FSTL 261 (Clarification: Reduction in the Work Effort Provision)
Food Stamp Transmittal Letter No. 261
October 28, 2004
TO: Food Stamp Certification Handbook Holders
FROM: Thomas J. Hayes, Director
SUBJECT: Clarification: Reduction in the Work Effort Provision

These rules are proposed to be effective 12/06/04. If no revisions are made to the proposed rules prior to the finalization by JCARR, they will become effective on a permanent basis on 12/06/04. If changes are necessary, a copy of the revised rules will be forwarded to you at that time.

Background Information

This transmittal letter is dedicated to providing clarification on the final rule that was published in the June 19, 2002 Federal Register regarding a reduction in the work effort. One exemption from work requirements is employment of 30 hours or more per week or weekly earnings of at least equal to the Federal minimum wage multiplied by 30 hours.

The final rule published in the June 19, 2002 Federal Register implemented the provisions of the Personal Responsibility and Work Opportunity Reconciliation Act and the Balance Budget Act relating to the work provisions of the Food Stamp Program. The final rule added a new provision that made individuals who reduce their work effort to less than 30 hours per week ineligible to participate in the Food Stamp Program. The rule stipulated that the minimum wage equivalency did not apply when determining a reduction in work effort.

Subsequent policy clarification established that the minimum wage equivalency must apply when making these determinations. Based on this clarification, an individual who is exempt from the work requirements because he or she is working a minimum of 30 hours per week and then reduces his or her work hours to less than 30, but continues to earn more in weekly wages than the 30 hours per week at minimum wage, remains exempt from the work requirements and is not subject to disqualification from the Food Stamp Program.

5101:4-3-11: Food Stamps: Exemptions, Work Registration, Work Requirements, and Sanctions

Language has been added to paragraph (A)(9) to exempt individuals from work participation who reduce their work hours to less than 30 per week but continue to earn more than the Federal minimum wage times 30 hours. This rule has also been amended to change the term eligibility worker (EW) to county agency and to reflect the change in the name from disability assistance (DA) to disability financial assistance (DFA). Grammatical corrections were made to paragraphs (B)(2) and (G)(4). Reference to the form "Results of of Services to Food Stamp Registrants" ES/FS 7 has been removed from paragraph (C)(4)(b) because the form was obsoleted with the issuance of FSTL #226.

5101:4-3-19: Food Stamps: Voluntary Quit and Reduction of Work Effort

Clarification has been added to paragraph (B)(1)(b) that a disqualification would not apply to individuals who reduce their work hours to less than 30 hours per week, but have earnings that exceed the Federal minimum wage multiplied by 30 hours.

Training and Technical Assistance

Training and technical assistance needs to implement these rules will be minimal. Clarification regarding these rules will be available to county staff by ODJFS through the Bureau of County Oversight and Support, Program Policy Services staff.

Fiscal Impact

There should be no fiscal impact for the county agencies to implement these rules. No additional staff will be needed. No additional supplies, equipment or travel is involved.

FSTL Instructions:

LocationRemove and File as ObsoleteInsert/Replacement
Chapter 3000
Food Stamps: Exemptions, Work Registration, Work Requirements, and Sanctions5101:4‑3‑11
(effective 1/9/03)
5101:4‑3‑11
(effective 12/6/04)
Food Stamps: Voluntary Quit and Reduction of Work Effort5101:4‑3‑19
(effective 1/9/03)
5101:4‑3‑19
(effective 12/6/04)
Outline of Contents: Chapter 6000: Determining Eligibility of Special Situation Assistance GroupsOutline of Contents: Chapter 6000 dated 10/1/01With attached corresponding page dated 12/06/04
Appendix 35N/AUpdate with the number and date of this transmittal.