State of Wisconsin
Department of Children and Families
Sanctions in the Wisconsin Works Program
The Wisconsin Department of Children and Families proposes an order to repeal and recreate s. DCF 101.21 and to create ss. DCF 101.03 (26m) and 101.195, relating to sanctions in the Wisconsin works program. Analysis Prepared by the Department of Children and Families
Explanation of Agency Authority
Section 49.1515 (1), Stats., as created by 2009 Wisconsin Act 28 and affected by 2015 Wisconsin Act 55, provides that the department shall by rule specify guidelines for determining when a Wisconsin works participant, or a second parent in the participant’s Wisconsin works group who is subject to a work requirement, is demonstrating a refusal to participate in the Wisconsin works program. Section 49.151 (1c) and (1m), Stats., as affected by 2015 Wisconsin Act 55, provides that a participant who refuses to participate as determined under guidelines promulgated by the department under s. 49.1515 (1), Stats., in any Wisconsin works employment position is ineligible to participate in the Wisconsin works program for 3 months. A participant is also ineligible if a second parent who is required to work under the 2-parent family requirement in s. 49.15 (2), Stats., refuses to participate as required. A participant or a second parent who is required to work refuses to participate if the participant or second parent, without good cause: - Fails to appear for an interview with a prospective employer,
- Fails to appear for an assigned work activity,
- Voluntarily leaves appropriate employment or training, or
- Voluntarily leaves a work experience site.
The participant or a second parent who is required to work also refuses to participate if the participant or second parent:
- Is discharged from appropriate employment or training for cause,
- Is discharged from a work experience site for cause, or
- Demonstrates through other behavior or action, as specified by the department by rule, that the participant or second parent refuses to participate in a Wisconsin works employment position.
Section 49.153 (1), Stats., as affected by 2015 Wisconsin Act 55, provides that before taking any action against a participant that would result in a 20 percent or more reduction in the participant’s benefits or in termination of the participant’s eligibility to participate in the Wisconsin works program, a Wisconsin works agency shall do all of the following: (a) Provide to the participant written notice of the proposed action and of the reasons for the proposed action.
(c) After providing the notice under par. (a), allow the participant a reasonable time to rectify the deficiency, failure, or other behavior to avoid the proposed action.
Section 49.153 (1m), Stats., as created by 2015 Wisconsin Act 55, provides that a Wisconsin works agency is not required to comply with the notice requirements under sub. (1) if the action taken is the result of the participant no longer meeting eligibility criteria as specified under s. 49.145 (2) (a), (b), (c), (d), (g), (i), (j), (m), (q), (r), or (rm) or (3), Stats. Section 49.153 (2), Stats., as created by 2005 Wisconsin Act 25 and affected by 2011 Wisconsin Act 32, provides that the department shall promulgate rules that establish procedures for the notice under sub. (1) (a) and that define “reasonable time” for the purpose of sub. (1) (c). Summary of the Proposed Rules
DCF 101.195, Notice before Taking Certain Actions
The proposed s. DCF 101.195 describes the notice that must be provided to Wisconsin works program participants prior to taking action to reduce benefits of 20 percent or more or to terminate eligibility to participate in the Wisconsin works program and provides a definition of the “reasonable time” participants must be allowed to rectify the deficiency, failure, or behavior in order to avoid the proposed action. DCF 101.21, Refusal to Participate
The proposed s. DCF 101.21 provides guidelines for determining when a participant, or second parent in the participant’s Wisconsin works group, who engages in behavior specified in s. 49.151 (1m) (a) to (f), Stats., is demonstrating a refusal to participate. The proposed s. DCF 101.21 (1) (d) defines other behavior or action by the participant or second parent that demonstrates a refusal to participate in a Wisconsin works employment position under s. 49.151 (1m) (f), Stats. The definition of “misconduct” is based on the definition for the term for unemployment insurance under s. 108.04 (5), Stats. Summary of Factual Data and Analytical Methodologies
The rules were developed with the assistance of the Wisconsin works agencies administering the Wisconsin works program under the department’s 2013-2016 contracts. Agencies offered examples and definitions of behaviors under the control of the participant or individual that agencies have observed that demonstrate a refusal to participate in program activities designed to prepare the participant or individual for employment.
Summary of Related Federal Requirements
45 CFR §261.10 provides that a “parent or caretaker receiving assistance must engage in work activities when the State has determined that the individual is ready to engage in work or when he or she has received assistance for a total of 24 months, whichever is earlier.” 45 CFR §261.14 provides that “if an individual refuses to engage in work required under section 407 of the [Social Security] Act, the State must reduce or terminate the amount of assistance payable to the family, subject to any good cause or other exceptions the State may establish.” The State is required, at a minimum, to “reduce the amount of assistance otherwise payable to the family pro rata with respect to any period during the month in which the individual refuses to work”, and it “may impose a greater reduction, including terminating assistance.” That section further provides that “a State that fails to impose penalties on individuals in accordance with the provisions of section 407(e) of the Act may be subject to the State penalty specified at §261.54.” The referenced penalty in §261.54 is “between one and five percent of the adjusted SFAG [State Family Assistance Grant].” In Wisconsin, this penalty would equal between $2,356,736 and $11,783,680. In addition to requiring States to impose a penalty on individuals who refuse to engage in work, the federal regulations also require states to meet performance standards for the percentage of total families and of two-parent families that are engaged in work. These standards are designed to hold states accountable for complying with the work requirements, and they measure a state’s “success in requiring work-eligible individuals to participate in work activities.” 45 CFR §261.20 (b). Penalizing individuals who refuse to work is required in order for a state to meet the work participation rate. States that meet the work participation rate are rewarded by a decrease from 80% to 75% of the “historic state expenditures” it is required to maintain under Temporary Assistance for Needy Families (TANF). States that do not meet the work participation rate may also be subject to a base penalty of 5% of the adjusted SFAG, the amount of the basic TANF block grant allocated to each eligible State. If a state remains out of compliance, an additional 2% is added to the base penalty for each consecutive year of noncompliance thereafter up to a total penalty of 21% of the adjusted SFAG. 45 CFR §261.50. The work participation rate generally measures the percentage of families with a work-eligible individual that “participates in work activities during the month for at least a minimum average of 30 hours per week.” 45 CFR §261.31. There is a lower 20 hour per week requirement for families with a child under age 6. While a state can improve its rate through good case management decisions in assigning appropriate activities and by offering a robust array of high quality activities that are countable, it must also impose a penalty on individuals who refuse to participate in assigned activities without good cause. For the first time, Wisconsin did not meet the work participation rate in Federal fiscal year 2012, and to avoid imposition of the 5% penalty, it proposed a corrective action plan to come into compliance. One of the requirements of the corrective action plan is that Wisconsin will make stronger efforts to require work-eligible individuals to engage in work. The proposed modifications to these rules are a key part of the State’s compliance efforts. Comparison to Rules in Adjacent States
