1997 Work-Flex state demonstration applications

U.S. DEPARTMENT OF LABOR
Employment and Training Administration Washington, D.C. 20210 CLASSIFICATION: JTPA/Work-Flex CORRESPONDENCE SYMBOL: TD ISSUE DATE: April 3, 1997 RESCISSIONS: EXPIRATION DATE: Continuing

TRAINING AND EMPLOYMENT GUIDANCE LETTER NO. 07-96

TO: ALL STATE JTPA LIAISONS; ALL STATE WORKER ADJUSTMENT LIAISONS; ALL STATE EMPLOYMENT SECURITY AGENCIES; ALL ONE-STOP CAREER CENTER SYSTEM LEADS

FROM: ROBERT S. KENYON, Acting Administrator for Regional Management

SUBJECT: Workforce Flexibility (Work-Flex) Partnership Demonstration Program

1. Purpose. To announce the request for applications from States for the Workforce Flexibility (Work-Flex) Partnership Demonstration Program.

2. Background. The 1997 Department of Labor's Appropriations Act (Public Law 104-208) authorizes the Workforce Flexibility (Work-Flex) Partnership Demonstration Program. This directive transmits the Federal Register Notice describing the process for submittal of applications.

   The appropriations legislation provides that the Secretary of Labor may authorize a Work-Flex demonstration program for provision of workforce employment and training activities in "...not more than six States, of which at least three States shall each have populations not in excess of 3,500,000...". The Work-Flex waiver may be for a period of up to five years. Under this provision, the Secretary would authorize a State "to waive any statutory or regulatory requirement applicable to service delivery areas or substate areas within the State under Titles I-III of the Job Training Partnership Act", with certain exceptions and "any of the statutory or regulatory requirements of sections 8-10 of the Wagner-Peyser Act".

   The legislation authorizes the granting of the Work-Flex waiver to a State pursuant to a plan submitted by the State and approved by the Secretary. Preference is to be given to States that have been designated as Ed-Flex Partnership States under section 311(e) of Public Law 103-227. The list of current Ed-Flex Partnership States is attached. The Federal Register Notice which announces this application process is also attached.

   Unlike the legislative provisions for Ed-Flex, the legislation for Work-Flex does not permit a State to waive statutory requirements that apply to the State. However, such authority is provided under the general waiver provisions. The general waiver authority is for a period of one program year beginning July 1, 1997 and provides:

   • increased flexibility to States and local areas in implementing reforms to the workforce development system in exchange for State and local accountability for results, including improved performance;

   • an important opportunity for States and localities to begin or continue to organize services into a workforce development system through the concepts of One-Stop Career Centers and School-to-Work systems which enhance the training and employment opportunities available to adults and youth.

3. Process for Submitting Applications. Work-Flex applications will be accepted by the Department until May 30, 1997. After that date, proposals will be accepted only if: (1) fewer than six States apply; (2) fewer than three States with a population under 3,500,000 apply; or (3) fewer than six applications received by that date are approved by the Secretary. Please note that a total of six States will be designated under Work-Flex. Additional designations, up to a total of six States, may be made in FY 1998, only if fewer than six applications are approved in FY 1997, and if proposed language in the 1998 appropriation request is enacted.

   States may submit both a Work-Flex application and a general waiver request at the same time. While there are differences in time coverage and exceptions for the two sets of waiver authorities, a combined request would permit a State to obtain waivers for both the State level and the service delivery area for a minimum of one year. We are entertaining joint submissions to permit streamlined submission and to facilitate the objectives of the overall waiver authority. If the general waiver authority is continued, then subsequent approvals of the State waiver requests could be continued.

4. OMB Reporting Burden. Persons are not required to respond to this collection of information unless it displays a currently valid OMB control number. Public reporting of information is estimated to average 80 hours per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden to the Office of IRM Policy, U.S. Department of Labor, N-1301, 200 Constitution Avenue, N.W., Washington, D.C. 20210 (Paperwork Reduction Project 1205-0375).

5. Action Required. States which are interested in obtaining authority to grant waivers under the legislative authority provided must follow the requirements contained in the attached Federal Register Notice.

6. Inquiries. Questions regarding this directive should be referred to your Employment and Training Administration Regional Office.

7. Attachments. List of Ed-Flex Partnership States and Federal Register Notice.

Attachment 1, Ed-Flex states and Work-Flex application notice (https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEGL/1997/TEGL7-96_attach1.pdf):

ED-FLEX DEMONSTRATION STATES

MASSACHUSETTS
OHIO
MARYLAND
TEXAS
COLORADO

VERMONT
KANSAS

NEW MEXICO
OREGON
Billing Code

DEPARTMENT OF LABOR

Employment and Training Administration
20 CFR Part 626

Work-Flex

AGENCY: Employment and Training Administration, DOL
ACTION: Request for Applications for Work-Flex Designation

SUMMARY: Applications are invited from States under the
Workforce Flexibility Partnership Demonstration Program
(Work-Flex) which is authorized under the Department of
Labor Appropriations Act of 1997 (Pub. L. 104-208). The
Secretary may authorize Work-Flex waivers in not more than
six States, of which at least three must have populations
not in excess of 3,500,000, with preference given to those
States designated as Ed-Flex Partnership States under Goals
2000: Educate America Act (Pub. L. 103-227). Work-Flex
designation will be made pursuant to an application and plan
submitted by the State for the provision of workforce

employment and training activities which is approved by the
Secretary.

DATES: The deadline for submittal of applications will be
May 30, 1997, close of business. After that date,
applications will be accepted only if: 1) fewer than 6
States apply; 2) fewer than 3 States with a population under
3,500,000 apply; or 3) fewer than 6 proposals received by
that date are approved by the Secretary.

ADDRESSES: Applications must be submitted to the U.S.
Department of Labor, Employment and Training Administration,
Office of Job Training Programs, 200 Constitution Avenue,

N.W., Room N4459, Attention: Work-Flex Application,
Washington, DC 20210.

FOR FURTHER INFORMATION CONTACT: James M. Aaron, Director,
Office of Employment and Training Programs, 200 Constitution

Avenue N.W., Washington, DC 20210, (202) 219-5580 (this is
not a toll-free number) .

SUPPLEMENTAL INFORMATION:

Background

The specific provision authorizing the Work-Flex
program is as follows:

"...the Secretary of Labor shall establish a workforce
flexibility (Work-Flex) partnership demonstration program
under which the Secretary shall authorize not more than six
States, of which at least three States shall each have
populations not in excess of 3,500,000, with a preference

given to those States that have been designated Ed-Flex
Partnership States under section 311(e) of Public Law 103-227, to waive any statutory or regulatory requirement
applicable to service delivery areas or substate areas
within the State under titles I-III of the Job Training
Partnership Act (except for requirements relating to wage
and labor standards, grievance procedures and judicial
review, non-discrimination, allotment of funds, and
eligibility), and any of the statutory or regulatory
requirements of sections 8-10 of the Wagner-Peyser Act
(except for requirements relating to the provision of
services to unemployment insurance claimants and veterans,
and to universal access to basic labor exchange services
without cost to job seekers), and for a duration not to
exceed the waiver period authorized under section 311(e) of
Public Law 103-227, pursuant to a plan submitted by such
States and approved by the Secretary for the provision of
workforce employment and training activities in the States,
which includes a description of the process by which service
delivery areas and substate areas may apply for and have
waivers approved by the State, the requirements of the
Wagner-Peyser Act to be waived, the outcomes to be achieved
and other measures to be taken to ensure appropriate
accountability for federal funds."

The Work-Flex program is a demonstration program under
which the Secretary may grant six States the authority to
waive certain statutory or regulatory requirements
applicable to service delivery areas or substate areas
within the State under titles I-III of the Job Training
Partnership Act (JTPA) or sections 8-10 of the Wagner-Peyser
Act (W-P Act). The legislation also contains certain
provisions that may not be waived under the JTPA and the W-P
Act. The types of these non-waivable provisions and the
specific provisions are discussed below.

The granting of authority to issue waivers is intended
to provide flexibility to States to enhance the development
of a comprehensive workforce development System and to
improve the quality and quantity of outcomes for persons
served. The legislation provides that at least three of the
six States shall have a population not in excess of
3,500,000 and that preference be given to States designated
under Ed-Flex. The State proposal for workforce development
system improvement must provide a description of the process
by which service delivery areas and substate areas may apply
for and have waivers approved: examples of the requirements
of JTPA and the requirements of the W-P Act to be waived;
the outcomes to be achieved; and the measures to be taken to
ensure appropriate accountability for Federal funds.

The Department is very interested in working with
States within the statutory authority to make improvements
in the workforce delivery system. To this end, the
Department wants the States to know it will actively
consider applications which will assist the State and its
local service delivery structure in implementing workforce
delivery system improvements. The Department of Labor's

guiding principles for reform of the job training systems
include:

• Individual Opportunity and Customer Choice.
Empowering participants who need employment and
training services with the resources and
information needed to make good choices.

• Leaner Government. Replacing separate programs
with streamlined systems for youth and adults,
organized around the principles espoused by the
School-to-Work and One-Stop concepts.

• Greater Accountability. Ensuring a clear focus on

results, not process, through mutually agreed upon
improved performance outcomes.

• State and Local Flexibility. Providing States,
local communities and training systems with the

freedom to tailor programs to meet real, locally
determined needs.

• Strong Private Sector Roles. Ensuring that
business, labor and community organizations are

full partners in systems design and quality
assurance.

Finally, the Department wishes to remind the States of the
importance of maintaining programs for the disadvantaged and
dislocated workers, maintaining adequate and comparable
reporting and, within the School-to-Work framework,
providing work opportunities, especially during the summer
months, to disadvantaged youth.

APPLICATION REQUIREMENTS AND CRITERIA:

1. Who may apply and when may applications be submitted?
Any State may apply for designation as a Work-Flex State.

As required under the legislation and as discussed below,
preference will be given to States designated by the
Secretary of Education as Ed-Flex States. Initially,
applications will be received until May 30, 1997. Since the
Secretary may delegate waiver authority to only six States,
applications will be accepted after that date only if: 1)

fewer than six States apply; or 2) fewer than three States

apply with a population under 3,500,000 or 3) fewer than
six applications received by May 30 are approved by the
Secretary. Please note that not more than a total of six
States will be designated under Work-Flex. If six
applications are approved in FY 1997, no additional
designations will be made. If six States are not designated
in FY 1997, and proposed language in the 1998 budget is

approved, additional States up to a total of six may be
designated.

Single SDA States with one State-wide SDA/SSA may apply for
Work-Flex designation. In such States, the application must
specify the entity which may request such waivers (typically
the SJTCC or portion thereof which serves as the Private
Industry Council). The Department recommends that States
which have a single SDA identify a different body with
responsibility for making decisions on requested waivers.

2. What information should be included in a State’s Work-Flex proposal? To be considered for designation as a Work-Flex State, the Governor must submit an application to the
Secretary. This application must include the following:

a. Plan. A plan for the provision of workforce
employment and training activities for the State. This may
be a summary of the State plan for employment and training
activities, but should be in sufficient detail to describe
how the State envisions using the Work-Flex authority to

enhance the development of a comprehensive employment and
training system.

b. JTPA Requirements. A description of the process by
which service delivery areas and substate areas may apply
for and have waivers approved; and

c. W-P Act Requirements. A description of the specific
requirements in Sections 8, 9 and 10 of the W-P Act and
applicable regulations to be waived.

d. Specific Elements to be Addressed. To be
responsive to the above, the application must contain a
specific description of the process and requirements for
JTPA and W-P Act waivers (as appropriate), including:

(1) identification of the State official designated by
the Governor who would have authority to grant requested
waivers, including documentation that the Governor has
granted the official such authority;

(2) requirements for application for a waiver by
service delivery areas and substate areas;

(3) identification of the JTPA requirements for
which the waivers will likely be requested (either
specific, if known, or examples) ;

(4) description of the criteria for approval of
waivers, including a description of the process for assuring
that waivers proposed for approval are not prohibited by the
provisions of legislation (including requirements of
legislation other than JTPA), or provisions under which the
Work-Flex authority is granted.

(5) process for providing an opportunity for public
review and comment;

(6) requirement(s) for identification of improvement
in outcomes to be expected as the result of granting a
waiver, including how the baseline will be established and
what data sources will be used;

(7) measures to be taken to ensure the appropriate
accountability for federal funds and reporting;

(8) procedures that the State will use to monitor and
evaluate the implementation of waivers by local areas,
including the outcomes to be achieved;

(9) a statement of State legislative, regulatory or
other impediments to administration of the waiver authority
sought and planned State action to resolve such matters; and

(10) assurance that the State has the capacity to
administer the waiver system.

As provided in the legislation, certain provisions are
not subject to waiver under Work-Flex. For the JTPA, these
include requirements relating to wage and labor standards,
grievance procedures, judicial review, nondiscrimination,
allotment of funds and eligibility. Also, waiver authority
must be requested by and granted to service delivery areas
or substate areas. State responsibilities or programs
operated under statewide authority are not subject to waiver
under this program. For example, this includes designation
of service delivery areas or substate areas, the State
planning process, the State Education and Coordination
grants under section 123, the Services to Older Individuals
under section 204(d), the Title III funds reserved for State
activities (Governors’ Reserve) under section 302(c) and

grants awarded to States with Title III National Reserve
Account (NRA) funds.

Note: Some provisions (such as certain State
responsibilities) not subject to waiver under the Work-Flex

authority may be eligible for waiver under the other new
statutory or regulatory waiver authority included in the
Appropriations Act. For example, a State may apply for
waivers for State-based programs. Such general waiver
requests may be submitted as part of the Work-Flex proposal
or may be submitted separately. General waiver requests
will be reviewed in the context of the requested Work-Flex
authority, but will be subject to the one-year limit
applicable to such general waivers.

For the W-P Act, only the requirements of sections 8-10, which relate to the development, review and approval of
State plans, recordkeeping and reporting may be waived. The
law also specifically excludes from waivers any requirements
relating to provision of services to unemployment insurance
claimants and veterans and to universal access to basic
labor exchange services without cost to job seekers.

e. Public Consultation and Comment Process. The
Department expects the State to involve the local elected
officials, the private industry councils, and community-based organizations and other stakeholders in the process
when developing the Work-Flex application. Consistent with
the general waiver request, the State must provide
interested parties an opportunity to review and comment on
the proposed application. At a minimum, the following
groups must be afforded the opportunity to review and
comment on the proposed application: (1) The State Job
Training Coordinating Council; (2) each house of the State
legislature; (3) local elected officials and Private
Industry Councils; (4) appropriate local education and other
public and non-profit agencies in the service delivery
areas; and (5) labor organizations in the area which
represent employees having the skills in which training is
proposed and public sector unions, where they may be
affected. Also, the proposed application must be made
reasonably available to the general public through such
means as public hearings and local news facilities.

The Work-Flex authority is intended to provide States
with the ability to enhance the development of a
comprehensive workforce development system, including
implementation of the One-Stop Career Center system and the
School-to-Work system. Another area of importance is the
area of improving both the quality and quantity of outcomes
of individuals served. Both of these will be of substantial
importance in reviewing of proposals requesting the granting

of the Secretary’s authority for issuing waivers under Work-Flex.
CRITERIA FOR EVALUATION OF WORK-FLEX APPLICATIONS
Criteria for evaluation of Work-Flex proposals include:

1. Plan and Outcomes. The extent to which the authority
sought will result in:

a. improving the outcomes to persons served, and

b. enhancing implementation of a comprehensive
workforce development system in one or more areas.

The extent to which the authority sought will enhance
the implementation of the One-Stop Career Center system
and/or the School-to-Work system will be major factors in
the evaluation of proposals.

2. Responsiveness. The extent to which the application
meets the requirements of the legislation and this Notice
for submission of an application. This includes the quality
of the process for reviewing and approving local

applications for waivers and for documenting and monitoring
the results of waivers.

3. Accountability of Funds. Measures to be taken to ensure
the accountability of federal funds, including monitoring,
evaluation and reports.

4. Preference for Ed-Flex States - Tie-Breaking Procedures.
Proposals will be evaluated based on the quality and
specificity of the proposal. In the event that proposals
submitted are judged to be substantially equal, preference

will be given to States designated as Ed-Flex States on or
before May 30, 1997.

5. Public Comments. All comments received on the
application should be forwarded with the application to the

Department of Labor together with the State’s disposition of
such comments.

CONDITIONS

1. Federal Review of Work-Flex Waivers Granted. In
applying for waivers, States must recognize that the impact
of the use of Work-Flex authority to achieve goals and
outcomes specified in the State proposal will be reviewed
annually against stated goals. The Department reserves the
right to withdraw the authority to issue waivers if: goals
specified are not met for two consecutive years; or the
State grants waivers for non-waivable provisions or for
provisions of other legislation not subject to waiver.

2. Duration and Coverage. Work-Flex authority may be
granted for up to five years. States granted such authority
may approve waivers requested from all service delivery
areas or substate areas or from selected areas.

3. Notification of the Granting of Waivers. States will be
required to submit reports on a semi-annual basis concerning
the administration of the waiver authority and on the
accomplishments under this authority. After one year, annual
reporting will be required. States shall notify the
appropriate ETA Regional Administrator of the granting of a
waiver(s) semi-annually. This notification shall include
the area for which the waiver is granted, the provision of

legislation and/or regulation waived and the duration of the
waiver.

4. Federal Assistance. States are encouraged to regularly
consult with the ETA Regional Office regarding any matters
in which the discussion and assistance in the Work-Flex
administration would be useful. Because Work-Flex is an
important demonstration program with implications for future
job training and employment service delivery, it is
important that Work-Flex be tested to ensure that
appropriate accountability can be maintained. ETA Regional
staff will be responsible for providing information on Work-Flex administration and implementation. States granted
Work-Flex authority are strongly urged to work closely -- on
an ongoing basis ~- with Regional Office staff so that both
the federal and State partners are fully informed on the
status and issues under Work-Flex. States may be asked to
participate with ETA staff in designing and conducting the
planned evaluation of the effectiveness of Work-Flex.

RAYMOND J. UHALDE
Acting Assistant Secretary of Labor