[Code of Federal Regulations]
[Title 20, Volume 3]
[Revised as of April 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 20CFR632.81]

[Page 297]
 
                      TITLE 20--EMPLOYEES' BENEFITS
 
 CHAPTER V--EMPLOYMENT AND TRAINING ADMINISTRATION, DEPARTMENT OF LABOR
 
PART 632--INDIAN AND NATIVE AMERICAN EMPLOYMENT AND TRAINING PROGRAMS--Table of Contents
 
                Subpart E--Program Design and Management
 
Sec. 632.81  Payments to participants.

    (a) General. Each participant paid wages for employment activities, 
allowances for classroom training or reimbursed for OJT or tryout 
employment will be provided such benefits pursuant to section 142 of the 
Act.
    (b) Maximum wage rates for CSE. (1) The wages (including those 
received from overtime work and leave taken during the period of 
employment) paid to any CSE participant from funds under the Act shall 
be limited to a full-time rate of $10,000 per year (or the hourly, 
weekly, or monthly rate which, if full-time and annualized, would equal 
a rate of $10,000 per year). Approved rates above $10,000 are fixed at 
the CETA approved rate as of September 30, 1982, unless adjusted by the 
Secretary.
    (2) Fringe benefits payable from funds under the Act to any CSE 
participant may not exceed those regularly afforded to similarly 
employed non-JTPA workers.
    (3) Davis-Bacon wages. All laborers and mechanics employed by 
contractors or subcontractors in any construction, alteration, or 
repair, including painting and decorating, of projects, buildings, and 
works which are federally assisted under this Act, shall be paid wages 
at rates not less than those prevailing on similar construction in the 
locality as determined by the Secretary in accordnace with the Act of 
March 3, 1931, popularly known as the Davis-Bacon Act, and the 
implementing regulations in 29 CFR parts 1, 3, 5, and 7.
    (c) Payment of allowances. (1) A basic hourly allowance for 
regularly enrolled classroom training or services participants shall not 
exceed the higher of the State or Federal minimum hourly wage.
    (2) Native American grantees are encouraged to submit allowance 
payment designs which are less than in paragraph (c) (1) of this 
section. Through innovative reimbursement systems the number of 
participants should be maximized. The allowance payment system will be 
described in the Master Plan and as an option may include dependent 
allowances.
    (3) Repayments. Native American grantees shall require participants 
to repay the amount of any overpayment of allowances under this part, 
except if the overpayment was made in the absence of fault on the part 
of the participant. Where the Native American grantee requires 
repayment, any overpayment not repaid may be set off against any future 
allowance or other payments under the Act to which the participant may 
become entitled.
    (d) Combined activities. A primary activity is one in which a 
participant is enrolled for more than 50 percent of scheduled time. 
Participants enrolled in a primary activity for which wages are payable 
and simultaneously in an activity for which allowances are payable may, 
at the Native American grantee's option, be paid wages for all hours of 
participation. A participant enrolled in a primary activity for which 
allowances are payable may, at the Native American grantee's option, be 
paid allowances for all hours of participation, except when OJT is the 
non-primary component. However, in the latter case, before placing an 
individual in such an activity, the Native American grantee shall 
request a determination from the Internal Revenue Service as to whether 
income from the non-primary component is taxable.

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