Grievance Processes & Policies
The Federal regulations 45 CFR § 2540.230 requires that state and local applicants that receive assistance from the Corporation must establish and maintain a procedure for the filing and adjudication of grievances from participants, labor organizations, and other interested individuals concerning programs that receive assistance from the Corporation. A grievance procedure may include dispute resolution programs such as mediation, facilitation, assisted negotiation and neutral evaluation. If the grievance alleges fraud or criminal activity, it must immediately be brought to the attention of the Corporation’s inspector general (https://www.cncsoig.gov).
An aggrieved party is encourage to first attempt to resolve grievance through an Informal Grievance Process. Options are listed below.
Informal Grievance Process
Option 1: Resolution through Immediate Supervisor. Option 1 is not mandatory. An aggrieved party may choose to skip this option and pursue Options 2, 3, 4 or 5. Within seven (7) days of the underlying dispute, the aggrieved party refers the complaint to his/her immediate supervisor who will attempt to resolve the complaint. If the matter is resolved, and a written agreement is reached, the aggrieved party will agree to forego filing a formal grievance in the matter under consideration. If the grievance is not resolved, the supervisor must inform the aggrieved party of his or her right to file a formal grievance.
If Option 1 did not resolve the issue, the aggrieved party can consider Options 2, 3, or file a formal grievance (Options 4 or 5).
Option 2: Written Grievance to Grant Manager. Option 2 is not mandatory. An aggrieved party may choose to skip this option and pursue Options 3, 4 or 5. Within 14 days of the underlying dispute, the aggrieved party submits a written grievance that outlines the details of the complaint to the Grant Manager of the administering agency. The Grant Manager will attempt to resolve the complaint through informal mediation or facilitation. If the matter is resolved, and a written agreement is reached, the aggrieved party will agree to forego filing a formal grievance in the matter under consideration. If the grievance is not resolved, the Grant Manager must inform the aggrieved party of his or her right to file a formal grievance.
If Option 2 did not resolve the issue, the aggrieved party can consider Options 3, or file a formal grievance (Options 4 or 5).
Option 3: Alternative Dispute Resolution (ADR). The aggrieved party may seek resolution through alternative means of dispute resolution such as mediation or facilitation. Dispute resolution proceedings must be initiated within 45 calendar days from the date of the alleged occurrence. At the initial session of the dispute resolution proceedings, the party must be advised in writing of his or her right to file a grievance and right to arbitration. If the matter is resolved, and a written agreement is reached, the party will agree to forego filing a grievance in the matter under consideration.
If mediation, facilitation, or other dispute resolution processes are selected, the process must be aided by a neutral party who, with respect to an issue in controversy, functions specifically to aid the parties in resolving the matter through a mutually achieved and acceptable written agreement. The neutral party may not compel a resolution. Proceedings before the neutral party must be informal, and the rules of evidence will not apply. With the exception of a written and agreed upon dispute resolution agreement, the proceeding must be confidential.
Formal Grievance Process (Options 4 and 5)
Option 4: Grievance procedure for unresolved complaints. If the matter is not resolved within 30 calendar days from the date the informal dispute resolution process began, the neutral party must again inform the aggrieving party of his or her right to file a formal grievance. In the event an aggrieving party files a grievance, the neutral may not participate in the formal complaint process. In addition, no communication or proceedings of the informal dispute resolution process may be referred to or introduced into evidence at the grievance and arbitration hearing. Any decision by the neutral party is advisory and is not binding unless both parties agree.
Time limitations. Except for a grievance that alleges fraud or criminal activity, a grievance must be made no later than one year after the date of the alleged occurrence. If a hearing is held on a grievance, it must be conducted no later than 30 calendar days after the filing of such grievance. A decision on any such grievance must be made no later than 60 calendar days after the filing of the grievance.
Option 5: Arbitration
Time Limits
Suspension of placement. If a grievance is filed regarding a proposed placement of a participant in a program that receives assistance under this chapter, such placement must not be made unless the placement is consistent with the resolution of the grievance.
Remedies. Remedies for a grievance filed under a procedure established by a recipient of Corporation assistance may include –
(1) Prohibition of a placement of a participant; and
(2) In grievance cases where there is a violation of nonduplication or nondisplacement requirements and the employer of the displaced employee is the recipient of Corporation assistance –
(i) Reinstatement of the employee to the position he or she held prior to the displacement;
(ii) Payment of lost wages and benefits;
(iii) Re-establishment of other relevant terms, conditions and privileges of employment; and
(iv) Any other equitable relief that is necessary to correct any violation of the nonduplication or nondisplacement requirements or to make the displaced employee whole.
Suspension or termination of assistance. The Corporation may suspend or terminate payments for assistance under this chapter.
Effect of noncompliance with arbitration. A suit to enforce arbitration awards may be brought in any Federal district court having jurisdiction over the parties without regard to the amount in controversy or the parties’ citizenship.
An aggrieved party is encourage to first attempt to resolve grievance through an Informal Grievance Process. Options are listed below.
Informal Grievance Process
Option 1: Resolution through Immediate Supervisor. Option 1 is not mandatory. An aggrieved party may choose to skip this option and pursue Options 2, 3, 4 or 5. Within seven (7) days of the underlying dispute, the aggrieved party refers the complaint to his/her immediate supervisor who will attempt to resolve the complaint. If the matter is resolved, and a written agreement is reached, the aggrieved party will agree to forego filing a formal grievance in the matter under consideration. If the grievance is not resolved, the supervisor must inform the aggrieved party of his or her right to file a formal grievance.
If Option 1 did not resolve the issue, the aggrieved party can consider Options 2, 3, or file a formal grievance (Options 4 or 5).
Option 2: Written Grievance to Grant Manager. Option 2 is not mandatory. An aggrieved party may choose to skip this option and pursue Options 3, 4 or 5. Within 14 days of the underlying dispute, the aggrieved party submits a written grievance that outlines the details of the complaint to the Grant Manager of the administering agency. The Grant Manager will attempt to resolve the complaint through informal mediation or facilitation. If the matter is resolved, and a written agreement is reached, the aggrieved party will agree to forego filing a formal grievance in the matter under consideration. If the grievance is not resolved, the Grant Manager must inform the aggrieved party of his or her right to file a formal grievance.
If Option 2 did not resolve the issue, the aggrieved party can consider Options 3, or file a formal grievance (Options 4 or 5).
Option 3: Alternative Dispute Resolution (ADR). The aggrieved party may seek resolution through alternative means of dispute resolution such as mediation or facilitation. Dispute resolution proceedings must be initiated within 45 calendar days from the date of the alleged occurrence. At the initial session of the dispute resolution proceedings, the party must be advised in writing of his or her right to file a grievance and right to arbitration. If the matter is resolved, and a written agreement is reached, the party will agree to forego filing a grievance in the matter under consideration.
If mediation, facilitation, or other dispute resolution processes are selected, the process must be aided by a neutral party who, with respect to an issue in controversy, functions specifically to aid the parties in resolving the matter through a mutually achieved and acceptable written agreement. The neutral party may not compel a resolution. Proceedings before the neutral party must be informal, and the rules of evidence will not apply. With the exception of a written and agreed upon dispute resolution agreement, the proceeding must be confidential.
Formal Grievance Process (Options 4 and 5)
Option 4: Grievance procedure for unresolved complaints. If the matter is not resolved within 30 calendar days from the date the informal dispute resolution process began, the neutral party must again inform the aggrieving party of his or her right to file a formal grievance. In the event an aggrieving party files a grievance, the neutral may not participate in the formal complaint process. In addition, no communication or proceedings of the informal dispute resolution process may be referred to or introduced into evidence at the grievance and arbitration hearing. Any decision by the neutral party is advisory and is not binding unless both parties agree.
Time limitations. Except for a grievance that alleges fraud or criminal activity, a grievance must be made no later than one year after the date of the alleged occurrence. If a hearing is held on a grievance, it must be conducted no later than 30 calendar days after the filing of such grievance. A decision on any such grievance must be made no later than 60 calendar days after the filing of the grievance.
Option 5: Arbitration
- Arbitration – Joint selection by parties. If there is an adverse decision against the party who filed the grievance, or 60 calendar days after the filing of a grievance no decision has been reached, the filing party may submit the grievance to binding arbitration before a qualified arbitrator who is jointly selected and independent of the interested parties.
- Arbitration – Appointment by Corporation. If the parties cannot agree on an arbitrator within 15 calendar days after receiving a request from one of the grievance parties, the Corporations Chief Executive Officer will appoint an arbitrator from a list of qualified arbitrators.
Time Limits
- Proceedings. An arbitration proceeding must be held no later than 45 calendar days after the request for arbitration, or, if the arbitrator is appointed by the Chief Executive Officer, the proceeding must occur no later than 30 calendar days after the arbitrator’s appointment.
- Decision. A decision must be made by the arbitrator no later than 30 calendar days after the date the arbitration proceeding begins.
Suspension of placement. If a grievance is filed regarding a proposed placement of a participant in a program that receives assistance under this chapter, such placement must not be made unless the placement is consistent with the resolution of the grievance.
Remedies. Remedies for a grievance filed under a procedure established by a recipient of Corporation assistance may include –
(1) Prohibition of a placement of a participant; and
(2) In grievance cases where there is a violation of nonduplication or nondisplacement requirements and the employer of the displaced employee is the recipient of Corporation assistance –
(i) Reinstatement of the employee to the position he or she held prior to the displacement;
(ii) Payment of lost wages and benefits;
(iii) Re-establishment of other relevant terms, conditions and privileges of employment; and
(iv) Any other equitable relief that is necessary to correct any violation of the nonduplication or nondisplacement requirements or to make the displaced employee whole.
Suspension or termination of assistance. The Corporation may suspend or terminate payments for assistance under this chapter.
Effect of noncompliance with arbitration. A suit to enforce arbitration awards may be brought in any Federal district court having jurisdiction over the parties without regard to the amount in controversy or the parties’ citizenship.