On-the-job training grant restriction exemptions

Accessible letter PDF: https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEGL/2013/TEGL_16_12_Acc.pdf

CLASSIFICATION
   EMPLOYMENT AND TRAINING ADMINISTRATION                On the Job Training
               ADVISORY SYSTEM                           CORRESPONDENCE SYMBOL
          U.S. DEPARTMENT OF LABOR                       OWI
             Washington, D.C. 20210                      DATE
                                                          March 7, 2013

ADVISORY:       TRAINING AND EMPLOYMENT GUIDANCE LETTER NO. 16-12

TO:             STATE WORKFORCE AGENCIES
                STATE WORKFORCE ADMINISTRATORS
                STATE WORKFORCE LIAISONS
                STATE AND LOCAL WORKFORCE BOARD CHAIRS AND DIRECTORS
                STATE LABOR COMMISSIONERS

FROM:           JANE OATES /s/
                Assistant Secretary

SUBJECT:        On-the-Job Training and National Emergency Grants (OJT NEGs) Funded with
                Workforce Investment Act Dislocated Worker Reserve Funds

1. Purpose. Through this guidance, the Department of Labor is providing instruction on how
   states can apply for exemptions to restrictions prohibiting the use of OJT NEG funds on
   activities related to casinos or other gambling establishments, swimming pools, aquariums,
   zoos, and golf courses. In addition, this guidance provides updated hourly State Wage Cap
   data. Updated Unemployment Insurance (UI) Duration figures for OJT NEGs are not
   included in this TEGL, but are updated quarterly on doleta.gov.

2. References.
   • Training and Employment Guidance Letter (TEGL) No. 4-10 (August 6, 2010), On-the-
      Job Training National Emergency Grants (OJT NEGs) Funded with American Recovery
      and Reinvestment Act of 2009 Resources
   • Training and Employment Notice (TEN) 38‐09 (August 6, 2010), American Recovery
      and Reinvestment Act of 2009 On‐the‐Job Training National Emergency Grants
   • The American Recovery and Reinvestment Act of 2009 (P.L. 111‐5)
   • Workforce Investment Act (WIA), sections 173 and 189(i) (29 U.S.C. 2918)
   • WIA regulations at 20 CFR Part 661, 663 and 671
   • TEGL No. 16‐03, Changes 1‐5, (January 26, 2004; Changes Issued on August 18, 2004;
      May 4, 2005; October 14, 2005; July 13, 2006; April 27, 2007), National Emergency
      Grant Policy Guidance
   • TEGL No. 17‐05 (February 17, 2006), Common Measures Policy for the Employment
      and Training Administration’s (ETA) Performance Accountability System and Related
      Performance Issues
   • TEGL No. 19‐08 (April 30, 2009), National Emergency Grants Funded with American
      Recovery and Reinvestment Act of 2009 Resources


 RESCISSIONS                                            EXPIRATION DATE
 None                                                   Continuing

3. Background. On June 25, 2010, former Secretary of Labor Hilda Solis announced the
   award of $75 million to 41 states, three federally recognized Tribes, and the District of
   Columbia to provide prolonged unemployed dislocated workers with on-the-job training
   (OJT) opportunities funded through the American Recovery and Reinvestment Act of 2009
   (ARRA). The initial period of performance for these grants was June 30, 2010 through
   June 30, 2012, however, the period of performance was extended for 14 of the grantees to
   September 30, 2012 to allow states to more fully expend funds. All ARRA funded OJT
   NEGs have expired.

   On June 30, 2012, 14 states (CA, CO, FL, ID, MA, MI, MO, MT, NH, NM, NY, PA, WA,
   and WI), received $26,767,549 in Workforce Investment Act Dislocated Worker Reserve
   funds to continue OJT NEG activities. The period of performance for these funds is June 30,
   2012 to June 30, 2014, with the exception of Florida, which requested a period of
   performance to June 30, 2013.

   In light of the new funding stream for OJT NEGs, states can apply for exemptions to ARRA-
   based restrictions prohibiting the use of OJT NEG funds on activities related to casinos or
   other gambling establishments, swimming pools, aquariums, zoos or golf courses. In
   addition, the State Wage Cap chart has been updated to reflect the most current data. All
   other ARRA regulations and policies remain unchanged.

4. ARRA-based restrictions prohibiting the use of OJT NEG funds on activities related to
   golf courses, casinos, swimming pools. ETA is providing the following instructions for
   states to request an exemption to the restriction on OJT NEG grants being used to create OJT
   positions with the following employers: casinos or other gambling establishments, swimming
   pools, aquariums, zoos, golf courses. In order to qualify for an exemption, states must
   submit a written narrative to the national grant officer detailing the following:

   •   How expanding the employer type will increase employer participation in OJT NEGS.
       Include the projected number of employers who would be eligible to participate in OJT
       NEG activities if this restriction is lifted.

   •   How expanding the employer type will increase participant numbers. Include the
       estimated number of participants that would enroll/benefit in the state if this restriction is
       lifted.

   •   The number of available jobs statewide that are located in casinos or other gambling
       establishments, swimming pools, aquariums, zoos or golf courses that are high wage,
       non-seasonal, and permanent.

5. State Wage Cap. Training reimbursement for OJT NEGs is restricted by the wage cap
   policy detailed in TEGL No. 4-10. States’ average hourly wage rates are provided by the
   Bureau of Labor Statistics in the Quarterly Census of Employment and Wages and are
   documented in TEGL No. 4-10 and on the Department’s Employment and Training
   Administration website (www.doleta.gov/). Current OJT NEG average hourly wage rates are
   based on annual data for 2009. This information has been updated with 2011 average hourly


   wage rates; effective immediately, the hourly wage caps for the 14 states with current OJT
   NEG programs is as follows:

                      2011 average hourly rates across all occupations
               State                        Average Hourly Rate
               California                   24.96
               Colorado                     22.84
               Florida                      19.59
               Idaho                        18.52
               Massachusetts                26.32
               Michigan                     21.01
               Missouri                     19.47
               Montana                      17.71
               New Hampshire                21.74
               New Mexico                   19.61
               New York                     25.39
               Pennsylvania                 21.19
               Washington                   24.17
               Wisconsin                    19.92

6. Action Requested. Please distribute this information to all appropriate state and local
   officials, including local workforce investment board chairs, administrative entities, chief
   elected officials, and American Job Centers.

7. Inquiries. Questions regarding program and policy issues for OJT NEGs should be
   addressed to the appropriate ETA regional office.