---
kind: "section"
citation: "20 C.F.R. § 683.540"
title: "20"
number: "683.540"
heading: "What is the State's role in assisting local areas in using Workforce Innovation and Opportunity Act Pay-for-Performance contract strategies?"
url: "https://uscodex.org/cfr/20/683.540"
---

# §683.540. What is the State's role in assisting local areas in using Workforce Innovation and Opportunity Act Pay-for-Performance contract strategies?

- (a) **Using funds from the Governor's Reserve the State may—**
  - (1) Provide technical assistance to local areas including assistance with structuring WIOA Pay-for-Performance contracting strategies, performance data collection, meeting performance data entry requirements, and identifying levels of performance.
  - (2) **Conduct evaluations of local WIOA Pay-for-Performance contracting strategies, if appropriate.**
  - (3) **Conduct other activities that comply with limitations on the use of the Governor's Reserve.**
- (b) Using non-Federal funds, Governors may establish incentives for Local WDBs to implement WIOA Pay-for-Performance contract strategies as described in this subpart.
- (c) In the case of a State in which local areas are implementing WIOA Pay-for-Performance contract strategies, the State must:
  - (1) Collect and report to the Department data on the performance of service providers entering into WIOA Pay-for-Performance contracts, measured against the levels of performance benchmarks specified in the contracts, pursuant to [sec. 116(d)(2)(K)](/cfr/20/116.md?p=d-2-K) of WIOA and [§ 677.160](/cfr/20/677.160.md) of this chapter and in accordance with any additional guidance issued by the Secretary.
  - (2) Collect and report to the Department State and/or local evaluations of the design and performance of the WIOA Pay-for-Performance contract strategies, and, where possible, the level of satisfaction with the strategies among employers and participants benefitting from the strategies, pursuant to [sec. 116(d)(2)(K)](/cfr/20/116.md?p=d-2-K) of WIOA and [§ 677.160](/cfr/20/677.160.md) of this chapter, and in accordance with any guidance issued by the Secretary.
  - (3) Monitor local areas' use of WIOA Pay-for-Performance contract strategies to ensure compliance with [§ 683.500](/cfr/20/683.500.md) and the contract specifications in [§ 683.510](/cfr/20/683.510.md), and State procurement policies.
  - (4) Monitor local areas' expenditures to ensure that no more than 10 percent of a local area's adult and dislocated worker allotments and no more than 10 percent of a local area's youth allotment is reserved and used on WIOA Pay-for-Performance contract strategies.
- (d) The Secretary will issue additional guidance on State roles in WIOA Pay-for-Performance contract strategies.

## Notes

### Authority

Authority: Secs. 102, 116, 121, 127, 128, 132, 133, 147, 167, 169, 171, 181, 185, 186, 189, 195, 503, Public Law 113-128, 128 Stat. 1425 (Jul. 22, 2014).

### Source

Source: 81 FR 56410, Aug. 19, 2016, unless otherwise noted.