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The Department proposed to revise the Wagner-Peyser Act regulations regarding Employment Services (ES) staffing to require that states use state merit staff to provide ES services, including Migrant and Seasonal Farmworker (MSFW) services, and to improve service delivery.

Statement of Need:

The Department identified areas of the regulation that changed to create a uniform standard of ES services provision for States.

Summary of the Legal Basis:

The Department determined that it is vital for the ES to be administered so that States deliver services effectively and equitably to unemployment insurance beneficiaries and other ES customers.

Alternatives:

Two alternatives will be considered, and the public had the opportunity to comment on these alternatives during the comment period of the NPRM.

Anticipated Costs and Benefits:

The proposed rule was estimated to have one-time rule familiarization costs of $4,205 in 2020 dollars, as well as unknown transition costs. The proposed rule also estimated the rule to have annual transfer payments of $9.6 million for three of the five States that currently have non-State merit staff providing some labor exchange services; transfer payments are monetary payments from one group to another, such as wages shifting from one employer to another, that do not affect total resources available to society. The transfer payments for this proposed rule were the estimated wage cost increases to the States associated with employee wages and fringe benefits. In the NPRM, the Department solicited comments from stakeholders and the public on the unknown transition costs, plus transfer payments that would be incurred by any States with some non-State merit staff providing labor exchange services.

Risks:

This action does not affect the public health, safety, or the environment.