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DATE: 5 MARCH, 1998

      OWB 98-10


      Increasing Private Sector Placements By Using OAA Section 502(e) Authority


      To transmit another Technical Assistance Guide (TAG) in the series of SCSEP publications. "Increasing Private Sector Placements By Using OAA 502(e) Authority" was prepared for the Employment and Training Administration by a committee comprised of SCSEP project sponsors and staff of the Division of Older Worker Programs.


      All Senior Community Service Employment Program (SCSEP) Sponsors


      Erich W. ("Ric") Larisch Chief Division of Older Worker Programs Anna W. Goddard Director Office of National Programs

    Date: March 4, 1998

    Expiration Date:  None


      References: The SCSEP regulations at 20 CFR Section 641.326; Older Americans Act, (OAA) Section 502(e); Older Worker Bulletins 94-12 and 97-7.

      Background: The Section 502(e) experimental projects were first authorized in the Older Americans Act of 1978. Experimental projects focus on increasing older worker participation in the private sector, especially in high technology and high growth fields, by combinations of work-sharing, flexitime and other means to increase employment opportunities. Section 502(e)(1) of the OAA directs the Secretary of Labor " conduct experimental programs that are designed to assure second career training and the placement of eligible individuals into employment opportunities with private business concerns." To comply with this section of the Act, the Department has undertaken experimental job training projects through SCSEP sponsors. The first year of implementation for the experimental projects was Program Year 1983.

      OAA Section 502(e) projects are effective tools in achieving one of the purposes of the SCSEP program; namely, the transition to unsubsidized employment pursuant to the regulations at 20 CFR Section 641.326. Further, OAA Section 502(e) projects may be the best vehicle for obtaining job placements in the private for-profit sector, where wages and fringe benefits are likely to be greater than in the public or non-profit sectors. Thus, such projects can facilitate the achievement of economic self-sufficiency for SCSEP enrollees.

      Innovative Experimental Aspect: Projects funded under Section 502(e) should be innovative and experimental. If it can be done within the normal Title V program, it would not be considered innovative. The objectives of the experimental projects are to develop the skills of older individuals and to develop work modes, such as flex-time, job sharing, and other arrangements to reduce physical exertion. The test for innovation must include consideration of the proposed project under the existing program guidelines. The emphasis of these projects should be on placements into the private sector.

      Action Required: SCSEP sponsors are encourage to review the attached TAG to consider implementation, or to facilitate improvement, of OAA Section 502(e) projects.

      Inquiries: Questions should be directed to your Federal Representative at (202) 219-5904.


      Washington, DC: U.S. Department of Labor, Employment and Training Administration




    "Increasing Private Sector Placements By Using OAA 502(e) Authority"

    For a copy of attachment(s), please contact Mina Johnson, at Division of Older Workers' Programs, Office of National Programs: 202-219-5904, x124.

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