Wagner-Peyser Employment Service — Federal-State Labor Exchange System

The Wagner-Peyser Act of 1933 (29 U.S.C. §§ 49–49l) established the Employment Service (ES) — a nationwide network of state and local offices (today integrated into American Job Centers under WIOA) that match workers seeking employment with employers seeking workers, at no cost to either. The Employment Service is both a labor exchange and an enforcement gateway: employers who use the ES for agricultural recruitment must comply with federal wage, housing, and working condition standards, and workers who apply through the ES can file complaints through a formal complaint system if those standards are violated. The ES is particularly important for migrant and seasonal agricultural workers (MSFWs), who have priority of service for ES staff and specific protections under the Agricultural Recruitment System. The governing administrative regulations appear at 20 CFR Parts 651–658, with Part 658 covering the complaint system and employer service discontinuation, and Part 654 covering the ES's special responsibilities for farmworker housing standards and procurement in high-unemployment areas.

Current Rule (2026)

Legal Authority

• 29 U.S.C. §§ 49–49l (Wagner-Peyser Act of 1933) — Establishes the Employment Service as a federal-state cooperative labor exchange system; requires each state to maintain a public employment office network; authorizes federal grants to states for ES operations; prohibits discrimination in ES services
• 8 U.S.C. § 1188 (INA § 218) — H-2A agricultural guestworker authority; requires employers to offer jobs through the domestic agricultural labor clearance system (ES) before hiring H-2A workers; ES administers the clearance and job order process
• 20 CFR Part 658 — DOL Employment and Training Administration regulations for the ES complaint and compliance system; governs how violations of ES regulations are reported, investigated, and resolved
• 20 CFR Part 654 — Special responsibilities of the Employment Service for Migrant and Seasonal Farmworkers (MSFWs); requires states to give MSFWs priority services, conduct outreach, and monitor agricultural employer housing

Key Mechanics

The Employment Service (ES), established by the Wagner-Peyser Act (29 U.S.C. §§ 49–49l), is the federal-state cooperative network of public labor exchange offices — now integrated with America's Job Centers (AJCs) under WIOA. The ES provides free job matching services to employers and job seekers; states receive federal formula grants to operate the system. In the agricultural context, the ES performs a critical additional function: it administers the domestic agricultural labor clearance required before an employer may use the H-2A guestworker program. Employers seeking H-2A workers must first submit a job order to the ES; the ES provides the job order to other states, attempts to recruit U.S. workers, and certifies whether the domestic labor market has been adequately tested before the Department of Labor issues H-2A labor certification. 20 CFR Part 654 imposes special obligations on states where Migrant and Seasonal Farmworkers (MSFWs) are concentrated: states must assign outreach workers, prioritize MSFW complaints, conduct field checks on agricultural employers, and monitor housing provided to workers recruited through the ES. 20 CFR Part 658 establishes the ES complaint system: any person may file a complaint alleging violation of ES regulations; state agencies must investigate within established timelines and report findings to DOL's Employment and Training Administration.

What the Employment Service Does

The Employment Service connects employers who need workers with people seeking jobs through the public labor exchange infrastructure — America's Job Centers (AJCs, formerly One-Stop Career Centers). ES offices maintain job listings, conduct labor market information collection, and provide labor exchange services (job matching, referrals, and placement assistance) for free to both employers and job seekers.

For agricultural employers, the ES plays a regulatory enforcement role as well as a placement role. When an employer recruits agricultural workers through the ES clearance system — particularly for H-2A temporary agricultural workers — the employer must assure compliance with federal labor standards as a condition of receiving ES recruitment services. If an employer violates those standards, the ES may discontinue services. The ES complaint system provides workers a mechanism to enforce those standards.

Key Provisions — Part 658: Complaint System and Employer Sanctions

§ 658.400 — Scope of the complaint system: Part 658's complaint system processes two types of claims: (1) complaints against employers about specific jobs to which applicants were referred through the ES (employer misrepresentation of wages, hours, working conditions, or housing); and (2) complaints involving failure to comply with ES regulations under Parts 651, 652, 653, and 654 — the core regulatory framework governing the labor exchange and agricultural recruitment systems; complaints must be filed within 2 years of the alleged violation

§ 658.410 — State complaint system establishment: each State Workforce Agency must establish and maintain a complaint system; the State Administrator has overall responsibility; ES Office Managers maintain a central complaint log tracking all complaints and apparent violations, noting: complainant name, respondent (employer or state agency), date filed, whether the complaint involves a migrant or seasonal farmworker (MSFW), and status

§ 658.411 — Action on complaints: when a worker files a complaint, ES staff must offer to take it in writing; staff must attempt informal resolution first — contacting the employer and mediating a resolution within prescribed timeframes; for MSFW complaints, expedited handling is required because migrant workers may be leaving the area; unresolved complaints are referred for formal investigation; complaints are referred to the ETA regional office after state-level remedies are exhausted

§ 658.417–418 — State hearings: unresolved complaints proceed to a state hearing official (may be a state unemployment compensation referee or other authorized hearing official); the hearing official issues a written decision with findings of fact and conclusions of law; the decision is sent to all parties including the ETA Regional Administrator and the Solicitor of Labor; the state hearing official cannot rule on the validity or constitutionality of ES regulations (that is for courts)

§ 658.421–425 — Federal ALJ proceedings: after exhausting state administrative remedies, a party may request a hearing before a DOL Administrative Law Judge; the ALJ applies the rules of practice in 29 CFR Part 18; the ALJ's decision is the final decision of the Secretary of Labor; the ALJ cannot rule on the constitutionality of ES regulations

§ 658.419 — Apparent violations: ES staff who observe potential employer violations (not just through worker complaints) must document and refer them to the ES Office Manager; if the employer has filed a job order within the past 12 months, ES staff must attempt informal resolution; apparent violations of nondiscrimination laws are referred to the State Equal Opportunity Officer

§ 658.501 — Grounds for discontinuing services: the Employment Service may discontinue services to employers who:

• Submit job orders with terms contrary to employment-related laws and refuse to correct them
• Fail to provide required H-2A agricultural recruitment assurances or submit job orders without required assurances
• Are found (through field checks or complaints) to have misrepresented job order terms or failed to comply with assurances
• Have a final agency or court determination finding a violation of employment-related laws
• Engage in illegal discrimination in hiring or employment
• Fail to pay wages or provide housing as specified in job orders
• Are currently debarred from H-2A or H-2B programs

§ 658.502–504 — Discontinuation procedure: before discontinuing services, the SWA notifies the employer in writing with reasons; the employer has 20 working days to respond, correct the violation, or withdraw the problematic job order; if the response is unsatisfactory, the SWA issues a final determination that discontinuation will take effect in 20 more days (unless the employer requests a hearing, which stays discontinuation pending the outcome); employers whose services are discontinued may request reinstatement by showing the conditions responsible for discontinuation have been corrected

Key Provisions — Part 654: Farmworker Housing and Procurement Preferences

§ 654.1–654.3 — ES Procurement Preferences (Executive Orders 10582 and 12073): when federal agencies procure goods and services, the ES must prioritize workers in areas of substantial unemployment (ASUs) — geographic areas with unemployment rates 6% above the national average; the ES identifies ASUs and provides information to contracting agencies to facilitate directing employment opportunities to high-unemployment areas

§ 654.11 — Agricultural employer housing standards: when an employer uses the ES agricultural clearance system (for domestic workers or as part of the H-2A inbound clearance process) and provides housing to workers, that housing must meet federal standards prescribed in Part 654; the housing requirement applies when the employer's job order includes housing as part of the employment package

§§ 654.404–654.416 — Farmworker housing standards: employers providing housing as part of ES-cleared agricultural placements must meet minimum standards for:

• § 654.404 — Housing site: adequate drainage, no health or safety hazards, garbage disposal, parking
• § 654.405 — Water supply: potable water supply meeting Safe Drinking Water Act standards; 1 gallon per person per hour minimum; hot water for bathing and laundry
• § 654.406 — Excreta and liquid waste disposal: adequate sewage facilities; toilet facilities (1 toilet per 15 persons of each sex); handwashing facilities adjacent to toilet rooms
• § 654.407 — Housing: weathertight, in good repair; adequate natural light and ventilation; at least 50 square feet per occupant in sleeping quarters; beds elevated at least 6 inches from floor; double-deck bunks permitted but triple-deck prohibited
• § 654.408 — Electrical facilities: where electricity is available, lighting in all rooms; each bedroom must have at least one electric outlet
• § 654.409 — Heating: adequate heating for local climate

These housing standards ensure that migrant and seasonal farmworkers who accept ES-referred employment with employer-provided housing receive at minimum basic sanitation, space, and physical protection — conditions that historically have been substandard in commercial agricultural housing.

Implementing Regulations — MSFW Services Under the Employment Service System (20 CFR Part 653)

The regulations at 20 CFR Part 653 implement the Employment Service's obligations to migrant and seasonal farmworkers (MSFWs) — a historically underserved population with limited access to public employment services and disproportionate exposure to exploitative job conditions. Part 653 requires State Workforce Agencies (SWAs) to affirmatively outreach to MSFWs, provide them the full range of ES services, and monitor whether MSFW participation in ES services is proportional to their presence in the local labor market.

• § 653.100 / § 653.101 — Purpose and MSFW services: SWAs must ensure that ES staff at one-stop centers offer MSFWs the full range of career and supportive services available to other ES participants; this includes employment referrals, job development, career counseling, training referrals, and supportive services; language access is a core requirement — all services must be accessible to MSFWs who are not proficient in English
• § 653.102 — Job information: all SWAs must make job order information conspicuous and available to MSFWs by all reasonable means; at minimum, job information must be available through internet labor exchange systems; for MSFWs with limited computer access, SWAs must ensure job listings are available at locations where farmworkers congregate (labor camps, migrant health centers, community organizations)
• § 653.103 — MSFW identification and tracking: each ES office must determine whether participants are MSFWs — a designation that triggers additional service obligations and outreach requirements; MSFW status is determined by self-identification, and ES staff may not refuse MSFW status claims without evidence
• § 653.107 — Outreach and Agricultural Outreach Plan: each SWA must maintain outreach staff who conduct proactive outreach to MSFW communities; the SWA must prepare an Agricultural Outreach Plan (AOP) annually that identifies MSFW population estimates by area, outreach strategies, target employers, and performance targets for MSFW service; ETA reviews AOPs as part of its oversight of SWA compliance with MSFW service requirements
• § 653.108 — Outreach worker activities: outreach workers must make personal contact with MSFWs at labor camps, community gathering points, and other locations where farmworkers can be reached outside the one-stop center; outreach contacts include informing MSFWs of available services, assisting with applications, and identifying MSFW complaints about job conditions
• § 653.111 — Farmworker monitor advocate: each SWA must designate a Farmworker Monitor Advocate (FMA) — an official responsible for monitoring SWA compliance with MSFW service obligations, advocating for MSFW interests within the state agency, and reporting annually to ETA on MSFW service levels and outcomes; the FMA is typically a senior state staff member with both policy authority and farmworker community relationships

Part 653's outreach requirements reflect the structural challenge of serving a mobile, often seasonally migrant population whose work locations shift throughout the growing season. The Agricultural Outreach Plan requirement forces states to systematically assess the MSFW population in their territory and plan how to reach farmworkers who may never voluntarily enter a one-stop career center. The Farmworker Monitor Advocate position provides institutional accountability — a named state official whose job is ensuring farmworkers receive the services they are legally entitled to. Recent rulemaking: 81 FR 56369 (August 2016) — the major WIOA integration rule that incorporated Part 653 into the WIOA service delivery framework; 89 FR 86994 (November 2024) — updates to MSFW service requirements and AOP content.

How It Affects You

If you are a migrant or seasonal farmworker: the Employment Service's complaint system gives you a mechanism to challenge an employer who misrepresented job conditions in their ES job order — false promises about wages, hours, housing, or transportation. File a complaint with your state ES office or American Job Center; you have 2 years from the violation. ES staff who work with MSFWs are required to offer complaint assistance. If you received housing through an ES-cleared job placement, that housing must meet Part 654 standards — you can report violations to the ES.

If you are an agricultural employer using the ES system: using the Employment Service to recruit workers (especially under H-2A clearance) subjects your job orders to ES regulation review. Any housing you provide must meet Part 654 standards. Violations of job order assurances — including wage, hour, and housing terms — can result in discontinuation of ES services, which bars your access to the federal H-2A domestic worker clearance system. The ES serves as both recruiter and compliance monitor for employers in the agricultural sector.

If you are a State Workforce Agency: you must maintain a functioning complaint system for ES regulation violations, prioritize MSFW complaints, and conduct employer field checks to identify apparent violations even without formal complaints. Failure to maintain adequate complaint system operations can result in ETA federal oversight and corrective action requirements.

Statutory Authority

This rule implements:

• 29 U.S.C. § 49 — Wagner-Peyser Act: establishes the Employment Service system; requires states to establish and maintain a system of public employment offices
• 29 U.S.C. § 49b — Administration and staffing: ETA administers the ES through grants to states; ES offices provide labor exchange services at no cost to employers and workers
• 29 U.S.C. § 49f — State plans and funding: states must submit unified plans under WIOA; ES programs are integrated into the WIOA service delivery system as core employment services

Recent Rulemakings

The 2016 Wagner-Peyser Integration Rule (81 FR 56369) integrated the Employment Service into the WIOA one-stop system, requiring ES staff to be co-located in American Job Centers and to provide services through the unified WIOA service delivery model. This eliminated standalone ES offices and merged them with the WIOA American Job Center network. The 2022 Wagner-Peyser Staffing Flexibility Rule (87 FR 56,163) gave states flexibility in using merit-staffed (civil service) ES staff — reversing a 2020 rule that had mandated merit staffing. The 2022 H-2A regulations (87 FR 35,380) updated the agricultural labor recruitment standards that interact with the ES's clearance system obligations for employers recruiting H-2A workers.

Pending Action