Association secures continued flexibility in workforce development through Wagner-Peyser Act final rule

The Michigan Works! Association recently announced that Michigan will maintain its ability to deliver workforce development services under the Wagner-Peyser Act.

This decision, recently affirmed by the U.S. Department of Labor, permits Michigan to continue implementing innovative and flexible staffing models via local workforce development boards, a key element in delivering specialized workforce development services across the state.

The Wagner-Peyser Act, a cornerstone of the nation's labor market since 1933, mandates that states uphold Employment Service programs delivering essential services to job seekers and employers. The final USDOL rule, reinstates the requirement for states to employ state merit staff for program services. Additionally, Michigan, along with Colorado and Massachusetts, has been granted the opportunity to persist with alternative staffing models, a longstanding precedent that has been previously approved by USDOL.

"This rule is a testament to the effectiveness and innovation of Michigan's workforce service delivery," said Ryan Hundt, CEO of the Michigan Works! Association. "Our ability to retain the delivery mechanism for locally-responsive workforce development underlines our commitment to evolving and adapting our services to meet the diverse needs of Michigan's labor market."

The Michigan Works! system’s sustained status means continued flexibility in staffing, enabling a more tailored approach to workforce development. This adaptability is crucial for addressing specific local employment challenges and opportunities, ensuring that services are not only consistent and high-quality but also nuanced and community-specific.

"We are excited to continue our work with innovative staffing models that have proven successful in connecting job seekers with meaningful employment opportunities and supporting employers in finding the talent they need," added Marisue Moreau, director with Michigan Works! Northeast Consortium. "This ruling allows us to further our mission in delivering effective and responsive workforce solutions across Michigan."

In April 2022, the USDOL proposed a rule that would remove Michigan’s longstanding workforce delivery model, with the potential to drastically reduce services to job seekers and employers throughout the state. As a result of the proposed rule, the Michigan Works! Association engaged with the state’s congressional delegation to maintain a successful model of integration and positive impact. A statement of support issued in June 2022 received support from more than 1,600 individuals across Michigan.

“I am pleased that the finalized Wagner-Peyser rule continues to allow Michigan to partner with a network of Michigan Works! centers to administer employment services that meet specific local and regional workforce needs,” said U.S. Senator Gary Peters. “I advocated for this flexibility to ensure that the regional and integrated workforce development system can continue to use innovative approaches to benefit both job seekers and employers.”

As part of the final rule, Michigan must participate in a rigorous evaluation of these staffing models, contributing valuable insights into the efficacy of various approaches to labor exchange services. This initiative aligns with the system’s ongoing efforts to advance workforce development strategies and uphold the highest service delivery standards. The rule is effective 60 days post-publication in the Federal Register.

Established in 1987, the Michigan Works! Association fosters high-quality employment and training programs serving employers and workers by providing support activities and a forum for information exchange for Michigan's talent development system. For additional information, visit www.michiganworks.org.