Economic Dislocation and Worker Adjustment Assistance Act

Summary

Economic Dislocation and Worker Adjustment Assistance Act - Title I: Dislocated Workers' Adjustment Services - Establishes a Dislocated Worker Unit in the Department of Labor to: (1) distribute funds to States under this title; (2) provide funds to exemplary, demonstration, and model programs on plant closings and worker dislocation; (3) allocate discretionary funds; (4) monitor performance and expenditures, and annually certify compliance with standards; (5) conduct research and serve as a national clearinghouse for gathering and disseminating information on plant closings and worker dislocation; and (6) provide technical assistance and staff training services to States, communities, businesses, and unions. Sets forth administrative provisions. Requires State Governors, in order to receive an allocation of funds under this title, to submit to the Secretary of Labor a biennial State plan describing the programs and activities that will be assisted with such funds. Sets forth requirements for State plans. Requires the designation or creation of an identifiable State dislocated worker unit or office with the capability to respond rapidly, on site, to mass layoffs and plant closings. Requires the establishment of a tripartite advisory committee composed equally of representatives of labor, management, and public agencies to advise the Governor and the State unit on the administration of programs under this title. Sets forth provisions for review and approval of plans, and for complaints, investigations, and penalties. Allows funds allocated to States to be used to: (1) provide plant-specific adjustment assistance; (2) deliver, coordinate, and integrate normal labor market services; (3) identify and correct the basic educational deficiencies of dislocated workers; (4) provide vocational and on-the-job training; (5) provide income support; and (6) continue for FY 1988 and 1989 to conduct any program or activity or provide any service that was provided with funds made available under title III of the Job Training Partnership Act (JTPA), and to continue such program, activity, or service thereafter if it satisfies a standard set forth in clauses (1) through (5). Sets forth formulas for allocation of funds by the Secretary. Requires the Secretary to promulgate standards for the conduct and evaluation of programs under this title, including encouragement to establish worker adjustment committees. Directs the Secretary, in the event that any State fails to qualify for an allocation, to use the amount of the allocation to provide in that State, directly or through contract, the programs and services authorized by this title. Authorizes up to 25 percent of the funds allocated to a State for any fiscal year to remain available for obligation and expenditure during the succeeding fiscal year. Provides for reimbursement of certain State funds from an allocation for a succeeding fiscal year. Directs the Secretary to ensure that each State unit has access to information collected and maintained under specified provisions of the JTPA to identify job skills that would improve the employment opportunities of eligible displaced workers. Provides that specified Federal and fiscal administrative provisions of the JTPA shall apply to funds, programs, and activities under this title. Limits to 15 percent that portion of this amount available for this title in any fiscal year which may be used for administrative expenses. Directs the Governor to appoint the tripartite advisory committee after consultation with labor organizations, business and other organizations affected by worker dislocation, and with local governments. Sets forth committee functions. Authorizes appropriations for FY 1988 and succeeding fiscal years to carry out this title. Terminates funding for title III (Employment and Training Assistance for Dislocated Workers) of the JTPA. Directs the Secretary to: (1) provide for an annual evaluation of the program authorized by this title; and (2) prepare and submit to the Congress as part of the annual report of the Department of Labor a report on the activities of the Dislocated Worker Unit. Title II: Advance Notification and Consultation - Prohibits an employer from ordering a plant closing or mass layoff until the end of a specified period after the employer serves written notice of a proposal to issue such an order to: (1) the representative of the affected employees, or if there is no representative, to each affected employee; and (2) the State dislocated worker unit and the affected local government. Prohibits an employer from ordering a plant closing or mass layoff unless the employer has consulted with representatives of the affected employees and the local government about alternatives or modifications to such an order. Includes under the employer's duty to consult a duty to provide relevant information. Provides for protective orders to prevent disclosure of competitive information. Makes an employer who orders a plant closing or mass layoff in violation of this title liable to employees for back pay and benefits and subject to civil penalties. Creates a cause of action in the appropriate U.S. district court to enforce such liability. Authorizes the court in such cases to require the defendant to pay reasonable attorney fees, along with the costs of the action. Makes employees or representatives of affected employees who violate protective orders relating to competitive information liable to the employer for consequent financial loss. Creates a cause of action in any U.S. court of competent jurisdiction for an employer to recover such liability. Authorizes the court in such cases to require the defendant to pay reasonable attorney fees, along with the costs of the action. States that the rights and remedies provided to employees by this title are in addition to any other contractual, statutory, or other legal rights and remedies of the employees. Declares that it is the sense of the Congress that any employer not subject to the notice requirements should, to the extent possible, notify its employees about a proposal to close a plant or permanently reduce its workforce. Title III: Dislocated Workers' Demonstration, Exemplary, and Discretionary Programs - Directs the Secretary, from certain reserved amounts, to carry out demonstration, exemplary, and discretionary programs under this title. Reserves certain portions of such funds for specified programs under this title and for the Secretary's discretionary and exemplary programs. Part A: Dislocated Workers Training Loan Demonstration Program - Directs the Secretary to: (1) allocate funds for this part among communities having the largest number of dislocated workers; (2) give priority to communities with the highest concentrations of dislocated workers; and (3) conduct or enter into agreements to conduct demonstration programs in at least five, but not more than ten, such communities. Authorizes the Secretary to enter into agreements with State dislocated worker units or State or local public agencies or nonprofit private organizations to provide for the establishment and maintenance of dislocated workers loan funds. Limits to $5,000 the aggregate amount of all direct loans made from such funds to each dislocated worker. Authorizes use of such loans for: (1) vocational and on-the-job training; (2) basic education and literacy instruction; (3) relocation expenses; and (4) child care services. Sets forth repayment provisions. Provides for evaluation of the direct loan approach. Directs the Secretary to report to the Congress on such evaluations by October 1, 1989. Part B: Self-Employment Opportunity Demonstration Program - Directs the Secretary to enter into agreements for self-employment demonstration programs with at least five, but not more than ten, States. Provides that eligible individuals shall be entitled to receive adjustment assistance in the form of self-employment allowances. Provides that such individuals shall not be eligible to receive, in addition to such assistance, extended or additional unemployment compensation or regular unemployment compensation if payment is made by the State in lieu of regular unemployment compensation. Provides that funds to begin a self-employment demonstration program may be spent only for: (1) business development assistance and entrepreneurial training; (2) seed capital for new small business enterprises; (3) financial or technical assistance for small business incubators; (4) program administration; and (5) other support services. Makes an individual eligible for such program if such individual: (1) is eligible to receive regular unemployment compensation under State law; (2) submits an application for such adjustment assistance to the State agency; and (3) meets applicable State requirements. Limits the number of those who may be considered eligible individuals for purposes of this part to five percent of those eligible to receive regular compensation in a State. Limits the aggregate amount of adjustment assistance in the form of a self-employment allowance to any individual to the maximum amount of regular compensation plus any extended or additional compensation payable to such individual. Makes State and Federal requirements relating to availability for work, active search for work, or refusal to accept suitable work inapplicable to an individual receiving a self-employment allowance as long as the individual is self-employed. Provides for payment to each State of an amount equal to the percentage of the extended or additional compensation for which the State would have been entitled to reimbursement if such additional compensation had been paid. Permits a State to make payments on account of adjustment assistance provided under this part from the State unemployment fund. Sets forth provisions relating to: (1) grants for administrative expenses; and (2) fraud and overpayments. Directs the Secretary to: (1) provide for evaluation of the self-employment allowance system; and (2) report to the Congress on such evaluations by October 1, 1989. Part C: Public Works Employment Demonstration Program - Directs the Secretary to carry out public works employment demonstration programs, allocating funds under this part among cities and counties: (1) which are geographically diverse; (2) which represent urban and rural areas; and (3) for which the unemployment rate for the past six months exceeded the national average by at least two percent. Directs the Secretary to conduct or enter into agreements to conduct demonstration programs in no fewer than five nor more than ten cities and counties. Makes an individual eligible to participate in a demonstration project assisted under this part if the individual: (1) is an eligible dislocated worker who has been unemployed for at least 15 weeks; (2) has been unemployed or without steady employment for at least two years; or (3) is a recipient under the Aid to Families with Dependent Children program for at least two years. Sets forth testing and education requirements for participants. Directs private industry councils to select job projects to be assisted under this part. Provides for objections to projects. Limits each participant to 32 hours per week on such project. Sets wages and benefits for such projects. Requires private industry councils to establish for the area in which the demonstration is conducted job clubs to assist participants with the preparation of resumes, the development of interviewing techniques, and evaluation of individual job search activities. Requires selection of projects which develop marketable skills and assist participants in finding private sector jobs. Sets forth labor standards applicable to job projects. Directs the Secretary to: (1) provide for evaluation of the employment demonstration program; and (2) report to the Congress on such evaluations by October 1, 1989. Part D: Secretary's Discretionary Fund - Authorizes the Secretary to support exemplary programs and projects designed to increase the employability of eligible dislocated workers. Directs the Secretary to disseminate information on the effectiveness of programs assisted under this part.

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3 official files

• Indefinitely postponed in Senate

  summary · EN · 20 September 1988

  Open at official source

• Reported to Senate with amendment(s)

  summary · EN · 19 May 1987

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• Introduced in Senate

  summary · EN · 19 February 1987

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