WASHINGTON, D.C. — The U.S. Department of Labor has finalized a rule delaying by one year the deadline for states to comply with federal merit staffing requirements for the Employment Service, granting states additional time as the department weighs broader changes to workforce regulations.
The final rule extends the compliance date established under the department’s 2023 Wagner-Peyser Act Staffing rule, which requires states to use state merit staff to deliver Employment Services through American Job Centers nationwide. The new deadline for compliance is January 21, 2027.
The Employment Service is a core program under the Workforce Innovation and Opportunity Act, providing job search assistance, referrals, and labor market information to jobseekers and employers. Unlike other WIOA programs that allow more flexible staffing models, the Wagner-Peyser rule imposed stricter requirements centered on state merit personnel.
Labor officials said the extension not only gives states additional time to meet the current requirements but also allows the department to complete ongoing rulemaking that could further alter staffing obligations. In July 2025, the department proposed eliminating merit staffing requirements altogether as part of a deregulatory effort aimed at streamlining program administration and prioritizing flexibility for states.
WIOA programs, managed by the Department of Labor’s Employment and Training Administration, are designed to help workers find jobs and assist employers in filling open positions. The rule delay aligns with the Trump administration’s broader workforce agenda, outlined in America’s Talent Strategy, which emphasizes empowering states to integrate workforce systems and improve service delivery for American workers.
The department’s 2023 Wagner-Peyser Act Staffing final rule is available at https://www.federalregister.gov/documents/2023/11/24/2023-25372/wagner-peyser-act-staffing.
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