Narrative: e.

#1. Waiver of the requirement for local boards to use no more than 20 percent of Adult and Dislocated Worker funding allocation for incumbent worker training

Colorado requests a waiver of the limitation that local boards may reserve and use no more than 20 percent of the Adult and Dislocated Worker funds allocated to the local area to pay for the federal share of incumbent worker training programs for Program Years 2024 and 2025. Incumbent worker training (IWT) is designed to meet the special requirements of an employer or group of employers to retain a skilled workforce or avert the need to lay off employees by assisting the workers in obtaining the skills necessary to retain employment. The public workforce system plays a critical role to avert layoffs where possible and to assist employers in staying open and restructure to survive in an economy where wages are inflating and profit margins are slim. As the cost of living skyrockets in Colorado, workers need to continually develop new and evolving skills to stay employed or to advance into a higher paying job. The limitation on IWT funds prevents Colorado from being flexible and directing resources where they are needed most to help workers and businesses to thrive.

1. The statutory and/or regulatory requirements the State would like to waive: WIOA Section 134(d)(4)and 20 CFR 680.800(a) to allow local areas to reserve up to 50 percent of Adult and Dislocated Worker funds for incumbent worker training (IWT), which states that local boards may reserve and use no more than 20 percent of the Adult and Dislocated Worker funds allocated to the local area to pay for the federal share of IWT programs.

2. Actions the State has undertaken to remove State or local barriers: N/A - There are no state or local statutory or regulatory barriers to implementing the proposed waiver.

3a. State strategic goal(s) supported by the waiver: PRIORITY TWO: INCREASE THE QUALITY OF UPSKILLING OPPORTUNITIES, JOBS, AND CAREER PATHWAYS. The Colorado workforce development system is building on its strong foundation to ensure that all Coloradans have access to life-long learning opportunities connected to the future of work. Removing the cap on IWT funds will provide the flexibility needed to ensure all Colorado workers and businesses are set up for future success.

3b. Department of Labor priorities (i.e. expansion of apprenticeship, improved employer engagement, etc.) supported by the waiver: WIOA provides for a workforce system that is universally accessible and customer centered, with an emphasis on work based learning and classroom training that is job driven. Among the many training options available to Adults and Dislocated Workers is IWT, a learning strategy that allows local areas to serve individuals who are currently working. Providing more IWT will further increase the competitiveness of the employee and the employer and result in increased employer engagement with the workforce system. 

4. Quantifiable projected programmatic outcomes resulting from implementation of the waiver: Colorado’s current waiver is set to expire June 30, 2024. Although no local areas used the waiver in PY23, the number of incumbent workers served this program year is expected to exceed the 514 incumbent workers served in PY22. (In PY23  through April 23, 2024, 404 incumbent workers have been served.) For PY24 and PY25,  3 local areas have committed to using this waiver, and we are expecting this to result in a 10% increase in the total number served over the final number served in PY23. 

The waiver will result in new skills to help incumbent workers along their career pathways, new entry-level job openings to backfill as incumbent workers move up, less stress on the unemployment benefits system when layoffs are averted, more engaged employers, and increased competitiveness of workers and employers.

The use of these strategies will increase skills for underemployed workers to advance these workers to more skilled positions with the same employer or industry sector leading to an increase in earnings. The quantifiable outcomes from this waiver will include increasing the number of IWTs served. CDLE will also track employment retention and earnings outcomes to measure whether use of this waiver has a positive effect for incumbent workers.  Three local areas have committed to using this waiver if granted.

5. Individuals, groups or populations benefitting from the waiver: This waiver is intended to benefit incumbent workers and businesses, as well as job seekers that benefit from new job opportunities that will open up in these businesses as a result of the training support that the public workforce system provides to them.  

6. How the State plans to monitor waiver implementation, including collection of measurable waiver outcome information: CDLE has a long standing, comprehensive monitoring and performance accountability system that measures and evaluates results for job seekers and employers accessing Colorado’s network of One-Stop centers. On a monthly and quarterly basis, CDLE reviews and analyzes client enrollment and service levels, program expenditures, and performance outcomes. In addition, State program monitors conduct quarterly reviews designed to assure that contract requirements are being met for all WIOA programs. On an annual basis, comprehensive compliance monitoring is conducted onsite. 

Should this waiver request be granted, CDLE will regularly monitor the impacts of this waiver authority to ensure appropriateness and effectiveness, specifically tracking the amount and percentage of Adult and Dislocated Worker funds used for IWT and the number of incumbent workers served. CDLE will also track employment retention and earnings outcomes for incumbent workers to measure whether use of this waiver has a positive effect. CDLE will report on the outcomes in the WIOA Annual Report.

7. Assurance of State posting of the request for public comment and notification toaffected local workforce development boards: This waiver request was published for a period of 30 days with the WIOA State Plan on the public website maintained by the Colorado Workforce Development Council, allowing for public comment on its content and potential impact. In addition, electronic copies of the waiver were sent via email to local boards and one-stop operators. 

#2. Waiver of the requirement for an incumbent worker to have an established employment history of six months or longer with the employer 

Colorado requests a waiver of the requirement for workers to be with a company for six months before qualifying as an incumbent worker for Program Years 2024 and 2025. The six month employment history is an arbitrary time frame that is irrelevant to the skills of the worker. We recognize that there is an exception (In the event that the incumbent worker training is being provided to a cohort of employees, not every employee in the cohort must have an established employment history with the employer for 6 months or more as long as a majority of those employees being trained do meet the employment history requirement); however, we are seeking increased flexibility to better serve businesses and their workers. 

The public workforce system plays a critical role to avert layoffs where possible and to assist employers in staying open and restructuring to survive in a tight labor market. Workers will need new and evolving skills to stay employed, as the nature of work changes with the increased use of technology to meet business needs. The limitation on incumbent worker training prevents Colorado from directing resources where they are needed most to help sustain workers and businesses thrive.

1. The statutory and/or regulatory requirements the State would like to waive: 20 CFR § 680.780, which states that a worker must have an established employment history with the employer for 6 months or more to qualify as an “incumbent worker”.

2. Actions the State has undertaken to remove State or local barriers: N/A - There are no state or local statutory or regulatory barriers to implementing the proposed waiver.

3a. State strategic goal(s) supported by the waiver: PRIORITY TWO: INCREASE THE QUALITY OF UPSKILLING OPPORTUNITIES, JOBS, AND CAREER PATHWAYS. The Colorado workforce development system is building on its strong foundation to ensure that all Coloradans have access to life-long learning opportunities connected to the future of work. Removing the timeframe for an established work history will provide the flexibility needed to ensure all Colorado workers and businesses are set up for future success.

3b. Department of Labor priorities (i.e. expansion of apprenticeship, improved employer engagement, etc.) supported by the waiver: WIOA provides for a workforce system that is universally accessible and customer centered, with an emphasis on work-based learning and classroom training that is job driven. Among the many training options available to Adults and Dislocated Workers is incumbent worker training, a learning strategy that allows local areas to serve individuals who are currently working. Providing more incumbent worker training will result in increased employer “buy-in” and engagement in the workforce system.

4. Quantifiable projected programmatic outcomes resulting from implementation of the waiver: Colorado’s current waiver is set to expire June 30, 2024. Although no local areas used the waiver in PY23, the number of incumbent workers served this program year is expected to exceed the 514 incumbent workers served in PY22. (In PY23  through April 23, 2024, 404 incumbent workers have been served.) For PY24 and PY25,  3 local areas have committed to using this waiver, and we are expecting this to result in a 10% increase in the total number served over the final number served in PY23. 

The waiver will result in new skills to help incumbent workers along their career pathways, new entry-level job openings to backfill as incumbent workers move up, less stress on the unemployment benefits system when layoffs are averted, more engaged employers, and increased competitiveness of workers and employers. 

The quantifiable outcomes from this waiver will include increasing the number of IWTs served. CDLE will also track employment retention and earnings outcomes to measure whether use of this waiver has a positive effect for incumbent workers. Four local areas have committed to using this waiver if granted.

5. Individuals, groups or populations benefitting from the waiver: This waiver is intended to benefit incumbent workers and businesses, as well as job seekers that benefit from new job opportunities that will open up in these businesses as a result of the training support that the public workforce system provides to them.  

6. How the State plans to monitor waiver implementation, including collection of measurable waiver outcome information: CDLE has a long standing, comprehensive monitoring and performance accountability system that measures and evaluates results for job seekers and employers accessing Colorado’s network of One-Stop centers. On a monthly and quarterly basis, CDLE reviews and analyzes client enrollment and service levels, program expenditures, and performance outcomes. In addition, State program monitors conduct quarterly reviews designed to assure that contract requirements are being met for all WIOA programs. On an annual basis, comprehensive compliance monitoring is conducted onsite. 

Should this waiver request be granted, CDLE will regularly monitor the impacts of this waiver authority to ensure appropriateness and effectiveness, specifically tracking the number of incumbent workers served and employment retention and earnings outcomes for incumbent workers to measure whether use of this waiver has a positive effect. CDLE will report on the outcomes in the WIOA Annual Report.

7. Assurance of State posting of the request for public comment and notification to affected local workforce development boards: This waiver request was published for a period of 30 days with the WIOA State Plan on the public website maintained by the Colorado Workforce Development Council, allowing for public comment on its content and potential impact. In addition, electronic copies of the waiver were sent via email to local boards and one-stop operators. 

#3. Waiver to increase on-the-job training employer reimbursement up to 90 percent for business with 50 or fewer employees

Colorado requests a waiver to increase on-the-job training (OJT) reimbursements up to 90 percent of the wage rate of participants in the Title I Adult, Dislocated Worker, and Youth programs for Program Years 2024 and 2025. Nearly all (99.5%) of Colorado’s businesses are considered small (500 or fewer employees) and these businesses employ 48.2% of Colorado workers. This request would only apply to the smallest businesses, those with 50 or fewer employees. On-the-job training is a proven workforce strategy that benefits both individuals and businesses. OJTs are especially a critical tool for small businesses that require specialized on-the-job training and do not have a deep labor pool on standby. This waiver will allow the system to put people to work in “earn and learn” OJT opportunities, while also giving businesses the workforce they need to remain competitive. 

1. The statutory and/or regulatory requirements the State would like to waive: WIOA Section 134(c)(3)(H)(i), which permits the Governor or local boards to increase the amount of on-the-job training reimbursements up to 75 percent of the wage rate of a participant.

2. Actions the State has undertaken to remove State or local barriers: N/A - There are no state or local statutory or regulatory barriers to implementing the proposed waiver.

3a. State strategic goal(s) supported by the waiver: PRIORITY TWO: INCREASE THE QUALITY OF UPSKILLING OPPORTUNITIES, JOBS, AND CAREER PATHWAYS. The Colorado workforce development system is building on its strong foundation to ensure that all Coloradans have access to life-long learning opportunities connected to the future of work.  Colorado is committed to lifelong upskilling opportunities that incorporate earn and learn approaches so individuals do not have to sacrifice income to increase their skills. Preparing workers for future work with subsidized opportunities to small businesses is a win-win for Colorado’s economy.

3b. Department of Labor priorities (i.e. expansion of apprenticeship, improved employer engagement, etc.) supported by the waiver: WIOA places an emphasis and priority on work-based learning opportunities, and this waiver will enable Colorado to create more of these opportunities with small businesses in the state so workers can advance. USDOL FY 2022-26 Strategic Plan: Strategic Objective 1.1 Advance training, employment, and return-to-work opportunities that connect workers to higher-wage jobs, especially in ways that address systemic inequities. This waiver will allow local areas to develop customer-centered strategies that support individuals and businesses in employment.

4.Quantifiable projected programmatic outcomes resulting from implementation of the waiver: The quantifiable outcomes from this waiver will include increased utilization of OJT by increasing the number of OJT placements for small businesses in PY24 and PY 25 by 10%. Six local areas have committed to using this waiver, if granted.

5. Individuals, groups or populations benefitting from the waiver: This waiver is intended to benefit Title I participants that are suitable for OJT opportunities. Entry-level workers and dislocated workers with outdated skills will particularly benefit from work-based learning. Small businesses will benefit by increasing their labor pool. Local boards will benefit from increased flexibility to connect jobseekers and employers through OJTs.

6. How the State plans to monitor waiver implementation, including collection of measurable waiver outcome information: CDLE has a long standing, comprehensive monitoring and performance accountability system that measures and evaluates results for job seekers and employers accessing Colorado’s network of One-Stop centers. On a monthly and quarterly basis, CDLE reviews and analyzes client enrollment and service levels, program expenditures, and performance outcomes. In addition, State program monitors conduct quarterly reviews designed to assure that contract requirements are being met for all WIOA programs. On an annual basis, comprehensive compliance monitoring is conducted onsite. 

Should this waiver request be granted, CDLE will monitor the number of OJTs with businesses with 50 or fewer employees to determine if the utilization of OJT increases, and will regularly monitor the impacts of this waiver authority to ensure appropriateness and effectiveness. CDLE will report on the outcomes in the WIOA Annual Report.

7. Assurance of State posting of the request for public comment and notification to affected local workforce development boards: This waiver request was published for a period of 30 days with the WIOA State Plan on the public website maintained by the Colorado Workforce Development Council, allowing for public comment on its content and potential impact. In addition, electronic copies of the waiver were sent via email to local boards and one-stop operators. 

#4. Waiver for local boards to allow WIOA individual training accounts (ITAs) for In School Youth

Colorado requests a waiver of 20 CFR 681.550 to allow WIOA individual training accounts (ITAs) for In School Youth (ISY), ages 16-21 for Program Years 2024 and 2025. In order to enhance individual participant choice in their education and training plans and provide flexibility to service providers, Colorado seeks to make ITAs available to ISY. This waiver will complement Colorado’s existing waiver of the requirement that the State expend 75 percent of Governor’s reserve youth funds on OSY. Providing occupational training to ISY via an ITA will maximize the service delivery capacity of the State of Colorado’s WIOA Youth Program by allowing those youth that are focused on employment to have the same access as adults, dislocated workers, and out-of-school youth to the advantages of ITAs.

1. The statutory and/or regulatory requirements the State would like to waive: 20 CFR 681.550, which allows ITAs funded by WIOA youth funds to be used Only by out-of-school youth. 

2. Actions the State has undertaken to remove State or local barriers: N/A - There are no state or local statutory or regulatory barriers to implementing the proposed waiver.

3a. State strategic goal(s) supported by the waiver: This waiver aligns with the following priority in Colorado’s State Plan. PRIORITY FOUR: ENHANCE ACCESS TO PROGRAMMING BY CREATING MORE SEAMLESS CONNECTIONS BETWEEN HIGH SCHOOL, POSTSECONDARY EDUCATION, AND THE WORKFORCE, Action Item A: Expand early credential attainment and postsecondary opportunities for all high school students

3b. Department of Labor priorities (i.e. expansion of apprenticeship, improved employer engagement, etc.) supported by the waiver: In WIOA, the intent of using ITAs for out-of-school youth in the WIOA Youth program is to expand training options, increase program flexibility, enhance customer choice, and reduce paperwork. Colorado would like ISY to also have this option. This waiver encourages this youth population to seriously look at career pathways in the in-demand occupations and empowers them to make their own decisions, thereby taking responsibility for their actions. The waiver also assists in the preparation of an emerging workforce with candidates who are ready for work.

4. Quantifiable projected programmatic outcomes resulting from implementation of the waiver: The number of Measurable Skills Gains (MSGs) this program year is expected to exceed the 1,112 MSGs achieved  in PY22. (In PY23 through April 23, 2024, 892 MSGs have been achieved.) For PY24 and PY25, 5 local areas have committed to using this waiver, and we are expecting this to result in a 5% increase in the total number MSGs achieved over the final number achieved in PY23. 

We also project an increase in the number of Measurable Skills Gains (MSGs) since ISYs would be involved in occupational, pre-apprenticeship, or apprenticeship training. 

5. Individuals, groups or populations benefitting from the waiver: The waiver will enhance individual participant choice for ISY in their education and training plans and provide flexibility in selecting service providers.

6. How the State plans to monitor waiver implementation, including collection of measurable waiver outcome information: CDLE has a long standing, comprehensive monitoring and performance accountability system that measures and evaluates results for job seekers and employers accessing Colorado’s network of One-Stop centers. On a monthly and quarterly basis, CDLE reviews and analyzes client enrollment and service levels, program expenditures, and performance outcomes. In addition, State program monitors conduct quarterly reviews designed to assure that contract requirements are being met for all WIOA programs. On an annual basis, comprehensive compliance monitoring is conducted onsite. 

Should this waiver request be granted, CDLE will regularly monitor the impacts of this waiver authority to ensure appropriateness and effectiveness, specifically tracking the number of youth served and the number of MSGs in the Youth program. CDLE will track and report on the outcomes in the WIOA Annual Report.

7. Assurance of State posting of the request for public comment and notification to affected local workforce development boards: This waiver request was published for a period of 30 days with the WIOA State Plan on the public website maintained by the Colorado Workforce Development Council, allowing for public comment on its content and potential impact. In addition, electronic copies of the waiver were sent via email to local boards and one-stop operators. 

#5. Waiver to allow local workforce development areas to count both WIOA local youth formula funds and TANF funds toward the minimum 20 percent expenditure requirement for paid or unpaid work experience.

Colorado requests a waiver of WIOA Section 129(c)(4) and 20 CFR 681.590(b) for Program Years 2024 and 2025, to allow local workforce development areas to count both WIOA local youth formula funds and TANF funds toward the minimum 20 percent expenditure requirement for paid or unpaid work experience. Colorado’s objective in seeking this waiver is to leverage federal resources, strengthen cross-program partnerships, and create an incentive for co-enrollments between the WIOA Youth and TANF programs.

1. The statutory and/or regulatory requirements the State would like to waive: WIOA Section 129(c)(4) and 20 CFR 681.590(b) to allow local workforce development areas to count both WIOA local youth formula funds and TANF funds toward the minimum 20 percent expenditure requirement for paid or unpaid work experience. 

2. Actions the State has undertaken to remove State or local barriers: N/A - There are no state or local statutory or regulatory barriers to implementing the proposed waiver.

3a. State strategic goal(s) supported by the waiver: Colorado Combined State Plan includes Colorado’s TANF program (Colorado Works). This waiver aligns with the following priority in Colorado’s State Plan by leveraging public investments across programs.  PRIORITY TWO: INCREASE THE QUALITY OF UPSKILLING OPPORTUNITIES, JOBS, AND CAREER PATHWAYS, Action Step B: Publish and examine the return on investment of programs

3b. Department of Labor priorities (i.e. expansion of apprenticeship, improved employer engagement, etc.) supported by the waiver: In WIOA, Congress encouraged closer coordination between TANF and the public workforce development system. The law requires WIOA-funded one-stop centers to partner with TANF unless the state’s governor has affirmatively chosen to opt out. WIOA also permits states to include TANF in combined state workforce planning as Colorado has chosen to do, encouraging coordination between multiple programs.

4. Quantifiable projected programmatic outcomes resulting from implementation of the waiver: Under this waiver, CDLE will include the amount of TANF dollars spent on co-enrolled WIOA Youth during a program year in both the numerator and denominator of the Youth work experience expenditure rate calculation. The formula below defines the proposed alternative calculation to be used: 

Proposed Youth Work Experience Expenditure Rate Calculation Under Waiver Authority 

(WIOA Youth Work Experience Expenses/Total WIOA Youth Expenses)  +  (TANF spent on co-enrolled WIOA Youth/TANF spent on co-enrolled WIOA Youth)

In Colorado, one local workforce area (Tri-County) plans to implement this waiver as a means to strengthen their co-enrollment processes with their county TANF program, which is located within the same county department. They also seek to leverage their resources to increase the number of youth who are able to benefit from both programs.

This waiver encourages co-enrollment and braiding of WIOA youth and TANF funds by allowing more flexibility in serving youth. The quantifiable outcomes from this waiver will include increasing the number of WIOA-funded youth participants and increasing the number of youth co-enrolled in WIOA and TANF so that youth have the full array of services and funding necessary to complete services. In addition, Tri-County will serve as a pilot and share their lessons learned from waiver implementation with the rest of the state so other local areas may consider utilizing it in the future.

The number of Youth enrolled for the PY23 program year through April 30, 2024 is 1658. The number of PY23 WIOA youth identified as TANF recipients for the same time period is 62. For both measures, we are expecting the use of the waiver to result in a 5% increase for PY24 and PY25 over the final totals for PY23.

5. Individuals, groups or populations benefitting from the waiver: The waiver will benefit youth with barriers to employment by allowing local areas to fund services in a manner which best meets the needs of the participant. It will also benefit a larger number of youth by extending WIOA funds and allowing resources to go further.

6. How the State plans to monitor waiver implementation, including collection of measurable waiver outcome information: CDLE has a long standing, comprehensive monitoring and performance accountability system that measures and evaluates results for job seekers and employers accessing Colorado’s network of One-Stop centers. On a monthly and quarterly basis, CDLE reviews and analyzes client enrollment and service levels, program expenditures, and performance outcomes. In addition, State program monitors conduct quarterly reviews designed to assure that contract requirements are being met for all WIOA programs. On an annual basis, comprehensive compliance monitoring is conducted onsite. 

Should this waiver request be granted, CDLE will regularly monitor the impacts of this waiver authority to ensure appropriateness and effectiveness, specifically tracking the number of youth co-enrolled in WIOA and TANF, and the overall number of youth served in WIOA. CDLE will track and report on the outcomes in the WIOA Annual Report.

7. Assurance of State posting of the request for public comment and notification to affected local workforce development boards: This waiver request will be published for a period of 30 days with the WIOA State Plan on the public website maintained by the Colorado Workforce Development Council, allowing for public comment on its content and potential impact. In addition, electronic copies of the waiver will be sent via email to local boards and one-stop operators.