20 C.F.R. § 618.225 – Criteria for certification of a group of workers.

(a) Increased imports.
1. (1) This paragraph (a) includes criteria for certification of a group of workers based upon increased imports of:
  1. (i) Articles like or directly competitive with the articles produced by the workers' firm;
  2. (ii) Services like or directly competitive with the services supplied by the workers' firm;
  3. (iii) Articles like or directly competitive with articles into which one or more component parts produced by the workers' firm are directly incorporated;
  4. (iv) Articles like or directly competitive with articles that are produced directly using services supplied by the workers' firm; or
  5. (v) Articles directly incorporating one or more component parts produced outside the United States that are like or directly competitive with imports of articles incorporating one or more component parts produced by the workers' firm.
2. (2) After review of the relevant information necessary to make a determination, the Certifying Officer must certify a worker group as eligible to apply for TAA Program benefits and services as impacted by increased imports if all four of the criteria in paragraphs (a)(2)(i) through (iv) of this section are met.
  1. (i) Criterion 1. A significant number or proportion of the workers' firm, or appropriate subdivision thereof, have been totally or partially separated, or threatened with such separation, during the 1-year period prior to the petition date.
    1. (A) Information regarding separations may be obtained from:
      (1) A questionnaire;
      (2) State workforce agencies;
      (3) Unions;
      (4) Workers in the group of workers;
      (5) Public records; and
      (6) Other reliable sources.
    2. (B) Analysis of separation data must generally consist of a:
      (1) Comparison of employment on the petition date to employment on the date that is 1 year prior to the petition date;
      (2) Review of employment activity during the 1-year period prior to the petition date; and
      (3) Review of evidence provided by the workers' firm regarding actual and threatened separations that occur, or are scheduled to occur, after the petition date.
    3. (C) Evidence of threat of separation includes, but is not limited to:
      (1) A Worker Adjustment and Retraining Notice (WARN) letter, or a notification issued under a similar State law;
      (2) A separation schedule;
      (3) Information provided to the public, such as a news release or notice on the workers' firm website;
      (4) Information provided to the worker group; or
      (5) Internal firm documents, including memoranda or a firm newsletter.
  2. (ii) Criterion 2. Sales or production, or both, of the workers' firm has decreased during the 1-year period prior to the petition date.
    1. (A) Information regarding sales or production may be collected from:
      (1) Questionnaires;
      (2) Public records; and
      (3) Other reliable sources.
    2. (B) Analysis of sales or production data must generally consist of a comparison of sales or production data on the petition date to sales or production data on the date that is 1 year prior to the petition date.
  3. (iii) Criterion 3. Imports of the article or service have increased during the 1-year period prior to the petition date.
    1. (A) Information regarding imports may be collected from:
      (1) Questionnaires issued to the workers' firm or customer(s);
      (2) Public records; and
      (3) Other reliable sources.
    2. (B) Analysis of the workers' firm import activity must generally consist of a comparison of the workers' firm import data on the petition date to the workers' firm import data on the date that is 1 year prior to the petition date.
    3. (C) Analysis of customer import activity must generally consist of a comparison of the aggregate of customer import data on the petition date to the aggregate of customer import data on the date that is 1 year prior to the petition date.
  4. (iv) Criterion 4. Increased imports have contributed importantly to worker separations, or threat of separation, and the decline in sales or production at the workers' firm.
    1. (A) Analysis of the impact of increased imports on worker separations and declines in sales or production at the workers' firm must generally consist of determining:
      (1) Whether there are one or more events, or factors, that lessen or sever the causal nexus between the increase in imports and worker separations or threat of separation, and the decline in sales and production at the workers' firm;
      (2) What percentage of the workers' firm sales or production declines was attributable to the firm's increased imports;
      (3) What percentage of the workers' firm customer(s) sales or production declines was attributable to the firm's increased imports; and
      (4) Whether there are other events or factors that mitigate or amplify the impact of increased imports on the workers' firm.
    2. (B) The impact may be determined using a quantitative or qualitative analysis.
(b) Shift.
1. (1) This paragraph (b) includes criteria for certification of a worker group based on a shift:
  1. (i) In production of like or directly competitive articles by the workers' firm to another country; or
  2. (ii) In the supply of like or directly competitive services by the workers' firm to another country.
2. (2) After a review of relevant information necessary to make a determination, the Certifying Officer must certify a group of workers as eligible to apply for TAA Program benefits and services as impacted by a shift in production or supply of service if all of the criteria in paragraphs (b)(2)(i) through (iii) of this section of are met.
  1. (i) Criterion 1. A significant number or proportion of the workers' firm, or appropriate subdivision thereof, have been totally or partially separated, or threatened with separation, during the 1-year period prior to the petition date.
    1. (A) Information regarding separations may be obtained from:
      (1) A questionnaire;
      (2) State workforce agencies;
      (3) Unions;
      (4) Workers in the group of workers;
      (5) Public records; and
      (6) Other reliable sources.
    2. (B) Analysis of separation data must generally consist of a:
      (1) Comparison of employment on the petition date to employment on the date that is 1 year prior to the petition date;
      (2) Review of employment activity during the 1-year period prior to the petition date; and
      (3) Review of evidence provided by the workers' firm regarding actual and threatened separations that occur, or are scheduled to occur, after the petition date.
    3. (C) Evidence of threat of separation includes, but is not limited to:
      (1) A WARN letter, or a notification issued under a similar State law;
      (2) A separation schedule;
      (3) Information provided to the public, such as a news release or notice on the workers' firm website;
      (4) Information provided to the worker group; or
      (5) Internal firm documents, including memoranda or a firm newsletter.
  2. (ii) Criterion 2. There has been a shift in the production or supply of services by the workers' firm to a foreign country.
    1. (A) Information regarding shift activity may be collected from:
      (1) A questionnaire;
      (2) Public records; and
      (3) Other reliable sources.
    2. (B) Analysis of shift activity must generally consist of a:
      (1) Comparison of shift data on the petition date to shift data on the date that is 1 year prior to the petition date;
      (2) Review of shift activity during the 1-year period prior to the petition date; and
      (3) Review of evidence provided by the workers' firm regarding shift activity scheduled to occur after the petition date.
    3. (C) Evidence of future planned shift activity must include more than a stated intent to shift activity to a foreign country and includes, but is not limited to, a reassignment of production or service supply; a reassignment of discrete aspects or stages of production or service supply; securing a facility in a foreign country; shipping resources to a foreign country; or acquiring personnel in a foreign country.
  3. (iii) Criterion 3. The shift to a foreign country has contributed importantly to worker separations or threat of separation.
    1. (A) Analysis of impact of shift activity on worker separations must generally consist of determining:
      (1) Whether there are one or more events or factors that sever or lessen the causal nexus between the shift activity and worker separations or threat of separation;
      (2) What percentage of the workers' firm sales or production declines was attributable to the firm's shift activity;
      (3) Whether operations at the workers' firm domestic facility or facilities decreased at the same or at a greater rate than operations at the foreign facility or facilities; and
      (4) Whether there are other events or factors that mitigate or amplify the impact of shift activity on the workers' firm.
    2. (B) The impact may be determined using a quantitative or qualitative analysis.
(c) Foreign acquisition. This paragraph (c) includes criteria for certification of a worker group based on a foreign acquisition of like or directly competitive articles by the workers' firm from another country. After review of relevant information necessary to make a determination, the Certifying Officer must certify a group of workers as eligible to apply for TAA Program benefits and services as impacted by a foreign acquisition of articles or services if all of the criteria in paragraphs (c)(1) through (3) of this section are met.
1. (1) Criterion 1. A significant number or proportion of the workers' firm, or appropriate subdivision thereof, have been totally or partially separated, or threatened with separation, during the 1-year period prior to the petition date.
  1. (i) Information regarding separations may be obtained from:
    1. (A) A questionnaire;
    2. (B) State workforce agencies;
    3. (C) Unions;
    4. (D) Workers in the group of workers;
    5. (E) Public records; and
    6. (F) Other reliable sources.
  2. (ii) Analysis of separation data must generally consist of a:
    1. (A) Comparison of employment on the petition date to employment on the date that is 1 year prior to the petition date;
    2. (B) Review of employment activity during the 1-year period prior to the petition date; and
    3. (C) Review of evidence provided by the workers' firm regarding actual and threatened separations that occur, or are scheduled to occur, after the petition date.
  3. (iii) Evidence of threat of separation includes, but is not limited to:
    1. (A) A WARN letter, or a notification issued under a similar State law;
    2. (B) A separation schedule;
    3. (C) Information provided to the public, such as a news release or notice on the workers' firm website;
    4. (D) Information provided to the worker group; or
    5. (E) Internal firm documents, including memoranda or a firm newsletter.
2. (2) Criterion 2. There has been an acquisition of articles or supply of services by the workers' firm from an entity in a foreign country.
  1. (i) Information regarding separations may be obtained from:
    1. (A) A questionnaire;
    2. (B) State workforce agencies;
    3. (C) Unions;
    4. (D) Workers in the group of workers;
    5. (E) Public records; and
    6. (F) Other reliable sources.
  2. (ii) Analysis of acquisition data must generally consist of a:
    1. (A) Comparison of acquisition data on the petition date to acquisition data on the date that is 1 year prior to the petition date;
    2. (B) Review of acquisition data during the 1-year period prior to the petition date; and
    3. (C) Review of evidence provided by the workers' firm regarding acquisition activity scheduled to occur after the petition date.
  3. (iii) Evidence of future planned acquisitions requires more than a stated intent to procure production of an article or supply of services from an entity in a foreign country and may include, but is not limited to, entering into a contract with a licensee; reassignment of production or service supply to a contractor or licensee; and a reassignment of discrete aspects or stages of production or service supply to a contractor or licensee.
3. (3) Criterion 3. The acquisition from a foreign country has contributed importantly to worker separations or threat of separation.
  1. (i) Analysis of impact of acquisition data on worker separations must generally consist of determining:
    1. (A) Whether there are one or more events or factors that lessen or sever the causal nexus between the acquisition activity and worker separations or threat of separation;
    2. (B) What percentage of the workers' firm sales or production declines was attributable to the firm's acquisition activity;
    3. (C) Whether operations at the workers' firm domestic facility or facilities decreased at the same or at a greater rate than contractor or licensee operations in the foreign country; and
    4. (D) Whether there are other events or factors that mitigate or amplify the impact of acquisition activity on the workers' firm.
  2. (ii) The impact may be determined using a quantitative or qualitative analysis.
(d) Supplier of component parts or services. This paragraph (d) contains criteria for certification of a worker group as a supplier to a worker group. After review of relevant information necessary to make a determination, the Certifying Officer must certify a worker group as eligible to apply for TAA Program benefits and services as a supplier to a worker group if all of the criteria in paragraphs (d)(1) through (5) of this section are met.
1. (1) Criterion 1. A significant number or proportion of the workers' firm, or appropriate subdivision thereof, have been totally or partially separated, or threatened with separation, during the 1-year period prior to the petition date.
  1. (i) Information regarding separations may be obtained from:
    1. (A) A questionnaire;
    2. (B) State workforce agencies;
    3. (C) Unions;
    4. (D) Workers in the group of workers;
    5. (E) Public records; and
    6. (F) Other reliable sources.
  2. (ii) Analysis of separation data must generally consist of a:
    1. (A) Comparison of employment on the petition date to employment on the date that is 1 year prior to the petition date;
    2. (B) Review of employment activity during the 1-year period prior to the petition date; and
    3. (C) Review of evidence provided by the workers' firm regarding actual and threatened separations that occur, or are scheduled to occur, after the petition date.
  3. (iii) Evidence of threat of separation includes, but is not limited to:
    1. (A) A WARN letter, or a notification issued under a similar State law;
    2. (B) A separation schedule;
    3. (C) Information provided to the public, such as a news release or notice on the workers' firm website;
    4. (D) Information provided to the worker group; or
    5. (E) Internal firm documents, including memoranda or a firm newsletter.
2. (2) Criterion 2. The certification of the worker group employed by the firm to which the workers' firm supplied component parts or services has not expired by the petition date.
3. (3) Criterion 3. The workers' firm conducted business with the firm identified in paragraph (d)(2) of this section during the 1-year period prior to the petition date.
4. (4) Criterion 4. The certification identified in paragraph (d)(2) of this section was based on an article or service related to the component part produced or service supplied by the workers' firm.
5. (5) Criterion 5. The component parts supplied to the firm identified in paragraph (d)(2) of this section, represented at least 20 percent of the supplier's production or sales during the 1-year period prior to the petition date, or loss of business with the firm identified in paragraph (d)(2) of this section, during the 1-year period prior to the petition date, contributed importantly to separations or threat of separation at the workers' firm.
(e) Downstream producer. After review of relevant information necessary to make a determination, the Certifying Officer must certify a worker group as eligible to apply for TAA Program benefits and services as a downstream producer if all of the criteria in paragraphs (e)(1) through (5) of this section are met.
1. (1) Criterion 1. A significant number or proportion of the workers' firm, or appropriate subdivision thereof, have been totally or partially separated, or threatened with separation, during the 1-year period prior to the petition date.
  1. (i) Information regarding separations may be obtained from a questionnaire, State workforce agencies, unions, workers in the group of workers, public records, and other reliable sources.
  2. (ii) Analysis of separation data must generally consist of a:
    1. (A) Comparison of employment on the petition date to employment on the date that is 1 year prior to the petition date;
    2. (B) Review of employment activity during the 1-year period prior to the petition date; and
    3. (C) Review of evidence provided by the workers' firm regarding actual and threatened separations that occur, or are scheduled to occur, after the petition date.
  3. (iii) Evidence of threat of separation includes, but is not limited to:
    1. (A) A WARN letter, or a notification issued under a similar State law;
    2. (B) A separation schedule;
    3. (C) Information provided to the public, such as a news release or notice on the workers' firm website;
    4. (D) Information provided to the worker group; or
    5. (E) Internal firm documents, including memoranda or a firm newsletter.
2. (2) Criterion 2. The certification of the worker group employed by the firm to which the workers' firm provided value-added production processes or services has not expired by the petition date.
3. (3) Criterion 3. The workers' firm conducted business with the firm identified in paragraph (e)(2) of this section during the 1-year period prior to the petition date.
4. (4) Criterion 4. The certification identified in paragraph (e)(2) of this section was based on an article or service related to the value-added production processes or services supplied by the workers' firm.
5. (5) Criterion 5. Loss of business with the firm identified in paragraph (e)(2) of this section during the 1-year period prior to the petition date contributed importantly to separations or threat of separation at the workers' firm.
(f) ITC determinations. After review of relevant information necessary to make a determination, the Certifying Officer must certify a worker group as eligible to apply for TAA based on a determination issued by the ITC if all of the criteria in paragraphs (f)(1) through (3) of this section are met.
1. (1) Criterion 1. The ITC has publicly identified the workers' firm, by name, as a member of a domestic industry in an investigation resulting in:
  1. (i) An affirmative determination of serious injury or threat thereof under section 202(b)(1) of the Act (19 U.S.C. 2252(b)(1));
  2. (ii) An affirmative determination of market disruption or threat thereof under section 421(b)(1) of the Act (19 U.S.C. 2451(b)(1)); or
  3. (iii) An affirmative final determination of material injury or threat thereof under section 705(b)(1)(A) or 735(b)(1)(A) of the Tariff Act of 1930 (19 U.S.C. 1671d(b)(1)(A) and 1673d(b)(1)(A)).
2. (2) Criterion 2. The petition is filed during the 1-year period beginning on the date on which:
  1. (i) A summary of the report submitted to the President by the ITC under section 202(f)(1) of the Act with respect to the affirmative determination described in paragraph (f)(1)(i) of this section is published in the Federal Register under section 202(f)(3) of the Act; or
  2. (ii) Notice of an affirmative determination described in paragraph (f)(1)(ii) or (iii) of this section is published in the Federal Register.
3. (3) Criterion 3. The workers have become totally or partially separated from the workers' firm within:
  1. (i) The 1-year period described in paragraph (f)(2) of this section; or
  2. (ii) The 1-year period preceding the 1-year period described in paragraph (f)(2) of this section.
(g) Sales or production decline criteria. For paragraphs (a) through (c) of this section, in assessing sales or production decline for the period 1 year prior to the petition date, the Department will use a comparison of the latest 2 full calendar year periods and will use a comparison of the year to date period (from the year the petition was filed) to the same year to date period from the prior year. This paragraph (g) does not apply to determining whether a significant number of workers have been separated or threatened with separation.
(h) Oil and gas. For workers employed by firms engaged in exploration or drilling for crude oil and natural gas:
1. (1) Any firm, or appropriate subdivision of a firm, that engages in exploration or drilling for oil or natural gas must be considered to be a firm producing oil or natural gas;
2. (2) Any firm, or appropriate subdivision of a firm, that engages in exploration or drilling for oil or natural gas, or otherwise produces oil or natural gas, must be considered to be producing articles directly competitive with imports of oil and with imports of natural gas; and
3. (3) The Department may conduct a parallel investigation to determine whether the group of workers meets the criteria for certification of worker groups under this section for the services provided by the group of workers. The Department will render a determination after all appropriate avenues are considered.
(i) Staffed workers. The Department considers staffed workers to be members of a worker group even if they are not specifically mentioned within the determination document issued under § 618.235. The Department will collect information from the workers' firm during the investigation to establish which leasing or staffing entity or entities the firm used under a contract. Once identified, an evaluation of operational control will occur. If a certification is rendered, the Department will notify States regarding the appropriate contact information of the known leasing or staffing entity or entities in order to expedite worker notification of their eligibility to apply individually for TAA Program benefits and services. Factors to be considered in evaluating operational control include:
1. (1) Whether the contract workers perform only tasks that are independent, discrete projects for the workers' firm (as opposed to performing tasks that are part of the regular business operations of the firm);
2. (2) Whether the workers' firm has the discretion to hire, fire, and discipline the contract workers;
3. (3) Whether the workers' firm has the ability to terminate the contract workers' employment with such firm through the staffing or leasing contracted firm;
4. (4) Whether the workers' firm exercises the authority to supervise the contract workers' daily work activities, including assigning and managing work, and determining how, where, and when the work of contract worker takes place (e.g., factors such as the hours of work, the selection of work, and the manner in which the work is to be performed by each contract worker are relevant);
5. (5) Whether the services of the contract workers are offered on the open market;
6. (6) Whether the contract workers work exclusively for the workers' firm;
7. (7) Whether the workers' firm is responsible for establishing wage rates and the payment of salaries of the contract workers;
8. (8) Whether the workers' firm provides skills training to the contract workers; and
9. (9) Whether there are other facts indicating that the workers' firm exercises control over the contract workers.
(j) Teleworkers. The Department considers teleworkers (also known as remote, or home-based workers) to be members of a worker group even if they are not specifically mentioned within the determination document issued under § 618.235 when they would be a part of the worker group if they worked on-site. Teleworkers do not have to be physically based at the location of the subject firm or in the same city or same State of the location that is identified on the determination document to be members of the certified worker group.
(k) Successor-in-interest. The Department considers workers employed by a firm that is a successor-in-interest to be members of a worker group even if they are not mentioned specifically within the determination document issued under § 618.235.