Sec. 301 Short title
This subtitle may be cited as the “Supporting Unemployed Workers Act of 2013”.
Title III — Assistance for the unemployed and pathways back to work
III Assistance for the unemployed and pathways back to work
A Supporting unemployed workers
I Extension of emergency unemployment compensation and certain extended benefits provisions, and establishment of self-Employment assistance program
Sec. 311 Extension of emergency unemployment compensation program
In general— Section 4007 of the Supplemental Appropriations Act, 2008 (Public Law 110–252; 26 U.S.C. 3304 note) is amended by striking “January 1, 2014” and inserting “January 1, 2016”.
Funding— Section 4004(e)(1) of the Supplemental Appropriations Act, 2008 (Public Law 110–252; 26 U.S.C. 3304 note) is amended—
in subparagraph (I), by striking “and” at the end;
in subparagraph (J), by inserting “and” at the end; and
by inserting after subparagraph (J) the following:
“(K) the amendments made by section 311(a) of the Supporting Unemployed Workers Act of 2013; and”
Effective date— The amendments made by this section shall take effect as if included in the enactment of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (Public Law 111–312; 26 U.S.C. 3304 note).
Sec. 312 Temporary extension of extended benefit provisions
In general— Section 2005 of the Assistance for Unemployed Workers and Struggling Families Act, as contained in Public Law 111–5 (26 U.S.C. 3304 note), is amended—
by striking “December 31, 2013” each place it appears and inserting “December 31, 2015”; and
in subsection (c), by striking “June 30, 2014” and inserting “June 30, 2016”.
Extension of matching for states with no waiting week— Section 5 of the Unemployment Compensation Extension Act of 2008 (Public Law 110–449; 26 U.S.C. 3304 note) is amended by striking “June 30, 2014” and inserting “June 30, 2016”.
Extension of modification of indicators under the extended benefit program— Section 203 of the Federal-State Extended Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note) is amended—
in subsection (d), by striking “December 31, 2013” and inserting “December 31, 2015”; and
in subsection (f)(2), by striking “December 31, 2013” and inserting “December 31, 2015”.
Effective date— The amendments made by this section shall take effect as if included in the enactment of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (Public Law 111–312; 26 U.S.C. 3304 note).
Sec. 313 Additional extended unemployment benefits under the Railroad Unemployment Insurance Act
Extension— Section 2(c)(2)(D)(iii) of the Railroad Unemployment Insurance Act (45 U.S.C. 352(c)(2)(D)(iii)) is amended—
by striking “June 30, 2013” and inserting “June 30, 2015”; and
by striking “December 31, 2013” and inserting “December 31, 2015”.
Clarification on authority To use funds— Funds appropriated under either the first or second sentence of clause (iv) of section 2(c)(2)(D) of the Railroad Unemployment Insurance Act (45 U.S.C. 352(c)(2)(D)) shall be available to cover the cost of additional extended unemployment benefits provided under such section 2(c)(2)(D) by reason of the amendments made by subsection (a) as well as to cover the cost of such benefits provided under such section 2(c)(2)(D), as in effect on the day before the date of the enactment of this Act.
II Reemployment NOW program
Sec. 321 Establishment of reemployment NOW program
In general— There is established the Reemployment NOW program to be carried out by the Secretary of Labor in accordance with this part in order to facilitate the reemployment of individuals who are receiving emergency unemployment compensation under title IV of the Supplemental Appropriations Act, 2008 (Public Law 110–252; 26 U.S.C. 3304 note) (hereafter in this part referred to as “EUC claimants”).
Authorization and appropriation— There are authorized to be appropriated $4,000,000,000 for fiscal year 2014 to carry out the Reemployment NOW program under this part.
Sec. 322 Distribution of funds
In general— Of the amount made available under section 321(b) to carry out this part, the Secretary of Labor shall—
reserve up to 1 percent for the costs of Federal administration and for carrying out rigorous evaluations of the activities conducted under this part; and
allot the remainder of the funds not reserved under paragraph (1) in accordance with the requirements of subsection (b) and (c) to States that have approved plans under section 323.
Allotment formula—
Formula factors— The Secretary of Labor shall allot the funds available under subsection (a)(2) as follows—
two-thirds of such funds shall be allotted on the basis of the relative number of unemployed individuals in each State, compared to the total number of unemployed individuals in all States; and
one-third of such funds shall be allotted on the basis of the relative number of individuals in each State who have been unemployed for 27 weeks or more, compared to the total number of individuals in all States who have been unemployed for 27 weeks or more.
Calculation— For purposes of paragraph (1), the number of unemployed individuals and the number of individuals unemployed for 27 weeks or more shall be based on the data for the most recent 12-month period, as determined by the Secretary.
Reallotment—
Failure to submit state plan— If a State does not submit a State plan by the time specified in section 323(b), or a State does not receive approval of a State plan, the amount the State would have been eligible to receive pursuant to the formula under subsection (b) shall be allotted to States that receive approval of the State plan under section 323 in accordance with the relative allotments of such States as determined by the Secretary under subsection (b).
Failure to implement activities on a timely basis— The Secretary of Labor may, in accordance with procedures and criteria established by the Secretary, recapture the portion of the State allotment under this part that remains unobligated if the Secretary determines such funds are not being obligated at a rate sufficient to meet the purposes of this part. The Secretary shall reallot such recaptured funds to other States that are not subject to recapture in accordance with the relative share of the allotments of such States as determined by the Secretary under subsection (b).
Recapture of funds— Funds recaptured under paragraph (2) shall be available for reobligation not later than December 31, 2015.
Sec. 323 State plan
In general— For a State to be eligible to receive an allotment under section 322, a State shall submit to the Secretary of Labor a State plan in such form and containing such information as the Secretary may require, which at a minimum shall include—
a description of the activities to be carried out by the State to assist in the reemployment of eligible individuals to be served in accordance with this part, including which of the activities authorized in sections 324–328 the State intends to carry out and an estimate of the amounts the State intends to allocate to the activities, respectively;
a description of the performance outcomes to be achieved by the State through the activities carried out under this part, including the employment outcomes to be achieved by participants and the processes the State will use to track performance, consistent with guidance provided by the Secretary of Labor regarding such outcomes and processes;
a description of coordination of activities to be carried out under this part with activities under title I of the Workforce Investment Act of 1998, the Wagner-Peyser Act, and other appropriate Federal programs;
the timelines for implementation of the activities described in the plan and the number of EUC claimants expected to be enrolled in such activities by quarter;
assurances that the State will participate in the evaluation activities carried out by the Secretary of Labor under this section;
assurances that the State will provide appropriate reemployment services, including counseling, to any EUC claimant who participates in any of the programs authorized under this part; and
assurances that the State will report such information as the Secretary may require relating to fiscal, performance and other matters, including employment outcomes and effects, which the Secretary determines are necessary to effectively monitor the activities carried out under this part.
Plan submission and approval— A State plan under this section shall be submitted to the Secretary of Labor for approval not later than 30 days after the Secretary issues guidance relating to submission of such plan. The Secretary shall approve such plans if the Secretary determines that the plans meet the requirements of this part and are appropriate and adequate to carry out the purposes of this part.
Plan modifications— A State may submit modifications to a State plan that has been approved under this part, and the Secretary of Labor may approve such modifications, if the plan as modified would meet the requirements of this part and are appropriate and adequate to carry out the purposes of this part.
Sec. 324 Bridge to work program
In general— A State may use funds allotted to the State under this part to establish and administer a Bridge to Work program described in this section.
Description of program— In order to increase individuals’ opportunities to move to permanent employment, a State may establish a Bridge to Work program to provide an EUC claimant with short-term work experience placements with an eligible employer, during which time such individual—
shall be paid emergency unemployment compensation payable under title IV of the Supplemental Appropriations Act, 2008 (Public Law 110–252; 26 U.S.C. 3304 note), as wages for work performed, and as specified in subsection (c);
shall be paid the additional amount described in subsection (e) as augmented wages for work performed; and
may be paid compensation in addition to the amounts described in paragraphs (1) and (2) by a State or by a participating employer as wages for work performed.
Program eligibility and other requirements— For purposes of this program—
individuals who, except for the requirements described in paragraph (3), are eligible to receive emergency unemployment compensation payments under title IV of the Supplemental Appropriations Act, 2008 (Public Law 110–252; 26 U.S.C. 3304 note), and who choose to participate in the program described in subsection (b), shall receive such payments as wages for work performed during their voluntary participation in the program described under subsection (b);
the wages payable to individuals described in paragraph (1) shall be paid from the emergency unemployment compensation account for such individual as described in section 4002 of the Supplemental Appropriations Act, 2008 (Public Law 110–252; 26 U.S.C. 3304 note), and the amount in such individual’s account shall be reduced accordingly;
the wages payable to an individual described in paragraph (1) shall be payable in the same amount, at the same interval, on the same terms, and subject to the same conditions under title IV of the Supplemental Appropriations Act, 2008 (Public Law 110–252; 26 U.S.C. 3304 note), except that—
State requirements applied under such Act relating to availability for work and active search for work are not applicable to such individuals who participate for at least 25 hours per week in the program described in subsection (b) for the duration of such individual’s participation in the program;
State requirements applied under such Act relating to disqualifying income regarding wages earned shall not apply to such individuals who participate for at least 25 hours per week in the program described in subsection (b), and shall not apply with respect to—
the wages described under subsection (b); and
any wages, in addition to those described under subsection (b), whether paid by a State or a participating employer for the same work activities;
State prohibitions or limitations applied under such Act relating to employment status shall not apply to such individuals who participate in the program described in subsection (b); and
State requirements applied under such Act relating to an individual’s acceptance of an offer of employment shall not apply with regard to an offer of long-term employment from a participating employer made to such individual who is participating in the program described in subsection (b) in a work experience provided by such employer, where such long-term employment is expected to commence or commences at the conclusion of the duration specified in paragraph (4)(A);
the program shall be structured so that individuals described in paragraph (1) may participate in the program for up to—
8 weeks, and
38 hours for each such week;
a State shall ensure that all individuals participating in the program are covered by a workers’ compensation insurance program; and
the program meets such other requirements as the Secretary of Labor determines to be appropriate in guidance issued by the Secretary.
State requirements—
Certification of eligible employer— A State may certify as eligible for participation in the program under this section any employer that meets the eligibility criteria as established in guidance by the Secretary of Labor, except that an employer shall not be certified as eligible for participation in the program described under subsection (b)—
if such employer—
is a Federal, State, or local government entity;
would engage an eligible individual in work activities under any employer’s grant, contract, or subcontract with a Federal, State, or local government entity, except with regard to work activities under any employer’s supply contract or subcontract;
is delinquent with respect to any taxes or employer contributions described under sections 3301 and 3302(a)(1) of the Internal Revenue Code of 1986 or with respect to any related reporting requirements;
is engaged in the business of supplying workers to other employers and would participate in the program for the purpose of supplying individuals participating in the program to other employers; or
has previously participated in the program and the State has determined that such employer has failed to abide by any of the requirements specified in subsections (h), (i), or (j), or by any other requirements that the Secretary may establish for employers under subsection (c)(6); and
unless such employer provides assurances that it has not displaced existing workers pursuant to the requirements of subsection (h).
Authorized activities— Funds allotted to a State under this part for the program—
shall be used to—
recruit employers for participation in the program;
review and certify employers identified by eligible individuals seeking to participate in the program;
ensure that reemployment and counseling services are available for program participants, including services describing the program under subsection (b), prior to an individual’s participation in such program;
establish and implement processes to monitor the progress and performance of individual participants for the duration of the program;
prevent misuse of the program; and
pay augmented wages to eligible individuals, if necessary, as described in subsection (e); and
may be used—
to pay workers’ compensation insurance premiums to cover all individuals participating in the program, except that, if a State opts not to make such payments directly to a State administered workers’ compensation program, the State involved shall describe in the approved State plan the means by which such State shall ensure workers’ compensation or equivalent coverage for all individuals who participate in the program;
to pay compensation to a participating individual that is in addition to the amounts described in subsections (c)(1) and (e) as wages for work performed;
to provide supportive services, such as transportation, child care, and dependent care, that would enable individuals to participate in the program;
for the administration and oversight of the program; and
to fulfill additional program requirements included in the approved State plan.
Payment of augmented wages if necessary— In the event that the wages described in subsection (c)(1) are not sufficient to equal or exceed the minimum wages that are required to be paid by an employer under section 6(a)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 206(a)(1)) or the applicable State or local minimum wage law, whichever is higher, a State shall pay augmented wages to a program participant in any amount necessary to cover the difference between—
such minimum wages amount; and
the wages payable under subsection (c)(1).
Effect of wages on eligibility for other programs— None of the wages paid under this section shall be considered as income for the purposes of determining eligibility for and the amount of income transfer and in-kind aid furnished under any Federal or federally assisted program based on need.
Effect of wages, work activities, and program participation on continuing eligibility for emergency unemployment compensation— Any wages paid under this section and any additional wages paid by an employer to an individual described in subsection (c)(1), and any work activities performed by such individual as a participant in the program, shall not be construed so as to render such individual ineligible to receive emergency unemployment compensation under title IV of the Supplemental Appropriations Act, 2008 (Public Law 110–252; 26 U.S.C. 3304 note).
Nondisplacement of employees—
Prohibition— An employer shall not use a program participant to displace (including a partial displacement, such as a reduction in the hours of non-overtime work, wages, or employment benefits) any current employee (as of the date of the participation).
Other prohibitions— An employer shall not permit a program participant to perform work activities related to any job for which—
any other individual is on layoff from the same or any substantially equivalent position;
the employer has terminated the employment of any employee or otherwise reduced the workforce of the employer with the intention of filling or partially filling the vacancy so created with the work activities to be performed by a program participant;
there is a strike or lock out at the worksite that is the participant’s place of employment; or
the job is created in a manner that will infringe in any way upon the promotional opportunities of currently employed individuals (as of the date of the participation).
Prohibition on impairment of contracts— An employer shall not, by means of assigning work activities under this section, impair an existing contract for services or a collective bargaining agreement, and no such activity that would be inconsistent with the terms of a collective bargaining agreement shall be undertaken without the written concurrence of the labor organization that is signatory to the collective bargaining agreement.
Limitation on employer participation— If, after 24 weeks of participation in the program, an employer has not made an offer of suitable long-term employment to any individual described under subsection (c)(1) who was placed with such employer and has completed the program, a State shall bar such employer from further participation in the program. States may impose additional conditions on participating employers to ensure that an appropriate number of participants receive offers of suitable long-term employment.
Failure To meet program requirements— If a State makes a determination based on information provided to the State, or acquired by the State by means of its administration and oversight functions, that a participating employer under this section has violated a requirement of this section, the State shall bar such employer from further participation in the program. The State shall establish a process whereby an individual described in subsection (c)(1), or any other affected individual or entity, may file a complaint with the State relating to a violation of any requirement or prohibition under this section.
Participant option To terminate participation in bridge to work program—
Termination— An individual who is participating in a program described in subsection (b) may opt to discontinue participation in such program.
Continued eligibility for emergency unemployment compensation— An individual who opts to discontinue participation in such program, is terminated from such program by a participating employer, or who has completed participation in such program, and who continues to meet the eligibility requirements for emergency unemployment compensation under title IV of the Supplemental Appropriations Act, 2008 (Public Law 110–252; 26 U.S.C. 3304 note), shall receive emergency unemployment compensation payments with respect to subsequent weeks of unemployment, to the extent that amounts remain in the account established for such individual under section 4002(b) of such Act or to the extent that such individual commences receiving the amounts described in subsections (c), (d), or (e) of such section, respectively.
Effect of other laws— Unless otherwise provided in this section, nothing in this section shall be construed to alter or affect the rights or obligations under any Federal, State, or local laws with respect to any individual described in subsection (c)(1) and with respect to any participating employer under this section.
Treatment of payments— All wages or other payments to an individual under this section shall be treated as payments of unemployment compensation for purposes of section 209 of the Social Security Act (42 U.S.C. 409) and for purposes of subtitle A and sections 3101, 3111, and 3301 of the Internal Revenue Code of 1986.
Sec. 325 Wage insurance
In general— A State may use the funds allotted to the State under this part to provide a wage insurance program for EUC claimants.
Benefits— The wage insurance program provided under this section may use funds allotted to the State under this part to pay, for a period not to exceed 2 years, to a worker described in subsection (c), up to 50 percent of the difference between—
the wages received by the worker at the time of separation; and
the wages received by the worker for reemployment.
Individual eligibility— The benefits described in subsection (b) may be paid to an individual who is an EUC claimant at the time such individual obtains reemployment and who—
is at least 50 years of age;
earns not more than $50,000 per year in wages from reemployment;
is employed on a full-time basis as defined by the law of the State; and
is not employed by the employer from which the individual was last separated.
Total amount of payments— A State shall establish a maximum amount of payments per individual for purposes of payments described in subsection (b) during the eligibility period described in such subsection.
Non-Discrimination regarding wages— An employer shall not pay a worker described in subsection (c) less than such employer pays to a regular worker in the same or substantially equivalent position.
Sec. 326 Enhanced reemployment strategies
In general— A State may use funds allotted under this part to provide a program of enhanced reemployment services to EUC claimants. In addition to the provision of services to such claimants, the program may include the provision of reemployment services to individuals who are unemployed and have exhausted their rights to emergency unemployment compensation under title IV of the Supplemental Appropriations Act, 2008, (Public Law 110–252; 26 U.S.C. 3304 note). The program shall provide reemployment services that are more intensive than the reemployment services provided by the State prior to the receipt of the allotment under this part.
Types of services— The enhanced reemployment services described in subsection (a) may include services such as—
assessments, counseling, and other intensive services that are provided by staff on a one-to-one basis and may be customized to meet the reemployment needs of EUC claimants and individuals described in subsection (a);
comprehensive assessments designed to identify alternative career paths;
case management;
reemployment services that are provided more frequently and more intensively than such reemployment services have previously been provided by the State; and
services that are designed to enhance communication skills, interviewing skills, and other skills that would assist in obtaining reemployment.
Sec. 327 Self-employment programs
A State may use funds allotted to the State under this part, in an amount specified under an approved State plan, for the administrative costs associated with starting up the self-employment assistance program described in section 4001(i) of the Supplemental Appropriations Act, 2008, (Public Law 110–252; 26 U.S.C. 3304 note).
Sec. 328 Additional innovative programs
In general— A State may use funds allotted under this part to provide a program for innovative activities, which use a strategy that is different from the reemployment strategies described in sections 324–327 and which are designed to facilitate the reemployment of EUC claimants. In addition to the provision of activities to such claimants, the program may include the provision of activities to individuals who are unemployed and have exhausted their rights to emergency unemployment compensation under title IV of the Supplemental Appropriations Act, 2008, (Public Law 110–252; 26 U.S.C. 3304 note).
Conditions— The innovative activities approved in accordance with subsection (a)—
shall directly benefit EUC claimants and, if applicable, individuals described in subsection (a), either as a benefit paid to such claimant or individual or as a service provided to such claimant or individual;
shall not result in a reduction in the duration or amount of, emergency unemployment compensation for which EUC claimants would otherwise be eligible;
shall not include a reduction in the duration, amount of or eligibility for regular compensation or extended benefits;
shall not be used to displace (including a partial displacement, such as a reduction in the hours of non-overtime work, wages, or employment benefits) any currently employed employee (as of the date of the participation) or allow a program participant to perform work activities related to any job for which—
any other individual is on layoff from the same or any substantially equivalent job;
the employer has terminated the employment of any regular employee or otherwise reduced the workforce of the employer with the intention of filling or partially filling the vacancy so created with the work activities to be performed by a program participant;
there is a strike or lock out at the worksite that is the participant’s place of employment; or
the job is created in a manner that will infringe in any way upon the promotional opportunities of currently employed individuals (as of the date of the participation); and
shall not be in violation of any Federal, State, or local law.
Sec. 329 Guidance and additional requirements
The Secretary of Labor may establish through guidance, without regard to the requirements of section 553 of title 5, United States Code, such additional requirements, including requirements regarding the allotment, recapture, and reallotment of funds, and reporting requirements, as the Secretary determines to be necessary to ensure fiscal integrity, effective monitoring, and appropriate and prompt implementation of the activities under this Act.
Sec. 330 Report of information and evaluations to Congress and the public
The Secretary of Labor shall provide to the appropriate Committees of the Congress and make available to the public the information reported pursuant to section 329 and the evaluations of activities carried out pursuant to the funds reserved under section 322(a)(1).
Sec. 331 State
For purposes of this part, the term State has the meaning given that term in section 205 of the Federal-State Extended Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note).
III Short-Time compensation program
Sec. 341 Temporary financing of short-time compensation payments in states with programs in law
Payments to states—
In general— Subject to paragraph (3), there shall be paid to a State an amount equal to 100 percent of the amount of short-time compensation paid under a short-time compensation program (as defined in section 3306(v) of the Internal Revenue Code of 1986) under the provisions of the State law.
Terms of payments— Payments made to a State under paragraph (1) shall be payable by way of reimbursement in such amounts as the Secretary estimates the State will be entitled to receive under this section for each calendar month, reduced or increased, as the case may be, by any amount by which the Secretary finds that the Secretary’s estimates for any prior calendar month were greater or less than the amounts which should have been paid to the State. Such estimates may be made on the basis of such statistical, sampling, or other method as may be agreed upon by the Secretary and the State agency of the State involved.
Limitations on payments—
General payment limitations— No payments shall be made to a State under this section for short-time compensation paid to an individual by the State during a benefit year in excess of 26 times the amount of regular compensation (including dependents’ allowances) under the State law payable to such individual for a week of total unemployment.
Employer limitations— No payments shall be made to a State under this section for benefits paid to an individual by the State under a short-time compensation program if such individual is employed by the participating employer on a seasonal, temporary, or intermittent basis.
Applicability—
In general— Payments to a State under subsection (a) shall be available for weeks of unemployment—
beginning on or after the date of the enactment of this Act; and
ending on or before the date that is 3 years and 6 months after the date of the enactment of this Act.
Three-year funding limitation for combined payments under this section and section 343— States may receive payments under this section and section 343 with respect to a total of not more than 156 weeks.
Two-Year transition period for existing programs— During any period that the transition provision under section 341(a)(3) is applicable to a State with respect to a short-time compensation program, such State shall be eligible for payments under this section. Subject to paragraphs (1)(B) and (2) of subsection (b), if at any point after the date of the enactment of this Act the State enacts a State law providing for the payment of short-time compensation under a short-time compensation program that meets the definition of such a program under section 3306(v) of the Internal Revenue Code of 1986, the State shall be eligible for payments under this section after the effective date of such enactment.
Funding and certifications—
Funding— There are appropriated, out of moneys in the Treasury not otherwise appropriated, such sums as may be necessary for purposes of carrying out this section.
Certifications— The Secretary shall from time to time certify to the Secretary of the Treasury for payment to each State the sums payable to such State under this section.
Definitions— In this section:
Secretary— The term Secretary means the Secretary of Labor.
State; state agency; state law— The terms State, State agency, and State law have the meanings given those terms in section 205 of the Federal-State Extended Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note).
Sec. 342 Temporary financing of short-time compensation agreements
Federal-State agreements—
In general— Any State which desires to do so may enter into, and participate in, an agreement under this section with the Secretary provided that such State’s law does not provide for the payment of short-time compensation under a short-time compensation program (as defined in section 3306(v) of the Internal Revenue Code of 1986).
Ability to terminate— Any State which is a party to an agreement under this section may, upon providing 30 days’ written notice to the Secretary, terminate such agreement.
Provisions of Federal-State agreement—
In general— Any agreement under this section shall provide that the State agency of the State will make payments of short-time compensation under a plan approved by the State. Such plan shall provide that payments are made in accordance with the requirements under section 3306(v) of the Internal Revenue Code of 1986.
Limitations on plans—
General payment limitations— A short-time compensation plan approved by a State shall not permit the payment of short-time compensation to an individual by the State during a benefit year in excess of 26 times the amount of regular compensation (including dependents’ allowances) under the State law payable to such individual for a week of total unemployment.
Employer limitations— A short-time compensation plan approved by a State shall not provide payments to an individual if such individual is employed by the participating employer on a seasonal, temporary, or intermittent basis.
Employer payment of costs— Any short-time compensation plan entered into by an employer must provide that the employer will pay the State an amount equal to one-half of the amount of short-time compensation paid under such plan. Such amount shall be deposited in the State’s unemployment fund and shall not be used for purposes of calculating an employer’s contribution rate under section 3303(a)(1) of the Internal Revenue Code of 1986.
Payments to States—
In general— There shall be paid to each State with an agreement under this section an amount equal to—
one-half of the amount of short-time compensation paid to individuals by the State pursuant to such agreement; and
any additional administrative expenses incurred by the State by reason of such agreement (as determined by the Secretary).
Terms of payments— Payments made to a State under paragraph (1) shall be payable by way of reimbursement in such amounts as the Secretary estimates the State will be entitled to receive under this section for each calendar month, reduced or increased, as the case may be, by any amount by which the Secretary finds that the Secretary’s estimates for any prior calendar month were greater or less than the amounts which should have been paid to the State. Such estimates may be made on the basis of such statistical, sampling, or other method as may be agreed upon by the Secretary and the State agency of the State involved.
Funding— There are appropriated, out of moneys in the Treasury not otherwise appropriated, such sums as may be necessary for purposes of carrying out this section.
Certifications— The Secretary shall from time to time certify to the Secretary of the Treasury for payment to each State the sums payable to such State under this section.
Applicability—
In general— An agreement entered into under this section shall apply to weeks of unemployment—
beginning on or after the date on which such agreement is entered into; and
ending on or before the date that is 2 years and 13 weeks after the date of the enactment of this Act.
Two-year funding limitation— States may receive payments under this section with respect to a total of not more than 104 weeks.
Special rule— If a State has entered into an agreement under this section and subsequently enacts a State law providing for the payment of short-time compensation under a short-time compensation program that meets the definition of such a program under section 3306(v) of the Internal Revenue Code of 1986, the State—
shall not be eligible for payments under this section for weeks of unemployment beginning after the effective date of such State law; and
subject to paragraphs (1)(B) and (2) of section 342(b), shall be eligible to receive payments under section 342 after the effective date of such State law.
Definitions— In this section:
Secretary— The term Secretary means the Secretary of Labor.
State; state agency; state law— The terms State, State agency, and State law have the meanings given those terms in section 205 of the Federal-State Extended Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note).
Sec. 343 Grants for short-time compensation programs
Grants—
For implementation or improved administration— The Secretary shall award grants to States that enact short-time compensation programs (as defined in subsection (i)(2)) for the purpose of implementation or improved administration of such programs.
For promotion and enrollment— The Secretary shall award grants to States that are eligible and submit plans for a grant under paragraph (1) for such States to promote and enroll employers in short-time compensation programs (as so defined).
Eligibility—
In general— The Secretary shall determine eligibility criteria for the grants under paragraph (1) and (2).
Clarification— A State administering a short-time compensation program, including a program being administered by a State that is participating in the transition under the provisions of sections 341(a)(3) and 342(c), that does not meet the definition of a short-time compensation program under section 3306(v) of the Internal Revenue Code of 1986, and a State with an agreement under section 343, shall not be eligible to receive a grant under this section until such time as the State law of the State provides for payments under a short-time compensation program that meets such definition and such law.
Amount of grants—
In general— The maximum amount available for making grants to a State under paragraphs (1) and (2) shall be equal to the amount obtained by multiplying $700,000,000 (less the amount used by the Secretary under subsection (e)) by the same ratio as would apply under subsection (a)(2)(B) of section 903 of the Social Security Act (42 U.S.C. 1103) for purposes of determining such State’s share of any excess amount (as described in subsection (a)(1) of such section) that would have been subject to transfer to State accounts, as of October 1, 2013, under the provisions of subsection (a) of such section.
Amount available for different grants— Of the maximum incentive payment determined under paragraph (1) with respect to a State—
one-third shall be available for a grant under subsection (a)(1); and
two-thirds shall be available for a grant under subsection (a)(2).
Grant application and disbursal—
Application— Any State seeking a grant under paragraph (1) or (2) of subsection (a) shall submit an application to the Secretary at such time, in such manner, and complete with such information as the Secretary may require. In no case may the Secretary award a grant under this section with respect to an application that is submitted after December 31, 2014.
Notice— The Secretary shall, within 30 days after receiving a complete application, notify the State agency of the State of the Secretary’s findings with respect to the requirements for a grant under paragraph (1) or (2) (or both) of subsection (a).
Certification— If the Secretary finds that the State law provisions meet the requirements for a grant under subsection (a), the Secretary shall thereupon make a certification to that effect to the Secretary of the Treasury, together with a certification as to the amount of the grant payment to be transferred to the State account in the Unemployment Trust Fund (as established in section 904(a) of the Social Security Act (42 U.S.C. 1104(a))) pursuant to that finding. The Secretary of the Treasury shall make the appropriate transfer to the State account within 7 days after receiving such certification.
Requirement— No certification of compliance with the requirements for a grant under paragraph (1) or (2) of subsection (a) may be made with respect to any State whose—
State law is not otherwise eligible for certification under section 303 of the Social Security Act (42 U.S.C. 503) or approvable under section 3304 of the Internal Revenue Code of 1986; or
short-time compensation program is subject to discontinuation or is not scheduled to take effect within 12 months of the certification.
Use of funds— The amount of any grant awarded under this section shall be used for the implementation of short-time compensation programs and the overall administration of such programs and the promotion and enrollment efforts associated with such programs, such as through—
the creation or support of rapid response teams to advise employers about alternatives to layoffs;
the provision of education or assistance to employers to enable them to assess the feasibility of participating in short-time compensation programs; and
the development or enhancement of systems to automate—
the submission and approval of plans; and
the filing and approval of new and ongoing short-time compensation claims.
Administration— The Secretary is authorized to use 0.25 percent of the funds available under subsection (g) to provide for outreach and to share best practices with respect to this section and short-time compensation programs.
Recoupment— The Secretary shall establish a process under which the Secretary shall recoup the amount of any grant awarded under paragraph (1) or (2) of subsection (a) if the Secretary determines that, during the 5-year period beginning on the first date that any such grant is awarded to the State, the State—
terminated the State’s short-time compensation program; or
failed to meet appropriate requirements with respect to such program (as established by the Secretary).
Funding— There are appropriated, out of moneys in the Treasury not otherwise appropriated, to the Secretary, $700,000,000 to carry out this section, to remain available without fiscal year limitation.
Reporting— The Secretary may establish reporting requirements for States receiving a grant under this section in order to provide oversight of grant funds.
Definitions— In this section:
Secretary— The term “Secretary” means the Secretary of Labor.
Short-time compensation program— The term “short-time compensation program” has the meaning given such term in section 3306(v) of the Internal Revenue Code of 1986.
State; State agency; State law— The terms “State”, “State agency”, and “State law” have the meanings given those terms in section 205 of the Federal-State Extended Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note).
Sec. 344 Assistance and guidance in implementing programs
In general— In order to assist States in establishing, qualifying, and implementing short-time compensation programs (as defined in section 3306(v) of the Internal Revenue Code of 1986), the Secretary of Labor (in this section referred to as the “Secretary”) shall—
develop model legislative language which may be used by States in developing and enacting such programs and periodically review and revise such model legislative language;
provide technical assistance and guidance in developing, enacting, and implementing such programs;
establish reporting requirements for States, including reporting on—
the number of estimated averted layoffs;
the number of participating employers and workers; and
such other items as the Secretary of Labor determines are appropriate.
Model language and guidance— The model language and guidance developed under subsection (a) shall allow sufficient flexibility by States and participating employers while ensuring accountability and program integrity.
Consultation— In developing the model legislative language and guidance under subsection (a), and in order to meet the requirements of subsection (b), the Secretary shall consult with employers, labor organizations, State workforce agencies, and other program experts.
Sec. 345 Reports
Reports—
In general— Not later than 4 years after the date of the enactment of this Act, the Secretary of Labor shall submit to Congress and to the President a report or reports on the implementation of the provisions of this Act.
Requirements— Any report under paragraph (1) shall at a minimum include the following:
A description of best practices by States and employers in the administration, promotion, and use of short-time compensation programs (as defined in section 3306(v) of the Internal Revenue Code of 1986).
An analysis of the significant challenges to State enactment and implementation of short-time compensation programs.
A survey of employers in States that have not enacted a short-time compensation program or entered into an agreement with the Secretary on a short-time compensation plan to determine the level of interest among such employers in participating in short-time compensation programs.
Funding— There are appropriated, out of any moneys in the Treasury not otherwise appropriated, to the Secretary of Labor, $1,500,000 to carry out this section, to remain available without fiscal year limitation.
B Long-Term unemployed hiring preferences
Sec. 351 Long-term unemployed workers work opportunity tax credits
In general— Paragraph (3) of section 51(b) of the Internal Revenue Code is amended by inserting “$10,000 per year in the case of any individual who is a qualified long-term unemployed individual by reason of subsection (d)(11), and” before “$12,000 per year”.
Long-Term unemployed individuals tax credits— Subsection (d) of section 51 of the Internal Revenue Code is amended—
in paragraph (1), by striking “or” at the end of subparagraph (H), by striking the period at the end of subparagraph (I) and inserting “, or”, and by inserting after subparagraph (I) the following:
“(J) a qualified long-term unemployed individual.”
by redesignating paragraphs (11) through (14) as paragraphs (12) through (15), respectively, and by inserting after paragraph (10) the following new paragraph:
“(11) Qualified long-term unemployed individual
“(A) In general—The term “qualified long-term unemployed individual” means any individual who was not a student for at least 6 months during the 1-year period ending on the hiring date and is certified by the designated local agency as having aggregate periods of unemployment during the 1-year period ending on the hiring date which equal or exceed 6 months.
“(B) Student—For purposes of this subsection, a student is an individual enrolled at least half-time in a program that leads to a degree, certificate, or other recognized educational credential for at least 6 months whether or not consecutive during the 1-year period ending on the hiring date.”
Simplified certification— Section 51(d) of the Internal Revenue Code, as amended by subsection (b), is amended by adding at the end the following new paragraph:
“(16) Credit allowed for qualified long-term unemployed individuals
“(A) In general—Any qualified long-term unemployed individual under paragraph (11) will be treated as certified by the designated local agency as having aggregate periods of unemployment if the individual is certified by the designated local agency as being in receipt of unemployment compensation under State or Federal law for not less than 6 months during the 1-year period ending on the hiring date.
“(B) Regulatory authority—The Secretary in his discretion may provide alternative methods for certification.”
Credit made available to tax-Exempt employers in certain circumstances— Section 3111(e) of the Internal Revenue Code is amended—
in the heading for the subsection is amended by inserting “and qualified long-Term unemployed individuals” after “qualified veterans”,
in paragraph (1) by inserting “or qualified long-term unemployed individual” after “qualified veteran”,
in paragraph (2) by inserting “and qualified long-term unemployed individuals” after “qualified veterans”,
in paragraph (3)(C) by inserting “and qualified long-term unemployed individual, as the case may be,” after “qualified veteran”,
in paragraph (4) by inserting “or qualified long-term unemployed individual” after “qualified veteran” both places it appears, and
in paragraph (5) by striking “and” at the end of subparagraph (A), by striking the period at the end of subparagraph (B) and inserting “, and”, and by adding at the end the following:
“(C) the term “qualified long-term unemployed individual” has meaning given such term by section 51(d)(11).”
Effective date— The amendments made by this section shall apply to individuals who begin work for the employer after the date of the enactment of this Act.
C Pathways Back to Work
Sec. 361 Short title
This subtitle may be cited as the “Pathways Back to Work Act of 2013”.
Sec. 362 Authorization of appropriations
There is authorized to be appropriated to the Secretary of Labor $5,000,000,000 to carry out this subtitle.
Sec. 363 Availability of funds
In general— Of the amounts available under section 362(b), the Secretary of Labor shall—
allot $2,000,000,000 in accordance with section 364 to provide subsidized employment to unemployed, low-income adults;
allot $1,500,000,000 in accordance with section 365 to provide summer and year-round employment opportunities to low-income youth; and
award $1,500,000,000 in competitive grants in accordance with section 366 to local entities to carry out work-based training and other work-related and educational strategies and activities of demonstrated effectiveness to unemployed, low-income adults and low-income youth to provide the skills and assistance needed to obtain employment.
Reservation— The Secretary of Labor may reserve not more than 1 percent of amounts available under each of paragraphs (1) through (3) of subsection (a) for the costs of technical assistance, evaluations and Federal administration of this Act.
Period of availability— The amounts appropriated under this Act shall be available for obligation by the Secretary of Labor until December 31, 2014, and shall be available for expenditure by grantees and subgrantees until September 30, 2015.
Sec. 364 Subsidized employment for unemployed, low-income adults
In general—
Allotments— From the funds available under section 363(a)(1), the Secretary of Labor shall make an allotment under subsection (b) to each State that has a State plan approved under subsection (c) and to each outlying area and Native American grantee under section 166 of the Workforce Investment Act of 1998 that meets the requirements of this section, for the purpose of providing subsidized employment opportunities to unemployed, low-income adults.
Guidance— Not later than 30 days after the date of enactment of this Act, the Secretary of Labor, in coordination with the Secretary of Health and Human Services, shall issue guidance regarding the implementation of this section. Such guidance shall, consistent with this section, include procedures for the submission and approval of State and local plans and the allotment and allocation of funds, including reallotment and reallocation of such funds, that promote the expeditious and effective implementation of the activities authorized under this section.
State allotments—
Reservations for outlying areas and tribes— Of the funds described subsection (a)(1), the Secretary shall reserve—
not more than one-quarter of one percent to provide assistance to outlying areas to provide subsidized employment to low-income adults who are unemployed; and
1.5 percent to provide assistance to grantees of the Native American programs under section 166 of the Workforce Investment Act of 1998 to provide subsidized employment to low-income adults who are unemployed.
States— After determining the amounts to be reserved under paragraph (1), the Secretary of Labor shall allot the remainder of the amounts described in subsection (a)(1) among the States as follows—
one-third shall be allotted on the basis of the relative number of unemployed individuals in areas of substantial unemployment in each State, compared to the total number of unemployed individuals in areas of substantial unemployment in all States;
one-third shall be allotted on the basis of the relative excess number of unemployed individuals in each State, compared to the total excess number of unemployed individuals in all States; and
one-third shall be allotted on the basis of the relative number of disadvantaged adults and youth in each State, compared to the total number of disadvantaged adults and youth in all States.
Definitions— For purposes of the formula described in paragraph (2)—
Area of substantial unemployment— The term “area of substantial unemployment” means any contiguous area with a population of at least 10,000 and that has an average rate of unemployment of at least 6.5 percent for the most recent 12 months, as determined by the Secretary.
Disadvantaged adults and youth— The term “disadvantaged adults and youth” means an individual who is age 16 and older (subject to section 132(b)(1)(B)(v)(I) of the Workforce Investment Act of 1998) who received an income, or is a member of a family that received a total family income, that, in relation to family size, does not exceed the higher of—
the poverty line; or
70 percent of the lower living standard income level.
Excess number— The term “excess number” means, used with respect to the excess number of unemployed individuals within a State, the higher of—
the number that represents the number of unemployed individuals in excess of 4.5 percent of the civilian labor force in the State; or
the number that represents the number of unemployed individuals in excess of 4.5 percent of the civilian labor force in areas of substantial unemployment in such State.
Reallotment— If the Governor of a State does not submit a State plan by the time specified in subsection (c), or a State does not receive approval of a State plan, the amount the State would have been eligible to receive pursuant to the formula under paragraph (2) shall be added to the amounts available for the competitive grants under section 363(a)(3).
State plan—
In general— For a State to be eligible to receive an allotment of the funds under subsection (b), the Governor of the State shall submit to the Secretary of Labor a State plan in such form and containing such information as the Secretary may require. At a minimum, such plan shall include—
a description of the strategies and activities to be carried out by the State, in coordination with employers in the State, to provide subsidized employment opportunities to unemployed, low-income adults, including strategies relating to the level and duration of subsidies consistent with subsection (e)(2);
a description of the requirements the State will apply relating to the eligibility of unemployed, low-income adults, consistent with section 368(6), for subsidized employment opportunities, which may include criteria to target assistance to particular categories of such adults, such as individuals with disabilities or individuals who have exhausted all rights to unemployment compensation;
a description of how the funds allotted to provide subsidized employment opportunities will be administered in the State and local areas, in accordance with subsection (d);
a description of the performance outcomes to be achieved by the State through the activities carried out under this section and the processes the State will use to track performance, consistent with guidance provided by the Secretary of Labor regarding such outcomes and processes and with section 367(b);
a description of the coordination of activities to be carried out with the funds provided under this section with activities under title I of the Workforce Investment Act of 1998, the TANF program under part A of title IV of the Social Security Act, and other appropriate Federal and State programs that may assist unemployed, low-income adults in obtaining and retaining employment;
a description of the timelines for implementation of the activities described in subparagraph (A), and the number of unemployed, low-income adults expected to be placed in subsidized employment by quarter;
assurances that the State will report such information as the Secretary of Labor may require relating to fiscal, performance and other matters that the Secretary determines is necessary to effectively monitor the activities carried out under this section; and
assurances that the State will ensure compliance with the labor standards and protections described in section 367(a) of this Act.
Submission and approval of state plan—
Submission with other plans— The State plan described in this subsection may be submitted in conjunction with the State plan modification or request for funds required under section 365, and may be submitted as a modification to a State plan that has been approved under section 112 of the Workforce Investment Act of 1998.
Submission and approval—
Submission— The Governor shall submit a plan to the Secretary of Labor not later than 75 days after the enactment of this Act and the Secretary of Labor shall make a determination regarding the approval or disapproval of such plans not later than 45 days after the submission of such plan. If the plan is disapproved, the Secretary of Labor may provide a reasonable period of time in which a disapproved plan may be amended and resubmitted for approval.
Approval— The Secretary of Labor shall approve a State plan that the Secretary determines is consistent with requirements of this section and reasonably appropriate and adequate to carry out the purposes of this section. If the plan is approved, the Secretary shall allot funds to States within 30 days after such approval.
Modifications to state plan— The Governor may submit a modification to a State plan under this subsection consistent with the requirements of this section.
Administration within the state—
Option— The State may administer the funds for activities under this section through—
the State and local entities responsible for the administration of the adult formula program under title I–B of the Workforce Investment Act of 1998;
the entities responsible for the administration of the TANF program under part A of title IV of the Social Security Act; or
a combination of the entities described in subparagraphs (A) and (B).
Within-state allocations—
Allocation of funds— The Governor may reserve up to 5 percent of the allotment under subsection (b)(2) for administration and technical assistance, and shall allocate the remainder, in accordance with the option elected under paragraph (1)—
among local workforce investment areas within the State in accordance with the factors identified in subsection (b)(2), except that for purposes of such allocation references to a State in such paragraph shall be deemed to be references to a local workforce investment area and references to all States shall be deemed to be references to all local areas in the State involved, of which not more than 10 percent of the funds allocated to a local workforce investment area may be used for the costs of administration of this section; or
through entities responsible for the administration of the TANF program under part A of title IV of the Social Security Act in local areas in such manner as the State may determine appropriate.
Local plans—
In general— In the case where the responsibility for the administration of activities is to be carried out by the entities described under paragraph (1)(A), in order to receive an allocation under subparagraph (A)(i), a local workforce investment board, in partnership with the chief elected official of the local workforce investment area involved, shall submit to the Governor a local plan for the use of such funds under this section not later than 30 days after the submission of the State plan. Such local plan may be submitted as a modification to a local plan approved under section 118 of the Workforce Investment Act of 1998.
Contents— The local plan described in clause (i) shall contain the elements described in subparagraphs (A)–(H) of subsection (c)(1), as applied to the local workforce investment area.
Approval— The Governor shall approve or disapprove the local plan submitted under clause (i) within 30 days after submission, or if later, 30 days after the approval of the State plan. The Governor shall approve the plan unless the Governor determines that the plan is inconsistent with requirements of this section or is not reasonably appropriate and adequate to carry out the purposes of this section. If the Governor has not made a determination within the period specified under the first sentence of this clause, the plan shall be considered approved. If the plan is disapproved, the Governor may provide a reasonable period of time in which a disapproved plan may be amended and resubmitted for approval. The Governor shall allocate funds to local workforce investment areas with approved plans within 30 days after such approval.
Reallocation of funds to local areas— If a local workforce investment board does not submit a local plan by the time specified in subparagraph (B) or the Governor does not approve a local plan, the amount the local workforce investment area would have been eligible to receive pursuant to the formula under subparagraph (A)(i) shall be allocated to local workforce investment areas that receive approval of the local plan under subparagraph (B). Such reallocations shall be made in accordance with the relative share of the allocations to such local workforce investment areas applying the formula factors described under subparagraph (A)(i).
Use of funds—
In general— The funds under this section shall be used to provide subsidized employment for unemployed, low-income adults. The State and local entities described in subsection (d)(1) may use a variety of strategies in recruiting employers and identifying appropriate employment opportunities, with a priority to be provided to employment opportunities likely to lead to unsubsidized employment in emerging or in-demand occupations in the local area. Funds under this section may be used to provide support services, such as transportation and child care, that are necessary to enable the participation of individuals in subsidized employment opportunities.
Level of subsidy and duration— The States or local entities described in subsection (d)(1) may determine the percentage of the wages and costs of employing a participant for which an employer may receive a subsidy with the funds provided under this section, and the duration of such subsidy, in accordance with guidance issued by the Secretary. The State or local entities may establish criteria for determining such percentage or duration using appropriate factors such as the size of the employer and types of employment.
Coordination of Federal administration— The Secretary of Labor shall administer this section in coordination with the Secretary of Health and Human Services to ensure the effective implementation of this section.
Sec. 365 Summer employment and year-round employment opportunities for low-income youth
In general— From the funds available under section 363(a)(2), the Secretary of Labor shall make an allotment under subsection (c) to each State that has a State plan modification (or other form of request for funds specified in guidance under subsection (b)) approved under subsection (d) and to each outlying area and Native American grantee under section 166 of the Workforce Investment Act of 1998 that meets the requirements of this section, for the purpose of providing summer employment and year-round employment opportunities to low-income youth.
Guidance and application of requirements—
Guidance— Not later than 20 days after the date of enactment of this Act, the Secretary of Labor shall issue guidance regarding the implementation of this section. Such guidance shall, consistent with this section, include procedures for the submission and approval of State plan modifications, or for forms of requests for funds by the State as may be identified in such guidance, local plan modifications, or other forms of requests for funds from local workforce investment areas as may be identified in such guidance, and the allotment and allocation of funds, including reallotment and reallocation of such funds, that promote the expeditious and effective implementation of the activities authorized under this section.
Requirements— Except as otherwise provided in the guidance described in paragraph (1) and in this section and other provisions of this Act, the funds provided for activities under this section shall be administered in accordance with subtitles B and E of title I of the Workforce Investment Act of 1998 relating to youth activities.
State allotments—
Reservations for outlying areas and tribes— Of the funds described subsection (a), the Secretary shall reserve—
not more than one-quarter of one percent to provide assistance to outlying areas to provide summer and year-round employment opportunities to low-income youth; and
1.5 percent to provide assistance to grantees of the Native American programs under section 166 of the Workforce Investment Act of 1998 to provide summer and year-round employment opportunities to low-income youth.
States— After determining the amounts to be reserved under paragraph (1), the Secretary of Labor shall allot the remainder of the amounts described in subsection (a) among the States in accordance with the factors described in section 364(b)(2) of this Act.
Reallotment— If the Governor of a State does not submit a State plan modification or other request for funds specified in guidance under subsection (b) by the time specified in subsection (d)(2)(B), or a State does not receive approval of such State plan modification or request, the amount the State would have been eligible to receive pursuant to the formula under paragraph (2) shall be added to the amounts available for the competitive grants under section 363(a)(3).
State plan modification—
In general— For a State to be eligible to receive an allotment of the funds under subsection (c), the Governor of the State shall submit to the Secretary of Labor a modification to a State plan approved under section 112 of the Workforce Investment Act of 1998, or other request for funds described in guidance in subsection (b), in such form and containing such information as the Secretary may require. At a minimum, such plan modification or request shall include—
a description of the strategies and activities to be carried out to provide summer employment opportunities and year-round employment opportunities, including the linkages to educational activities, consistent with subsection (f);
a description of the requirements the States will apply relating to the eligibility of low-income youth, consistent with section 368(4), for summer employment opportunities and year-round employment opportunities, which may include criteria to target assistance to particular categories of such low-income youth, such as youth with disabilities, consistent with subsection (f);
a description of the performance outcomes to be achieved by the State through the activities carried out under this section and the processes the State will use to track performance, consistent with guidance provided by the Secretary of Labor regarding such outcomes and processes and with section 367(b);
a description of the timelines for implementation of the activities described in subparagraph (A), and the number of low-income youth expected to be placed in summer employment opportunities, and year-round employment opportunities, respectively, by quarter;
assurances that the State will report such information as the Secretary may require relating to fiscal, performance and other matters that the Secretary determines is necessary to effectively monitor the activities carried out under this section; and
assurances that the State will ensure compliance with the labor standards protections described in section 367(a).
Submission and approval of state plan modification or request—
Submission— The Governor shall submit a modification of the State plan or other request for funds described in guidance in subsection (b) to the Secretary of Labor not later than 30 days after the issuance of such guidance. The State plan modification or request for funds required under this subsection may be submitted in conjunction with the State plan required under section 364.
Approval— The Secretary of Labor shall approve the plan or request submitted under subparagraph (A) within 30 days after submission, unless the Secretary determines that the plan or request is inconsistent with the requirements of this section. If the Secretary has not made a determination within 30 days, the plan or request shall be considered approved. If the plan or request is disapproved, the Secretary may provide a reasonable period of time in which a disapproved plan or request may be amended and resubmitted for approval. If the plan or request is approved, the Secretary shall allot funds to States within 30 days after such approval.
Modifications to state plan or request— The Governor may submit further modifications to a State plan or request for funds identified under subsection (b) to carry out this section in accordance with the requirements of this section.
Within-State allocation and administration—
In general— Of the funds allotted to the State under subsection (c), the Governor—
may reserve up to 5 percent of the allotment for administration and technical assistance; and
shall allocate the remainder of the allotment among local workforce investment areas within the State in accordance with the factors identified in section 364(b)(2), except that for purposes of such allocation references to a State in such paragraph shall be deemed to be references to a local workforce investment area and references to all States shall be deemed to be references to all local areas in the State involved. Not more than 10 percent of the funds allocated to a local workforce investment area may be used for the costs of administration of this section.
Local plan—
Submission— In order to receive an allocation under paragraph (1)(B), the local workforce investment board, in partnership with the chief elected official for the local workforce investment area involved, shall submit to the Governor a modification to a local plan approved under section 118 of the Workforce Investment Act of 1998, or other form of request for funds as may be identified in the guidance issued under subsection (b), not later than 30 days after the submission by the State of the modification to the State plan or other request for funds identified in subsection (b), describing the strategies and activities to be carried out under this section.
Approval— The Governor shall approve the local plan submitted under subparagraph (A) within 30 days after submission, unless the Governor determines that the plan is inconsistent with requirements of this section. If the Governor has not made a determination within 30 days, the plan shall be considered approved. If the plan is disapproved, the Governor may provide a reasonable period of time in which a disapproved plan may be amended and resubmitted for approval. The Governor shall allocate funds to local workforce investment areas with approved plans within 30 days after approval.
Reallocation— If a local workforce investment board does not submit a local plan modification (or other request for funds identified in guidance under subsection (b)) by the time specified in paragraph (2), or does not receive approval of a local plan, the amount the local workforce investment area would have been eligible to receive pursuant to the formula under paragraph (1)(B) shall be allocated to local workforce investment areas that receive approval of the local plan modification or request for funds under paragraph (2). Such reallocations shall be made in accordance with the relative share of the allocations to such local workforce investment areas applying the formula factors described under paragraph (1)(B).
Use of funds—
In general— The funds provided under this section shall be used—
to provide summer employment opportunities for low-income youth, ages 16 through 24, with direct linkages to academic and occupational learning, and may include the provision of supportive services, such as transportation or child care, necessary to enable such youth to participate; and
to provide year round employment opportunities, which may be combined with other activities authorized under section 129 of the Workforce Investment Act of 1998,to low-income youth, ages 16 through 24, with a priority to out-of school youth who are—
high school dropouts; or
recipients of a secondary school diploma or its equivalent but who are basic skills deficient unemployed or underemployed.
Program priorities— In administering the funds under this section, the local board and local chief elected officials shall give a priority to—
identifying employment opportunities that are—
in emerging or in-demand occupations in the local workforce investment area; or
in the public or nonprofit sector that meet community needs; and
linking year-round program participants to training and educational activities that will provide such participants an industry-recognized certificate or credential.
Performance accountability— For activities funded under this section, in lieu of the requirements described in section 136 of the Workforce Investment Act of 1998, State and local workforce investment areas shall provide such reports as the Secretary of Labor may require regarding the performance outcomes described in section 367(a)(5).
Sec. 366 Work-based employment strategies of demonstrated effectiveness
In general— From the funds available under section 363(a)(3), the Secretary of Labor shall award grants on a competitive basis to eligible entities to carry out work-based strategies of demonstrated effectiveness.
Use of funds— The grants awarded under this section shall be used to support strategies and activities of demonstrated effectiveness that are designed to provide unemployed, low-income adults or low-income youth with the skills that will lead to employment as part of or upon completion of participation in such activities. Such strategies and activities may include—
on-the-job training, registered apprenticeship programs, or other programs that combine work with skills development;
sector-based training programs that have been designed to meet the specific requirements of an employer or group of employers in that sector and where employers are committed to hiring individuals upon successful completion of the training;
training that supports an industry sector or an employer-based or labor-management committee industry partnership which includes a significant work-experience component;
acquisition of industry-recognized credentials in a field identified by the State or local workforce investment area as a growth sector or demand industry in which there are likely to be significant job opportunities in the short term;
connections to immediate work opportunities, including subsidized employment opportunities, or summer employment opportunities for youth, that includes concurrent skills training and other supports;
career academies that provide students with the academic preparation and training, including paid internships and concurrent enrollment in community colleges or other postsecondary institutions, needed to pursue a career pathway that leads to postsecondary credentials and high-demand jobs; and
adult basic education and integrated basic education and training models for low-skilled adults, hosted at community colleges or at other sites, to prepare individuals for jobs that are in demand in a local area.
Eligible entity— An eligible entity shall include a local chief elected official, in collaboration with the local workforce investment board for the local workforce investment area involved (which may include a partnership with of such officials and boards in the region and in the State), or an entity eligible to apply for an Indian and Native American grant under section 166 of the Workforce Investment Act of 1998, and may include, in partnership with such officials, boards, and entities, the following—
employers or employer associations;
adult education providers and postsecondary educational institutions, including community colleges;
community-based organizations;
joint labor-management committees;
work-related intermediaries; or
other appropriate organizations.
Application— An eligible entity seeking to receive a grant under this section shall submit to the Secretary of Labor an application at such time, in such manner, and containing such information as the Secretary may require. At a minimum, the application shall—
describe the strategies and activities of demonstrated effectiveness that the eligible entities will carry out to provide unemployed, low-income adults and low-income youth with the skills that will lead to employment upon completion of participation in such activities;
describe the requirements that will apply relating to the eligibility of unemployed, low-income adults or low-income youth, consistent with paragraphs (4) and (6) of section 368, for activities carried out under this section, which may include criteria to target assistance to particular categories of such adults and youth, such as individuals with disabilities or individuals who have exhausted all rights to unemployment compensation;
describe how the strategies and activities address the needs of the target populations identified in paragraph (2) and the needs of employers in the local area;
describe the expected outcomes to be achieved by implementing the strategies and activities;
provide evidence that the funds provided may be expended expeditiously and efficiently to implement the strategies and activities;
describe how the strategies and activities will be coordinated with other Federal, State and local programs providing employment, education and supportive activities;
provide evidence of employer commitment to participate in the activities funded under this section, including identification of anticipated occupational and skill needs;
provide assurances that the grant recipient will report such information as the Secretary may require relating to fiscal, performance and other matters that the Secretary determines is necessary to effectively monitor the activities carried out under this section; and
provide assurances that the use of the funds provided under this section will comply with the labor standards and protections described section 367(a).
Priority in awards— In awarding grants under this section, the Secretary of Labor shall give a priority to applications submitted by eligible entities from areas of high poverty and high unemployment, as defined by the Secretary, such as Public Use Microdata Areas (PUMAs) as designated by the Census Bureau.
Coordination of Federal administration— The Secretary of Labor shall administer this section in coordination with the Secretary of Education, Secretary of Health and Human Services, and other appropriate agency heads, to ensure the effective implementation of this section.
Sec. 367 General requirements
Labor standards and protections— Activities provided with funds under this Act shall be subject to the requirements and restrictions, including the labor standards, described in section 181 of the Workforce Investment Act of 1998 and the nondiscrimination provisions of section 188 of such Act, in addition to other applicable Federal laws.
Reporting— The Secretary may require the reporting of information relating to fiscal, performance and other matters that the Secretary determines is necessary to effectively monitor the activities carried out with funds provided under this Act. At a minimum, grantees and subgrantees shall provide information relating to—
the number individuals participating in activities with funds provided under this Act and the number of such individuals who have completed such participation;
the expenditures of funds provided under the Act;
the number of jobs created pursuant to the activities carried out under this Act;
the demographic characteristics of individuals participating in activities under this Act; and
the performance outcomes of individuals participating in activities under this Act, including—
for adults participating in activities funded under section 364 of this Act—
entry in unsubsidized employment,
retention in unsubsidized employment, and
earnings in unsubsidized employment;
for low-income youth participating in summer employment activities under sections 365 and 366—
work readiness skill attainment using an employer validated checklist; and
placement in or return to secondary or postsecondary education or training, or entry into unsubsidized employment;
for low-income youth participating in year-round employment activities under section 365 or in activities under section 366—
placement in or return to post-secondary education;
attainment of high school diploma or its equivalent;
attainment of an industry-recognized credential; and
entry into unsubsidized employment, retention, and earnings as described in subparagraph (A); and
for unemployed, low-income adults participating in activities under section 366—
entry into unsubsidized employment, retention, and earnings as described in subparagraph (A); and
the attainment of industry-recognized credentials.
Activities required To be additional— Funds provided under this Act shall only be used for activities that are in addition to activities that would otherwise be available in the State or local area in the absence of such funds.
Additional requirements— The Secretary of Labor may establish such additional requirements as the Secretary determines may be necessary to ensure fiscal integrity, effective monitoring, and the appropriate and prompt implementation of the activities under this Act.
Report of information and evaluations to congress and the public— The Secretary of Labor shall provide to the appropriate Committees of the Congress and make available to the public the information reported pursuant to subsection (b) and the evaluations of activities carried out pursuant to the funds reserved under section 363(b).
Sec. 368 Definitions
In this Act:
Local chief elected official— The term “local chief elected official” means the chief elected executive officer of a unit of local government in a local workforce investment area or in the case where more than one unit of general government, the individuals designated under an agreement described in section 117(c)(1)(B) of the Workforce Investment Act of 1998.
Local workforce investment area— The term “local workforce investment area” means such area designated under section 116 of the Workforce Investment Act of 1998.
Local workforce investment board— The term “local workforce investment board” means such board established under section 117 of the Workforce Investment Act of 1998.
Low-income youth— The term “low-income youth” means an individual who—
is aged 16 through 24;
meets the definition of a low-income individual provided in section 101(25) of the Workforce Investment Act of 1998, except that States, local workforce investment areas under section 365 and eligible entities under section 366(c), subject to approval in the applicable State plans, local plans, and applications for funds, may increase the income level specified in subparagraph (B)(i) of such section to an amount not in excess of 200 percent of the poverty line for purposes of determining eligibility for participation in activities under sections 365 and 366 of this Act; and
is in one or more of the categories specified in section 101(13)(C) of the Workforce Investment Act of 1998.
Outlying area— The term outlying area means the United States Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, and the Republic of Palau.
Unemployed, low-income adult— The term unemployed, low-income adult means an individual who—
is age 18 or older;
is without employment and is seeking assistance under this Act to obtain employment; and
meets the definition of a “low-income individual” under section 101(25) of the Workforce Investment Act of 1998, except that for that States, local entities described in section 364(d)(1) and eligible entities under section 366(c), subject to approval in the applicable State plans, local plans, and applications for funds, may increase the income level specified in subparagraph (B)(i) of such section to an amount not in excess of 200 percent of the poverty line for purposes of determining eligibility for participation in activities under sections 364 and 366 of this Act.
State— The term State means each of the several States of the United States, the District of Columbia, and Puerto Rico.
D Prohibition of discrimination in employment on the basis of an individual’s status as unemployed
Sec. 371 Short title
This subtitle may be cited as the “Fair Employment Opportunity Act of 2013”.
Sec. 372 Findings and purpose
Findings— Congress finds that denial of employment opportunities to individuals because of their status as unemployed is discriminatory and burdens commerce by—
reducing personal consumption and undermining economic stability and growth;
squandering human capital essential to the Nation’s economic vibrancy and growth;
increasing demands for Federal and State unemployment insurance benefits, reducing trust fund assets, and leading to higher payroll taxes for employers, cuts in benefits for jobless workers, or both;
imposing additional burdens on publicly funded health and welfare programs; and
depressing income, property, and other tax revenues that the Federal Government, States, and localities rely on to support operations and institutions essential to commerce.
Purposes— The purposes of this subtitle are—
to prohibit employers and employment agencies from disqualifying an individual from employment opportunities because of that individual’s status as unemployed;
to prohibit employers and employment agencies from publishing or posting any advertisement or announcement for an employment opportunity that indicates that an individual’s status as unemployed disqualifies that individual for the opportunity; and
to eliminate the burdens imposed on commerce due to the exclusion of such individuals from employment.
Sec. 373 Definitions
As used in this subtitle—
the term affected individual means any person who was subject to an unlawful employment practice solely because of that individual’s status as unemployed;
the term Commission means the Equal Employment Opportunity Commission;
the term employee means—
an employee as defined in section 701(f) of the Civil Rights Act of 1964 (42 U.S.C. 2000e(f));
a State employee to which section 302(a)(1) of the Government Employee Rights Act of 1991 (42 U.S.C. 2000e–16b(a)(1)) applies;
a covered employee, as defined in section 101 of the Congressional Accountability Act of 1995 (2 U.S.C. 1301) or section 411(c) of title 3, United States Code; or
an employee or applicant to which section 717(a) of the Civil Rights Act of 1964 (42 U.S.C. 2000e–16(a)) applies;
the term employer means—
a person engaged in an industry affecting commerce (as defined in section 701(h) of the Civil Rights Act of 1964 (42 U.S.C. 2000e(h)) who has 15 or more employees for each working day in each of 20 or more calendar weeks in the current or preceding calendar year, and any agent of such a person, but does not include a bona fide private membership club that is exempt from taxation under section 501(c) of the Internal Revenue Code of 1986;
an employing authority to which section 302(a)(1) of the Government Employee Rights Act of 1991 applies;
an employing office, as defined in section 101 of the Congressional Accountability Act of 1995 or section 411(c) of title 3, United States Code; or
an entity to which section 717(a) of the Civil Rights Act of 1964 (42 U.S.C. 2000e–16(a)) applies;
the term employment agency means any person regularly undertaking with or without compensation to procure employees for an employer or to procure for individuals opportunities to work as employees for an employer and includes an agent of such a person, and any person who maintains an Internet website or print medium that publishes advertisements or announcements of openings in jobs for employees;
the term person has the meaning given the term in section 701(a) of the Civil Rights Act of 1964 (42 U.S.C. 2000e(a)); and
the term status as unemployed, used with respect to an individual, means that the individual, at the time of application for employment or at the time of action alleged to violate this subtitle, does not have a job, is available for work and is searching for work.
Sec. 374 Prohibited acts
Employers— It shall be an unlawful employment practice for an employer to—
publish in print, on the Internet, or in any other medium, an advertisement or announcement for an employee for any job that includes—
any provision stating or indicating that an individual’s status as unemployed disqualifies the individual for any employment opportunity; or
any provision stating or indicating that an employer will not consider or hire an individual for any employment opportunity based on that individual’s status as unemployed;
fail or refuse to consider for employment, or fail or refuse to hire, an individual as an employee because of the individual’s status as unemployed; or
direct or request that an employment agency take an individual’s status as unemployed into account to disqualify an applicant for consideration, screening, or referral for employment as an employee.
Employment agencies— It shall be an unlawful employment practice for an employment agency to—
publish, in print or on the Internet or in any other medium, an advertisement or announcement for any vacancy in a job, as an employee, that includes—
any provision stating or indicating that an individual’s status as unemployed disqualifies the individual for any employment opportunity; or
any provision stating or indicating that the employment agency or an employer will not consider or hire an individual for any employment opportunity based on that individual’s status as unemployed;
screen, fail or refuse to consider, or fail or refuse to refer an individual for employment as an employee because of the individual’s status as unemployed; or
limit, segregate, or classify any individual in any manner that would limit or tend to limit the individual’s access to information about jobs, or consideration, screening, or referral for jobs, as employees, solely because of an individual’s status as unemployed.
Interference with rights, proceedings or inquiries— It shall be unlawful for any employer or employment agency to—
interfere with, restrain, or deny the exercise of or the attempt to exercise, any right provided under this subtitle; or
fail or refuse to hire, to discharge, or in any other manner to discriminate against any individual, as an employee, because such individual—
opposed any practice made unlawful by this subtitle;
has asserted any right, filed any charge, or has instituted or caused to be instituted any proceeding, under or related to this subtitle;
has given, or is about to give, any information in connection with any inquiry or proceeding relating to any right provided under this subtitle; or
has testified, or is about to testify, in any inquiry or proceeding relating to any right provided under this subtitle.
Construction— Nothing in this subtitle is intended to preclude an employer or employment agency from considering an individual’s employment history, or from examining the reasons underlying an individual’s status as unemployed, in assessing an individual’s ability to perform a job or in otherwise making employment decisions about that individual. Such consideration or examination may include an assessment of whether an individual’s employment in a similar or related job for a period of time reasonably proximate to the consideration of such individual for employment is job-related or consistent with business necessity.
Sec. 375 Enforcement
Enforcement powers— With respect to the administration and enforcement of this subtitle—
the Commission shall have the same powers as the Commission has to administer and enforce—
title VII of the Civil Rights Act of 1964 (42 U.S.C. 2000e et seq.); or
sections 302 and 304 of the Government Employee Rights Act of 1991 (42 U.S.C. 2000e–16b and 2000e–16c), in the case of an affected individual who would be covered by such title, or by section 302(a)(1) of the Government Employee Rights Act of 1991 (42 U.S.C. 2000e–16b(a)(1)), respectively;
the Librarian of Congress shall have the same powers as the Librarian of Congress has to administer and enforce title VII of the Civil Rights Act of 1964 (42 U.S.C. 2000e et seq.) in the case of an affected individual who would be covered by such title;
the Board (as defined in section 101 of the Congressional Accountability Act of 1995 (2 U.S.C. 1301)) shall have the same powers as the Board has to administer and enforce the Congressional Accountability Act of 1995 (2 U.S.C. 1301 et seq.) in the case of an affected individual who would be covered by section 201(a)(1) of such Act (2 U.S.C. 1311(a)(1));
the Attorney General shall have the same powers as the Attorney General has to administer and enforce—
title VII of the Civil Rights Act of 1964 (42 U.S.C. 2000e et seq.); or
sections 302 and 304 of the Government Employee Rights Act of 1991 (42 U.S.C. 2000e–16b and 2000e–16c); in the case of an affected individual who would be covered by such title, or of section 302(a)(1) of the Government Employee Rights Act of 1991 (42 U.S.C. 2000e–16b(a)(1)), respectively;
the President, the Commission, and the Merit Systems Protection Board shall have the same powers as the President, the Commission, and the Board, respectively, have to administer and enforce chapter 5 of title 3, United States Code, in the case of an affected individual who would be covered by section 411 of such title; and
a court of the United States shall have the same jurisdiction and powers as the court has to enforce—
title VII of the Civil Rights Act of 1964 (42 U.S.C. 2000e et seq.) in the case of a claim alleged by such individual for a violation of such title;
sections 302 and 304 of the Government Employee Rights Act of 1991 (42 U.S.C. 2000e–16b and 2000e–16c) in the case of a claim alleged by such individual for a violation of section 302(a)(1) of such Act (42 U.S.C. 2000e–16b(a)(1));
the Congressional Accountability Act of 1995 (2 U.S.C. 1301 et seq.) in the case of a claim alleged by such individual for a violation of section 201(a)(1) of such Act (2 U.S.C. 1311(a)(1)); and
chapter 5 of title 3, United States Code, in the case of a claim alleged by such individual for a violation of section 411 of such title.
Procedures— The procedures applicable to a claim alleged by an individual for a violation of this subtitle are—
the procedures applicable for a violation of title VII of the Civil Rights Act of 1964 (42 U.S.C. 2000e et seq.) in the case of a claim alleged by such individual for a violation of such title;
the procedures applicable for a violation of section 302(a)(1) of the Government Employee Rights Act of 1991 (42 U.S.C. 2000e–16b(a)(1)) in the case of a claim alleged by such individual for a violation of such section;
the procedures applicable for a violation of section 201(a)(1) of the Congressional Accountability Act of 1995 (2 U.S.C. 1311(a)(1)) in the case of a claim alleged by such individual for a violation of such section; and
the procedures applicable for a violation of section 411 of title 3, United States Code, in the case of a claim alleged by such individual for a violation of such section.
Remedies—
In any claim alleging a violation of section 374(a)(1) or 374(b)(1) of this subtitle, an individual, or any person acting on behalf of the individual as set forth in section 375(a) of this subtitle, may be awarded, as appropriate:
An order enjoining the respondent from engaging in the unlawful employment practice.
Reimbursement of costs expended as a result of the unlawful employment practice.
An amount in liquidated damages not to exceed $1,000 for each day of the violation.
Reasonable attorney’s fees (including expert fees) and costs attributable to the pursuit of a claim under this subtitle, except that no person identified in section 733(a) of this subtitle shall be eligible to receive attorney’s fees.
In any claim alleging a violation of any other subsection of this subtitle, an individual, or any person acting on behalf of the individual as set forth in section 375(a) of this subtitle, may be awarded, as appropriate, the remedies available for a violation of title VII of the Civil Rights Act of 1964 (42 U.S.C. 2000e et seq.), section 302(a)(1) of the Government Employee Rights Act of 1991 (42 U.S.C. 2000e–16b(a)(1)), section 201(a)(1) of the Congressional Accountability Act of 1995 (2 U.S.C. 1311(a)(1)), and section 411 of title 3, United States Code, except that in a case in which wages, salary, employment benefits, or other compensation have not been denied or lost to the individual, damages may be awarded in an amount not to exceed $5,000.
Sec. 376 Federal and State immunity
Abrogation of State immunity— A State shall not be immune under the 11th Amendment to the Constitution from a suit brought in a Federal court of competent jurisdiction for a violation of this subtitle.
Waiver of State immunity—
In general—
Waiver— A State’s receipt or use of Federal financial assistance for any program or activity of a State shall constitute a waiver of sovereign immunity, under the 11th Amendment to the Constitution or otherwise, to a suit brought by an employee or applicant for employment of that program or activity under this subtitle for a remedy authorized under section 375(c) of this subtitle.
Definition— In this paragraph, the term program or activity has the meaning given the term in section 606 of the Civil Rights Act of 1964 (42 U.S.C. 2000d–4a).
Effective date— With respect to a particular program or activity, paragraph (1) applies to conduct occurring on or after the day, after the date of enactment of this Act, on which a State first receives or uses Federal financial assistance for that program or activity.
Remedies against State officials— An official of a State may be sued in the official capacity of the official by any employee or applicant for employment who has complied with the applicable procedures of this subtitle, for relief that is authorized under this subtitle.
Remedies against the united states and the states— Notwithstanding any other provision of this subtitle, in an action or administrative proceeding against the United States or a State for a violation of this subtitle, remedies (including remedies at law and in equity) are available for the violation to the same extent as such remedies would be available against a non-governmental entity.
Sec. 377 Relationship to other laws
This subtitle shall not invalidate or limit the rights, remedies, or procedures available to an individual claiming discrimination prohibited under any other Federal law or regulation or any law or regulation of a State or political subdivision of a State.
Sec. 378 Severability
If any provision of this subtitle, or the application of the provision to any person or circumstance, is held to be invalid, the remainder of this subtitle and the application of the provision to any other person or circumstances shall not be affected by the invalidity.
Sec. 379 Effective date
This subtitle shall take effect on the date of enactment of this Act and shall not apply to conduct occurring before the effective date.