29 U.S.C. § 3241 — Requirements and restrictions

Page 934 TITLE 29—LABOR § 3241 (C) For fiscal year 2027, $363,000. (D) For fiscal year 2028, $399,300. (E) For fiscal year 2029, $439,200. (7) Annual report For each year, each recipient of a grant under this subsection shall submit to the Sec- retary a report describing how grant funds al- located pursuant to this subsection were ex- pended during the 12-month period preceding the date of the submission of the report. (e) Evaluations The Secretary is authorized to reserve not more than 10 percent of the funds appropriated for a fiscal year to carry out this section, for the purposes of conducting evaluations of the grant programs identified in subsection (d) and to pro- vide related technical assistance. (f) Reporting Not later than the expiration of the 36-month period following December 29, 2022, the Sec- retary shall prepare and submit to Congress a report— (1) on progress related to employee owner- ship in businesses in the United States; and (2) containing an analysis of critical costs and benefits of activities carried out under this section. (g) Authorizations of appropriations (1) In general There are authorized to be appropriated for the purpose of making grants pursuant to sub- section (d) the following: (A) For fiscal year 2025, $4,000,000. (B) For fiscal year 2026, $7,000,000. (C) For fiscal year 2027, $10,000,000. (D) For fiscal year 2028, $13,000,000. (E) For fiscal year 2029, $16,000,000. (2) Administrative expenses There are authorized to be appropriated for the purpose of funding the administrative ex- penses related to the Initiative— (A) for fiscal year 2024, $200,000, and (B) for each of fiscal years 2025 through 2029, an amount not in excess of the lesser of— (i) $350,000; or (ii) 5.0 percent of the maximum amount available under paragraph (1) for that fis- cal year. (Pub. L. 117–328, div. T, title III, § 346, Dec. 29, 2022, 136 Stat. 5381.) Editorial Notes CODIFICATION Section was enacted as part of the SECURE 2.0 Act of 2022, and also as part of the Consolidated Appropria- tions Act, 2023, and not as part of title I of the Work- force Innovation and Opportunity Act which comprises this subchapter. PART E—ADMINISTRATION Statutory Notes and Related Subsidiaries DEFINITION OF ‘‘SECRETARY’’ In this part, ‘‘Secretary’’ means the Secretary of Labor, see section 3151(b)(1)(C)(ii)(II) of this title. § 3241. Requirements and restrictions (a) Benefits (1) Wages (A) In general Individuals in on-the-job training or indi- viduals employed in activities under this subchapter shall be compensated at the same rates, including periodic increases, as trainees or employees who are similarly sit- uated in similar occupations by the same employer and who have similar training, ex- perience, and skills, and such rates shall be in accordance with applicable law, but in no event less than the higher of the rate speci- fied in section 206(a)(1) of this title or the applicable State or local minimum wage law. (B) Rule of construction The reference in subparagraph (A) to sec- tion 206(a)(1) of this title shall not be appli- cable for individuals in territorial jurisdic- tions in which section 206(a)(1) of this title does not apply. (2) Treatment of allowances, earnings, and pay- ments Allowances, earnings, and payments to indi- viduals participating in programs under this subchapter shall not 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, other than as provided under the Social Security Act (42 U.S.C. 301 et seq.). (b) Labor standards (1) Limitations on activities that impact wages of employees No funds provided under this subchapter shall be used to pay the wages of incumbent employees during their participation in eco- nomic development activities provided through a statewide workforce development system. (2) Displacement (A) Prohibition A participant in a program or activity au- thorized under this subchapter (referred to in this section as a ‘‘specified activity’’) shall not displace (including a partial dis- placement, such as a reduction in the hours of nonovertime work, wages, or employment benefits) any currently employed employee (as of the date of the participation). (B) Prohibition on impairment of contracts A specified activity shall not impair an ex- isting contract for services or collective bar- gaining 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 and employer con- cerned. (3) Other prohibitions A participant in a specified activity shall not be employed in a job if— Page 935 TITLE 29—LABOR § 3241 (A) any other individual is on layoff from the same or any substantially equivalent job; (B) the employer has terminated the em- ployment of any regular employee or other- wise reduced the workforce of the employer with the intention of filling the vacancy so created with the participant; or (C) the job is created in a promotional line that will infringe in any way upon the pro- motional opportunities of currently em- ployed individuals (as of the date of the par- ticipation). (4) Health and safety Health and safety standards established under Federal and State law otherwise appli- cable to working conditions of employees shall be equally applicable to working conditions of participants engaged in specified activities. To the extent that a State workers’ compensation law applies, workers’ compensation shall be provided to participants on the same basis as the compensation is provided to other individ- uals in the State in similar employment. (5) Employment conditions Individuals in on-the-job training or individ- uals employed in programs and activities under this subchapter shall be provided bene- fits and working conditions at the same level and to the same extent as other trainees or employees working a similar length of time and doing the same type of work. (6) Opportunity to submit comments Interested members of the public, including representatives of businesses and of labor or- ganizations, shall be provided an opportunity to submit comments to the Secretary with re- spect to programs and activities proposed to be funded under part B. (7) No impact on union organizing Each recipient of funds under this sub- chapter shall provide to the Secretary assur- ances that none of such funds will be used to assist, promote, or deter union organizing. (c) Grievance procedure (1) In general Each State and local area receiving an allot- ment or allocation under this subchapter shall establish and maintain a procedure for griev- ances or complaints alleging violations of the requirements of this subchapter from partici- pants and other interested or affected parties. Such procedure shall include an opportunity for a hearing and be completed within 60 days after the filing of the grievance or complaint. (2) Investigation (A) In general The Secretary shall investigate an allega- tion of a violation described in paragraph (1) if— (i) a decision relating to such violation has not been reached within 60 days after the date of the filing of the grievance or complaint and either party appeals to the Secretary; or (ii) a decision relating to such violation has been reached within such 60 days and the party to which such decision is adverse appeals such decision to the Secretary. (B) Additional requirement The Secretary shall make a final deter- mination relating to an appeal made under subparagraph (A) no later than 120 days after receiving such appeal. (3) Remedies Remedies that may be imposed under this section for a violation of any requirement of this subchapter shall be limited— (A) to suspension or termination of pay- ments under this subchapter; (B) to prohibition of placement of a partic- ipant with an employer that has violated any requirement under this subchapter; (C) where applicable, to reinstatement of an employee, payment of lost wages and ben- efits, and reestablishment of other relevant terms, conditions, and privileges of employ- ment; and (D) where appropriate, to other equitable relief. (4) Rule of construction Nothing in paragraph (3) shall be construed to prohibit a grievant or complainant from pursuing a remedy authorized under another Federal, State, or local law for a violation of this subchapter. (d) Relocation (1) Prohibition on use of funds to encourage or induce relocation No funds provided under this subchapter shall be used, or proposed for use, to encourage or induce the relocation of a business or part of a business if such relocation would result in a loss of employment for any employee of such business at the original location and such original location is within the United States. (2) Prohibition on use of funds after relocation No funds provided under this subchapter for an employment or training activity shall be used for customized or skill training, on-the- job training, incumbent worker training, tran- sitional employment, or company-specific as- sessments of job applicants or employees, for any business or part of a business that has re- located, until the date that is 120 days after the date on which such business commences operations at the new location, if the reloca- tion of such business or part of a business re- sults in a loss of employment for any em- ployee of such business at the original loca- tion and such original location is within the United States. (3) Repayment If the Secretary determines that a violation of paragraph (1) or (2) has occurred, the Sec- retary shall require the State that has vio- lated such paragraph (or that has provided funding to an entity that has violated such paragraph) to repay to the United States an amount equal to the amount expended in vio- lation of such paragraph. (e) Limitation on use of funds No funds available to carry out an activity under this subchapter shall be used for employ- Page 936 TITLE 29—LABOR § 3242 ment generating activities, investment in re- volving loan funds, capitalization of businesses, investment in contract bidding resource centers, economic development activities, or similar ac- tivities, that are not directly related to training for eligible individuals under this subchapter. No funds received to carry out an activity under part B shall be used for foreign travel. (f) Testing and sanctioning for use of controlled substances (1) In general Notwithstanding any other provision of law, a State shall not be prohibited by the Federal Government from— (A) testing participants in programs under part B for the use of controlled substances; and (B) sanctioning such participants who test positive for the use of such controlled sub- stances. (2) Additional requirements (A) Period of sanction In sanctioning participants in a program under part B who test positive for the use of controlled substances— (i) with respect to the first occurrence for which a participant tests positive, a State may exclude the participant from the program for a period not to exceed 6 months; and (ii) with respect to the second occur- rence and each subsequent occurrence for which a participant tests positive, a State may exclude the participant from the pro- gram for a period not to exceed 2 years. (B) Appeal The testing of participants and the imposi- tion of sanctions under this subsection shall be subject to expeditious appeal in accord- ance with due process procedures established by the State. (C) Privacy A State shall establish procedures for test- ing participants for the use of controlled substances that ensure a maximum degree of privacy for the participants. (3) Funding requirement In testing and sanctioning of participants for the use of controlled substances in accord- ance with this subsection, the only Federal funds that a State may use are the amounts made available for the administration of statewide workforce investment activities under section 3174(a)(3)(B) of this title. (g) Subgrant authority A recipient of grant funds under this sub- chapter shall have the authority to enter into subgrants in order to carry out the grant, sub- ject to such conditions as the Secretary may es- tablish. (Pub. L. 113–128, title I, § 181, July 22, 2014, 128 Stat. 1586.) Editorial Notes REFERENCES IN TEXT The Social Security Act, referred to in subsec. (a)(2), is act Aug. 14, 1935, ch. 531, 49 Stat. 620, which is classi- fied generally to chapter 7 (§ 301 et seq.) of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see section 1305 of Title 42 and Tables. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective on the first day of the first full pro- gram year after July 22, 2014 (July 1, 2015), see section 506 of Pub. L. 113–128, set out as a note under section 3101 of this title. § 3242. Prompt allocation of funds (a) Allotments based on latest available data All allotments to States and grants to out- lying areas under this subchapter shall be based on the latest available data and estimates satis- factory to the Secretary. All data relating to disadvantaged adults and disadvantaged youth shall be based on the most recent satisfactory data from the Bureau of the Census. (b) Publication in Federal Register relating to formula funds Whenever the Secretary allots funds required to be allotted under this subchapter, the Sec- retary shall publish in a timely fashion in the Federal Register the amount proposed to be dis- tributed to each recipient of the funds. (c) Requirement for funds distributed by formula All funds required to be allotted under section 3162 or 3172 of this title shall be allotted within 45 days after the date of enactment of the Act appropriating the funds, except that, if such funds are appropriated in advance as authorized by section 3249(g) of this title, such funds shall be allotted or allocated not later than the March 31 preceding the program year for which such funds are to be available for obligation. (d) Publication in Federal Register relating to discretionary funds Whenever the Secretary utilizes a formula to allot or allocate funds made available for dis- tribution at the Secretary’s discretion under this subchapter, the Secretary shall, not later than 30 days prior to such allotment or alloca- tion, publish for comment in the Federal Reg- ister the formula, the rationale for the formula, and the proposed amounts to be distributed to each State and local area. After consideration of any comments received, the Secretary shall pub- lish final allotments and allocations in the Fed- eral Register. (e) Availability of funds Funds shall be made available under section 3163 of this title, and funds shall be made avail- able under section 3173 of this title, for a local area not later than 30 days after the date the funds are made available to the Governor in- volved, under section 3162 or 3172 of this title (as the case may be), or 7 days after the date the local plan for the area is approved, whichever is later. (Pub. L. 113–128, title I, § 182, July 22, 2014, 128 Stat. 1589.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective on the first day of the first full pro- gram year after July 22, 2014 (July 1, 2015), see section