of training beginning within the covered period as follows:

(a) To begin within the covered period, a week must begin on or after July 1, 1962 or, if the agreement under the Act is executed after July 1, 1962, the day on which the agreement is entered into by the State and the Secretary;

(b) After June 30, 1965, payment for training allowances may be made by the Secretary only if the State bears onethird of the cost of training allowances paid, including State unemployment compensation paid for weeks of training under the Act or, in the case of railroad unemployment insurance benefits, the Railroad Retirement Board pays onethird of the cost of the railroad unemployment insurance benefits paid during training;

(c) After June 30, 1966, payment for training allowances may be made by the Secretary only if the State bears one-half of the cost of training allowances paid, including State unemployment compensation paid for weeks of training under the Act or, in the case of railroad unemployment insurance benefits, the Railroad Retirement Board pays one-half of the cost of the railroad unemployment insurance benefits paid during training;

(d) No payment shall be made after June 30, 1966, except in the case of a trainee who had begun a training project before July 1, 1966 with respect to which an allowance was payable under the Act or with respect to which reimbursement was payable under the Act or would have been so payable but for the fact that the unemployment compensation was payable under Title XV of the Social Security Act or any other Federal law;

(e) Payments may be made for weeks of training after July 1, 1966, but in no event may any payment be made after December 30, 1966, and

(f) The amount of the allowance paid after the effective date of the regulations of this part shall be adjusted in accordance with the requirements herein, except that no individual who is enrolled in a training project and has been receiving a training allowance shall be deemed ineligible for a training allowance on the basis of changes made herein. [29 F.R. 7718, June 17, 1964] § 20.3

Advisory committees.

(a) State advisory committees. The Secretary or his authorized representatives shall utilize the consultative services of a State advisory committee composed

insofar as practicable of persons representing education, training, labor, management, agriculture, and the public in general.

(b) Local advisory groups. The Secretary or his authorized representatives, where appropriate, shall require the establishment and utilize the consultative services of local advisory groups composed, insofar as practicable, of persons representing education, training, labor, management, agriculture, and the public in general.

[29 F.R. 7718, June 17, 1964]

§ 20.4 State agency information require

ments.

In order that they may fulfill their responsibilities under the Act State agencies will need the cooperation of the training facilities to secure the following:

(a) Acknowledgment in writing when referred individuals have been enrolled;

(b) Cooperation and assistance in the filing of allowance requests by eligible trainees;

(c) Notification of the completion or other termination or significant interruption of training of any enrolled trainee;

(d) Determinations and certification as to a trainee's attendance and progress, as provided for in § 20.50; and

(e) Such additional reports as may be required by the Secretary. § 20.5 Standards for vocational training. Training projects conducted pursuant to section 231 of the Act shall meet the standards and policies prescribed by the Secretary of Health, Education, and Welfare.

Subpart B-Selection and Referral § 20.10 Determination of employment opportunities.

(a) Reasonable expectation of employment. Prior to referral to specific occupational training, a determination shall be made that there is a reasonable expectation of employment for the individual in the occupation. In the absence of such determination, there shall be no referral of any person to a training program, except that there need not be a determination of specific occupational objective at the time of referral to instruction in basic educational skills or at the time of enrollment in a special youth program if there is reasonable assurance that such instruction or program will permit the trainee to enter occupational

training of a type for which reasonable opportunity for employment is anticipated.

(b) Jobs or opportunities excluded. The determination of training needs shall not include jobs or opportunities which:

(1) Do not meet prevailing standards of the industry in the labor market area in which they exist with respect to wages (subject to the standards for on-the-job training prescribed in §§ 20.20 to 20.23), hours and conditions of employment;

(2) Exist due to the transfer of any establishment, production, business or service which has caused an increase in unemployment in the area of original location or in any other area where such establishment, production, business or service conducts business operations;

(3) Requires less than two weeks training, unless there are immediate employment opportunities in such occupation; or

(4) Could not be filled by the United States Employment Service under its policies and regulations with respect to referrals to employment as contained in the Code of Federal Regulations and as implemented by the pertinent provisions of the Employment Security Manual.

[27 F.R. 8537, Aug. 25, 1962, as amended at 29 F.R. 7718, June 12, 1964]

§ 20.11 Determination of an individual's training needs.

Prior to selection and referral of a person for training, the Secretary shall determine through the State agency, or through such other agency as he may designate, the training needs of such person by interviewing, testing, and counseling as necessary with regard to his aptitudes, interests, education and other pertinent factors. § 20.12

Selection and referral of

trainees.

(a) Persons, including youths, who are otherwise eligible for training shall be selected for training projects which are commensurate with their training needs, if at the time of their selection and referral, they are:

(1) Unemployed or underemployed and cannot reasonably be expected to secure appropriate full-time employment without training;

(2) Registered at the appropriate local public employment service office or such other agency as may be designated by the Secretary; and

(3) Available for counseling or other personal interviews and for aptitude, proficiency, or other occupational tests which may be required.

(b) In selecting and referring applicants for training projects, priority shall be extended to:

(1) Unemployed over underemployed individuals, and

(2) Subject to the priority above individuals are to be trained for employment; first, within the labor market area in which they reside, second, within the State of their residence, and third, outside the State in which they reside if not in the same labor market area.

(c) Trainees shall not be referred to training projects to qualify them for employment where the terms or conditions of employment are contrary to Federal, State, or local law.

(d) Selection and referral of applicants shall be made in accordance with the policies and regulations of the United States Employment Service relating to referral to employment or such other criteria as may be established.

Subpart C-On-the-Job Training

§ 20.20 Standards for on-the-job training.

The following standards will be applied to on-the-job training projects. Each project shall:

(a) Have the objective of teaching the basic needs requisite for satisfactory performance in the occupation for which the training is given;

(b) Require that the trainee devote his time principally to training where the payment of allowances is contemplated;

(c) Provide methods of instruction, scheduling of sessions, progression of trainees, size of the training class or group, all of which shall meet the approval of the Secretary, and be comparable in duration to similar projects, and adequate in content to qualify trainees for employment;

(d) Provide adequate and safe facilities and equipment, qualified instructors and other personnel;

(e) Require that suitable records of attendance, performance and progress of trainees be maintained and that such records be made available to the Secretary, when so requested;

(f) Provide that upon request the trainee shall be given an opportunity to be heard and reconsideration or review

of any certification made which terminates him from training absent good cause; and

(g) Provide that for hours spent in production of any goods or services the rate of compensation to be paid to trainees by employers shall be specified in a written agreement entered into by the training facility and the Secretary. § 20.21

Requirements for agreements for on-the-job training.

Prior to entering into an agreement with a training facility it shall first be determined that there is:

(a) Joint agreement to the training project and the wage scale by the training facility and the bargaining agent where there is a collective bargaining agreement applicable to the establishment and the occupation;

(b) Reasonable assurance that the wage rate set for the trainees will not tend to create unfair competitive labor cost advantages nor have the effect of impairing or depressing wage or working standards established for experienced workers for work of a like or comparable character in the establishment and industry; and

(c) No abnormal labor condition such as a strike, a lock-out, or other similar condition, existing at the establishment. § 20.22 Rates under agreements.

The agreement with the training facility shall include the rate of compensation to be paid to trainees by the training facility, determined as follows:

(a) If experienced workers are paid on a piece rate basis, trainees shall be paid at least the same piece rates as experienced workers employed on similar work in the establishment;

(b) If experienced workers in the establishment are paid on a time rate basis, trainees shall be paid on a time rate basis, which is to be expressed as a progressively increasing proportion of the rate paid to experienced workers and determined on a basis of information about the typical output curve of a trainee and the length of time required to reach the proficiency of an experienced worker, provided that the training project is of such duration that periodic increases are reasonable; and

(c) In no case shall the wage rate paid a trainee be less than the following, whichever is highest:

(1) The minimum entrance rate for inexperienced workers in the same occu

pation in the establishment or if the occupation is new to the establishment, the prevailing entrance rate for the occupation among other establishments in the community or area;

(2) The minimum rate required under the Fair Labor Standards Act (including any special rate provided by certification under section 14 of the Act) or the Walsh-Healey Public Contracts Act, to the extent that such Acts are applicable to the trainee; or

(3) Any minimum rate applicable to the trainee and required under any other Federal law, or any State or local law. § 20.23 Provisions of agreements.

Any agreement entered into pursuant to section 204 shall provide:

(a) That the training facility shall adhere to all requirements relative to terms or conditions of employment prescribed by any applicable Federal, State or local law;

(b) That after notice and opportunity to be heard, including an opportunity to demonstrate compliance and make restitution, a determination of failure to adhere to any such requirements shall constitute cause for termination of the agreement.

Subpart D-Allowances

§ 20.30 Eligibility for training allow

ances.

(a) An unemployed individual who was selected and referred to training under Title II of the Act may be eligible for a regular, supplemental, increased or augmented training allowance, or the Railroad Retirement Board's account or a State's account in the Unemployment Trust Fund may be reimbursed, if, during the week, he is the head of a family, head of a household, or a member of a household in which the head of the family or of the household is unemployed, and has had at least two years' experience in gainful employment prior to the week of training involved: Provided, Not more than one member of a family or household may be receiving any such training allowance at any particular time. For purposes of this proviso, a member of a family or household does not include a youth receiving a youth training allowance.

(b) If not so qualified, he may be eligible for a youth training allowance if he is a disadvantaged youth and prior to the week of training involved, has

reached his 17th birthday and if, in the event such youth has not graduated from high school, the Secretary has satisfied himself that he has continuously failed to attend school for a period of not less than one year and that the local authorities, after pursuing all appropriate procedures, including guidance and counseling, have concluded, after considering any assistance available under section 13 of the Vocational Education Act of 1963, that further school attendance by him in any regular academic or vocational program is no longer practicable under the circumstances.

(c) In order for an individual to have had two years' experience in gainful employment, the experience need not be consecutive and may have been acquired at any time in the individual's lifetime. Qualifying periods for the two years' experience are:

(1) A calendar year in which the individual had 150 days of work regardless of the months or quarters in the year in which the work was performed;

(2) A calendar quarter in which the individual had 35 days of work regardless of the months within the quarter in which they occurred; or

(3) A calendar month in which the individual had 10 days of work; and

(4) For purposes of this section a day of work shall include any day on which work was performed, even though less than a full day's work.

[29 F.R. 7718, June 17, 1964]

§ 20.31 Qualifications for training al

lowances.

In order for an individual to be eligible for a training allowance or for a State's account or the Railroad Retirement Board's account in the Unemployment Trust Fund to be reimbursed, an unemployed individual must also:

(a) Have been selected and referred to training under Title II of the Act; (b) Make a request for the training allowance in the manner and form prescribed by the Secretary;

(c) Have been enrolled for the week during his training period in accordance with the requirements of the training facility;

(d) Not have received or be seeking unemployment compensation under any Federal or State law for the week or any part of the week, except that:

(1) If he is seeking unemployment compensation and his claim is finally

denied by the responsible agency involved, this restriction shall not apply,

or

(2) If he receives unemployment compensation in a lesser amount than the amount of the allowance to which he is otherwise entitled under this Act but for the receipt of such payment, he shall be entitled to the difference provided under this Act; and

(e) Not be within a period of ineligibility described in § 20.32.

[27 F.R. 8537, Aug. 25, 1962, as amended at 28 F.R. 4557, May 7, 1963]

§ 20.32

Periods of ineligibility for training allowances.

An individual may not receive any allowance under Title II of this Act and no reimbursement shall be made to a State or the Railroad Retirement Board for unemployment compensation paid for a week of training that begins within one year following the date that the individual:

(a) Is terminated from training pursuant to certification under subsection 202 (h) of the Act;

(b) Refuses, without good cause, to accept training under the Act; provided, however, that no individual shall be required to accept training in an occupation which is below the economic or skill level of his present occupation; or

(c) Completes, or terminates prior to completion (for other than good cause), a program in connection with which the individual received a training allowance under this Act or any other Federal Act, or received unemployment compensation payments which were reimbursed under this Act or any other Federal Act, or would have been reimbursed but for the fact that such payments were made under a Federal Act, and which were paid with respect to such training. There is a completion of a training program when the individual has taken training for the number of weeks for which he was scheduled or rescheduled in a training program, or in the opinion of the training facility has achieved the objective of the training program. Nothing in this paragraph prohibits a trainee who has completed a course in basic education skills from receiving an allowance upon entering an occupational training course. [27 F.R. 8537, Aug. 25, 1962, as amended at 28 F.R. 4557, May 7, 1963; 29 F.R. 7719, June 17, 1964]

Training allowances may be paid to an individual for 52 weeks of occupational training. If necessary, training allowances may be paid for basic educational training during the 52 weeks and/or for an additional period of up to 20 weeks. A payment under Title XV of the Social Security Act, or any other Federal law, or any payment (for which reimbursement is made under this Act) to an individual while taking training shall be applied against the 52-week, or 72-week, maximum period, whichever is applicable.

[29 FR. 7719, June 17, 1964]

§ 20.34 Minimum duration of training. No training allowance may be paid to an individual if he has been referred to training for less than six days.

§ 20.35 Amount of training allowance. The amount of the training allowance shall be as follows:

(a) Regular training allowance. The amount of a regular training allowance shall be the average of payments of State unemployment compensation for weeks of total unemployment paid by the State (including dependents' allowances) in the calendar quarter preceding the quarter in which the payment is computed. This amount shall be computed quarterly by dividing the total amount of such payment by the number of weeks of total unemployment compensation. The computed average, if not an exact dollar amount, shall be rounded to the next higher dollar. The amount of an allowance based upon data for a calendar quarter shall be payable for weeks of training that begin within the second calendar quarter following the data quarter.

(b) Guam and the Virgin Islands. The amount of a regular training allowance payable to an individual selected and referred to training under Title II of the Act in Guam and the Virgin Islands shall be a percentage of the average weekly wage paid during the latest calendar quarter for which data are available. The percentage used shall be the ratio of the average weekly unemployment compensation benefit amount to the average weekly total wages in State-covered employment for the United States for the latest period for which data are available for computing

the ratio. The amount computed in accordance with this paragraph shall be determined and redetermined at the same intervals and shall apply to the same periods as in other States.

(c) Youth training allowances. The amount of a training allowance for a youth who does not qualify for a regular training allowance may not exceed the lesser of $20 or the amount of the regular training allowance in the State.

(d) Increased training allowances. A trainee who, but for his training, would have been entitled to unemployment compensation under a Federal or State law in an amount greater than the amount of a regular training allowance as provided above, shall have his training allowance increased to the amount he would have been entitled to under the State or Federal law for those weeks during which he would be entitled to unemployment compensation, including extended durations. All adjustments required by the applicable State. or Federal law shall be made, e.g., deduction for pension or workmen's compensation and vacation pay. The amount and duration of an increased training allowance payable under this Act shall be for as long as the individual would draw unemployment compensation under the law of the State or under the Railroad Unemployment Insurance Act if the Unemployment Trust Fund were not reimbursed under this Act. The State will make the determination to be used in determining the weeks and amounts to which a trainee is entitled in those States that vary weekly benefit amounts during the benfit year because of (1) per employer determinations, (2) change in number of dependents, or (3) change in the State law.

(e) Reduced training allowance. The training allowance (regular, increased, youth, or supplemental) of an on-the-job trainee shall be reduced by two and one-half percent of such allowance for each compensated hour of the week. The training allowance (regular, increased, youth, or supplemental) of a person engaged in full-time training at a training or educational institution authorized under section 231 of the Act shall not be reduced with respect to his earnings during the first 20 hours worked, but shall be reduced in an amount equal to his full earnings for hours worked in excess of 20 hours per week. Except as the Secretary shall