labor lawAdivision of labor law center

Community colleges in Texas and across the nation recently received $125 million in awards under the President’s Community Based Job Training Grants Initiative.

In Texas, community colleges in Corsicana and Levelland received more than $4 million to train workers for current employer openings.

Navarro College in Corsicana received a grant of more than $2 million. The total grant of $2,397,624 will be used to train workers in the fast-growing energy industry. Navarro was recently named the fastest-growing community college in the nation. The funds will be used to launch a new Oil & Gas Production Technology program in Spring 2008.

South Plains College in Levelland will use a $1,625,313 grant to train workers in the burgeoning healthcare industry.

Over 341 applications were filed in a competition announced in August, 2007 by the U.S. Department of Labor. The awards were given to the top 69 competitors to help community colleges and training facilities provide assistance for workers seeking jobs in high-growth industries.

Community colleges provide a local boost for training in areas where certain industries are seeking certain skill sets. The Community-Based Job Training Grants provide training for skilled workers to gain good jobs with career advancement. For example, several nuclear power plants in New Mexico need more skilled employees. A grant to train workers in the energy field could be awarded to a community college located near the plants.

“Community colleges are in a unique position to prepare local workers for careers in high-growth industries,” said Secretary of Labor Elaine L. Chao. “The $125 million awarded today will expand enrollment in education and training programs and provide more workers with the skills they need to succeed.”

The Community-Based Job Training Grants program was established in 2005, awarding 72 grants. In 2006, the second round of grants totaled 70. The purpose of these grants is to boost the community colleges’ role in marketing the full potential of the U. S. workforce.

Over the past few years, several factors have influenced the condition of the American workforce, including technology and innovation, aging of the workforce and globalization.

As a result, certain industries are having trouble finding trained workers. Health care, construction, biotechnology and energy are examples of a few nationwide industries seeking skilled employees. Several regional employers require skilled workers, too, such as the movie industry in Culver City, California.

Acting Assistant Secretary of Labor for Employment and Training, Brent R. Orrell stated, “Preparing local residents for careers in growing hometown industries is critical to improving the quality of life of thousands of Americans. These programs will provide participants not only with the skills needed to gain employment, but the change to enter into careers that offer opportunities for advancement.”

The US Department of Labor recently announced a free workshop on VFCP, to be held in Santa Clarita, California.

Who should attend? According to the US DOL, any HR professional, owner or employer who would like to learn more about bringing their employee retirement accounts into compliance through VFCP.

This free event will be held in Suite 100 of the Small Business Development Center at the Santa Clarita Valley Chamber of Commerce, 28460 Avenue Stanford in Santa Clarita.

The half-day workshop will be held on Thursday June 19, 200 from 8:30 am to 10:30 am, with registration beginning at 8:00 am.

Employers can use this online form to register, or register by phone with Wendy Morgan at (626) 229-1032.

In 2002, the Voluntary Fiduciary Correction Program (VFCP) was established. In 2006, the VFCP was simplified and expanded.

The VFCP allows companies to comply with the ERISA (Employee Retirement Income Security Act) by voluntarily correcting certain law violations.

Workshop attendees will learn how to apply and be approved for this important program, potentially saving thousands of dollars in penalties and fines.

Using VFCP is beneficial to employers, because it allow them to correct past errors in employee retirement plan transactions and avoid prosecution. Employers have nineteen categories under VFCP they are allowed to correct. Among these nineteen types are:

• Below Market Interest Rate Loans With Parties in Interest

• Benefit Payments Based on Improper Valuation of Plan Assets

• Below Market Interest Rate Loans With Non-Parties in Interest

• Defaulted Participant Loans

• Delinquent Participant Contributions and Participant Loan Repayments to Pension Plans

• Fair Market Interest Rate Loans With Parties in Interest

• Holding of an Illiquid Asset Previously Purchased by Plan

• Improper Payment of Expenses by Planof Duplicate, Excessive, or Unnecessary Compensation

• Purchase of Assets by Plans from Parties in Interest

• Purchase of Assets from Non-Parties in Interest at More Than Fair Market Value

• Sale of Assets by Plans to Parties in Interest

Companies eligible to utilize VFCP are those that may be responsible for violations related to employee benefit plans. Officials and sponsors of these plans are seeking exemption from policy enforcement by completing all VFCP procedures.

This exemption provided by the VFCP involves excise taxes, and in some cases, IRS penalties.

It may seem as though VFCP gives companies a “get out of jail free” card for financial defaults regarding employee benefit accounts, but that is not the case. Employers are required to correct all violations, completely and accurately, and provide documented proof that the violations have indeed been corrected. Companies that fail to meet these conditions can face legal action, including civil penalties, under Sections 502 (I) and 502 (i) of the ERISA.

On April 23, the U.S. Department of Labor announced grants to train workers in Missouri and Connecticut totaling almost $2 million.

A $1.7 million employment grant was awarded to the state of Missouri to provide training assistance for workers who lost their jobs as a result of several recent mass layoffs. The mass layoffs included:

• Chrysler LLC in Fenton, Missouri
• Integram St. Louis Seating in Pacific, Missouri
• Yushin USA Ltd. in Kirksville, Missouri

“This $1.7 million grant will provide these Missourians with employment services to help in starting a new career in a growing industry,” said U.S. Secretary of Labor Elaine L. Chao.

All workers impacted by these layoffs have been certified for Trade Adjustment Assistance (TAA). TAA is a federal program that can provide additional benefits, beyond the normal unemployment insurance payments, to workers affected by mass layoffs or plant closures. Under TAA, workers can receive unemployment benefits for a year or more. In addition, TAA offers workers training in new skills to help them secure jobs in a different market sector, including tuition and benefits. In some cases, laid-off workers who earn less at their new job qualify for partial payments through TAA for up to 18 additional months, even while they are working.

The Missouri training grant is awarded to the Missouri Division of Workforce Development and will provide workers with services not covered under the TAA program. The grant will be used to provide a menu of services to workers, including assessment, career counseling and case management. Services and benefits already available to these workers under TAA may include training, job search allowances, relocation allowances and a health coverage tax credit, among others.

This grant benefits an area that has been hard-hit in recent months by various layoffs and plant closures. On Nov. 2, 2007, Chrysler LLC announced that it would be eliminating the second shift at its Fenton, Mo., plant, affecting approximately 1,078 workers.

This change triggered a domino-effect as Chrysler’s suppliers responded to changing market conditions.

On the heels of that announcement, Chrysler suppliers Integram St. Louis Seating announced that they would lay off 326 workers. Then Yushin USA Ltd. announced that they would be laying off about 100 workers.

Of the total announced, $958,608 will be released initially. Additional funding up to $1.7 million will be made available as the state demonstrates a continued need to serve workers affected by these layoffs.

On the same day, the U.S. Department of Labor announced a $250,000 Regional Innovation Grant to assist the state of Connecticut in developing regional talent development strategies. These plans will specifically focus on increasing the technical and engineering skills of Connecticut workers. The project covers the eastern Connecticut region, as well as Worcester County in Massachusetts and Washington County in Rhode Island.

“Eastern Connecticut is working across state boundaries to ensure area workers have opportunities to build the kinds of technical skills that are in demand,” said acting Assistant Secretary for Employment and Training Brent R. Orrell. “The $250,000 this grant provides will help bring together business and education leaders to address skills shortages and establish plans for long-term talent development.”

The grant goes to the Eastern Connecticut Workforce Investment Board. It will be implemented by the newly formed Engineering and Technical Skills Task Force.

Members of the Skills Task Force will collaborate with area educational partners to analyze the region’s capacity to offer engineering and technical skills training programs and issue recommendations to address existing and emerging skills gaps.

Normally, when a grant such as this identifies employer needs and a plan to train workers, it is followed by a larger training grant, such as the one in Missouri.

The project also will support plans to increase the number of engineering degree programs, and strengthen connections between employers and potential workers through internship and apprenticeship programs.

According to the Kentucky Department of Labor, on July 1, 2008 the Kentucky minimum wage will increase by 70 cents from $5.85 per hour to $6.55 per hour.

The current state minimum wage in Kentucky mirrors the federal minimum wage of $6.55 per hour. Slightly more than 3 weeks after the increase, the federal minimum wage will also rise by 70 cents per hour to $6.55 per hour.

The Kentucky minimum wage for tipped employees remains unchanged at $2.13 per hour under KRS 337.275 (2)

In Kentucky, the Division of Employment Standards, Apprenticeship and Training is responsible for the administration and enforcement of Kentucky’s minimum wage, overtime, wage payment, child labor, wage discrimination laws and the equal opportunities provisions including the rights of the physically disabled. This division is charged with investigating allegations of statute and regulation violations and rendering findings “in a timely and efficient manner.”

The last increase to the Kentucky minimum wage occurred on June 26, 2007 when the state minimum wage went from $5.15 per hour to $5.85 per hour. This increase occurred almost a month before the similar increase in the federal minimum wage.

Under the Kentucky state wage and hour laws, employers are required to pay workers overtime at 1.5 times the worker’s usual hourly rate, when the employee puts in more than 40 hours in a single week. State law also requires that employers pay

Giving “comp time” instead of paying overtime is illegal under state law. Employees who are not legally entitled to overtime can be given “comp time.”

Under state law, employees are entitled to a meal period between the 3^rd and 5^th hour of the shift. Kentucky law does not define the meal period, other than to say that it must be “reasonable.” The meal period may be eliminated in cases where the employee and employer have mutually agreed to another arrangement. If the employee is completely relieved of all work duties, the meal period may be unpaid.

There is no state law that Kentucky employers must pay workers for unused, earned vacation time upon termination. That is determined by the employer’s written policy or past practice. Employees who are terminated for any reason, or who resign, are entitled to a final paycheck on the next regular payday, or within 14 days – whichever is sooner.

Most Kentucky employees are entitled to overtime pay for the entire day when they work 7 days in a workweek. However, an employee who works less than 40 hours in the week is exempt. In addition, workers in a number of occupations are exempt from this “seventh day overtime” law including:

• Stenographers
• Bookkeepers
• Lawyers and other licensed professionals
• Technical Assistants of licensed professionals
• Railway employees
• Sailors
• Truck Drivers subject to Department of Transportation regulations
• Supervisors, foremen, or superintendents.

Under the Kentucky minimum wage laws, deductions to a worker’s paycheck for cash shortages or damaged items cannot cause wages to fall below the minimum wage.

Employers must advise workers of any change in work hours or rate of pay in advance. They can also put any worker on salary – but that may not eliminate the need to pay overtime under federal or state law.

Kentucky employers can require that employees be paid by direct deposit as long as the employee has the ability to withdraw his or her entire net pay without paying any fees to the financial institution.

Employers in Michigan will soon have an infusion of highly-skilled workers thanks to more than $5.8 million in worker training grants to 2 community colleges and a city development agency.

The Detroit Workforce Development Department will use a grant of $1,850,000 to train workers in the hospitality and retail industries.

A grant of $2 million goes to the St. Clair County Community College to train workers in transportation, distribution and logistics. The school is located in Port Huron, a small city on the US/Canada border that features the Blue Water Bridge.

An Auburn Hills community college is the third winner. Workers for the nanotechnology industry will train at Oakland Community College under a $1,960,497 grant. The school in southeast Michigan is best known for its participation in the Michigan No Worker Left Behind program of job training for the unemployed.

The President’s Community Based Job Training Grants Initiative awards grants to community colleges and training facilities to help workers compete for jobs in high-growth industries. The program was established in 2005 and awarded grants to 72 institutions. In 2006, the second round awarded 70 grants.

In 2008, according to a recent announcement by the U. S. Department of Labor , 69 community colleges across America were granted $125 million under this program.

These funds will assist workers in 36 states, including Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Illinois, Iowa, Kansas, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Nebraska, Nevada, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Tennessee, Texas, Utah, Virginia, Washington and Wisconsin.

Secretary of Labor Elaine L. Chao said, “Community colleges are in a unique position to prepare local workers for careers in high-growth industries. The $125 million awarded today will expand enrollment in education and training programs and provide more workers with the skills they need to succeed.”

The focus of the Community-Based Job Training Grants is to provide community colleges with programs to train people in areas where industries need workers with a particular set of skills. For example, a grant for training in the energy industry may be awarded to a community college in New Mexico near a cluster of nuclear power plants that require more skilled workers.

As a result of factors such as globalization, technology, innovation and an aging workforce, many industries are in dire need of skilled employees. Industries across the county, including advanced manufacturing and construction are seeking skilled employees. Regional industries, too, are in need of qualified workers. For example, Crescent City, California’s hospitality industry needs skilled workers.