National Dislocated Worker Program FAQs

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  1. Q1: Is the cost of instructing a participant in “contact tracing” an allowable cost?

    ​Yes, if the cost is reasonable and necessary for the participant's placement in a Disaster Recovery job.  Note that the LWIA will need to work with the Department to determine if the instruction should be classified as a WIOA Career Service or Training Service.

  2. Q2: Do the training programs under the NDWG grants have to be listed on the State WIOA Eligible Training Provider List?


  3. Q3: Can the LWIA hire a participant to act as a Project Coordinator?


  4. Q4: Can the cost of hiring a third party (staffing agency) be considered an allowable cost to the grant?

    ​Yes, as long as the costs are reasonable and necessary and that local procurement procedures are followed.  When performing a cost/price analysis, the "contract plus a percentage of cost" method of contracting must not be used.  There is no rule of thumb for a reasonable profit margin, but a profit margin above 10% is going to receive more attention and analysis as to whether it is reasonable based on the complexity of the service being provided.  Any profit that exceeds 10% must be reviewed and pre-approved by DCEO in consultation with the USDOL grant manager.

  5. Q5: What is the administrative cost limit for the NDWG awards?

    Administrative costs are limited to 10% at the local level.

  6. Q6: The current On the Job Training regulations does not allow LWIAs to place participants with employers that have recently laid off workers. Will this be modified?

    At this time the Department does not have the authority to relax the regulation.  The Department has requested additional guidance from the US Department of Labor.

  7. Q7: Are the wages for Disaster Relief Employment (temporary workers) participants subject to the unemployment withholding requirements?

    ​Yes.  Please note the Office of Employment and Training is requesting a clarification with the Illinois Department of Employment Security to see if there is any flexibility with this requirement – specifically for employers that are governmental entities.

  8. Q8: Are the work experience wages for participants that are placed in work experience/paid internships/transitional jobs subject to the unemployment withholding requirements?

    No, If it is as part of an approved training program.