(a) No currently employed worker shall be displaced by any
participant (including partial displacement such as a reduction in the
hours of nonovertime work, wages, or employment benefits).
(b) No participant shall be employed or job opening filled: (1) When
any other individual is on layoff from the same or any substantially
equivalent job, or
(2) When the employer has terminated any regular employee without
cause or otherwise reduced its workforce with the intention of filling
the vacancy so created by hiring a participant whose wages are
subsidized under the Act.
(c) Violations and sanctions. The Department will promptly review
and take appropriate action with regard to alleged violations of the
provisions of paragraphs (a) and (b) of this section. Procedures for the
investigation and resolution of violations are provided for under
subpart F of this part. Sanctions and remedies are provided for under
subpart G of this part.