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WIOAPL 15-09 (Training Services for Adults and Dislocated Workers)
Workforce Innovation and Opportunity Act Policy Letter No. 15-09
July 15, 2015
TO: Workforce Innovation and Opportunity Act (WIOA) Local Workforce Development Boards (WDBs), Fiscal Agents, and OhioMeansJobs Center Operators
FROM: Cynthia C. Dungey, Director
SUBJECT: Training Services for Adults and Dislocated Workers

I.Purpose

The purpose of this policy is to provide direction to the local workforce development boards (WDB) in the provision of training services to adults and dislocated workers.

II.Effective Date

July 1, 2015

III.Background

The Workforce Innovation and Opportunity Act (WIOA) program is designed to provide employment and training opportunities to those who can benefit from, and who are in need of such opportunities. However, WIOA is not an entitlement program. This requires local WDBs to ensure that eligible individuals are determined to be appropriate for program enrollment based upon a consistent equitable assessment that is relevant to the level of services for which the individuals are applying. WIOA services for adults and dislocated workers are grouped into two categories: career services and training services. Workforce Innovation and Opportunity Act Policy Letter (WIOPL) No. 15-08, Career Services for Adults and Dislocated Workers, provides guidance to the provision of career services.

IV.Definitions

Appropriateness: the possession of qualities which are right, needed, or suitable for training services.

Basic skills deficient: an individual who is unable to compute or solve problems, or read, write, or speak English, at a level necessary to function on the job, in the individual's family, or in society.

Customized training: training that is designed to meet the specific requirements of an employer (including a group of employers), that is conducted with the commitment by the employer to employ an individual upon successful completion; and for which the employer pays:

  • A significant portion of the cost of training, as determined by the local board involved taking into account the size of the employer and such other factors as the local board determines to be appropriate, which may include the number of employees participating in training, wage and benefit levels of those employees, relation of the training to the competitiveness of the participant, and other employer-provided training and advancement opportunities; and
  • In the case of customized training involving an employer located in multiple local areas in the State, a significant portion of the cost of the training, as determined by the Governor of the State, taking into account the size of the employer and such other factors as the Governor determines to be appropriate.

Extenuating circumstances: an economic hardship that is beyond the reasonable control of the person(s) responsible for providing financial assistance to the WIOA participant for training.

Family: two or more persons related by blood, marriage, or decree of court, who are living in a single residence and are included in one or more of the following categories:

  • Two spouses and dependent children.
  • A parent or guardian and dependent children.
  • Two spouses.

Family self-sufficiency: the use of the combination of family members' incomes to determine whether or not the participant has the means to fund training services.

Incumbent worker training: training to employed workers who are in need of additional skills to support job retention and career development.

In-demand industry sector: an industry sector that has a substantial current or potential impact (including through jobs that lead to economic self-sufficiency and opportunities for advancement) on the State, regional, and local economy, as appropriate, and that contributes to the growth or stability of other supporting businesses, or the growth of other industry sectors as as listed on the State In-Demand Occupations list or as defined by the local area per the Workforce Innovation and Opportunity Act Policy Letter (WIOAPL) No. 15-11, Use of Individual Training Accounts (ITA).

In-demand occupation: an occupation that currently has or is projected to have a number of positions (including positions that lead to economic self-sufficiency and opportunities for advancement) in an industry sector so as to have a significant impact on the State, regional, or local economy as listed on the State In-Demand Occupations list or as defined by the local area per WIOAPL No. 15-11.

Interim employment (also known as stop-gap employment): Employment that has been accepted for the purpose of income maintenance prior to, and/or during, participation in career or training services with the intention of ending such employment at the completion of the career or training services and entry into permanent, unsubsidized employment as a result of the services. Interim employment is accepted because the affected workers have lost the primary occupation for which their training, experience, or work history qualifies them. Interim employment can be part-time or full-time and must not be with the same employer from which the affected workers were dislocated.

Occupational skill training: an organized program of study that provides specific vocational skills that lead to proficiency in performing actual task and technical functions required by certain occupational fields at entry, intermediate, or advance levels and results in attainment of a recognized postsecondary credential.

On-the-job training (OJT): training by an employer that is provided to a paid participant while engaged in productive work in a job that:

  • Provides knowledge or skills essential to the full and adequate performance of the job;
  • Is made available through a program that provides reimbursement to the employer a percentage of the wage rate of the participant; and
  • Is limited in duration as appropriate to the occupation for which the participant is being trained, taking into account the content of the training, prior work experience of the participant, and the service strategy for the participant.

Program of training services: a structured regimen leading to recognized post-secondary credentials, industry-recognized credentials, employment, and measurable skill gains toward credentials or employment.

Pay-for-performance contract strategy: a procurement strategy that uses pay-for- performance contracts in the provision of training services and includes:

  • Contracts, each of which shall specify a fixed amount that will be paid to an eligible service provider based on the achievement of specified levels of performance on primary indicators of performance for target populations within a defined timetable, and which may provide for bonus payment to such service provider to expand capacity to provide effective training;
  • A strategy for independently validating the achievement of the performance; and
  • A description of how the State or local board will reallocate funds not paid to the provider because the achievement of performance did not occur for further activities related to such a procurement strategy.

Primary occupation: the customary work for which the dislocated worker's training, experience, or work history qualifies them.

Public assistance: as defined in section (3)(50) of WIOA, federal, state, or local government cash payments for which eligibility is determined by a needs or income test. This includes temporary assistance for needy families (TANF), supplemental nutrition assistance program (SNAP), or supplemental security income (SSI).

Transitional jobs: subsidized work experiences that are time-limited and designed to assist individuals to establish a work history, demonstrate success in the workplace, and develop the skills that lead to entry into and retention in unsubsidized employment.

V.Requirements

A.Eligibility for Training Services

Pursuant to section 134 (b)(3)(A) of the WIOA, training services may be provided to adults or dislocated workers who:

1.After an interview, evaluation, or assessment and career planning, have been determined by OhioMeansJobs staff or OhioMeansJobs center partner staff to be:

  • Unlikely or unable to obtain or retain employment that leads to economic self-sufficiency or wages comparable to or higher than wages from previous employment through career services;
  • In need of training services to obtain or retain employment that leads to economic self-sufficiency or wages comparable to or higher than wages from previous employment; and
  • Have the skills and qualifications to successfully participate in the selected program of training services.

2.Selects a program of training services that are directly linked to the employment opportunities in the local area or the planning region, or in another area to which the adults or dislocated workers are willing to commute or relocate; and

3.Are unable to obtain other grant assistance for training or require assistance beyond the assistance made available under other grant assistance programs, including Pell Grant funds.

Under WIOA, an individual may receive training services after an interview, evaluation or assessment, and career planning if the WIOA staff or the OhioMeansJobs partner determines the individual is unlikely or unable, by only receiving career services, to retain employment that leads to self-sufficiency or wages comparable to or higher than wages from previous employment.

Individual employment plans (IEP) are one of the most effective ways to serve individuals with barriers to employment and to coordinate the various services, including training services they may need to overcome these barriers. Therefore, all participants who receive an individualized career service per WIOAPL No. 15-08 or a training service must receive an IEP.

There is no requirement that career services be provided as a condition of receipt of training services; however, if career services are not provided before training, the local board must document the circumstances that justified its determination to provide training without first providing an interview, evaluation or assessment, and career planning.

Additionally, staff or the partner must determine that the training the individual receives would result in employment leading to self-sufficiency or wages comparable to or higher than wages from previous employment. A determination that the individual has the skills and qualifications to successfully participate in and complete training must be made. Upon a determination that career services are unlikely to obtain these employment outcomes, the individual may be enrolled in training services.

Documentation

The case files for adult and dislocated worker participants must contain a determination of need for training service as determined through the interview, evaluation, or assessment, and career planning informed by State and local in-demand occupation lists and training provider performance information, or through any other career service received. It is important that WIOA staff gather enough information, by whatever means, to justify the need for training services.

Use of Previous Assessments

When determining the services needed for an individual to obtain or retain employment, the local area or an OhioMeansJobs center partner shall not be required to complete a new interview, evaluation, or assessment of a participant if the local area or OhioMeansJobs partner determines it is appropriate to use a recent interview, evaluation, or assessment (within six (6) months) of the participant conducted pursuant to another education or training program. This may include evaluations completed by a secondary school, Vocational Rehabilitation, Adult Basic and Literacy Education (ABLE), Veteran Program, or other education or training providers.

Priority for Adult Program

Priority for training services funded by and provided through the adult program shall be given to recipients of public assistance, other low-income individuals, and individuals who are basic skills deficient for receipt of training services determined appropriate to obtain or retain employment. The emphasis in WIOA is to prioritize services to those individuals who have the most barriers to employment and to provide those individual with the opportunity to benefit from employment and training services.

Priority for Veterans and Eligible Spouses

Additionally, the Jobs for Veterans Act, Public Law 107-288 establishes priority of service for veterans and eligible spouses. Veterans and eligible spouses must first meet any and all of the statutory eligibility criteria in order to be considered for: a) enrollment in the program; b) receipt of priority for enrollment in the program; and c) priority of receipt of services. Priority means that veterans and eligible spouses take precedence, with all other qualifying eligibility requirements being equal, over non-veteran and eligible spouses in obtaining services and program enrollment.

B.Training Services

Training Services may include:

  • Occupational skills training, including training for nontraditional employment;
  • On-the-job training;
  • Incumbent worker training;
  • Programs that combine workplace training with related instruction, which may include cooperative education programs;
  • Training programs operated by the private sector;
  • Skill upgrading and retraining;
  • Entrepreneurial training;
  • Transitional jobs;
  • Job readiness training;
  • Adult education and literacy activities;
  • Customized training.

Linkage to Occupations in Demand

Training services provided shall be directly linked to an in-demand industry sector or occupation or a high potential for sustained growth in the local area or planning region, or in another area to which an adult or dislocated worker receiving such services is willing to relocate. Refer to WIOPL No. 15-11, Use of Individual Training Accounts (ITA), for the guidelines on the selection of State In-Demand Occupations and Local In-Demand Occupations.

Eligible Training Providers

Training services shall only be provided by providers who have met the criteria to be eligible and have been identified as being on the list of eligible providers of training services pursuant to section 122 of the WIOA. Pursuant to 20 CFR 680.530, providers of OJT, customized training, incumbent worker training, internships, paid or unpaid work experiences, or transitional jobs are not subject to the eligibility requirements outlined in section 122 (a)-(f) of WIOA, but are required to provide performance information established by the State.

Informed Customer Choice

Training services shall be provided in a manner which maximizes consumer choice in the selection of an eligible provider of such services. Each local board, through the OhioMeansJobs centers, shall make available the list of eligible providers of training services and accompanying performance information. Based upon the available information, participants, with the assistance of the local area, are able to make informed customer choices. Refer to WIOPL No. 15-11 for more guidance on informed customer choice.

Individual Training Accounts (ITA)

An ITA is one of the primary methods through which training is financed and provided for adults and dislocated workers. ITAs are established on behalf of a WIOA participant to purchase a program of training services from eligible training providers. WIOAPL No. 15-11 provides guidance for the use of ITAs.

Training contracts may be provided pursuant to a contract in lieu of an ITA if consumer choice requirements and one of the following exceptions are met:

  • If such training services are on-the-job training (including placing participants in a registered apprenticeship), customized training, incumbent worker training, or transitional jobs;
  • Where a local board determines there are an insufficient number of eligible providers of training services in the local area to accomplish the purposes of a system of individual training accounts as described in the local plan;
  • If the local board determines that there is a training services program of demonstrated effectiveness, through criteria developed by the local board, offered in the local area by a community-based organization or another private organization to serve individuals with barriers to employment;
  • If the training is for multiple individuals in in-demand industry sectors or occupations, as long as the contract does not limit the individual's customer choice; or
  • The contract is a pay-for-performance contract.

Needs-Related Payments

The WIOA fund may be used to provide needs-related payments to adults and dislocated workers, respectively, who are unemployed and do not qualify for (or have ceased to qualify for) unemployment compensation for the purpose of enabling such individuals to participate in programs of training services. Guidance regarding needs-related payments is found in WIOAPL No. 15-14, Needs-Related Payments Using Adult and Dislocated Worker Funds.

C.Determination of Self-Sufficiency

Pursuant to section 134 (b)(3)(A)(i)(I) of the WIOA, for adults and dislocated workers to receive training services, they must be in need of such service to obtain or retain employment that leads to self-sufficiency or wages comparable to or higher than wages from previous employment. The local areas must determine criteria for self-sufficiency. Level of self-sufficiency may vary by local area and the local economy; this flexibility allows local areas to tailor their services in a way that works in their local economy.

For working dislocated workers, determination of self-sufficiency status requires a two-step assessment of the worker's employment:

1.Determine if the employment is "interim employment."

2.If the employment is not "interim," determine if the wage is at least the locally defined level of self-sufficiency or if the hourly wage is comparable to or higher than wages from previous employment.

It should be noted that workers who have received notice of layoff, but have not yet been laid off and who do not have any other sources of employment are not subject to review of self-sufficiency.

Interim Employment for Dislocated Workers

Typically, employment is considered to be interim if the salary is below the salary of the dislocated worker's primary occupation and/or if the dislocated worker is working under the skill level of his or her customary occupation. There may be circumstances where interim employment does provide a sufficient wage temporarily but is not considered permanent employment that leads to self-sufficiency (e.g., working through a temporary agency). The determination about whether or not a dislocated worker's employment is interim employment must be made on a case by case basis and take into consideration dislocated worker's personal, family, financial, and employment situation.

A dislocated worker who is in interim employment is not considered to be self-sufficient even if the hourly wage exceeds the lower living standard income or if the hourly wage is comparable to or higher than the wages from previous employment.

If a dislocated worker has interim employment, this participant is considered to be unemployed at participation and information should be entered into the Ohio Workforce Case Management System (OWCMS) as such.

Wage Standard for Non-Interim Employment for Dislocated Workers

Employed dislocated workers whose wages are over locally defined self-sufficiency standard or comparable or higher than the wages from previous employment are considered to be "self-sufficient," unless the employment is considered to be "interim employment." Dislocated workers who are determined to be "self-sufficient" may receive career services only.

D.Determination of Appropriateness for Training Services

As the WIOA program is designed to provide employment and training opportunities to those who can benefit from, and who are in need of such opportunities, the local WDBs must ensure that eligible individuals are determined to be appropriate for training services based upon a consistent and equitable assessment that is relevant to the type of training for which the individuals are applying.

WIOA staff must gather information and assess appropriateness in a timely manner. Local WDBs should strive to establish a customer flow that allows an expedited path to needed services.

Pursuant to section 134 (b)(3)(A) of the WIOA, training services may be provided to adults or dislocated workers who after an interview, evaluation, or assessment and career planning, have been determined by OhioMeansJobs staff or OhioMeansJobs center partner staff to be:

  • Unlikely or unable to obtain or retain employment that leads to economic self-sufficiency or wages comparable to or higher than wages from previous employment through career services;
  • In need of training services to obtain or retain employment that leads to economic self-sufficiency or wages comparable to or higher than wages from previous employment; and
  • Have the skills and qualifications to successfully participate in the selected program of training services.

The process to obtain this information is a local decision. However, this information should be a combination of-among other things- standardized tests, interviews, inventory of applicants' fields of interests, skills assessments, career exploration, and available labor market, as well as other data which may have been collected through the provision of a career service.

Additional Requirements for Adult-Funded ITAs

As part of the determination of the appropriateness for training services, the local area must review "family self-sufficiency" for participants seeking a WIOA adult-funded ITA. WIOA adult-funded may only be approved for those who have been determined to be below a locally defined standard of "family self-sufficiency." This requirement is intended to ensure that adult participants seeking adult-funded ITAs are those whose families lack or have limited ability to pay for training and supportive services needed in order to obtain or retain employment.

Additionally, all young adults, ages 18-24, who are seeking WIOA adult-funded ITAs, must also be screened for dependency status. Refer to WIOAPL No. 15-06, Determination of Dependent Status, for guidance on determining dependency status. If an adult, ages 18-24, is determined to be dependent, "family self-sufficiency" would include the income(s) of all family members, including the young adult's parent(s).

WIOA eligible adults who are over the local standard for "family self-sufficiency" are not eligible for adult-funded ITAs. Other WIOA services may be provided, as appropriate. They may also be served using other WIOA funds, if eligible.

WDBs are required to develop the criteria for "family self-sufficiency." The new local definition of family self-sufficiency should not be confused with the "self-sufficiency" definition.

Extenuating Circumstances for WIOA Adult-Funded ITAs

If a family income exceeds the "family self-sufficiency" standard, a participant may still receive an adult-funded ITA if extenuating circumstances exist. When evaluating extenuating circumstances, the costs related to the economic hardship must be the responsibility of that person or for his or her legal dependent, spouse, or parent. Those costs must be ongoing and expected to cause a financial hardship for the duration of the ITA.

Economic hardships include, but are not limited to:

  • The portion of medical procedure or prescription medication costs that are not covered by insurance and are ongoing and determined to be medically essential;
  • Health insurance premium payments that are not paid for by private or public sources;
  • Payments on past due or back mortgage, rent, or essential services (e.g., electric, water, natural gas, propane, and other utility arrearages) that accumulated because of involuntary unemployment or underemployment;
  • Court-ordered child support or spousal payments;
  • Ongoing payments to a nursing home, home health care provider, elder care provider, or assisted living provider;
  • Payments toward debt that accumulated as a result of a natural disaster, severe illness, or disability.

Extenuating circumstances do not include normal rent, mortgage, utility, automobile, fuel, grocery, credit card, or "pay-day loan," payments.

Exceptions may be approved on a case by case basis for individuals whose family incomes exceeds the family self-sufficiency standard. Documentation explaining the extenuating circumstances must be maintained in the participant file, along with the signature approval of the local WDB Fiscal Agent and WDB Director or designee.

VI.Reporting Requirements

Program participation begins when the participant is determined eligible, receives the staff-assisted basic career service, individualized career service, or training service which is funded by the adult or dislocated worker program. Pursuant to rule 5101:9-30-04 of the Administrative Code, the local board shall ensure the timely and accurate reporting of WIOA participants, activities, and performance information by using the Ohio Workforce Case Management System (OWCMS).

VII.Monitoring

At the local level, the local area must conduct oversight of the implementation of the WIOA adult and dislocated worker programs to ensure that participants are enrolled in the programs and have been provided identified services.

Through the state's monitoring system, program monitors will review the local area's implementation of the WIOA youth program, including a participant file review, during the annual onsite monitoring review for compliance with federal and state laws and regulations. Any issues will be handled through the state's monitoring resolution process.

VIII.Technical Assistance

For additional information, you may send your questions to the Office of Workforce Development: OWDPOLICY@jfs.ohio.gov.

For technical assistance, you may send your request to the Office of Workforce Development: WIAQNA@jfs.ohio.gov.

IX.References

Workforce Innovation and Opportunity Act, Pub. L. 113-128.

20 CFR Parts 603 et al.

29 U.S.C. 3101 et seq.

Ohio Administrative Code rule 5101:9-30-04, Mandated Use of Ohio Workforce Case Management System (OWCMS).

ODJFS, Workforce Innovation and Opportunity Act Policy Letter No. 15-06, Determination of Dependent Status, (July 1, 2015).

ODJFS, Workforce Innovation and Opportunity Act Policy Letter No. 15-14, Needs-Related Payments Using Adult and Dislocated Worker Funds

ODJFS, Workforce Innovation and Opportunity Act Policy Letter No. 15-11, Use of Individual Training Accounts, (July 1, 2015).

ODJFS, Workforce Innovation and Opportunity Act Policy Letter No. 15-08, Career Services for Adults and Dislocated Workers, (July 1, 2015).

Rescission

ODJFS, Workforce Investment Act Policy Letter No. 08-12.3, Adult and Dislocated Worker Suitability Requirements for Intensive and Training Services in Workforce Investment Act (WIA) Programs, (May 27, 2011).