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. 15-16.1,
Rapid Response Program Requirements – Layoff Aversion, (April 1, 2019).
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’s Designated Case Management System:
An information tracking system as defined in Ohio Administrative Code 5101:9-30-04
which is used by workforce professionals to gather and report program data and employer
event information on the delivery of services for the following programs: Rapid
Response, 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 Ohio’s designated
case management 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 into the mini-incumbent
worker module into Ohio’s-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 into Ohio’s 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 Ohio’s designated
case management system; 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. 22-12, Financing of
Temporary Federal Short-Time Compensation Programs under Section 2163 of the Middle-Class
Tax Relief and Job Creation Act of 2012 (June 18, 2012).
O.A.C. §§ 5101:9-30-04
Ohio Revised. Code §§ 4141.09 and 4141.50.
ODJFS, Workforce Innovation and Opportunity Act Policy Letter No.
15-23.02, Incumbent Worker Training (IWT) Guidelines (June 14,2023).