Applicants for Regular NEGs may submit a single application to cover layoff events at either a single location, or at multiple employers and/or employment sites. The following eligible layoff events apply to Regular NEGs:
- A single company layoff of 50 or more workers. Funding priority will be given to applications that document a group of workers large enough to qualify for a project of their own. Generally, groups of fewer than 50 workers are expected to be served with formula Dislocated Worker program funds. ETA will, however, on a case-by-case basis, examine the sustainability of projects to serve smaller groups.
- Multiple company layoffs, where 50 or more workers from each company are dislocated. Applications must demonstrate a sustainable project size including documented planned participation of at least 50 workers from each company.
- Industry wide layoffs, which include companies in the same industry as determined by their three-digit North American Industrial Classification System (NAICS) code.Â Priority will be given to applications that document at a minimum, a mass layoff or plant closure, where 50 or more workers from each company are affected and the affected workers are not located in the same local workforce investment area. In applications where the dislocation events are in the same local workforce investment area, and the firms are within the three-digit NAIC sector cited in the application, only one company must have a layoff of more than 50 workers.Â The other companies included in the application may have layoffs of fewer than 50 workers.
- Layoffs affecting an entire community(Community Impact), where multiple small dislocations (50 workers or less from each company) over a 6-month period have a significant impact on the unemployment rate of a local (often rural) workforce area, as determined by the State, Community Impact NEGs are available to assist dislocated workers. For single-area States, a local commuting area or labor market may be used as the affected area. Priority will be given to applications where the unemployment rate of the impacted area increased at least 1 percent during the previous six months. As with other multiple company applications, each impacted company and all impacted company locations must be identified.
In all of the above cases:
- Where the state is the applicant, independently eligible events (i.e., layoffs of 50 or more) should have occurred within the state during the 120-day period (4 months) preceding the date of application.
- Where a local board, or consortium of local boards, is the applicant, all layoffs must (1) be within the service area of the local board, or the area covered by the consortium agreement, (2) meet the 50-or-more threshold, and (3) have occurred within the 120-day period preceding the application date.
The 70-percent dislocated worker program formula *expenditure rate must be met to apply for this type of NEG application.
*Outlays (expenditures) mean charges made to the project or program. They may be reported on a cash or accrual basis. For reports prepared on a cash basis, outlays are the sum of actual cash disbursement for direct charges for goods and services, the amount of indirect expense incurred, the value of in-kind contributions applied, and the amount of cash advances and payments made to contractors and subgrantees. [29 CFR 97.3]
Relevant Guidance: TEGL 16-03