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SUBJECT: Memorandums of Understanding under the Workforce Investment Act

1. PURPOSE: To provide grantees technical guidance and a framework to address the basic requirements of Sections 121(c)(1) and (2) of the Workforce Investment Act (WIA) of 1998 and, WIA regulations at 20 CFR, Part 662-Subpart C, Memorandum of Understanding for the One Stop Delivery System.

2. REFERENCES: Older Worker (OW) Bullletins Nos. 98-32, 98-35, 98-37 ,99-1, 99-9, and 99-17.

3. BACKGROUND: SCSEP grantees are entitled to serve on WIA Boards pursuant to 20 CFR Section 121(b) (1)(B)(vi), which defines mandatory partners as "Each entity that carries out a program or activities... including activities authorized under title V of the Older Americans Act..." . Although the WIA Boards must address the employment needs of older workers, the States and localities have discretion over who will be appointed to serve on their boards. It is important therefore, that SCSEP grantees actively pursue their inclusion on the boards as advocates of the older worker.

Under WIA, the One-Stop Center partners are required to enter into a Memorandum Of Understanding (MOU) with the Workforce Investment Boards. The MOU establishes the basis for the areas. One-Stop service delivery structure and is the vehicle by which relationships among the partners are described and formalized. The MOU must contain the provisions required by 20 CFR Section 121(c)(2). These provisions must cover services to be provided through the One-Stop delivery system; the funding of the services and operating costs of the system; and methods for referring individuals between the One-Stop operators and partners. The MOU's provisions must also determine the duration and the procedures for amending the MOU, and may contain other provisions that are consistent with the Act and regulations that are agreed to by the parties.

4. DIRECTIVE: Please provide the attached materials to the appropriate staff. The materials are meant to provide technical guidance on the need for MOU's under the Act; and the basic elements of a good MOU. The materials include several examples of current MOU's. It should be noted that MOU's are being developed at the State and local levels and, other than meeting the minimum requirements of the Act, will vary in scope and content.

5. HOMEPAGE: Additional information and technical assistance in WIA and its implementation may be found at the webpage ""

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

Chief Director
Division of Older Worker Programs
Office of National Programs

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