Employment SR 05-20, 02/05 (FAM-A) |
Employment is an activity in which:
• there is the receipt of unsubsidized wages for services performed by an individual in the public or private sector; or
• the individual is engaged in self-employment for profit*.
General Activity Requirements
When an employed individual remains eligible for financial assistance:
• the NHEP team continues to work with the individual to provide case management and support services, with the goal of assisting the participant in reaching financial independence;
• NHEP services continue until the participant becomes independent from financial assistance;
• the team member must maintain monthly or quarterly contact, as specified on the Employment Plan (EP) and depending upon the number of hours the participant is employed per week, to assess what services are most appropriate to support the individual’s career and personal goals; and
• the individual must participate in approved NHEP activities and related support services as specified on the EP.
Apply sanctions for failure or refusal to follow through with or comply with general activity requirements. See Section 808.35, Sanctions for Voluntary Quit Or Failure/Refusal to Cooperate with NHEP Work Program Participation Requirements, for sanction policy.
Self-Employment
Individuals engaged in self-employment activities are considered to be in the NHEP employment activity, and the hours worked in the self-employment activity count toward the work participation requirement.
*
Time Limits
There are no set time limits on the employment activity. However, the team member:
• is responsible for reviewing with the participant the advantages and disadvantages of continued receipt of financial assistance while employed, considering the 60-month lifetime limit; and
• must evaluate the effectiveness of the work activity or activities in moving the individual towards financial independence while considering the time the individual has already participated in the activity and/or the remaining months on the individual’s TANF lifetime limit clock.
*
Support Services
Employed individuals who remain eligible for financial assistance may be reimbursed for:
• transportation assistance, including mileage reimbursement to and from the child care provider and the employment site, and auto repairs, from the day of the month in which they obtain employment through the following 3 calendar months;
• fees and supplies; and
• child care.
Monitoring and Evaluating an Employment Activity
Consider the following when monitoring and evaluating an employment activity’s effectiveness in moving the individual towards financial independence:
• months on the TANF 60-month lifetime limit clock;
• hours worked in the activity;
• net profits;
• length of time involved in the activity (hours per week, months in the year, years engaged in the activity without reaching financial independence);
• measurable progress over time toward the goal of transitioning off TANF financial assistance; and
• other participant or family issues.
If it is determined that an individual is not making satisfactory progress in an employment activity:
• the hours are no longer countable towards meeting the participation requirement;
• the individual must participate in other approved NHEP activities to meet participation requirements; and
• the EP must be revised accordingly.
See Section 808.17, Assessment, for more information about monitoring and evaluating satisfactory progress in an NHEP activity.
Example: An NHEP recipient has been self-employed as a house painter and dry wall installer since 1986. A participant action step on his EP referred him to an agency specializing in self-employment to develop a business plan, but he has failed to complete this step. The recipient’s Schedule C from his 2003 tax return shows a monthly net profit of $139.42. He did not provide a copy of his 2004 tax return. The recipient claims to be working 20 hours weekly, but is unwilling to increase his hours as dictated by his EP. He is at month 48 of his TANF clock.
The NHEP recipient has failed to:
• provide current information from his 2004 tax return to evaluate his most recent year of self-employment;
• increase his hours from 20, and is therefore not meeting the full participation requirement of 30 hours; and
• follow through with obtaining a viable business plan as directed by his EP.
The recipient is non-compliant with his EP in several areas and must be issued a notice of non-compliance followed by a sanction, if all noncompliance factors are not remedied timely. Since the recipient has been engaged in this self-employment business activity for 19 years and his monthly net profit in 2003 is $139.42, an amount that cannot sustain his family, it is clear that he is not making satisfactory progress in his self-employment activity. Since he is at month 48, he now has only 12 months to work with the NHEP Team to find employment that will help him become self-sufficient. The team member must review and update the EP. Although the recipient can certainly continue the self-employment activity, the activity cannot continue to count towards NHEP hourly work participation requirements. To meet the 30-hour participation requirement, the team member should explore other activities with the recipient, such as an AWEP or paid employment.