In mid-August, the U.S. Department of Labor finalized its rulemaking that would remove the State merit staffing requirement for Wagner-Peyser Employment Service services. This Final Rule will become effective on October 19, 2026.
State and local workforce agencies have experienced ‘whiplash’ when it comes to Wagner-Peyser staffing over the last six years. In 2020, during the first Trump Administration, the U.S. Department of Labor finalized a similar Final Rule. However, that Rule was only in place through late 2023 when the Biden Administration reversed course and reinstated the State merit staffing requirement.
Despite this regulatory uncertainty, three states have operated with flexibility in the Merit staffing requirement – Colorado, Michigan, and Massachusetts (a portion of the local boards in the state). These flexible delivery models, emphasizing local staff to deliver Wager-Peyser services, should be studied and considered as the workforce development community grapples with these new flexibility options. There continues to be an emphasis from the Administration, as well as Congress, around more integrated service delivery for job seekers, workers and employers. This new Final Rule on Wagner-Peyser staffing could be another tool towards that goal.
This flexibility comes at a time when the local workforce system is seeing additional utilization due to the impacts of artificial intelligence and other economic factors, as well as expanded SNAP work requirements and new federal Medicaid work requirements. As States consider what programs qualify and ‘count’ towards these new obligations, ensuring greater continuity of service could be a benefit to the customers (job seekers and employers) as well as the state/local government stakeholders.
A new Wagner-Peyser Employment Service staffing rule takes effect October 19, 2026
