§2318. Supplemental wage allowance demonstration projects

(a) Establishment of projects; purpose

The Secretary shall establish one or more demonstration projects during fiscal years 1989 and 1990 for the purpose of-

(1) determining the attractiveness of a supplemental wage allowance to various categories of workers eligible for assistance under this part, based on the amount and duration of the supplement;

(2) determining the effectiveness of a supplemental wage allowance as an option under this part in facilitating the readjustment of adversely affected workers; and

(3) determining whether a supplemental wage allowance should be made an option under the Trade Adjustment Assistance program for all fiscal years.

(b) Supplemental wage allowances

(1) For purposes of this section, the term "supplemental wage allowance" means a payment that is made to an adversely affected worker who-

(A) accepts full-time employment at an average weekly wage that is less than the average weekly wage of the worker in the adversely affected employment,

(B) prior to such acceptance, is eligible for trade readjustment allowances under sections 2291 to 2294 of this title, and

(C) voluntarily elects to receive such payment in lieu of any trade readjustment allowances that the worker would otherwise be eligible to receive with respect to the period covered by the certification made under subpart A of this part that applies to such worker.

(2) A supplemental wage allowance shall be provided under any demonstration project established under subsection (a) of this section to a worker described in paragraph (1) for each week during which the worker performs services in the full-time employment referred to in paragraph (1)(A) in an amount that does not exceed the lesser of-

(A) the amount of the trade readjustment allowance that the worker would have been eligible to receive for any week under sections 2291 to 2294 of this title if the worker had not accepted the full-time employment and had not made the election described in paragraph (1)(C), or

(B) the excess of-

(i) an amount equal to 80 percent of the average weekly wage of the worker in the adversely affected employment, over

(ii) the average weekly wage in the full-time employment.

(3)(A) Supplemental wage allowances shall not be provided under any demonstration project established under subsection (a) of this section for more than 52 weeks.

(B) The total amount of supplemental wage allowances that may be paid to any worker under any demonstration project established under subsection (a) of this section with respect to the period covered by the certification applicable to such worker shall not exceed an amount that is equal to the excess of-

(i) the amount of the limitation imposed under section 2293(a)(1) of this title with respect to such worker for such period, over

(ii) the amount of the trade readjustment allowances paid under sections 2291 to 2294 of this title to such worker for such period.

(c) Evaluation of projects

The Secretary shall provide for an evaluation of demonstration projects conducted under this section to determine at least the following:

(1) the extent to which different age groups of eligible recipients utilize the supplemental wage allowance;

(2) the effect of the amount and duration of the supplemental wage allowance on the utilization of the allowance;

(3) the extent to which the supplemental wage allowance affects the demand for training and the appropriateness thereof;

(4) the extent to which the supplemental wage allowance facilitates the readjustment of workers who would not otherwise utilize benefits provided under this part;

(5) the extent to which the allowance affects the cost of carrying out the provisions of this part; and

(6) the effectiveness of the supplemental wage allowance as an option under this part in facilitating the readjustment of adversely affected workers.

(d) Report to Congress; evaluation and recommendation

By no later than the date that is 6 years after August 23, 1988, the Secretary shall transmit to the Congress a report that includes-

(1) an evaluation of the projects authorized under this section that is conducted in accordance with subsection (c) of this section, and

(2) a recommendation as to whether the supplemental wage allowance should be available on a permanent basis as an option for some or all workers eligible for assistance under this part.

(Pub. L. 93–618, title II, §246, as added Pub. L. 100–418, title I, §1423(d)(1), Aug. 23, 1988, 102 Stat. 1246 ; amended Pub. L. 101–382, title I, §136, Aug. 20, 1990, 104 Stat. 652 .)

Termination of Section

For termination of section by section 285 of Pub. L. 93–618, see Termination Date note set out preceding section 2271 of this title.

Prior Provisions

A prior section, Pub. L. 93–618, title II, §246, Jan. 3, 1975, 88 Stat. 2027 , contained transition provisions for events taking place during specified periods prior to the effective date of this part, prior to repeal by Pub. L. 97–35, title XXV, §2513(c), Aug. 13, 1981, 95 Stat. 889 .

Amendments

1990-Subsec. (a). Pub. L. 101–382, §136(1), struck out "and carry out" after "establish" in introductory provisions.

Subsec. (d). Pub. L. 101–382, §136(2), substituted "6 years" for "3 years".

Supplemental Wage Allowances Regarded as Trade Readjustment Allowances

Section 1423(d)(2) of Pub. L. 100–418 provided that: "For purposes of funding the demonstration projects established under section 246(a) of the Trade Act of 1974 [19 U.S.C. 2318(a)], as added by paragraph (1) of this subsection-

"(A) the supplemental wage allowances payable under such projects shall be considered to be trade readjustment allowances payable under part I of subchapter B of chapter 2 of title II of the Trade Act of 1974 [19 U.S.C. 2291 to 2294], and

"(B) the costs of administering such projects by the States shall be considered to be costs of administering such part I."