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Layoffs/Major Dislocations

Qualifying Event

  • Mass Layoff or Closure - Layoffs at one or more companies where the dislocation from each company impacts 50 or more workers. If at least one company has a large layoff of 50 or more workers, companies with smaller layoffs may be included if the primary layoff caused or contributed to the smaller layoffs.
  • Industry-Wide Layoffs - Multiple company layoffs from companies in the same industry as determined by the two-digit code level in the North American Industrial Classification System (NAICS). Layoffs of less than 50 workers may be included in an industry-wide DWG application when at least one company of 50 or more is included in the application and the additional companies are in the same NAICS two-digit code level.
  • Community Impact - Multiple small dislocations occurring over a period of up to twelve months that have significantly increased the total number of unemployed individuals in a designated regional or local workforce area. Community impact grants typically serve rural areas where the employer base is predominantly smaller companies with less than 50 employees each, and where layoffs may not meet the definition of "mass layoffs" above. The project must have a total of 50 impacted workers.

Eligible Applicants

Eligible applicants for a Layoff DWG include:

  1. A designated state or outlying area WIOA program agency
  2. A state or local Workforce Development Board
  3. An entity eligible for funding through the Native American Programs (WIOA Section 166(c))

Eligible Participants

Dislocated workers are eligible participants for Layoff DWGs. Generally, a dislocated worker is an unemployed individual who had previous attachment to the workforce and was laid off. Previously self-employed individuals as well as temporary or contract workers impacted by a plant closure or a layoff are also eligible. For a full definition of dislocated worker eligibility, see WIOA Section 3(15). Governors and local boards have the authority to establish policies and procedures for frontline staff to determine dislocated worker eligibility.

Certain individuals that have served National Guard active duty are eligible as described under WIOA section 170(c)(2)(A)(iv) and Section 2b of this guidance.

BRAC Eligible Participants

Where military installations are intended to be closed or realigned through a formal Base Realignment and Closure (BRAC) process, eligible impacted individuals may be served with DWG funds. Civilians employed at a military installation (employed by the Department of Defense or the Department of Energy) that is being closed or that will undergo realignment are eligible participants. Department of Defense contractors who are employed in non-managerial positions, and who are determined to be at risk of termination as a result of reductions in defense expenditures, are also eligible. In the event of an announcement of a new round of BRAC activities, ETA will issue specific guidance for DWG applications reflecting the requirements of the BRAC law. If there is a military installation or closure not specific to a BRAC action, applicants should follow eligibility guidelines for Layoff DWGs.