20 CFR § 683.540 - What is the State's role in assisting local areas in using Workforce Innovation and Opportunity Act Pay-for-Performance contract strategies?
---
identifier: "/us/cfr/t20/s683.540"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "20 CFR § 683.540 - What is the State's role in assisting local areas in using Workforce Innovation and Opportunity Act Pay-for-Performance contract strategies?"
title_number: 20
title_name: "Employees' Benefits"
section_number: "683.540"
section_name: "What is the State's role in assisting local areas in using Workforce Innovation and Opportunity Act Pay-for-Performance contract strategies?"
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: "2026-04-05"
last_updated: "2026-04-05"
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"
---
# 683.540 What is the State's role in assisting local areas in using Workforce Innovation and Opportunity Act Pay-for-Performance contract strategies?
(a) Using funds from the Governor's Reserve the State may:
(1) Provide technical assistance to local areas including assistance with structuring WIOA Pay-for-Performance contracting strategies, performance data collection, meeting performance data entry requirements, and identifying levels of performance.
(2) Conduct evaluations of local WIOA Pay-for-Performance contracting strategies, if appropriate.
(3) Conduct other activities that comply with limitations on the use of the Governor's Reserve.
(b) Using non-Federal funds, Governors may establish incentives for Local WDBs to implement WIOA Pay-for-Performance contract strategies as described in this subpart.
(c) In the case of a State in which local areas are implementing WIOA Pay-for-Performance contract strategies, the State must:
(1) Collect and report to the Department data on the performance of service providers entering into WIOA Pay-for-Performance contracts, measured against the levels of performance benchmarks specified in the contracts, pursuant to sec. 116(d)(2)(K) of WIOA and § 677.160 of this chapter and in accordance with any additional guidance issued by the Secretary.
(2) Collect and report to the Department State and/or local evaluations of the design and performance of the WIOA Pay-for-Performance contract strategies, and, where possible, the level of satisfaction with the strategies among employers and participants benefitting from the strategies, pursuant to sec. 116(d)(2)(K) of WIOA and § 677.160 of this chapter, and in accordance with any guidance issued by the Secretary.
(3) Monitor local areas' use of WIOA Pay-for-Performance contract strategies to ensure compliance with § 683.500 and the contract specifications in § 683.510, and State procurement policies.
(4) Monitor local areas' expenditures to ensure that no more than 10 percent of a local area's adult and dislocated worker allotments and no more than 10 percent of a local area's youth allotment is reserved and used on WIOA Pay-for-Performance contract strategies.
(d) The Secretary will issue additional guidance on State roles in WIOA Pay-for-Performance contract strategies.