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WIA and Wagner-Peyser funds administration flexibility
Summary ETA explained administrative flexibility available to state and local Workforce Investment Act Title I and Wagner-Peyser programs, including waiver-related options and grant fund management. It attached a table of waiver decisions. ETA now labels the advisory Canceled.
Document
Federal guidance
Agency
U.S. Department of Labor, Employment and Training Administration (ETA)
Document number
TEGL No. 27-12
Date issued
May 10, 2013
Status
Withdrawn
ETA lists this advisory Canceled as of 2026-10-24; its PDF prints Expiration Date: Continuing and Rescissions: None. No cancellation instrument is identified.
Status last verified October 24, 2026
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Accessible letter PDF: https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEGL/2013/TEGL_27_12_Acc.pdf
CLASSIFICATION
EMPLOYMENT AND TRAINING ADMINISTRATION WIA/W-P
ADVISORY SYSTEM CORRESPONDENCE SYMBOL
U.S. DEPARTMENT OF LABOR OWI
Washington, D.C. 20210 DATE
May 10, 2013
ADVISORY: TRAINING AND EMPLOYMENT GUIDANCE LETTER NO. 27-12
TO: STATE WORKFORCE AGENCIES
STATE WORKFORCE LIAISONS
STATE WORKFORCE ADMINISTRATORS
STATE AND LOCAL WORKFORCE BOARD CHAIRS AND DIRECTORS
STATE LABOR COMMISSIONERS
FROM: JANE OATES /s/
Assistant Secretary
SUBJECT: Funds Administration Flexibility for Workforce Investment Act of 1998 (WIA)
Title I and Wagner-Peyser Act of 1933 (W-P Act) Funds
1. Purpose. The purpose of this Training and Employment Guidance Letter (TEGL) is to
articulate flexibility available for WIA Title I and W-P Act programs that may be helpful for
managing Program Year (PY) 2013 sequestration and rescission-related formula funding
reductions.
2. References.
• TEGL No. 25-12, Workforce Investment Act (WIA) Adult, Dislocated Worker and
Youth Activities Program Allotments for Program Year (PY) 2013; Final PY 2013
Allotments for the Wagner-Peyser Act Employment Service Program Allotments; and
Workforce Information Grants to States Allotments for PY 2013
• TEGL No. 26-09, Workforce Investment Act (WIA) Waiver Policy and Waiver
Decisions for PY 2009 and 2010 and the Related Change 1
• TEGL No. 11-12, Using Funds Authorized Under Section 7(a) of the Wagner-Peyser Act
of 1933 for Intensive Services as Defined by the Workforce Investment Act
• TEGL 10-09, Implementing Priority of Service for Veterans and Eligible Spouses in all
Qualified Job Training Programs Funded in whole or in part by the U.S. Department of
Labor (DOL)
• Training and Employment Notice (TEN) No. 27-12, Fiscal Year (FY) 2013 Projected
Allotments
• TEN No. 31-11, The Rapid Response Framework
• TEN No. 32-11, Rapid Response Self-Assessment Tool
• TEN No. 09-12, Layoff Aversion in Rapid Response Systems
• Full-Year Continuing Appropriations Act, 2013, Title I of Division F, and Division G of
the Consolidated and Further Continuing Appropriations Act, 2013, Pub. L. 113-6
• Department of Labor Appropriations Act, 2012, Division F of the Consolidated
Appropriation Act, 2012, Pub. L. 112-74
RESCISSIONS EXPIRATION DATE
None Continuing
• Balanced Budget and Emergency Deficit Control Act of 1985 (BBEDCA), Pub. L. 99-
177, as amended by the Budget Control Act of 2011, Pub. L. 112-25
• Workforce Investment Act of 1998, as amended (29 U.S.C 2801, et seq.)
• Workforce Investment Act of 1998 regulations, 20 CFR Parts 660 through 667, and 671.
• Wagner-Peyser Act, as amended (29 U.S.C. 49, et seq.);
• Wagner-Peyser Regulations, 20 CFR Part 652
• The Jobs for Veterans Act (JVA) of 2002, Pub.L 107-288, Section 2(a) (38 U.S.C.
4215).
• ETA Workforce Investment Act Waiver Database, Accessed June 13, 2012,
www.waivers.doleta.gov
3. Background. TEGL No. 25-12, Workforce Investment Act (WIA) Adult, Dislocated Worker
and Youth Activities Program Allotments for Program Year (PY) 2013; Final PY 2013
Allotments for the Wagner-Peyser Act Employment Service Program Allotments; and
Workforce Information Grants to States Allotments for PY 2013, announced the state
allotments for PY 2013 for the WIA Title I and W-P programs. As discussed in that TEGL,
the allotments reflect funds appropriated in Title I of Division F of the Consolidated and
Further Continuing Appropriations Act, 2013, Pub. L. 113-6, signed into law March 26,
2013. This Act incorporated a mandatory across the board (ATB) rescission of 0.2 percent
impacting all Federal FY 2013 discretionary funding (including both the FY 2013 “advance”
funding made available on October 1, 2012 and the PY 2013 “base” appropriation available
on July 1, 2013). Additionally, all FY 2013 discretionary program funding is subject to the
sequestration order required by Section 251A of the Balanced Budget and Emergency Deficit
Control Act, as amended. Both the rescission and sequestration reductions impact the PY
2013 funding for the WIA and W-P Act programs.
Funding reductions will be applied during the final quarter of Fiscal Year 2013, which is the
first quarter of PY 2013, July 1 through September 30, 2013. Many states and local
workforce investment areas (LWIAs) will be significantly affected. The Employment and
Training Administration (ETA) has received a number of questions from system stakeholders
about what flexibility states and LWIAs may have to manage the effects of the funding cuts
and mitigate their negative consequences. This TEGL seeks to respond to these questions in
a Question-and-Answer (Q &A) format by clarifying existing flexibility or flexibility
available through waivers.
4. Funds Administration Flexibility. This section provides information by topical area on
existing flexibility and flexibility states may acquire through an approved waiver. ETA’s
waiver authority and process are prescribed by WIA and its regulations (Section 189(i)(4)
and 20 CFR 661.420-430). This waiver authority does not provide ETA flexibility to grant
blanket waivers to states, and states must follow the process required by law. Many states
have taken advantage of the flexibility afforded by waivers. States should: 1) examine
waivers that the state already has in place and ensure they are being communicated to local
areas and fully utilized, 2) examine other waivers ETA has approved, and 3) consider
whether any additional waivers may be useful. See Section 7 of this TEGL for more
information on WIA waiver authority, the waiver application process, ETA’s waiver policy,
and other relevant details. For reference, a Table of Waiver Decisions is attached to this
TEGL. The table includes all recent waiver policies, some of which offer funding flexibility
and are discussed below.
A. Governor’s Reserve for Statewide Activities
i. What flexibility exists within the law for the Governor’s reserve? WIA Sections
128(a) and 133(a) allow a Governor to reserve up to 15 percent of WIA Youth, Adult,
and Dislocated Worker allotments for required and allowable statewide activities and
for administration. However, DOL’s FY13 appropriation provides that a maximum
of five percent of a state’s PY 2013 allotment may be reserved from these funding
streams for those purposes. For many states, the full five percent is necessary to
conduct required statewide activities. However, the Governor maintains the
flexibility to reserve less than the full five percent and doing so could enable the state
to direct more funds to LWIAs.
A state may wait and take all of its administrative and statewide activities reserve
funds from the FY 2014 advance allotments as long as the total amount does not
exceed five percent of the state’s entire allotment – i.e. the sum of the base (PY 2013)
and advance (FY 2014) allotments. While the law allows for the pooling of the funds
reserved for these purposes from the separate funding streams, costs incurred prior to
the October 1 federal obligation of FY 2014 funds cannot be paid using FY 2014
funds. The state must use PY 2013 base funding, and/or carry over from previous
years to cover obligations and expenditures incurred from July 1 through September
30, 2013, since WIA funds have a three year period of expenditure once obligated to
the states.
ii. Are waivers available related to statewide activities? Yes. Due to the ongoing
reduction in the Governor’s reserve funds, ETA realizes that some states may be
unable to conduct all required activities due to a lack of funding. As a temporary
measure, and in order to help states prioritize the activities that are more essential to
the functioning of their workforce systems, states may request waivers to exempt
them from the requirements to carry out some of the required statewide activities
described at 20 CFR 665.200(b)-(i) that would have been possible without the
reduction in PY 2013 funds.
ETA will review and consider waiver requests on a case-by-case basis and in the
context of each state’s unique circumstances. Waiver requests must meet the
requirements of 20 CFR 661.420(c). These requests also must include a justification
that describes estimated costs to carry out the required activity for which the waiver is
needed; how statewide funds are being used (for both required and allowable
statewide activities); how funds are being prioritized across activities; and the extent
to which the funding levels are insufficient to cover the activity for which a waiver is
requested. The request must also address the anticipated impact of not funding the
activity, and whether it may directly affect WIA participant services. For states that
were approved for statewide waivers in PY 2012, a request to extend them for PY
2013 may be submitted rather than a full waiver plan. Some states’ PY 2012
statewide waiver requests were not approved. Sequestration may result in a change in
the state’s circumstances. A state may choose to resubmit these waiver requests.
Requests will be reviewed again in the context of the state’s current funding levels
and required financial documentation.
ETA is unlikely to approve a waiver of the following activities that are central to state
management of funds:
• operating fiscal and management accountability information systems (WIA
Section 134(a)(2)(B)(vi) and 20 CFR 665.200(i));
• submitting required reports (WIA Section 136(f));
• disseminating the list of eligible training providers for adults and dislocated
workers (WIA Section 134(a)(2)(B)(i) and 20 CFR 665.200(b)(1)), and youth
activities (20 CFR 665.200(b)(4)); and
• providing technical assistance to poor performing LWIAs (WIA Section
134(a)(2)(B)(iv) and 20 CFR 665.200(f)).
Also note that in PY 2011 and 2012, ETA approved waivers of 20 CFR 665.200(b)(3)
to exempt the state from the requirement to disseminate training provider
performance and cost information (WIA Section 122). In weighing the relatively low
costs associated with dissemination against the benefit of sharing training provider
information with customers, ETA has decided to discontinue approval of this waiver
in PY 2013. This waiver will remain in effect until June 30, 2013 for states that are
currently granted approval.
B. Rapid Response Activities
i. Do states have flexibility in determining the percentage of WIA Dislocated Worker
funds that are reserved for Rapid Response activities? Yes. As long as they are
meeting the requirements for Rapid Response under the WIA, and as provided in 20
CFR 665.310, states have the discretion to reserve up to 25 percent of their annual
formula Dislocated Worker allotment for Rapid Response activities (see WIA Section
133(a)(2)). Many states currently reserve less than 25 percent based on their needs
each year. Funds not reserved for Rapid Response activities remain part of the state’s
annual formula Dislocated Worker allotment and must be allocated to all local areas
based on the state’s dislocated worker allocation methodology.
In addition, states have flexibility in how they reserve the funds needed for Rapid
Response. States may reserve funds for Rapid Response from the PY 2013 base
allotment (available July 1) and the FY 2014 advance allotment (available October 1),
or they may choose to reserve no funds from the PY allotment and allow more funds
to be allocated to the LWIAs for the first three months of the PY. In this instance,
states would then reserve the full amount needed for Rapid Response services from
the FY advance allotment on October 1, 2013.
ETA encourages states to consider the needs of all programs, but also to consider the
significant flexibility in the use of the Rapid Response funds (discussed below) when
determining what level of funding to reserve at the state level for Rapid Response
activities.
ii. What flexibility exists in the services that can be provided using Rapid Response
funding? As discussed above, states may reserve up to 25 percent of their state
Dislocated Worker allotment for Rapid Response activities. Regulations at 20 CFR
665, Subpart C describe the required and allowable Rapid Response activities. These
regulations indicate that Rapid Response funds are among the most flexible available
to the workforce system. They may be used for a wide variety of employment and
training activities, to provide services to businesses, as well as to develop strategies
and carry out activities for layoff aversion. Funds also may be used to provide
additional resources to LWIAs (see Q&A iii below).
States should ensure that Rapid Response funds are adequate to support the full range
of strategies and activities that are essential for Rapid Response to be the important
resource it can be for workers, businesses, and communities. States should examine
their Rapid Response systems and focus on innovative and flexible strategies that
provide widespread benefits before they begin using Rapid Response funds for other
purposes.
Some examples of allowable and innovative strategies and activities include:
• Connecting employers and workers with short-term, customized, or other training
or apprenticeships before or after layoff to ensure appropriate skills for new
employment;
• Leveraging Short-Time Compensation (STC) (also known as workshare or shared
work) programs, where applicable, as a layoff aversion or business engagement
strategy (see UIPL 22-12 for more information on STC);
• Facilitating incumbent worker training for eligible workers based on state or local
rules, and/or providing the training with the appropriate waiver (see Q&A iv
below);
• Identifying heavily concentrated industries and sectors and related training needs
in the geographic area;
• Engaging in proactive measures, such as business visitation or layoff forecasting
programs, to identify indicators of potential economic transition and training
needs in growing industry sectors or expanding businesses;
• Conducting talent transfer events, or holding reemployment boot camps
connecting businesses in growing industries or sectors with available talent;
• Developing, implementing, maintaining, and publicizing a state or local layoff
aversion policy;
• Creating and sustaining effective partnerships with a wide range of organizations
to support allowable strategies and activities;
• Gathering data and intelligence related to economic transition trends within
industries, communities, or at specific employers, and planning strategies for
intervention; or
• Developing early warning networks and systems using data and intelligence
gathered.
States that wish to learn more about Rapid Response and the significant flexibility
allowable in the use of those funds should review past guidance on Rapid Response,
including TEGL 30-09 and TENs 31-11, 32-11, and 09-12.
iii. Can Rapid Response funds be targeted to LWIAs that need them instead of being
provided by formula? Yes, states may provide Rapid Response funds to targeted
LWIAs that evidence a need for additional funds through the mechanism of
“additional assistance.” The regulations at 20 CFR Section 665.340 provide the
context for additional assistance: once states have reserved an appropriate amount of
funding for Rapid Response activities, they are permitted to use the remainder of the
funds available for Rapid Response to provide additional assistance to LWIAs “that
experience increased numbers of unemployed individuals due to natural disasters,
plant closings, mass layoffs or other events” but for which there are not adequate
funds available at the local level.
Per 20 CFR 665.340, funds provided to LWIAs as additional assistance are intended
for “provision of direct services to participants (such as intensive, training, and other
services).” WIA allows states to determine the methodology and mechanism by
which funds are provided to LWIAs under the additional assistance category.
iv. Will waivers for other uses of Rapid Response funds be considered? Although
Rapid Response funds are extremely flexible, states may be interested in further
expanding this flexibility through the use of specific waivers. ETA may approve
waivers to use Rapid Response funds for statewide incumbent worker training,
consistent with the Attachment, as part of a layoff aversion strategy. Other waivers
that are designed to develop innovative strategies and approaches to serve dislocated
workers, or otherwise expand services to dislocated workers (including for layoff
aversion strategies and activities designed to prevent layoffs or minimize the duration
and impacts of unemployment) may be submitted for consideration. In addition to
meeting the requirements of 20 CFR 661.420(c), such waiver requests must
demonstrate that the activities: a) are not already permitted with Rapid Response
funds; b) funding levels are insufficient to cover the activity for which a waiver is
requested; and, c) will directly benefit workers and businesses in the state. ETA will
not grant a waiver to use the Rapid Response funds for administrative or non-
programmatic activities.
C. Allocation and Reallocation from State to LWIAs
i. May states adjust their local formulas for allocating Adult, Dislocated Workers,
and Youth funds? Under the provisions relating to sub-state formula allocations
under title I of WIA there is some flexibility available to states to develop and adjust
formula factors.
The most flexibility is provided under the Dislocated Worker formula, where the
entire formula is determined by the state. WIA requires that the formula include: (1)
insured unemployment data; (2) unemployment concentrations; (3) plant closing and
mass layoff data; (4) declining industries data; (5) farmer-rancher economic hardship
data, and (6) long-term unemployment data (Section 133(b((2)(B)). The WIA
implementing regulations at 20 CFR 667.130(e)(2)(ii) require that the State Plan
describe the data used for this Dislocated Worker formula and the “weights
assigned”, and the Plan must explain the state’s decision to use information other than
the six factors required by WIA. The State Plan must also describe if the state
chooses to omit any of the six information sources. Therefore, the Governor may use
other factors in addition to those specified factors, such as performance outcomes or a
threshold for percentage of funds expended on training, as long as the additional
factors are described and the decision to use them are explained in the State Plan.
The Governor may not amend the Dislocated Worker formula more than once for any
Program Year.
States have the discretion to distribute a portion of WIA Youth funds based on a
formula that includes additional factors. Specifically, up to 30 percent of the funds
may be distributed based on factors that relate to: (1) excess youth poverty; and (2)
excess unemployment above the state average (Section 128(b)(3)). (The remaining
portion (at least 70 percent) must be allocated in accordance with the formula set
forth at 20 CFR 667.130(c)(1)). Under the Adult formula, there is similar authority to
distribute up to 30 percent of the funds on the basis of a formula relating to: (1)
excess poverty and (2) excess unemployment (Section 133(b)(3)). (Likewise, the
remaining portion (at least 70 percent) must be allocated in accordance with the
formula set forth at 20 CFR 667.130(d)(1)). Both of these discretionary formulas for
Youth and Adult funds must be developed by the State Workforce Investment Board
and approved by ETA as a modification of the State Plan.
States must make WIA Adult, Dislocated Worker and Youth funds available to local
areas no later than 30 days after ETA makes funds available to states, or seven days
after the date the local plan for the LWIA is approved, whichever is later (WIA
Section 182(e)). For Program Year 2013 the remaining time available for states to
adjust their local funding formulas is relatively limited. States should also consider
whether this flexibility may be helpful for future years.
ii. What flexibility exists regarding state recapture of LWIA formula funds? (A
separate question below addresses ETA recapture of state funds) WIA Sections
128(c) and 133(c) and 20 CFR 667.160, provide that the Governor may recapture
from local areas unobligated balances in excess of 20 percent of the prior year
allocation. However, states are not required to recapture such unobligated balances.
ETA encourages states to work closely with their LWIAs and use judgment in
decisions related to recapturing unobligated funds. Given the impact of the funding
cuts, states may consider providing local areas the opportunity to use unobligated
balances to alleviate the PY 2013 funding shortfalls. Should a state decide to
recapture unobligated balances, ETA does not support waivers to allow states to
recapture funds on a basis other than that prescribed by WIA.
Furthermore, 20 CFR 667.107 requires the state to recapture funds that are
unexpended by LWIAs in their second year of availability. ETA will not waive this
requirement. States may reallot such unexpended funds to any local areas that fully
expended the funds within the two-year period or the funds may be used for statewide
projects.
iii. Are waivers available for reallocation of unobligated local formula funds? ETA
will consider a waiver of the reallocation provisions at WIA Sections 128(c)(3) and
133(c)(3), and 20 CFR 667.160(c) to permit a state to reallocate recaptured
unobligated funds according to state-developed criteria. Under the waiver, a state
would have the discretion to consider additional factors in determining local area
eligibility for a reallocation of recaptured funds. States must make public their
reallocation procedure and policy, as well as any future changes to that policy.
ETA will consider reallocation waiver requests on a case-by-case basis. A state
requesting this waiver must meet the requirements of 20 CFR 661.420(c).
Additionally, the state must provide justification as to why it proposes a waiver of the
statutory requirement to reallocate recaptured funds based on the prescribed WIA
formula, and assurances that an undue burden would not be imposed on local areas.
States must propose an alternative policy for reallocation that is based on objective
criteria, and demonstrate that the alternative policy was created in a transparent
manner with adequate opportunity for comments from local boards, stakeholders, and
the public. States should describe in their request the actions that have been taken to
ensure local areas promptly obligate and expend funds within required timeframes,
and to reduce as much as possible the amount of local area funds subject to recapture.
This waiver only applies to reallocation provisions, and not to the recapture
provisions at WIA Sections 128(c)(2) and 133(c)(2), and 20 CFR 667.160.
D. Adult and Dislocated Worker Funds Transfer
i. What flexibility exists to transfer funds between local Adult and Dislocated Worker
funding streams? A local Board may transfer up to 30 percent of Adult employment
and training funds and up to 30 percent of Dislocated Worker funds for a Fiscal Year
between Adult employment and training and Dislocated Worker employment and
training activities. This same flexibility does not apply to WIA Youth funds, which
cannot be transferred to Adult or Dislocated Worker in the same manner.
ii. Is additional transfer flexibility available through a waiver? In recent years, ETA
has approved waivers of WIA Section 133(b)(4) to permit local areas to increase the
allowable transfer amount between Adult and Dislocated Worker funding streams
allocated to an LWIA to up to 50 percent. Many states already have this approved
waiver in place.
In light of the funding reductions due to the sequestration and ATB rescission, ETA
will consider state waiver requests of the transfer thresholds to up to 75 percent on a
case-by-case basis. In addition to the required information described in Section 7 of
this TEGL, states wishing to request a higher transfer level must provide evidence as
to why a 50 percent transfer is inadequate, identify the specific LWIAs for which the
higher level of funding is needed, and provide supporting financial documentation.
E. Wagner-Peyser
i. What is the allowable flexibility under Wagner-Peyser 7(a) funds?
In accordance with 20 CFR 652.206, funds authorized for activities under Section
7(a) of the Wagner-Peyser Act must be used to provide core services. After the State
has reserved enough funds for the provision of core services, states have discretion to
use those funds to provide intensive services (as defined in WIA Section 134(d)(3)(C)
and discussed at 20 CFR 663.200) consistent with the needs of job seekers and
businesses in the local labor market. As addressed in TEGL No. 11-12, these
intensive services include 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. As stated in 20 CFR 663.200, states may also provide literacy activities
related to basic workforce readiness, relocation assistance, internships, and work
experience may be provided, based on an assessment or individual employment plan.
F. Timing of State Oversight Activities
i. Do states have flexibility to postpone required administrative activities? States
should review schedules for statewide administrative, oversight and monitoring
activities and, working within statutory and regulatory requirements, make any
necessary adjustments to reflect reduced funding availability during the first quarter
of PY 2013. For example, on-site monitoring that would have taken place in the first
quarter of the Program Year may be postponed to another quarter as long as it takes
place within that Program Year.
6. Areas Where Flexibility is Not Available. ETA received some questions regarding funds
flexibility in areas where it is not available in statute or through a waiver. This section
addresses those questions.
A. Prohibited Allotment and Allocation Practices:
i. Will ETA waive the requirement that the Secretary reallot to eligible states
unobligated balances of state allotments that exceed 20 percent of allotments for
the prior program year? No. ETA recognizes that states may wish to slow spending
and to increase carry-over in the first quarter of PY 2013. However, ETA does not
believe WIA provides flexibility to the Secretary to not follow the reallotment
requirements.
ii. If state general funds or other non-WIA funds are used during the first quarter of
PY 2013 to mitigate the impact of the cuts to WIA formula funds, could states
“payback” the general or other non-WIA fund source with the FY Advance
(October ) WIA funds? No. The funds in the advance portion of the PY 2013 state
allotments are actually FY 2014 funds. Therefore, the advance funds are available for
expenditure beginning October 1, 2013. States would not be able to use the FY
advance (October 1) funds for obligations or expenditures incurred prior to October 1,
2013 - even if drawn down after October 1 - because the funds were not available at
the time the expenditures were incurred. Under appropriation law, funds generally
cannot be used before they are available for Federal obligation. Therefore, states
must use the advance portion of their allotment for obligations and expenditures
occurring on or after October 1, 2013. For obligations and expenditures incurred
prior to October 1, 2013, states may use PY 2013 base funding and/or carry over from
previous years.
iii. Do states have to allocate the first quarter funds to LWIAs based on formula, or
can they allocate the first quarter funds based on need, then adjust the October
allocations to bring the total year funding into alignment with the formula? States
may not allocate the first quarter funds based on need and then adjust the October
allocations. WIA Section 182(e) specifies that a Governor must allocate formula
funds to the state’s LWIAs no later than 30 days after the date the state receives an
allotment. Local area formula allocations are also outside of the WIA waiver
authority.
iv. May states move funding on a short term basis amongst each other? No. WIA and
W-P Act funding must be allotted by formula to states. States may not move funding
between states.
7. Reminders of Service Requirements. As stated in TEN No. 27-12, ETA reminds states and
local areas to be mindful of the following planning elements and activities.
• States must meet quarterly financial and performance reporting requirements in
accordance with the WIA statute and regulations;
• During periods of limited funding availability, the WIA Adult program has a statutory
requirement to provide priority for intensive and training services to recipients of public
assistance and other low-income individuals (WIA Section 134(d)(4)(E); 20 CFR
663.600);
• The Department has issued specific guidelines for applying priority of service for
veterans while also applying other statutory priorities. Priority of Service for veterans
established in the Jobs for Veterans Act and described in TEGL No. 10-09 remains an
active requirement for job training programs funded in whole or in part by the
Department of Labor. For further details regarding levels of priority of service, please
see TEGL No. 10-09;
• Requirements for Unemployment Insurance (UI) claimants to register with the state’s
Employment Service, to search for work as a condition of UI eligibility, and to provide
reemployment services to Emergency Unemployment Insurance claimants continue;
• ETA has determined that the services provided to the cohort of program exiters used for
calculating PY 2013 performance outcomes will have received services prior to
sequestration being implemented. Therefore, there should be little to no impact on PY
2013 performance outcomes. Subsequent guidance will be issued as needed to address
concerns with future performance under reduced funding levels;
• WIA requires that a minimum of 30 percent of all youth funds allocated to a local area
must be used to provide services to out-of-school youth. (WIA Section 129(c)(4)(A) and
20 CFR 664.320).
8. WIA Waiver Authority and Request Process. As discussed above, states may take
advantage of certain flexibilities available through waivers. WIA Section 189(i)(4)
authorizes the Secretary to waive certain statutory and regulatory provisions of the WIA.
WIA prohibits waivers for certain provisions, including wage and labor standards,
nondisplacement protections, worker rights, participation and protection of workers and
participants, nondiscrimination, grievance procedures and judicial review, allocation of funds
to local areas, eligibility of participants and providers, the establishment and functions of
LWIAs and Local Workforce Investment Boards, and procedures for review and approval of
Plans. In addition, that provision allows waivers of the statutory and regulatory
requirements of Sections 8-10 of the W-P Act, excluding requirements relating to services to
UI claimants and veterans, and universal access to basic labor exchange services without cost
to jobseekers.
A complete list of waiver policies is included in the Attachment – “Waiver Decisions”. States
are encouraged to refer also to TEGL 26-09, Workforce Investment Act (WIA) Waiver Policy
and Waiver Decisions for PY 2009 and 2010 and the related Change 1. While ETA intends,
in general, to approve waivers in alignment with the decisions provided in the Attachment
and discussed above, ETA will consider all requests on a case-by-case basis. The unique
circumstances in a particular state may warrant approval of a waiver request that was
previously disapproved in that state or within another state.
Waiver requests must include all of the required elements listed in the WIA regulations at 20
CFR 661.420(c) and discussed in TEGL No. 26-09, Section 9, Waiver and Work-Flex
Request Elements and Process. States may use the submission template available at
http://www.doleta.gov/waivers/pdf/waiver-template.doc, which provides a description of
each element and submittal instructions.
9. Useful Resources. Information about waivers, including the waiver request process and
waiver decisions, is available ETA’s “waiver portal” at http://www.doleta.gov/waivers.
10. Inquiries. States should address their inquiries to their ETA Regional Office.
11. Attachment. Table of Waiver Decisions.
Attachment 1: https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEGL/2013/TEGL_27_12_Att.pdf
Attachment
Waiver Decisions
Policy Decisions, Program
Waiver Name Waiver Description
Year (PY) 2012
Funds Flexibility
ETA will generally approve
waivers to allow an increase in
the transfer authority of up to
50 percent. States wishing to
request a higher transfer level
Waiver of WIA Section 133(b)(4) to (up to 75 percent) must
Adult-Dislocated increase the funds transfer limit provide evidence that a 50
Worker Transfer between the Adult and Dislocated percent transfer level is
Worker programs. inadequate, identify the
specific local areas for which
the transferred funding is
needed, and provide
supporting financial
documentation.
Waiver of WIA Section 101(8)(C) of
the requirement for a 50 percent
Customized Training- employer contribution for customized
ETA will generally approve
Employer training to permit local areas to use a
this waiver.
Contribution sliding scale to reduce the
contribution based on the size of the
business.
Waiver of WIA Section 101(31)(B)
of the 50 percent limit on
On-the-Job Training
reimbursement to employers for OJT ETA will generally approve
(OJT)- Employer
to permit local areas to use a sliding this waiver.
Reimbursement
scale to increase the reimbursement
based on the size of the business.
Policy Decisions, Program
Waiver Name Waiver Description
Year (PY) 2012
ETA will generally approve
this waiver with the following
parameters:
Local Adult and Dislocated
Worker funds may only be
used for IWT as part of
layoff aversion and are
limited to:
o Not more than 20
percent of local
Dislocated Worker
Waiver of WIA Section 134(a) to funds for IWT ;
Local Funds for o Not more than 10
permit local areas to use a portion of
Incumbent Worker percent of Dislocated
local Adult, Dislocated Worker, and
Training (IWT) as a Worker funds and 10
Youth funds for statewide activities,
Statewide Activity percent of Adult funds
specifically IWT.
for IWT, or
o Not more than 10
percent of Adult funds
for IWT
Youth funds may not be
used for IWT.
ETA will not approve
waivers to allow local WIA
funds to be used for any
other statewide activities.
Policy Decisions, Program
Waiver Name Waiver Description
Year (PY) 2012
ETA will generally approve
this waiver with the following
parameters.
Use of not more than 20
percent of Rapid Response
funds for IWT as part of
Rapid Response
Waiver of WIA Section 134(a)(1)(A) lay-off aversion only.
Funds for Incumbent
Worker Training and to permit states to use a portion of ETA will consider waiver
Other Statewide Rapid Response funds for IWT and requests to use Rapid
Activities other statewide activities. Response funds for other
statewide activities for the
purpose of innovative
training and service delivery
approaches that enhance
services to dislocated
workers.
Waiver of WIA Sections 128(c)(2) ETA will not approve waivers
and 133(c)(2), and 20 CFR 667.160 to allow states to recapture
to permit states to recapture local funds on a basis other than that
Recapture
funds midway through the year or prescribed by WIA.
recapture of unexpended funds
instead of unobligated funds.
Waiver of the reallocation provisions
at WIA Section 128(c)(3) and ETA will consider requests for
Reallocation 133(c)(3) and 20 CFR 667.160 to this waiver on a case-by-case
state to reallocate recaptured funds basis.
according to state-developed criteria.
Performance
Waiver of WIA Section
136(b)(2)(A)(i)(II) and 20 CFR
Alternative Seasonal 666.140 to permit an alternate ETA will consider this waiver
Performance Measure measure of employment retention for on a case-by-case basis.
areas of the state where the majority
of employment is seasonal.
Waiver of WIA Section 136(b) to
permit implementation of, and
ETA will generally approve
Common Measures reporting only for, the common
this waiver.
measures in lieu of the current WIA
statutory measures.
Policy Decisions, Program
Waiver Name Waiver Description
Year (PY) 2012
Waiver of WIA Section
Incentive Grants to 134(a)(2)(B)(iii) and 20 CFR ETA will consider this waiver
Local Areas 665.200(e) to exempt the state from on a case-by-case basis.
providing local incentive grants.
Waiver of WIA Section 136(c) and
Reports as a ETA will consider this waiver
136(d) to permit the state to report
Statewide Region on a case-by-case basis.
only statewide data.
Workforce
Investment Act
Waiver of regulations at 20 CFR 666
Standardized Record
and 667.300(a) to allow states to ETA will generally approve
Data (WIASRD)
discontinue collection of 7 WIASRD this waiver.
Elements for
data elements for incumbent workers.
Incumbent Worker
Training
Local Performance Waiver of regulations at 20 CFR
Waiver not needed. See TEGL
Exemption for 666.300 to exclude entrepreneurship
26-09, Change 1 for further
Entrepreneurship training from local performance
information.
Training measures.
Waiver of regulations at 20 CFR
666.100 to exempt state from
including credential attainment
OJT Credential outcomes for participants enrolled in ETA will generally approve
Performance OJT in the credential performance this waiver.
measure calculations. All
participants served and outcomes
should be reported in the WIASRD.
Waiver of WIA Section 136(h) and
20 CFR 666.420 to permit sanctions
Performance
for poor performance to be applied to ETA will generally approve
Sanctions Applied to a
a consortium of multiple local areas, this waiver.
Consortium
rather than to the individual local
areas.
Waiver of regulations at 20 CFR
Performance 666.300 and 666.310 to permit a
ETA will generally approve
Negotiations as a consortium of multiple local areas to
this waiver.
Consortium negotiate performance goals with the
State as one entity.
Youth
Waiver of regulations at 20 CFR
Youth Individual ETA will generally approve
664.510 of the prohibition on the use
Training Accounts this waiver.
of ITAs for youth.
Policy Decisions, Program
Waiver Name Waiver Description
Year (PY) 2012
ETA will generally approve
this waiver with the following
parameters: ETA will allow
American Job Center
Competitive Waiver of WIA Section 123 of the Operators or partner agencies
Procurement for requirement for competitive to directly provide the
Youth Program procurement of service providers for following three elements:
Elements some or all youth program elements. supportive services, follow-up,
and work experience. ETA
will not grant this waiver for
other elements except in very
limited circumstances.
Waiver of WIA Section 129(c)(4)(A)
to allow certain alternative school
Alternative School for ETA will consider this waiver
enrollees to count toward the 30
Out-of-School Youth on a case-by-case basis.
percent Out-of-School Youth
program expenditure requirement.
Waiver of WIA Section 129(c)(2) to
allow local areas to choose which of
Youth Program ETA will not grant this waiver
the 10 Youth program elements to
Elements for any state.
make available to Youth program
participants.
Waiver of regulations at 20 CFR
664.450(b) of the requirement that all
Youth Follow-up ETA will not grant this waiver
youth participants receive follow-up
Services for any state.
services for a minimum duration of
12 months.
Waiver of WIA Section 101(13) to
ETA will not grant this waiver
grant eligibility to children of parents
Youth Eligibility as it lies outside the waiver
who are WIA Adult program
authority.
participants.
Work Readiness Waiver of regulations at 20 CFR
Indicator Only for 664.460 to use the work readiness
Youth Co-enrolled in indicator as the only performance
WIA Title I and measure for youth co-enrolled in ETA will consider this waiver
TANF or CSBG for WIA and other programs for Summer on a case-by-case basis.
Summer Youth Youth Employment activities.
Employment
Activities
Policy Decisions, Program
Waiver Name Waiver Description
Year (PY) 2012
Waiver of WIA Section 129, 20 CFR
Waiver to Apply 664.405(a), and 664.450(b) to apply
Program Design the program design flexibility for
Flexibility for Youth youth co-enrolled in WIA and other
Co-enrolled in WIA programs for Summer Youth ETA will consider this waiver
Title 1 and TANF or Employment activities, specifically to on a case-by-case basis.
CSBG for Summer provide follow-up services and/or an
Youth Employment assessment and Individual Service
Activities Strategy as deemed appropriate for
such youth.
Governance
Waiver of regulations at 20 CFR
State Board Acting as 661.300(f) to allow the State Board to ETA will consider this waiver
Local Board carry out the roles and on a case-by-case basis.
responsibilities of the Local Board.
State WIB Waiver of WIA Section 111(b) to
ETA will consider this waiver
Membership streamline the membership of the
on a case-by-case basis.
Requirements State Workforce Board.
Other
Waiver of requirement at WIA
Section 134(a)(2)(B)(ii) and 20 CFR
Exemption from the 665.200(d)) to conduct evaluations of
requirement to workforce investment activities for
ETA will consider this waiver
conduct evaluations adults, dislocated workers, and youth
on a case-by-case basis.
in order to establish and promote
continuous improvement of the
statewide workforce investment
system.
Exemption from the
requirement to ETA will no longer approve
Waiver of the requirement at 20 CFR
disseminate training this waiver. This waiver will
665.200(b)(3) to disseminate training
provider performance remain in effect until June 30,
provider performance and cost
and cost information 2013 for states that are
information.
currently granted approval.
Policy Decisions, Program
Waiver Name Waiver Description
Year (PY) 2012
Exemption of the Waiver of WIA Section 129(b)(2)(C)
requirement to and 20 CFR 665.200(h) to exempt the
provide additional state from the requirement to provide ETA will consider this waiver
funding to areas with additional assistance to local areas on a case-by-case basis.
a high concentration that have a high concentration of
of WIA-eligible youth eligible youth.
Waiver of regulations at 20 CFR
Eligible Training
663.530 of the time limit on the ETA will generally approve
Provider List (ETPL)
period of initial eligibility for training this waiver.
Initial Eligibility
providers.
ETA will not grant this waiver
ETPL for Providers Waiver of the ETPL process for
as it lies outside the waiver
Adding Programs eligible providers adding programs.
authority.
Waiver of WIA Section 195(10) and
Public Service
20 CFR 667.264(a)(2) of the ETA will consider this waiver
Employment
prohibition on the use of funds for on a case-by-case basis.
public service employment.
The FY 2011 and FY 2012
Department of Labor
Appropriations Acts allow
local areas to contract with
providers for class-size
Contracting for Waiver of WIA Section 134(d)(4)(G) training in high-demand
Training Outside of to allow local areas to contract for occupations, if it does not limit
ITA’s training outside the ITA process. customer choice, and remains
in effect under the FY 2013
Continuing Resolution. A
waiver is not necessary for PY
2011, 2012, or 2013 WIA
funds.
Waiver of regulations at 20 CFR
662.240(b)(10) to allow WIA and W- ETA will consider this waiver
One-Stop Intake
P funded staff to perform intake for on a case-by-case basis.
other programs.
Waiver at WIA Section 192 to
ETA will consider work-flex
provide state authority to waive
Work-Flex requests on a case-by-case
certain elements of WIA for local
basis.
areas, based on submitted plan.
Policy Decisions, Program
Waiver Name Waiver Description
Year (PY) 2012
Waiver of WIA Section 181(e) to ETA will not grant this waiver
permit the use of a limited amount of for any state for formula funds,
Business WIA funds to capitalize a small but will consider this waiver
Capitalization business in concert with for a National Emergency
entrepreneurial or small business Grant for a disaster-related
training. event on a case by case basis.
Waiver of regulations at 20 CFR
663.820 of the requirement that
Needs Related ETA will not grant this waiver
dislocated workers must be enrolled
Payments for as it lies outside the waiver
in training by the end of the thirteenth
Dislocated Workers authority.
week after lay-off to receive needs-
related payments.
Waiver to streamline sequence of Waiver not needed; refer to
Sequence of Service
service. TEGL 14-08, Section 13.
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