Sec. 2. Pilot program on provision of subsidies to employers for employment of certain veterans and members of the Armed Forces
2,908 words·~13 min read·
/bill/113/s/922/is/section-2A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Commencing not later than January 1, 2014, the Secretary of Labor shall, acting through the Assistant Secretary of Labor for Veterans' Employment and Training and in collaboration with the Secretary of Veterans Affairs, carry out a pilot program to assess the feasibility and advisability of providing subsidies to eligible employers to employ eligible individuals— to provide eligible individuals with valuable work experience; to increase the skills of eligible individuals; and to assist eligible individuals in obtaining long-term employment.
For purposes of the pilot program, an eligible individual is an individual who— is— a veteran of the Armed Forces who was discharged or released from service therein under conditions other than dishonorable; or a member of a reserve component of the Armed Forces (including the National Guard) who— served on active duty in the Armed Forces (other than active duty for training) for more than 180 consecutive days during the two-year period ending on the date of commencement of the participation in the pilot program; and is not serving on active duty on the date of commencement of participation in the pilot program; is, at the time at which the individual applies for participation in the pilot program— 18 years of age or more but not more than 34 years of age; or 55 years of age or more but not more than 64 years of age; is not in receipt of compensation under chapter 11 of title 38, United States Code, by reason of unemployability; is not enrolled on the date of commencement of participation in the pilot program in a Federal or State job training program; and is considered by the Secretary to be unemployed or underemployed.
For purposes of the pilot program, an eligible employer is an employer determined by the Secretary to meet such criteria for participation in the pilot program as the Secretary shall establish for purposes of the pilot program, except that an employer may not be determined to be an eligible employer for that purpose if the employer— has been investigated or subject to a case or action by the Federal Trade Commission during the 180-day period ending on the date the employer would otherwise commence participation in the pilot program; has not been in good standing with a State business bureau during the period described in subparagraph (A); is an agency of the Federal Government or a State or local government; is delinquent with respect to payment of any taxes or employer contributions described under sections 3301 and 3302(a)(1) of the Internal Revenue Code of 1986 (26 U.S.C. 3301 and 3302(a)(1)) or with respect to any related reporting requirement; has previously participated in the pilot program and, as determined by the Secretary, failed to abide by a requirement of the pilot program; does not provide assurances to the Secretary at the time the employer would otherwise commence participation in the pilot program that the employer will comply under the pilot program with the requirements for non-displacement of current employees specified in paragraph (2); or receives more than 75 percent of its revenue from the Federal Government or a State or local government.
The requirements specified in this paragraph are the following: That an employer shall not use an individual participating in the pilot program to displace any employee of the employer at the time of commencement of participation in the pilot program from employment or any employment benefits, including a partial displacement (such as a reduction in the hours of non-overtime work, wages, or employment benefits). That an employer shall not permit an individual participating in the pilot program to perform work activities related to any job for which— any other individual is on layoff from the same or any substantially equivalent position; or the employer has terminated the employment of any employee or otherwise reduced the workforce of the employer with the intention of filling or partially filling the vacancy so created with the work activities to be performed by the individual participating in the pilot program.
That an employer shall not create a job for an individual participating in the pilot program in a manner that will infringe in any way upon the opportunities for promotion of individuals employed by the employer on the date of the employer's commencement of participation in the pilot program. That— an employer shall not, by means of assigning work activities under the pilot program, impair an existing contract for services or a collective bargaining agreement; and work activities that would be inconsistent with the terms of a collective bargaining agreement shall not be undertaken by an individual participating in the pilot program without the written concurrence of the labor organization that is signatory to the collective bargaining agreement.
The Secretary shall carry out the pilot program during the three-year period beginning on the date of the commencement of the pilot program. Not more than 50,000 eligible individuals may concurrently participate in the pilot program. The Secretary shall carry out the pilot program in four locations selected by the Secretary for purposes of the pilot program from among areas with populations the Secretary determines have high concentrations of veterans. In selecting locations under paragraph (1), the Secretary of Labor may consult with the Secretary of Veterans Affairs, particularly with respect to determining which areas have populations with high concentrations of veterans.
For each eligible employer approved by the Secretary to participate in the pilot program who employs on a full-time basis an eligible individual approved by the Secretary to participate in the pilot program, the Secretary shall provide a subsidy for the employment of such eligible individual by such eligible employer during such period as— the eligible individual is employed by the eligible employer; the eligible individual is participating in the pilot program; and the eligible employer is participating in the pilot program.
Except as provided in subparagraph (B), a subsidy provided by the Secretary under the pilot program to an eligible employer for the employment of an eligible individual shall be an amount equal to— except as provided in clause (ii), 60 percent of the basic pay provided by the eligible employer under the pilot program to the eligible individual; and in the case in which the eligible employer provides employment that includes an apprenticeship (which must be approved for purposes of the pilot program not later than two years after the date of the commencement of the pilot program), 75 percent of the basic pay provided by the eligible employer under the pilot program to the eligible individual.
Except as provided in subparagraph (D), the aggregate amount of subsidy provided under the pilot program to an eligible employer for the employment of an eligible individual may not exceed— except as provided in clause (ii), $11,000; or in the case described in subparagraph (A)(ii), $14,000. Except as provided in clause (ii), subsidies paid to an eligible employer under subparagraph
(A)shall be paid to the eligible employer on a quarterly basis. In order to relieve financial burden on an eligible employer participating in the pilot program whom the Secretary determines has few employees, the Secretary may pay subsidies under subparagraph
(A)to such employer on a monthly basis as the Secretary considers appropriate. If an eligible employer who received a subsidy under the pilot program for the employment of an eligible individual hires such eligible individual on a full-time basis following the completion of the participation of such eligible individual in the pilot program, the Secretary shall pay such eligible employer an additional amount equal to 10 percent of the aggregate amount of subsidy paid to the eligible employer under subparagraph
(A)during the last six months of such eligible individual's employment with such eligible employer while participating in the pilot program. Any amount paid under this subparagraph shall not apply against the aggregate maximum amount specified in subparagraph (B). The Secretary may establish guidelines or criteria for the approval or disapproval of apprenticeships for purposes of the pilot program. A subsidy provided to an eligible employer to employ an eligible individual under the pilot program shall be for the lesser of— a period of one year; and the duration of such eligible individual's employment with the eligible employer. In the case of an eligible employer who is already receiving one or more subsidies under the pilot program for the employment of one or more eligible individuals, when determining whether to provide an additional subsidy to such employer to employ an additional eligible individual, the Secretary may take into consideration, if after hiring such additional eligible individual, the number of eligible individuals for whom the employer is receiving a subsidy under the pilot program would constitute more than 10 percent of the workforce of the eligible employer. No eligible employer may receive a subsidy under the pilot program for the employment of an eligible individual if the rate of pay for such employment is less than the greater of the rate specified in section 6(a)(1) of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 206(a)(1) ) or the rate specified in the applicable State minimum wage law. It is the sense of Congress that an employer should not be provided a subsidy under the pilot program for employment of an eligible individual in a position under a contract, grant, or cooperative agreement with the Federal Government or a State or local government that involves functions that are so inherently governmental that the position would not provide the eligible individual with experience, training, or skills necessary for employment in the private sector in a position not involving such functions. An eligible employer or an eligible individual seeking to participate in the pilot program shall submit to the Secretary an application therefor at such time and in such manner as the Secretary shall specify. Except as provided in subparagraph (C), each application submitted under subparagraph
(A)shall contain such information as the Secretary may specify. An application submitted by an eligible employer under subparagraph
(A)shall include assurance that the eligible employer will comply with the requirements for non-displacement of current employees specified in subsection (c)(2) under the pilot program. The Secretary shall review each application submitted by an applicant under paragraph
(1)and approve or disapprove the applicant for participation in the pilot program. In approving or disapproving an eligible employer for participation in the pilot program, the Secretary may consider past performance of the eligible employer with respect to the following: Job training, basic skills training, and related activities. Fiscal accountability. Demonstration of a high potential for growth and long-term job creation. The Secretary may consider approving both for-profit and not-for-profit employers who are eligible employers for participation in the pilot program. In selecting eligible employers for participation in the pilot program, the Secretary may consider the extent to which small business concerns are afforded opportunities to participate in the pilot program. If the Secretary determines that an eligible individual participating in the pilot program is not making satisfactory attendance in employment, or has been removed from placement for misconduct, the Secretary may terminate such eligible individual's status as a participant in the pilot program and bar such eligible individual from further participation in the pilot program. An eligible individual employed by an eligible employer who receives a subsidy for such employment under the pilot program shall be deemed, during the period of such subsidy, an employee of the United States for the purposes of the benefits of chapter 81 of title 5, United States Code, but not for the purposes of laws administered by the Office of Personnel Management. For purposes of the Patient Protection and Affordable Care Act ( Public Law 111–148 ), an eligible individual employed by an eligible employer shall be considered an employee of the Department of Labor and not the eligible employer during such period as the eligible employer receives a subsidy under the pilot program for the employment of such eligible individual. In accordance with criteria established by the Secretary for purposes of the pilot program, the Secretary may pay an allowance based upon mileage, of any eligible individual whose employment is subsidized under the pilot program not in excess of 75 miles to or from a facility of the eligible employer or other place in connection with such employment. The Secretary may award grants to not more than four eligible entities to assist the Secretary in carrying out the pilot program. For purposes of the pilot program, an eligible entity is a nonprofit organization. In awarding grants under this subsection, the Secretary may consider whether an eligible entity— has an understanding of the unemployment problems of eligible individuals and members of the Armed Forces transitioning from service in the Armed Forces to civilian life; is familiar with a location selected under subsection
(e)and has an understanding of employment in such location and employment assistance available to eligible individuals in such location; and has the capability to assist the Secretary in administering effectively the pilot program and provide employment assistance to eligible individuals. Amounts received by a recipient of a grant under this subsection may be used as follows: To assist the Secretary in carrying out the pilot program. To recruit eligible employers and eligible individuals to participate in the pilot program. To coordinate and implement job placement and other employer outreach activities in connection with the pilot program. To carry out such other activities as the Secretary considers appropriate for purposes of the pilot program. Under the pilot program, the Secretary shall— develop an objective assessment process that will identify the work experience, skill levels, and interests of eligible individuals participating in the pilot program; ensure that employment and counseling services are available to eligible individuals participating in the pilot program, including by connecting eligible individuals with services available to the eligible individuals through State or local employment service or other public agencies; develop and implement procedures for evaluating job placement and employment of eligible individuals participating in the pilot program; and carry out such other activities as the Secretary considers appropriate for purposes of the pilot program. The Secretary of Labor and the Secretary of Veterans Affairs shall jointly conduct a program of outreach to inform eligible employers and eligible individuals about the pilot program and the benefits of participating in the pilot program. The Secretary of Labor shall take such measures as may be necessary to minimize administrative burdens incurred by eligible employers in participating in the pilot program. Not later than 45 days after the completion of the first year of the pilot program and not later than 180 days after the completion of the second and third years of the pilot program, the Secretary shall submit to Congress a report on the pilot program. Each report submitted under paragraph
(1)shall include the following: An evaluation of the pilot program. The number and characteristics of individuals participating in the pilot program. The number and characteristics of employers participating in the pilot program. The number and types of positions of employment in which eligible individuals were placed under the pilot program. The number of individuals who obtained long-term full-time employment positions as a result of the pilot program, the hourly wage and nature of such employment, and if available, whether such individuals were still employed in such positions three months after obtaining such positions. A description of the outreach activities undertaken to raise awareness of the pilot program by potential eligible individuals and eligible employers, and an assessment of the effectiveness of such activities. An assessment of the feasibility and advisability of providing subsidies to eligible employers to employ eligible individuals. An assessment of the effect of the pilot program on earnings of eligible individuals and the employment of eligible individuals. Such recommendations for legislative and administrative action as the Secretary considers appropriate to improve the pilot program, to expand the pilot program, or to improve the employment of eligible individuals. Notwithstanding any other provision of law, wages received by an individual that are subsidized under the pilot program may not be used in any calculation to determine the eligibility of such individual for any Federal program for the purpose of obtaining child care assistance. Not less than 95 percent of amounts appropriated or otherwise made available for the pilot program shall be used to provide subsidies under subsection (f). Not more than 5 percent of amounts appropriated or otherwise made available for the pilot program may be used to administer the pilot program. Section 51 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: No credit shall be allowed under subsection
(a)with respect to any wages paid to a qualified veteran if the taxpayer has received a subsidy under section 2(f) of the Veterans Equipped for Success Act of 2013 with respect to such qualified veteran. . In this section: The term apprenticeship means a program of apprenticeship approved by the Office of Apprenticeship of the Department of Labor or a State apprenticeship as meeting the standards of apprenticeship published by the Secretary of Labor pursuant to section 2 of the Act of August 16, 1937 (popularly known as the National Apprenticeship Act ) (29 U.S.C. 50a). The term full-time basis , with respect to employment, means employment of a minimum of 30 hours a week. The term small business concern has the meaning given that term under section 3(a) of the Small Business Act (15 U.S.C. 632(a)).
Connectionstraces to 4
Traces to 4 documents
1 reference not yet in our index
- Pub. L. 111-148
Citation graph
cites case law
Sec. 2
Pilot program on provision of subsidies to employers for employment of certain veterans and members of the Armed Forces
Pub. L.Pub. L. 111-148
Cites 5Cited by 0 across 0 sources