[Federal Register Volume 87, Number 100 (Tuesday, May 24, 2022)]
[Rules and Regulations]
[Pages 31428-31429]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-10693]


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DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 21


Clarification Regarding Self-Employment in the Context of 
``Employment'' for VET TEC Training Programs

AGENCY: Department of Veterans Affairs.

ACTION: Notification of interpretation.

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SUMMARY: The Department of Veterans Affairs (VA) provides notice of a 
policy advisory released on January 19, 2022, by VA's Education 
Service. The policy advisory clarifies VA's previous regulatory 
interpretation of ``employment'' and also explains when ``self-
employment'' will be considered ``employment'' for the purpose of 
paying training providers participating in the Veterans Employment 
Through Technology Education Courses (VET TEC) training program.

DATES: May 24, 2022.

FOR FURTHER INFORMATION CONTACT: Cheryl Amitay, Chief of Policy and 
Regulations Team, Education Service (225), Veterans Benefits 
Administration, Department of Veterans Affairs, 810 Vermont Avenue NW, 
Washington, DC 20420, at 202-461-9800. This is not a toll-free number.

SUPPLEMENTARY INFORMATION: On August 16, 2017, Public Law 115-48, the 
Harry W. Colmery Veterans Educational Assistance Act of 2017, was 
signed into law. Section 116 of this Act, codified at 38 U.S.C. 3001 
note, requires the Secretary of Veterans Affairs to carry out a pilot 
program (commonly known as VET TEC) for 5 years to provide eligible 
Veterans who are entitled to educational assistance under 38 U.S.C. 
chapter 30, 32, 33, 34, or 35, or 10 U.S.C. chapter 1606 or 1607, with 
the opportunity to enroll in high technology programs of education 
intended to provide training and skills sought by employers in a 
relevant field or industry. Under section 116(c)(2)(C) of Public Law 
115-48, VA must pay 50% of the cost of providing a high technology 
program of education to qualified providers upon ``employment'' of a 
Veteran in a certain field of study. Also, under section 116(c)(5)(B), 
VA is required to give preference to a qualified provider that offers 
tuition reimbursement for students who do not find full-time 
``meaningful employment'' in their field of study within 180 days after 
completing their program.
    Based on a review of employment information since the initial roll-
out of VET TEC, VA issued a policy advisory on January 19, 2022, titled 
Clarification Regarding Self-Employment in the Context of 
``Employment'' for VET TEC Training Programs Established under section 
116 of Public Law 115-48, to clarify how self-employment satisfies the 
meaning of ``employment'' for the purposes of determining whether VA 
must pay qualified providers for training provided to Veterans and 
selecting qualified providers. The advisory establishes objective 
standards for determining under what circumstances VA will consider 
self-employment to be employment and is intended to maximize economic 
outcomes for VET TEC participants. The advisory states generally that 
VA considers a person to be ``employed'' if that person performs 
services for another individual and is compensated for such services. 
It further states that the nature of the relationship may be that of an 
employee/employer or contractor/client. More specifically, the advisory 
states that ``employment'' includes the following:
     Establishing a new employee/employer relationship in a 
career supported by the completed program of study; or,
     Promotion in the Veteran's current employee/employer 
relationship in a career supported by the completed program of study; 
or,
     Self-employment in a career supported by the completed 
program of study.
    With regard to clarifying the job certification requirements 
surrounding what is deemed as acceptable and reasonable for the 
reporting of employment, including self-employment (i.e., the minimum 
standards for declaring a Veteran has obtained employment), the 
advisory provides as follows:
    The following documentation is required for payment of employment 
certifications that claim any form of employment (both ``employment'' 
under section 116(c)(2)(C) and ``meaningful employment'' under section 
116(c)(5)(B)):
     Contract Jobs. Reports of Contract Jobs must be at least 6 
months in length.
     Salary or hourly wages.
     Hours worked per week. Employment must be full-time. There 
is a minimum 30 hours per week requirement for all employment claims.
     Promotion in current job. Must be a monetary promotion. A 
promotion is NOT simply a job title change without an increase in 
salary.
     Offer letter and/or first pay stub. Documentation must be 
official and display the official company letterhead.

``Self-Employment'' Criteria and Verification Regarding Self-Employment

    VA supports self-employment and other entrepreneurial endeavors as 
viable paths to achieving meaningful employment. However, training 
providers should encourage students to explore all possible employment 
prospects and opportunities, and should not direct students towards 
self-employment as the primary option for employment. To ensure that 
individuals electing to pursue employment through self-employment are 
adequately equipped for success, the following documentation is 
required for payment of employment certifications that claim any form 
of self-employment:
     Proof of ownership of the business. These can include a 
Federal Tax ID Number; Articles of Organization, or Articles of 
Incorporation; copy of personal tax return with schedule C; a copy of 
the Doing Business As declarations, etc. It may also include a state 
tax ID Number or state business registration information.
     Copies of any valid personal licenses or certifications 
required for business operations.
     A bill and payment from a client to show proof of 
legitimate business transactions for the type of services being 
provided and/or products sold; and
     Other documents: VA may request additional documentation 
to support the claim if existing evidence provided is insufficient to 
make a determination.
    To avoid a conflict of interest, neither the training provider, its 
subsidiaries, nor a parent company may become the client of the self-
employed VET TEC student.
    Implementation of the new policy began on February 1, 2022, and it 
is applicable to both VET TEC students and training providers, 
regardless of when the student began or graduated from their program. 
Compliance with the requirements specified in the new policy is part of 
the annual approval or

[[Page 31429]]

reapproval process for training providers.

Signing Authority

    Denis McDonough, Secretary of Veterans Affairs, approved this 
document on May 11, 2022, and authorized the undersigned to sign and 
submit the document to the Office of the Federal Register for 
publication electronically as an official document of the Department of 
Veterans Affairs.

Luvenia Potts,
Regulations Development Coordinator, Office of Regulation Policy & 
Management, Office of General Counsel, Department of Veterans Affairs.
[FR Doc. 2022-10693 Filed 5-23-22; 8:45 am]
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