Rule2022-10693
Clarification Regarding Self-Employment in the Context of “Employment” for VET TEC Training Programs
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
May 24, 2022
Issuing agencies
Veterans Affairs Department
Abstract
The Department of Veterans Affairs (VA) provides notice of a policy advisory released on January 19, 2022, by VA's Education Service. The policy advisory clarifies VA's previous regulatory interpretation of "employment" and also explains when "self- employment" will be considered "employment" for the purpose of paying training providers participating in the Veterans Employment Through Technology Education Courses (VET TEC) training program.
Full Text
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<title>Federal Register, Volume 87 Issue 100 (Tuesday, May 24, 2022)</title>
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[Federal Register Volume 87, Number 100 (Tuesday, May 24, 2022)]
[Rules and Regulations]
[Pages 31428-31429]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-10693]
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DEPARTMENT OF VETERANS AFFAIRS
38 CFR Part 21
Clarification Regarding Self-Employment in the Context of
``Employment'' for VET TEC Training Programs
AGENCY: Department of Veterans Affairs.
ACTION: Notification of interpretation.
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SUMMARY: The Department of Veterans Affairs (VA) provides notice of a
policy advisory released on January 19, 2022, by VA's Education
Service. The policy advisory clarifies VA's previous regulatory
interpretation of ``employment'' and also explains when ``self-
employment'' will be considered ``employment'' for the purpose of
paying training providers participating in the Veterans Employment
Through Technology Education Courses (VET TEC) training program.
DATES: May 24, 2022.
FOR FURTHER INFORMATION CONTACT: Cheryl Amitay, Chief of Policy and
Regulations Team, Education Service (225), Veterans Benefits
Administration, Department of Veterans Affairs, 810 Vermont Avenue NW,
Washington, DC 20420, at 202-461-9800. This is not a toll-free number.
SUPPLEMENTARY INFORMATION: On August 16, 2017, Public Law 115-48, the
Harry W. Colmery Veterans Educational Assistance Act of 2017, was
signed into law. Section 116 of this Act, codified at 38 U.S.C. 3001
note, requires the Secretary of Veterans Affairs to carry out a pilot
program (commonly known as VET TEC) for 5 years to provide eligible
Veterans who are entitled to educational assistance under 38 U.S.C.
chapter 30, 32, 33, 34, or 35, or 10 U.S.C. chapter 1606 or 1607, with
the opportunity to enroll in high technology programs of education
intended to provide training and skills sought by employers in a
relevant field or industry. Under section 116(c)(2)(C) of Public Law
115-48, VA must pay 50% of the cost of providing a high technology
program of education to qualified providers upon ``employment'' of a
Veteran in a certain field of study. Also, under section 116(c)(5)(B),
VA is required to give preference to a qualified provider that offers
tuition reimbursement for students who do not find full-time
``meaningful employment'' in their field of study within 180 days after
completing their program.
Based on a review of employment information since the initial roll-
out of VET TEC, VA issued a policy advisory on January 19, 2022, titled
Clarification Regarding Self-Employment in the Context of
``Employment'' for VET TEC Training Programs Established under section
116 of Public Law 115-48, to clarify how self-employment satisfies the
meaning of ``employment'' for the purposes of determining whether VA
must pay qualified providers for training provided to Veterans and
selecting qualified providers. The advisory establishes objective
standards for determining under what circumstances VA will consider
self-employment to be employment and is intended to maximize economic
outcomes for VET TEC participants. The advisory states generally that
VA considers a person to be ``employed'' if that person performs
services for another individual and is compensated for such services.
It further states that the nature of the relationship may be that of an
employee/employer or contractor/client. More specifically, the advisory
states that ``employment'' includes the following:
<bullet> Establishing a new employee/employer relationship in a
career supported by the completed program of study; or,
<bullet> Promotion in the Veteran's current employee/employer
relationship in a career supported by the completed program of study;
or,
<bullet> Self-employment in a career supported by the completed
program of study.
With regard to clarifying the job certification requirements
surrounding what is deemed as acceptable and reasonable for the
reporting of employment, including self-employment (i.e., the minimum
standards for declaring a Veteran has obtained employment), the
advisory provides as follows:
The following documentation is required for payment of employment
certifications that claim any form of employment (both ``employment''
under section 116(c)(2)(C) and ``meaningful employment'' under section
116(c)(5)(B)):
<bullet> Contract Jobs. Reports of Contract Jobs must be at least 6
months in length.
<bullet> Salary or hourly wages.
<bullet> Hours worked per week. Employment must be full-time. There
is a minimum 30 hours per week requirement for all employment claims.
<bullet> Promotion in current job. Must be a monetary promotion. A
promotion is NOT simply a job title change without an increase in
salary.
<bullet> Offer letter and/or first pay stub. Documentation must be
official and display the official company letterhead.
``Self-Employment'' Criteria and Verification Regarding Self-Employment
VA supports self-employment and other entrepreneurial endeavors as
viable paths to achieving meaningful employment. However, training
providers should encourage students to explore all possible employment
prospects and opportunities, and should not direct students towards
self-employment as the primary option for employment. To ensure that
individuals electing to pursue employment through self-employment are
adequately equipped for success, the following documentation is
required for payment of employment certifications that claim any form
of self-employment:
<bullet> Proof of ownership of the business. These can include a
Federal Tax ID Number; Articles of Organization, or Articles of
Incorporation; copy of personal tax return with schedule C; a copy of
the Doing Business As declarations, etc. It may also include a state
tax ID Number or state business registration information.
<bullet> Copies of any valid personal licenses or certifications
required for business operations.
<bullet> A bill and payment from a client to show proof of
legitimate business transactions for the type of services being
provided and/or products sold; and
<bullet> Other documents: VA may request additional documentation
to support the claim if existing evidence provided is insufficient to
make a determination.
To avoid a conflict of interest, neither the training provider, its
subsidiaries, nor a parent company may become the client of the self-
employed VET TEC student.
Implementation of the new policy began on February 1, 2022, and it
is applicable to both VET TEC students and training providers,
regardless of when the student began or graduated from their program.
Compliance with the requirements specified in the new policy is part of
the annual approval or
[[Page 31429]]
reapproval process for training providers.
Signing Authority
Denis McDonough, Secretary of Veterans Affairs, approved this
document on May 11, 2022, and authorized the undersigned to sign and
submit the document to the Office of the Federal Register for
publication electronically as an official document of the Department of
Veterans Affairs.
Luvenia Potts,
Regulations Development Coordinator, Office of Regulation Policy &
Management, Office of General Counsel, Department of Veterans Affairs.
[FR Doc. 2022-10693 Filed 5-23-22; 8:45 am]
BILLING CODE 8320-01-P
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</html>Indexed from Federal Register on May 24, 2022.
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