WIA waivers for economic recovery

Accessible letter PDF: https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEGL/2008/TEGL08-08acc.pdf

CLASSIFICATION
                                                      WIA Waivers
   EMPLOYMENT AND TRAINING ADMINISTRATION
                                                      CORRESPONDENCE SYMBOL
               ADVISORY SYSTEM
                                                      OWI-DWSS
          U.S. DEPARTMENT OF LABOR
                                                      DATE
             Washington, D.C. 20210                   December 24, 2008




ADVISORY:        TRAINING AND EMPLOYMENT GUIDANCE LETTER NO. 8-08

TO:              STATE WORKFORCE AGENCIES
                 STATE WORKFORCE LIAISONS
                 OTHER (As applicable)

FROM:            BRENT R. ORRELL /s/
                 Deputy Assistant Secretary

SUBJECT:         Use of the Workforce Investment Act of 1998 (WIA) Flexibility in
                 Economic Recovery

1. Purpose. The purpose of this Training and Employment Guidance Letter is to
   describe common waivers to the Workforce Investment Act of 1998 (WIA) and the
   Wagner-Peyser Act that may assist states as they develop economic recovery
   strategies.

2. References.
      • The Workforce Investment Act of 1998
      • WIA Section 189(i)(4) (waiver authority)
      • WIA Section 192 (work-flex)
      • 20 CFR 661.420-430 (regulatory text on waivers)

3. Background. Section 189(i)(4) of WIA authorizes the Secretary to waive certain
   statutory and regulatory provisions of WIA and of the Wagner-Peyser Act. This
   general statutory and regulatory waiver authority provides increased flexibility to
   states and local areas, and provides an opportunity for states and localities to
   organize services in ways that best meet the needs of the state, regional, and local
   economy.

   As states develop economic recovery strategies and serve workers and employers
   impacted by the economic downturn, the Employment and Training Administration
   (ETA) encourages states to consult with local partners to identify any barriers that
   may stand in the way of innovative and effective responses. ETA regional staff and
   national office program staff are available to discuss how waivers might be used to
   overcome legal or regulatory barriers related to WIA. For example, states serving



 Rescissions                                     Expiration Date
 None                                            Continuing

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   large numbers of individuals with limited labor force attachment or experiencing
   increased layoffs, may benefit from a waiver that permits a funds transfer between
   adult and dislocated worker funding streams.

   Similarly, states that identify a need for statewide retraining in new industry sectors
   and occupations may benefit from a waiver that allows local and rapid response
   funds to be used for statewide service delivery demonstrations that target a
   particular need.

   Please note that WIA prohibits waivers for certain WIA and Wagner-Peyser
   provisions including wage and labor standards, allocation of funds to local areas,
   eligibility of participants and providers, the establishment and functions of local
   areas and local workforce investment boards, and procedures for review and
   approval of plans, as described at WIA Section 189(i)(4)(A).

4. Waivers. The list below features routinely approved waivers that states may want
   to utilize as they implement new workforce strategies or adjust current strategies to
   assist workers and employers in an economic downturn. States may also wish to
   request waivers of provisions that are not listed below. Information on requesting
   waivers can be found at www.doleta.gov/waivers.

   The U.S. Department of Labor has routinely approved the following waivers:

      Adult and Dislocated Worker Program Funds Transfer. Waiver of the funds
      transfer limitation at WIA Section 133(b)(4) to permit states to approve local area
      requests to transfer more than 30 percent (as allowed through provisions in the
      Department of Labor’s annual Appropriations Acts) of local area formula
      allocation funds between the WIA Adult and Dislocated Worker programs, up to
      100 percent.

      This waiver is useful for targeting funds to areas of local need. States with an
      approved waiver have the opportunity to encourage local areas to exercise the
      option to transfer funds as needed; states that do not have the waiver may want
      to consider submitting a request. States with less than 100 percent flexibility may
      want to consider submitting a waiver request to raise the transfer limit.

      The following states currently have an approved waiver in the amount listed:
      AK, AL, AZ, CA, CO, DC, FL, GA, GU, HI, IA, IN, KS, KY, LA, MD, MN, MO,
      MS, NC, NE, NH, NJ, NM, NV, PA, PR, SD, TN, TX, UT, VA, WI, WY (100
      percent); MA, OH, SC, TN, WV (50 percent); AR, NY, and VI (40 percent).

      Reallocation Flexibility. Waiver of the reallocation provisions at WIA Sections
      128(c)(2) and 133(c)(2), and 20 CFR 667.160, to provide states with additional
      flexibility in the targeting of WIA funds.

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Under the waiver, states have been permitted to implement one or more of the
following features: 1) mid-year deobligation and reallocation of local area funds;
2) use of recaptured funds from local areas for statewide activities identified in
WIA section 134(a) by the state or reallocation to other eligible local areas; and 3)
use of additional factors in determining local area eligibility for a reallocation of
recaptured funds, including demonstrated need and ability to use additional
funds.

The following states have been approved for this type of waiver: AL, CO, FL,
KS, LA, MI, MN, MO, MS, NC, OH, PA, TN, TX, and VA.

Use of Local Funds for Statewide Activities. Waiver to permit local areas to
request the use of a portion of local area formula funds for adults and dislocated
workers to provide statewide activities identified at WIA Section 134(a).

WIA limits the authority to provide the activities at WIA Section 134(a) to the
state, so a waiver of this provision permits local areas to use a portion of local
formula funds to conduct activities identified as statewide employment and
training activities under the statute. Historically, the Department of Labor has
approved the use of up to 50 percent of local area funds in this manner. This
waiver can be effective in targeting funds to priority initiatives. Some local areas
are conducting incumbent worker training under the state’s approved waiver;
other states have asked and been granted the flexibility to conduct the full range
of allowable statewide activities.

The following states have been granted this type of waiver: AL, AR, CA, CO,
CT, DC, FL, ID, IL, IN, KS, KY, LA, MA, MD, MI, MN, MO, MS, MT, NC, NJ,
NM, NY, OH, OK, OR, PA, PR, SC, TX, UT, VA, and WI.

Use of Rapid Response Funds for Statewide Activities. Waiver to permit the
use of a portion of the funds reserved for rapid response activities in 134(a)(1)(A)
to provide other required and allowable statewide activities in WIA Section
134(a)(1)(B).

This waiver allows states to use rapid response funds more flexibly and for a
wider range of activities, including incumbent worker training. Historically, the
Department has approved the use of up to 50 percent of rapid response funds in
this manner.

The following states have been approved for this waiver: AL, FL, ID, IN, KS, KY,
LA, MA, MI, MN, MO, NC, NY, OH, OR, PA, PR, SC, TN, TX, VA, and VI.

Youth Training. Waiver of the regulatory prohibition on use of Individual
Training Accounts (ITA) for older and out-of-school youth (20 CFR 664.510).

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      This waiver provides states with flexibility in provision of training services to
      youth. The following states have been approved for this waiver: AK, AR, CA,
      CT, FL, GA, IL, IN, KS, KY, LA, MA, MD, MN, MO, MS, NJ, NM, NY, OH, OK,
      PA, PR, RI, TN, TX, UT, VA, VI, and WV.

      Employer Match for Customized Training. Waiver of the required 50 percent
      employer match for customized training at WIA Section 101(8)(C).

      This waiver allows local areas to offer a sliding scale match based on criteria
      developed by the state. The following states have been approved for this waiver:
      AL, AR, AZ, CA, GU, HI, IA, KY, LA, MN, MO, MS, NJ, OH, OK, PA, PR, RI, SC,
      TX, and VI.

      Employer Reimbursement for On-the-Job Training. Waiver of the employer
      reimbursement for on-the-job training at WIA Section 101(31)(B) for impacted
      businesses and businesses training affected individuals.

      This waiver increases a state’s flexibility in connecting employers with jobseekers
      by reimbursing employers for extraordinary costs of providing on-the-job
      training. The following states have been approved for this waiver: AL, AR, KS,
      IA, IL, LA, MO, MS, PA, SC, TX, and VI.

5. Work-Flex. Work-flex authority allows governors to waive certain statutory or
   regulatory requirements under Title I of WIA and Sections 8 through 10 of the
   Wagner-Peyser Act applicable to local areas, when local areas submit a plan
   requesting such waivers. Work-flex authority is not only applicable to provisions of
   WIA and the Wagner-Peyser Act, but is also applicable to certain provisions of the
   Older Americans Act for the Senior Community Service Employment Program
   (SCSEP). Once the work-flex waiver authority has been granted, a governor can
   approve waivers for local areas without having to come back to the Secretary for
   permission. The following states have work-flex authority: AL, LA, MI, MO, MS,
   and OK.

6. Wagner-Peyser Act Waivers. Although there is a narrower range of provisions
   subject to the Department’s waiver authority for the Wagner-Peyser Act and its
   regulations, there are opportunities for waivers. The Department approved a
   waiver of WIA and the Wagner-Peyser Act for the State of Florida to allow WIA or
   Wagner-Peyser funded staff in a One-Stop Career Center to provide intake for
   partner programs such as Food Stamp Employment and Training and Temporary
   Aid to Needy Families without having to cost allocate staff time for each respective
   program.

   The waiver authority extends to Sections 8-10 of the Wagner-Peyser Act. The
   Department cannot waive the merit-staffing provisions of Wagner-Peyser Act, its

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   provisions relating to the provision of basic labor exchange services free of charge,
   nor its provisions governing services to unemployment insurance claimants and
   veterans.

7. Waiver Request Process. In order to request a waiver, a state should submit a
   waiver plan, which may include one more waiver requests. A state may submit a
   waiver plan with its strategic State Plan, or at any time after submission of the State
   Plan. For each waiver request, the waiver plan should include the following:

   A. The statutory and/or regulatory requirements for which a waiver is requested;

   B. A description of the actions the state or local area has undertaken to remove state
      or local barriers;

   C. A description of the:
      • Goals of the waiver,
      • Relationship of the goals to the strategic plan goals, and
      • Expected programmatic outcomes;

   D. A description of the individuals impacted by the waiver; and

   E. A description of the processes used to:
      • Ensure meaningful public comment, including comment from business and
         labor,
      • Provide notice to any local board affected by the waiver,
      • Provide affected local boards opportunity to comment, and
      • Monitor implementation.

8. Action Requested. States are encouraged to examine existing approved waivers, to
   consider how waivers can support the state’s strategic economic recovery efforts,
   and to consult with their state FPO and request additional waivers as needed.

9. Inquiries. States should address their inquiries to their ETA regional office.
   General inquiries about waivers may be addressed to [email protected].