I.Purpose
The Ohio Department of Job & Family Services (ODJFS) is
committed to providing employer customers with workforce solutions throughout
the business cycle and may do so by helping local workforce development areas
(local areas) to avert or mitigate employer layoffs and closures using rapid
response (RR) to fund layoff aversion (LA) strategies as outlined in this
policy.
II.Effective
Date
Immediately
III.Rescission
ODJFS, Workforce Innovation and Opportunity Policy Letter No.
15-16, Rapid Response Program Requirements – Layoff Aversion, (August 6, 2015).
IV.Background
Under WIOA, workforce development, education, and economic
development partners coordinate services and activities to meet the needs of
employers throughout the business cycle, including assisting with potential
reductions in their labor force. Local WIOA-funded providers of employer
services and other partners in workforce, economic development, and education
programs should coordinate to provide a range of layoff aversion (LA)
strategies as part of their routine and on-going menu of business services
(e.g., identifying employers who are at-risk of downsizing, assessing employer
needs, facilitating access to capital, providing worker training, helping to
improve quality or production processes, etc.)
LA strategies save jobs and increase economic productivity by
preventing or deferring layoff events, shortening the duration of unemployment,
and minimizing the negative impacts on workers, the employer, and the
community. A layoff is averted when:
1.A worker’s
job is saved with an existing employer that is at risk of downsizing or
closing;
2.A worker at
risk of dislocation transitions to a different job with the same employer; or
3.A worker at
risk of dislocation transitions to a new job with a different employer and
experiences no or a minimal period of unemployment.
LA strategies can be effective tools to assist employers in
developing the skilled workforce necessary to adapt to the changing economy, to
stay in business, and to retain talent. The local area should opt to deploy LA
strategies that are most likely to retain jobs and critical industries in the
region, promote new industry-sector growth strategies and new jobs in the
economy, and provide improved coordination between partners. Such strategies
may include, but are not limited to:
1.Assisting
employers in managing reductions in force, which may include:
a.Early
identification of firms at risk of layoffs (e.g., early warning networks or
trend monitoring);
b.Assessment of
the needs of, and options available to, at-risk firms (e.g., asset mapping,
employee buy-outs, or succession planning); and
c.The delivery
of services, or referrals to other resources and providers, to address the
assessed needs;
2.Ongoing
engagement, partnership, and relationship-building activities with businesses
in the community to create an environment for successful LA efforts and to
enable the provision of assistance to dislocated workers in obtaining
reemployment as soon as possible;
3.Funding
feasibility studies to determine if a company's operations may be sustained
through a buyout, employee ownership, or other means to avoid or minimize
layoffs;
4.Implementing
incumbent worker training (IWT) programs;
5.Connecting
companies to:
a.Short-time
compensation (e.g., SharedWork Ohio) or other programs designed to prevent
layoffs or to quickly reemploy dislocated workers, available under Unemployment
Insurance programs;
b.Employer loan
programs for employee skill upgrading; and
c.Other
Federal, State, or local resources as necessary to address other business needs
that cannot be funded by WIOA;
6.Establishing
linkages with economic development activities at the Federal, State, and local
levels, including Federal Department of Commerce programs and available State
and local business retention and expansion projects;
7.Partnering or
contracting with business-focused organizations to assess risks to companies,
propose strategies to address those risks, implement services, and measure
impacts of services delivered;
8.Conducting an
analysis of the suppliers of an affected company to assess their risks and
vulnerabilities from a potential closing or shift in production of their major
customer;
9.Engaging in
proactive measures to identify opportunities for potential economic transition
and for fulfilling worker training needs in growing industry sectors or expanding
businesses; and
10.Connecting
businesses and workers to short-term, on-the-job, or customized training
programs and apprenticeships before or after layoff to help facilitate rapid
reemployment.
In addition to providing services following a layoff or closure,
the WIOA RR program is designed to be proactive by helping local areas
implement these and other LA strategies.
V.Definitions
Imminent Layoffs: Workforce reductions by an employer that,
according to documented foreseeable circumstances, are likely to occur within
the next 36 months, and likely to result in the potentially affected workers
remaining out of work for at least 6 months.
Incumbent worker: An employed individual who meets the Fair
Labor Standards Act requirements for an employer-employee relationship and has
an established employment history with the employer for six months or more or
is a member of a training cohort in which most of the workers have such an
employment history.
Incumbent worker training (IWT): Training designed to meet the
special requirements of an employer (including a group of employers) to retain
a skilled workforce or avert the need to lay off employees by assisting the
workers in obtaining the skills necessary to retain employment. IWT is
conducted with the commitment of the employer to retain or avert the layoffs of
the incumbent workers trained. IWT may be funded with local adult or dislocated
worker formula grants or with state RR funding.
Layoff aversion (LA): A strategy that prevents and/or minimizes
unemployment for employees of companies that have either announced layoffs or
are struggling and at risk of downsizing.
Ohio Rapid Event Data (OhioRED): An information tracking system
that records all employer event information and data on the delivery of RR services.
Ohio Workforce Case Management System (OWCMS): A system used by
workforce professionals to gather and report program data and information for
the following programs: WIOA, Wagner-Peyser, Veteran, Apprenticeship, Migrant
and Seasonal Farmworker, Foreign Labor Certification, and Trade.
VI.Local
Workforce Development Area Requirements
A.Local Area
Strategic Framework for LA Activities
Local workforce development boards (WDB) have the unique
opportunity to implement proactive programs meant to predict and avert layoffs,
thereby saving jobs and helping their communities grow and prosper. Under the
strategic direction of the WDB, the partners in the local area must establish
processes and procedures to:
1.Effectively
deliver services to employers throughout the business cycle (i.e., normal
expansions and contractions of the economy);
2.Develop an
operations protocol for local area and regional partner programs that provide
employer services to coordinate their efforts;
3.Identify
opportunities to conduct LA activities;
4.Determine the
appropriate LA strategy or mix of strategies that best fits each opportunity;
5.Develop the
RR funding request for implementation of LA strategies when local area
resources are insufficient to address the local needs;
6.Implement the
approved LA strategies; and
7.Capture the
data associated with LA in the appropriate State-designated information
systems.
When the need to implement one or more LA strategies has been
identified, local area partner or community resources available to implement
the strategy must be explored, including WIOA adult and dislocated worker
formula funds. If the expected costs of implementing the necessary LA
strategies exceed the resources available in the local area, a request for RR funding
may be submitted in accordance with the WIOA policy letter on funding for RR
layoff aversion.
Local areas may request RR funding to implement either IWT
programs or proactive LA strategies.
B.RR Incumbent
Worker Training (RRIWT)
One of the most commonly implemented and effective LA strategies
is the provision of IWT to enable workers to obtain the skills necessary to
avert potential layoffs. If local resources (e.g., the portion of WIOA formula
funding that may be spent on IWT, the employer’s own resources, and other
partner funding) are not sufficient to adequately address the training needs
for an employer facing layoffs, then local areas may request RRIWT funding. Local
areas may apply for up to $4,200 for each incumbent worker that will receive training.
Many employers express the need to upgrade the skills of their
workforce to enhance profitability and competitiveness, but the primary focus
of the RR program must remain on serving unemployed workers and averting
layoffs. Therefore, RRIWT funds will not be awarded for skill upgrades that are
unrelated to imminent layoffs. Examples of situations that would justify the
need for RRIWT funding to prevent imminent layoffs include, but are not limited
to:
- An employer experiences ongoing losses or declining
sales that are likely to be mitigated by IWT;
- A significant share of the employer’s revenue is
derived from contracts or agreements that risk being discontinued if worker
skills are not upgraded to complete the deliverables; or
- Successful implementation and operation of new
equipment or technology necessary for the sustained viability of the company
requires specialized or intensive worker training.
When requesting funds for RRIWT, the local area must include
explanations of how the employer is facing imminent layoffs and how they would
be averted through the provision of training for the workers.
RRIWT services must be implemented in compliance with the IWT
guidelines (i.e., employer eligibility requirements, training provider
considerations, procurement options, allowable costs, etc.), except for the
provision allowing IWT for skill upgrades unrelated to imminent layoffs, which
is not permitted under RRIWT funding but may be provided with local funds.
Upon receipt of RRIWT funds, the local area must ensure that
impacted workers are not turned away from services based upon their residency.
C.Proactive LA
Strategies
Local areas may request LA funds for strategies to launch
innovative solutions unrelated to imminent layoffs by a specific employer or
group of employers, such as creating an early warning network; assessing risks
to industries or companies and proposing strategies to mitigate the risks; and
mapping local assets that benefit employers.
Local areas should utilize proactive LA strategies that target
industries that will most significantly improve the labor market and economy of
the region. This includes industries that:
- Provide the types of long-term wages, benefits,
and career opportunities that will allow individuals and families to become and/or
remain financially independent and self-sufficient;
- Employ a relatively large share of the local or
regional workforce;
- Have established career pathways for low-income
populations;
- Diversify job opportunities for workers in the
labor market; and
- Create economic spin-off activity or
technological advancement.
When requesting RR funding for a proactive LA strategy, the
local area shall list in the application the planned goals or outcomes expected
to result from the project, which must be stated as numeric values (e.g.,
number of employer needs assessments completed, percentage decrease in annual
layoffs, dollar value of economic development funds leveraged, etc.). This
goal-setting will enable evaluation of the success of the project upon
completion.
D.Reporting
Requirements
If LA funding is approved, ODJFS will send a notice of approval
to the local area, which will include a rapid response identification number
(RRID) for the employer. Each approved LA strategy must be entered into the
State-designated information system for tracking layoff events within ten days
of ODJFS’s issuance of the notice of approval.
For RRIWT projects, each trainee must be entered in the
mini-incumbent worker module in the State-designated case management system
within 30 days following the start of his or her training. The reporting of
outcomes is also required within 30 days after the conclusion of each worker’s
training period.
Depending on the LA strategy, the local area may be required to
register individuals receiving services as participants in the State-designated
case management system under one or more special grant offices, which will
enable the reporting of long-term outcomes to evaluate the success of the LA
project. Instructions on the tracking of RR data under a special grant office,
if required, will be provided when the funding request is approved.
In addition to the above data collection requirements, local
WDBs may choose to collect more information, if it is needed to conduct
successful LA strategies. Given the sensitive nature of a business’s financial
status and of all personal data, local WDBs should be cautious in gathering
confidential information beyond the requirements of this policy.
Upon completion of the LA project, the local area must submit an
evaluation of the effectiveness of the area's implementation of the planned
strategies, which shall include a report on the completion status of each
planned goal or outcome. The evaluation may also include an assessment of
collaboration among partners that assisted with the LA project; the efficiency
of service delivery to employers and affected workers; timeliness and
completeness of data entry into OhioRED and/or OWCMS; use of funds in a manner
that is consistent with the funding application and federal and state laws and
local procedures; and other qualitative or quantitative evaluations that the
local WDB deems appropriate.
VII.State
Requirements
A.Oversight of
Local Area LA Implementation
The Ohio Department of Job and Family Services (ODJFS), Office
of Workforce Development (OWD), is the agency responsible for the
administration of WIOA and the delivery of the RR program. The OWD RR unit
oversees the RR program to ensure compliance with federal and state
requirements, carrying out the delivery of LA primarily through sub-recipient
awards to participating local areas.
To effectively manage the investment of RR resources and to
oversee the delivery of LA services, the OWD RR Unit shall:
1.Manage RR funds to ensure sufficient
resources remain available to respond to unavoidable mass layoffs and for other
strategic priorities and for LA projects as appropriate;
2.Provide policy guidance and a planning
form that local areas may submit to request LA funding;
3.Establish financial guidelines to be used
in determining local area eligibility for an LA award and the award amount;
4.Review requests for RR funding to ensure
compliance with this policy letter and related policies, regulations, and
legislation;
5.Monitor LA project implementation by the
local area (e.g., worker counts, expenditure rates, outcomes) by communicating
with local areas and reviewing data reported in the applicable information
systems; and
6.Negotiate and issue incremental awards
and adjust the parameters and funding levels of LA projects that are in
progress in response to communications with the local area and other data.
B.Technical
Assistance
The RR Unit will provide technical assistance to local areas
implementing LA projects under RR funding, including:
1.Documenting statewide
RR activity and identifying best practices;
2.Overseeing
the activities performed under RR-funded LA;
3.Providing
support, guidance, and training to local areas participating in LA projects;
and
4.Reviewing,
managing, and reporting local area LA activity.
For additional information or to request technical assistance,
email the OWD Rapid Response Unit at RAPDRESP@jfs.ohio.gov.
VIII. References
Workforce Innovation and Opportunity Act § 134, Pub. L. 113-128.
20 C.F.R. §§ 682.300-682.370.
USDOL, Training and Employment Guidance Letter WIOA No 19-16,
Guidance on Services provided through the Adult and Dislocated Worker Programs
under the Workforce Innovation and Opportunity Act (WIOA) and Wagner-Peyser Act
Employment Service (ES), as amended by title III of WIOA, and for
Implementation of the WIOA Final Rules (March 1, 2017).
ETA, Unemployment Insurance Program Letter No. 03-13, Financing
of Temporary Federal Short-Time Compensation Programs under Section 2163 of the
Middle Class Tax Relief and Job Creation Act of 2012 (December 4, 2012).
Ohio Rev. Code §§ 4141.09 and 4141.50.
ODJFS, Workforce Innovation and Opportunity Act Policy Letter
No. 15-23, Incumbent Worker Training (IWT) Guidelines (March 29, 2016).