Explanation:
WIA Dislocated Worker Program:
The Recovery Act makes available an additional $1,250,000,000 to the WIA Dislocated Worker formula program. Funds will be distributed to states via the existing WIA Dislocated Worker formula per TEGL No. 13-08, which specified amounts for each state. These funds are available for states to provide employment and training services to dislocated workers through the One-Stop system in accordance with WIA local area allocation requirements. Under the Act, the funds shall remain available to states for the same period of time as standard PY 2008 Dislocated Worker formula funds, or until June 30, 2011. Under WIA section 133(a) the WIA Dislocated Worker funds in the Recovery Act are subject to the 25 percent Governor's reserve for statewide rapid response activities and the 15 percent reserve for state-wide activities.
Allowable activities
It is the intent of the Recovery Act that WIA Dislocated Worker funds be used to provide the necessary services to dislocated workers to support their reentry into the recovering job market. To that end, states should consider how assessment and data-driven career counseling can be integrated into their service strategies to support dislocated workers in successful training and job search activities that align with areas of anticipated economic and job growth. The funds can be used for all activities specified under WIA for the Dislocated Worker program. It is the intent of the law that substantially increased numbers of dislocated workers will be served with this infusion of formula funds, and that training will be a significant area of focus.
Training services include occupational skills training, on-the-job training, programs that combine workplace training and related instruction, including registered apprenticeship, training programs operated by the private sector, skill upgrade and retraining, entrepreneurship training, job readiness training, adult education and literacy training, and customized training. Additionally, states have the authority to enter into contracts with institutions of higher education, such as community colleges, or other eligible training providers to facilitate the training of multiple individuals in high-demand occupations, so long as the contract does not limit customer choice.
States may reserve up to 25 percent of the Dislocated Worker Recovery Act formula funds for Rapid Response activities. Given expectations for the expeditious spending of funds, ETA encourages states to be strategic in determining how much money to set aside for this purpose. States are further reminded of the wide range of activities that can be supported using Rapid Response funds, such as lay-off aversion activities (see 20 CFR part 665, subpart C).
To be eligible to receive services under the WIA Dislocated Worker formula funds provided in the Recovery Act, individuals must meet the eligibility requirements as stated in WIA section 101(9). This definition allows individuals to qualify as a dislocated worker in four different ways. The workforce system is encouraged to test individuals' eligibility against all options to ensure that the maximum number of people qualify as dislocated workers. Individuals who do not qualify under category A because of the nature of their employment separation may still qualify under category B, C, or D. Additional guidance will be forthcoming discussion dislocated worker eligibility scenarios. Customers who do not qualify as dislocated workers should be considered for eligibility in the Adult formula program.
Category A - General Dislocated Workers. To qualify, an individual must meet the following three criteria:
- Has been terminated or laid off, or has received a notice of termination or layoff, from employment;
- EITHER is eligible for or has exhausted entitlement to unemployment compensation; OR has been employed for a duration sufficient to demonstrate, to the appropriate entity at a One-Stop Career Center referred to in WIA section 134(c), attachment to the workforce, but is not eligible for unemployment compensation due to insufficient earnings or having performed services for an employer that were not covered under a state unemployment compensation law; and
- Is unlikely to return to a previous industry or occupation.
Category B - Plant Closure. To qualify, an individual must meet one of the following three criteria:
- Has been terminated or laid off, or has received a notice of termination or layoff, from employment as a result of any permanent closure of, or any substantial layoff at, a plant, facility, or enterprise;
- Is employed at a facility at which the employer has made a general announcement that such facility will close within 180 days; or
- For purposes of eligibility to receive services other than training services described in WIA section 134(d)(4), intensive services described in WIA section 134(d)(3), or supportive services, is employed at a facility at which the employer has made a general announcement that such facility will close.
Category C - Self-Employed or Unemployed. To qualify, an individual must meet the following criteria:
- Was self-employed (including employment as a farmer, a rancher, or a fisherman) but is unemployed as a result of general economic conditions in the community in which the individual resides or because of natural disasters.
Category D - Displaced Homemaker. To qualify, an individual must meet the following three criteria:
- Has been providing unpaid services to family members in the home;
- Has been dependent on the income of another family member but is no longer supported by that income; and
- Is unemployed or underemployed and is experiencing difficulty in obtaining or upgrading employment.
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