(a) General. Each participant paid wages for employment activities,
allowances for classroom training or reimbursed for OJT or tryout
employment will be provided such benefits pursuant to section 142 of the
Act.
(b) Maximum wage rates for CSE. (1) The wages (including those
received from overtime work and leave taken during the period of
employment) paid to any CSE participant from funds under the Act shall
be limited to a full-time rate of $10,000 per year (or the hourly,
weekly, or monthly rate which, if full-time and annualized, would equal
a rate of $10,000 per year). Approved rates above $10,000 are fixed at
the CETA approved rate as of September 30, 1982, unless adjusted by the
Secretary.
(2) Fringe benefits payable from funds under the Act to any CSE
participant may not exceed those regularly afforded to similarly
employed non-JTPA workers.
(3) Davis-Bacon wages. All laborers and mechanics employed by
contractors or subcontractors in any construction, alteration, or
repair, including painting and decorating, of projects, buildings, and
works which are federally assisted under this Act, shall be paid wages
at rates not less than those prevailing on similar construction in the
locality as determined by the Secretary in accordnace with the Act of
March 3, 1931, popularly known as the Davis-Bacon Act, and the
implementing regulations in 29 CFR parts 1, 3, 5, and 7.
(c) Payment of allowances. (1) A basic hourly allowance for
regularly enrolled classroom training or services participants shall not
exceed the higher of the
State or Federal minimum hourly wage.
(2) Native American grantees are encouraged to submit allowance
payment designs which are less than in paragraph (c) (1) of this
section. Through innovative reimbursement systems the number of
participants should be maximized. The allowance payment system will be
described in the Master Plan and as an option may include dependent
allowances.
(3) Repayments. Native American grantees shall require participants
to repay the amount of any overpayment of allowances under this part,
except if the overpayment was made in the absence of fault on the part
of the participant. Where the Native American grantee requires
repayment, any overpayment not repaid may be set off against any future
allowance or other payments under the Act to which the participant may
become entitled.
(d) Combined activities. A primary activity is one in which a
participant is enrolled for more than 50 percent of scheduled time.
Participants enrolled in a primary activity for which wages are payable
and simultaneously in an activity for which allowances are payable may,
at the Native American grantee's option, be paid wages for all hours of
participation. A participant enrolled in a primary activity for which
allowances are payable may, at the Native American grantee's option, be
paid allowances for all hours of participation, except when OJT is the
non-primary component. However, in the latter case, before placing an
individual in such an activity, the Native American grantee shall
request a determination from the Internal Revenue Service as to whether
income from the non-primary component is taxable.
