🗞️ DOL Delays Merit Staffing Mandate for Employment Service Centers
DOL extends state compliance deadline by one year to January 21, 2027, for merit staffing requirements in Employment Service job centers as deregulatory rulemaking continues that may eliminate the mandate entirely.
The U.S. Department of Labor published a final rule on January 20, 2026, extending the deadline for states to comply with merit staffing requirements under the Wagner-Peyser Act. The extension pushes the compliance date from January 22, 2026, to January 21, 2027, providing states an additional year to implement staffing changes while DOL completes ongoing rulemaking that could eliminate the requirement.
The 2023 Wagner-Peyser Act Staffing final rule required states (except Colorado, Massachusetts, and Michigan) to use state merit-based employees to deliver Employment Services, rather than the flexible staffing models permitted under WIOA for other workforce programs. Employment Service is a core WIOA program that provides job search assistance and labor exchange services through American Job Centers nationwide.
The deadline extension provides additional time for states while DOL completes ongoing rulemaking. In July 2025, DOL proposed eliminating the merit staffing requirement entirely, asserting the Wagner-Peyser Act lacks statutory basis for mandating state merit staff. The proposed rule would restore the staffing flexibility that existed under the 2020 final rule, allowing states to use state employees, local government employees, contractors, or other staffing models.
The staffing requirement has been subject to changing policy approaches across administrations. Supporters of merit staffing argue it ensures unbiased, high-quality employment services and prevents political influence, while proponents of staffing flexibility contend it allows states to operate more efficiently and align Employment Service with other WIOA programs. The current administration's approach, outlined in its America's Talent Strategy framework, calls for increased state flexibility in workforce development program administration.
Key Points
- Compliance deadline extended one year from January 22, 2026 to January 21, 2027
- Ongoing rulemaking proposed in July 2025 seeks to eliminate merit staffing requirements entirely
- Three states exempt from merit staffing requirement: Colorado, Massachusetts, and Michigan
- Employment Service is a core WIOA program delivered through American Job Centers nationwide
- Staffing flexibility under consideration would allow states to use contractors, local employees, or other models
- Policy context: Merit staffing requirements have shifted across administrations; supporters cite service quality and neutrality while opponents cite operational efficiency and state flexibility
Primary Source Author: U.S. Department of Labor, Employment and Training Administration
Primary Source: U.S. Department of Labor, Employment and Training Administration
Primary Source Link: https://www.dol.gov/newsroom/releases/eta/eta20260120
Supplemental Links
- Wagner-Peyser Act Staffing, Delay of Merit Staffing Compliance Date Final Rule (PDF)
- 2023 Wagner-Peyser Act Staffing Final Rule
- July 2025 Proposed Rule to Eliminate Merit Staffing
- Wagner-Peyser Act Overview
- Workforce Innovation and Opportunity Act (WIOA)
- 2020 Wagner-Peyser Staffing Flexibility Final Rule
