JTPA Title II and III performance standards for PY 1996 and 1997

Training and Employment Guidance Letter No. 4-95, Change 1

U.S. Department of Labor, Employment and Training Administration May 3, 1996

CLASSIFICATION: JTPA/Perf. Standards
CORRESPONDENCE SYMBOL: TP
RESCISSIONS: None
EXPIRATION DATE: Continuing

DIRECTIVE: TRAINING AND EMPLOYMENT GUIDANCE LETTER NO. 04-95, Change 1

TO: ALL STATE JTPA LIAISONS
ALL STATE WAGNER-PEYSER ADMINISTERING AGENCIES ALL STATE WORKER ADJUSTMENT LIAISONS

FROM: BARBARA ANN FARMER
Administrator for Regional Management

SUBJECT: Job Training Partnership Act (JTPA) Title II and Title III Performance Standards for PY's 1996 and 1997

1. Purpose. To transmit additional guidance to Attachment G, "JTPA Performance Standards", of Training and Employment Guidance Letter No. 4-95, dated February 21, 1996. This Guidance Letter provides additional information on the Secretary's required performance measures and the Secretary's implementing instructions for performance standards for Program Years (PYs) 1996 and 1997 (July 1, 1996-June 30, 1997; July 1, 1997-June 30, 1998).

2. References.

   a. Job Training Partnership Act (JTPA), as amended.

   b. JTPA Regulations, 20 CFR 626-629 and 631, published in the Federal Register on September 2, 1994.

   c. Training and Employment Guidance Letter (TEGL) No. 4-95, dated February 21, 1996.

   d. Training and Employment Guidance Letter (TEGL) No. 2-95, dated August 10, 1995.

   e. Training and Employment Guidance Letter (TEGL) No. 1-94, dated August 31, 1994.

   f. Training and Employment Information Notice No. 5-93, Change 1, dated June 23, 1994.

3. Background. Sec. 106 of JTPA, as amended, directs the Secretary to establish performance standards for adult, youth, and dislocated worker programs. These standards may be updated every two years based on the most recent JTPA program experience, as well as program emphases and goals established by the Department of Labor. The Secretary also issues instructions for implementing standards and parameters for States to follow in adjusting the Secretary's standards for service delivery areas (SDAs) and substate areas (SSAs).

   To assist the Department in assessing the JTPA operational environment and constraints likely to influence state and local performance during the reference period, a Performance Standards Workgroup was convened in February 1996. The Workgroup had representatives from State and local JTPA programs; public interest groups, including the National Association of Workforce Development Professionals; the U.S. Conference of Mayors; the National Association of Private Industry Councils; the National Association of Counties; the National Governors' Association; and the National Council on the Aging. This Guidance Letter largely incorporates the Workgroup's recommendations.

4. Highlights of Changes from PY's 1994 and 1995. Following is a summary of major changes from PY 1994 and 1995 policy:

   • All performance indicators remain the same--none are added or dropped;

   • All numerical levels in which there was an appreciable difference in average performance between PY 1992 and 1994 are updated; thus, numerical levels for three of the six core standards in Title II as well as the Title III standard are raised, and three (including both youth measures) remain the same;

   • Overall failure to meet standards under Title II is defined as failing three or more of the Secretary's six core standards;

   • Governors are encouraged to include in their incentive awards policies criteria rewarding successful out-of-school youth programs and placements in jobs providing employer-assisted benefits; and

   • Clarification of the definition of what constitutes complete follow-up data is provided in Attachment 1.

5. Performance Management Goals for PY's 1996 and 1997. Departmental goals for JTPA's performance management system serving disadvantaged adults and youth and dislocated workers focus on:

   • Improving the quality and intensity of services to disadvantaged adults that lead to skills acquisition, long-term employability and increased earnings above poverty;

   • Raising the quality of job placements for disadvantaged adults by ensuring above-poverty wages, full-time work, and employer-assisted benefits;

   • Ensuring disadvantaged youth attain skill enhancements that lead to employment or advanced education or training;

   • Equipping and placing adult laid-off workers in need of immediate reemployment with jobs that pay equal or better than their previous wage; and

   • Committing to continuous improvement in the delivery of employment and training services to maximize their value to the customers.

   These goals are reflected in the Secretary's Title II-A, Title II-C, Title III and Section 204(d) performance measures, national numerical standards for these measures, incentive award criteria, and associated reporting requirements. Governors have the authority to establish additional standards which reflect State goals, to develop the definitions of passing and failing individual standards, and to develop the specific approach to determining incentive awards.

   This issuance specifies the national standards for PY's 1996 and 1997 and details the criteria which must be a part of State incentive grant policies for Title II. Data to support additional non-cost measures will continue to be reported, and Governors may use these measures or others in making State incentive award determinations for the up to 25% of incentive funds permitted for additional State standards under Section 106 (e). Data on costs, together with program performance data, will provide critical information for State monitoring and fiscal oversight, and assist States in measuring returns on their human resource investments.

6. Secretary's National Standards for PY's 1996 and 1997. The Secretary's performance measures and national standards for Title II-A, Title II-C, section 204(d), and Title III (all of section 302(c)(1) State activities, and sections 302(c)(2) and 302(d) substate area activities) are as follows:

*Indicates Secretary's six required "core" measures that are subject to incentives and sanctions.

The four Title II-A adult and welfare follow-up measures will continue to be calculated based on outcomes data for individuals who terminate during the first three quarters of the program year and the last quarter of the previous program year.

7. Explanation of Performance Standards Levels. The Title II-A and II-C numerical standards were derived from PY 1994 program data aggregated from the Standardized Program Information Report (SPIR). The same approach for setting numerical levels used previously is expected to produce local standards that are similar in difficulty to what SDAs/SSAs have experienced in the past. Past practice was to set numerical levels on non-earnings measures where at least 75% of SDAs can be expected to meet the standard, and to set levels for earnings measures where at least 60% of SDAs can be expected to meet the standard. The higher level was used for earnings measures to account for expected inflation in wage rates.

   Essentially the same procedure was used to set the PY 94 numerical levels for those measures with significant changes in performance. The Adult Weekly Earnings at Follow-Up standard has been set at a level that was exceeded by 60% of SDAs in PY 94 to account for expected future inflation. By PY 96, about 75% of SDAs are expected to exceed this level. However, the Welfare Weekly Earnings was set at a level exceeded by 75% of SDAs in PY 94. State welfare reforms and funding cuts are changing the client mix and reducing the types of services provided welfare clients. This may slow future gains in welfare clients' earnings. Further, welfare reform's emphasis on immediate placement at any wage, and the "earnings disregard" practice in many States, may also lower the average weekly earnings of welfare clients served by JTPA.

   Because of the cuts in youth program funding, no changes are made in the levels for these standards. To give the system some flexibility in sustaining youth services, the sanctioning requirements for youth measures are relaxed. SDAs will no longer be penalized if they do not meet the youth standards as long as they meet at least four of six core standards.

   Similar to the Title II-A and Title II-C standards, the Title III standard for PY 1996 and 97 was derived from PY 1994 program data aggregated from the SPIR. This standard is also set at a level that approximately 75 percent of the substate areas can be expected to meet or exceed.

   For the first time, PY 1994 SPIR data were used to assist in setting performance standards levels for the Section 204(d) Older Workers program. Since no trend data were available to guide assessment of future performance on the Average Hourly Wage standard, it also was not future-inflation adjusted.

   NOTE: Programs operated under section 204(d) are State programs even though they may be managed by various local entities. Therefore, performance standards will be applied to the total older worker programs State-wide. Unlike the adult and youth programs under Title II-A/C, however, no incentive awards or sanctions are associated with these standards.

8. Implementing Provisions. The following implementing requirements must be followed:

   A. Required Standards. For Titles II-A and II-C, Governors are required to set, for each SDA, a numerical performance standard for each of the six Secretary's measures; for the Older Worker program, Governors are required to set numerical Entered Employment Rate and Average Wage at Placement standards for programs operated under section 204(d); for Title III, Governors are required to set for each substate area a numerical performance standard for the Entered Employment Rate and are encouraged to establish a wage recovery goal.

   B. Setting the Standards. Consistent with provisions in JTPA, Governors are now required to adjust the Secretary's performance standards to reflect local area circumstances (section 106(d)). Such adjustments apply to Title II-A, Title II-C, section 204(d) and Title III programs, and must conform to the Secretary's parameters described below:

   1.  **Procedures must be:**
   
       - Responsive to the intent of the Act,
   
       - Consistently applied among the SDAs/SSAs,
   
       - Objective and equitable throughout the State,
   
       - In conformance with widely accepted statistical criteria;
   
   2.  **Source data must be:**
   
       - Of public use quality,
   
       - Available upon request;
   
   3.  **Results must be:**
   
       - Documented,
   
       - Reproducible; and
   
   4.  **Adjustment factors must be limited to:**
   
       - Economic factors,
   
       - Labor market conditions,
   
       - Geographic factors,
   
       - Characteristics of the population to be served,
   
       - Demonstrated difficulties in serving the population, and
   
       - Type of services to be provided.
   
       The Department offers Governors an optional adjustment methodology that conforms both to these parameters and to the requirement in section 106(d). This methodology covers Title II-A, Title II-C, Section 204(d), and Title III programs and will be provided to States in a future Training and Employment Information Notice. Should the Governor choose to use an alternate methodology, or make adjustments not addressed by the Departmental model, it must conform to the parameter criteria and be documented in the Governor's Coordination and Special Services Plan (GCSSP) prior to the program year to which it applies.
   
       The State Job Training Coordinating Council and, where appropriate, the State Human Resources Investment Council must have an opportunity to consider adjustments to the Secretary's standards and to recommend variations. To determine whether an SDA has met or exceeded a performance standard, Governors must use actual end-of-year program data to recalculate the performance standards.
   

   C. Performance Standards Definitions. Governors must calculate the performance of their SDAs, SSAs, and section 204(d) programs according to the definitions included in the Attachments.

   D. Titles II-A and II-C Incentive Policies. Governors are to develop and implement policies and procedures for awarding incentive grants in accordance with Section 106(b)(7). As the basis for making incentive awards, the Governors must use all and cannot "zero weight" any of the six Secretary's core measures. At least 75 percent of the funds set aside for performance incentives must be related to these measures and, if applicable, the out-of-school youth and employer-assisted benefits criteria, in accordance with section 106(b)(7)(E). The following criteria are required in Governors' incentive award policies:

   1.  A Secretary's standard for service to the hard-to-serve, as required by section 106(b)(7)(B) of JTPA, has been established in the form of a stand-alone eligibility criterion ("gate") for incentive awards. In order for an SDA to be eligible to receive **ANY** incentive award, at least 65 percent of **BOTH** the SDA's (a) Title II-A **AND** (b) Title II-C (in-school and out-of-school youth combined) participants receiving training and/or other services beyond objective assessment must be hard-to-serve. The definitions of hard-to-serve are to be consistent with the definitions in sections 203(b), 263(b), and 263(d) of the Act.
   
   2.  For those SDAs that successfully "pass through" the gate, (in addition to any funds set aside for Governors' standards) the **amount** of the incentive award for SDAs exceeding the Secretary's performance standards will be determined by the Governor's policy in conformance with DOL requirements.
   
   3.  SDAs that pass through the "gate" and exceed all six of the Secretary's Titles II-A and II-C core standards must receive an incentive award.
   
   4.  Governors also may select additional non-cost measures, such as increased service to hard-to-serve participants, to include in incentive policies.
   
   5.  Cost standards cannot be used for incentive award purposes. However, States are reminded of the integral role of financial reviews in program management. States are encouraged to explore ways of relating overall costs of job training to more direct measures of long-term employment, earnings and reductions in welfare.
   
   6.  Incentive policies may include adjustments to incentive award amounts based upon factors such as grant size, additional services to the hard-to-serve, intensity of service, and expenditure level.
   
   7.  In PY 1996 and 1997, Governors will continue to have the authority to exclude pilot projects serving "hard-to-serve" individuals funded from the 5 percent incentive fund set-aside in computing their standards and actual performance. States and SDAs are encouraged to use such funds to develop or replicate model programs serving out-of-school youth.
   
   **NOTE:**  For those SDAs in which "incentive projects" are indistinguishable from those that provide general training, these programs would not be considered exempt from performance standards.
   
   Governors are encouraged to include in their incentive policies criteria relating to: 1) programs successfully serving out-of-school youth, and 2) placement in jobs providing employer-assisted benefits. Although **successful** programs for out-of-school youth remain the cornerstone of out-of-school incentives, SDAs will still be expected to exceed the 50 percent minimum service level to be rewarded under that criterion.
   

   E. Titles II-A and II-C Technical Assistance and Sanction Policies. Determination of an SDA's failure to meet standards and the consequent imposition of technical assistance and reorganization requirements under section 106(j) will be based only on the Secretary's Title II-A and Title II-C core measures.

   "Meeting Performance Standards" overall is defined as meeting at least four of the six core standards. Conversely, overall "failure to meet performance standards" is defined as failing **any** three (3) or more of the core standards. Definitions for meeting and failing **individual** standards will be established by Governors.
   
   Failure to meet performance standards for the first year precludes an SDA from receiving any incentive awards and requires Governors to provide technical assistance to the underperforming SDA.
   
   Failure to meet performance standards in the second consecutive year precludes an SDA from receiving any incentive award and requires Governors to impose a reorganization plan.
   
   Section 106(j)(3) requires each State to report to the Secretary, not later than 90 days after the end of each program year, the actual performance and performance standards for each SDA within the State. Within the same timeframe, technical assistance plans developed by the State are required for each SDA "failing" for the first year. A 90-day timeframe also applies to the imposition of a reorganization plan, which is mandatory when an SDA "fails" for a second consecutive year. Specific procedures for the formal performance standards report and required State action were provided in Training and Employment Guidance Letter 2-95, dated August 10, 1995.
   
   However, in addition to the formal annual process, there should be ongoing oversight of SDA performance and continuous technical assistance and capacity-building aimed at addressing areas where program performance can be improved.
   

9. Action Required. States are to distribute this Guidance Letter to all officials within the State who need such information to implement the performance standards policies and requirements for PY 1996 and 1997. It is especially critical that States, State Councils, Private Industry Councils and SDA operational staff become thoroughly familiar with the provisions concerning performance standards and incentive and sanctions policies.

   Governors must specify in the GCSSP their incentive award policy under section 202(c)(1)(B) and 202(c)(3)(A) and imposition of sanctions policy under section 106(j). It is recognized that the timing of this issuance may preclude some States from submitting complete incentive policies with their PY 1996 and 1997 GCSSPs. States are to provide as much information as possible in compliance with required due dates and submit a GCSSP amendment containing complete information no later than August 31, 1996.

10. Inquiries. Questions concerning this issuance may be directed to Valerie Lloyd at (202) 219-5487, ext. 115.

11. Attachments:

    1. Definitions for Performance Standards

    2. Youth Employability Enhancement Definitions

    3. Rewarding Model Programs for Out-of-School Youth

    4. Rewarding Placements in Jobs Providing Employer-Assisted Benefits

Attachment 1: Definitions for Performance Standards

Source: https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEGL/1996/TEGL4-95_Ch1_Attach1.pdf (accessed October 25, 2026)

DEFINITIONS FOR PERFORMANCE STANDARDS

Title II-A and II-C

Those terminees who receive only objective assessment and/or
supportive services (or only objective assessment and/or supportive
services and entered employment) are to be excluded from the
calculation of performance outcomes for Title II-A, Title II-C, and
section 204(d) older worker programs. Participants in special 5-
percent-funded projects may, at the discretion of the Governor, also
be excluded from the calculation of performance outcomes for Title
II-A and Title II-C.
The following defines the Title II-A performance standards:

1. Adult Follow-Up Employment Rate - Adult respondents who were
employed (for at least 20 hours per week) during the 13th full
calendar week after termination, divided by adult respondents (i.e.,
terminees who completed follow-up interviews).

2. Adult Follow-Up Weekly Earnings - Weekly earnings for all adult
respondents who were employed (for at least 20 hours per week) during
the 13th full calendar week after termination, divided by adult
respondents employed (for at least 20 hours per week) at the time of
follow-up.

3. Welfare Follow-Up Employment Rate - Adult welfare respondents who
were employed (for at least 20 hours per week) during the 13th full
calendar week after termination, divided by adult welfare respondents
(i.e., terminees who completed follow-up interviews).

4. Welfare Follow-Up Weekly Earnings - Weekly earnings for all adult
welfare respondents employed (for at least 20 hours per week) during
the 13th full calendar week after termination, divided by adult
welfare respondents employed (for at least 20 hours per week) at the
time of follow-up.

NOTE: The Title II-A adult and welfare follow-up employment measures
will continue to be based on individuals who terminate during the
first three quarters of the program year and the last quarter of the
previous program year. If the response rates for those employed at
termination and those not employed at termination in an SDA differ by
more than 5 percentage points in either the adult or welfare samples,
then the calculations of the follow-up outcomes for that group must
be modified to adjust for non-response bias. Individuals will be
counted as completing the follow-up survey (respondents) if they
answer the question on employment in the 13th week and, if employed,
answer the questions on the hourly wage and weekly hours. Responses
to the questions on weeks worked and working with the same employer

are not needed to be counted as a respondent or to be included in the
computation of the performance outcomes.

The following defines the Title II-C performance standards:

5. Youth Entered Employment Rate (YEER) - Youth who entered
employment at termination (for at least 20 hours per week), divided
by youth who terminated, excluding those potential dropouts who are
reported (on the Standardized Program Information Report [SPIR]) as
remained-in-school and dropouts who are reported (on the SPIR) as
returned-to-school.

NOTE: As in past practice, youth terminees who remain-in-school or
return-to-school and who also enter employment will not be excluded
from the termination pool reflected in the denominator of the Youth
Entered Employment Rate. However, only employment of at least 20
hours per week satisfies the requirement for "employment."

6. Youth Employability Enhancement Rate (YEEN) - Youth who attained
one of the employability enhancements at termination, whether or not
they also obtained a job, divided by youth who terminated.

Youth Employability Enhancements include:

a.   Attained (two or more) PIC-recognized Youth Employment
     Competencies.
b.   Completed major level of education following participation of
     at least 90 calendar days or 200 hours in JTPA activity.
c.   Entered and retained for at least 90 calendar days or 200 hours
     in non-Title II training or received a certification of
     occupational skill attainment.
     NOTE: It is expected that the ultimate result of this outcome
     will be the attainment of a job-specific skill competency on
     the part of the terminee.
d.   Returned to and retained in full-time school (dropouts only)
     for one semester or at least 120 calendar days, attained a
     basic or job-specific skill competency, and made satisfactory
     progress.
     NOTE: For the purposes of this outcome, and the remained in
     school outcome described below, "school" includes alternative
     schools, defined as a specialized, structured curriculum
     offered inside or outside of the public school system which may
     provide work/study and/or General Educational Development (GED)
     test preparation.
e.   Remained in school for one semester or at least 120 calendar
     days (for youth at risk of dropping out of school), attained a
     basic or job-specific skill competency, and made satisfactory
     progress.
     NOTE: For youth aged 14 and 15, the acceptable competencies
     will be basic skills or pre-employment/work maturity.

Section 204(d) Older Worker Program

The following defines Section 204(d) Older Worker program performance
standards:

1. Entered Employment Rate - Individuals who entered employment of
at least 20 hours per week at termination, divided by terminations.

2. Average Wage at Placement - Hourly wage rate of all terminees who
entered employment of at least 20 hours per week at termination,
divided by terminees who entered employment of at least 20 hours per
week at termination.

Title III

The following defines the Title III performance standard:

1. Entered Employment Rate - Individuals who entered employment of
at least 20 hours per week at termination, excluding those who were
recalled or retained by the original employer after receipt of a
layoff notice, divided by terminations, excluding those who were
recalled or retained by the original employer after receipt of a
layoff notice.

NOTE: As indicated in the definitions listed above, for performance
standards purposes, the term "employment" means employment for 20 or
more hours per week. For determining compliance with this provision,
a "week" means a period of 7 consecutive days, and the 20 or more
hours is to be understood as a condition of the employment. No
formal verification is required, but the Department encourages States
to set up a system that would, at a minimum, provide for random
checking to assess compliance by SDAs.

Attachment 2: Youth Employability Enhancement Definitions

Source: https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEGL/1996/TEGL4-95_Ch1_Attach2.pdf (accessed October 25, 2026)

YOUTH EMPLOYABILITY ENHANCEMENT DEFINITIONS

"Youth Employability Enhancement" means an outcome for youth, other
than entered unsubsidized employment, which is recognized as
enhancing long-term employability and contributing to the potential
for a long-term increase in earnings and employment.

Outcomes which meet this requirement shall be restricted to the
following:

(1) Attained PIC-Recognized Youth Employment Competencies (two or
more reported from SPIR items 36a, 36d, and 36e);
(2) Returned to Full-Time School;
(3) Remained in School;
(4) Completed Major Level of Education; or
(5) Entered Non-Title II Training.

1. Attained PIC-Recognized Youth Employment Competencies - Youth who
demonstrated proficiency, as defined by the PIC in two or more of the
following three skill areas in which the terminee was deficient at
enrollment: 1) pre-employment/work maturity (SPIR item 36a); 2) basic
education (SPIR item 36d); or 3) job-specific skills (SPIR item 36e).
Competency gains must be achieved through program participation and
be tracked through sufficiently developed systems that must include:
quantifiable learning objectives, related curricula/training modules,
pre and post-assessment, employability planning, documentation, and
certification. The completely detailed definition for Youth
Employment Competency systems is located in the Standardized Program
Information Reporting System (SPIR) instructions.

2. Returned to Full-Time School - Youth who: (1) had returned to
full-time secondary school (e.g., junior high school, middle school
and high school) including an alternative school if, at the time of
intake, the participant was not attending school (exclusive of summer
school) and had not obtained a high school diploma or equivalent; and
(2) prior to termination, had been retained in school for one
semester or at least 120 calendar days.

Alternative School - A specialized, structured curriculum offered
inside or outside of the public school system which may provide
work/study and/or GED preparation.

NOTE: To obtain credit for Returned to Full-Time School and Remained
in School (described below), SDAs must be prepared to demonstrate
that retention results from continuing, active participation in JTPA
activities and the youth must: (1) be making satisfactory progress in
school; and (2) (for youth aged 16-21) attain a PIC-approved Youth
Employment Competency in Basic Skills or Job-Specific Skills; or (3)

(for youth aged 14-15) attain a PIC-approved Youth Employment
Competency in Pre-employment/Work Maturity or Basic Skills.

Satisfactory Progress in School - An SDA, in cooperation with the
local school system, must develop a written policy that defines
an individual standard of progress for each participant that he or
she is required to meet. Such a standard should, at a minimum,
include both a qualitative element of a participant's progress (e.g.,
performance on a criterion-referenced test or a grade point average)
and a quantitative element (e.g., a time limit for completion of the
program or course of study). This policy may provide for exceptional
situations in which students who do not meet the standard of progress
are nonetheless making satisfactory progress during a probationary
period because of mitigating circumstances.

3.   Remained in School - Youth who, prior to termination, had been
retained in full-time secondary school, including alternative school,
for one semester or at least 120 calendar days. A youth may be
reported as Remained-in-School only if he/she was attending school at
the time of intake, had not received a high school diploma or its
equivalent, and was considered "at risk of dropping out of school,"
as defined by the Governor in consultation with the State Education
Agency.

4. Completed Major Level of Education - Adults/youth who, prior to
termination, had completed, during enrollment in the program, a level
of educational achievement which had not been reached at entry.
Levels of educational achievement are secondary and post-secondary.
Completion standards shall be governed by State standards and shall
include a high school diploma, GED Certificate or equivalent at the
secondary level, and shall require a diploma or other written
certification of completion at the post-secondary level.

NOTE: To obtain credit, completion of a major level of education
must result primarily from active JTPA program participation of at
least 90 calendar days or 200 hours, usually prior to the completion
of the major level of education.

5. Entered Non-Title II Training - Adults/youth who, prior to
termination, had entered an occupational skills employment/training
program not funded under Title II of the JTPA, that builds upon and
does not duplicate training received under Title II.

NOTE: To obtain credit, the participant must have been retained in
that program for at least 90 calendar days OR 200 hours or must have
received a certification of occupational skill attainment. During
the period the participant is in non-Title II training, he/she may or
may not have received JTPA services. It is expected that the
ultimate result of this outcome will be the attainment of a job-
specific skill competency on the part of the terminee.

Attachment 3: Rewarding Model Programs for Out-of-School Youth

Source: https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEGL/1996/TEGL4-95_Ch1_Attach3.pdf (accessed October 25, 2026)

Rewarding Model Programs for Out-of-School Youth

Outcomes achieved by out-of-school youth 30 months after entering the
program have been disappointing. In an effort to address this
finding, the Department encourages Governors in their incentive
policies to reward out-of-school youth programs that are identified
by the Department or recognized by the State as having a demonstrated
record of success.

States need to develop ways to identify such programs.   Possible
approaches include:

o   Using outcomes achieved to identify successful programs.
    Outcomes could include both the two youth performance measures
    and measures such as learning gains and earnings/retention in
    full-time employment.
o   Alternatively, States could offer SDAs "seed money" from
    incentive funds to plan/operate programs that provide
    innovative or high-quality training to out-of-school youth
    based on criteria established by the Governor. Examples of
    such criteria include training that integrates occupational and
    basic skills training, and training that emphasizes acquiring
    job skills in demand in the emerging workplace.

NOTE: Whatever method is used to reward successful out-of-school
youth programs, access to such incentives must be limited to those
SDAs that serve in excess of 50 percent out-of-school youth in their
overall Title II-C program.

Attachment 4: Rewarding Placements in Jobs Providing Employer-Assisted Benefits

Source: https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEGL/1996/TEGL4-95_Ch1_Attach4.pdf (accessed October 25, 2026)

Rewarding Placements in Jobs Providing Employer-Assisted Benefits

The Department encourages Governors in their incentive policies to
reward SDAs for placements in jobs with employer-assisted benefits,
including health benefits. Rewarding such placements is intended to
increase the focus on overall job quality. To include placements in
jobs with employer-assisted benefits in their incentive policies,
States will need to:

1.   Specify how the criterion will be measured. The definition
     must be consistent with that for SPIR Item 35c (i.e.,
     consisting of, at a minimum, health insurance benefits and
     coverage under Social Security or an equivalent pension plan).
     Note that it is not necessary for an individual to actually
     receive benefits when employment begins as long as they are an
     acknowledged component of employment conditions. For example,
     health benefits available after a waiting-period and benefits
     that are refused because of availability from another source
     both count as employer-assisted benefits. Examples of measures
     of jobs with benefits, using data from SPIR Item 35c are:
     - among terminees who enter employment, the percent who are in
     jobs providing employer-assisted benefits; and
     - among all terminees, the percent who enter employment and
     are in jobs providing employer-assisted benefits.

2.   Determine how to reward placement in jobs with employer-assisted benefits. One possible approach would require the
     State to determine a departure point or benchmark to use in
     setting rewards levels for benefits. This departure point
     would serve the same function served by the numerical national
     standards for the Secretary's core measures. It would be the
     level that, before any adjustment for local factors, identifies
     rewardable performance. Under this approach, a State would
     also decide whether and how the departure point should be
     adjusted for local clientele and economic conditions when
     setting reward levels for each SDA.

     Rather than setting reward levels for employer-assisted
     benefits using a process akin to setting standards for the
     Secretary's core measures, States may choose a simpler
     approach. Because there are no sanctions based on this
     criterion, it is not absolutely necessary to set a minimally
     acceptable performance level. It is possible to reward SDAs at
     all levels of performance on employer-assisted benefits. One
     way to do this would be to set aside a portion of incentive
     funds to reward such placements. This reward pool could be
     divided among SDAs based on their proportionate share of all
     placements in jobs with employer-assisted benefits. This
     procedure is equivalent to giving a fixed amount for each placement (i.e., the amount is the value of
the pool divided by the total number of placements into jobs
with benefits in the State).

Because this approach may be viewed as favoring SDAs in areas
where benefits are widely prevalent, it should be viewed as
interim until better data on employer-assisted benefits are
available.