TEGL_03-20.pdf

ETA Advisory File Text

EMPLOYMENT AND TRAINING ADMINISTRATION ADVISORY SYSTEM U.S. DEPARTMENT OF LABOR Washington D.C. 20210 CLASSIFICATION Office of Trade Adjustment Assistance CORRESPONDENCE SYMBOL OTAA DATE September 24 2020RESCISSIONS None EXPIRATION DATE Continuing ADVISORY TRAINING AND EMPLOYMENT GUIDANCE LETTER NO. 3-20 TO STATE WORKFORCE AGENCIES STATE WORKFORCE LIAISONS AFFILIATE AMERICAN JOB CENTER MANAGERS COMPREHENSIVE AMERICAN JOB CENTER MANAGERS STATE WORKFORCE ADMINISTRATORS STATE AND LOCAL WORKFORCE BOARD CHAIRS AND DIRECTORS STATE LABOR COMMISSIONERS STATE UI DIRECTORS RAPID RESPONSE COORDINATORS TRADE ADJUSTMENT ASSISTANCE LEADS FROM JOHN PALLASCH Assistant Secretary SUBJECT Determining the Availability of Suitable Employment Under the Trade Adjustment Assistance TAA Program s Final Rule to Return Trade-Affected Workers to Employment as Quickly as Possible 1.Purpose. To provide states guidance on determining the availability of suitable employment prior to the approval of training under the TAA Program s Final Rule. This determination will assist trade-affected workers reemployment as soon as possible following a separation. 2.Action Requested. States are required to implement the guidance set forth herein and must continue to administer the TAA Program in accordance with applicable regulations and administrative guidance. States must inform all appropriate staff of the contents of this guidance. 3.Summary and Background. a.Summary The Department published a Final Rule implementing the Trade Adjustment Assistance Reauthorization Act of 2015 on August 21 2020 85 FR 51896 . The Final Rule is codified at 20 CFR Part 618. Section 236 of the Trade Act of 1974 as amended establishes six criteria that trade-affected workers must meet prior to the approval of training under the TAA Program. These criteria are found in regulations at 20 CFR 618.610. Criterion 1 at 20 CFR 618.610 a 1 requires a finding that there is no suitable employment available for a trade-affected worker in either the commuting area or another area outside the commuting area to which the worker intends to relocate and there is no reasonable prospect of such suitable employment becoming available for the 2 worker in the foreseeable future. Suitable employment as defined at 20 CFR 618.110 means work of a substantially equal or higher skill level than the worker s past adversely affected employment and wages for such work that are not less than 80 percent of the worker s average weekly wage. Part-time temporary short-term or threatened employment is not suitable employment. In order to determine whether suitable employment is available the state must conduct an assessment of the trade-affected worker s knowledge skills and abilities as described in Subpart C of 20 CFR Part 618. A state will also need updated and accurate information of demand within the local labor market in order to make a determination. b. Background Historically under the TAA Program approximately half of all participants enroll in training. As shown in the Fiscal Year FY 2019 TAA Annual Report 25 percent of participants did not complete TAA approved training and participants who did not enroll in any training had employment and earnings outcomes higher than those who completed training but did not receive a credential but lower than those who completed training and earned a credential. The wage replacement rate for those who did not enroll in training and those who completed training that leads to a credential were nearly identical 89.6 percent and 89.9 percent respectively . This strongly suggests that states have been making inappropriate determinations related to whether there is suitable employment available to trade-affected workers. These determinations cause trade-affected workers to undergo training sometimes months or longer in duration for a de minimis increase in wage replacement. This guidance is being issued to ensure that states make more informed decisions about the prospects for suitable employment. This requires the case management staff to look deeper into labor market information LMI job posting and other data to determine the best path forward for the customer. TAA and other case managers must ask if there is or will be suitable employment in the near future. They must also determine if there is appropriate short- term training which can leveraged to develop competency and get the individual back to work. 4. Application. a. Assessments We strongly encourage the TAA Program staff to coordinate with other local workforce partners such as the Workforce Innovation Opportunity Act WIOA Wagner-Peyser and Vocational Rehabilitation to agree upon a uniform assessment process for all customers accessing an American Job Center whether in-person or remotely. This coordination will streamline the process for the customers and allow multiple programs to provide seamless services to the trade-affected worker. Various types of assessments can be used to determine a trade-affected worker s knowledge skills and abilities. Depending on the trade-affected worker an initial assessment described under 20 CFR 618.335 may be sufficient to determine the availability of suitable employment and whether training is appropriate. Other trade-affected workers will require comprehensive and specialized assessments as described at 20 CFR 618.345. Most trade-affected workers will not require training to return to suitable employment. 3 Instead these workers may benefit from rapid deployment of employment and case management services allowable under Subpart C of 20 CFR Part 618. b. Employment and Case Management Services States are instructed to make employment and case management services under sec . 235 of the Trade Act as amended available to trade -affected workers. As with the assessments in 4.a. above TAA Program staff should work with other workforce partners to conduct and track case management services in a single uni fied case management system wherever possible. Using a system - wide case management system will provide a citizen -centered approach that will ensure the partners track all services being provided to the trade -affected worker and allow for uninterrupted services. These services include assessments pre -vocational training individual and group career counseling and other services described in Subpa rt C of 20 CFR Part 618 such as workshops on networking interviewing resume writing and computer literacy. For many trade -affected workers the barrier to reemployment is not in their occupational skill set but with a lack of knowledge of current techn ology 1. Computer and technology literacy or many other skill deficiencies can be addressed and overcome through adult education partners as a precursor to reemployment or training . Many trade -affected workers return to employment after a short intensi ve provision of employment and case management services without a need for additional training. Rapid reemployment into suitable employment is always the preferred approach as this is the best outcome for the trade -affected worker and allows TAA and othe r workforce staff to focus limited resources on workers with more significant barriers to employment. c. Workforce Information TAA approved training must meet the six criteria established at 20 CFR 618.610 a 1 through 6 . The first of these criteria is that there is no suitable employment available to the trade -affected worker and there is no reasonable prospe ct of such suitable employment becoming available for the worker in the foreseeable future . In addition to any assessments of the trade -affected worker to determine whether suitable employment is available states must also have updated and accurate workforce information readily available on the current and projected occupational demands in the worker s commuting area. This information can be ob tained through various methods as described at 20 CFR 618.610 c 2 by measuring expected job market conditions using pertinent labor market data including but not limited to job order activity short -term projections data job vacancy surveys business visitation programs and local and regional strategic plans. This LMI should be documented in the trade -affected worker s case file. The TAA Final Rule goes on to say that the state should also work with the local workforce development boards LWDBs and their one -stop partners especially business team members to understand current labor market conditions and opportunities for work -based learning . In order to satisfy these criteria all relevant LMI job postings and third party job sites e.g. Zip Re cruiter Indeed Jobs.com etc. must be reviewed to confirm that there is no suitable employment within the commu ting area or another area outside the commuting area where the trade -affected worker intends to relocate . Only if no suitable employment or the prospect of such suitable employment is identified 1 AARP. 2015 . Improving Education and Training for Older Workers. Retrieved from www.aarp .org content dam aarp ppi 2015 improving -education -training -older -workers -AARP -ppi.pdf . 4 through all available resources does the proposed training program satisfy Criterion 1 at 20 CFR 618.610 a . d. Appropriate Training Additional requirements in meeting the six criteria established at 20 CFR 618.610 a 1 through 6 will be helpful in verifying that suitable employment or the prospect of such suitable employment is met . Criterion 2 at 20 CFR 618. 610 b emphasizes that for the trade -affected worker to benefit from appropriate tra ining the training must improve the worker s chances of obtaining employment than would occur without training. The training should also improve the trade -affected worker s chances of either earning higher wages than would otherwise be the case or that t he training wi ll place the worker on a pathway to do so. Criterion 5 at 20 CFR 618.610 e adds a new requirement directing states to review the trade -affected worker s initial assessment and the comprehensive and specialized assessment and individual em ployment plan if available to determine if the proposed training is appropriate based on the worker s current skills. As a required partner in the American Job Center Network the TAA Program s efforts to gather this information should always be done in cooperation with the state LWDBs local employers economic development agencies and the state s LMI unit. 5. Inquiries . For further information about the approval of training under the TAA Program states should visit taa.workforcegps.o rg and contact their appropriate Regional Office. 6. References . Chapter 2 of Title II of the Trade Act of 1974 as amended Pub. L. 93 -618 Trade Act codified at 19 U.S.C. 2271 et seq. and 20 CFR Part 618 85 FR 5189 6 August 21 2020 . 7. Attachment s . N A