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Code of Federal Regulations Pertaining to U.S. Department of Labor |
| Employees' Benefits |
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| Employment and Training Administration, Department of Labor |
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| Trade Adjustment Assistance for Workers Under the Trade Act of 1974 |
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| Reemployment Services |
20 CFR 617.25 - Limitations on training under Subpart C of this part.
- Section Number: 617.25
- Section Name: Limitations on training under Subpart C of this part.
The second sentence of amended section 236(a)(1) of the Act provides
that an adversely affected worker shall be entitled to have payment of
the costs of training approved under the Act paid on the worker's
behalf, subject, however, ``to the limitations imposed by'' section 236.
The limitations in section 236 which are implemented in this section
concern the restrictions on approval of training which are related
directly or indirectly to the conditions on training which are
approvable or on the funding of training costs.
(a) On-the-job training. The costs of on-the-job training approved
Subpart C of this part for a worker, which are paid from TAA funds,
shall be paid in equal monthly installments. Such costs may be paid from
TAA funds, and such training may be approved under subpart C of this
part, however, only if the State agency determines that:
(1) No currently employed individual is displaced by such eligible
worker, including partial displacement such as a reduction in the hours
of non-overtime work, wages, or employment benefits;
(2) Such training does not impair existing contracts for services or
collective bargaining agreements;
(3) In the case of training which would be inconsistent with the
terms of a collective bargaining agreement, written concurrence has been
obtained from the concerned labor organization;
(4) No other individual is on layoff from the same or any
substantially equivalent job for which such eligible worker is being
trained;
(5) The employer has not terminated the employment of any regular
employee or otherwise reduced the work force with the intention of
filling the vacancy so created by hiring the eligible worker;
(6) The job for which the eligible worker is being trained is not
being created in a promotional line that will infringe in any way upon
the promotional opportunities of currently employed individuals;
(7) Such training is not for the same occupation from which the
worker was separated and with respect to which such worker's group was
certified pursuant to section 222 of the Act;
(8) The employer certifies to the State agency that the employer
will continue to employ the eligible worker for at least 26 weeks after
completing the training if the worker desires to continue such
employment and the employer does not have due cause to terminate such
employment;
(9) The employer has not received payment under this Subpart C or
under any other Federal law for any other on-the-job training provided
by such employer which failed to meet the requirements of paragraphs
(a)(1) through (a)(6) of this section or such other Federal law; and
(10) The employer has not taken, at any time, any action which
violated the terms of any certification described in paragraph (a)(8) of
this section made by the employer with respect to any other on-the-job
training provided by the employer for which the employer has received a
payment under Subpart C of this part (or the prior provisions of Subpart
C of this part).
(b) Other authority and restrictions on funding--
(1) In general. Section 236(a) contains several provisions which
allow the costs of a training program approved under the Act to be
paid--
(i) Solely from TAA funds,
(ii) Solely from other public or private funds, or
(iii) Partly from TAA funds and partly from other public or private
funds,
but also precludes the use of TAA funds or funds under another Federal
law where such use of funds would result in duplication of payment of
training costs. Those authorities and restrictions are spelled out in
paragraph (b) of this section: Provided, that, private funds may not
include funds from sources personal to the individual, such as self,
relatives, or friends.
(2) Section 236(a)(5)(E) of the Act. (i) In general. Paragraph
(5)(E) of section 236(a) of the Act specifies one of the types of
training programs approvable under the Act, as including a program
(other than a training program described in section 236(a)(7) (paragraph
(b)(5) of this section)) for which all, or any portion, of the costs of
the training program are paid--
(A) Under any Federal or State program other than the Act, or
(B) From any source other than TAA funds.
(ii) Application. Paragraph (E) of section 236(a)(5) of the Act thus
authorizes prearrangements between cooperating State agencies
administering the TAA program and the authorities administering any
other Federal, State, or private funding source, to agree upon any mix
of TAA funds and other funds for paying the costs of a training program
approved under Subpart C of this part. Any such prearrangement must
contain specific commitments from the other authorities to pay the costs
they agree to assume.
(3) Section 236(a)(6) of the Act. (i) In general. Paragraph (6) of
section 236(a) of the Act is related to section 236(a)(5)(E) in
providing that the costs of a training program approved under the Act
are not required to be paid from TAA funds to the extent that such costs
are paid under any Federal or State program other than the Act or from
any source other than the Act.
(ii) Application. (A) Although paragraph (6) of section 236(a) of
the Act is expressed in terms of the costs not being required to be paid
from TAA funds, it authorizes the mixing of TAA funds and funds from any
other Federal, State or private source. Therefore, sharing the future
costs of training is authorized where prior costs were paid from another
Federal, State
or private source, but this does not authorize reimbursement from TAA
funds of any training costs which were incurred and for which payment
became due prior to the approval of the training program under Subpart C
of this part. In utilizing the authority under paragraph (b)(3) of this
section for sharing training costs, prearrangements shall be entered
into as required under paragraph (b)(2) of this section before any TAA
funds are obligated.
(B) Paragraph (6) of section 236(a) contains a special restriction
on the authority derived thereunder to use TAA funds in sharing training
costs. Therefore, before approving any training program under Subpart C
of this part, which may involve sharing of the training costs under the
authority of paragraph (b)(3) of this section, the cooperating State
agencies for the TAA program shall require the worker to enter into a
written agreement with the State under which TAA funds will not be
applied for or used to pay any portion of the costs of the training the
worker has reason to believe will be paid by any other governmental or
private source.
(4) Section 236(a)(4) of the Act. (i) In general. (A) Paragraph (4)
of section 236(a) of the Act (paragraph (3) of section 236(a) before
August 23, 1988) continues to provide, as it did before the addition of
paragraphs (5)(E), (6), and (7) to section 236(a), that:
(1) When the costs of training are paid from TAA funds under subpart
C of this part, no other payment for such costs of training may be made
under any other Federal law; and
(2) When the payment of the costs of training has already been made
under any other Federal law, or the costs are reimbursable under any
other Federal law and a portion of the costs has already been paid under
such other Federal law, payment of such training costs may not be made
from TAA funds.
(B) Paragraph (4) of section 236(a) also requires that: The
provisions of paragraphs (b)(4)(i) (A)(1) and (A)(2) of this section
shall not apply to, or take into account, any funds provided under any
other provision of Federal law which are used for any purpose other than
the direct payment of the identical costs incurred in training the
adversely affected worker under the TAA Program, even if such other use
has the effect of indirectly paying or reducing any portion of the costs
involved in training the adversely affected worker.
(ii) Application. (A) Although the prohibition on duplicate payments
in the first part of section 236(a)(4) remains fully implemented in this
section, the second part of section 236(a)(4) on the sharing of costs
from TAA funds and other Federal fund sources is modified by the
explicit provisions of paragraphs (5)(E) and (6) of section 236(a), as
set forth in paragraphs (b)(2) and (b)(3) of this section.
(B) When the direct costs of a training program approvable under
subpart C of this part are payable from TAA funds and are also wholly or
partially payable under another Federal law, or under any State law or
from private, nongovernmental sources, the TAA Program agencies shall
establish procedures which ensure that TAA funds shall not be utilized
to duplicate funds available from another source, but this preclusion of
duplication does not prohibit and shall not discourage sharing of costs
under prearrangements authorized under paragraphs (b)(2) and (b)(3) of
this section.
(C)(1) Therefore, pursuant to paragraph (4) of section 236(a),
paragraph (b)(4) of this section continues to prohibit duplicate payment
of training costs, which is consistent with the general prohibition
expressed in subpart C of this part, against any use of TAA funds to
duplicate payment of training costs in any circumstances. Paragraph
(b)(4) of this section also continues to prohibit taking into account,
in determining whether training costs are payable from TAA funds, any
payments to the worker under any other Federal law which may have the
effect of indirectly paying all or a portion of the training costs. Such
indirect payments include Veterans Educational Assistance, Pell Grants,
and Supplemental Educational Opportunity Grants, which are paid to the
individual. However, any payments to the individual under these programs
are deductible from TRA payable to the individual under
Sec. 617.13(c)(2).
(2) When payments of Veterans Educational Assistance, Pell Grants,
and Supplemental Educational Opportunity Grants are made to the training
provider, instead of the individual, and are used for training costs,
such payments shall be taken into account as direct payment of the
training costs under other Federal law for the purposes of this section.
(5) Section 236(a)(7) of the Act. (i) In general. Paragraph (7) of
section 236(a) of the Act provides that a training program shall not be
approved under the Act if--
(A) all or a portion of the costs of such training program are paid
under any nongovernmental plan or program,
(B) the adversely affected worker has a right to obtain training or
funds for training under such plan or program, and
(C) such plan or program requires the worker to reimburse the plan
or program from funds provided under the Act, or from wages paid under
such training program, for any portion of the costs of such training
program paid under the plan or program.
(ii) Application. Paragraph (7) of section 236(a), which is
implemented in paragraph (b)(5) of this section, reinforces the
prohibition in Sec. 617.22(h) against approval of a training program
under subpart C of this part if the worker is required to pay a fee or
tuition. The provisions of paragraph (b) and paragraph (h) of this
section shall be given effect as prohibiting the approval under subpart
C of this part of any training program if the worker would be requested
or required, at any time or under any circumstances, to pay any of the
costs of a training program, however small, from any TAA funds given to
the worker or from any other funds belonging to the worker from any
source whatever. Aside from this stringent limitation, however,
paragraph (7) of section 236(a) of the Act implicitly authorizes
training approved under this subpart C to be wholly or partly funded
from nongovernmental (i.e., employer, union or other private) sources.
[59 FR 936, Jan. 6, 1994]
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