Alternative Trade AdjustmentAssistance (ATAA)Demonstration Project

Established by the Trade AdjustmentAssistance Reform Act of 2002

What is ATAA?

ATTA is a program that provides eligibleindividuals over the age of 50 who obtainnew employment within 26 weeks of theirseparation with a wage subsidy to helpbridge the salary gap between their old andnew employment when retraining may notbe appropriate. To receive ATAA benefits,workers must be TAA and ATAA certified.

ATAA Benefits

The State shall pay, for a period not to exceed 2years, 50 percent of the difference between:– the wages received by the worker from

reemployment, and– the wages received by the worker at the time

of separation.ATAA payments made to a worker may notexceed $10,000 per worker during the 2-yeareligibility period.

ATAA Benefits

An ATAA participant who is receiving anATAA benefit is eligible to receive, for aperiod not to exceed 2 years, a credit forhealth insurance costs and relocationallowances.Workers who begin receiving payments underATAA cannot receive TRA payments,training and job search allowances.

What Firms are Eligible for ATAA?

In determining whether to certify a group ofworkers as ATAA eligible the Secretaryfirst determines that all of the criteria for aregular TAA certification are met and shallconsider the following additional criteria:Whether a significant number of affectedworkers in the workers’ firm are 50 years ofage or older;

What Firms are Eligible for ATAA?

Whether the affected workers in theworkers’ firm possess skills that are noteasily transferable to other employment;andThe competitive conditions within theaffected workers’ industry are adverse.

Who is Eligible for ATAA?

A worker who the Secretary of Labor has certified aseligible for the TAA/ATAA program may elect toreceive benefits under ATAA if the worker:obtains reemployment by the last day of the 26thweek after the date of separation from theadversely affected employment at wages less thanthose earned in adversely affected employment;is at least 50 years of age at the time ofreemployment; and

Who is Eligible for ATAA (continued)?

earns $50,000 or less a year in wages fromreemployment; andis employed on a full time basis (35 hours perweek or more). Employment may be with morethan one employer;does not return to the employment from which theworker was separated (cannot return to the samedivision/facility separated from, nor do the sameor similar work for the employer in anotherdivision/facility.

When does ATAA Begin and End?

Implementation Date - ATAA is effective forpetitions filed on or after August 6, 2003.Termination Date - No ATAA payments may bemade by a State after the date that is 5 years afterthe date on which such program is implemented bythe State.Exception - A worker receiving ATAA payments onthe termination date shall continue to receive suchpayments provided that the worker meets theeligibility criteria.

Option Preservation

While a worker is seeking employment toqualify for ATAA, we must ensure thatregular TAA deadlines are met and optionsare preserved. The worker must either havea waiver of the training requirement,or beenrolled in approved training by either:

the last day of the 8th week afterissuance of the relevant certificationcovering the worker; or

Option Preservation

the last day of the 16th week after theworker’s most recent qualifyingseparation, whichever is later.

If the worker’s preferred option is the ATAAprogram, the worker should be encouraged totake advantage of reemployment services toassist him/her to return to work within 26weeks of his/her qualifying separation.

Waivers of Training

Training may be waived if it is not feasible orappropriate because of 1 or more of thefollowing:

1. Recall-the worker has been notified that he/shewill be recalled by the firm from which theseparation occurred.

2. Marketable skills-the worker possessesmarketable skills for suitable employment, andthere is a reasonable expectation of employmentat equivalent wages in the foreseeable future.

Waivers of Training3. Retirement-the worker is within 2 years of meeting

all requirements for either: old-age insurancebenefits under title II of the Social Security Act; or aprivate pension sponsored by an employer or labororganization.

4. Health-the worker is unable to participate intraining due to their health, except that a waiverunder this subparagraph shall not be construed toexempt a worker from requirements relating to theavailability for work, active search for work, orrefusal to accept work under Federal or Stateunemployment laws.

Waivers of Training

5. Enrollment unavailable-the first availableenrollment date for the approved training iswithin 60 days after the date of thedetermination, or, if later, there are extenuatingcircumstances for the delay in enrollment.

6. Training not available-approved training is notreasonably available to the worker from eithergovernmental agencies or private sources, nosuitable training for the worker is available at areasonable cost, or no training funds areavailable.

Rapid Response Activities

Immediate and ongoing dissemination ofinformation on TAA, HCTC, and ATAA,including early intervention measures prior to& following layoff notices.Distribution of available printed information.Presentations regarding TAA, HCTC, andATAA to employer and communityorganizations.

Field Office Activities

Provide ATAA information at BRI sessionAssist ATAA certified individuals to preservetheir options until reemployedObtain ATAA initial applications andsupporting documentationSend ATAA application and supportingdocuments to Program Support Trade Act Unitfor review, approval, and monthly paymentprocessing

Central Office Activities

Receive and review initial applications andsupporting documentation from Field OfficesIssue approval, or denial of ATAA eligibility& notify ATAA eligible of procedures torequest monthly payments anddocumentation requirements or appeal rightsReceive and process monthly paymentrequests and documentation

Central Office Activities

Assess ATAA continuing eligibilityCalculate ATAA annualized wages atseparation and reemployment, and ATAApayment amountProcess and account for ATAA paymentsReport to U.S. DOL on ATAA programDevelop and distribute ATAA forms andother information

ATAA Required Documentation by Criterion

Criteria Documentation1. Be at least 50 at time ofreemployment

Drivers License, birth certificate orother appropriate documentation

2. Obtain reemployment by the lastday of the 26th week after theworker’s qualifying separation fromTAA/ATAA certified employment

Verify with a job offer letter ,paycheck stub or statement fromemployer

3. Must not be expected to earn morethan $50,000 annually in gross wages(excluding overtime pay) from thereemployment

Copy of job offer letter, paycheckstub or a statement from employerindicating that annual wages will notexceed $50,000

4. Be reemployed full-time (35 hrs.per week)

Paycheck stub or statement fromemployer

5. Cannot return to the employmentfrom which the worker was separated.

N/A

ATAA Application Process

The ATAA application must be filed within 2years of the first day of qualifyingreemployment.The worker must sign a statement on theapplication indicating that a “choice” has beenmade and that he/she understands that he/shecannot subsequently switch to the TAA programonce he/she begins receiving the ATAAsupplement.

ATAA Application Process

Receipt of the initial ATAA paymentrepresents the individual’s decision to chooseATAA and voids the participants rights toretraining, allowances, and TRACorrespondingly, once a worker has enrolledin training, he/she forfeits his/her right toATAA participation.

ATAA Application Process

Field office staff distribute ATAAapplication and fact sheet at BRIATAA applicant visits field office to submitcompleted ATAA application anddocumentationThe State TAA Coordinator will issue awritten determination of ATAA applicanteligibility for ATAA payments within 5working days of receiving the application.

ATAA Application Process

The ATAA applicant has the right to appeal astate determination which denied ATAAbenefits in the same manner as provided forin state law for TRA determinations.The ATAA eligibility determination datewhich establishes the 2-year period duringwhich ATAA benefits can be paid will be thedate of the first qualifying reemployment.

Continuing Eligibility

Individuals who continue to meet theeligibility criteria are paid ATAA benefits untila total of $10,000 in benefits has beenreceived, or a period of 2-years has elapsedsince their first qualifying reemployment,whichever occurs first.An individual may work for differentemployers within the 2-year period.Employment is not required to be consecutive.

Continuing EligibilityATAA benefits are not payable during periodsof unemployment (1 full week without wages).If there is a period of unemployment, workerswill need to complete a new IndividualApplication for ATAA upon reemployment.The worker would be eligible for the remainingATAA benefits to which he/she is entitled. The2-year eligibility period continues to run fromthe date of the first qualifying reemployment.

Continuing EligibilityIf the worker has more than one job, theemployment must be at least 35 hours per week.The wages from this employment (all jobs) willbe included in the calculation to determine ifthe worker is expected to reach the $50,000annual limit for reemployment wages.Each ATAA certified worker must visit a localoffice in person to provide information anddetermine initial ATAA individual eligibility.

Continuing Eligibility

Continuing eligibility will be assessed monthly byUI Technical Unit staff. The worker will provideto the UI Technical Unit, by mail, or by fax,verification of employment and wages. Thetelephone may not be used for this purpose.Once approved, an ATAA payment will be issued.The worker will receive payment for the precedingmonthly period, therefore, the worker will notreceive payment until after the initial month hasbeen verified.

ATAA Payments

ATAA payments occur for a period not toexceed 2 years or $10,000 whichever occursfirst.ATAA pays 50 percent of the differencebetween:– the wages received by the worker from

reemployment; and– the wages received by the worker at the time

of separation.

ATAA Payments

When calculating the ATAA payment, therecipient’s wages must be annualized on amonthly basis to assure that the recipient’sannual wages do not exceed $50,000.Annual wage calculations will include alljobs in which the worker is employed andconstitute at least full-time employment(includes full and part-time work)

Annualized Wages at Separation

Annualized wages at separation are defined as theannualized hourly rate at the time of the mostrecent qualifying separation. The annualizedwages are computed by multiplying the worker’shourly rate received during the last full week ofher/her employment by the number of hours theindividual worked during the last full week ofemployment and multiplying that number by 52.Overtime wages and hours are excluded from thecalculation.

Annualized Wages atReemployment

Annualized wages at reemployment are defined asthe annualized hourly rate for the first full week ofreemployment. The annualized wages arecomputed by multiplying the worker’s hourly ratereceived during the first full week of her/herreemployment by the number of hours theindividual worked during the first full week ofreemployment and multiplying that number by 52.Overtime wages and hours are excluded from thecalculation.

Wage Calculation Methodology

The calculated monthly allotment will be derivedas follows:Annualized Separation Wages minus AnnualizedReemployment Wages divided by 2 equals 50%of the difference between the two periods ofwages.50% of the difference between the two periodsof wages divided by 12 equals the monthlyATAA wage subsidy.

Wage Calculation Methodology

If, as a result of the monthly verificationexercise, the ATAA participant’s hourlywage and/or hours have changed so as toaffect the ATAA wage subsidy, thecalculation will be repeated and the ATAApayment will be adjusted accordingly.

Wage Calculation Example

Step 1 - Compute Annualized Wage at SeparationThe worker’s hourly rate is $18.00 during hislast full week of employment.He worked 40 hours per week during his last fullweek of employment.Compute annualized wage at separation ($18.00X 40 hours = $720 weekly wage X 52 weeks ina year = $37,440 annualized wage at separation)

Wage Calculation Example

Step 2 - Compute annualized wages at reemploymentThe worker’s hourly rate at reemployment is$10.00.He worked 40 hours per week during his first fullweek of reemployment.Compute annualized wage at reemployment($10.00 X 40 hours = $400 weekly wage X 52weeks in a year = $20,800 annualized wage atreemployment

Wage Calculation Example

Step 3 - Calculate Monthly Allotment$37,440 (annualized separation wages)minus $20,800 (annualized reemploymentwages)=$16,640 divided by 2 =$8,320which equals 50% of the difference betweenthe two periods of wages.Divide $8,320 by 12 months =$693.33monthly ATAA allotment