
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 29USC2931]

 
                             TITLE 29--LABOR
 
                CHAPTER 30--WORKFORCE INVESTMENT SYSTEMS
 
                      SUBCHAPTER V--ADMINISTRATION
 
Sec. 2931. Requirements and restrictions


(a) Benefits

                              (1) Wages

        (A) In general

            Individuals in on-the-job training or individuals employed 
        in activities under this chapter shall be compensated at the 
        same rates, including periodic increases, as trainees or 
        employees who are similarly situated in similar occupations by 
        the same employer and who have similar training, experience, and 
        skills, and such rates shall be in accordance with applicable 
        law, but in no event less than the higher of the rate specified 
        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 section 206(a)(1) of 
        this title--
                (i) shall be deemed to be a reference to section 
            206(a)(3) of this title for individuals in American Samoa; 
            and
                (ii) shall not be applicable for individuals in other 
            territorial jurisdictions in which section 206 of this title 
            does not apply.

         (2) Treatment of allowances, earnings, and payments

        Allowances, earnings, and payments to individuals participating 
    in programs under this chapter 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 chapter shall be used to pay the 
    wages of incumbent employees during their participation in economic 
    development activities provided through a statewide workforce 
    investment system.

                          (2) Displacement

        (A) Prohibition

            A participant in a program or activity authorized under this 
        chapter (referred to in this section as a ``specified 
        activity'') shall not displace (including a partial 
        displacement, 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 existing contract 
        for services or 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 and employer 
        concerned.

                       (3) Other prohibitions

        A participant in a specified activity shall not be employed in a 
    job if--
            (A) any other individual is on layoff from the same or any 
        substantially equivalent job;
            (B) the employer has terminated the employment of any 
        regular employee or otherwise 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 promotional opportunities of 
        currently employed individuals (as of the date of the 
        participation).

                        (4) Health and safety

        Health and safety standards established under Federal and State 
    law otherwise applicable 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 individuals in the State in similar employment.

                      (5) Employment conditions

        Individuals in on-the-job training or individuals employed in 
    programs and activities under this chapter, shall be provided 
    benefits 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 organizations, shall be provided an 
    opportunity to submit comments to the Secretary with respect to 
    programs and activities proposed to be funded under subchapter II of 
    this chapter.

                  (7) No impact on union organizing

        Each recipient of funds under this chapter shall provide to the 
    Secretary assurances 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 allotment under this 
    chapter shall establish and maintain a procedure for grievances or 
    complaints alleging violations of the requirements of this chapter 
    from participants 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 allegation 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 determination 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 chapter shall be limited--
            (A) to suspension or termination of payments under this 
        chapter;
            (B) to prohibition of placement of a participant with an 
        employer that has violated any requirement under this chapter;
            (C) where applicable, to reinstatement of an employee, 
        payment of lost wages and benefits, and reestablishment of other 
        relevant terms, conditions, and privileges of employment; 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 
    chapter.

(d) Relocation

       (1) Prohibition on use of funds to encourage or induce 
                                 relocation

        No funds provided under this chapter 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 for customized or skill 
              training and related activities after relocation

        No funds provided under this chapter for an employment and 
    training activity shall be used for customized or skill training, 
    on-the-job training, or company-specific assessments of job 
    applicants or employees, for any business or part of a business that 
    has relocated, until the date that is 120 days after the date on 
    which such business commences operations at the new location, if the 
    relocation of such business or part of a business results in a loss 
    of employment for any employee of such business at the original 
    location 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 Secretary shall require the State that has 
    violated such paragraph to repay to the United States an amount 
    equal to the amount expended in violation of such paragraph.

(e) Limitation on use of funds

    No funds available under this chapter shall be used for employment 
generating activities, economic development activities, investment in 
revolving loan funds, capitalization of businesses, investment in 
contract bidding resource centers, and similar activities that are not 
directly related to training for eligible individuals under this 
chapter. No funds available under subchapter II of this chapter 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 subchapter II of 
        this chapter for the use of controlled substances; and
            (B) sanctioning such participants who test positive for the 
        use of such controlled substances.

                     (2) Additional requirements

        (A) Period of sanction

            In sanctioning participants in programs under subchapter II 
        of this chapter 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 occurrence and each 
            subsequent occurrence for which a participant tests 
            positive, a State may exclude the participant from the 
            program for a period not to exceed 2 years.

        (B) Appeal

            The testing of participants and the imposition of sanctions 
        under this subsection shall be subject to expeditious appeal in 
        accordance with due process procedures established by the State.

        (C) Privacy

            A State shall establish procedures for testing participants 
        for the use of controlled substances that ensure a maximum 
        degree of privacy for the participants.

                     (4) \1\ Funding requirement
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    \1\ So in original. No par. (3) has been enacted.
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        In testing and sanctioning of participants for the use of 
    controlled substances in accordance 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 2864(a)(3)(B) of this title.

(Pub. L. 105-220, title I, Sec. 181, Aug. 7, 1998, 112 Stat. 1038.)

                       References in Text

    This chapter, referred to in text, was in the original ``this 
title'' meaning title I of Pub. L. 105-220, Aug. 7, 1998, 112 Stat. 939, 
as amended, which enacted this chapter, repealed sections 1501 to 1505, 
1511 to 1583, 1592 to 1735, 1737 to 1791h, 1792 to 1792b, 2301 to 2314 
of this title, section 211 of Title 40, Appendix, Public Buildings, 
Property, and Works, sections 11421, 11441 to 11447, 11449, 11450, 11461 
to 11466, 11471, and 11472 of Title 42, The Public Health and Welfare, 
and sections 42101 to 42106 of Title 49, Transportation, enacted 
provisions set out as notes under sections 1501, 2301, and 2940 of this 
title and section 11421 of Title 42, and repealed provisions set out as 
notes under sections 801 and 2301 of this title and section 1255a of 
Title 8, Aliens and Nationality. For complete classification of title I 
to the Code, see Tables.
    The Social Security Act, referred to in subsec. (a)(2), is act Aug. 
14, 1935, ch. 531, 49 Stat. 620, as amended, which is classified 
generally to chapter 7 (Sec. 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.


                            Prior Provisions

    Provisions similar to this section were contained in sections 1551 
to 1554 of this title prior to repeal by Pub. L. 105-220.

                  Section Referred to in Other Sections

    This section is referred to in title 7 section 2014.
