Wagner-Peyser funds for intensive services

Accessible letter PDF: https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEGL/2013/TEGL_11-12_Acc.pdf

CLASSIFICATION
   EMPLOYMENT AND TRAINING ADMINISTRATION                   Workforce System
               ADVISORY SYSTEM                            CORRESPONDENCE SYMBOL
          U.S. DEPARTMENT OF LABOR                        OWI
             Washington, D.C. 20210                       DATE
                                                           January 3, 2013

ADVISORY: TRAINING AND EMPLOYMENT GUIDANCE LETTER NO. 11-12

TO:           STATE WORKFORCE AGENCIES
              STATE WORKFORCE ADMINISTRATORS
              STATE WORKFORCE LIAISONS
              STATE AND LOCAL WORKFORCE INVESTMENT BOARD DIRECTORS
              COMPREHENSIVE AND AFFILIATE AMERICAN JOB CENTER
              DIRECTORS
              AMERICAN JOB CENTERS

FROM:         JANE OATES /s/
              Assistant Secretary

SUBJECT:      Using Funds Authorized Under Section 7(a) of the Wagner-Peyser Act of 1933
              for Intensive Services as Defined by the Workforce Investment Act

1. Purpose. This guidance is a reminder that funds authorized under section 7(a) of the
   Wagner-Peyser Act must be used to provide core services (as defined in section 134(d)(2) of
   the Workforce Investment Act of 1998 (WIA) (codified at 29 USC § 2864(d)(2)) and 20 CFR
   662.240) and may be used to provide intensive services (as defined in section 134(d)(3)(C) of
   the WIA (codified at 29 USC § 2864(d)(3)(C)) and 20 CFR 663.200.) This issuance also
   provides guidance to states to ensure that this flexibility does not compromise the purpose of
   the Wagner-Peyser Act. i

2. Background. The Wagner-Peyser Act of 1933 established a nationwide system of public
   employment offices, known as the Employment Service. The Wagner-Peyser Act was
   amended in 1998 in Title III of WIA. In amending the Wagner-Peyser Act in Title III of
   WIA, Congress intended to encourage coordination in the planning and delivery of Wagner-
   Peyser Act and WIA Title I services, while retaining state agency administration of a
   separate Wagner-Peyser Act program and funding stream for the delivery of services through
   One-Stop Career Centers, also known as American Job Centers. As part of the American Job
   Center network, the Employment Service provides universal access to labor exchange
   services including job search assistance, job referral, and placement assistance for job


 RESCISSIONS                                             EXPIRATION DATE
 None                                                    Continuing


   seekers, re-employment services to unemployment insurance claimants, and recruitment
   services to employers with job openings. The Wagner-Peyser Employment Service is also an
   integral part of the public workforce system, providing workers, job seekers and businesses
   access to WIA funded services and referrals to services available through One-Stop Career
   Center partners.

   During 2011, the Wagner-Peyser Employment Service provided nearly 22 million
   individuals with access to labor exchange opportunities and assisted almost 7.5 million
   individuals to enter employment. Demand for employment services is likely to remain high
   through 2013. Simultaneously, states are facing budget cuts that require them to enhance
   efficiencies through program and policy alignment. This guidance is intended to serve as a
   reminder of states’ flexibility to use funds authorized by section 7(a) of the Wagner-Peyser
   Act to provide intensive services as defined by WIA, in addition to providing required
   services that comprise the basic labor exchange system. This flexibility is intended to
   support service delivery alignment and eliminate potential redundancies while upholding the
   scope and purpose of the Wagner-Peyser Act.

3. Overview of Relevant Statute and Regulations. States must consider the relevant statute
   and regulations to maintain the integrity of the Wagner-Peyser Employment Service. This
   section provides a synopsis of the statute and regulations to which states must conform.

   How can funds authorized by Section 7(a) of the Wagner-Peyser Act be used? Section
   7(a) of the Wagner-Peyser Act (codified at 29 USC § 49f) authorizes states to use 90 percent
   of funds for labor exchange services such as job search and placement services to job
   seekers; appropriate recruitment services for employers; program evaluation; developing and
   providing labor market and occupational information; developing management information
   systems; and administering the work test for unemployment insurance claimants. ii As part of
   the services provided, states must maintain, at a minimum, a basic labor exchange system,
   which, according to the regulation, iii has the capacity to:

       (a) Assist jobseekers in finding employment;
       (b) Assist employers in filling jobs;
       (c) Facilitate the match between jobseekers and employers;
       (d) Participate in a system for clearing labor between the states, including the use of
           standardized classification systems issued by the Secretary, under section 15 of the
           Act; and
       (e) Meet the work test requirements of the state unemployment compensation system.

   Beyond the basic labor exchange functions described above, this guidance is a reminder that
   states have discretion to use funds authorized by section 7(a) of Wagner-Peyser Act to
   provide intensive services consistent with the needs of job seekers and businesses in the local
   labor market. Specifically, funds authorized by section 7(a) of the Wagner-Peyser Act must
   be used to provide core services iv and may be used to provide intensive services. v,vi This
   means that, in accordance with 20 CFR 652.206, states have the flexibility to use a portion of
   funds authorized under section 7(a) of the Wagner-Peyser to fund WIA intensive services
   defined in section 134(d)(3)(C) of WIA and discussed at 20 CFR 663.200. Specifically,


   states may use Wagner-Peyser 7(a) funds to provide intensive services, including those
   enumerated in section 134(d)(3)(C) of WIA (i.e. comprehensive and specialized assessments,
   development of an individual employment plan, group and individual counseling, case
   management for participants seeking training services, and short-term prevocational services)
   and to provide other intensive services, as stated in 20 CFR 663.200 (i.e. literacy activities
   related to basic workforce readiness, relocation assistance, internships, and work experience
   may be provided, based on an assessment or individual employment plan.)

   The regulations require that core and intensive services be provided consistent with the
   requirements of the Wagner-Peyser Act, meaning that the services are provided: (1)
   consistent with the needs of job seekers and employers; (2) in accordance with a local
   Memorandum of Understanding; vii and (3) ensuring universal access and maintaining the
   basic labor exchange system described above.

   Must core and intensive services funded by the Wagner-Peyser Act be provided by
   merit staff? States should be aware that this guidance does not change the requirement that
   state merit staff employees deliver labor exchange services provided under the Wagner-
   Peyser Act. viii Under the longstanding practice of the Department of Labor, Employment
   Services that are not performed by state merit staff cannot be charged to the Wagner-Peyser
   Act grant. Therefore, core and intensive services funded under the Wagner-Peyser Act must
   be performed by state merit staff. ix

   In order to more fully align service delivery, states may elect to allow American Job Center
   operators to provide guidance to state merit staff employees regarding the provision of labor
   exchange services in accordance with the Wagner-Peyser Act. x As part of the local
   Memorandum of Understanding, the state agency, as a required One-Stop partner, may agree
   to have staff receive guidance from the American Job Center operator regarding the
   provision of labor exchange services. The guidance given to employees must be consistent
   with the provisions of the Wagner-Peyser Act, the local Memorandum of Understanding, and
   applicable collective bargaining agreements. Personnel matters, including compensation,
   personnel actions, terms and conditions of employment, performance appraisals, and
   accountability of state merit staff employees funded under the Wagner-Peyser Act, remain
   under the authority of the state agency.

   Who makes the decisions about funding for core and intensive services? The state
   agency retains responsibility for all funds authorized under the Wagner-Peyser Act, including
   those funds authorized under section 7(a) required for providing the services and activities
   delivered as part of the American Job Center network. xi

   May states provide training under Section 7(a) of the Wagner-Peyser Act? Funds
   authorized under section 7(a) of the Wagner-Peyser Act may not be used for training as
   defined at section 134(d)(4)(D) of WIA.

4. Guidance for Aligning WIA and Wagner-Peyser Funded Intensive Services. The
   Department of Labor (the Department) supports states’ efforts to align employment and
   training programs and braid various funding sources to enhance integration and streamline


       service delivery. The Department is committed to promoting and encouraging the seamless
       delivery of services to employers and job seekers by designing the operational structure to
       integrate similar services across funding streams, reduce duplication, and ensure that job
       seekers have access to the full range of employment and training services for which they may
       be eligible. When deciding on whether to use Wagner-Peyser section 7(a) funds for intensive
       services, states must ensure that the services rendered are consistent with the needs of job
       seekers and employers. There are many circumstances where this flexibility will help to
       enhance integration and streamline service delivery.

       In states that have full functional alignment between Wagner-Peyser-funded and WIA-
       funded staff in the American Job Centers, the use of Wagner-Peyser section 7(a) funds for
       WIA intensive services allows states to remove artificial service delivery barriers that result
       in participants being “handed off” to the WIA staff for intensive services. Participants would
       be able to access the same array of core and intensive services from Wagner-Peyser-funded
       and WIA-funded staff in the American Job Center. Many states have already moved toward
       a functional alignment of Wagner-Peyser, WIA, Trade Adjustment Act, and, in some cases,
       Unemployment Insurance, Supplemental Nutrition Assistance Program (SNAP) Employment
       and Training, and Temporary Assistance for Needy Families (TANF.) In a functionally
       aligned system, services are supervised and managed according to the functions performed,
       rather than based on the organizational affiliations of the staff assigned to perform the
       functions and the funding streams used to pay for services.

       In states where the large number of job seekers who are in need of training exceeds the WIA
       training funds available, a local workforce investment board, in conjunction with the
       American Job Center operator and the Wagner-Peyser partner, could enter into a
       Memorandum of Understanding that provides for the provision of intensive services by
       Wagner-Peyser-funded staff. This would free up a greater portion of WIA funds for
       training.

       There may be other circumstances where this flexibility will help to enhance integration and
       streamline service delivery; states should contact their Employment and Training
       Administration (ETA) regional office point of contact to discuss potential service delivery
       strategies using Wagner-Peyser funds.

       Given limited resources, a state’s decision to use Wagner-Peyser section 7(a) funds for
       intensive services should support alignment efforts and improve services to job seekers and
       businesses; however, this goal must be balanced with the requirement to fulfill the core
       mission of the Wagner-Peyser Act to provide universal access to basic labor exchange
       services. To maintain this balance, states must adhere to all statutory and regulatory
       requirements when considering the use of Wagner-Peyser Act funds.

5. Inquiries. Please direct all inquiries to the appropriate ETA regional office.

i
    Please see 20 CFR 652.2 for full regulatory text.


ii
     The Wagner-Peyser Act also authorizes states to use ten percent of funds for (1) performance incentives; (2)
services for groups with special needs; and (3) the extra costs of exemplary models for delivering labor exchange
services. This guidance does not address section 7(b) or (c) of the Wagner-Peyser Act.
iii
    Please see 20 CFR 652.3 for full regulatory text.
iv
    Defined at Workforce Investment Act of 1998, section 134(d)(2) and 20 CFR 662.240.
v
    Defined at Workforce Investment Act of 1998, section 134(d)(3)(C) and 20 CFR 663.200.
vi
    Please see 20 CFR 652.206 May a State use funds authorized under the Act to provide “core services” and
“intensive services” as defined in WIA? for applicable regulatory text.
vii
     Please see 20 CFR 652.201(b)(2) and 20 CFR 662.300 for applicable regulatory text.
viii
     Please see 20 CFR 652.215 for applicable regulatory text.
ix
    Three states have received an exemption from the Employment Service merit staffing requirements under the
Wagner-Peyser Act. Those three states are Colorado, Massachusetts, and Michigan.
x
    Please see 20 CFR 652.216 for applicable regulatory text.
xi
    Please see 20 CFR 652.203 for applicable regulatory text.