Supporting UI claimants in education and training

CLASSIFICATION
   EMPLOYMENT AND TRAINING ADMINISTRATION                UC/Approved Training and WIOA
               ADVISORY SYSTEM                           CORRESPONDENCE SYMBOL
          U.S. DEPARTMENT OF LABOR                       OUI/DUIO
             Washington, D.C. 20210                      DATE
                                                         September 23, 2016


ADVISORY:       TRAINING AND EMPLOYMENT GUIDANCE LETTER NO. 8-16

TO:           STATE WORKFORCE AGENCIES
              STATE WORKFORCE LIAISONS
              STATE AND LOCAL WORKFORCE BOARDS
              AMERICAN JOB CENTERS
              STATE UNEMPLOYMENT INSURANCE DIRECTORS

FROM:         PORTIA WU /s/
              Assistant Secretary

SUBJECT:      Supporting Unemployment Insurance Beneficiaries Seeking Postsecondary
              Education or Training

1. Purpose. To encourage the public workforce system to consider policies and strategies that
   support Unemployment Insurance (UI) beneficiaries who are seeking postsecondary
   education and training opportunities, including longer-term training and education programs.

2. References.
    The Workforce Innovation and Opportunity Act (WIOA) of 2014 (Public Law (Pub. L.
      113-128)) Title I and Title III;
    The Workforce Investment Act (WIA) of 1998 (Pub. L. 105-220), Title I and Title III;
    Section 3304(a)(8) of the Federal Unemployment Tax Act (FUTA);
    Section 211(e)(1) of the VOW to Hire Heroes Act of 2011 (Pub. L. 112-56) (VOW Act);
    Section 479A of the Higher Education Act of 1965 (Pub. L. 89-329);
    Section 560 of the National Defense Authorization Act for Fiscal Year 2016 (Pub. L.
      114-92)
    Training and Employment Guidance Letter (TEGL) No. 3-15, 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;
    Training and Employment Notice (TEN) No. 11-09, Supporting UI Claimant Training
      Needs in the One-Stop Career Center;
    TEN No. 32-08, Guidance on 2009-2010 FAFSA: New Needs Determination to Include
      WIA Dislocated Workers;
    TEGL No. 2-09, Approved Training for the Unemployment Insurance Program
      Recommended Policies;
    TEGL No. 21-08, Change 1, Pell Grants and the Payment of Unemployment Benefits to
      Individuals in Approved Training;
 RESCISSIONS                                             EXPIRATION DATE
 None                                                    Continuing


      TEGL No. 21-08, Pell Grants and the Payment of Unemployment Benefits to Individuals
       in Approved Training;
      Unemployment Insurance Program Letter (UIPL) No. 14-16 Change 1, The National
       Defense Authorization Act for Fiscal Year 2016 (Pub. L. 114-92) - Provisions that Affect
       the Unemployment Compensation for Ex-servicemembers Programs
       UIPL No. 14-16, The National Defense Authorization Act for Fiscal Year 2016 (Pub. L.
       114-92) - Provisions that Affect the Unemployment Compensation for Ex-servicemembers
       Programs

3. Background. This TEGL was developed in coordination with the Higher Education Student
   Supports Inter-agency Task Force (Task Force). The Task Force is a coordinated effort
   among multiple Federal partners, including the Department of Labor (Department), and the
   Departments of Education and Health and Human Services, to support students’
   opportunities and success by increasing take-up and alignment of existing supports and
   resources for low-income students, which may include unemployed or underemployed
   individuals. A key component of the Task Force’s activities is promoting greater awareness
   and understanding of available educational and related supports, including Federal student
   aid and other means-tested programs, among groups that may be unaware of such eligibility.
   For example, the most common explanation among Pell Grant-eligible students for not
   completing a Free Application for Federal Student Aid (FAFSA) is that they did not think
   they were eligible. Similarly, many unemployed veterans who sought training assistance
   under the VOW to Hire Heroes Act of 2011 were unaware that they were already eligible for
   other veteran’s education benefits.

   Providing recipients of UI benefits with reemployment and training services continues to be
   one of the core missions of the public workforce system. In 2009, President Obama
   encouraged unemployed American workers to consider education and training opportunities
   to develop their skills while the economy was recovering. In support of the President, the
   Department issued a series of TEGLs strongly encouraging states to help beneficiaries in
   pursuing training and education while receiving UI benefits. This guidance also identified
   flexibilities and resources that may help unemployed workers apply for Pell Grants and other
   Federal student aid programs both within and outside the workforce system.

   Although the economic conditions today are substantially different from 2009, many of the
   factors that contributed to the President’s encouragement of states and unemployed workers
   to consider education and training as a pathway to reemployment are even more relevant
   today. By 2020, nearly two thirds of all jobs will require some postsecondary education or
   training. Additionally, numerous studies have linked post-secondary education to financial
   self-sufficiency and economic mobility. Allowing UI beneficiaries to continue to receive
   benefits while enrolled in education/training programs, which the states may do under
   Section 3304(a)(8), FUTA, may help to reduce reliance on loans and increase enrollment
   intensity, which is associated with increased rates of program completion and ultimately help
   these individuals succeed in the labor market.


4. New Commitments Under the Workforce Innovation and Opportunity Act. WIOA,
   which became law on July 22, 2014, supersedes titles I and II of WIA, amends the Wagner-
   Peyser Act, and amends the Rehabilitation Act of 1973. The WIOA Joint Rule for Unified
   and Combined State Plans, Performance Accountability, and the One-Stop System Joint
   Provisions was made publically available on June 30 2016, and published in the Federal
   Register on August 19, 2016. This guidance reflects the final regulations and the statutory
   provisions of WIOA.

   For many UI beneficiaries, enrollment in the WIOA Dislocated Worker program may be an
   appropriate and sufficient means of obtaining the career and/or training services necessary for
   reemployment. However, WIOA also recognizes that some beneficiaries may require
   assistance beyond that provided by WIOA-authorized programs, and includes new provisions
   to help define and formalize the role of the public workforce system in assisting customers to
   identify public education and training assistance.

   In the context of serving UI beneficiaries, Section 305 of WIOA specifically amended
   Section 7(a)(1) of the Wagner-Peyser Act to clearly identify “unemployment insurance
   claimants” among the groups to be served and Section 7(a)(3)(G) to acknowledge the
   importance of referring UI claimants to education and training opportunities:

        providing unemployment insurance claimants with referrals to, and application
       assistance for, training and education resources and programs, including Federal Pell
       Grants under subpart 1 of part A of title IV of the Higher Education Act of 1965 (20
       U.S.C. 1070a et seq.), educational assistance under chapter 30 of title 38, United States
       Code (commonly referred to as the Montgomery GI Bill), and chapter 33 of that title
       (Post-9/11 Veterans Educational Assistance), student assistance under title IV of the
       Higher Education Act of 1965 (20 U.S.C. 1070 et seq.), State student higher education
       assistance, and training and education programs provided under titles I and II of the
       Workforce Innovation and Opportunity Act, and title I of the Rehabilitation Act of 1973
       (29 U.S.C. 720 et seq.).

   WIOA includes a similar provision in Section 134(c)(2)(A)(xi) which identifies the career
   services provided across WIOA’s partners to eligible adults and dislocated workers to
   include, “assistance in establishing eligibility for programs of financial aid assistance for
   training and education programs that are not funded under this Act.” This provision is further
   explained in the WIOA final regulations at 20 CFR 678.430. Information about career
   services is also provided in TEGL No. 3-15.

   Many American Job Centers (AJCs) currently assist UI beneficiaries and other unemployed
   workers with educational financial aid applications. Others may need to establish policies,
   provide desk aids, conduct staff training, or upgrade web sites and materials. Some online
   resources that may support these efforts are listed below:

                 The Department of Education’s Financial Aid Toolkit provides Federal
                  student aid information and outreach tools for counselors, college access


                  professionals, nonprofit mentors, and others. AJC staff providing career and
                  training services to UI beneficiaries and other job seekers are strongly
                  encouraged to familiarize themselves with these resources to help inform their
                  education and career counseling (https://financialaidtoolkit.ed.gov/tk/ ).
                      o The Financial Aid Toolkit includes a downloadable flyer with
                          additional information about the FAFSA. AJCs are encouraged to
                          consider posting and distributing this flier and other FAFSA
                          information at their local offices, websites, and through its routine
                          mailings and outreach to AJC customers
                          (https://financialaidtoolkit.ed.gov/resources/college-scorecard-fafsa-
                          flyer.pdf ).
                 The Department of Veterans Affairs (VA), in collaboration with the
                  Department of Defense, developed https://www.ebenefits.va.gov/. The
                  eBenefits site is a web portal that provides service members, veterans, their
                  families, and authorized caregivers with a single sign-on central access point
                  to clinical and benefits information. The site contains numerous resources
                  that may be useful to frontline staff in assisting veterans in applying for
                  various education and benefit programs. UIPL 14-16 provides additional
                  information about provisions in the National Defense Authorization Act for
                  Fiscal Year 2016 that may affect the UI eligibility of individuals receiving VA
                  administered post 9-11 education assistance.
                 The Department sponsors www.mynextmove.org and
                  www.mynextmove.org/vets. These online interactive tools help job seekers
                  and students to learn more about their career options. My Next Move has
                  tasks, skills, salary information, education requirements, and more for over
                  900 different careers. My Next Move for Veterans provides the same
                  information as My Next Move but also includes specialized tools for veterans.
                  These online tools are valuable resources that can help inform and guide
                  education and career choices.

5. Financial Aid and Flexibility for Unemployed Workers. As described in further detail in
   TEN No. 11-09, unemployed workers have two opportunities to benefit from the flexibility
   built into the Federal financial aid process.

          In 2009, the FAFSA, a common application used across several Federal aid programs,
           introduced a question to identify dislocated workers who may qualify for a reduced
           family contribution. The FAFSA continues to include this question and the FAFSA
           definition of dislocated worker aligns closely with the WIOA definition of dislocated
           worker.

           The FAFSA online help page available at https://fafsa.ed.gov/help.htm provides the
           following information for the dislocated worker question (question 102 on the paper
           FAFSA):


               In general, a person may be considered a dislocated worker if he or she:
                      is receiving unemployment benefits due to being laid off or losing a job
                       and is unlikely to return to a previous occupation;
                      has been laid off or received a lay-off notice from a job;
                      was self-employed but is now unemployed due to economic conditions or
                       natural disaster;
                      is the spouse of an active duty member of the Armed Forces and has
                       experienced a loss of employment because of relocating due to permanent
                       change in duty station;
                      is the spouse of an active duty member of the Armed Forces and is
                       unemployed or underemployed, and is experiencing difficulty in obtaining
                       or upgrading employment; or
                      is a displaced homemaker. A displaced homemaker is generally a person
                       who previously provided unpaid services to the family (for example: a
                       stay-at-home mom or dad), is no longer supported by the spouse, is
                       unemployed or underemployed, and is having trouble finding or
                       upgrading employment.
               Except for the spouse of an active duty member of the Armed Forces, if a person
               quits work, generally he or she is not considered a dislocated worker even if, for
               example, the person is receiving unemployment benefits.

          For unemployed workers whose income level or unemployment status does not
           qualify them for an adjustment to their expected family contribution under the
           FAFSA, financial aid officers, as authorized by section 479A of the Higher Education
           Act, are able to use their “professional judgment” to adjust the applicant’s expected
           family contribution or the cost of attendance based on special circumstances, such as
           becoming unemployed and claiming UI benefits. Use of professional judgment is at
           the discretion of the financial aid officer and varies by institution. To seek an
           adjustment under this professional judgment authority, individuals must first
           accurately complete the FAFSA application, indicating income for the base year.
           After the application has been reviewed, the individual may appeal for professional
           judgment using the educational institution’s appeal process.

6. Training Policies that Support Greater Enrollment Intensity and Continuity within
   Postsecondary Education and Training Programs. Successful completion of
   postsecondary education/training is related to both enrollment intensity (full-time or part-
   time) and the continuity, or consecutiveness, of attendance. Section 3304(a)(8), FUTA,
   requires that state law include, as a condition of employers in the state receiving credit
   against the Federal unemployment tax, that:

           Compensation shall not be denied to an individual for any week because he is in
           training with the approval of the State agency (or because of the application to any
           such week in training, of State law provisions relating to available for work, active
           search for work, or refusal to accept work);


   This provision was added to Federal law to ensure that certain state UI eligibility criteria,
   such as a requirement that a claimant actively seek work, are not an impediment to the
   individual improving his or her prospects of employment by participating in training. All
   state laws contain provisions implementing this FUTA requirement. TEGL No. 21-08 and
   TEGL No. 2-09 strongly encouraged states to revisit and expand their training policies to
   respond to economic conditions. States are again strongly encouraged to review their UI
   training policies and consider expanding approved training to include longer term education
   and training. The Department notes that increased access to longer-term training and
   education is valuable to employers who face challenges in getting workers with the skills they
   need in a tight job market and to the economy broadly.

   TEGL No. 2-09 identifies several recommended policies regarding payment of UI during
   approved training. Given the increasing number of occupations for which a post-secondary
   certificate or degree is essential, states should consider implementing policies that support
   such programs on a permanent basis. These policies include, but are not limited to:

          Post-Secondary Education. In many cases, programs in community colleges and
           other post-secondary institutions are specifically designed to lead to occupations in
           fields such as criminal justice, health care, information technology, and numerous
           others. Similarly, many four-year programs may lead to a degree that qualifies the
           individual for specific occupations, such as teaching or nursing. Some states have a
           policy of not approving certain postsecondary education programs even when they
           lead to a specific occupation. The Department encourages states to consider approval
           of such programs. Additionally, states are encouraged to include flexibility within
           their approval policies to allow, under certain circumstances, the approval of
           academic courses leading to a degree or certificate that may not lead to specific
           occupations. These approvals should be made on an individual basis and generally
           only where the completion of the degree or certificate is expected to increase the
           individual’s opportunities for reemployment.

          Limits for Completing Training. In some states, approval of training is limited to
           courses that can be completed within a relatively short period of time, such as 12
           months. Given that many certificate and degree programs require a minimum of two
           to four years for completion, such limitations can prevent approval of a significant
           number of valuable educational and other training opportunities that lead to good
           jobs. The Department recommends that any such time limitation be lengthened.
           Specifically, state policy should provide for approval if, at a minimum, the individual
           expects to complete training or a degree or certificate course within two years.

7. Action Requested. State Workforce Agencies, State and Local Workforce Development
   Boards, and AJCs are encouraged to examine their service delivery strategies for UI
   beneficiaries and other unemployed workers and make adjustments where necessary to ensure
   that these customers receive appropriate application assistance for training and education
   resources. States are also encouraged to explore UI eligible training/education program


   polices that help support longer-term training and education programs that position these
   individuals for high-quality jobs.

8. Inquiries. All inquiries should be directed to the appropriate regional office.