Office of Public Affairs
Questions and Answers
Interim-Final Rule
Workforce Investment Act
How will this major changeover work?
Under this Interim-Final Rule is created a workforce investment system to deliver employment services at the state and local levels to people who need help: job seekers generically, dislocated workers, youth, already-employed workers, new entrants to the workforce, veterans, people with disabilities and also employers.
Under the Rule, each Governor is required to establish a state-level Workforce Investment Board, designate geographic workforce investment areas, oversee the creation of local Workforce Investment Boards in each of those areas and oversee the creation or expansion of a One-Stop Career Center network throughout the state.
Will the federal government be "calling all the shots?"
No. The Department of Labor sees its role as one of providing leadership and guidance to the system - acting as sort of a coach. Secretary Herman and the Department are dedicated to empowering states and local communities in this process.
The regulations released today are the framework for state and local flexibility - and there are a minimum of issues outlined in which state and local choice is narrowly defined.
When can states begin to "opt in" to the system?
They already can - and at presstime, 10 of them already have.
Since April 1, which was the first day State Plans could be submitted, the Governors of Florida, Indiana, Kentucky, Louisiana, Nevada, New Jersey, Pennsylvania, Texas, Utah and Vermont have all submitted State Plans. The plans are now under Departmental review and have been shared with other federal agencies for comment.
Under the Workforce Investment Act, states are required to implement between July 1 of this year and July 1 of 2000.
How can states already be submitting plans, if the Interim-Final regulations are only being published now?
The Department published a user-friendly Planning Guidance and sent it to every state in January, giving states the information they needed to get a head start on this process. And many states were already ahead of the game, with effective One-Stop delivery systems already operational.
What is the One-Stop delivery system?
The One-Stop system is how the real change of the Workforce Investment Act will be delivered to all Americans. One-Stops are literally what they sound like: single locations where all people can access core services such as unemployment insurance and job searching assistance, and where eligible people can access more intensive services that are available.
Already, some 1,000 One-Stop career centers have been established through federal-state-local partnerships. Under the Workforce Investment Act, there will be many more, with many more services - eventually, at least one comprehensive center in every community.
The Interim-Final Rule lays out the regulations regarding state Plans and local Plans, state Workforce Investment Boards and local Boards. The bottom line is that every community that is designated by a Governor as a "local area" must establish a One-Stop system within its borders.
One-Stops have required partners, including adult program providers, dislocated worker program providers, youth program providers, Job Corps representatives, Veteran representatives, Native American program representatives, Migrant and Seasonal farmworker program officials, adult literacy program officials, Welfare-to-Work program representatives and many more. Ensuring that the entire menu of services are accessible through a single location is what has made these career centers work.
When will the Final Rule be published?
The Department intends to proceed to a Final Rule as quickly as possible, but no later than December 31. With publication of the Interim-Final Rule, we begin a 90-day public comment period.
What are the specifics on the state Workforce Investment Boards?
The Governors have a tremendous opportunity under the Act to assemble dedicated people who will oversee implementation of worker programs at the state level. In accordance with the legislation, the state Boards must have a business community majority, and a business community chairperson. The Boards will also include two individuals each from the following sectors: each chamber of the state legislature; education providers; elected officials; labor organizations; appropriate state agency heads; and individuals with experience at delivering programs and youth services. Special consideration should be given to chief executives of community colleges and community-based organizations. The state boards' business is to be conducted in an open manner, including open meetings and open information on the state's overall plan prior to submission.
The state Board will assist the Governor in developing the five-year State Plan; developing the One-Stop system; overseeing programs to ensure coordination and avoid duplication; designating the local areas; developing allocation formulas to determine allocations to the local areas; developing performance guidelines and other activities.
Secretary Herman recently sent a latter encouraging Governors to become personally involved in this critical step of establishing a strong Board.
What are the specifics on the local Workforce Investment Boards?
The local Board is appointed by the chief elected official in each local area, and is to be composed in a similar manner to the state Boards--with a business majority, business chairperson and members representing organized labor, local government departments, educators and people with experience at delivering programs and youth services. There are also membership requirements related specifically to Youth Councils (See details below). Again, special consideration should be given to appointing chief executives of community colleges and community-based organizations and representatives of local populations that face substantial barriers to employment.
In a local area where there are two or more elected leaders, the local leaders are encouraged to work together: if they can't work out their differences, the Governor can appoint the membership of the local Board. The local Boards' business is to be conducted in an open manner, including open meetings and open information on the local plan prior to submission.
The local Board will assist the chief elected official in developing the five-year local plan for submission to the Governor; selecting One-Stop system operators; selecting service and training providers and conducting oversight of the programs; developing a budget and allocating resources; coordinating workforce investment activities with local economic development strategies; negotiating performance measures with the state Board; promoting private sector involvement not only locally but statewide; and other functions.
Local Plans, prior to submission to the Governor, are to be released for at least 30 days of public comment. Comments that disagree with elements of the local Plan are to be submitted to the Governor with the local Plan itself. Governors are responsible for determining any rules related to modifications of local Plans.
Local Boards are prohibited from themselves being providers of services or being operators of One-Stop facilities.
What constitutes a local area under the Rule? What happens if a local area feels left out?
Governors have a fair amount of flexibility in this area. There are several factors that create automatic designation as a local area, such as a population of half a million people or more.
Local areas can themselves petition the state for designation. If the Governor rejects the request, they can appeal to the state Board. If the state Board rejects their request, the local area can request a review of the decision by the Secretary of Labor.
What are Youth Councils?
Youth councils are subgroups of the local Workforce Investment Boards. Membership will include employers; educators; representatives of human service agencies juvenile justice and local law enforcement agencies or the equivalent; representatives of local public housing authorities; parents of local youth who are eligible for assistance; people who participated in youth programs or have experience with youth programs; representatives of the local Job Corps program if there is one; and others that the Chair of the Youth Council in cooperation with the chief elected official decide are appropriate.
The Youth Council will coordinate all youth activities in the local area and develop the youth portion of the local plan for submission to the Governor. The Youth Councils will recommend service providers to the local Boards, conduct oversight of programs; and carry out other duties as authorized by the local Board chairperson.
What are the requirements related to the State Plans?
In order to change from the old system to the new system, Governors must submit a plan outlining a five-year strategy for the state system, in accordance with planning guidelines that have already been released by the Department of Labor. Prior to submission, the states are required to solicit public comment by business leaders, educators, labor leaders, elected officials and anyone else who wishes to comment.
The Secretary of Labor has 90 days to either approve the state plan or stipulate that it is inconsistent with the requirements of the Act or related statutes such as Wagner-Peyser Act regulations.
Governors may modify their plans at any time during the five-year life of the plan. The review process by the Secretary of Labor is that same as for reviewing the original plan. Submission of a written modification is required if notable changes occur, such as changes to the membership structure of the state Board or a failure to meet performance goals of the plan.
What are Individual Training Accounts?
Individual Training Accounts are established for a participant who meets specific eligibility requirements related to their particular employment situation. They are an account of funds that allows the participant to make choices about training that has been determined to be appropriate for them through their consultation with a case manager.
Exactly how they are accessed by the individuals - whether by debit card, or vouchers, or other means - is up to the states to decide. States can set limits per individual based on their circumstances, and states can set limits as to how long funds are available as well.
Under exceptional circumstances, such as in areas where there are limited choices of training programs available, training may be offered through contracts with eligible training providers.
What are "Rapid Response" activities, and who is responsible for them?
In our dynamic economy, companies continue to permanently close or lay off large numbers of employees, while other firms are hiring. The employment and training system under the Workforce Investment Act is geared to reaching out to those dislocated workers and helping them return to work as quickly as possible. Rapid Response represents the immediate effort, by federal, state and local officials, to help those workers upon notification that a layoff is to occur.
Under the new system, the state takes the lead role, and Rapid Response is a required activity. Rapid Response Activities must include on-site contact with the employer, representatives of the affected workers and the local community. The state should determine the layoff plans and schedule, any potential for averting layoffs, an assessment of the probable assistance needs of the affected workers and determine re-employment prospects in the local community.
Effected employees should be given the information they need about access to unemployment insurance benefits, available One-Stop resources and information about specific programs that may benefit them, such as the Trade Adjustment Assistance program and the NAFTA-TAA program.
The regulations encourage states to be aggressive in Rapid Response, to develop better strategies, and to try to avert layoffs in the first place.
In Youth programs, what happens to the summer job programs?
They are blended into the Workforce Investment Act system. The local Youth Councils are required to include summer jobs programs in the local youth program mix. But local Boards may determine what percentage of their available youth funds will be used for summer programs, to provide the overall set of services to meet the workforce needs of young people in the community.
What are Youth Opportunity Grants?
The Youth Opportunity initiative was authorized last year as part of the Workforce Investment Act. Congress has appropriated $250 million in first-year funds available July 1 of this year. The initiative targets funds directly to high-poverty urban and rural areas where the need is greatest for youth employment programs. Secretary of Labor Alexis Herman hopes, through this initiative, to dramatically increase the employment, high school graduation, and college enrollment rates of youth living in the target communities.
Youth Opportunity grants are awarded through a competitive selection process. They have been awarded by the Secretary of Labor to urban and rural areas, taking into account the poverty rate, the number of people in poverty, and the quality of the proposals.
Under the new system, local Boards are eligible to apply for Youth Opportunity grants if they serve a community that has been designated as a federal empowerment zone or enterprise community, is in an area that doesn't have such a zone but has been identified by the Governor.
I have a detailed question about something very specific - adult and dislocated workers particulars, criteria for intensive services, etc. Where do I get the answer?
Go to the Interim-Final Rule. If you've been scared off by regulations in the past, take a look at something new. More than 80 percent of this document is in structure question-and-answer format - with the questions listed in easy menus that point to where you'll find the answer.
This Rule is as unique as the Workforce Investment Act, and just as user-friendly. Take a look.
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