Washington, D.C. –Congressman Rick Berg announced that provisions based on the HIRES Act, Berg’s proposal to provide states with more flexibility in the use of unemployment funds, were passed today by the House and Senate as a component of the Middle Class Tax Relief and Job Creation Act of 2012. 

“In North Dakota, we know that Washington’s one-size-fits-all approach to addressing the challenges facing our nation and our economy haven’t worked,” Berg stated. “With the nation’s lowest rate of unemployment, North Dakota is a clear example of how a common sense and innovative approach to reemployment can help get people back to work.  The HIRES provision will provide states with much-needed flexibility and empowers them to individualize efforts to help the long-term unemployed get back to work.”

The legislation, which also extends the middle class payroll tax cut and protects seniors’ access to their doctors through a “doc fix,” passed with strong bipartisan support in both the House and Senate and now goes to President Obama to be signed into law.   The conference report passed through the House by a vote of 293- 132 and the Senate by a vote of 60-36, including North Dakota’s two Senators.

“As we work to leave a better future to the next generation, we must work toward solutions that strengthen the economy and help Americans get back to work,” Berg noted. “The agreement passed by the House and Senate today prevents a tax increase on every American worker, protects seniors’ access to their doctors, and repeals and defunds key Obamacare provisions.”

Berg’s HIRES Act would help get Americans back to work by giving states the opportunity to pursue options that would expedite the reemployment of individuals who currently receive unemployment compensation.   The provision would allow states to best serve the needs of their unique populations by permitting up to 10 states to apply for waivers to test a demonstration project designed to expedite reemployment of unemployment insurance (UI) recipients.

At a Ways and Means hearing in October, Berg was joined by Maren Daley, Executive Director of Job Service North Dakota, who testified before the Subcommittee, to press for long-term solutions to provide certainty to those seeking employment and allow states to innovate in their reemployment efforts. 

Daley outlined North Dakota’s reemployment practices, emphasizing that flexibility, rather than a one-size-fits-all approach, was the key to North Dakota’s success in assisting the long-term unemployed. “I see a need for even greater state flexibility in relation to reemployment activities,” Daley had stated. “Each state is unique and has varying needs. I would also note that each state has great expertise in assisting individuals in gaining employment, but we are often confined to one-size fits all or one-size fits most approaches.”

How does the HIRES Act work?

• To apply for a waiver under the HIRES Act, the State would apply to the Secretary of Labor with the details regarding proposed demonstration, goals of reemployment program, rationale behind waiver request, and proof that the waiver will not increase costs from the state UI trust fund
• Waivers can last up to three years, subject to extension by request
• The Secretary of Labor must notify state of approval or denial of request within 30 days of receipt.  Any application not denied within those 30 days is deemed approved

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