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.

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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).

References: UIPL 45-92, dated August 20, 1992; UIPL 17-95, dated February 28, 1995; UIPL 30-96, dated August 8, 1996; and UIPL 37-96, dated August 8, 1996. Background: The Department of Labor interprets Federal law requirements pertaining to UI as part of its role in the administration of the Federal-State UI program. These interpretations are issued in UIPLs. This UIPL is issued to correct several technical errors which the Department has identified in four UIPLs. No Departmental interpretation of Federal law is changed by this UIPL. Technical Changes: a. UIPL 45-92: On page 23 of the Attachment I to the UIPL, in the first sentence of the third full paragraph, "new subsection (t) of Section 3306, FUTA" is changed to "Section 401(d)(1) of P.L. 102-318". b. UIPL 17-95: In Item 4.b. on page 2 of the UIPL, the word "voluntarily" is substituted for "voluntary" in the quote of Section 3304(a)(18), FUTA. In item 4.g. on page 7, first paragraph, the phrase "must be permitting the withholding Federal income tax" is changed to read "and the States must be permitting the withholding of Federal income tax". Also in item 4.g., the words "voluntary holding" in the second sentence of the third paragraph are changed to "voluntary withholding" and the words "as for payments" are changed to "for payments". c. UIPL 30-96: In the second sentence of the footnote on page 2 of the UIPL, "two cases involving UC" is changed to "two cases involving UC law." This change is made because characterizing the court cases in question as "involving UC" may imply that they addressed the payment of UC. Instead, they addressed the taxing provisions of Federal UC law. These taxing provisions are, however, entwined with the issue of coverage which UIPL 30-96 addresses. d. UIPL 37-96: Two changes are made to the draft language on page 13 of the UIPL relating to the intercept of food stamp overissuances. In Section 1(a) the words "child support obligations" are changed to "an uncollected overissuance of food stamps". In Section (1)(c), the word "of" is changed to "to". Also, on page 14, in the last sentence of item 10 of the UIPL, the first of the two appearances of the word "is" is deleted. Action Required: Please alert appropriate staff of these technical changes. Pen and ink changes should be made to the above referenced UIPLs as indicated.

References: Older Worker Bulletin 93-10, Eligibility of Amnestied Aliens; and Older Worker Bulletin 96-5, Minimum Eligibility Documentation Requirements. Background: Field Issuances recently disseminated revisions to the provisions for documentation of eligibility for participation in Job Training Partnership Act programs. These revisions apply to documentation of eligibility for SCSEP as well. The Field Issuances are attached for your information. Policy: SCSEP sponsors should inform local project operators that they should no longer accept the Numident printout for eligibility documentation purposes. Also, voter registration cards may no longer be used as documentation for U.S. citizen-ship, although they are acceptable as proof of residency.

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References: Older Worker Bulletins 90-6, 90-12, 93-3, 93-11, 94-2, 96-2; the Older Americans Act (OAA), Subsections 506(c) and (d) and the SCSEP regulation at 20 CFR Section 641.201. Background: The Equitable Distribution Report (ETA 8705) provides a basis for determining the collective progress made by sponsors toward an equitable distribution of program positions. Although future action by the Congress is uncertain, there will still be a Department of Labor administered SCSEP program after July 1, 1997. As part of the planning process for the next grant period, sponsors must prepare an equitable distribution report. This requirement is found at section 506(c) of the OAA and 20 CFR Section 641.201(c) of the Federal Regulations. Procedures for completion of this year's report are similar to those used in previous years, except for the new requirement for a signature from each sponsor (see section 5.a.(3) below) and the suspension of the requirement for the submittal of the Comparative Characteristics Report for this year. Also, PLEASE REVIEW attachment I Special Notes. Attachment II provides instructions for completing the report. Reporting Procedures: The equitable distribution report should be prepared by using the diskette provided with OW Bulletin 93-11. The diskette contains the 1990 Census information and the format needed to prepare the report. The number of authorized positions must be updated for each State, however. To update the information, use the Program Year 1996 information for your State found in Attachment III, and the instructions found on page 100 of the user manual, SPONSOR SUPPORT SYSTEM version 1.3. Transmit the reports to the Division of Older Worker Programs. This year, the hard copy printed form is the preferred submittal document. Instructions for completing the hard copy of the Equitable Distribution Report are found in section 6 below. The report should be sent by March 21, 1997. Action: a. State SCSEP agencies are requested to: (1) Convene a meeting of all SCSEP program operators in their State to review the existing slot placement by county; (2) develop the sub-State distribution report of the present slot allocations. A vacant authorized position should be reported, but temporary positions should not. Compare the equitable county levels with the actual distribution and discuss how to bring about an improved distribution; (3) Obtain the signature of representatives of each sponsor operating in the State on the form or the transmittal letter. If a sponsor chooses not to sign, it must explain in writing why it did not and send a copy of this explanation to each sponsor and DOL. Equitable Distribution Reports which are unsigned are not acceptable. NOTE: If a signatory is unable to sign the form but is in agreement with it, it may send a letter indicating its agreement with the report. The letter can be used in lieu of the signature. (4) Submit the Equitable Distribution Report to: Division of Older Worker Programs (DOWP) U.S. Department of Labor 200 Constitution Avenue, N.W. Room N4641 Washington, D.C. 20210 b. National SCSEP Sponsors are requested to: (1) Designate representatives to attend State-convened equitable distribution meetings to provide existing and projected slot levels for use in reaching agreement on how to bring about more equitable levels by county; or (2) Convene the equitable distribution meeting and prepare the report in those cases where the national sponsor is delegated the responsibility for the Governor's SCSEP allocation. NOTE: Completion of the report should be a cooperative activity. All sponsors should put forth their best effort. Disagreements should be resolved locally through genuine communication and compromise. Format for the Equitable Distribution Report: The attached report form, ETA 8705, should be used for the Equitable Distribution Report. (See Attachment II). To complete the report, sponsors should follow the instructions which are also provided in Attachment II. Although form ETA 8705 should be used, it may be modified by adding pages or expanding or reducing the size of the columns and spaces. Distribution of SCSEP Resources: The OAA requires sponsors to seek an equitable distribution of program resources. Where necessary, redistributions should be made by relocation of vacant or new positions and through normal attrition. No enrollee should be terminated because of the equitable distribution requirement. When the grant applications are prepared for the next grant period, consideration must be given to the data contained in the Equitable Distribution Report. Technical Considerations: The census information was prepared for the Department from information supplied by the U.S. Census Bureau. The data is based on the 1990 census, and includes only those people who meet the statutory participant eligibility factors: individuals age 55 and over who have incomes at or below 125 percent of the poverty level. This information is found on the diskette that was sent to each sponsor with OW Bulletin 93-11. Information for Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, Palau, and the Virgin Islands is not on the diskette. The sponsors in these jurisdictions may use the best available information to complete the chart. Note: The data used for the report should be that supplied by the Department of Labor. If a state agency has updated data it wants to use, it should provide that information to the other sponsors and the DOL two weeks prior to the meeting. Schedule: Reports should be submitted to the DOWP, 200 Constitution Avenue, N.W., Room N-4641, Washington, D.C. 20210, by March 21, 1997.

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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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