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Background: The amendments to the Fair Labor Standards Act (FLSA) became effective October 1, 1996. Questions have been raised about two of the provisions of this legislation -- minimum wage increases and the new Opportunity Wage. As indicated in the guidance section below, the new Opportunity Wage does not apply to the JTPA. This provision permits the payment of $4.25 an hour during the first 90 consecutive calendar days after such employee is initially employed. Under this provision, no employer may take any action to displace employees (including for purposes of hiring individuals at the wage authorized). This subsection applies only to an employee who has not attained the age of 20 years. Guidance: The FLSA amendments must be viewed in terms of the Job Training Partnership Act (JTPA). The FLSA minimum rates referred to in section 142(a)(2) and (3) can only be the currently applicable rate set forth in section 6(a)(1) of the FLSA -- currently at $4.75. Section 142(a)(2) of the JTPA establishes that individuals in on-the-job training shall be compensated at the same rates as similarly situated employees or trainees, but in no event less than the higher of the rate specified in section 6(a)(1) of the FSLA or applicable State or local minimum wage law. Section 142(a)(3) of the JTPA establishes the requirements for payment of wages. Individuals employed in activities authorized under the Act shall be paid wages which shall not be less that the highest of: (A) the minimum wage under section 6(a)(1) of the FLSA, (B) the minimum wage under the applicable State or local minimum wage law, or (C) the prevailing rates of pay for individuals employed in similar occupations by the same employer. We believe the FLSA minimum rates referred to in section 142(a)(2) and (3) can only be the currently applicable rate set forth in section 6(a)(1) of the FLSA. It is significant that the Congress saw fit to amend the JTPA in 1992 in order to expressly authorize that exceptions set forth in section 6 of the FLSA regarding Puerto Rico and American Samoa to the rate set forth in FLSA 6(a)(1) be deemed to be the FLSA section 6(a)(1) rate for the purposes of section 142(a)(2) and (3) of the JTPA. The amendments to the FLSA did not contain any further changes to the JTPA regarding the new Opportunity Wage. The provision under the amendments to FLSA, MINIMUM WAGE INCREASE, applies to participants enrolled in programs operated under the JTPA. Effective on October 1, 1996, the amendments required that not less than $4.75 an hour must be paid for employment under the JTPA and not less than $5.15 an hour beginning September 1, 1997. Action Required: States are requested to provide this guidance to appropriate officials within the State and within the SDAs/SSAs to ensure that employment under the JTPA is paid at the appropriate level which began on October 1, 1996.

References: Wagner-Peyser Act, as amended (29 U.S.C. 49); 20 CFR 652 and 20 CFR 653; JTPA Sections 202, 252, 262, 302, and 601, as amended by the Job Training Reform Amendments Act of 1992; Training and Employment Guidance Letters (TEGL) Nos. 4-88 and 4-95. Background: The JTPA Titles II-A, II-C and III allotments, and the Wagner-Peyser preliminary planning estimates, are for the program period July 1, 1997, through June 30, 1998. The Title II-B allotments are for the CY 1997 summer program. These allotments and preliminary planning estimates will be published in the Federal Register. The JTPA allotments and the Wagner-Peyser ES preliminary planning estimates are part of the Fiscal Year 1997 funds appropriated in the Omnibus Consolidated Appropriations Act of 1997, P.L. 104-208, for PY 1997. These appropriations include $895,000,000 for Title II-A, a 5.29 percent increase from the PY 1996 Title II-A level; $871,000,000 for Title II-B, a 39.36 percent increase from the CY 1996 level; $126,672,000 for Title II-C, the same as the PY 1996 Title II-C level; $1,286,200,000 for Title III, a 17.79 percent increase from PY 1996; and $761,735,000 for allotments to States under Wagner-Peyser, the same as the PY 1996 level. JTPA/ES Joint Planning and Coordination Provisions: As plans are developed in accordance with relevant statutory provisions and schedules issued by the Department, States are reminded that particular attention needs to be given to the Governor's statement of goals and objectives for JTPA, and joint ES/JTPA planning initiatives consistent with Section 8(b) of the Wagner-Peyser Act, as amended. Program Emphasis: The basic mission of the employment and training system remains one of assisting all Americans to gain access to the information and other resources they need to obtain good jobs at decent wages, and to ensure that U.S. businesses have access to the skilled workers they need to successfully compete in a global economy. The entire network of partners at the State/local level and their service providers, as well as our private sector partners, make the system function and perform for those who need the services provided -- our customers. Building upon the accomplishments in 1996, the Employment and Training Administration (ETA) has identified a series of goals which will serve to maximize the contributions of its associates and its partners in serving America's workers and job seekers, as well as facilitate a smooth transition to possible new legislative mandates for the nation's employment and training system (see Attachment I).

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Waiver Request. The Department of Labor's Appropriations Act of 1997 (Public Law 104-208) contains three provisions relating to waivers - a general statutory/regulatory authority that applies to all States, a Work-Flex Partnership authority that permits up to six States to be selected for a demonstration program, and a continuation of the existing waiver authority that applies only to Oregon. The existing authority for Oregon impacts on the Job Training Partnership Act (JTPA); whereas, the other two authorities impact on both the Wagner-Peyser Act and the JTPA. The general statutory/regulatory and Work-Flex waivers authority(ies) will be discussed in detail in two separate forthcoming TEGLs (currently under review by OMB), including guidance for submittal of applications. The waiver requests must be forwarded to the Secretary of Labor via the appropriate Employment and Training Administration Regional Administrator by the Governor of a State. After the State's waiver request is approved, the Governor may delegate such authority to the operating agency head. a. Wagner-Peyser Act Waivers and State Plan Submissions. The Department may grant waivers to any of the statutory or regulatory requirements of Sections 8, 9 and 10 of the W-P Act (except for requirements relating to the provision of services to unemployment insurance claimants and veterans, and to universal access to basic labor exchange services without cost to job seekers [Section 105 of Department of Labor 1997 Appropriations Act]). Section 8 of the W-P Act sets forth the requirements relating to the State planning process. (1) If the State plans to submit a request for waiver of W-P Act provisions or regulations (applicable to Sections 8, 9 and 10), the State should notify the appropriate Regional Office by April 30 and indicate the statutory or regulatory waiver(s) to be requested. The State should also indicate when its waiver request will be submitted. Regional Offices will make every effort to act upon waiver requests by July 1, 1997, if they are received by April 30. To insure prompt responses, Regional Offices may respond with a partial approval in those instances where a request contains multiple parts and further information or clarification is required.

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To preserve the formatting of this document, it has been converted to PDF (Portable Document Format) to retain its original layout. Click on the link below to view, save, or print out the document.