Sec. 4. Jobs programs for long-term unemployed workers

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The Secretary shall establish and administer a jobs initiative for eligible workers, consisting of jobs programs carried out through local boards. A local board may enter into a partnership with one or more community-based organizations to submit an application and carry out a jobs program. In administering the initiative, the Secretary shall enter into 4-year agreements with local boards, under which the Secretary shall provide payments to local boards. Such an agreement shall specify which functions described in this Act will be carried out by the local board, by the community-based organization, and by the partnership.

The Secretary shall make such a payment in an amount that equals the eligible costs incurred by the local board— to provide wages and compensation for program positions for eligible workers under this section, minus any employer share of the eligible costs of providing the wages and compensation; to provide supportive services and training services to eligible workers under this section; and to administer the jobs program under this section. To be eligible to enter into an agreement under subsection (a), a local board shall submit an application to the Secretary at such time, in such manner, and containing a 4-year plan that includes such information as the Secretary may require, including— the number of eligible workers that the local board proposes to serve under the jobs program involved and the estimated cost of serving that number of workers; a plan for one-stop operators to identify the issues preventing each eligible worker served by the jobs program from securing employment, and to reduce the impact of those issues with supportive services and training services; a description of how the local board will engage labor organizations, community-based organizations, community colleges, economic development agencies, and area career and technical education schools as partners to provide training services to eligible workers, including any— adult education and literacy activities, including activities of English language acquisition, and integrated education and training programs; pre-apprenticeship programs; and career pathways; a description of how the local board will support the creation and expansion of industry or sector partnerships and alignment of the jobs program with career pathways to improve outcomes for eligible workers in program positions; proposed levels for the performance accountability measures described in subsection (c); a description of the controls established by the local board to assure that the local board— disburses funding to each participating employer for all eligible costs described in subsection

(h)incurred under the jobs program, minus the employer share described in subsection (i); oversees participating employers to ensure compliance with program rules and collection of accurate data for performance accountability measures described in subsection (c); and requests accurate advance payment or reimbursement for the eligible costs described in subsection (h), minus any employer share described in subsection

(i)of the eligible costs; a description of how the local board will align the activities carried out under the grant with the activities carried out under— the plans submitted by the corresponding State board and local board under subtitle A of title I of the Workforce Innovation and Opportunity Act ( 29 U.S.C. 3111 et seq.); the employment and training program established by the corresponding State under the supplemental nutrition assistance program established under the Food and Nutrition Act of 2008 ( 7 U.S.C. 2011 et seq.); the corresponding State program for temporary assistance for needy families established under part A of title IV of the Social Security Act ( 42 U.S.C. 601 et seq.); the national service plan submitted by the corresponding State Commission on National and Community Service under section 178 of the National and Community Service Act of 1990 ( 42 U.S.C. 12638 ); programs established under the Second Chance Act of 2007 ( 34 U.S.C. 60501 et seq.); employment and community development programs carried out by the Secretary of Housing and Urban Development; career and technical education programs authorized by the Carl D. Perkins Career and Technical Education Act of 2006 ( 20 U.S.C. 2301 et seq.); the continuum of care projects (relating to ending homelessness) carried out under applications submitted, by communities serving an area that is substantially similar to the covered area, under subtitle C of title IV of the McKinney-Vento Homeless Assistance Act ( 42 U.S.C. 11381 et seq.); and programs to support competitive integrated employment for individuals with disabilities, including programs of vocational rehabilitation services under title I of the Rehabilitation Act of 1973 ( 29 U.S.C. 720 et seq.) and the Ticket to Work and Self-Sufficiency Program carried out under section 1148 of the Social Security Act ( 42 U.S.C. 1320b–19 ); and assurances that— prior to the placement of an eligible worker in a program position, the local board will consult with the appropriate local labor organization, if any, representing employees in the covered area who are engaged in the same or similar work as that proposed to be carried out by the eligible worker, to prevent the displacement and protect the rights of such employees; and the local board will comply with the nondisplacement provisions of subsection

(f)and the grievance procedures of subsection (g). For each local board, the performance accountability measures shall consist of the indicators described in paragraph

(2)and the levels described in paragraph (3). The indicators for the performance accountability measures shall consist of— the primary indicators of performance described in section 116(b)(2)(A)(i) of the Workforce Innovation and Opportunity Act ( 29 U.S.C. 3141(b)(2)(A)(i) ); the number of eligible workers placed in jobs created by the jobs program of the local board; for households with an eligible worker who participated in the program, the average increase in income by the end of such participation; and the percentage of program positions filled by eligible workers who were individuals with a barrier to employment. The local board shall reach agreement with the Secretary, acting in consultation with the Secretary of Education, on acceptable overall levels of performance for each indicator described in paragraph

(2)for each year covered by the application submitted under subsection (b). In reaching such agreements, the local board and the Secretaries shall take into account— the purpose of this Act, as described in section 2, by seeking to provide job opportunities for as many eligible workers as possible; and the factors described in section 116(b)(3)(A)(v) of the Workforce Innovation and Opportunity Act ( 29 U.S.C. 3141(b)(3)(A)(v) ), except that references in that section to a State shall be considered to be references to a local area. The local board shall provide information specifying the board's level of performance on the performance accountability measures specified in this subsection, including disaggregated data specified under subparagraph (B), as part of the local board performance reports established under section 116(d) of the Workforce Innovation and Opportunity Act ( 29 U.S.C. 3141(d) ). Each such performance report shall include data specifying the board’s level of performance with respect to individuals with barriers to employment, disaggregated by each subpopulation of such individuals, and by race, ethnicity, sex, and age. If a local board fails to meet performance accountability measures specified in subsection (c)— the local board shall develop a performance improvement plan; and the Secretary and State board may provide technical assistance, including assistance in the development of the performance improvement plan. If a local board fails to meet the performance accountability measures for at least 2 consecutive years, the Secretary may enter into an agreement with a community-based organization to carry out a jobs program serving the corresponding local area in place of the local board. If a local board fails to submit an application under subsection

(b)for a year, the Secretary may enter into an agreement with a community-based organization to carry out a jobs program serving the corresponding local area in place of the local board. A community-based organization that seeks to carry out a jobs program in place of a local board as described in paragraph

(2)or

(3)shall submit an application to the Secretary. The Secretary shall select, on a competitive basis, community-based organizations to carry out jobs programs as described in paragraphs

(2)and

(3)for a local area. The Secretary shall select such organizations based on their ability to implement a jobs program that achieves the highest levels on the performance accountability measures, taking into account the factors described in section 116(b)(3)(A)(v) of the Workforce Innovation and Opportunity Act ( 29 U.S.C. 3141(b)(3)(A)(v) ), except that references in that section to a State shall be considered to be references to a local area, and meets the other requirements specified in this Act. After the initial selection under subparagraph (B), the Secretary shall, every 4 years, hold a new competition to select community-based organizations to carry out jobs programs for local areas. The local board for such an area may also submit an application in such competition. This Act shall apply to a community-based organization selected under this paragraph as if the organization was the local board for the corresponding local area. A participating employer shall be selected by a local board. An entity who seeks to be a participating employer shall enter into an agreement with the local board to act as a participating employer under this subsection. To select participating employers (including the renewal of such a selection), the local board shall take into account the considerations, and comply with the requirements, specified in subparagraphs

(B)through (H). The local board shall provide an opportunity for eligible workers to provide feedback on participating employers, and shall take this feedback into account when determining whether to renew the selection of an employer. The local board shall consider input from labor organizations to select participating employers. For a site of employment at which workers are covered by a collective bargaining agreement, the local board shall not place a program participant in a program position at the site without the consent of all labor organizations representing workers at such site. The local board shall consider whether the employer under consideration is proposing or providing an experience that will help eligible workers secure long-term employment after the program position ends, either with the participating employer or another employer. The local board shall consider whether the employer is offering program positions in which the work to be performed is designed to have a positive impact on the communities in the local area served through the jobs program, and shall develop criteria for that positive impact based on input from members of such communities. The local board shall also provide an opportunity for such communities to provide input on how a participating employer should be selected and whether specific employers should be selected, and shall take this input into account when selecting a participating employer. The local board shall consider whether the employer is offering program positions that lead to employment in an in-demand industry sector or occupation. The local board shall consider whether the employer is— a worker-owned enterprise; or a small business concern owned and controlled by women, a small business concern owned and controlled by socially and economically disadvantaged individuals, a small business concern owned and controlled by veterans, or a qualified HUBZone small business concern, as those 4 terms are defined in section 8(d)(3) of the Small Business Act ( 15 U.S.C. 637(d)(3) ). The local board may consider other factors, besides the factors explicitly stated in this paragraph, that are relevant to achieving the performance accountability measures and other requirements specified in this Act. The participating employer shall— provide wages for each eligible worker in a program position at a rate that— is not less than the greatest of the 3 rates described in subsection (h)(1)(B); and is the same as the customary rate paid by the employer for the same or similar work performed by other employees who— are not eligible workers in program positions; are similarly situated in similar occupations by the same employer; and have similar training, experience, and skills; provide benefits for each eligible worker in a program position at the same level as is provided to other employees who are not eligible workers in program positions; ensure that the site of employment is a location where an eligible worker in a program position who is an individual with a disability, as defined in section 7 of the Rehabilitation Act of 1973 ( 29 U.S.C. 705 ), interacts with other persons who are not such individuals with disabilities (not including supervisory personnel or individuals who are providing services to such worker) to the same extent as individuals who are not such individuals with disabilities and who are in comparable positions interact with other persons; offer opportunities for advancement to eligible workers in program positions, as appropriate, that are similar to those for other employees who are not eligible workers in program positions; and fulfill legal and administrative duties including payroll processing, tax withholding and documentation, and meeting liability requirements such as workers’ compensation requirements. The local board shall provide payment to the participating employer for all eligible costs described in subsection

(h)for wages and compensation provided by the employer for eligible workers in program positions, minus the employer share described in subsection (i). The local board may enter into an agreement with the participating employer under which the employer provides on-the-job training or customized training to eligible workers, and, subject to subsection (h)(3), the local board provides payment to reimburse the employer for the cost of providing the training described in the agreement. The participating employer shall not place an eligible worker hired for a jobs program in a position under this Act if— employing such individual will result in the layoff or partial displacement (such as a reduction in hours, wages, or employment benefits) of an existing employee (as of the date of the hiring) of the employer; such individual will assume any of the duties or responsibilities of an employee who is on strike; employing such individual infringes upon the promotional opportunities of an existing employee (as of the date of the hiring) of the employer; or such individual will perform the same work or substantially the same work as that performed by any individual, employed by the employer at the site of employment, who— has been laid off or partially displaced (as such term is described in subparagraph (A)); and has not been offered to be restored to the position the employee had immediately prior to being laid off or partially displaced. The participating employer may not make placements in a program position by constantly rotating new eligible workers into a permanent position temporarily, except in circumstances in which— the employer reasonably intends to promote each such eligible worker to a different permanent position within the employer’s business at the end of that worker’s employment in the program position; or the program position is part of an on-the-job training program that leads to a recognized postsecondary credential. A participating employer that is a government agency may not place an eligible worker hired for a jobs program in an existing position (as of the date of the hiring) that is subject to civil service laws of a Federal, State, or local government. A participating employer that is not a government agency may not use funds provided under this Act to provide services or carry out other functions that are customarily provided by a unit of State government or general local government. No more than 10 percent of the employees of a participating employer may be in program positions funded under this Act, except as provided in any of subparagraphs

(B)through (E). A participating employer with fewer than 10 employees may employ 1 individual in a program position funded under this Act. A participating employer with more than 1,000 employees may employ not more than 100 individuals in program positions funded under this Act, unless the employer obtains permission under subparagraph (D). A local board may grant permission for a participating employer to have a higher percentage or number of employees in program positions than is allowed under subparagraph

(A)or (C)— under the circumstance described in subclause

(I)or

(II)of clause (ii); or under the circumstance described in clause (ii)(III), with the consent of all labor organizations representing workers at the site involved. The circumstances described in this clause are any of the following: A circumstance in which the most recent 3-month average of the unemployment rate in the covered area is not less than 8 percent. A circumstance in which the employer is a worker-owned enterprise and worker-ownership is widely available to the employer’s employees, including eligible workers in program positions. A circumstance in which a collective bargaining agreement covers eligible workers in program positions at a site of employment. An employer granted the permission described in clause

(i)under the circumstance described in clause (ii)(I) may be granted such permission for a term of not more than 2 years, subject to subclause (II), regardless of whether the unemployment rate in the covered area falls below 8 percent during that 2-year period. If the permission is granted under a circumstance described in clause (ii)(I) and is scheduled to expire in 3 months or less, and if the most recent 3-month average of the unemployment rate in the covered area is not less than 8 percent, the local board may renew the permission for another term described in subclause (I). If the employer is a Federal, State, or local agency, the limitations described in subparagraphs (A), (B), and

(C)shall be applied separately to each unit within that agency. The requirements of this paragraph may be modified under section 5(e). For purposes of this paragraph and subsection (g), the term participating employer shall not include a community-based organization that acts as an employer of record and (even if a community-based organization is so acting) shall include the employer at the site. The local board shall establish and maintain a procedure for the filing and adjudication of grievances from participants, labor organizations, and other interested individuals concerning participating employers, including grievances relating to proposed placements of eligible workers with such employers. Except for a grievance that alleges fraud or criminal activity, a grievance shall be made not later than 1 year after the date of the alleged occurrence of the event that is the subject of the grievance. A hearing on any grievance conducted under this subsection shall be conducted not later than 30 days after the filing of such grievance. A decision on any such grievance shall be made not later than 60 days after the filing of such grievance. In the event of a decision on a grievance that is adverse to the party who filed the grievance, or 60 days after the filing of such grievance if no decision has been reached, such party shall be permitted to submit such grievance to binding arbitration before a qualified arbitrator who is jointly selected and independent of the interested parties. If the parties cannot agree on an arbitrator, the Secretary shall appoint an arbitrator from a list of qualified arbitrators within 15 days after receiving a request for such appointment from one of the parties to the grievance. An arbitration proceeding shall be held not later than 45 days after the request for such arbitration proceeding, or, if the arbitrator is appointed by the Secretary in accordance with subparagraph (A)(ii), not later than 30 days after the appointment of such arbitrator. A decision concerning a grievance shall be made not later than 30 days after the date such arbitration proceeding begins. Except as provided in clause (ii), the cost of an arbitration proceeding shall be divided evenly between the parties to the arbitration. If a participant, labor organization, or other interested individual described in paragraph

(1)prevails under a binding arbitration proceeding, the other entity that is a party to such grievance shall pay the total cost of such proceeding and the attorneys’ fees of such participant, labor organization, or individual, as the case may be. If a grievance is filed regarding a proposed placement of an eligible worker with a participating employer, such placement shall not be made unless the placement is consistent with the resolution of the grievance pursuant to this subsection. Remedies for a grievance filed under this subsection include— suspension of payments for the participating employer; termination of such payments; prohibition of the placement described in paragraph (5); in a case in which the grievance is filed by an individual eligible worker or program participant— the eligible worker’s selection to be a program participant, or the program participant’s reinstatement, as the case may be; and other changes in the terms and conditions of employment applicable to the individual; and in a case in which the grievance involves a violation of subsection

(f)and the employer of the displaced employee is the participating employer— reinstatement of the displaced employee to the position held by such employee prior to displacement; payment of lost wages and benefits of the displaced employee; reestablishment of other relevant terms, conditions, and privileges of employment of the displaced employee; and such equitable relief as is necessary to correct any violation of subsection

(f)or to make the displaced employee whole. Suits to enforce awards under this subsection may be brought in any district court of the United States having jurisdiction of the parties, without regard to the amount in controversy and without regard to the citizenship of the parties. Subject to paragraph (2), for purposes of this Act, the eligible costs of providing wages and compensation shall be the eligible costs of providing the wages described in subparagraph (B), and the compensation described in subparagraph (C), for eligible workers. The eligible costs described in this subparagraph shall be the costs of providing wages at a rate that is the greatest of— the applicable minimum wage rate under section 6(a)(1) of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 206(a)(1) ) (not counting any rate authorized for employment under special certificates under section 14 of such Act ( 29 U.S.C. 214 )); the applicable State or local minimum wage rate; or a rate, calculated as an amount per hour, with the amount determined by dividing the poverty line for a family of 4 by 2,080. The eligible costs described in this subparagraph— subject to clause (ii), shall be nonwage expenses that are directly related to compensation for eligible workers, including— costs for employer payroll taxes; costs for employee benefits; costs to provide a national service education award for approved national service positions sponsored under section 129(i) of the National and Community Service Act of 1990 ( 42 U.S.C. 12581(i) ); and costs of fulfilling the duties described in subsection (e)(3)(E); and for each eligible worker, shall not exceed 20 percent of the eligible costs of providing the wages described in subparagraph (B). Subject to subparagraph (B), an eligible cost related to wages and compensation for a program position is an expense related to the first 12 months of the program position, subject to section 5(e). A local board may extend the 12-month period described in subparagraph

(A)for not more than an additional 12 months, subject to section 5(e), to the extent that such extension is necessary to cover the period of a program position that is part of an on-the-job training program that leads to a recognized postsecondary credential. The eligible costs of providing, or facilitating the provision of, supportive services and training services to eligible workers shall, in total, not exceed 20 percent of the total eligible costs of providing the wages described in paragraph (1)(B) to those eligible workers. The limit in subparagraph

(A)shall apply to the eligible costs for the total amount of supportive services and training services provided by a jobs program to all eligible workers, and shall not be construed to constitute a separate limit on the eligible costs for the supportive services and training services so provided to each eligible worker. The requirements of this paragraph may be modified under section 5(e). The eligible costs incurred by a local board of administering a jobs program under this section shall not exceed 10 percent of the total eligible costs of providing the wages described in paragraph (1)(B) to all eligible workers served by the jobs program. Of the maximum amount that the Secretary may make available under subparagraph

(A)with respect to a jobs program, the Secretary may reserve not more than 10 percent to administer the jobs program under this section. The requirements of paragraphs (2), (3), and

(4)may be modified under section 5(e). Except as provided in subparagraph (C), for a local board carrying out a jobs program in a covered area where the unemployment rate does not exceed 5 percent, the employer share of the eligible costs for wages and compensation shall be 33 percent. Except as provided in subparagraph (C), for a local board carrying out a jobs program in a covered area where the unemployment rate exceeds 5 percent, the employer share of those costs shall be the percentage (not less than 0 percent) obtained by subtracting— 3.3 percentage points for every half of a percentage point by which the unemployment rate in the covered area exceeds 5 percent; from 33 percent. With respect to an eligible worker who is in the second year of a program position that is part of an on-the-job training program that leads to a recognized postsecondary credential, the employer share of the eligible costs of wages and compensation for the project shall be 50 percent. That employer share for such a worker shall remain 50 percent regardless of any change in the unemployment rate of the covered area. The employer share under subparagraphs

(A)and

(B)of paragraph

(1)shall be recalculated for the local board once per calendar quarter, using the unemployment rate from the calendar quarter in the 12-month period preceding the calculation with the highest average unemployment rate in the covered area. The requirements of this subsection may be modified under section 5(e). The Secretary shall— oversee jobs programs funded under this Act to ensure that program requirements are being met, and verify that requests for Federal funding accurately reflect eligible costs; perform random, periodic audits to determine compliance with this Act; provide payments to local boards for the eligible costs described in subsection (h), minus any employer share of the eligible costs described in subsection (i); evaluate the performance of jobs programs carried out under this section; establish a clearinghouse to identify and publicize best practices used by local boards carrying out such jobs programs under this Act; provide technical assistance to local boards, and to State boards that are providing assistance to local boards, carrying out such jobs programs under this Act; conduct outreach to State boards, local boards, employers, and eligible workers to maximize opportunities for participation in jobs programs by eligible workers, in furtherance of the purpose of this Act as described in section 2, by providing job opportunities for as many eligible workers as possible; and administer this Act in consultation with the Secretary of Education, the Secretary of Housing and Urban Development, the Secretary of Health and Human Services, the Attorney General, and the Secretary of Veterans Affairs. In order to assist local boards in carrying out programs under this Act, a State board may— work with local boards to develop statewide strategies to implement programs under this Act; facilitate coordination of programs carried out under this Act with the activities carried out under— the plan submitted by the corresponding State board under subtitle A of title I of the Workforce Innovation and Opportunity Act ( 29 U.S.C. 3111 et seq.); the employment and training program established by the corresponding State under the supplemental nutrition assistance program established under the Food and Nutrition Act of 2008 ( 7 U.S.C. 2011 et seq.); the corresponding State program for temporary assistance for needy families established under part A of title IV of the Social Security Act ( 42 U.S.C. 601 et seq.); and the national service plan submitted by the corresponding State Commission on National and Community Service under section 178 of the National and Community Service Act of 1990 ( 42 U.S.C. 12638 ); assist local boards in the process of submitting applications under this Act; and provide technical assistance to local boards and employers participating in programs under this Act. The Secretary may provide a payment under this Act, as described in subsection (a), for a quarter on the basis of an advance estimate of expenditures submitted by the local board and any other investigation the Secretary may find necessary. The Secretary may reduce or increase a payment referred to in paragraph

(1)for a quarter as necessary to adjust for any overpayment or underpayment resulting from such a payment in a previous quarter. The Secretary may provide a reimbursement payment under this Act, as described in subsection (a), for a quarter on the basis of the actual expenditures of the local board, if payment has not already been made under this subsection for the same expenditure. For the purpose of carrying out this section, there is authorized to be appropriated and there is appropriated, out of any money in the Treasury not otherwise appropriated, such sums as may be necessary for fiscal year 2020 and each subsequent fiscal year.

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