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Trade Adjustment Assistance


What is Trade Adjustment Assistance (TAA)?

How do I apply?

Who may file a TAA petition for certification of eligibility?

How long does the Department of Labor take to make a decision on a certification?

How does a petitioner appeal a negative determination of TAA eligibility?

How are workers notified when their company becomes Trade-Act certified?

When did the Trade and Globalization Adjustment Act of 2009 take effect?

 

TAA job-search assistance
Once certified and determined eligible, what re-employment services are available?
What is job-search allowance and how do I qualify?
What is a relocation allowance and how do I qualify?

Health Coverage Tax Credit
What is the Health Coverage Tax Credit?
How do I qualify for the Health Coverage Tax Credit?

Training assistance
What is TAA-approved training and what types of training are available?
What are the conditions for the approval of TAA training?
What costs may be included in training?
What is classroom training?
What is on-the-job training?
What is customized training?
What is remedial training?
What are Trade Readjustment Allowances (TRA)?
How do I qualify for TRA?
Can approved training be waived for basic TRA?
What is the duration and timeline of a training waiver?

Alternative Trade Adjustment Assistance (ATAA)
What is ATAA and how do I apply?
What is the application process for ATAA?
What are the ATAA-eligibility requirements?

Additional information
Where can I find TAA statutes and regulations?
Is there a U.S. Department of Labor Web site with additional information?

 

What is Trade Adjustment Assistance (TRA)?
Trade Adjustment Assistance (TAA) and Alternative Trade Adjustment Assistance (ATAA) programs assist workers who have become unemployed as a result of increased imports from, or shifts in production to, foreign countries. The goal of the Trade Act programs is to help trade-affected workers return to suitable employment as quickly as possible. TAA-certified workers may access services that include income support, relocation allowances, job-search allowances, and a health-coverage tax credit. TAA participants that require retraining in order to obtain suitable employment may receive occupational training if determined eligible. TAA services may be expanded to secondary workers of businesses or suppliers to the primary company, firm or petitioning workers who filed the TAA petition.

In addition, the ATAA program for older workers provides an alternative to the benefits offered under the regular TAA program. Participation in ATAA allows older workers, for whom retraining may not be suitable, to accept re-employment at a lower wage and receive a wage subsidy.

Employment Security Department serves as agent to the U.S. Department of Labor (DOL) in administering the Trade Adjustment Assistance program for Washington state.

How do I apply?
Obtaining TAA and ATAA benefits is a two-step process:

Step 1 - Group Certification: A petition must first be filed on behalf of a group of workers with the U.S. Department of Labor requesting certification as workers adversely affected by foreign trade. A single petition form covers requests for both TAA and ATAA certification. If the worker group meets the necessary group-eligibility criteria, a certification will be issued by the U.S. Department of Labor. A worker group must be certified for TAA in order to be certified for ATAA. Download the required petition.

Step 2 - Individual Eligibility: After a group certification is issued, each worker in the group may then apply for individual services and benefits. The company receiving TAA certification provides a list of impacted employees to Employment Security Department and letters of instruction are sent to each affected employee. These letters will either inform workers of an upcoming TAA orientation or ask workers to schedule appointments through their local WorkSource office. This appointment is needed to determine individual eligibility for services and benefits offered under the program.

Who may file a Trade Adjustment Assistance petition for certification of eligibility?
Certification of eligibility may be filed by:

  • A group of three or more petitioning workers,
  • A union official/representative (Washington State Labor Council) can provide technical assistance upon request),
  • A company official, such as the human-resource manager, or
  • One-Stop operators or partners, including state workforce agencies, or the state dislocated-worker unit.

How long does the Department of Labor take to make a decision on a certification?
Generally, 40 days after receiving a petition, the U.S. Department of Labor will make a final determination on whether or not the eligibility requirements have been met for TAA certification.

After receiving a TAA petition, Department of Labor investigators analyze facts contributing to the workers' layoffs or work reductions in order to determine if eligibility requirements are met.

How does a petitioner appeal a negative determination of TAA eligibility?
Affected workers may request administrative reconsideration by the U.S. Department of Labor.  Requests for reconsideration must:

  • Be in writing,
  • Include the TAA investigation number,
  • Describe the job responsibilities affected for the group of workers included in the petition, and,
  • Cite reasons why the workers consider the denial erroneous according to the facts, the interpretation of the facts, or the law itself.

Reconsideration requests must be mailed within 30 days of Federal Register publication to:
      United States Department of Labor
      Employment and Training Administration
      Division of Trade Adjustment Assistance
      Room C-5311, 200 Constitution Avenue, N.W.
      Washington, DC 20210
      Phone: 202-693-3560
      Fax: 202-693-3584 or 3585
      Web site: U.S. Department of Labor

How are workers notified when their company becomes Trade-Act certified?
The U.S. Department of Labor will directly notify the petitioner, the company and the state agency of its final decision regarding TAA certification.

To begin the process, workers identified by the employer will be notified by mail about a Trade Act orientation scheduled locally. At this orientation, Employment Security Department Trade Act staff will provide a complete overview of the program, describe the services available and answer any questions.

When did the Trade and Globalization Adjustment Act of 2009 take effect?
The Trade and Globalization Adjustment Act of 2009 took effect May 18, 2009. This new act expands the Trade Adjustment Assistance (TAA) program to communities, firms, service sector, farmers and fishing operations that are impacted by foreign trade.

Once certified and determined eligible, what re-employment services are available?
Re-employment services that may be available include:

  • Trade Adjustment Allowances (TRA).
  • Occupational skills training.
  • Re-employment services.
  • Job-search allowances.
  • Relocation allowances.
  • Health Coverage Tax Credit (HCTC).
  • Alternative Trade Adjustment Assistance (ATAA).

What is job-search allowance and how do I qualify?
When it is determined that the Trade Adjustment Assistance (TAA)-eligible worker cannot secure suitable employment within a local commuting area, they may be eligible for a job-search allowance. This allowance covers expenses incurred while seeking employment outside the normal commuting area. Job-search allowances reimburse 90 percent of the total costs of allowable travel and subsistence, or 45 percent of the federal per-diem rate for the area where you are job searching, whichever is less.

Important information and deadlines:
A job-search allowance application must be submitted before a job search begins. Applications may be submitted prior to certification, but will only be approved if the worker group is certified.

An application for a job-search allowance must be submitted either before the 365th day after the layoff or certification, or 182 days after the conclusion of training, whichever is later.

What is a relocation allowance and how do I qualify?
If a TAA worker obtains suitable employment in another area, they may be eligible for financial assistance to relocate to the new area. Relocation allowances may include 90 percent of the reasonable and necessary expenses of moving the worker, their family, and their household goods to the new location. The amount may be reduced if the worker is entitled to reimbursement from other sources. A worker may be eligible for a lump-sum payment equal to three times the worker's average weekly wage (but no more than $1,250) to help them relocate. 

Important deadlines:
Requests for relocation allowances must be submitted before the relocation begins. Applications may be submitted prior to certification, but will be approved only if the worker group is certified.

An application for a relocation allowance must be submitted before the 425th day after the layoff or certification, or 182 days after the conclusion of training, whichever is later.

What is the Health Coverage Tax Credit (HCTC)?
The Trade Adjustment Assistance (TAA) Reform Act of 2002 created a tax credit for the purchase of health insurance for TAA and Pension Benefit Guaranty Corporation (PBGC) candidates. The Internal Revenue Service (IRS) is responsible for implementing this credit under the HCTC program. For detailed information on HCTC, and a list of state-qualified health plans, visit the Internal Revenue Service's Web site.

HCTC reimburses 80 percent of the healthcare premiums paid by eligible individuals for qualified health insurance. The remaining 20 percent of the premium is paid by the eligible individual. HCTC is available only for qualified health insurance.

How do I qualify for the Health Coverage Tax Credit (HCTC)?
You may qualify for the HCTC if:

  • You are covered by qualified health insurance.
  • You are not claimed as a dependent on another individual's tax return.
  • You do not have other specified coverage, including Medicare.
  • You are not in a federal, state or local prison.

What kinds of TAA-approved training are available?
Allowable types of TAA training include classroom, on-the-job, customized and remedial.

What are the conditions for the approval of Trade Adjustment Assistance training?
The six criteria are:

  • There is no suitable employment for the worker.
  • The worker would benefit from appropriate training.
  • There is a reasonable expectation of employment following the training.
  • The training must be reasonably available to the worker.
  • The worker is qualified to obtain and complete the training, including having adequate financial resources available to complete the training when income support is exhausted.
  • The training is suitable and available at a reasonable cost. 

What costs may be included in training?
Training costs may include:

  • Tuition, required books, tools and fees. Medical insurance and desktop supplies are not included.
  • Subsistence allowances (actual cost or 50 percent of the federal per diem, whichever is less).
  • Transportation allowances (you may be eligible for this allowance if your training facility is outside the local commute for your area or in excess of 35 miles one way from home to training facility).

What is classroom training?
Classroom training is normally conducted in a classroom setting. Although the regulations do not give a specific definition of classroom setting, the usual meaning is that the training takes place in a school room where students can interact with an instructor.

What is on-the-job training?
On-the-job training means training provided by an employer to an individual who is employed by the employer.

What is customized training?
Customized training means the training is designed to meet the specialized requirements of an employer or group of employers. The training is conducted with a commitment by the employer or group of employers to employ the individual upon successful completion of the training. The employer pays at least 50 percent of the cost of training.

What is remedial training?
Remedial education provides training in the elementary skills every worker must have in order to achieve basic employability. Remedial education training should be considered pre-vocational; that is, it leads to occupational, on-the-job, or customized training that will equip the participant with specific job skills. Wherever practical, remedial education training should be conducted concurrently with the early parts of occupational training. Examples of remedial education are basic writing and mathematical skills training, English for Speakers of other Languages (ESoL), and courses leading to a General Education Diploma (G.E.D.).

What are Trade Readjustment Allowances?
Trade Readjustment Allowances (TRA) is income support and is defined in two categories: Basic TRA and Additional TRA. Each category has its own set of eligibility requirements:

  • Basic TRA may be payable if the worker is enrolled or participating in TAA training, has completed such training or has obtained a waiver of such training requirement.
  • Additional TRA may be payable only if the worker is participating in TAA-approved training.

In general, certified workers may be eligible for 104 weeks of income support, usually allotted follows:

  • 26 weeks of state unemployment-insurance (UI) compensation.
  • An additional 26 weeks of basic TRA.
  • Up to an additional 52 weeks of TRA to assist the worker in completing a TAA training program. 

For each week an eligible worker participates in remedial education, he or she may be eligible for an extension of TRA benefits, up to a maximum of 26 weeks.

Important TRA deadlines:
Receiving TRA: Eligible workers must be enrolled in approved training or have a waiver of training within eight weeks of the petition certification date of 16 weeks from the most recent qualifying separation. To receive a waiver, specific criteria must be met.

Receiving additional TRA: Within 210 days of their layoff or from the date of certification, eligible individuals must have submitted a bonafide application for training.

How do I qualify for Trade Readjustment Allowances (TRA)?
To qualify for TRA you must:

  • Be covered by an approved TAA certification,
  • Be a worker laid off due to lack of work from a U.S. Department of Labor (USDOL), Trade Adjustment Assistance (TAA) certified (affected) employer on or after the impact date identified by USDOL, and prior to the expiration date of the certification,
  • Must have worked at least 26 weeks with wages of $30 or more with the import-affected firm or subdivision in the previous 52-week period, including the week of separation,
  • Be entitled to and have exhausted all rights to state or any other federal unemployment compensation benefits, and
  • Be enrolled in or have completed a TAA-approved training program or have a written waiver issued.

Can approved training be waived for basic TRA?
Under certain circumstances, eligible workers may be waived from participating in training and still receive Basic TRA. One of the following conditions must exist for training to be determined not feasible or appropriate, and thus, potentially waived: 

  • The worker will be recalled reasonably soon,
  • The worker has marketable skills for suitable employment and a reasonable expectation of employment in the foreseeable future,
  • The worker is within two years of eligibility for a pension or Social Security,
  • The worker is unable to participate in or complete training due to her or his health,
  • The immediate enrollment is not available, or
  • No training program is available.

Note: Waivers must be reviewed every 30 days. It is the responsibility of the affected worker and One-Stop staff to ensure the worker meets with a One-Stop representative within the waiver’s 30-day timeframe. Additional TRA is not payable during waiver period; the worker must be in training.

What is the duration and timeline of a training waiver?
An initial waiver can be approved for a maximum of six months.

What is Alternative Trade Adjustment Assistance (ATAA) and how do I apply?
ATAA provides an alternative assistance program for older workers certified eligible to apply for Trade Adjustment Assistance. The assistance is in the form of a wage subsidy for those re-employed before the last day of the 26th week to bridge a gap between their wage at separation and their new wage. ATAA is effective for petitions filed on or after August 6, 2003. The request must be made at the time the petition is filed.  Not all petitions will be eligible.

What is the application process for Alternative Trade Adjustment Assistance?
To apply for ATAA:

  • An ATAA application must be filed within two years of the first day of qualifying re-employment.
  • The worker must indicate that a choice has been made between Trade Adjustment Assistance
    and Alternative Trade Adjustment Assistance (ATAA).
  • Workers cannot switch to the TAA program once they begin receiving the ATAA supplement.
  • The receipt of the initial ATAA payment represents the individual's decision and voids their rights to retraining, allowances, and Trade Readjustment Assistance.

What are the ATAA eligibility requirements?
To be eligible for ATAA an individual must: 

  • Be at least age 50 at the time of re-employment.
  • Obtain re-employment by the last day of the 26th week after the worker's qualifying separation from the TAA/ATAA-certified employment.
  • Must not be expected to earn more than $50,000 annually in gross wages (excluding overtime pay) from the re-employment.
  • Be re-employed full time, as defined by law in the state where the worker is employed.
  • Not return to work for the employment from which the worker was separated.

Where can I find Trade Adjustment Assistance statutes and regulations?
Statutes: Trade Adjustment Assistance Reform Act of 2002, Public Law 107-210 (format: PDF) Trade Act of 1974 (as amended), United States Code, Title 19, Sections 2271-2331 (format: PDF), Congressional Statement of Purpose, "The purposes of this chapter are to provide adequate procedures to safeguard American industry and labor against unfair or injurious import competition, and to assist industries, firms, workers, and communities to adjust to changes in international trade flows." 19 U.S.C. 2102

Regulations: Trade Adjustment Assistance for Workers Under the Trade Act of 1974 Code of Federal Regulations, Title 20, Chapter 5, Part 617 (format: PDF), Purpose, "The [Trade Act of 1974] created a program to assist individuals, who became unemployed as a result of increased imports, to return to suitable employment. The [Trade Adjustment Assistance] program provides for re-employment services and allowances for eligible individuals. The regulations in the part 617 are issued to implement the Act." 20 CFR 617.2

Is there a U.S. Department of Labor Web site with additional information?
Workers who do not qualify for Trade Adjustment Assistance re-employment services and benefits may be eligible for services under the Workforce Investment Act Dislocated Worker Program, or other programs which may be accessible through a local One-Stop Career Center. Workers can find the One-Stop Career Center closest to them by calling (toll-free) 877-US2-JOBS (877-872-5627),  877-889-5627 (TTY), or by using America's Service Locator.