I.Purpose

The purpose of this policy is to outline requirements and procedures that ensure all individuals enrolled in the Workforce Innovation and Opportunity Act (WIOA) program have been determined eligible, assessed, and served in an ethical manner that is free from any real or perceived conflict of interest.

II.Effective Date

July 1, 2015

III.Background

The WIOA program, while not an entitlement, should be accessible to any individual who is eligible and suitable for services available in the local area, subject to local workforce development board (WDB) policies and procedures. However, when applicants have a close relationship to the WIOA staff, management, and other specific stakeholders of the workforce development system, attention must be given to ensure access to program services is not based upon this relationship or political influence. It is possible that even without an intention to misuse WIOA funds, the decision to enroll an individual in the program could be perceived as improper and cause potential non-compliance with state and/or federal law.

All subrecipients of WIOA funds agree, through rule 5101:9-31-01 of the Administrative Code (entitled, "General requirements for use and expenditures of WIOA funds for local areas'), that they will comply with the standards of conduct for maintaining the integrity of the program and avoid any conflict of interest in its administration including, but not limited to, 29 U.S.C. 2832 (g), chapter 6301 of the Revised Code, and Ohio ethics law.

Local elected officials, WDBs, designated fiscal agents, and administrative entities must help meet the objectives of the WIOA through effective policies, procedures, and safeguards that ensure the integrity of these public funds. Safeguards must be in place throughout the State that ensure all individuals served in the program are not only eligible and suitable, but also served in a manner that is free from the perception of any impropriety or conflict of interest.

IV.Definitions

Bright-line test: an objective rule that resolves a legal issue in a straightforward, predictable manner.

Close relationship: the applicant's prior and/or present social interactions and/or business dealings with stakeholders of the workforce development system gives a reasonable observer cause to believe that the applicant's access to WIOA program services would be based upon this relationship, as opposed to demonstrated need.

Close family member: parents, step parents, spouse, domestic partner, children, step-children, foster children, siblings, grandchildren, grandparents, and any immediate relatives by blood or marriage (i.e., in-laws, cousins, nieces, nephews, aunts, and uncles).

Stakeholders: individuals not related but have direct or indirect management or responsibility for managing the WIOA workforce system (including WIOA executive staff, supervisors, local elected officials, contractors (e.g., adult, dislocated worker, or youth program vendors), WDB and subcommittee members, WIOA employees, and OhioMeansJobs center partner staff.

V.Requirements

When applicants have a close relationship to WIOA staff, management, and other specific stakeholders of the workforce development system, attention must be given to ensure access to program services is not based upon this relationship or political influence. Although this determination may be simple if the applicant is a close family member or friend, it may be more difficult if the applicant has a close relationship with WIOA staff, management, and other stakeholders.

There is no bright-line test for the determination of such a relationship. WIOA staff, management, and other workforce development systems are advised to avoid the appearance of impropriety by abstaining from directly assisting and/or influencing the application process of friends, close family members, former and/or present colleagues, and persons with whom they have an ongoing social or business relationship.

An "arms-length determination" of eligibility must be conducted by a staff member that has no relationship with the individual. Likewise, decisions relating to approving training, supportive services, job referrals, or other service needs must be made by the WDB director or an authorized designee with no such relationship to the applicant. Stakeholders identified in this issuance shall not use their position to influence a decision to enroll an individual in the WIOA program.

WDB Policy Requirements

All local WDBs must establish policies and procedures for determining eligibility and service needs of close family members, friends, and others with whom there is a close relationship. The local policy and procedures must include, at a minimum, the following requirements:

1.A process for immediate disclosure and documentation of the relationship (e.g., close family members, friends, and others with close relationships) between the applicant and any of the following stakeholders of the workforce development system:

a.Local elected officials;

b.WDB members;

c.WDB subcommittee members;

d.WIOA executive staff and supervisors;

e.WIOA employees;

f.OhioMeansJobs center partner staff;

g.WIOA sub-recipients and/or contractors; and

h.County employees.

All individuals applying for services in the WIOA program are required to indicate whether or not a relationship exists that is covered by this policy. If not incorporated in the intake process, the local WDBs shall develop a disclosure form for this purpose. Documentation of the disclosure, including the name of the person and the nature of the relationship, must be maintained in the participant's file. When a relationship exists, it must be disclosed at the time of application to the program.

2.A description of the internal process that will ensure that a transparent and arms-length assessment of the applicant's eligibility and development of the individual employment plan or individual service strategy has been conducted by staff with no personal or business relationship, bias, special interest, or prejudice.

Local WDBs are encouraged to develop agreements or memorandums of understanding with other Ohio WDBs to accept referrals for eligibility determination and assessment of appropriateness to receive services when the referring WDB's applicant is one of the following or a family member or friend of one the following:

• Local elected official;
• WDB or Subcommittee member; and
• WIOA executive staff or supervisor.

By having another Ohio WDB conduct eligibility and appropriateness for service determinations and/or assessments, the local WDB could avoid situations that give rise to a suggestion that any decision was influenced by these parties.

3.Describe the approval process for authorizing an individual subject to this policy to be served in the local WIOA program, including how training and supportive service decisions are made.

Either the WDB Director or his/her authorized designee is required to sign off on approval and enrollment of subsequent services.

4.Describe how individuals subject to this policy will be tracked by the local WDB.

Local areas must provide a list of all participants who have disclosed that a close relationship to WIOA staff, management, or other specific stakeholders of the workforce development system exists to ODJFS program monitors and auditors at the onset of all monitoring visits.

5.Describe the process and frequency by which the local WDB will monitor compliance with the local policy.

Local WDBs are required to provide training on the local WDB approved policy to person directly involved with assessment and determining eligibility of participants. WBDs must also ensure that all new staff members and providers are informed of this policy.

Real or perceived violations of this policy shall result in referral, including but not limited to the Ohio Ethics Commission or prosecuting authority for investigation.

VI.Monitoring

Through the state's monitoring system, program monitors will review the area's documentation of disclosing whether or not a relationship exists that is covered by this policy as well as the required list of all participants who have disclosed that a close relationship exists 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.

VII.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.

VIII.References

Workforce Innovation and Opportunity Act, Public Law 113-128

29 U.S.C. 3101 et seq.

Ohio Rev. Code 102

Ohio Admin Code 5101:9-31-01

USDOL, Training and Employment Guidance Letter No. 35-10, Transparency and Integrity in Workforce Investment Board Decisions, (June 16, 2011).

Rescission

ODJFS, Workforce Investment Act Policy Letter No. 08-13.2, Serving Immediate Family Members, Close Acquaintances, and Other Stakeholders in the Workforce Investment Act (WIA) Program, (May 26, 2011).