References: Section 223(f) of the Trade Act of l974 (l9 U.S.C. 2293(f)) and 20 CFR 617.15(d). Background: Under the TAA and NAFTA-TAA programs, weekly trade readjustment allowances (TRA) may be available to adversely affected workers while they are participating in an approved training program. Section 233(f) of the Trade Act of l974 specifies that, when a worker is participating in an approved training program before the break, the worker is treated as being in training during a regularly scheduled break in training that does not exceed l4 days. This provision is implemented by 20 CFR 617.15(d), which provides that a scheduled break in the training program of l4 days or less will not disqualify a trainee for TRA during the break. However, if the scheduled break exceeds l4 days, as calculated in accordance with 20 CFR 617.15(d)(4), the individual will not receive TRA during such break. Since semester breaks of more than l4 days are quite common, this l4-day limitation creates hardship for many TAA and NAFTA-TAA participants. While some States and training providers have attempted to accommodate this limitation by scheduling activities for affected workers that prevent a break in excess of 14 days, such efforts are not always feasible. Therefore, significant inequities result because the availability of income support may depend on the particular State and training institution where the individual participates. A Departmental review of the impact of Section 233(f) of the Trade Act, stimulated by complaints from TAA and NAFTA-TAA participants and their representatives, disclosed wide variations among the States in terms of the financial hardship imposed on dislocated workers as a result of the break in training provision. In some States, no TAA or NAFTA-TAA participants are affected while, in others, 80 percent or more of the trade- impacted dislocated workers are denied benefits during regularly scheduled semester breaks. Because of the financial hardship imposed by this provision and its inequitable impact among States, Senator Kerry (for himself and Senator Kennedy) and Congressman Olver have introduced bills (S. 556 and H. R. 1231, respectively) that would amend the Trade Act of 1974 to expand the allowable break from 14 days (as calculated under the interpretation set forth in 20 CFR 617.15(d)) to 45-calendar days. As an interim solution until such time as an amendment is enacted and the regulations are revised, the Department has developed new operating instructions to minimize both the number of individuals adversely affected and the degree of adverse impact on each of those individuals. Operating Instructions: These operating instructions are to be implemented pending enactment of an amendment to Section 233(f) of the Trade Act. It is the intent of the Department in issuing these revised operating instructions that States take active and aggressive steps to prevent TAA and NAFTA-TAA participants who are in training before the break and who continue training after the break from experiencing a semester break in training that exceeds 14 days (excluding Saturdays, Sundays, or official State or National holidays). This GAL is not intended to apply to summer breaks and other breaks between semesters that have normally been more than 45 days. Following are guidelines and suggested actions for ensuring that individuals are not disallowed benefits due to breaks of more than 14 days. (A) The State agencies should negotiate with training vendors that have regularly scheduled breaks of more than 14 days (as calculated under 20 CFR 617.15(d)) to resume classes earlier for TAA and NAFTA-TAA participants. If the training vendors are unable to comply, alternative vendors should be given preference in placing TAA and NAFTA-TAA participants. (B) If placement must be made at a vendor with a break longer than 14 days, the State agency is to encourage the vendor to arrange that special components of the training be developed and convened during the break. These special components must be integral to the attainment of the objectives of the overall training plan, and must be made part of that plan at the onset, and not simply to circumvent Section 233(f). Excluding summer breaks, in those instances when a break in training will exceed 14 days, the State agency must, prior to the break: (1) Advise the trainee in writing of the break in training provision and have the trainee sign an acknowledgement indicating an understanding and acceptance of the implications of the provision; and (2) Document its attempts to provide the participant with information and opportunities for acceptable training options that do not entail a break in training of more than 14 days. NOTE: Failure of the State agency to satisfy the above two conditions does not mean that the trainee is entitled to TRA during the break. There is no authority to waive the 14-day limitation of Section 233(f). Action Required: States are to implement the Operating Instructions of this GAL effective on the date of issuance. States are to inform all appropriate staff of the contents of this document.

Background: Program letters, or the five letter series, are considered temporary directives containing instructions or information of a short-term nature which complement one of the five parts of the ES Manual. Rather than rewrite and reissue expiring program letters which still contain relevant information or instructions, the expiration date is extended. Attached is a listing of program letters with extended expiration dates for the above period.

Reference: 20 CFR Part 655, Subparts D and E; 20 CFR Part 655, Subparts H and I; 20 CFR Subparts J and K; 20 CFR Part 656; Technical Assistance Guide (TAG) No.656 Labor Certifications; and ESPL No. 2-91. Background: Prevailing wage surveys and determinations are made by State employment security agencies in response to labor certification applications, labor condition applications and attestations filed by employers for the purpose of employing immigrant aliens and nonimmigrant aliens in H-1A nursing occupations, in H-1B specialty occupations, in H-2B temporary nonagricultural job opportunities and in off-campus employment of students on F-1 visas. The Department of Labor has significant enforcement responsibilities involving wages and other matters in administering the H-1A, H-1B, and F nonimmigrant programs. Recent enforcement actions have shown that SESAs and Regional Offices may not be interpreting and applying existing regulations and policy directives relating to prevailing wage procedures in an accurate and consistent manner. Accuracy and consistency in conducting prevailing wage surveys and making wage determinations protect the wages of U.S. workers and place the Department in the best position to bring enforcement actions against employers who do not fulfill their wage obligations under the H-1A, H-1B, and F nonimmigrant programs. The number of immigration programs administered by the Employment and Training Administration and the number of prevailing wage surveys and determinations have increased substantially in recent years accompanied by a decline in resources. This has prompted ETA to look at the most cost effective use of scarce resources devoted to developing prevailing wage information throughout the system. Operating experience shows that current regulatory requirements limit the ability of SESAs to use published surveys, and in some cases, impose impractical requirements on surveys conducted by SESAs. Planned regulation changes will address these issues. Action Required: State Administrators are requested to: A. Provide the attached policy and procedural guidance to appropriate staff. B. Instruct staff to follow these interim policies and procedures, along with those contained in TAG No. 656 in conducting prevailing wage surveys and in making prevailing wage determinations.

Background: Program letters or the five letter series, are considered temporary directives containing instructions or information of a short-term nature which complement one of the five parts of the ES Manual. Rather than rewrite and reissue expiring program letters which still contain relevant information or instructions, the expiration date is extended. Attached is a listing of program letters with extended expiration dates for the period April l, 1993 - April 30, 1993.

Background: Program letters, or the five letter series, are considered temporary directives containing instructions or information of a short-term nature which complement one of the five parts of the ES Manual. Rather than rewrite and reissue expiring program letters which still contain relevant information or instructions, the expiration date is extended. Attached is a listing of directives with extended expiration dates for the above period.

Action Required: a. Remove canceled GALs listed on Attachment A from your active files. While a GAL may be canceled, the GAL and any material transmitted with it may be retained as long as it is useful. b. Place the current checklist (Attachment B) at the front of the appropriate binder to serve as a source of reference.

Background: Program letters, or the five letter series, are considered temporary directives containing instructions or information of a short-term nature which complement one of the five parts of the ES Manual. Rather than rewrite and reissue expiring program letters which still contain relevant information or instructions, the expiration date is extended. Attached is a listing of directives with extended expiration dates for the above period.

References: Title I of the Emergency Unemployment Compensation Act of 1991, Public Law (P.L.) 102-164, as amended by P.L. 102-182, P.L. 102-244, P.L. 102-318, and P.L. 103-6; the Federal-State Extended Unemployment Compensation Act of 1970 (FSEUCA), as amended; 20 CFR Parts 615 and 617; GAL 12-92 and Changes; GAL 7-93; UIPL 9-92 and Changes; the Trade Act of 1974; and GAL 10-92. Revised Interpretation: Sections 102(b)(2)(A)(v)(II) and (III) of the EUC Act of 1991, as amended, define the unemployment rates and the period of time to which the rates apply that are used by the Department in the determination of whether a 7-percent period or 6.8-percent period exist. On July 26, 1993, the Department announced a revised interpretation of the requirements of Sections 102(b)(2)(A)(v)(II) and (III), EUC Act of 1991. The revised interpretation is that a "7-percent period" will be in effect when the national rate of total unemployment (seasonally adjusted) for each of the two most recent months is less than 7 percent, rather than in effect when the average of the two months' rates is less than 7 percent. Likewise, a "6.8-percent period" will be in effect when the national rate of total unemployment (seasonally adjusted) for each of the two most recent months' is less than 6.8 percent, rather than when the average of the two month's rates is less than 6.8 percent. Technical Clarification: a. Effective Date of Section 101(e). Title I of the EUC Act of 1991 has been amended several times including the amendments made by Section 101(d) of the EUC Amendments of 1992 (P.L. 102-318). Section 101(d) of the EUC Amendments of 1992 added a new sentence to paragraph (1) and a new paragraph (2) titled "Weeks of Benefits During Phase-out" to Section 101(e) of the EUC Act. The effective date of the changes to Section 101(e), which imposed requirements specific to weeks occurring during the phaseout of the EUC program, was not distinguished from other requirements contained in Section 101 of the EUC Amendments of 1992, which were made applicable to weeks beginning after June 13, 1992. The Employment and Training Administration (ETA) issued controlling guidance for the States and State agencies in the operating instructions in GAL 4-92, Change 4, for implementation of the Unemployment Compensation Amendments of 1992 (enacted July 3, 1992). In GAL 4-92 the effective date for weeks to which the requirements of Section 101(e)(2) of the EUC Act apply is shown as the date of the first week beginning after the last week during which new claims could be determined eligible under the EUC program. This manner of indicating the effective date of the provision was continued with the consolidation of the Attachments to GAL 4-92 in GAL 12-92, dated September 11, 1992, and subsequent changes to GAL 12-92, notably Change 3, which changed the March 6 date to October 2 as the end of the program for initial claims. It is this Department's interpretation that the title and language of Section 101(e), and the legislative history and congressional intent clearly indicate that the requirements of paragraph (2) of Section 101(e) (like the requirements of paragraph (1)) apply to only those weeks of unemployment occurring during the phaseout of the EUC program. The affected weeks are those beginning October 3, 1993 through January 15, 1994. For weeks of unemployment beginning before October 3, 1993, for which an EB period is in effect in a State, the provisions of Sections 101(b)(1) and 102(b)(3) of the EUC Act of 1991 continue to apply. b. Governor's Election to Trigger Off EB. Section 101(e)(1) of the EUC Act provides authority to the Governor of a State (if State law permits) to elect to trigger off an extended compensation period in order to provide benefits under the EUC program. The time permitted for this election is being changed from 10 days to "as soon as is administratively feasible." It is this Department's opinion that it is within the discretion of the Governor to delegate the authority to make the election to the head of the SESA or some other State official, if authorized by State law. Evidence of such a delegation is to be supplied to the Department as soon as possible after the delegation. Changes to Operating Instructions: The operating instructions in GAL 12-92 (including Attachments A, B, and C) and subsequent Changes are issued to the States and cooperating State agencies and constitute the controlling guidance provided by the Department of Labor in its role as the principal in the EUC program. As agents of the United States, the States and cooperating State agencies may not vary from the operating instructions in GAL 12-92 and all Changes without the prior approval of the Department of Labor. The following changes are made to Attachment A of GAL 12-92. a. On page 5 of Attachment A, subclauses (ii) and (iii) of Section I.C.3.f. are removed and new subclauses (ii) and (iii) are substituted to read as follows: (ii) The requirements of this subclause are met for any week if the national rate of total unemployment (seasonally adjusted) for each of the two most recent calendar months (not averaged) for which data are published before the close of such week is at least 6.8 percent, but is less than 7 percent, (but does not meet the requirements of the immediately following subclause). (iii) The requirements of this subclause are met for any week if the national rate of total unemployment (seasonally adjusted) for each of the two most recent calendar months (not averaged) for which data are published before the close of such week is less than 6.8 percent. b. In Section III.E.5. (page 35), delete "Within 10 calendar days" at the beginning of the first sentence and insert "As soon as is administratively feasible." After "Governor of a State" in the first paragraph, enter "(or Governor's designee)." After "Governor" at the end of the first sentence of the second paragraph, enter "(or Governor's designee)." After the second paragraph add the following new paragraph. "The Governor may delegate authority to make the election to the head of the State employment security agency or some other State official, in accordance with authority provided by State law. Evidence of such a delegation is to be supplied to the Department as soon as possible after the delegation. A new delegation of authority when a new Governor takes office is not necessary unless required by State law. Evidence of a new delegation of authority must be supplied to the Department if the person originally (or subsequently) delegated is changed." Action Required: SESA Administrators shall: a. Provide the above operating instructions to appropriate staff; b. Issue a public notice in the appropriate news media in the State rescinding any previous notice announcing the reduction in duration; c. Begin computing new EUC claims to reflect duration up to 26/20 weeks; d. Begin redetermining EUC claims effective on and after July 11, 1993, to reflect durations up to 26/20 weeks, and complete them as soon as possible after receipt of this Change 4. Any State that has individually triggered to a lower level after July 10, should exercise caution to ensure redetermination of entitlement to the correct duration in effect at the time of the new EUC claim. Reimbursement for these redeterminations will be at the usual 20 minute rate; and, e. Identify each individual who chose to file a new claim for regular benefits instead of an EUC claim, under Section 101(f) of P.L. 102-318, on a claim effective between July 11, 1993, and date of implementation of the instructions in this directive. These individuals must be notified of the correct potential monetary entitlement to which they have a right under the EUC program and given an opportunity to change the election. Such notifications must be completed immediately after receipt of this Change 4.

References. Executive Orders 12073 and l0582; 20 CFR Parts 651 and 654. Background. Under Executive Orders 12073 and 10582, the Secretary of Labor is required to classify LSAs and disseminate this information for the use of all Federal agencies in directing procurement activities and in locating new plants or facilities. The LSAs are designated to help direct the Federal government's procurement dollars into those areas where unemployment is the highest. Employers who agree to perform a "substantial portion" of work in LSAs are eligible for preference in the award of procurement contracts and grants. The Department of Labor regulations for classifying LSAs are at 20 CFR Parts 651 and 654. The regulations were published in the Federal Register on January 5, 1979, (44 FR 1688). These regulations were modified and published in the Federal Register on April 12, 1983, (48 FR 15615). Revised regulations to add Metropolitan Statistical Areas and Primary Metropolitan Statistical Areas were published in the Federal Register on June 21, 1988. Burden Hour Estimates. The estimated burden for completing a petition is one hour. The estimated burden includes time for reviewing instructions, gathering and maintaining data needed, and completing and reviewing the information. Comments regarding this estimate, or another aspect of the data collection, including suggestions for reducing the burden should be sent to the U.S. Employment Service, U.S. Department of Labor, 200 Constitution Avenue N.W., Room N-4470, Washington, D.C. 20210, and/or to the Office of IRM Policy, 200 Constitution Avenue, N.W., Room N-1301, Washington, D.C. 20210 (Paperwork Reduction Project 1205-1207). Office of Management and Budget (OMB) Approval. The reporting requirements for classification of labor surplus areas have been approved by the OMB according to the Paperwork Reduction Act of 1980, under OMB approval No. 1205-1207, expiration date June 30, 1998. Action Required. SESAs should provide this information and classification procedures to appropriate staff.

References: Titles I and II of the Emergency Unemployment Compensation Act (EUC Act) of 1991 (Public Law (P.L.) 102-164), as amended by P.L. 102-182, P.L. 102-244, P.L. 102-318, and the Emergency Unemployment Compensation Amendments of 1993, P.L. 103-6; the Federal-State Extended Unemployment Compensation (FSEUCA) Act of 1970, as amended by P.L. 102-318; GAL 10-92; GAL 12-92 and Changes 1-4 (57 Fed. Reg. 54106, 58 Fed. Reg. 34484); UIPL 9-92 and Changes 1-5; UIPL 45-92 (57 Fed. Reg. 47871, 47873); GAL 7-93, dated March 5, 1993; 20 CFR Part 615; ET Handbook 392; ET Handbook 399. Background: P.L. 102-318 and P.L. 103-6 amended several sections of the EUC Act of 1991 and the FSEUCA. However, this letter will focus on the provisions that are effective with respect to weeks beginning after October 2, 1993. Section 2(b) of P.L. 103-6 amended Sections 102(f) and 106(a) of the EUC Act of 1991 to end the EUC program, with respect to new EUC claims, after October 2, 1993. The EUC program will be phased out between October 3, 1993 and January 15, 1994. (The phase-out period.) The phase-out period covers claimants who established their EUC claim effective prior to October 3, 1993. The amendments to Section 101(e) of the EUC Act of 1991 terminate the Governor's option to elect to trigger off an extended benefit (EB) period (with respect to any EB period beginning after October 2, 1993) and provides, instead, that individuals eligible under both the EB and EUC programs shall be paid for weeks of unemployment beginning after October 2, 1993, under the program where the greater entitlement exists. This requirement necessitates special handling of such claims to determine the appropriate program for payment. Controlling Guidance: The interpretations in these EUC operating instructions are issued to the States and cooperating State agencies as guidance provided by the Department of Labor in its role as the principal in the EUC program and supplement GAL 12-92 and Changes 1-2 (57 Fed. Reg. 54106) and GAL 7-93 (dated March 5, 1993). As agents of the United States, the States and cooperating State agencies may not vary from the operating instructions in this document (or subsequent or supplemental operating instructions) without the prior approval of the Department of Labor. Eligibility During Phaseout of EUC Program: The EUC program is scheduled to phase-out after October 2, 1993, and no EUC will be paid on any new claim to establish an EUC account effective after that date. Individuals who established an EUC claim effective before October 2, 1993, will continue to be eligible for any week thereafter if otherwise eligible for EUC. However, under no circumstances will any payments of EUC be made for any week beginning after January 15, 1994. Payment of the Greater of EB or EUC Entitlement: Section 101(d)(2) of P.L. 102-318 amended the EUC Act by adding a new subsection 101(e)(2) to provide that an individual with EB entitlement, whether or not the individual applies therefor, in a State in an EB period after October 2, 1993, and who has a EUC account balance shall receive, for weeks of unemployment beginning after October 2, 1993, payments under the program, either EUC or EB, under which the individual's monetary entitlement is the greater. This provision requires that EUC shall be paid only to an individual whose potential EUC benefits are greater than the EB entitlement (maximum benefit amount), as of the beginning of the first week beginning in the EB eligibility period for such individual, whether a claim for EB has been filed or not. The intent of this provision is to provide the individual with the greater level of extended compensation available for weeks of unemployment beginning during the individual's EB eligibility period. Therefore, to determine the "greater" benefit level available to the claimant, the State agency must determine the maximum monetary amount of EUC or EB benefits that is potentially payable to the individual. This means that if the end of the EUC program (January 15, 1994), the end of the individual's benefit year, or rights to regular benefits, will prevent the individual from receiving the level of benefits determined under the provisions of Section 102(b) of the EUC Act or State law provisions in conformity with Section 202(b), FSEUCA, the State agency must make a one-time determination specific to the individual's situation based on the actual potential maximum benefit amount that could be payable if all other eligibility requirements are met. No redetermination of the "greater" level of benefits available is made as benefits subsequently paid under the required program reduce the benefit balance. When a State is in an EB period and the potential EB and EUC entitlements are equal, the State shall pay EB. To determine the program under which the claimant is to be paid, the State must examine each individual's specific situation as follows: A. Claimant Receiving EUC Based on a Prior Benefit Year Under Section 101(f) of the EUC Act Effective for Weeks Beginning After July 3, 1992. A claimant who is receiving EUC based on a prior benefit year, having postponed establishing a new benefit year for regular benefits, is not an "exhaustee" for EB purposes. Additionally, the claimant does not have an "applicable benefit year" for EB purposes, as the benefit year upon which the EUC is based ended prior to the beginning of the EB period. Therefore, no determination of "greater" entitlement is appropriate. Such an individual, who is not eligible for EB, will remain potentially eligible for EUC under the provisions of Section 101(f) of the EUC Act. B. Claimant Receiving EUC Based on a Current Benefit Year. A claimant who is receiving EUC based on a current benefit year is an "exhaustee" for EB purposes. Therefore, the State must determine the claimant's EB entitlement in accordance with State law provisions which conform to Section 202(b), FSEUCA, and shall pay either EUC or EB for weeks of unemployment beginning after October 2, 1993, whichever the monetary entitlement is the greater, as explained above. When the current benefit year upon which the EUC or EB is based ends, the State agency must further review the claimant's specific situation as follows: (1) When "Greater" Entitlement is under the EUC Act. When a claimant's "greater" entitlement is under the EUC program, and the current benefit year ends and the claimant has rights to establish a new benefit year for regular benefits, Section 101(f) of the EUC Act applies and the claimant has an option to continue to receive EUC, on the existing EUC claim, or file for regular benefits; (2) When "Greater" Entitlement is under the FSEUCA. When the claimant's "greater" entitlement is under the EB program, and the current benefit year ends and the claimant has rights to regular benefits, the claimant ceases to be an "exhaustee" for EB purposes and has no further rights to EB. Such an individual has no option to postpone establishing a new benefit year for regular compensation under the provisions of Section 101(f) of the EUC Act, as the requirements of Section 101(e) which deny EUC to individuals with greater EB entitlement, effectively terminates all rights to EUC based on the prior benefit year. Therefore, such an individual has rights to establish a new benefit year for regular benefits only. Administrative Funding: When an EB period triggers "on" in a State between October 3, 1993 and January 15, 1994, the State agency will receive additional administrative funds to determine that an EUC claimant's "greater" entitlement exists under the EUC program as of the beginning of the first week beginning in the EB eligibility period for such individual or as of the beginning of the first week beginning in the high extended benefits eligibility period for such individual, as appropriate, through the contingency funding process. Staffyears earned will be computed by using a minutes per unit (MPU) value of no more than 20 minutes. States have the option to use a lesser value MPU if they deem appropriate. This information shall be included on line 13 of the regular UI-3 worksheet, Section B. Staffyears used for this activity should be included on line 1, Section A. Funding for this assessment when the "greater" entitlement is under the EB program is covered by the regular EB initial claims MPU. Funding for the denial of further EUC benefits, when the "greater" entitlement is under the EB program, is covered by the allocated non-monetary determination MPU. Action Required: State Administrators are requested to make a copy of this letter available to all appropriate staff.