TEGL_12-19_Change-1.pdf

EMPLOYMENT AND TRAINING ADMINISTRATION

ADVISORY SYSTEM

U.S. DEPARTMENT OF LABOR

Washington, D.C. 20210

CLASSIFICATION

WIOA-DWG

CO

RRESPONDENCE SYMBOL

OWI

DATE

November 2, 2020

RESCISSIONS

None

EXPIRATION DATE

Continuing

ADVISORY: TRAINING AND EMPLOYMENT GUIDANCE LETTER NO. 12-19,

Change 1

TO: STATE WORKFORCE AGENCIES

STATE WORKFORCE ADMINISTRATORS

STATE WORKFORCE LIAISONS

STATE AND LOCAL WORKFORCE BOARD CHAIRS AND DIRECTORS

LABOR COMMISSIONERS

AMERICAN JOB CENTERS

WIOA SECTION 166(c) INDIAN AND NATIVE AMERICAN PROGRAM

GRANTEES

RAPID RESPONSE COORDINATORS

TRADE ADJUSTMENT ASSISTANCE LEADS

FROM: JOHN PALLASCH

Assistant Secretary

SUBJECT: Change 1 to TEGL 12-19, National Dislocated Worker Grant Program

Guidance

1. Purpose. To provide clarifying guidance to National Dislocated Worker Grant recipients regarding the review of incremental and supplemental funding requests, and in particular, how the grantee’s past performance will be taken into account.

2. Action Requested. Please share with all staff who administer DWGs. States should review their DWG policies and application procedures to comply with this TEGL.

3. Summary and Background.

a. Summary – This TEGL 12-19 Change 1 augments Attachment I, Section 3 of TEGL 12-

19, to provide additional specificity regarding ETA’s review and consideration of incremental and supplemental funding requests for National Dislocated Worker Grants

(DWGs), including Employment Recovery DWGs and Disaster Recovery DWGs.

b. Background – The Department typically funds DWG awards on an incremental basis, although on rare occasions, it may award funds in full or in larger-than-typical increments, depending on factors such as the severity of the disaster and the viability of a proposed project. Text in TEGL 12-19 described the review of requests for subsequent funding increments. It stated that ETA bases obligation of subsequent funding increments on a recipient’s justification for the additional funds, and continued

Fichter.Stephanie.A Stamp demonstrated need, as evidenced by productive performance, enrollments, and expenditures. ETA has traditionally considered requests for subsequent funding increments when expenditures have reached approximately 70 percent of the total DWG funds awarded to date.

This TEGL 12-19 Change 1 adds the following qualifying language to Attachment I, Section 3.

4. Details.

a. This TEGL change amends text at TEGL 12-19 Attachment I, Section 3, Incremental

Funding, as noted below in italics. The original text is in non-italics.

b. [Original Text]: The Department typically funds DWG awards on an incremental basis, although on rare occasions, it may award funds in full or in larger-than-typical increments, depending on factors such as the severity of the disaster and the viability of a proposed project. The obligation of subsequent funding increments is based on a recipient’s justification for the additional funds and continued demonstrated need, as evidenced by productive enrollments and expenditures. Grantees may request funding when expenditures have reached approximately 70 percent of the total DWG funds awarded to date. ETA may also use the fiscal systems in place to track actual fund disbursements to grantees, in order to verify the usage of funds between quarterly reporting periods, or review grantee quarterly performance reports (QPRs) to ensure that program goals are being met or are on track.

[New Text in the revised Attachment I]: Prior to awarding incremental funding, ETA may also consider the performance of a grantee’s most recent DWG award, as well as the available performance information regarding the grant for which incremental funding is requested. This performance review will confirm that the grantee has a track record of submitting timely and accurate performance reports. Additionally, the review should demonstrate success or progress in meeting or exceeding one or more of the following elements, as applicable:

the primary indicators of performance (see Attachment 6 of TEGL 14-18), as reported in Quarterly Performance Reports (QPRs), for the most recent DWG award;

the specific outcomes and milestones identified by the grantee in the initial application, as reported in Quarterly Narrative Reports (QNRs), for the most recent DWG award 1;

1 These outcome goals will be determined by the grantee based on both the type of DWG and the proposed activities and services to be provided in response to the qualifying events. For example, in a Disaster Recovery DWG responding to wildfires, a milestone might be the date all disaster-relief participants have received OSHA safety training and are ready for employment. For Employment Recovery DWGs, these milestones and outputs may include the number of participants completing English as a Second Language training to enable receipt of further career and training services, or the date that a cohort of participants completed customized training for identified, in-demand jobs.

the number of participants enrolled compared to the planned participant number, for the most recent DWG award;

the primary indicators of performance as reported in QPRs, for the DWG requesting incremental funding (if available);

the specific outcomes and milestones identified by the grantee in the initial application and as reported in QNRs, for the DWG requesting incremental funding; and the number of participants enrolled compared to the planned participant number, for the DWG requesting incremental funding.

If no prior DWG performance is available, ETA will review grantee performance relative to the previous two program year targets on other grants to serve dislocated workers (e.g. WIOA Dislocated Worker formula program).

[Existing text] Grantees must adhere to the financial management and reporting requirements of the Office of Management and Budget’s Uniform Guidance at 2 CFR

Part 200, the Uniform Guidance’s DOL exceptions at 2 CFR Part 2900, TEGL 28-10, Federal Financial Management and Reporting Definitions, and other guidance applicable to DWG funds.

ETA also made minor edits to three sentences to reduce potential for confusion. First, ETA added the word should to a sentence at the bottom of page 1 of the attachment (“Applicants should design and carry out DWG projects to operate in alignment with other state and local programs, including Rapid Response, layoff aversion, and the formula Dislocated Worker program, and should focus on addressing employment and training needs in states and local areas.”) Second, ETA added two words to the bottom of page 5 of the attachment (“There is no limitation on what type of entity or organization may be a worksite employer.”) Third, ETA added two words to a sentence in the middle of page 6 of the attachment (“Prior approval of the grant officer is required before any disaster-relief employment work on private property may commence.”) Fourth, and last, ETA added a reference to the vision of One Workforce System and to additional guidance on co-enrollment across programs, to the first paragraph under Co-

Enrollment with Trade Adjustment Assistance, on page 10.

5. Inquiries. Please direct inquiries to the appropriate Regional Office.

6. References.

TEGL 12-19, National Dislocated Worker Grant Program Guidance, dated March 18, 2020;

Workforce Innovation and Opportunity Act (WIOA) (Pub. L. 113-128) (July 22, 2014);

Trade Act of 1974, as amended. (19 USC 12 § 2271 - 2331 and § 2391 - 2397a) (June 29, 2015);

Employment and Training Administration, Workforce Innovation and Opportunity Act;

Final Rule (WIOA DOL Final Rule) published at 81 FR 56071 (August 19, 2016), specifically 20 C.F.R. parts 680 and 687;

TEGL 14-18, Aligning Performance Accountability Reporting, Definitions, and Policies across Workforce Employment and Training Programs Administered by the U.S.

Department of Labor (DOL), dated March 25, 2018;

TEGL 8-18, Workforce Innovation and Opportunity Act (WIOA) Title I and Wagner-

Peyser Act Waiver Requirements and Request Process, dated December 19, 2018;

TEGL 19-16, Guidance on Services provided through the Adult and Dislocated Worker

Programs under the Workforce Innovation and Opportunity Act (WIOA) and the Wagner-

Peyser Act Employment Service (ES), as amended by title III of WIOA, and for

Implementation of the WIOA Final Rules, dated March 1, 2017;

TEGL 16-16, One-Stop Operations Guidance for the American Job Center Network, dated January 18, 2017;

TEGL 28-10, Federal Financial Management and Reporting Definitions, dated May 27, 2011;

TEGL 10-09, Implementing Priority of Service for Veterans and Eligible Spouses in all

Qualified Job Training Programs Funded in whole or in part by the U.S. Department of

Labor (DOL), dated November 10, 2009;

Information Collection Forms and Participant Individual Record Layouts: Workforce

Innovation and Opportunity Act (WIOA) Common Performance Reporting - ETA 9169;

and 9170 (OMB Control No. 1205-0526) and DOL-only Performance Accountability, Information, and Reporting System - 9172, 9173 (OMB Control No. 1205-0521) and

ETA Form 9130 (OMB Control No. 1205-0461).

7. Attachment.

Attachment I - National Dislocated Worker Grant Program Guidance

Attachment I

National Dislocated Worker Grant Program Guidance

Contents

Introduction

Types of DWGs

A. Disaster Recovery DWGs

B. Employment Recovery DWGs

C. Special Populations DWGs

a. DWGs for Dislocated Service Members

Grant Funding Approach

Period of Performance and Period of Expenditure

DWG Cost Limitations

Administrative Policies

Applicants

Performance Targets and Reporting

Post-Award Policies

Section 1 Introduction

The purpose of this program guidance is to provide an implementation framework for the National

Dislocated Worker Grant (DWG) program, including policies, priorities, and requirements. The

Employment and Training Administration (ETA) accepts applications in two categories: Disaster

Recovery and Employment Recovery. Employment Recovery DWGs include DWGs for Dislocated

Service Members.

ETA may develop additional categories and conduct limited competitions to meet particular needs of dislocated workers, as program funding allows. In such cases, ETA will issue a separate announcement and guidance.

DWGs are time-limited funding assistance in response to major economic dislocations or other events that cause significant impact on states and local areas that exceed the capacity of existing formula funds and other relevant resources to address. ETA considers DWGs to be supplemental resources that provide flexibility to states and communities in responding to and recovering from unexpected events that cause large-scale job loss that exceed the capacity of the state or local area to address with formula resources.

As such, ETA expects that projects funded with DWG resources be aligned with existing state and local strategic priorities, resources, and programs and not operated as stand-alone projects. Applicants should design and carry out DWG projects to operate in alignment with other state and local programs, including

Rapid Response, layoff aversion, and the formula Dislocated Worker program, and should focus on addressing employment and training needs in states and local areas.

ETA also strongly encourages applicants to submit project plans demonstrating the intent to maximize positive outcomes for participants, and, in grant applications, to include project goals supporting alignment with WIOA performance measures, including the number of participants served, placement of participants in employment, and skills and credentials earned.

Section 2 Types of DWGs

A. Disaster Recovery DWGs

Description

Disaster Recovery DWGs provide disaster-relief and humanitarian assistance employment, as well as employment and training services, as appropriate, to minimize the employment and economic impact of declared disasters and emergency situations, in disaster-declared areas as defined in 20 CFR 687.110(b).

DWG funds may also provide employment and training services to dislocated workers and other eligible participants.

Qualifying Events

The following events are eligible for Disaster Recovery DWGs:

1. Emergencies and major disasters, as defined under Section 102 of the Stafford Act (42 U.S.C.

5122(6)), declared by FEMA as eligible for Public Assistance under any category (A through G).

2. Emergencies or disaster situations of national significance, natural or man-made, that could result in a potentially large loss of employment, as declared or otherwise recognized and issued in writing by the chief official of a Federal agency with jurisdiction over the Federal response to the disaster or emergency.

Note: Not every Federal declaration of a disaster qualifies an applicant for Disaster Recovery

DWG assistance. Applicants must demonstrate that a potentially large loss of employment could result from the disaster or emergency. ETA defines this as the potential loss of at least 50 jobs.

The application for Disaster Recovery DWG funds must include a rationale justifying the projected level of job loss.

WIOA does not allow declarations by a governor to qualify an applicant for Disaster Recovery

DWG assistance.

3. Relocation of a substantial number of individuals from a state, tribal area, or outlying area affected by a disaster or emergency to other states, tribal areas, or outlying areas outside the disaster or emergency area.

Eligible Applicants

Eligible applicants for Disaster Recovery DWGs are the state, outlying area, or Indian tribal governments as defined by the Stafford Act, 42 U.S.C. 5122(6).

The eligible agency or organization will be the grantee, as well as the fiscal agent responsible for the appropriate allocation of funding to the affected areas.

States may sub-grant funds to local boards and/or may expend such funds through public and private agencies and organizations engaged in such projects, consistent with Section 5 of this guidance. ETA expects states to allocate funds to affected areas and service providers quickly in order to ensure funds can fulfill the purposes of these grants and to ensure that workers receive assistance.

Eligible Participants

An individual eligible to receive services through a Disaster Recovery DWG must be one of the following, per 20 CFR 687.170(b):

1. temporarily or permanently laid off as a consequence of the disaster;

2. a dislocated worker as defined at 29 U.S.C. 3102(3)(15);

3. a long-term unemployed worker; or

4. a self-employed individual who became unemployed or significantly underemployed as a result of the disaster or emergency.

Grantees are responsible for setting appropriate policies and procedures for determining participant eligibility. The state has the authority to provide exceptions to its policies regarding the acceptable documentation local areas must collect to document participant eligibility, such as during a disaster.

Such exceptions may rely on self-attestation. States eventually must collect all documentation necessary to demonstrate that each participant is eligible under 20 CFR 687.170(b).

When applying for a Disaster Recovery DWG in response to an influx of a substantial number of individuals relocating away from the disaster area, applicants must demonstrate that at least 50 individuals have relocated or evacuated from an area receiving a Federal declaration for the disaster event.

Allowable Grant Activities Disaster Relief Employment. Disaster Recovery DWGs provide funding for the creation of disaster-relief employment, which is temporary employment of eligible individuals for the purposes described in

WIOA Section 170(b)(1)(B) and (d), as well as 20 CFR 687.180(b) and (c).1 Applicants must demonstrate that disaster-relief employment created under a Disaster Recovery DWG aligns with the following categories:

1 Disaster Recovery DWGs may pay 100 percent of the salary and benefits for each participant enrolled in disaster-relief employment.

1. Clean-up and recovery efforts including demolition, repair, renovation and reconstruction of damaged and destroyed structures, facilities and lands located within the disaster area and in offshore areas related to the emergency or disaster; or,

2. Employment related to the delivery of appropriate humanitarian assistance in the immediate aftermath of the disaster or emergency; more information on humanitarian assistance is provided below.

To be eligible for funding, all Disaster Recovery DWG applicants’ proposed projects must include disaster-relief employment in response to the federally declared disaster event, except in the exceptions described below. ETA encourages applicants to propose co-enrolling participants in disaster-relief employment in employment and training activities and to provide supportive services as applicable, and it encourages grantees to co-enroll and provide supportive services regardless of whether doing so was explicitly addressed in the application. Individual enrollment in temporary employment is limited to 12 months (or 2,080 hours) unless the grantee requests an extension of up to an additional 12 months through a grant modification, and the Secretary of Labor grants such an extension.

Not all participants in a Disaster Recovery DWG project must participate in disaster-relief employment.

Grantees may provide employment and training activities to participants not in disaster-relief employment. In summary, grantees may enroll Disaster Recovery DWG participants in:

Disaster-relief employment only;

Employment and training activities only; or

Both disaster-relief employment and employment and training activities.

These activities may occur concurrently, or one may occur prior to the other. Grantees must assess and determine the specific needs of each individual participant and enroll them in disaster-relief employment, employment and training services, or both, in a manner that is most likely to result in successful outcomes. As a general goal, grantees should design and provide employment and training activities aimed at allowing participants to obtain unsubsidized, sustainable employment following the conclusion of grant-supported activities.

For participants who only receive disaster relief employment, the same performance data collection requirements apply as for other DWG participants. However, participants who receive only disaster relief employment are not included in the primary indicators of performance unless they receive other allowable career and training services provided through the grant or through co-enrollment in another

WIOA core or partner program that shares a common exit with DWG in the state’s common exit policy.

Exceptions to Requirement to Provide Disaster-Relief Employment. The Department, at its discretion, may choose to approve only employment and training activities for the following situations:

1. For Disaster Recovery DWGs awarded in response to non-Stafford Act disaster or emergency declarations, where the circumstances and nature of the disaster do not allow for the clean-up and humanitarian temporary employment opportunities authorized by WIOA. Or,

2. For Disaster Recovery DWGs that are awarded due to an influx of individuals relocated from a disaster area, where the grantee is not responding to the actual disaster, because it is in another geographic area. In these circumstances, the DWG will provide employment and training services as the primary activity, as participants are outside of the disaster area. However, these grants may also offer participants disaster relief employment where appropriate.

Employment and Training Services. DWG projects provide employment and training services to dislocated workers and other eligible participants following a qualifying disaster or emergency. DWG funds may provide employment and training services regardless of an individual’s participation in disaster relief employment.

Supportive Services. Supportive services are allowable when they are needed to enable individuals to participate in disaster relief employment and employment and training services and when supportive services cannot be obtained through other programs. Supportive service policies for a disaster project must align with the state or local area supportive service policy; any supportive services provided must be consistent with WIOA.

General Policies: Disaster Recovery DWGs

Limit on Disaster Relief Employment Duration. Participants in disaster-relief positions may be employed for a maximum of 12 months or 2,080 hours, whichever is longer. Grantees may submit a modification request to extend the period of employment for existing participants for up to an additional

12 months, and this modification request must justify the reason for extending participants’ disaster-relief employment, as required by 20 C.F.R. 687.180(b)(1) If there remains humanitarian or clean-up needs after participants reach the limits on employment duration, the state should attempt to employ new eligible individuals to continue the work at hand rather than continue the employment or re-employment of participants that have reached 12 months or 2,080 hours of disaster-relief employment.

While each disaster is different, ETA expects that most humanitarian assistance needs will resolve within

12 months of the disaster event, as disaster-affected communities rebuild, and their populations obtain permanent housing and no longer need assistance in obtaining food and clothing. When providing a justification for extending employment to 20 C.F.R. 687.180(b)(1), grantees must demonstrate that humanitarian assistance needs remain.

Participant Wages. The worksite employer that provides participants temporary disaster-relief employment under a Disaster Recovery DWG is required to pay the higher of the Federal, state, or local minimum wage, or the comparable rates of pay for other individuals employed in similar occupations by the same employer. In accordance with WIOA Section 181(a)(1)(A), generally, participants must be compensated at the same rates, including periodic increases, as employees who are similarly situated in similar occupations by the same employer and who have similar training, experience, and skills.

Additionally, such rates must be in accordance with applicable law but in no event less than the higher of the rate specified in Section 6(a)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 206(a)(1)) or the applicable state or local minimum wage law. Where applicable, fringe benefits should be paid in accordance with the policies of the worksite employer.

The wages paid to temporary disaster-relief workers must be consistent with the wages of the supervising entity’s other employees—permanent or temporary—performing the same or similar work.

Grantees must apportion DWG funding allocated for wages of the temporary workers to only the chosen worksite employer for the Disaster Recovery DWG project. There is no limitation on what type of entity or organization may be a worksite employer.

Worksite Selection. Disaster-relief worksites must be located in the geographic disaster area covered by the qualifying declaration for the Disaster Recovery DWG (a disaster or emergency declaration under the

Stafford Act or other Federal agency’s declaration of a disaster or emergency of national significance).

Grantees must give the highest priority to clean-up of the disaster area’s most severely damaged public facilities and to the cleanup and the provision of humanitarian assistance to economically disadvantaged areas within the disaster area. To the extent feasible, administering funds according to these priorities must be in coordination with any projects administered by emergency management agencies, as described in this document within the section entitled “Coordination with Emergency Management

Agencies.”

Projects may perform work on private property only under these circumstances:

1. The work must be intended to remove health and safety hazards to the larger community or to address or alleviate specific economic or employment-related impacts of the disaster, such as clean-up work needed for disaster-affected employers to resume operation;

2. The activities necessary to remove health and safety hazards on private lands or around homes or other structures may only return the land or structure(s) to a safe and habitable level, and not improve the original land or structure(s);

3. The project prioritizes service to older individuals and individuals with disabilities; and

4. Grantees must not use Disaster Recovery DWG funds to cover the cost of materials to do repairs.

Prior approval of the grant officer is required before any disaster-relief employment work on private property may commence.

Humanitarian Assistance. Humanitarian assistance generally includes actions designed to save lives, alleviate suffering, and maintain human dignity in the immediate aftermath of disasters. This assistance includes activities such as the provision of food, clothing, and shelter. The humanitarian assistance provided by disaster-relief workers must relate directly to immediate response to the disaster situation named in the DWG application and the Federal declaration.

DWG-funded disaster-relief workers must only provide humanitarian assistance appropriate under a

Disaster Recovery DWG, focusing specifically on responding to the immediate impacts of a disaster, as declared by a Federal agency with jurisdiction over the Federal response to the disaster event. The provision of general humanitarian assistance that solely focuses on prevention and planning of future disaster events is not an allowable activity under a Disaster Recovery DWG. ETA will allow activities that provide prevention and planning for future events only if these activities are incidental to responding to the humanitarian assistance needs created by the disaster. For example, where the disaster event is the contamination of the local water supply, an allowable humanitarian assistance activity could be installation of water filters to ensure access to clean water. These filters could protect the affected population from future contaminations, but a grantee may use DWG funds to cover their installation because this disaster-relief employment activity addresses a humanitarian assistance need caused by the current disaster event—lack of access to clean water. Due to the variable nature of disasters declared across Federal agencies, ETA will consider humanitarian assistance activities on a case-by-case basis.

Emergency Application. Applicants may request Disaster Recovery DWGs through an abbreviated emergency application to facilitate timely delivery of DWG assistance in response to a disaster event.

These applications must be submitted to ETA within 15 days of the declaration of a qualifying disaster declaration by FEMA or other Federal agency having jurisdiction over the disaster. With appropriate justification, applicants may request an exception to this requirement, to allow for the submission of the emergency application within a reasonable timeframe after Day 15. Applicants also have the option to submit a full application containing a budget and plan, in lieu of an emergency application.

Full Application. Within 60 business days following an award of Disaster Recovery DWG funds requested via an emergency application, the grantee must modify the grant to provide a full application.

This includes a budget, implementation plan, and a list of worksites where the disaster relief work will be performed. ETA may also require the grantee to submit additional information per the special conditions of the initial DWG award. Modification procedures are addressed in the Application Requirements section found later in this document.

Mitigation. Generally, disaster relief employment under Disaster Recovery DWGs will not be authorized for activities that are designed to mitigate future disasters. DWG activities may help mitigate the ongoing effects of the disaster and prevent future disaster only where such activities are necessarily part of temporary employment to clean up or provide humanitarian assistance to victims of the disaster or emergency that served as the grant’s qualifying event. For example, DWG-funded disaster-relief employment may support installing a new tornado siren system to replace one destroyed by a tornado, but it cannot support installing a tornado siren system not previously available in the disaster-affected area.

DWG funds may support mitigation work only within the requirements of WIOA Section 170(d)(1) for disaster relief employment.

Coordination with Emergency Management Agencies. The grantee must coordinate the activities funded under a Disaster Recovery DWG with the appropriate organizations, including state emergency management agencies, to avoid duplication of efforts and to ensure that its activities appropriately respond to the affected community’s needs after a disaster. The grantee must coordinate with Federal agencies handling the Federal response to the disaster or emergency, either through direct contact or contact with state agencies coordinating with these Federal agencies.

The grantee must have a plan in place to recover WIOA funds expended for activities or services for which other funds become available. Examples include, but are not limited to: activities/resources provided by FEMA or other Federal agencies; public or private insurance; and construction workers employed by private for-profit firms whose employment is covered by other available resources.

Health and Safety Standards. In all DWG projects, grantees must ensure that project participants follow the same health and safety standards established under Federal and state law applicable to working conditions of permanent employees. To the extent that state workers’ compensation law applies, workers’ compensation shall be provided to project participants on the same basis as individuals in similar employment, as required by WIOA Section 181(b)(4). In cases in which a project participant is not covered under a state workers’ compensation law, the project participant must be provided with adequate on-site medical and accident insurance for work-related activities. The grantee must also ensure that project participants receive appropriate safety training in accordance with the Occupational Safety and

Health Act (OSHA) of 1970 and assure safe working conditions. For more information, contact the

OSHA field office. A listing of OSHA field offices is available at http://www.osha.gov/html/RAmap.html.

http://www.osha.gov/html/RAmap.html

Additional Disaster Events. Disaster Recovery DWG funds awarded to a grantee may be available for expenditure for additional declared disasters or situations of national significance that occur in the same program year the funds were awarded. The addition of disaster events to an existing DWG project requires prior approval from ETA through a grant modification request.

B. Employment Recovery DWGs

Employment Recovery DWGs provide resources to states and other eligible applicants to respond to major economic dislocations, such as large, unexpected layoff events that cause significant job losses.

The Secretary of Labor has the discretion to award DWGs to eligible entities where the eligible entity can demonstrate the need for additional funds to provide employment and training assistance to workers affected by major economic dislocations, such as plant closures and mass layoffs. This also could include closures and realignments of military installations. ETA will examine each application on a case-by-case basis to determine if the applicant has demonstrated need. Employment Recovery DWGs provide employment and training assistance to dislocated workers and other eligible participants as described below.

Qualifying Layoff Events

The following dislocation scenarios could qualify for Employment Recovery DWGs under 20 CFR

687.110(a).

Mass Layoff or Plant Closure. Layoffs or plant closures affecting 50 or more workers from one employer within the service area of the applicant may qualify for Mass Layoff or Plant Closure

Employment Recovery DWGs. An applicant may include smaller layoffs at other companies in the area if the primary layoff caused or contributed to the smaller layoffs.

Industry-Wide Layoffs. Layoff events from multiple companies in the same industry, as determined by the two-digit code level in the North American Industrial Classification System (NAICS), may qualify for Industry-Wide Employment Recovery DWGs. Additional layoffs affecting fewer than 50 workers may be included in an industry-wide DWG application when there is at least one company with a layoff affecting 50 or more workers included in the application, and the additional companies are in the same

NAICS two-digit code level.

Community Impact. Multiple small dislocations occurring over a period of up to 12 months that have significantly increased the number of unemployed individuals in a regional or local workforce area may qualify for a Community Impact Employment Recovery DWG. Community impact grants typically serve rural areas where the employer base is predominantly smaller companies with fewer than 50 employees each, and where layoffs may not meet the definition of “mass layoffs” noted above.

Eligible Applicants

Eligible applicants for Employment Recovery DWGs include:

1. a state or outlying area, or a consortium of states;

2. a local Workforce Development Board (WDB) or a consortium of WDBs;

3. an entity eligible for funding through the Indian and Native American program in WIOA Section

166(c);

4. entities determined to be appropriate by the governor of the state or outlying area involved;

a. To be eligible, such entities must attach a signed letter from the Governor, on official letterhead, identifying the organization and indicating why the Governor has determined it appropriate to carry out a DWG project.

5. and entities that demonstrate to the Secretary of Labor their capability to effectively respond to circumstances related to particular dislocations.

a. To demonstrate its capability to the Secretary, such an applicant must submit documentation that the applicant has:

i. expertise with workforce development or training;

ii. the geographic or administrative reach to handle large-scale workforce issues;

iii. financial and administrative capability to administer a Federal grant; and

iv. a letter of support for its DWG application from its state workforce agency and

WDBs for the geographic area(s) the DWG will serve.

In cases where the applicant is not the state workforce agency that receives WIOA Dislocated Worker

(DW) formula funds, the applicant must work collaboratively with its state workforce agency to ensure that the applicant coordinates with the state’s Rapid Response efforts for which the state workforce agency is responsible.

Eligible Participants2

For most Employment Recovery DWGs, the following individuals are eligible to receive employment and training assistance:

1. a dislocated worker as defined in WIOA Section 3(15);

2. a civilian employee of the Department of Defense or the Department of Energy employed at a military installation that is being closed, or that will undergo realignment, within the next 24 months after the date of the determination of eligibility;

3. an individual who is employed in a non-managerial position with a Department of Defense contractor, who is determined by the Secretary of Defense to be at risk of termination from employment as a result of reductions in defense expenditures, and whose employer is converting operations from defense to nondefense applications in order to prevent worker layoffs; or

4. a member of the Armed Forces who:

a. was on active duty or full-time National Guard duty;

b. is involuntarily separated (as defined in section 1141 of title 10, United States Code) from active duty or full-time National Guard duty; or is separated from active duty or full-time

National Guard duty pursuant to a special separation benefits program under 10 U.S.C.

1174a, or the voluntary separation incentive program under section 1175 of that title;

c. is not entitled to retired or retained pay incident to the separation described in Subclause b above; and

d. applies for employment and training assistance within 180 days of that separation.

Where these laws and policies do not conflict with WIOA, ETA typically defers to established state statutory definitions or policies set by Governors and local boards in further determining which individuals are eligible participants for DWG-supported services. However, DWG grantees are

2 Employment Recovery DWGs for Dislocated Service Members have more specific eligibility requirements. See Section

2.C. for these requirements.

encouraged to give precedence for grant participation to those individuals directly affected by the layoff(s) identified in the application establishing eligibility to apply for the DWG.

Co-Enrollment with Trade Adjustment Assistance

ETA no longer requires a separate DWG application to cover trade-affected workers; instead, trade-affected workers may be served under Employment Recovery DWGs. as applicable. ETA strongly encourages co-enrollment with any appropriate programs for eligible individuals, including those who are trade-affected. Co-enrollment across programs advances the vision of a One Workforce System – an aligned, flexible, and simplified state and local-driven system of workforce development programs that bring all partners together with a shared goal of enhancing service delivery for American workers and jobseekers. See TEGLs 16-16 and 19-16 for additional information on co-enrollment of other WIOA programs. ETA has published extensive materials on program integration, resource leveraging, and co-enrollment; see in particular the Integrated Service Delivery Toolkit, Integrated Intake Toolkit, and

Integrated Resource Team guides and more in the System Alignment section of the Innovation and

Opportunity Network on WorkforceGPS, https://ion.workforcegps.org/FocusAreas.

Employment Recovery DWGs may provide DWG participants who are trade-affected with allowable services not otherwise provided by the TAA Program. Generally, the TAA Program provides employment and case management services, training, income support, and job search and relocation allowances for eligible adversely affected workers and employment and case management services and training for eligible adversely affected incumbent workers.

The Trade Act, as amended, contains provisions allowing the costs of a training program approved under the Act to be paid by TAA funds or from other sources but does not allow duplication of payment of training costs, in accordance with Sections 236 and 239 of the Act. Under certain circumstances, the costs of training may be shared across TAA and DW formula or DWG programs. However, states may not use TAA funds to reimburse training costs incurred and TAA funds cannot be utilized before a participant is determined eligible for TAA. Additionally, the TAA Governor-Secretary Agreement, Section D, requires that the TAA Program will be the primary source of assistance to trade-affected workers. To the extent trade-affected workers require assistance or services not authorized under the

TAA Program, or for which TAA Program funds are unavailable or insufficient (including for required employment and case management services), the state will make such assistance available through the

American Job Center network. This provision includes services provided by DWGs.

Trade-affected workers may receive DWG-funded training if their required training is not covered by the

TAA Program. The examples below also describe how DWG funds can be used to assist trade-affected workers:

1. If trade-affected workers are unable to begin a training program immediately, the DWG may fund training for a limited time period. Grantees must have systems in place to accommodate a change in the funding of training. In this instance, any training proposed with DWG funds to trade-affected workers must be delivered through a training provider eligible under both the TAA and the WIOA program requirements, and the training must be approvable under the TAA Program.

2. When a TAA petition has been filed by or on behalf of a group of workers but group eligibility has not yet been determined, DWG funding may be used for training in the short-term until a certification is rendered after a completed TAA investigation, and the state agency operating the

TAA Program determines the worker’s individual eligibility. Grantees must have systems in place to accommodate a change in the funding of training, after TAA Program approval is obtained. Such a participant should remain co-enrolled in the DWG and the TAA Program, as the individual may need continued career and supportive services provided through the DWG.

3. In the event that sufficient state TAA funds and sufficient WIOA DW formula funds are not available to provide training to the affected workers, a grantee may use DWG funds to provide training.

For more information and other specific requirements on the TAA Program, see https://www.doleta.gov/tradeact/.

Timing of Application Applications should be submitted within 120 days of a qualifying layoff event to facilitate the timely delivery of reemployment services to the affected workers. The target group of workers is eligible for assistance upon notification of layoff (receipt of an individual layoff notice or the date of the company’s layoff announcement) or the date of the layoff itself.

Grant applications may be submitted under emergency status for sudden or unexpected mass layoff events, such as an unannounced facility closure or the destruction of a place of employment due to a fire.

This streamlined and shorter emergency application must be submitted no later than 15 days after the event occurs, otherwise, applicants should submit a full application; at the discretion of the grant officer, emergency applications may be accepted more than 15 days after the qualifying layoff event with appropriate justification. The applicant must submit a full application within 60 business days following the date of award. By this time, applicants should have access to data to support a full application.

Allowable Activities

Employment and Training Assistance. For Employment Recovery DWGs, the term “employment and training assistance” includes career services, training services, and supportive services, as described below.

Career Services. Career services are described in WIOA Section 134(c)(2); 20 CFR Part 680; and TEGL

16-16 Section C. These include several services and activities to help support dislocated workers in making informed decisions based on local and regional economic demand for the purpose of achieving reemployment and education goals. These include but are not limited to: outreach, intake, labor exchange services, initial and comprehensive assessments, development of an individual employment plan, referral, provision of labor market information, provision of information on eligible training providers, and provision of information on the availability of supportive services.

Training Services. As described in WIOA Section 134(c)(3)(D), training services are allowable under

Economic Recovery DWGs and may include: occupational training, on-the-job training (including apprenticeships), entrepreneurial training, and customized training. DWG funds may be used to reimburse up to 50 percent of the wage rate for on-the-job training or up to the reimbursement percentage the Governor or local board has approved for on-the-job training for WIOA formula programs according to the criteria outlined in WIOA Section 134(c)(3)(H) and 20 CFR 680.730. The use of DWG funds for training is subject to the limitations or requirements as applicable to the WIOA Dislocated Worker formula program delineated in 20 CFR part 680 and TEGL 19-16, Guidance on Services Provided through the Adult and Dislocated Worker Programs under the Workforce Innovation and Opportunity

Act (WIOA) and the Wagner Peyser Act Employment Service (ES), as amended by title III of WIOA, and for Implementation of the WIOA Final Rules.

Supportive Services. Supportive services are allowable when they are needed to enable individuals to participate in disaster-relief employment and employment and training services and when supportive services cannot be obtained through other programs. Supportive service policies for a disaster project must align with the state or local area supportive service policy; any supportive services provided must be consistent with WIOA.

Needs-Related Payments (NRPs). NRPs are a category of Supportive Services. As defined in WIOA

Section 134(d)(3), NRPs are allowable for DWG participants who are unemployed and do not qualify for

(or have ceased to qualify for) unemployment compensation to enable them to participate in training services. NRPs offered under a DWG must adhere to state and local area policies and procedures in place for all participants. Policies and procedures may not be specifically created for DWG participants.

Applicants who plan to offer NRPs to DWG participants must include a copy of the applicable NRP policies as part of the grant submission.

If the dislocated worker has ceased to qualify for unemployment compensation, they are still eligible for

NRPs if they meet the 13-week deadline for enrollment in training requirement described in WIOA

Section 134(d)(3)(B) and 20 CFR 680.950.

Factors Considered in Awarding DWGs and Award Amounts The Employment Recovery DWG program, as grants are awarded at the Secretary’s discretion, to assist grant recipients in dealing with dislocation events, such as layoffs and plant closures that cannot be handled through the local workforce development system’s normal capacity. ETA will determine whether the dislocation exceeds the normal capacity of the local workforce system on a case-by-case basis. ETA sets no firm requirements that applicants must meet to demonstrate this demand beyond the normal capacity of the local workforce system. Among other factors, ETA may consider the level of expenditure of the applicant’s prior program year total available DW formula funds (including Rapid

Response and carry-in). Other factors ETA will consider include including the quality of the proposed project, the severity of job loss qualifying event, and the applicant’s past performance in administering the WIOA Title I Dislocated Worker program or prior DWG awards. ETA may use quarterly financial reports (ETA-9130 form) to verify expenditures and transfers to the Adult program, and may use disbursement reports to verify the fund usage between quarterly reporting periods.

Adding Employers If a grantee wants to add employers to a DWG project not included in the initial grant award, the grantee should submit a grant modification request within the same program year in which the grant award was made. If the addition of new employers results in a change in scope to the DWG project, such additions may be prohibited by Federal appropriations law. Grantees must administer DWG projects for the original purpose under which the funds were awarded.

C. Special Populations DWGs

One sub-type of Employment Recovery DWGs targets a specific population: DWGs for Dislocated

Service Members. These follow the framework for Employment Recovery DWGs, with more specific requirements for qualifying events, eligible participants, and allowable activities, as described below.

a. DWGs for Dislocated Service Members

DWGs may provide assistance to areas where there is a higher-than-average demand for employment and training activities from dislocated military service members and dislocated military spouses that exceeds state and local resources for providing such activities.

Qualifying Layoff Events

Higher-than-Average Demand. Generally, ETA expects that existing WIOA formula funds are available to provide transition assistance services for most separating service members. Additionally, these services are provided in conjunction with resources made available through the Jobs for

Veterans State Grants program and transition assistance programs administered by the Department of

Labor's Veterans’ Employment and Training Service (VETS), the Department of Veterans Affairs, and the Department of Defense. However, when communities experience a higher-than-average demand for services for dislocated members of the Armed Forces and dislocated military spouses, and where additional funding is needed to meet the demand, an applicant may apply for DWG resources.

To demonstrate higher-than-average demand, applicants must draw from administrative data sources to document unemployment levels among veterans within a local area for the most recent quarter for which data is available, compared to the same quarter one year ago. Appropriate sources of data include, but are not limited to, workforce data and Unemployment Compensation for Ex-service members (UCX) data. Service members with notification before separation may be included in the calculation of higher-than-average demand.

Local board applicants should coordinate with states to obtain data to determine the demand from military service members for employment and training services. WIOA Section 166 Indian and

Native American program applicants can coordinate with states to obtain such data, and ETA will consider alternative data.

In cases where the state workforce agency that receives DW formula funding is not the applicant, the applicant must work collaboratively with its state workforce agency to ensure coordination with the state’s Rapid Response efforts and to assist in performance and fiscal reporting requirements for which the state workforce agency is responsible.

Eligible Participants

Under 20 CFR 687.170(a)(1)(iv), eligible participants for DWGs for Dislocated Service Members include the eligible participants for Employment Recovery DWGs, as listed above, and also the following:

1. Dislocated members of the Armed Forces (service members who are transitioning to the civilian workforce), including recently-separated veterans. This includes all members of the Armed

Forces who were discharged under…