the total eligible costs 
                of providing the wages described in paragraph (1)(B) to 
                all eligible workers served by the jobs program.
                    (B) State boards.--A State board may enter into an 
                agreement with a local board to receive a portion of 
                the amount made available under subparagraph (A) to 
                carry out the responsibilities of the State board under 
                subsection (k).
                    (C)  Secretary.--Of the maximum amount that the 
                Secretary may make available under subparagraph (A) 
                with respect to a jobs program, the Secretary may 
                reserve not more than 10 percent to administer the jobs 
                program under this section.
            (5) Modification.--The requirements of paragraphs (2), (3), 
        and (4) may be modified under section 5(e).
    (i) Employer Share for Wages and Compensation.--
            (1) In general.--
                    (A) Baseline.--Except as provided in subparagraph 
                (C), for a local board carrying out a jobs program in a 
                covered area where the unemployment rate does not 
                exceed 5 percent, the employer share of the eligible 
                costs for wages and compensation shall be 33 percent.
                    (B) Higher unemployment covered areas.--Except as 
                provided in subparagraph (C), for a local board 
                carrying out a jobs program in a covered area where the 
                unemployment rate exceeds 5 percent, the employer share 
                of those costs shall be the percentage (not less than 0 
                percent) obtained by subtracting--
                            (i) 3.3 percentage points for every half of 
                        a percentage point by which the unemployment 
                        rate in the covered area exceeds 5 percent; 
                        from
                            (ii) 33 percent.
                    (C) Second year for program positions leading to 
                recognized postsecondary credentials.--With respect to 
                an eligible worker who is in the second year of a 
                program position that is part of an on-the-job training 
                program, pre-apprenticeship program, or registered 
                apprenticeship program, that leads to a recognized 
                postsecondary credential, the employer share of the 
                eligible costs of wages and compensation for the 
                project shall be 50 percent. That employer share for 
                such a worker shall remain 50 percent regardless of any 
                change in the unemployment rate of the covered area.
            (2) Recalculation.--The employer share under subparagraphs 
        (A) and (B) of paragraph (1) shall be recalculated for the 
        local board once per calendar quarter, using the unemployment 
        rate from the calendar quarter in the 12-month period preceding 
        the calculation with the highest average unemployment rate in 
        the covered area.
            (3) Modification.--The requirements of this subsection may 
        be modified under section 5(e).
    (j) Requirements for the Secretary of Labor.--The Secretary shall--
            (1) oversee jobs programs funded under this Act to ensure 
        that program requirements are being met, and verify that 
        requests for Federal funding accurately reflect eligible costs;
            (2) perform random, periodic audits to determine compliance 
        with this Act;
            (3) provide payments to local boards for the eligible costs 
        described in subsection (h), minus any employer share of the 
        eligible costs described in subsection (i);
            (4) evaluate the performance of jobs programs carried out 
        under this section, which may include entering into agreements 
        with other entities to conduct such evaluations;
            (5) establish a clearinghouse to identify and publicize 
        best practices used by local boards carrying out such jobs 
        programs this Act;
            (6) provide technical assistance to local boards, and to 
        State boards that are providing assistance to local boards, 
        carrying out such jobs programs under this Act;
            (7) conduct outreach to State boards, local boards, 
        employers, and eligible workers to maximize opportunities for 
        participation in jobs programs by eligible workers, in 
        furtherance of the purpose of this Act as described in section 
        2, by providing job opportunities for as many eligible workers 
        as possible; and
            (8) administer this Act in consultation with the Secretary 
        of Education, the Secretary of Housing and Urban Development, 
        the Secretary of Health and Human Services, the Attorney 
        General, and the Secretary of Veterans Affairs.
    (k) Role of State Boards.--In order to assist local boards in 
carrying out programs under this Act, a State board may--
            (1) work with local boards to develop statewide strategies 
        to implement programs under this Act;
            (2) align programs carried out under this Act with the plan 
        submitted by the State board under subtitle A of title I of the 
        Workforce Innovation and Opportunity Act (29 U.S.C. 3111 et 
        seq.);
            (3) facilitate coordination of programs carried out under 
        this Act with the activities carried out under--
                    (A) 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.);
                    (B) the corresponding State program for temporary 
                assistance for needy families established under part A 
                of title IV of the Social Security Act (42 U.S.C. 601 
                et seq.);
                    (C) the national service plan submitted by the 
                corresponding State Commission on National and 
                Community Service under section 178 of the National and 
                Community Service Act of 1990 (42 U.S.C. 12638); and
                    (D) the corresponding State plan for career and 
                technical education under part B of title I of the Carl 
                D. Perkins Career and Technical Education Act of 2006 
                (20 U.S.C. 2341 et seq.);
            (4) assist local boards in the process of submitting 
        applications under this Act; and
            (5) provide technical assistance to local boards and 
        employers participating in programs under this Act.
    (l) Payment.--
            (1) Advance payment.--The Secretary may provide a payment 
        under this Act, as described in subsection (a), for a quarter 
        on the basis of an advance estimate of expenditures submitted 
        by the local board and any other investigation the Secretary 
        may find necessary.
            (2) Retrospective adjustment.--The Secretary may reduce or 
        increase a payment referred to in paragraph (1) for a quarter 
        as necessary to adjust for any overpayment or underpayment 
        resulting from such a payment in a previous quarter.
            (3) Reimbursement.--The Secretary may provide a 
        reimbursement payment under this Act, as described in 
        subsection (a), for a quarter on the basis of the actual 
        expenditures of the local board, if payment has not already 
        been made under this subsection for the same expenditure.
    (m) Mandatory Funding.--For the purpose of carrying out this 
section, there is authorized to be appropriated and there is 
appropriated, out of any money in the Treasury not otherwise 
appropriated, such sums as may be necessary for fiscal year 2021 and 
each subsequent fiscal year.

SEC. 5. GRANTS FOR HIGH-POVERTY AREAS AND AREAS WITH CHRONICALLY LOW 
              EMPLOYMENT RATES.

    (a) Definitions.--In this section:
            (1) High-poverty area.--The term ``high-poverty area'' 
        means an area in which the poverty rate, as determined by the 
        Bureau of the Census, has been not less than 20 percent for a 
        period of not less than 3 years.
            (2) Prime working-age employment-to-population ration.--The 
        term ``prime working-age employment-to-population ratio'', used 
        with respect to an area, means the ratio of the number of 
        individuals age 25 through 54 in the area who are employed, to 
        the number of individuals age 25 through 54 in the area.
    (b) Establishment.--The Secretary shall award grants on a 
competitive basis to local boards (including community-based 
organizations, consistent with section 4(d)(4)(D)), that carry out jobs 
programs described in section 4, to provide for added costs related to 
carrying out the programs with modified standards specified in 
subsection (e), with the purpose of achieving economic development and 
job growth through the programs. The Secretary shall award the grants 
for periods of 4 years, and pay such grants as provided under section 
4(l).
    (c) Application.--To be eligible to receive a grant under this 
section, a local board shall submit an application to the Secretary at 
such time, in such manner, and containing such information as the 
Secretary may require, including--
            (1) a plan for the jobs program involved to achieve 
        performance accountability measures described in section 4(c) 
        through modified standards described in subsection (e), and 
        sustain that achievement in the long term without permanent 
        support from a grant awarded under this section;
            (2) information that demonstrates stakeholder engagement in 
        the jobs program from the public and private sectors, 
        especially major institutions such as institutions of higher 
        education, hospitals, or other large employers and 
        organizations, that are located in the covered area; and
            (3) a plan to ensure that residents of the covered area are 
        part of the operation of and benefit from the results of the 
        jobs program, which may include a plan to expand worker-owned 
        enterprises, expand small local businesses, support start-up 
        businesses owned by covered area residents, or give covered 
        area residents a role in carrying out the jobs program.
    (d) Priority.--In selecting a local board to receive a grant under 
this section, the Secretary shall give priority to local boards 
proposing to serve--
            (1) high-poverty areas; or
            (2) areas for which the prime working-age employment-to-
        population ratio has been low, relative to that ratio for the 
        United States, for a period of not less than 3 years.
    (e) Modification of Certain Standards.--In awarding a grant under 
this section to a local board, the Secretary is authorized to modify 1 
or more of the following standards for the program carried out by the 
local board, if the Secretary determines that making such a 
modification can be reasonably expected to help the program achieve the 
performance accountability measures referred to in subsection (c)(1):
            (1) The periods of time specified in subparagraphs (C) and 
        (D) of section 3(3).
            (2) The limitation on the percentage or number of employees 
        in program positions with a single participating employer, as 
        specified in section 4(f)(4).
            (3) The allowable duration of funding for wages and 
        compensation as eligible costs, for a program position, as 
        specified in section 4(h)(2).
            (4) The limitation on eligible costs for career services, 
        supportive services, and training services, as specified in 
        section 4(h)(3).
            (5) The limitation on eligible costs for administration, as 
        specified in section 4(h)(4).
            (6) The employer share of eligible costs for wages and 
        compensation, as specified in section 4(i).
    (f) Evaluations.--The Secretary shall--
            (1) evaluate the performance of jobs programs that receive 
        funding under this section, which may include entering into 
        agreements with other entities to conduct such evaluations; and
            (2) identify and publicize best practices used by local 
        boards carrying out jobs programs that receive funding under 
        this section, through the clearinghouse described in section 
        4(j)(5).
    (g) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for fiscal year 2021 and each subsequent fiscal year.
                                 <all>