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HomeMy WebLinkAbout710553.tiff r• Ty41TAT IVE Subj t to Revision EMERGENCY EMPLOYMENT ACT of 1971 PROGRAM GUIDE "itr X7 /77/ U. S. Department of Labor Manpower Administration August 11, 1971 710553 TABLE OF CONTENTS I. Purpose of the Program Guide. II. Emergency Employment Act of 1971 (FEA) . • III. Eligible Applicants and Program Agents. IV. Allocation of Funds. V. Program Administration. VI. Application and Funding Process--Section 5 Programs. VII. Application and Funding Process--Section 6 Programs. VIII. Eligible Participants. IX. Establishing Employment Opportunities. X. Manpower•Services. XI. Compensation and. Working Conditions. XII. Comments by Interested Organizations. XIII. Reports and Records. XIV. Financial Arrangements--Reimbursement. XV. Terminations of Grants--Adjustments in Payments. 1 I. PURPOSE OF TUE PROGRAM GUIDE. The purpose of this Program Guide is to furnish potential applicants with information which will help them develop and submit effective employment programs for funding under the Emergency Employment Act of 1971. The Guide describes the major provisions of the Act. It also provides administrative guidelines for applicants in such basic areas as conditions for eligibility, allocation of funds, establishment of jobs, the application and funding process, training and supportive services, employee compensation and working conditions, records and reporting, financial procedures, and program terminations. The emphasis in this first edition of the Guide is on programs authorized by Section 5 of the Act. Guidelines for Section 6 were still in preparation at the time that the Guide was issued. Regulations have been formulated by the Secretary of Labor for the purpose of making financial grants under the Act. (Subtitle A, Title 29, Code of Federal Regulations, Part 55) . Applicants should read and use these regulations as an aid in developing their applica- tions. The regulations should also he referred to by officials and staff of established programs, as necessary, to insure the continued, proper administration of their programs. In case of discrepancy between this Program Guide or other materials and the Regulations, the Regula- tions are controlling. 2 II. EMERGENCY Fb4'I.OYMENT ACT OF 1971. A. Objectives of the Act. The overall objectives of the Emergency Employment Act of 1971 are as follows: 1. To give financial assistance to nublic emnloyers which will he used in providing unemployed and underemployed persons with transitional jobs providing needed public services in times of high unemployment. 2. Where appropriate, to provide job-related training and manpower services which will enable such persons to move into employment or training not supported under the Act. The emphasis is placed on the transitional nature of the jobs, with participants assisted to move to regular employment as soon as practicable. To this end, the Act makes provision for appro- priate training, development of career opportunities, and placement efforts. B. Summary of Provisions. The Act authorizes financial assistance to eligible applicants who agree to provide employment opportunities for unemployed or underemployed workers in needed public services. Eligible appli- cants are units of Federal, State and local government, their subdivisions or institutions, and Indian tribes on Federal or State reservations. Combinations or consortia of governmental units and combinations of Indian tribes may also he eligible applicants. 3 There are two basic funding provisions specified in the Act. Under Section 5, funds are made available for public service employment nrograms whenever the Secretary determines that the nationwide unemployment rate equals or exceeds 4.5 percent for three consecutive months. As of August 1971 this criterion has been met, permitting obligation of the 5750,000,000 authorized for Section 5 programs. No further funds will he obligated when the rate has fallen below 4.5 percent for three consecutive months. Section 6 of the Act provides a program of special financial assistance for areas with particularly severe unemployment nroblems. For such areas, where the Secretary finds that unemploy- ment has reached 6 percent or more for three consecutive months, the Act authorizes expenditures of $250,000,000 in each of Fiscal Years 1972 and 1973. The Federal Government may not pay more than 90 percent of the cost of carrying out an approved program, except in unusual circumstances. The remaining 10 percent must he contributed by the participating governmental unit or Indian tribe. At least 80 percent of the funds authorized for the Section 5 program must be apportioned on a State and area basis. In apportioning Section 5 funds among eligible applicants, the Secretary of Labor is required to take into account the number of unemnloyed workers and severity of unemployment in each State and area. • 4 At least RS percent of the total funds appropriated for the Act rust he used for paying wages and employment benefits to persons employed in public service jobs. Obviously, the greatest emphasis is placed on the provision of employment, with only a fraction of available funds to be reserved for training or other • surportive services. 5 III. ELIGIBLE APPLICANTS AND PROGRAM AGENTS. An "Eligible Applicant" may he: 1. Any unit of Federal, State or general local government. 2. Any public agency or institution which is a State or general local governmental subdivision. 3. An Indian tribe on a Federal or State reservation, or combination of tribes. 4. Combinations or consortia of units of government. In order to facilitate administration of the program, the Secretary of Labor has decided that only governmental units of specified size will he eligible for direct Federal grants. These units have been invited to apply directly for needed assistance under the Act: 1. Cities with a population of at least 75,000. 2. Counties with a population of at least 75,000, not counting the population of designated cities within such counties. 3. All States. 4. The District of Columbia, Puerto Rico, the Virgin Islands, Guam, American Samoa, and the Trust Territory of the Pacific Islands. 5. Indian tribes or tribal councils as designated by the Secretary. 6 The governmental units listed above are termed "Program Agents". The Secretary of Labor will designate Program Agents in advance and list them in the Federal Register. Application forms for the funding of nublic service employment programs under Section 5 of the Act will be sent to all Program Agents, accompa- nied by instructions for completion of such forms. State governments serve as Program Agents for portions of the State that are not themselves represented by Program Agents--the 'balance-of-State". Only Program Agents, so designated, may submit a grant application directly to the Secretary for assistance under Section 5. However, in conformity with the Regulations, Program Agents may enter into agreements to grant funds to other eligible appli- cants to provide public service employment under the Act. Units of goverment receiving such funds may serve as sub-grantees of the Program Agent. Detailed guidelines implementing Section.6 of the Act, and- pertinent regulations, will be developed as soon as possible. 7 IV. ALLOCATION OF FUNDS. A. Apportionment among Program Agents. For the purpose of administering the Emergency Employment Program, $1 billion is authorized for Fiscal Year 1972 and $1.25 billion for Fiscal Year 1973. The combined two-year PEA alloca- tion is $2.25 billion. To insure that wages and benefits for EEA program participants are the first priority in the spending of these monies, the Act provides that a minimum of 85 percent of the total amount of money appropriated must he spent for wages and benefits of EPA participants. All other participant non-wage costs, including supportive services, education, administrative costs, and skill training, must come out of the remaining 15 percent of the total appropriation. To meet the overall 85 percent requirement for the EEA program as a whole, no less than 90 percent of the funds granted to Program Agents must be used for participant wages and employment benefits. Moreover, to conform to a limitation imposed in the appropriation for this Act, Program Agents may not use more than 3.2 percent of their total grant for program administration. At least 80 percent of the $750,000,000 made available for Section 5 programs in FY 1972 will be apportioned among Program Agents by the Secretary of Labor on the basis of a formula reflect- ing the amount and severity of unemployment in each area. The 8 amount allocated to each Program Agent on this basis will be published annually in the Federal Register so that the Agents can plan their programs without delay or uncertainty. The portion of the $750,000,000 which is not apportioned among the Program Agents may be utilized by the Secretary for special unemployment problems, program administration, collection of labor market infor- mation, technical assistance, and other purposes. No State will receive less than $1„5 million, and $1.5 million will be appor- tioned among Guam, the Virgin Islands, American Samoa, and the Trust Territories of the Pacific Islands. The law authorizes $250 million in both FY 1972 and FY 1973 for the Special Employment Assistance authorized by Section 6. Procedures for allocating this money are still in preparation. B. Funds for State Employment. A share of the funds allocated to each city or county serving as a Program Agent will be specified by the Secretary of Labor for use by the appropriate State government in establishing State job opportunities in the area. The State share is based on the proportion of all public service employees in the Program Agent's area who are State employees. The State employment opportunities created fran these funds must be used to employ -esidents of the Program Agent's area. Partici- pants may be employed directly by the State or, if the Governor so chooses, he may allot any portion of the funds to any other eligible unit of government located within the Program Agent's area. 9 It should be noted that the total allocation of a State will cane from two sources: 1. Funds set aside from the allocation of each county or city serving as a Program Agent in the State; and 2. Funds allocated directly to the State as Program Agent for the "balance-of-State." C. Distribution of Funds to Areas Within a Program Agent's Jurisdiction. Each Program Agent is required to distribute EEA funds and jobs equitably among the areas within its jurisdiction most in need of EEA assistance. This distribution should he based on: 1. The extent and severity of unemployment in each area; 2. The number of public service jobs in each area; 3. The population of the area; D. Distribution of Funds to Subgrantees by a Program Agent. Program Agents may establish job opportunities within their own organization, or they may allocate funds within an area to public employers interested in providing jobs. The method of allocation in the discretion of the Program Agent, which may decide to use a sub-grant or other document. For purposes of this Program Guide and other EEA program materials, such public employer will be referred to as a "subgrantee." r. 10 In considering applications from potential subgrantees, Program Agents should make an equitable distribution of funds, giving consideration to: 1. The numbers of public service employees within each unit of government applying to the Program Agent for funds; 2. The administrative capability of the applicant to mount a program; 3. The adequacy of the applicant's plans for effectively serving the significant segments of the unemployed population in the area on an equitable basis; 4. Effective performance in other manpower programs. Program Agents are required to give careful consideration to requests for LEA funds received from eligible applicants which are potential subgrantees. In their application to the Secretary of Labor, Program Agents are required to identify eligible applicants who requested suhgrants, the amount requested, action taken, and reasons for action on the requests. Assistance in reviewing requests for funding will be available through the Regional Manpower Administrator of the Department of Labor. E. Non-Federal Share. A 10 percent non-Federal share, in cash or in kind, including but not limited to plant, equipment or services, is required of all Program Agents. Other Federal funds may not he used for a 11 Program Agent's 10 percent contribution, whether in cash or in kind, unless the law under which the Federal funds were made available specifically permits their use for this purpose, or when the employing agency is a Federal agency. Voluntary services or space donated to the grantee from private sources may rot he included in the non-Federal share unless specifically accepted by the Secretary. If the 10 percent matching requirement would cause a serious hardship for the IWogram Agent or prevent particiratien in t',e program by a Frorrmi: Agent or an employing agency, the Fro-ram Arent may request a waiver in its application for initial funairr This renuest should fully exrlain and document the reasnns why a waiver is essential for operation of the nropram, 12 V. PROGRAM ADMINISTRATION. A. Organization. The Secretary of Labor has overall responsibility for carrying out all of the provisions of the Emergency Employment Act of 1971, and the regulations formulated under the Act. Within the Department of Labor, the Manpower Administration is responsible for administering the program, including the develop— ment of policies and procedures, review of applications, and monitoring of programs. It is planned to establish a new Office in the Manpower Administration to provide leadership and overall direction for the administration of the program. Major responsibilities for the program have been assigned to the 10 regional offices of the Manpower Administration. The Regional Manpower Administrators will: a. Provide necessary assistance to applicants in developing their applications for financial assistance, as provided under the Act. b. Receive, review and approve applications. c. Provide, through regional office staff, necessary technical assistance to Program Agents in the operation of their programs. d. Through regional office staff, monitor individual programs to insure compliance with agreements, assess program effec- tiveness, recommend program improvements, and, where necessary and for good cause, effect termination of programs. 13 (A listing of Regional Manpower Administrators is attached as Appendix A to this Guide) . B. Role of Program Agents. The Program Agent is responsible for developing and administering an effective program to implement the provisions of the Act at the local level. To meet this responsibility will require careful planning and groundwork. As a first step, the Program Agent must develop accurate back- ground information on which an effective and systematic program plan can be based. This information must necessarily include data on the number, location, and characteristics of unemployed and underemployed persons, including groups with particularly severe problems requiring special attention. The Program Agent must also make a careful assessment of the unmet needs for public services, as described in Section 14(a) (3) of the Act, for the area which it serves. Another important consideration is the availability of adequate administrative mechanisms for establishing jobs and recruiting individuals who qualify under the Act. This initial assessment must include consideration of the order of priorities among segments of the unemployed, public service needs, sections of the geographic area served by the Program Agent, and potential, sub-grantees. Based on its assessment, the Program Agent will develop a suitable plan for a public service employment program under the Act. The plan need not be voluminous but should clearly identify area needs, priorities, the program efforts that are to be undertaken to meet the needs, and the administrative mechanisms to be used. 14 2. Applications. The Program Agent must incorporate his plan into an application on forms provided by the Secretary, and in accordance with instructions developed for the completion of such forms. The application should be developed in accordance with the provisions of Section 7 of the Act, and sections 55.3 and 55.6 of the Regulations promulgated by the Secretary. The application should be submitted to the appropriate Regional Manpower Administrator for review and action within the due dates announced for this purpose. During the first year of operation, a special effort is being made to expedite the provision of jobs for the unemployed. Therefore, the application process has been divided in two parts. Program Agents will submit an abbreviated Applicatir.n for Initial Funding for a partial grant of funds. This will enable the Program Agent to begin its planning process, hire staff, make administrative arrangements, and employ an initial complement of parti- cipants promptly. Within 30 days of the effective date of the initial grant, the Program Agent will submit a more detailed Application for Full Funding. This application will out- line the Program Agent's needs and plans for thorough review by the.Regional Manpower Administrator. Applications may be signed by the Program Agent's chief elected or appointed officer or, in the case of a combina- tion of general government units, by the officer designated by such units. 15 3.. Sub-grants The Program Agent will be responsible for administering or supervising all activities under its approved public service employment program. It may provide jobs directly, using its own organizational units as "employing agencies." It may also allot funds to any other eligible applicant which is interested in developing a program as a sub-grantee to a State designated as a Program Agent for the "balance-of- State." In such cases the Program Agent will remain responsi- ble for assuring the compliance of the sub-grantee with the Act, the regulations, the grant conditions, and other requirements established by the Secretary. C. Employing Agency. 1. An "employing agency" is an eligible applicant which has been designated by a Program Agent, a sub-grantee, or the Secretary to employ participants with funds granted under the Act. 2. Examples of employing agencies include, but are not limited to States, counties, cities, combinations of local governments, and departments of States or cities (e.g. , health, sanitation, port authorities, fire, police, education) . 3. Federal agencies may also act as employing agencies subject to applicable regulations set forth by the U. S. Civil Service Commission. Employees of non-Federal employing 16 agencies may perform work for a Federal Agency if the agency gives its consent. Assistance in working suitable arrange- ments with Federal Agencies will be provided by the DOL. D. Use of Contractors Other than Employing Agencies. Program Agents and employing agencies agencies may contract with other public or private organizations for the provision of necessary administrative training and supportive services. This does not include contracts for the employment of program participants, which can only be done by public employing agencies. Any-contract exceeding an amount of $10,000 must be approved in advance by the appropriate Regional Manpower Administrator. Proposals for such contracts should be included in the application, showing the contractor's name, services to be rendered, costs, and number of workers to be served. 17 VI. APPLICATION AND FUNDING FPOCPSS--SECTION 5 PPOrRI"IS. Information in this section applies only to programs under Section S of the Act. A. General. Eligible Program Agents will be furnished with two sets of applications and instructions: the first for the initial grant of funds, which represents 20 percent of the total allocation for the area; the second for the balance of funds allocated to the area. Under the initial grant, Program Agents will he in a position to hire participants as soon as possible while they simultaneously plan for a fully-operative program. Upon approval of the Application for Full Funding, the initial grant will he modified to cover the period fran the date the grant is approved to July 15, 1972. B. The Initial Application. The Application for Initial Funding should be completed by the Program Agent within ten (10) days of its .receipt, and forwarded to the appropriate Regional Manpower Administrator (see Appendix A) . The initial application consists of appropriate identifying information, a summary of costs and employment opportunities, a breakdown of government units other than the Program Agent which will serve as subgrantees of the agent, and a description of the jobs to be provided under the initial grant. The Secretary waived all requirements for thi4 application except as specified) in the initial rending application and attached forms. 18 The initial grant will enable the Program Agent to: (1) hire participants immediately, including participants who will serve as staff members in planning and administering the program; (2) hire non-participant staff to implement the program; (3) plan for the full program, and complete the application for the balance of funds. NOTE: The Provisions Governing Grants, the Regulations (29 CFR 55) , and all other guidelines and standards issued for EPA apply to the initial grant. In addition, there are other constraints which apply to the use of funds received fran the initial grant: 1. Not less than 85 percent of the initial grant of funds shall be spent for wages and fringe benefits for partici- pants. Program Agents should note that the availability of as much as 15 percent of the initial funds for administrative purposes is intended to allow for concen- trated planning and administrative arrangements at the start of the program. This initial administrative money constitutes most of the funds that will be available for administration during the total grant period. The proportion of a Program Agent's total Federal grant that may be used to pay for administrative costs may not exceed 3.2 percent. This should be taken into account in schedul- ing administrative activities. 19 2. Only 30 percent of the total number of jobs planned for the entire grant period may be filled under the initial grant, 3. The allowable costs under the initial grant are limited to the costs of wages and fringe benefits for participants and project administration. No costs for training and other supportive services may be incurred during the initial grant period. Although the Application for Full Funding must be submitted within 30 days after the initial grant is signed, and every effort will be made to expedite its approval, there may be cases when additional time is needed to allow for review of the full application by the Regional Manpower Administrator and for negotiation with Program Agents. During this interim, Program Agents will be permitted to continue the expenditure of funds provided under the initial grant for a period of as much as six months. C, Application for Full-Funding. Within thirty (30)days after the approval of the initial grant, an application requesting the balance of funds and setting out a plan for the use of these funds must be forwarded to the appro- priate Regional Manpower Administrator, The application should be completed on the forms provided by the Department of Labor in accordance with the accompanying instructions. 20 The Application for Full Funding includes a sinnnary of the program, a description of the area covered by the Program Agent, including the population to be served, the public service needs of the area, and the methods by which funds and job opportunities will be distributed among other governmental units within the agent area. In addition, there is a description of the proposed jobs to he provided with ETA funds, plans for providing training and other supportive services to participants, plans for insuring the career development of participants, and cost breakdowns for the use of PEA funds. The Program Agent must attach copies of all comments received from the Governor and major units of general local government, as well as comments from labor unions, in accordance with Section XII of this Guide. The Application for Full Funding includes the costs of wages and fringe benefits for participants, program administration, and training and supportive services. The application should reflect the administrative requirement that Program Agents are to expend no less than 90 percent of their total EPA grant for wages and fringe benefits of participants. When the Application for Full Funding is approved by the Regional Manpower Administrator, the initial grant will be modi- fied to reflect the increase of funds and the expanded score of work. 21 VII. APPLICATION AND FUNDING PROCESS--SECTION 6 PROGRNIS. Information for this section is still in preparation and will be furnished at a later date. 22 VIII. ELIGIBLE PARTICIPANTS. A. Unemployed and Underemployed Persons. Eligible participants for the Emergency Employment Act are unemployed and underemployed persons. Priority for participa- tion in this program shall be given to the unemployed. 1. Unemployed Persons. An unemployed person is; (1) a person who is without a job and who wants and is available for work. An individual shall be deemed to meet this qualification if he has been without work for one week or longer and has made specific efforts to find a job within the past A weeks, but is neither waiting to be called back to a job from which he has been laid off nor expecting to report to a new job within the next 30 days; or (2) a person who is 18 years of. age or older and a recipient of money payments pursuant to a State plan approved under the public assistance titles of the Social Security Act (relating to aid to the aged, the blind, or the disabled, or aid to needy families with children) or a person whose incase, resources, or need are counted with that of such a recipient for determining public assistance entitlement, and (ii) has been without work for one week or longer and (A) is an unemployed father receiving 23 assistance under title IV, Part A of the Social Security Act (as defined in 45 CFR 233.100(a) (1), (B) is referred for work by the State or local welfare agency, or (C) volunteers for work; or (ii) is working in a job • providing insufficient income to enable him and his family to be self-supporting without welfare assistance. 2. Underemployed Persons. Underemployed persons are: a. persons who are working part-time for an employer other than the Program Agent or a designated employing agency and seeking full-time work; or b. persons who are working full-time for an employer other than the Pzugxan Agent or a designated employing agency and whose wages, when added to the other income of adults 16 or over in their immediate families living in the same house- hold, are below the poverty line. (See Appendix B for poverty income criteria) . (NOTE: Persons working full-time for the Program Agent or any designated employing agency cannot be considered underemployed). 3. Place of Residence. Participants, except individuals recalled to their former jobs (see Section 4, below) must live within the geographic area over which the Program Agent has jurisdiction. When a 24 State government is given funds for expenditure on State employees within the geogranhic area of another Program Agent, the participants it selects must reside in that geographic area. 4. Recalls. Former employees of the Program Agent or any designated employing agency receiving financial assistance under this grant are eligible for participation in the program only if they have been unemployed for a period of 30 days or longer prior to being employed in a job funded by this grant. B. Special Groups. In developing an EEA program, the Program Agent must give special consideration to the fact that program participants must be recruited and selected on a fair and equitable basis from among all significant segments of the unemployed and underemployed population. At least one-third of all participants should be Veterans of the Asian theater who served in the Armed Forces in Indochina or Korea on or after August 5, 1964 and who received other than a dishonorable discharge. In developing an equitable plan for enployment, the Program Agent should give special consideration to the needs and relative numbers of unemployed and underemployed persons from each of the following additional segments of the population in the area (the 25 segments are not listed in any order of priority) : To the extent feasible, the number of participants from each segment should reflect the proportion of all underemployed workers in the area who belong to that segment: a. Persons whose native tongue is not English and whose ability to speak English is limited; b. Persons fran families with incomes below the poverty line; c. Welfare Recipients; d. Persons who come from socio-economic backgrounds generally associated with substantial unemployment and underemployment: e. Migrant farmworkers; f. Young persons eighteen years old or older who are entering the labor force; g. Persons who have become unemployed or underemployed as a result of technological change or whose most recent employment was with Federal contractors who have cut back in employment because of shifts in Federal expenditures, such as in the defense, aerospace and construction industries; and h. Persons 45 or over. Due consideration for employment should he given to persons who have participated in manpower training programs for whop employment opportunities are not otherwise immediately available. 26 The needs of other groups of unemployed persons with special labor market problems should also be carefully taken into account. C. Planning Services to Unemployed Groups. To ensure systematic and effective administration, Program Agents are required to include in their plan of EEA activities careful attention to the reeds of the significant segments of the unemployed and underemployed population in the area. The plan should include background information on the numbers, race, characteristics, location, income levels, and employment status of potential participants in the area. The Department will be particularly interested in reviewing the plans to see that minority groups are included on a basis which represents their distribution among the unemployed. It should also set priori- ties for serving the segments on an equitable basis and set forth the job opportunities and supportive services that will be pro- vided to effectively meet the particular needs of each segment. D. Non-Discrimination. Any grant made pursuant to the Emergency Employment Act is subject to Title VI of the Civil Rights Act of 1964 which provides that no person with responsibilities in the qperation of the program will discriminate against, deny with respect to the benefits of, or exclude fran participation in any program or activity receiving Federal financial assistance, any person in the United States on grounds of race, color, or national origin. In addition, no candidate for a position on, or member of, the project staff funded under this grant, shall he discriminated against because of race, creed, color, national origin, sex, age, political affiliation or beliefs. 27 • E. Political Activities. No program will involve political activities and neither the program, the funds provided for it, nor the personnel employed in the administration of it, shall be in any way or to any extent, engaged in the conduct of .political activities in contravention of Chapter 15 of Title 5, of the United States Code. Information on this section of the Code is available from the U. S. Civil Service Commission. F. Recruitment, Certification and Selection of Program Participants. Because of the wide variety of available resources and the need to -serve varying segments of the unemployed population, Program Agents will be allowed considerable flexibility in developing their plans for recruitment and selection of participants. In recruiting participants, the Program Agent should take into consideration the special capabilities of existing agencies or programs to reach various portions of the unemployed. Additionally, all job vacancies, except those to which former employees are being recalled, must be listed with the State Employment Service, which shall be accorded at least 48-hours to recruit and refer applicants before such vacancies are filled from other sources. There will be no formal procedure for certification of eligibility of individual participants as unemployed or under- employed. Employing agencies will be expected to make this 28 determination of eligibility, and to include and retain in the participant's folder the information on which the determination was based. Final selection of program participants is the function of each employing agency. The employing agency should keep a record of the persons considered for each job under the Act and the data upon which individuals were chosen or rejected as applicants. 29 IX. ESTABLISHING BIPLOYMENT OPPORTUNITIES. A. General. In developing job opportunities,the Program Agent should be guided by several principles stressed in the Act: First, the jobs provided in this program must meet public service needs as defined in the Act and Regulations. Second, the emphasis is on transitional employment--on jobs which are likely to lead to regular, non-subsidized employment or opportunities for continued training. Third, the Act envisages jobs that will not be "deadend", but will contribute to career advancement and development of the employ- ment potentials of participants. Opportunities for continued training are provided to support the upward mobility of participants. Forth,programs are to contribute to the elimination of restrictive practices and institutional barriers which prevent the effective utilization of available manpower and systematically exclude large segments of the population from realizing their employment potentials. Relevant Guidelines in this area will be issued by the U. S. Civil Service Commission. B. Public Service Needs. As a result of a lack of revenue, many governmental units have had to curtail public services or have been unable to implement new services. The Act makes available major new resources for employing persons to meet such needs. Program Agents are expected to determine which public service are most pressing in each area. 30 Examples of public services demanding attention in many co]lvulniti.es are health care, education, public safer, crime prevention and control, manpower services, rrision rehabilitation, transportation, haste disposal, housing and neighborhood develop- ment, rural development, and others. C. Occupations. The jobs to be created under the Act are intended to cover a wide range of skills, geared to the characteristics of the unemployed and the public service needs of each area. However, no more than one-third (1/3) of the positions funded under this grant can be pro- fessional positions, as defined by Section 13(a) (1) of the Fair Labor Standards Act of 1938. The exception to this limitation is the hiring of classroom teachers. Generally, a professional is a individual (1) with a professional education (usually requiring more education than a Bachelor's degree), or whose work is original and creative in an artistic field, (2) at least 800 of whose work requires discretion and judgment and is intellectural in nature, and (3) who earns at least $140 a week ($125 in Puerto Rico, Virgin Islands, or American Samoa) . A less stringent test applies to individuals earning $200 or more. Lawyers, doctors, and teachers working as such are professional without regard to their earnings. (For further explanation see 29 CFR 541.3) . 31 The Act requires that, the maximum extent possible, public service jobs should be provided in occupational fields which arc most likely to expand within the public or private sector when the unemployment rate recedes below 4.5% level nationally. 1^ie Program Agent's plan should seek to identify such expanding areas and develop appropriate employment opportunities. Appendix • C provides an illustrative list of occupations which are generally expected to expand in Future years. The Emergency Employment Act requires Program Agents to hire unemployed and underemployed persons to fill positions in their EEA program staffs, other than necessary technical, supervisory and administrative personnel, who may but need not he participants. D. Transition to Pegular Employment. The goal of the Act is to place unemployed and underemployed persons in transitional jobs which will enable individuals to move into permanent employment in the public or private sector. To achieve this goal, special consideration must be given to jobs which provide prospects for non-subsidized employment with the employing agency or other employer. The Program Agent's plans should provide for needed training and related manpower services to promote the movement of participants to regular employment or training and to provide participants with skills for which there is an anticipated high demand. 32 Program A0 .sts and employing agencies respi ible to them must plan to place at least half of the LEA participants in continuing positions with the Program Agent or employing agency, financed by non-LEA funds. The Program Agent and the employing agencies responsible to it shall utilize at least one-half the vacancies occurring in suitable occupations in such continuing positions for this purpose. Exceptions may be granted by the Secretary where this is not feasible because of hiring practices required by law, regulation, or collective bargaining agreements and the Program Agent or employing agency has submitted a statement explaining the prohibition. In the event the Secretary determines that the national unemployment rate is receding toward 4.5%, or financial assistance is no longer available, Program Agents must make maximum efforts to locate employment or training opportunities not supported under this Act for each program participant. E. Occupational Advancement. To the maximum extent feasible, the Act requires that the program contribute to the occupational development and upward mobility of each participant. In the event that a participant is employed in a public service job which does not provide sufficient prospects for advancement or suit- able continued employment, reasonable efforts must be made by the employing agency employment providing such prospects. Where appropriate, linkages must be maintained with upgrading and other manpower programs to provide participants who want to pursue work with the employer in the same or similar occupation, with opportunities to do so and to find permanent, upwardly mobile careers in that field. 33 The Act requires that the Secretary provide for periodic reviews of the status of each participant to ensure that EEA jobs provide prospects for advancement or continued employment 'and that the Program Agent is providing necessary placement assistance. Detailed procedures to implement this section are under development. F: Improved Utilization of Manpower. The Program Agent is encouraged to design its program to enhance the effective management and utilization of human resources. To this end, special consideration should be given to the evaluation of position requirements and qualifications, the redesign of tests and other proce- dures for selecting participants, the restructuring of jobs so as to better use the skills of the unemployed population, and the elimination of requirements which have artificially tended to restrict the mployment opportunities of some segments of the population. These activities should be carried out in accordance with guide- lines to be developed by the U. S. Civil Service Commission in the near future. Pending the guidelines, preliminary work in this area should begin as soon as possible. G. Maintenance of Effort. Funds issued pursuant to this grant may not be used to pay for work which would otherwise have been performed at Federal, State or local expenses; i.e., Program Agents may not use EEA funds to subsidize jobs for which public monies are already budgeted. EEA money can only be used to increase employment opportunities over those which would otherwise be available. 34 r Funds can not be expended for work that will result in the displacement of currently employed workers (including reductions in the hours on nonovertime work or wages or employment benefits) or which will impair contracts or services. 35 X. ?4ANPOIVER SERVICES. In keeping with the objective of providing opportunities for regular employment and upward mobility, the Act authorizes the use of funds for training and other supportive services. Training may take the form of basic or remedial education, classroom voca- tional instruction, or on-the-job training. Other supportive services may include, but are not limited to, the following: A. Medical services necessary to make a potential partici- pant available for employment. This may include initial physical examinations, preventive and clinical medical treatment, minor dental treatment, nutrition services, voluntary family planning services, inexpensive prosthesis such as glasses, dentures, and hearing aids, and diagnostic psychological services where they are necessary to secure appropriate employment. B. Transportation for participants between their residences and any program-related facility or activity in cases where there is no appropriate public transportation or transportation costs are an obstacle to employment. C. Child care services where needed or employability or to permit entrance into training. D. Vocational or educational counseling. It is anticipated that about 5 percent of the funds allotted under the Program Agent's BEA grant may he used to provide training and other supportive services. The small size of this amount makes 36 it essential that supportive services be provided only where absolutely necessary to enable unemployed persons to obtain appropriate jobs. Because of the limitation of funds available for training and supportive services, Program Agents must make every effort to secure these services fran existing agencies and Federally funded manpower training systems and facilities. Among existing Federally-assisted manpower resources that should be explored for linkages are the Concentrated Employment Programs, MIJTA Program (particularly area skills centers), and the Public Service Careers Program, Job Corps, and the Work Incentive Program. Programs to fund health services and/or to provide employment in health occupations would benefit from contact with existing local agencies established to coordinate health manpower resources. These agencies include State and Area-wide Comprehensive Health Planning Agencies and the local Regional Medical Programs. 37 XI. COMPENSATION AND WORKING CONDITIONS. A. Wages. Wages or salaries shall be paid to program participants at a rate equal to the highest of the following: 1. the minimum wage applicable under the Fair Labor Standards Act of 1938, if Section 6(a) (1) of the Act applied to the participant and he is not exempt from Section 13 thereof (currently $1.60 per hour); 2. the State or local minumnm wage frr the most nearly comparable covered employment; or 3. the prevailing rate of pay for persons employed in similar public occupations by the same employer. B. Fringe Benefits. Program participants shall receive the sane fringe benefits (e.g., workmen's compensation, health insurance, unemployment insurance, vacations) as other employees of the employing agency. C. Limits on Compensation. 1. Compensation to any participant fran funds authorized under the EEA is limited to a maximum full-time rate of $12,000 per year plus the cost of fringe benefits normally paid to workers in compparable occupations by the same employer. 2'. It should be the goal of Program Agents to pay an average compensation to program participants (including wages and fringe benefits) of no more than $7,000 per year in the Program A'-nt's overall program, 38 XII. Cat1ENTS BY INTERESTED ORGANIZATIONS. A. Garments by Governmental Units. Prior to the submission of the Application for Full Funding, or amendment or modification thereof, to the Department of Labor, all Program Agents must provide appropriate officials of the major units of general local government within their geographic jurisdiction an opportunity to submit camnents. These comments may be made to the Program Agent or directly to the Regional Manpower Administrator and should relate to compliance with the Act and the Regulations. (The requirement for comments will be waived with respect to applications for initial funding) . For the purpose of this section, the "appropriate officials of the major units of general local government" within the Program Agent's jurisdiction are limited to the following: the Governor of the State; the Chief Executives of cities with populations of 20,000 or over; and county executives; or their designees. Other units of general local government within the area desiring to camera may do so, but they will not receive this opportunity by individual invitation. A summary of the Program Agent's Application for Full Funding, including the proposed distribution of funds, must be published in two newspapers of general circulation in the area. The summary must include notice of where the application may be examined in full and when it will be submitted to the Regional Manpower Administrator. 39 Comments will not be required for the Application for Initial Funding. However, all Program Agents are requested to furnish an information copy of this Application to the Governor and the State is furnished an information copy of its own Application for Initial Funding to all Program Agents in the • State. Such copies should be furnished no later than the time the Applications are transmitted to the Regional 'tanpower Administrator. B. Comments by Unions. Officials of labor organizations representing employees who are engaged in similar work in the same area as that proposed to be performed in a Program Agent's grant application proposed modification thereof must also be allowed to submit comments on such proposals. Normally, only unions representing public employees need be contacted for comments. This opportunity to comment does not apply to a Program Agent's Application for Initial Funding. C. Submission of Comments. Completed applications for funding (except initial applica- cations) must include copies of any comments on the application submitted to the Program Agent by the major units of general local government and appropriate labor organizations in the area. These groups will be allowed 15 days from their receipt of the application in which to submit their written comments 40 to the Program Agents and/or the Regional Manpower Administrator, but must indicate within three days that they plan to comment. Comments from other units of government in the area will also be considered, provided they too are received within 15 days of the publication of the program summary in the local press, and also indicate they will comment. Comments from any unit of government in the area submitted to a Program Agent after this time should also be sent by the reviewer to the Regional Office directly, for possible consideration. In making the determination as to whether or not to approve a Program Agent's application, however, consideration can only be granted to those units of goverment or organized labor that file their written comments with the Program Agent or the Regional Manpower Administrator within the 15 day limit described above. 41 XIII. REPORTS AND RECORDS. A. Reports. Program Agents must submit periodic program reports to the Secretary as required by the Act and the Regulations. Program Agents will require each employing agency in their area to submit periodic reports. Reports which rust be submitted include: 1. Financial reports (see Section XIV, below) to insure proper accounting for all program funds, including both the Federal and non-Federal shares. 2. Reports designed to measure the effectiveness of each program. 3. Such other reports, as required. Reports will include data on characteristics of EEA participants, including: 1. Characteristics of participants such as age, sex, health, education level and previous wage and employment experience. 2. Participants' length of time in jobs, including infor- mation on their duration of employment for at least one year following the end of their employment in each program. 3. Total dollar cost for each participant, including a breakdown between costs of wages, training, supportive services, fringe benefits, and administrative costs. The transitional aspect of jobs created under the Act is also important in measuring the effectiveness of programs. Therefore, Program Agents and employing agencies will submit reports on participants' employment status after they leave a public service employment program. 42 The Secretary will transmit an annual, detailed report to the Congress, setting forth activities conducted under the Act. This report will be prepared from reports submitted by Program Agents and employing agencies, and also from periodic program reviews conducted by the Manpower Administration. The importance of reporting accurately and on time cannot be overstressed. Detailed reporting instructions will be issued to each Program Agent. B. Records. Program Agents and employing agencies will be required to maintain records (and accounts) concerning property, personnel and financial management in their programs. Such records (and accounts) are to be: 1. "Made available for audit purposes to the Department of Labor, or the Comptroller General of the United States, or their authorized representatives. 2. Retained for a period of three years following the expiration of any grant. Detailed instructions are being prepared on this subject, and will be sent to all Program Agents as soon as possible. 43 -. XIV. FINANCIAL ARRANGEMENTS--REIMBURSEMENT. The following paragraphs attempt to describe, in the broadest possible terms, the procedures whereby Program Agents and their designated subgrantees may obtain funds to carry out their programs. Basic financial record-keeping requirements are also • discussed. Financial management requirements will be dealt with in detail through formalized procedures which will be issued by the Manpower Administration at the earliest possible time. The forms mentioned in the following paragraphs are not available for issuance with this Guide, but will be distributed in time for their needed use. A. Initial Funding of Programs. 1. The Secretary will make a total allocation of funds to each Program Agent in accordance with Section 9 (a)(1) of the Act. Such allocation shall be made for the pur- pose of enabling the Program Agent to initiate and carry out its public service employment program. 2. The Program Agent will complete an Application for Initial Funding on the forms and in accordance with instructions provided by the Secretary through the Manpower Administration. (See Section VI, above) . Such application shall be for not more than 20 percent of the total funds allocated for the program, and is to be submitted to the appropriate Regional Manpower Administrator for review and action. In making 44 application the Program Agent must submit a program budget, and agree to make application for the balance of funding within 30 days of approval of the initial application In addition, the Program Agent must commit itself to: a. Complying with all requirements of the Act, the regulations, grant conditions and requests for information by the Secretary. b. Allotting the funds allocated to it in an equit- able manner, so as to insure that the employ- ment and public service needs of the geographic areas within its jurisdiction are met. 3. Upon approval by the Regional Manpower Administra- tor of the Application for Initial Funding, he and the Program Agent, shall prepare form MA 2-105 "Invoice for Reimbursement and/or Cash Advance (When Treasury Check is Used)". The form-MA 2-105 will be submitted to the appropriate disbursing officer so that a check may be issued by the U.S. Treasury Department. 4. The check issued by the Treasury Department repre- sents an advance of funds covering approximately the first 30 days of operations under the program. 5. Thereafter, the Program Agent will submit an invoice form MA 2-105, for additional additional advance° on the initial allocation of funds, until its Application for the Balance of Funds is approved. The invoice will be submitted to the appropriate 45 Regional Manpower Administrator for necessary action. B. Obtaining Balance of Funds. 1. Upon approval of the Program Agent's Application for Balance of Funds the Regional Manpower Administrator will prepare Standard Form 1193. "Letter of Credit" for submittal to the appropriate Federal Reserve bank or branch. The Letter of Credit represents a commitment by the Manpower Administration} specifying a dollar limit available to the Program Agent (or "grantee") for a specified period of time. (Specific Letter of Credit procedures will he issued as soon as possible to grantees) . 2. The Regional Manpower Administrator will obtain from the Program Agcnt its coaplete portion of form SF 1194, "Authorized Signature Card for Payment Vouchers on Letter of Credit", at the same time the Letter of Credit is Prepared. The authorized signature card is transmitted to the Treasury Department after the Regional Manpower Admin- istrator completes his portion of the form. One copy of of the signature card is given to the Program Agent. 3. Funds are thereafter obtained, by the Program Agent, as needed through a commercial bank selected by the Program Agent. The bank selected must agree to process vouchers submitted by the Program Agent to the appropriate Federal Reserve Bank or branch. In arranging for payment of subsequent funds, the Program Agent must present its copy if the signature card (SF 1194) to the commercial bank selected. 46 4. A supply of forms TUS 5401, "Payment Voucher on Letter of Credit" will be issued to each Program Agent. The Program Agent may draw funds against the Letter of Credit, as needed by presenting a copy of the payment voucher to its commercial bank. C. Allocations to Subgrantees. Program Agents may allocate funds to subgrantees. However, the Program Agent remains responsible for the proper use of funds by subgrantees as well as assuring their compliance with the Act, the Regulations, and the grant conditions. The Program Agent probably will wish to require subgrantees to agree in writing to the grant conditions. It may wish to require the subgrantee to give to the Program Agent the right to monitor and modify the subgrantee's program through proce- dures similar to those the Department of Labor will use as per paragraph 4 of the grant conditions. It may also wish to require certain of the assurances which the grant conditions provide for the Secretary; for example, those assurances found in paragraph 8, Records and Accounts; paragraph 11, Disclaimer of Liability; paragraph 15, Reports; and possibly others. The Program Agent may wish to retain for itself the right to make adjustments in payments as specified in Section 55.25 of the Regulations, and to terminate a subgrant for cause as specified in Section 55.26 of the Regulations. 47 D. Use of Federal Funds and Government-Owened Equipment. Federal funds may not be used for the acquisition, rental or leasing of supplies, equipment, materials or real property, whether these expenses are budgeted as direct cost, indirect cost or overhead. This restriction also precludes the assign- ment of Federally-owned equipment to Program Agents and subagents under the grants issued to them, except as noted in IV.E above. 48 XV. TERMINATION OF GRANTS; ADJUSTMENT OF PAYMENTS. If the Program Agent violates or permits an employing agency to violate, or if a unit of Federal or State government acting independently as employing agency, violates any provisions of the Act, the Regulations, or grant terms or conditions which the Secretary has issued or shall subsequently issue during the period of the grant, the Secretary may terminate the grant in whole or in part unless the grantee causes such violation to be corrected with- in a period of 30 days after receipt of notice specifying the violation; or in his discretion the Secretary may terminate the grant in whole or in part. Termination shall be effected by a notice of termination which shall specify the extent of termination and the date upon which such termination becomes effective. Upon receipt of a notice of termina- tion, the grantee shall: (1) Discontinue further commitments of grant funds to the extent that they relate to the terminated portion of the grant; (2) promptly cancel all subgrants, agreements, and contracts utilizing funds under this grant to the extent that they relate to the terminated portion of the grant; (3) Settle, with the approval of the Secretary, all outstanding claims arising from such termination; (4) Submit, within 6 months after the receipt of the notice of termination, a termination settlement proposal which shall include a final statement of all unreimbursed costs related to the terminated portion of the grant, but in case of terminations under paragraph (a) of this section will not include the cost of preparing a settlement proposal. Allowable costs shall be deter- mined in accordance with Section 55.15 of the Regulations. 49 U. S. DEPARTMENT OF LAB Manpower Administratic LISTING OF REGIONAL OFFICES AND STATES SERVED Region Number Location (and telephone number) States Served Room 1703, J.F. Kennedy Bldg. Connecticut, New Hampshire Government Center Maine, Rhode Island, Boston, Massachusetts 02203 Massachusetts, Vermont (617) 223-6439 II 341 Ninth Avenue, Room 716 New Jersey, Puerto Rico, New York, New York 10001 New York, Virgin Islands (212) 971-5445 III U.S. Department of Labor Delaware, Virginia, P.O. Box 8796 Maryland, West Virginia Philadelphia, Pennsylvania Pennsylvania (215) 438-5200 19101 IV 1371 Peachtree Street, NE. Alabama, Mississippi, Room 405 Florida, North Carolina Atlanta, Georgia 30309 Georgia, South Carolina (404) 526-5411 Kentucky, Tennessee V Federal Building, Room 2402 Illinois, Minnesota, 219 South Dearborn Street Indiana, Ohio, Chicago, Illinois 60604 Michigan, Wisconsin (312) 353-4258 VI Federal Building Arkansas, Oklahoma, 1100 Commerce Street Louisiana, Texas, Dallas, Texas 75202 New Mexico (214) 749-2841 VII Federal Building, Room 3000 Iowa, Missouri, Kansas, 911 Walnut Street Nebraska Kansas City, Missouri 64106 (816) 374-3796 VIII 16015 Federal Office Building Colorado, South Dakota 1961 Stout Street Montana, Utah, North Dakota, Denver, Colorado 80202 Wyoming (303) 837-4477 IX Room 10064, Federal Building Arizona, Trust Territory, 450 Golden Gate Avenue California, Nevada, San Francisco, California Hawaii, American Samoa, (415) 556-7414 94102 Guam X Arcade Plaza Alaska, Oregon, Idaho, 1321 2nd Avenue Washington Seattle, Washington 98101 (206) 442-7700 D.C. Manpower Administration District of Columbia District Bldg. , Room 220 14th and E Streets, NW. Washington D. C. 20004 (202) 629-3663 50 APPENDIX B 53/ t/ i1 POVERTY LEVEL INCOME CRITERIA To determine the eligibility of potential EEA participants as underemployed, the following income criteria will be used: Family Sire Nonfarm Farm 1 $1900 $1600 2 2500 2000 3 3100 2500 4 3800 3200 5 4400 3700 6 5000 4200 7 5600 4700 For families with more than 7 members, add $600 for each additional member in a nonfarm family and $500 for each additional member in a farm family. The following income criteria shall apply for the state of Alaska only: Family Size• Income Nonfarm Income Farm 1 $2400 $2000 2 3150 2625 3 3900 3275 4 4750 3975 5 5500 4600 6 6250 5225 7 7000 5850 51 For families with more than 7 members, add $750 for each additional family member in a nonfarm family and $625 for each additional member in a farm family. The following income criteria shallapply for the state of Hawaii only: Family Size Income Nonfarm Income Farm 1 $2250 $1875 2 2900 2400 3 3550 2950 4 4250 3550 5 4900 4075 6 5550 4600 7 6200 5125 For families with more than 7 members, add $650 for each additional family member in a nonfarm family and $525 for each additional family member in a farm family. 52 APPENDIX C ILLUSTRATIVE LIST OF EXPANDING PUBLIC SERVICE OCCUPATIONS Librarians Social, Welfare and Recreation Work Technician (Medical and Dental) Nursing (Registered, Licensed Practical and Nurse aides) Secretaries-Typists Office-Machine Operators Policemen and Guards Firemen Building Service Workers Dietitians Public Personnel and Training Data Processing Juvenile Counseling 'Vocational Counseling Probation Workers Physical Therapy Public Administration Community Health Aide Housing Inspection Police Community Relations Child Care Instructors Neighborhood Worker Recreation Aides Education Aides I authorize the following individual(s) to sign grant documents, invoices and other instruments under the provisions of the Emergency Employment Act of 1971: NAME TITLE SIGNATURE Authorized Official • / Hello