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WIA Income
On July 1, 2000 the WIA of 1998 replaced the JPTA. WIA effects many other federally-funded employment and training, literacy and vocational rehabilitation programs, and offers a comprehensive range of workforce development activities through statewide and local organizations. Available workforce development activities provided in local communities can benefit job seekers, laid off workers, youth, incumbent workers, new entrants to the workforce, veterans, persons with disabilities, and employers.
The purpose of these activities is to promote an increase in the employment, job retention, earnings, and occupational skills improvement by participants. This, in turn, improves the quality of the workforce, reduces welfare dependency, and improves the productivity and competitiveness of the nation.
Types of Payments
The WIA of 1998 provides for several types of payments for participants, as follows:
- Wages for Work Experience Programs. Wage rates must not be less than the higher of the federal, state or local minimum wage, or the prevailing rate of pay for individuals employed in similar occupations by the same employer.
- Need Based Payments, (sometimes called “living allowance”). Where necessary, need based payments may be provided in accordance with a locally developed formula or procedure to enable individuals to participate in a training program.
- Payments for Supportive Services. Cash or in kind assistance may be provided to cover supportive services which are necessary to enable an individual, who is eligible for training but who cannot afford to pay for such services, to participate in a training program. Such payments cover transportation, health care, child care, meals, etc.
- Compensation in Lieu of Wages. Compensation in lieu of wages must be provided for participants in tryout employment at private for profit work sites or at public and private nonprofit work sites when private for profit work sites are not available. Individuals in tryout employment may not participate more than 20 hours per week during the school year or 250 hours per assignment.
Note: If there is some question as to the type of compensation or payment the customer receives, the EW must contact the WIA provider for clarification.
Treatment of WIA Income Received by a CalWORKs Child
When a CalWORKs child receives wages from WIA, the wages are earned income (i.e., SPEDY) and exempt for both income eligibility (including the recipient net income test) and grant determination.
When the CalWORKs child's income from WIA is training allowances or reimbursements from WIA, they are exempt for both income eligibility (recipient net income test) and grant determination.
Treatment of WIA Income Received by an Adult
If an adult in the CalWORKs AU receives wages from WIA, the wages are to be considered earned income and the Earned Income Disregard are applied along with the earned income sanctions, if appropriate.
When an adult in a CalWORKs AU receives training allowances or reimbursements, these will be exempt as income to the extent that the payment does not exceed the actual cost of the expense. These include need based payments (sometimes called “living allowance”) and supportive payments.
- Actual training-related expenses are deducted.
- Any remainder is unearned income.
- Expenses must be verified.
If the adult receives income in kind, it shall be treated as any other income in kind provided to an CalWORKs recipient.
Note: Persons in the residential Job Corps are considered temporarily absent from their homes. Their home is still being maintained; they usually go home on weekends. They only receive two meals a day. The in kind benefits that they receive are partial and therefore exempt.
Related Topics
Treatment of Excluded Persons Income