WIOA adult and dislocated worker service transition

CLASSIFICATION
   EMPLOYMENT AND TRAINING ADMINISTRATION                WIOA – Adult, Dislocated Worker, ES
               ADVISORY SYSTEM                           CORRESPONDENCE SYMBOL
          U.S. DEPARTMENT OF LABOR                       OWI
             Washington, D.C. 20210                      DATE
                                                          July 1, 2015

ADVISORY:       TRAINING AND EMPLOYMENT GUIDANCE LETTER WIOA NO. 3-15
                OPERATING GUIDANCE for the WORKFORCE INNOVATION AND
                OPPORTUNITY ACT (referred to as WIOA or the Opportunity Act)

TO:             STATE WORKFORCE AGENCIES
                STATE WORKFORCE ADMINISTRATORS
                STATE WORKFORCE LIAISONS
                STATE AND LOCAL WORKFORCE BOARD CHAIRS AND DIRECTORS
                LABOR COMMISSIONERS
                AMERICAN JOB CENTERS

FROM:           PORTIA WU /s/
                Assistant Secretary

SUBJECT:        Guidance on Services Provided through the Adult and Dislocated Worker
                Program under the Workforce Innovation and Opportunity Act (WIOA or
                Opportunity Act) and Wagner Peyser, as Amended by WIOA, and Guidance for
                the Transition to WIOA Services

1. Purpose. To provide guidance to the workforce system on providing services under the
   Adult and Dislocated Worker programs under WIOA Title I, and individuals served by
   Wagner Peyser, as amended by WIOA Title III, beginning July 1, 2015. This guidance also
   includes clarifications and flexibilities on using these funds and guidance to States for
   making sub-state allocations with Adult, Youth, and Dislocated Worker formula funds.

   WIOA was signed into law on July 22, 2014. WIOA is designed to help job seekers access
   employment, education, training, and support services to succeed in the labor market and to
   match employers with the skilled workers they need to compete in the global economy.
   WIOA supersedes Titles I and II of the Workforce Investment Act of 1998 and amends the
   Wagner-Peyser Act and the Rehabilitation Act of 1973. In general, the Act takes effect on
   July 1, 2015, the first full program year after enactment, unless otherwise noted.

   The Departments of Labor and Education published a set of regulations for implementing
   WIOA through the posting of five Notice of Proposed Rulemaking (NPRMs) documents.
   These NPRMs were open for public comment until June 15, 2015, and several hundred
   comments were received by both Departments. The Federal agencies will review, analyze
   and consider the comments received. The Final WIOA rules will be issued in 2016.

   In order to continue implementation prior to the final rule, a series of WIOA Operating
   Guidance documents are being issued in the form of Training and Employment Guidance
 RESCISSIONS                                             EXPIRATION DATE
 None                                                    Continuing

   Letters (TEGLs). These Operating Guidance documents on WIOA will inform the workforce
   system on how to begin the important planning and organizational work necessary to comply
   with the WIOA statutory requirements. The Operating Guidance TEGLs will provide a
   framework for program activities until the regulations are finalized. This TEGL is one in a
   series of WIOA Operating Guidance.

2. References. See Attachment.

3. Background. The WIOA Adult and Dislocated Worker formula programs, in coordination
   with the Wagner-Peyser (WP) Employment Service (ES), are pivotal pieces of the one-stop
   delivery system, which is the foundation of the workforce system. The system provides
   universal access to career services to meet the diverse needs of adults and dislocated workers.
   The adult and dislocated worker programs are required partners in the one-stop delivery
   system. WIOA made some significant reforms to how services are delivered in the one-stop
   delivery system to adults and dislocated workers. Under WIOA adults and dislocated
   workers may access career services and training services. WIOA provides for a workforce
   system that is universally accessible, customer centered, and training that is job-driven.
   WIOA will provide for career and training services at the nation’s nearly 2,500 one-stop
   centers (currently referred to as American Job Centers). Training is supported through a
   robust Eligible Training Provider List (ETPL), comprised of entities with a proven capability
   of securing quality employment outcomes for participants. WIOA also provides enhanced
   access and flexibility for work-based training options, such as Registered Apprenticeship
   (RA), on-the-job training, customized training, and incumbent worker training.

4. Career Services. WIOA authorizes “career services” for adults and dislocated workers,
   rather than “core” and “intensive” services, as authorized by WIA. There are three types of
   “career services”: basic career services, individualized career services, and follow-up
   services. These services can be provided in any order; there is no sequence requirement for
   these services. Career services under this approach provide local areas and service providers
   with flexibility to target services to the needs of the customer.

   The three categories of career services are defined as follows:

   Basic Career Services

   Basic career services must be made available to all individuals seeking services served in the
   one-stop delivery system, and include:
   • Determinations of whether the individual is eligible to receive assistance from the adult,
      dislocated worker, or youth programs;
   • Outreach, intake (including identification through the state’s Worker Profiling and
      Reemployment Services system of unemployment insurance (UI) claimants likely to
      exhaust benefits), and orientation to information and other services available through the
      one-stop delivery system;

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    •   Initial assessment of skill levels including literacy, numeracy, and English language
        proficiency, as well as aptitudes, abilities (including skills gaps), and supportive service
        needs;
    •   Labor exchange services, including—
            o Job search and placement assistance, and, when needed by an individual, career
                 counseling, including—
                      Provision of information on in-demand industry sectors and occupations
                        (as defined in sec. 3(23) of WIOA); and,
                      Provision of information on nontraditional employment (as defined in sec.
                        3(37) of WIOA);
    •   Provision of referrals to and coordination of activities with other programs and services,
        including those within the one-stop delivery system and, when appropriate, other
        workforce development programs;
    •   Provision of workforce and labor market employment statistics information, including the
        provision of accurate information relating to local, regional, and national labor market
        areas, including—
            o Job vacancy listings in labor market areas;
            o Information on job skills necessary to obtain the vacant jobs listed; and
            o Information relating to local occupations in demand and the earnings, skill
                 requirements, and opportunities for advancement for those jobs;
    •   Provision of performance information and program cost information on eligible providers
        of training services by program and type of providers;
    •   Provision of information about how the local area is performing on local performance
        accountability measures, as well as any additional performance information relating to the
        area’s one-stop delivery system;
    •   Provision of information relating to the availability of supportive services or assistance,
        and appropriate referrals to those services and assistance, including: child care; child
        support; medical or child health assistance available through the State’s Medicaid
        program and Children’s Health Insurance Program; benefits under the Supplemental
        Nutrition Assistance Program (SNAP); assistance through the earned income tax credit;
        housing counseling and assistance services sponsored through the U.S. Department of
        Housing and Urban Development (HUD) 1; and assistance under a State program for
        Temporary Assistance for Needy Families (TANF), and other supportive services and
        transportation provided through that program;
    •   Assistance in establishing eligibility for programs of financial aid assistance for training
        and education programs not provided under WIOA; and
    •   Provision of information and assistance regarding filing claims under UI programs,
        including meaningful assistance to individuals seeking assistance in filing a claim—
            o Meaningful assistance means providing assistance:
                      On-site using staff who are properly trained in UI claims, filing, and/or the
                        acceptance of information necessary to file a claim 2, or

1 HUD Approved Housing Counseling Agencies, http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm
2 The staff providing meaningful assistance may be UI, Wagner-Peyser, or other one-stop partner staff members who
have been properly trained to provide this type of assistance and service. However, as described in Unemployment

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                       By phone or via other technology, as long as the assistance is provided by
                       
                       trained and available staff and within a reasonable time;
             o The costs associated in providing meaningful assistance may be paid for by the
               State’s UI program, the WIOA Adult or Dislocated Worker programs, the
               Wagner-Peyser Employment Service, or some combination thereof these funding
               sources.

    Individualized Career Services

    If one-stop center staff determine that individualized career services are appropriate for an
    individual to obtain or retain employment, these services must be made available to the
    individual. These services must be available in all one-stop centers. One-stop center staff
    may use recent previous assessments by partner programs to determine if individualized
    career services would be appropriate. These services include:
    • Comprehensive and specialized assessments of the skill levels and service needs of adults
        and dislocated workers, which may include—
            o Diagnostic testing and use of other assessment tools; and
            o In-depth interviewing and evaluation to identify employment barriers and
                appropriate employment goals;
    • Development of an individual employment plan, to identify the employment goals,
        appropriate achievement objectives, and appropriate combination of services for the
        participant to achieve his or her employment goals, including the list of, and information
        about, eligible training providers;
    • Group and/or individual counseling and mentoring;
    • Career planning (e.g. case management);
    • Short-term pre-vocational services, including development of learning skills,
        communication skills, interviewing skills, punctuality, personal maintenance skills, and
        professional conduct to prepare individuals for unsubsidized employment or training, in
        some instances pre-apprenticeship programs may be considered as short-term pre-
        vocational services;
    • Internships and work experiences that are linked to careers;
    • Workforce preparation activities that help an individual acquire a combination of basic
        academic skills, critical thinking skills, digital literacy skills, and self-management skills,
        including competencies in utilizing resources, using information, working with others,
        understanding systems, and obtaining skills necessary for successful transition into and
        completion of postsecondary education, or training, or employment;
    • Financial literacy services;
    • Out-of-area job search assistance and relocation assistance; and
    • English language acquisition and integrated education and training programs.

Insurance Program Letter No. 12-01, Change 1, Outsourcing of Unemployment Compensation Administrative
Functions – Claims Taking, only merit staff may, in person at one-stop centers or remotely, answer questions,
provide advice, or make decisions that could affect claimants’ UI eligibility, although other one-stop staff may assist
in claims taking by rote acceptance of information.

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    Follow-up Services

    Follow-up services must be provided as appropriate for participants who are placed in
    unsubsidized employment, for up to 12 months after the first day of employment. Counseling
    about the work place is an appropriate type of follow-up service. Follow-up services do not
    extend the date of exit in performance reporting.

    Transitioning to Career Services: All career services described above must be made
    available in one-stop centers beginning on July 1, 2015. There is no operational requirement
    that services must happen in a specific sequence, and any forms and collateral materials that
    reflect a sequence of service requirements must be updated beginning July 1, 2015 3. For
    reporting purposes, until reporting systems are in place to report career services, please report
    basic career services as core services, and individualized career services as intensive services.
    We will issue subsequent guidance on performance reporting for WIOA activities.

5. Career Services provided by Wagner-Peyser staff. Labor exchange services, which are
   the primary services provided by WP staff, fall under the Basic Career Services mentioned in
   Section 4 of this TEGL. Additionally, all of the Basic Career Services must be made
   available by WP staff in coordination with other one-stop center partners. Staff also may
   make available the Individualized Career Services discussed in Section 4 of this TEGL,
   particularly for those individuals with barriers to employment as defined in WIOA sec. 3(24).

6. Employment Status Clarification. In addition to providing career and training services to
   individuals who are unemployed, there remains a significant population of job seekers who
   are underemployed. Individuals who are underemployed may include:
   • Individuals employed less than full-time who are seeking full-time employment;
   • Individuals who are employed in a position that is inadequate with respect to their skills
        and training;
   • Individuals who are employed who meet the definition of a low-income individual in
        WIOA sec. 3(36); and
   • Individuals who are employed, but whose current job’s earnings are not sufficient
        compared to their previous job’s earnings from their previous employment, per State
        and/or local policy.

    Individuals who are underemployed and meet the definition of a low-income individual may
    receive career and training services under the Adult program on a priority basis per Section 8
    of this TEGL. Individuals who meet the definition of an individual with a barrier to
    employment (see WIOA sec. 3(24)) who are underemployed may also be served in the Adult
    program. Individuals who were determined eligible for the Dislocated Worker program who

3 The division between basic career services and individualized career services was not intended to imply that an
individual must receive basic career services before moving to individualized career services. It was simply to
clarify that individualized services must be made available to people who the one-stop center has determined require
the individualized services to obtain or retain employment, while basic career services must be made available to
everyone.

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   are determined by State and/or local policies to be underemployed, may still be considered
   eligible for career and training services under this program. We encourage states and local
   areas to develop policies and procedures for determining underemployment for both adult and
   dislocated workers.

7. Training Services. Training services can be critical to the employment success of many
   adults and dislocated workers. There is no sequence of service requirement for “career
   services” and training. This means that the State Workforce Agency (SWA) or one-stop
   center staff may determine training is appropriate regardless of whether the individual has
   received basic or individualized career services first. Under WIOA, training services may be
   provided if the SWA or one-stop center staff determine, after an interview, evaluation or
   assessment, and career planning, that the individual:
   • Is unlikely or unable to obtain or retain employment, that leads to economic self-
        sufficiency or wages comparable to or higher than wages from previous employment
        through career services alone;
   • Is in need of training services to obtain or retain employment that leads to economic self-
        sufficiency or wages comparable to or higher than wages from previous employment,
        through career services alone; and
   • Has the skills and qualifications to successfully participate in the selected program of
        training services.

   Training services, when determined appropriate, must be provided either through an
   Individual Training Account (ITA) or through a training contract discussed in Section 10 of
   this TEGL. Training services must be linked to in-demand employment opportunities in the
   local area or planning region or in a geographic area in which the adult or dislocated worker
   is willing to commute or relocate. The selection of training services should be conducted in a
   manner that maximizes customer choice, is linked to in-demand occupations, informed by the
   performance of relevant training providers, and coordinated to the extent possible with other
   sources of assistance (see WIOA sec. 134(c)(3)).

   Transitioning to Training Services

   Beginning on July 1, 2015, States and local area policies and procedures for training
   individuals in the Adult and Dislocated Worker programs must reflect the criteria above.
   States and local areas need to ensure they formulate a process for determining self-sufficiency
   standards for individuals to receive training. Developing a self-sufficiency standard is an
   allowable statewide activity (per WIOA section 134(a)(3)(A)(xii)), and adjusting the self-
   sufficiency standard for local factors is an allowable local activity (per WIOA section
   134(d)(1)(A)(x)).

8. Priority Populations under WIOA. Services provided to adults and dislocated workers
   under Title I of WIOA can be a pathway to the middle class and for maintaining and building
   the skills to remain in the middle class. WIOA provides a focus on serving “individuals with
   barriers to employment,” defined in WIOA section 3(24) and seeks to ensure access to these
   populations on a priority basis. The priority populations are discussed below:

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Priority for Adult Funds

Section 134(c)(3)(E) of WIOA establishes a priority requirement with respect to funds
allocated to a local area for adult employment and training activities. Under this section, one-
stop center staff responsible for these funds must give priority to recipients of public
assistance, other low-income individuals, and individuals who are basic skills deficient in the
provision of individualized career services, discussed in Section 4 of this TEGL, and training
services, discussed in Section 7. Under WIA, priority was required to be given to public
assistance recipients and low-income individuals when States and local areas determined that
allocated funds were limited. Under WIOA, priority must be provided regardless of the level
of funds. WIOA also expanded the priority to include individuals who are basic skills
deficient as defined in WIOA section 3(5).

Veterans and eligible spouses continue to receive priority of service for all DOL-funded job
training programs, which include WIOA programs. However, as described in TEGL 10-09,
when programs are statutorily required to provide priority for a particular group of
individuals, such as the WIOA priority described above, priority must be provided in the
following order:
        i. First, to veterans and eligible spouses who are also included in the groups given
             statutory priority for WIOA adult formula funds. This means that veterans and
             eligible spouses who are also recipients of public assistance, other low-income
             individuals, or individuals who are basic skills deficient would receive first
             priority for services provided with WIOA adult formula funds.
        ii. Second, to non-covered persons (that is, individuals who are not veterans or
             eligible spouses) who are included in the groups given priority for WIOA adult
             formula funds.
        iii. Third, to veterans and eligible spouses who are not included in WIOA’s priority
             groups.
        iv. Last, to non-covered persons outside the groups given priority under WIOA.

Note: When past income is an eligibility determinant for Federal employment or training
programs, any amounts received as military pay or allowances by any person who served on
active duty, and certain other specified benefits must be disregarded for the veteran and for
other individuals for whom those amounts would normally be applied in making an eligibility
determination. Military earnings are not to be included when calculating income for veterans
or transitioning service members for this priority, in accordance with 38 U.S.C. 4213.

Serving Separating Service Members and Military Spouses with Dislocated Worker Funds

Under TEGL 22-04, service members exiting the military, including, but not limited to,
recipients of Unemployment Compensation for Ex-Military members (UCX), generally
qualify as dislocated workers. Dislocated Worker funds under Title I can help separating
service members to enter or reenter the civilian labor force. Generally a separating service
member needs a notice of separation, either a DD-214 from the Department of Defense, or

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   other appropriate documentation that shows a separation or imminent separation from the
   Armed Forces qualifies as the notice of termination or layoff, to meet the required dislocated
   worker definition. Additionally, in most instances an individual will have to be eligible for
   or exhausted entitlement to unemployment compensation in order to receive dislocated
   worker services. In the case of separating service members, because they may be on a
   terminal leave from the military, it may make sense to begin providing career services while
   the service member may still be part of the Active Duty military, but has an imminent
   separation date. It is appropriate to provide career services to separating service members
   who will be imminently separating from the military, provided that their discharge will be
   anything other than dishonorable. Lastly, ETA policy generally dictates that a separating
   service member meets the dislocated worker requirement that an individual is unlikely to
   return to his or her previous industry or occupation.

   Regarding military spouses, WIOA expands the definition of dislocated workers to include
   military spouses who have lost employment as a direct result of a relocation to accommodate
   a permanent change in duty station of the spouse. Military spouses may also qualify if they
   are a dependent spouse of a member of the Armed Forces on active duty whose family
   income is significantly reduced, as determined by the State or local area, because of a
   deployment, a call or order to active duty, a permanent change of station, or the service-
   connected death or disability of the service member. Military spouses also can qualify if they
   are unemployed or underemployed and are experiencing difficulty in obtaining or upgrading
   employment (see WIOA sections 3(15)(E) and 3(16)(A) and (B)).

   Action Requested

   Local areas must establish written policies and procedures to ensure priority for the
   populations described above for participants served in the WIOA Adult program, for
   eligibility determinations beginning on or after July 1, 2015. As part of their monitoring and
   oversight responsibilities, States should ensure all local areas have developed and
   implemented such policies.

9. Within State Allocations – Discretionary Factors Sub-State Formula Allocations.

   WIOA Adult and Youth Sub-State Allocations

   Sub-state allocation formulas for disseminating Program Year (PY) 2015 WIOA Youth and
   Adult funds will not change from those currently under WIA. Youth funds for PY 2015 have
   already been provided to the States. The States must follow the options described in WIOA
   sections 128(b)(2) and 133(b)(2)(A) or the discretionary allocation formula described in
   sections 128(b)(3) and 133(b)(3), and data factors are the same under WIA and WIOA.
   States must identify the formula option they are using in their state plan for WIOA, due in
   2016.

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   WIOA Dislocated Worker Sub-State Allocations

   The sub-state allocation formula guidance for disseminating WIOA Dislocated Worker funds
   for PY 2015 is the same as under WIA. However, starting in PY 2016, WIOA requires the
   addition of a minimum percentage (also sometimes called a “hold harmless” or “stop loss”)
   (see WIOA sec. 133(b)(2)(B)(iii)) . A local workforce area must receive an allotment that is
   no less than 90 percent of the average allocation percentage of the local area for the two
   preceding fiscal years. In the event of a shortage of funds, the amounts necessary to increase
   the allocations to local areas to comply with this provision must be obtained by ratably
   reducing the allocations to other local areas. The minimum percentage methodology that
   States incorporate in PY 2016 for Dislocated Worker funds should resemble the minimum
   percentage methodology already in use in the sub-state Youth and Adult allocation formulas.

   Governors continue to prescribe the Dislocated Worker formula for sub-state allocations, and
   under WIOA the data factors that must be included have not changed from those under WIA.
   States must describe the formula and rationale for data factor weights in their Unified or
   Combined State Plan under WIOA.

   A State may assign zero weight to a factor only where the State is able to demonstrate it does
   not have an appropriate data source to accurately reflect State needs for a given data factor.
   For example, the Mass Lay-off and Plant Closing data, one of the six data factors WIOA
   requires, is no longer produced by the Bureau of Labor Statistics. We recognize that an
   accurate source of such data is no longer available at the national level. Some states have
   within-state administrative data available and others do not. In order to assign a weight of
   zero to a data factor, such as the Mass Lay-off and Plant Closing data factor, the State must
   include the following information in their State Plan:
   • An inventory of available national or State-level data sources germane to the data factor;
   • A discussion of why the available data sources are inadequate for the purposes of
       assigning a weight to a given data factor; and
   • A description of how the Governor’s formula is appropriate to equitably distribute funds
       throughout the State.

   (Note that weighting a data factor at zero percent is not allowable under any other
   circumstance.)

10. Training Contracts. Individual Training Accounts (ITAs) are the primary method to be
    used for procuring training services under WIOA, similar to under WIA. However, in certain
    circumstances a contract for training services may be developed instead of an ITA. Under
    section 134(c)(3)(G)(ii) of WIOA, the contract exceptions to an ITA have been expanded; the
    full list of exceptions is provided below:
    • On-the-job training, which may include placing participants in a RA program, customized
        training, incumbent worker training, or transitional jobs;
    • If the local board determines that there are an insufficient number of eligible providers of
        training services to use ITAs;

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   •   If there is a training services program of demonstrated effectiveness offered in a local
       area by a community-based organization or other private organization;
   •   If the local board determines that the most appropriate training could be provided by an
       institution of higher education to train multiple individuals for jobs in in-demand sectors
       or occupations; and
   •   If the local board determines, a pay-for-performance contract is the most effective means
       of providing training services (note that no more than 10 percent of the local funds may
       be spent on pay-for-performance contract strategies as they are defined in section 3(47) of
       WIOA).

   Additionally, a local board may determine that providing training through a combination of
   ITAs and contracts is the most effective approach. This approach could be used to support
   placing participants in programs such as RA and other similar types of training.

11. Work-based Training. Under WIOA there are additional work-based training options and
    flexibilities for adults and dislocated workers:

   Registered Apprenticeship

   RA is an important component of potential training and employment services that the
   workforce system can provide to its customers. We encourage local areas to use RA and it
   should be used more often as a career pathway for job seekers and as a job-driven strategy for
   employers and industries. RA can be funded through several mechanisms. Section 122(a)(3)
   of WIOA provides a new opportunity for RA programs to be more directly connected to the
   public workforce system. As RA programs, they automatically qualify to be placed on the
   State and local board’s Eligible Training Provider List (ETPL), allowing ITAs to support
   participants in RA programs, and more directly connect those programs to one-stop centers.

   Every state has either a federal Department of Labor Office of Apprenticeship (OA) or a State
   Apprenticeship Agency (SAA). Local boards and one-stop centers should work with the
   offices in their state to implement RA (Federal OA and SAA state contact information is
   available at http://www.doleta.gov/oa/contactlist.cfm).

   RA Program sponsors can be Eligible Training Providers (ETPs). Some examples of typical
   RA Program sponsors are:
   • Employers who provide related instruction: A number of employers with RA
     programs provide formal in-house instruction as well as on-the-job training (OJT) at the
     work site.
   • Employers who use an outside educational provider: Under this model RA program
     sponsors do not provide the related instruction or educational portion of the
     apprenticeship, but rely upon an outside educational entity to deliver instruction.
     Employers can use two- or four-year post-secondary institutions, technical training
     schools or on-line courses for related instruction. The employer is the ETP and must
     identify their instructional provider.

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•   Joint Apprenticeship Training Programs: These programs are made up of employers
    and unions. They have an apprenticeship training school where the instructional portion
    of the apprenticeship program is delivered. The training schools are usually administered
    by the union, in which case the union would be the ETP.
•   Intermediaries: Intermediaries can serve as program sponsors when they take
    responsibility for the administration of the apprenticeship program. They also can
    provide expertise such as curriculum development, classroom instruction and supportive
    services, as appropriate. The intermediary is the ETP and must identify the instructional
    provider if an outside organization is providing the educational portion of the
    apprenticeship. Intermediaries include:
        o Educational institutions including two- and four-year post-secondary institutions
            or technical schools. In this model the educational institution administers the
            program, works with employers to hire apprentices and provides classroom or on-
            line instruction for the apprenticeship program;
        o Industry associations that administer the program and work with
            employer/members and educational entities to implement the apprenticeship
            program; and
        o Community-based organizations that administer the program and work with
            employers, educational entities and the community to implement the
            apprenticeship program.

ETA is committed to fully integrating RA programs as an employment and training solution
for one-stop centers. ETA wants to ensure local areas have maximum flexibility in serving
participants and supporting their placement into RA programs. Given the unique nature of
RA, there are several ways in which training services may be used in conjunction with these
programs:

•   An ITA may be developed for a participant to receive RA training;
•   An OJT contract may be developed with a RA program for training participants. OJT
    contracts are made with the employer, and RA generally involves both classroom and on-
    the-job instruction. The OJT contract may be made to support some or all of the OJT
    portion of the RA program;
•   A combination of an ITA to cover the classroom instruction along with an OJT contract
    to cover on-the-job portions of the RA is allowed; and
•   Incumbent worker training may be used for upskilling apprentices who already have an
    established working/training relationship with the RA program.

Local areas may also include supportive services, in coordination with career and/or training
services, to participants in a RA program. These supportive services must be consistent with
WIOA section 134(d)(2), Section 12 of this TEGL, and state and local policies.

Reporting on Registered Apprenticeship Participation

As States and local areas increasingly use RA programs as part of their sector strategies and
career pathways approaches, ETA would like to remind States and local areas about how to

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report on participants who are placed into RA. Under WIA, data is reported by States using
the Workforce Investment Act Standardized Record Data (WIASRD) layout, and the
WIASRD layout will continue to be used until a new reporting layout is developed. TEGL 4-
13, Workforce Investment Act (WIA) Performance Reporting System, dated August 28, 2013,
revised reporting requirements in the WIASRD so that the type of training provided to WIA
participants now includes a specific coding value for Registered Apprenticeship (i.e. coding
value 09 on WIASRD element number 1209). Data reported thus far indicate only some
states reporting this type of training on quarterly WIASRD submissions. States are reminded
to report this information using the WIASRD.

On-the-Job Training

OJT continues to be a key method of delivering training services to adults and dislocated
workers. WIOA provides for States and local Areas to provide up to 50 percent of the wage
rate of the participant to employers for the costs of training while the participant is in the
program. Additionally, State and local areas have the flexibility under WIOA to increase the
reimbursement level to up to 75 percent taking into account the following factors:
• The characteristics of the participants (e.g. length of unemployment, current skill level,
    and barriers to employment);
• The size of the employer (e.g. small and medium-sized business often have more barriers
    to participation at lower reimbursement rates);
• The quality of employer-provided training and advancement opportunities; and
• Other factors the State or local boards may determine appropriate (e.g. the number of
    employees participating in the training, wage and benefit levels of the employees (both
    pre and post participation earnings)), and relation of the training to the competitiveness of
    the participant).

Incumbent Worker Training

Incumbent Worker training provides both workers and employers with the opportunity to
build and maintain a quality workforce. Incumbent Worker training can be used to help avert
potential layoffs of employees, or to increase the skill levels of employees so they can be
promoted within the company and create backfill opportunities for the employers. Under
section 134(d)(4) of WIOA, local boards can use up to 20 percent of their adult and
dislocated worker funds to provide for the federal share of the cost of providing Incumbent
Worker training. Incumbent Worker training needs to take into account the following
factors:
• The characteristics of the participants in the program;
• The relationship of the training to the competitiveness of a participant and the employer;
    and
• Other factors the State or local boards may determine appropriate (e.g., the number of
    employees participating in the training, wage and benefit levels of those employees (both
    pre- and post-participation earnings)), and the existence of other training and
    advancement opportunities provided by the employer).

                                             12

   States may make recommendations to the local boards for providing incumbent worker
   training that has a statewide impact.

   Employers are required to pay for a significant cost of the training for those participants in
   incumbent worker training; this can be done through both cash and/or in-kind payments. The
   wages paid to participants, while in training, may be considered as a source of matching
   funds. Rules for matching funds are provided in the Uniform Guidance and DOL exceptions
   at 2 CFR 200.306 and 2 CFR 2900.8, respectively. Under section 134(d)(4)(D) of WIOA, the
   minimum amount of employer share in the Incumbent Worker Training depends on the size
   of the employer:
   • At least 10 percent of the cost, for employers with 50 or fewer employees;
   • At least 25 percent of the cost, for employers with 51 to 100 employees; and
   • At least 50 percent of the cost, for employers with more than 100 employees.

   Employer share must be reported on the ETA-9130 quarterly financial report. ETA
   encourages States and local areas that utilize incumbent worker training to ensure contracts
   with employers provide sufficient information to include participants in reporting. Incumbent
   workers should be reported in the WIASRD under element number 911 until a new reporting
   layout is available.

   Transitional Jobs

   Transitional jobs are a new type of work-based training that is allowed under WIOA.
   Transitional jobs are time-limited work experiences that are subsidized and are in the public,
   private, or nonprofit sectors for individuals with barriers to employment who are chronically
   unemployed or have an inconsistent work history, and are combined with comprehensive
   career and supportive services. The goal of transitional jobs is to establish a work history for
   the individual that demonstrates success in the workplace, and develops the skills that lead to
   entry into and retention in unsubsidized employment. Unlike OJT, there is no assumption
   that the individual will be retained in their transitional job after the experience is over, though
   that would be a successful experience and outcome. Under section 134(d)(5) of WIOA, local
   boards may use up to 10 percent of their adult and dislocated worker funds to provide
   transitional jobs to individuals.

   If local areas choose to use transitional jobs as part of their service delivery strategy, they
   should adopt policies and identify employers (public, private or nonprofit) that can provide
   quality experiences for individuals to eventually obtain unsubsidized employment.
   Additionally, these policies should include plans on the amount reimbursements would be for
   the jobs, what supportive services should be included, and any limits on the duration of the
   transitional job.

12. Supportive Services and Needs-Related Payments. A key principle in WIOA is to provide
    local areas with the authority to make policy and administrative decisions and the flexibility
    to tailor the workforce system to the needs of the local community. To ensure maximum
    flexibility, this guidance provides local areas the discretion to provide the supportive services

                                                 13

   they deem appropriate, subject to the limited conditions prescribed by WIOA. Local Boards
   must develop written policies and procedures to ensure coordination with other entities to
   ensure the highest quality, most comprehensive service provision possible; prevent
   duplication of resources and services; and establish limits on the amount and duration of
   these services. Local Boards are encouraged to develop policies and procedures that ensure
   that supportive services are WIOA-funded only when these services are not available through
   other agencies and that the services are necessary for the individual to participate in Title I
   activities. Supportive services may be made available to anyone participating in Title I career
   or training services.

   Supportive Services may include, but are not limited to:
   • Transportation;
   • Child Care;
   • Dependent Care;
   • Housing; and
   • Needs-Related Payments (available only to individuals enrolled in training services).

   Needs-related payments are designed to provide a participant with resources for the purpose
   of enabling them to participate in training services. ETA recognizes that many individuals in
   need of training services may not have the resources available to participate in the training.
   Needs-related payments can help individuals meet their non-training expenses and help them
   to complete training successfully. According to section 134(d)(3)(B) of WIOA, a participant
   must be enrolled in a training program described in section 134(c)(3) of WIOA in order to
   receive needs-related payments.

13. Coordination with Trade Adjustment Assistance (TAA). Co-enrollment, also referred to
    as dual-enrollment, of workers certified as eligible for TAA (TAA-certified) in partnership
    with WIOA, allows for the timely provision of individualized career services and improves
    the effectiveness of the TAA Program. Strict deadlines must be met if individuals are to take
    full advantage of the Trade benefits available to TAA-certified workers. Barriers to service
    delivery to this population should be eliminated in order to maximize all the resources
    available in the one-stop delivery system; fully integrated delivery of career services is the
    goal. Since most workers who appear to be threatened with layoff or to be separated from
    employment due to increased imports or a shift in production of articles by their employer or
    employer’s customers (“trade-impacted” workers) meet dislocated worker eligibility criteria,
    these individuals should enter the one-stop delivery system immediately following the
    announcement of a layoff. They should be assisted in filing a petition with the Department
    (and the Governor) for TAA certification. Immediately beginning the process of needs and
    skills assessment improves TAA participation rates and allows individuals more time to
    consider all of the options available to them, even before these workers may become eligible
    for TAA.

   As trade-impacted workers work with one-stop center staff to formulate reemployment plans
   and more services are required, one-stop center staff should continue coordinated approaches
   to addressing the needs of the customers while maximizing the resources available within the

                                                14

   system. Once TAA eligibility has been established when the Department certifies a petition
   for TAA, and workers have been informed that they are covered by a certification, all partner
   staff should continue to work together and use the systems and processes in place to serve the
   adult and dislocated worker populations, including co-enrolled TAA-certified workers, rather
   than using a parallel process that duplicates services available through the one-stop center.
   This would include ensuring that co-enrolled TAA participants, whose training under the
   TAA program must be subject to approval under TAA program criteria, are not subjected to
   duplicative assessments for TAA and WIOA. Additionally, TAA participants would not be
   allowed duplicative job search benefits under both the TAA program and WIOA.
   Co-enrollment also may assist in making additional funds available for OJT. WIOA allows
   up to 75 percent reimbursement to employers for OJT (see Section 11 of this TEGL), while
   the TAA Program allows reimbursement up to 50 percent. For OJT approved training for a
   co-enrolled TAA participant, the TAA Program may reimburse employers up to 50 percent,
   and WIOA may reimburse employers up to an additional 25 percent, to bring the total
   reimbursement to employers up to 75 percent to align TAA Program benefits with WIOA
   benefits.

14. Other Permissible Local Activities. WIOA provides significant flexibility to local areas
    when providing services with adult and dislocated worker funds. In addition to the required
    career and training services, local areas may use these funds to provide additional job seeker
    services, business services, as well as to facilitate enhanced coordination between other
    partner programs and entities at the State and local level. Local areas can use these funds to
    develop new types of technical assistance, develop new intake procedures, test new
    procurement methods which may lead to better outcomes for jobseekers, and ensure
    provision of robust services for businesses throughout the workforce system. These
    permissible local activities include:

   Job Seeker Services
   • Customer support to enable individuals with barriers to employment (including
      individuals with disabilities and veterans) to navigate among multiple services and
      activities;
   • Training programs for displaced homemakers and for individuals training for
      nontraditional occupations (see WIOA sec. 3(37)), in conjunction with programs operated
      in the local area; and,
   • Work support activities for low-wage workers, in coordination with one-stop center
      partners, which will provide opportunities for these workers to retain or enhance
      employment. This may include any activities available under the WIOA adult and
      dislocated worker programs in coordination with activities and resources available
      through partner programs. For example, an apprentice who has not yet reached the full
      wage-rate could be provided these services to help him/her to continue to advance in
      his/her RA.

   Employer Services
   • Customized screening and referral of qualified participants in career and training services
     to employers;

                                                15

•   Customized employment-related services to employers, employer associations, or other
    such organizations on a fee-for-service basis that are in addition to labor exchange
    services available to employers under Wagner-Peyser; and,
•   Activities to provide business services and strategies that meet the workforce investment
    needs of area employers, as determined by the Local Board and consistent with the local
    plan.

Coordination Activities
• Employment and training activities in coordination with child support enforcement
   activities, as well as child support services and assistance activities, of State and local
   agencies carrying out part D of title IV of the Social Security Act;
• Employment and training activities in coordination with cooperative extension programs
   carried out by the Department of Agriculture;
• Employment and training activities in coordination with activities to facilitate remote
   access to services provided through the one-stop delivery system, including facilitating
   access through the use of technology;
• Improving coordination between workforce investment activities and economic
   development activities carried out within the local area involved, and to promote
   entrepreneurial skills training and microenterprise services;
• Improving services and linkages between the local workforce investment system and
   employers, including small employers, in the local area;
• Strengthening linkages between the one-stop delivery system and the unemployment
   insurance programs; and
• Improving coordination between employment and training activities and programs carried
   out in the local area for individual with disabilities, including programs carried out by
   State agencies relating to intellectual disabilities and developmental disabilities, activities
   carried out by Statewide Independent Living Councils established under sec. 705 of the
   Rehabilitation Act of 1973, programs funded under part B of chapter 1 of title VII of the
   Act, and activities carried out by centers for independent living;
• Other Federal agency supported workforce development initiatives, under the
   Departments of Transportation, Energy, Veterans Affairs, Housing and Urban
   Development, Interior, Health and Human Services, and Defense programs.

Other Activities
• Implementing a pay-for-performance contract strategy for training services;
• Technical assistance for one-stop centers, partners, and eligible training providers on the
   provision of services to individuals with disabilities in local areas, including staff training
   and development, provision of outreach and intake assessments, service delivery, service
   coordination across providers and programs, and development of performance
   accountability measures;
• Activities to adjust the economic self-sufficiency standards referred to in WIOA sec.
   134(a)(3)(A)(xii) for local factors or activities to adopt, calculate or commission for
   approval, economic self-sufficiency standards for the local areas that specify the income
   needs of families, by family size, the number and ages of children in the family, and sub-
   State geographical considerations; and

                                             16

   •   Implementing promising services to workers and businesses, which may include support
       for education, training, skill upgrading, and statewide networking for employees to
       become workplace learning advisors and maintain proficiency in carrying out the
       activities associated with such advising.

15. Rapid Response. Rapid Response encompasses the strategies and activities necessary to
    plan for and respond as quickly as possible following an announcement of a closure or layoff
    or natural or other disaster which results in mass job loss. Rapid Response delivers services
    to enable dislocated workers to transition to new employment as quickly as possible.

   Purpose and Responsibility

   The purpose of Rapid Response is to promote economic recovery and vitality by developing
   an ongoing, comprehensive approach to identifying, planning for, or responding to layoffs
   and dislocations, and preventing or minimizing their impacts on workers, businesses, and
   communities. A successful Rapid Response system must include:
   • Informational and direct reemployment services for workers, including but not limited to:
       information and support for filing unemployment insurance claims; information about the
       TAA program and support for filing petitions for TAA certification; information on the
       impacts of layoff on health coverage or other benefits; information on and referral to
       career services; reemployment-focused workshops and services; and training;
   • Delivery of solutions to address the needs of businesses in transition, provided across the
       business lifecycle (expansion and contraction), including comprehensive business
       engagement and layoff aversion strategies and activities designed to prevent or minimize
       the duration of unemployment;
   • Convening, brokering, and facilitating the connections, networks and partners to ensure
       the ability to provide assistance to dislocated workers and their families such as home
       heating assistance, legal aid, and financial advice; and
   • Strategic planning, data gathering and analysis designed to anticipate, prepare for, and
       manage economic change.

   Under section 134(a)(2)(A) of WIOA, as with WIA, Rapid Response activities must be
   carried out by the state or an entity designated by the state, in conjunction with the local
   boards, chief elected officials, and other stakeholders. In addition, states must establish and
   maintain a Rapid Response unit to carry out statewide Rapid Response activities and to
   oversee Rapid Response activities undertaken by a designated state entity, local board, or the
   chief elected officials for affected local areas.

   Layoff Aversion

   ETA’s vision for comprehensive Rapid Response relies heavily on the development and
   implementation of layoff aversion strategies and activities, which we believe are essential in
   ensuring that Rapid Response best meets the needs of workers, businesses, and communities.

                                               17

Layoff aversion includes the strategies and activities that are designed to prevent, or
minimize the duration of, unemployment. ETA encourages state and local Rapid Response
operators to design innovative solutions, including those described below, for both businesses
and workers in transition.

Layoff aversion may include a wide array of possible strategies or activities, including but not
limited to:
• Ongoing engagement, partnership, and relationship-building activities with businesses in
    the community, in order to create an environment for successful layoff aversion efforts
    and to enable the provision of assistance to dislocated workers in obtaining reemployment
    as soon as possible;
• Providing assistance to employers in managing reductions in force, which may include
    early identification of firms at risk of layoffs, assessment of the needs of and options for
    at-risk firms, and the delivery of services to address these needs;
• Funding feasibility studies to determine if a company’s operations may be sustained
    through a buyout or other means to avoid or minimize layoffs;
• Developing and managing incumbent worker training programs or other worker up
    skilling approaches;
• Connecting companies to state Short-Time Compensation or other programs designed to
    prevent layoffs or to quickly reemploy dislocated workers, business loan programs for
    employee skill upgrading; and other Federal, state and local resources as necessary to
    address other business needs;
• Establishing linkages with economic development activities at the Federal, state and local
    levels, including Federal Department of Commerce programs and available state and
    local business retention and expansion activities;
• Partnering or contracting with business-focused organizations to assess risks to
    companies, propose strategies to address those risks, implement services, and measure
    impacts of services delivered;
• Conducting analyses of the suppliers of an affected company to assess their risks and
    vulnerabilities from a potential closing or shift in production of their major customer;
• Engaging in proactive measures to identify opportunities for potential economic transition
    and training needs in growing industry sectors or expanding businesses; and
• Connecting businesses and workers to short-term, on-the-job, or customized training
    programs and apprenticeships before or after layoff to help facilitate rapid reemployment.

For more information on allowable layoff aversion strategies and activities, see Training and
Employment Notice (TEN) 9-12, Layoff Aversion in Rapid Response Systems.

State and local Rapid Response programs have the discretion to determine which strategies
and activities are applicable in given situations, based upon specific needs, policies, and
procedures within the State or local area.

                                            18

Other Required Activities

In addition to layoff aversion as described above, there are a number of other activities that
are required to be carried out by state and local Rapid Response operators. These are:
• Immediate and on-site contact with the employer, affected workers or their
    representatives, and the local community, which should include an assessment of, and
    strategy to address: 1) the employer’s layoff plans and schedule; 2) the background,
    assistance needs, and reemployment prospects of the affected workers; and 3) resources
    available;
• The provision of information and access to unemployment compensation benefits and
    programs, such as Short-Time Compensation, comprehensive one-stop system services,
    and employment and training activities, including information on the TAA program, Pell
    Grants, the GI Bill, and other resources;
• The delivery of other necessary services and resources including workshops and classes,
    use of worker transition centers, and job fairs, to support reemployment efforts for
    affected workers;
• Establishing partnerships with local boards and chief elected officials to ensure
    coordinated responses to dislocation events and, as needed, obtain access to state or local
    economic development assistance;
• The provision of emergency assistance adapted to a particular layoff, disaster, or other
    emergency situation;
• As appropriate, developing systems and processes for identifying and gathering
    information for early warning of potential layoffs or opportunities for layoff aversion;
    analyzing, and acting upon, data and information on dislocations and other economic
    activity in the state, region, or local area; and tracking outcome and performance data and
    information related to the activities of the Rapid Response program;
• To ensure the ability to provide Rapid Response services as early as possible, developing
    and maintaining partnerships with other Federal, State and local agencies and officials,
    business associations, technical councils, industry councils, labor organizations, and other
    public and private organizations, as applicable. These partnerships may conduct strategic
    planning activities, address dislocation events and ensure timely access to a broad range
    of assistance. They may also develop mechanisms for gathering and exchanging
    information and data relating to potential dislocations, available resources, and the
    customization of layoff aversion or Rapid Response activities;
• Delivery of services to worker groups for which a petition for TAA has been filed;
• The provision of additional assistance to local areas that experience disasters, layoffs, or
    other dislocation events that exceed the capacity of the local area to respond with existing
    resources; and
• The provision of guidance and financial assistance as appropriate, when establishing a
    labor-management committee if voluntarily agreed to by the bargaining representative for
    the employees and management. The assistance to such a committee may include
    training and technical assistance to members of the committee, and funding the operating
    costs of a committee to enable it to provide advice and assistance in carrying out Rapid
    Response activities and in the design and delivery of WIOA-authorized services to
    affected workers.

                                            19

   Other Allowable Activities with Rapid Response Funds

   WIOA, like WIA, offers significant flexibility with regard to the use of Rapid Response
   funds. States or designated Rapid Response providers may, in order to conduct layoff
   aversion activities or to prepare for and respond to dislocation events, devise additional
   strategies or conduct activities that are intended to minimize the negative impacts of
   dislocation on workers, businesses, and communities and to ensure that workers impacted by
   layoffs are able to be reemployed as quickly as possible.

   Additionally, when circumstances allow, Rapid Response operators may provide guidance
   and/or financial assistance to establish community transition teams to assist the impacted
   community in organizing support for dislocated workers, and in meeting the basic needs of
   their families. Such assistance can include, but is not limited to providing heat, shelter, food,
   clothing and other necessities and services that are beyond the resources and ability of the
   one-stop delivery system to provide.

   Additional Assistance

   WIOA, similar to WIA, allows states to reserve up to 25 percent of dislocated worker funds
   for Rapid Response activities. Once the state has reserved adequate funds, any of the
   remaining funds reserved may be provided to local areas that experience increases of
   unemployment due to natural disasters, layoffs or other events, for provision of direct career
   services to participants if there are not adequate local funds available. States are encouraged
   to establish the policies or procedures governing the provision of additional assistance.

   Program Reporting

   States must report information regarding the receipt of Rapid Response services by
   individuals enrolled as dislocated workers in the WIASRD until a WIOA record layout is
   provided. ETA will issue guidance on performance reporting under WIOA in the future.

   Rapid Response Funds at the End of the First Program Year

   WIOA permits States to use Rapid Response funds which remain unobligated by the State for
   Rapid Response activities at the end of the program year in which they were allotted to the
   State, for other allowable statewide activities, including prioritizing the planning for and
   delivery of activities designed to prevent job loss, increasing the rate of reemployment,
   building relationships with businesses and other stakeholders, building and maintaining early
   warning networks and systems, and otherwise supporting efforts to assist long-term
   unemployed workers to return to work.

16. Inquiries. Questions regarding this guidance should be directed to the appropriate ETA
    regional office.

                                                20

17. Attachment.
    • Attachment: References

                               21

Attachment 1

Official attachment: https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEGL/2015/TEGL_03-15_Attachment_Acc.pdf

Attachment

                     WIOA Operating Guidance TEGL References

  •   The Workforce Innovation and Opportunity Act (WIOA) of 2014 (Public Law (Pub. L.
      113-128)) Title I and III, enacted July 22, 2014;
  •   The Workforce Investment Act (WIA) of 1998 (Pub. L. 105-220), Title I and Title III;
  •   Title 38 United States Code (38 U.S.C. 4213);
  •   TEGL No. 26-14,”Workforce Innovation and Opportunity Act Transition Authority for
      Flexible Use of State Rapid Response Funds,” dated April 14, 2015;
  •   TEGL No. 19-14, “Vision for the Workforce System and Initial Implementation of the
      Workforce Innovation and Opportunity Act,” dated February 19, 2015;
  •   TEGL No. 4-13, “Workforce Investment Act (WIA) Performance Reporting System,”
      dated August 28, 2013;
  •   TEGL No. 15-12, “Delivery of Benefits and Services to Trade Adjustment Assistance
      (TAA) Program Recipients through the American Job Center Network Delivery System,”
      dated March 7, 2013;
  •   TEGL No. 15-10, “Increasing Credential, Degree, and Certificate Attainment by
      Participants of the Public Workforce System,” dated December 15, 2010;
  •   TEGL No. 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;
  •   TEGL No. 17-05, “Common Measures Policy for the Employment and Training
      Administration’s (ETA) Performance Accountability System and Related Performance
      Issues,” dated February 17, 2006;
  •   TEGL 22-04, “Serving Military Service Members and Military Spouses under the
      Workforce Investment Act Dislocated Workers Formula Grant,” dated March 22, 2005;
  •   Unemployment Insurance Program Letter (UIPL) 12-01, Change 1, “Outsourcing of
      Unemployment Compensation Administrative Functions – Claims Taking,” dated
      November 26, 2007;
  •   UIPL 12-01, “Outsourcing of Unemployment Compensation Administrative Functions –
      Claims Taking,” dated December 28, 2000;
  •   Training and Employment Notice (TEN) 9-12, “Layoff Aversion in Rapid Response
      Systems,” dated August 31, 2012;
  •   TEN No. 49-11, “Reporting on Attainment of Industry Recognized Credentials,” dated
      June 6, 2012.