California Code of Regulations › Title 22 - Social Security › Division 1 - Employment Development Department › Subdivision 1 - Director of Employment Development › Division 3 - EMPLOYMENT SERVICES PROGRAMS › Part 1 - EMPLOYMENT AND EMPLOYABILITY SERVICES › Chapter 1.5 - EMPLOYMENT TRAINING PANEL › Article 2 - PROPOSAL PROCESS › Section 4429 - High Unemployment Areas

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) The
						  Panel may apply special funding criteria to High Unemployment Area (HUA)
						  training projects. To qualify for this type of funding, the employer or
						  participating employer must be located in the HUA. The trainees in a HUA must
						  earn at least the ETP Minimum Wage and complete the standard retention period
						  except as identified in subsections (c) and (d) below.
(b) An HUA may be a county or portion of a
						  county, or some other distinct region. To be designated as an HUA, the region
						  must have an unemployment rate (Regional Rate) exceeding the state average rate
						  (Benchmark Rate).
When the Benchmark Rate is less than 10%, the
							 Regional Rate must be higher by a differential of at least 25%. When the
							 Benchmark Rate is at or higher than 10%, the Regional Rate must be higher by a
							 differential of at least 15%.
(c) The Panel may also adjust the
						  differential between Benchmark Rate and Regional Rate on a case-by-case basis
						  for good cause shown. Good cause may include the longevity of unemployment in
						  the region, and whether unemployment has had a particularly adverse effect on
						  the industry sector or occupation being considered for training
						  funds.
(d) The Benchmark Rate and
						  Regional Rate will be based on the unemployment rates set by the Labor Market
						  Information Division (LMID) of the Employment Development Department. In
						  determining HUA status, the Panel will abide by the Benchmark Rate set by LMID.
						  The Panel will also abide by the Regional Rate listing posted on its website at
www.etp.ca.gov
or the most recent
						  information published by LMID on its website at www.edd.ca.gov. In so doing,
						  the Panel will follow the Benchmark Rate(s) and Regional Rate(s) that favor
						  designation as an HUA as updated by LMID.
(e) For HUA projects, the Panel may reduce
						  the ETP Minimum Wage requirement at Section
						  10201(f)
						  of the Unemployment Insurance Code by up to 25 percent, on a case-by-case
						  basis. Retraining projects will only qualify for this reduction if
						  post-retention wages exceed pre-retention wages. This reduction shall not apply
						  to wages governed by a collective bargaining agreement. A new-hire project will
						  qualify for the 25-percent reduction, without regard to a wage differential,
						  for post-retention wages.
(f) For
						  HUA projects, the Panel may modify the retention period at Section
						  10209(f)
						  of the Unemployment Insurance Code (See Section
						  4400(h).) For
						  these projects, the Panel may choose to make a special modification, and
						  designate a retention period of a minimum of 90 out of 120 consecutive days
						  with up to three employers pursuant to Section
						  10214.5(c)
						  of the Unemployment Insurance Code. Any retention modification shall be made on
						  a case-by-case basis.
(g) The Panel
						  may make additional waivers for trainees in a HUA project who qualify as
						  "working poor" under Section
						  4400(hh), on a
						  per-trainee basis. In particular, the Panel may waive the limitations under
						  Section 4420 and fund the same number of
						  basic skills and literacy training hours as are funded for vocational skills
						  training, on a per-trainee basis.
1. New
							 section filed 5-17-2006; operative 6-16-2006 (Register 2006, No.
							 20).
2. Amendment of section and NOTE filed 2-15-2011; operative
							 3-17-2011 (Register 2011, No. 7).
Note: Authority cited: Section
								10205(m),
								Unemployment Insurance Code. Reference: Sections
								10201.5,
								10204.5
								and
								10214.5,
								Unemployment Insurance Code.