20 CFR § 683.500 - What is a Workforce Innovation and Opportunity Act Pay-for-Performance contract strategy?
---
identifier: "/us/cfr/t20/s683.500"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "20 CFR § 683.500 - What is a Workforce Innovation and Opportunity Act Pay-for-Performance contract strategy?"
title_number: 20
title_name: "Employees' Benefits"
section_number: "683.500"
section_name: "What is a Workforce Innovation and Opportunity Act Pay-for-Performance contract strategy?"
chapter_name: "EMPLOYMENT AND TRAINING ADMINISTRATION, DEPARTMENT OF LABOR"
part_number: "683"
part_name: "ADMINISTRATIVE PROVISIONS UNDER TITLE I OF THE WORKFORCE INNOVATION AND OPPORTUNITY ACT"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "Secs. 102, 116, 121, 127, 128, 132, 133, 147, 167, 169, 171, 181, 185, 186, 189, 195, 503, Public Law 113-128, 128 Stat. 1425 (Jul. 22, 2014)."
regulatory_source: "81 FR 56410, Aug. 19, 2016, unless otherwise noted."
cfr_part: "683"
---
# 683.500 What is a Workforce Innovation and Opportunity Act Pay-for-Performance contract strategy?
(a) A WIOA Pay-for-Performance contract strategy is a specific type of performance-based contract strategy that has four distinct characteristics:
(1) It is a strategy to use WIOA Pay-for-Performance contracts as they are described in § 683.510;
(2) It must include the identification of the workforce development problem and target populations for which a local area will pursue a WIOA Pay-for-Performance contract strategy; the outcomes the local area would hope to achieve through a Pay-for-Performance contract relative to baseline performance; and the acceptable cost to government associated with achieving these outcomes;
(3) It must include a strategy for independently validating the performance outcomes achieved under each contract within the strategy prior to payment occurring; and
(4) It must include a description of how the State or local area will reallocate funds to other activities under the contract strategy in the event a service provider does not achieve performance benchmarks under a WIOA Pay-for-Performance contract.
(b) Prior to the implementation of a WIOA Pay-for-Performance contract strategy, a local area must conduct a feasibility study to determine whether the intervention is suitable for a WIOA Pay-for-Performance contract strategy.
(c) The WIOA Pay-for-Performance contract strategy must be developed in accordance with guidance issued by the Secretary.