The Workforce Innovation and Opportunity Act and the One-Stop Delivery System

[Excerpt] The Workforce Innovation and Opportunity Act (WIOA; P.L. 113-128), which succeeded the Workforce Investment Act of 1998 (P.L. 105-220) as the primary federal workforce development legislation, was enacted in July 2014 to bring about increased coordination among federal workforce development and related programs. Most of WIOA’s provisions went into effect July 1, 2015. WIOA authorizes appropriations for each of FY2015 through FY2020 to carry out the programs and activities authorized in the legislation. Workforce development programs provide a combination of education and training services to prepare individuals for work and to help them improve their prospects in the labor market. They may include activities such as job search assistance, career counseling, occupational skill training, classroom training, or on-the-job training. The federal government provides workforce development activities through WIOA’s programs and other programs designed to increase the employment and earnings of workers. WIOA includes five titles: Workforce Development Activities (Title I), Adult Education and Literacy (Title II), Amendments to the Wagner-Peyser Act (Title III), Amendments to the Rehabilitation Act of 1973 (Title IV), and General Provisions (Title V). Title I, whose programs are primarily administered through the Employment and Training Administration (ETA) of the U.S. Department of Labor (DOL), includes three state formula grant programs, multiple national programs, and Job Corps. Title II, whose programs are administered by the U.S. Department of Education (ED), includes a state formula grant program and National Leadership activities. Title III amends the Wagner-Peyser Act of 1933, which authorizes the Employment Service (ES). Title IV amends the Rehabilitation Act of 1973, which authorizes vocational rehabilitation services to individuals with disabilities. Title V includes provisions for the administration of WIOA. The WIOA system provides central points of service via its system of around 3,000 One-Stop centers nationwide, through which state and local WIOA employment and training activities are provided and certain partner programs must be coordinated. This system is supposed to provide employment and training services that are responsive to the demands of local area employers. Administration of the One-Stop system occurs through Workforce Development Boards (WDBs), a majority of whose members must be representatives of business and which are authorized to determine the mix of service provision, eligible providers, and types of training programs, among other decisions. WIOA provides universal access (i.e., an adult age 18 or older does not need to meet any qualifying characteristics) to its career services, including a priority of service for low- income adults. WIOA also requires Unified State Plans (USPs) that outline the workforce strategies for the six core WIOA programs—adult, dislocated worker, and youth programs (Title I of WIOA), the Adult Education and Family Literacy Act (AEFLA; Title II of WIOA), the Employment Service program (amended by Title III of WIOA), and the Vocational Rehabilitation State Grant Program (amended by Title IV of WIOA). Finally, WIOA adopts the same six “primary indicators of performance” across most of the programs authorized in the law. This report provides details of WIOA Title I state formula program structure, services, allotment formulas, and performance accountability. In addition, it provides a program overview for national grant programs. It also offers a brief overview of the Employment Service (ES), which is authorized by separate legislation but is an integral part of the One-Stop system created by WIOA

Tip Credit and Tip Pooling Provisions of the Fair Labor Standards Act

[Excerpt] The Fair Labor Standards Act (FLSA), enacted in 1938 (P.L. 75-718), is the federal legislation that establishes the general minimum wage that must be paid to all covered workers. At present, the vast majority of workers are covered by the minimum wage provisions of the FLSA. These provisions have been amended numerous times since 1938, typically for the purpose of expanding coverage or raising the wage rate. The most recent change was enacted in 2007 (P.L. 110-28) to increase the minimum wage to $7.25 per hour by July 2009

State Minimum Wages: An Overview

[Excerpt] This report begins with a brief discussion of FLSA minimum wage coverage. It then provides a summary of state minimum wage laws, followed by an examination of rates and mechanisms of adjustments in states with minimum wage levels above the FLSA rate (Table 1 provides summary data). Next, the report discusses the interaction of federal and state minimum wages over time, and finally, the Appendix provides detailed information on the major components of minimum wage policies in all 50 states and DC). It is important to note that the state policies covered in this report include currently effective policies and policies enacted with an effective date on or before January 1, 2015. Several states enacted legislation in 2014 with an effective date by the beginning of 2015. As such, the description and analysis in the report reflects the effects of legislative and ballot outcomes in 2014

The Workforce Investment Act and the One-Stop Delivery System

[Excerpt] The Workforce Investment Act of 1998 (WIA; P.L. 105-220) is the primary federal program that supports workforce development. WIA includes five titles: • Title I—Workforce Investment Systems—provides job training and related services to unemployed or underemployed individuals; • Title II—Adult Education and Literacy—provides education services to assist adults in improving their literacy and completing secondary education; • Title III—Workforce Investment-Related Activities—amends the Wagner-Peyser Act of 1933 to integrate the U.S. Employment Service (ES) into the One-Stop system established by WIA; • Title IV—Rehabilitation Act Amendments of 1998—amends the Rehabilitation Act of 1973, which provides vocational rehabilitation services to individuals with disabilities, to integrate vocational rehabilitation into the One-Stop system; and • Title V—General Provisions—specifies components of State Unified Plans and provisions for state incentive grants. Workforce development programs provide a combination of education and training services to prepare individuals for work and to help them improve their prospects in the labor market. In the broadest sense, workforce development includes secondary and postsecondary education, on-the- job and employer-provided training, and the publicly funded system of job training and employment services. Most workforce development occurs in the workplace during the course of doing business. The federal government provides workforce development activities through WIA’s programs and other programs designed to increase the employment and earnings of workers. Workforce development may include activities such as job search assistance, career counseling, occupational skill training, classroom training, or on-the-job training

Comparing Compensation for Federal and Private-Sector Workers: An Overview

[Excerpt] In recent years, there has been significant congressional interest in compensation of the federal workforce. The increased interest has been driven at least in part by the federal fiscal situation and in part by the state of the economy since the recession began in 2007. Issues related to the compensation of federal employees often center on the pay differential between federal workers and their private sector counterparts. For years, the annual President’s Pay Agent (PPA) study, which is covered in greater detail later in this report, has shown a large wage penalty for federal workers compared to private sector workers in similar occupations. A spate of recent studies, which use a different analytical approach and data sources, has partially contradicted the findings of the PPA study by concluding that at least some federal workers enjoy a wage premium over comparable private sector workers. These studies and accompanying reporting on the comparison of compensation of federal workers to private sector workers provide an indication of the disparate findings, which makes it difficult to determine how compensation of federal employees actually compares to that of workers in the private sector. This report attempts to clarify why the recent studies have arrived at different conclusions and examines limitations of the approaches employed in the different studies

The Federal Minimum Wage: In Brief

The Fair Labor Standards Act (FLSA), enacted in 1938, is the federal legislation that establishes the minimum hourly wage that must be paid to all covered workers. The minimum wage provisions of the FLSA have been amended numerous times since 1938, typically for the purpose of expanding coverage or raising the wage rate. Since its establishment, the minimum wage rate has been raised 22 separate times. The most recent change was enacted in 2007 (P.L. 110-28), which increased the minimum wage to its current level of $7.25 per hour. In addition to setting the federal minimum wage rate, the FLSA provides for several exemptions and subminimum wage categories for certain classes of workers and types of work. Even with these exemptions, the FLSA minimum wage provisions still cover the vast majority of the workforce. Despite this broad coverage, however, the minimum wage directly affects a relatively small portion of the workforce. Currently, there are approximately 3.6 million workers, or 4.7$7.25 per hour. Approximately three-quarters of minimum wage workers are age 20 or older and nearly two-thirds work part time. Proponents of increasing the federal minimum wage argue that it may increase earnings for lower income workers, lead to reduced turnover, and increase aggregate demand by providing greater purchasing power for workers receiving a pay increase. Opponents of increasing the federal minimum wage argue that it may result in reduced employment or reduced hours, lead to a general price increase, and reduce profits of firms paying a higher minimum wage

The Federal Minimum Wage: In Brief

[Excerpt] The Fair Labor Standards Act (FLSA), enacted in 1938, is the federal legislation that establishes the minimum hourly wage that must be paid to all covered workers. The minimum wage provisions of the FLSA have been amended numerous times since 1938, typically for the purpose of expanding coverage or raising the wage rate. Since its establishment, the minimum wage rate has been raised 22 separate times. The most recent change was enacted in 2007 (P.L. 110-28), which increased the minimum wage to its current level of $7.25 per hour. In addition to setting the federal minimum wage rate, the FLSA provides for several exemptions and subminimum wage categories for certain classes of workers and types of work. Even with these exemptions, the FLSA minimum wage provisions still cover the vast majority of the workforce. Despite this broad coverage, however, the minimum wage directly affects a relatively small portion of the workforce. Currently, there are approximately 2.2 million workers, or 2.7$7.25 per hour. Most minimum wage workers are female, are age 20 or older, work part time, and are in food service occupations. Proponents of increasing the federal minimum wage argue that it may increase earnings for lower income workers, lead to reduced turnover, and increase aggregate demand by providing greater purchasing power for workers receiving a pay increase. Opponents of increasing the federal minimum wage argue that it may result in reduced employment or reduced hours, lead to a general price increase, and reduce profits of firms paying a higher minimum wage

Major Functions of the U.S. Department of Labor

[Excerpt] The Department of Labor (DOL) was created in 1913 by “An Act to create a Department of Labor” (P.L. 62-426). Its purpose was “to foster, promote, and develop the welfare of the wage earners of the United States, to improve their working conditions, and to advance their opportunities for profitable employment.” P.L. 62-426 initially authorized a new mediation service and four pre-existing bureaus. Numerous laws since 1913 have added program and enforcement responsibilities to DOL such that it is now comprised of multiple entities that provide services related to worker protection, income support, workforce development, and labor statistics. DOL administers and enforces more than 180 federal laws

Workforce Investment Act (WIA) Reauthorization Proposals in the 113th Congress: Comparison of Major Features of Current Law and S.1356

The Workforce Investment Act of 1998 (WIA; P.L. 105-220) is the primary federal program that supports workforce development activities, including job search assistance, career development, and job training. WIA established the One-Stop delivery system as a way to co-locate and coordinate the activities of multiple employment programs for adults, youth, and various targeted subpopulations. The delivery of these services occurs primarily through more than 3,000 One- Stop career centers nationwide. WIA includes four main titles that cover employment and training services, adult education and literacy services, the employment service, and vocational rehabilitation services for individuals with disabilities. The authorizations for appropriations for most programs under WIA expired at the end of FY2003. Since that time, WIA programs have been funded through the annual appropriations process. The Senate Committee on Health, Education, Labor, and Pensions (HELP) held a markup of S. 1356 (the Workforce Investment Act of 2013) on July 31, 2013, and ordered the bill reported by a vote of 18 to 3. S. 1356 would reauthorize WIA through 2018. S. 1356 would maintain the One-Stop delivery system established by WIA but would make changes to the programs, services, and governing structure of WIA, through changes to Workforce Investment Boards (WIBs), state plan requirements, national programs, and alignment and coordination provisions across all titles. Some of the major changes include the adoption of primary indicators of performance across all WIA titles, the requirement of a Unified State Plan that includes all core programs, the authorization of innovation and replication grants, greater emphasis on economic and employment outcomes for adult education programs, and expanded services for youth and students with disabilities. This report provides a comparison of major themes in current WIA and in S. 1356

Real Wage Trends, 1979 to 2017

[Excerpt] The focus of this report is on wage rates and changes at selected wage percentiles, with some attention given to the potential influence of educational attainment and the occupational distribution of worker groups on wage patterns. Other factors are likely to contribute to wage trends over the 1979 to 2017 period as well, including changes in the supply and demand for workers, labor market institutions, workplace organization and practices, and macroeconomic trends. This report provides an overview of how these broad forces are thought to interact with wage determination, but it does not attempt to measure their contribution to wage patterns over the last four decades. For example, changes over time in the supply and demand for workers with different skill sets (e.g., as driven by technological change and new international trade patterns) is likely to affect wage growth. A declining real minimum wage and decreasing unionization rates may lead to slower wage growth for workers more reliant on these institutions to provide wage protection, whereas changes in pay setting practices in certain high pay occupations, the emergence of superstar earners (e.g., in sports and entertainment), and skill biased technological changes may have improved wage growth for some workers at the top of the wage distribution. Macroeconomic factors, business cycles, and other national economic trends affect the overall demand for workers, with consequences for aggregate wage growth, and may affect employers’ production decisions (e.g., production technology and where to produce) with implications for the distribution of wage income. These factors are briefly discussed at the end of the report