11.7.2 Guidelines for W-2 Applicants or Ongoing Participants

There are three likely scenarios for W-2 applicants or participants who meet the definition of a drug felon:

1. The applicant or participant will be considered ineligible if he or she refuses to take a drug test. The individual can gain eligibility as long as he or she agrees to take a drug test.

2. The applicant or participant will be eligible for a reduced W-2 payment if he or she takes a drug test, and the test result is positive.

3. The applicant or participant will be eligible for full W-2 payment if he or she takes a drug test, and the test result is negative.

If an applicant has agreed to a drug test, he or she is considered eligible for a full W-2 payment while the worker is waiting for the test results. If the test result is positive, then the next possible payment month is sanctioned. The pre-sanction payment is to be reduced by not more than 15% for no fewer than 12 months, or for the participant’s remaining period of participation in a CSJ or W-2 T, if less than 12 months. Within these parameters, the sanction period and amount are set at the discretion of the worker. The number of months of the sanction period will be consecutive calendar months that continue irrespective of whether an individual moves between placements, moves on and off W-2, or receives a payment.

EXAMPLE 1: Scott applies for W-2 and reports a drug felony conviction he received three years ago. As he is being placed in a W-2 T, he is required to take a drug test to meet conditions of eligibility. Scott agrees to take the drug test and the results are positive. The worker applies a 10% reduction for 12 months to Scott’s W-2 payment starting in the next possible payment month.

EXAMPLE 2: Janet applies for W-2 and reports a drug felony conviction she received six years ago. Janet would not be required to take a drug test or subject to drug felon payment reduction since the conviction did not occur within 5 years of the W-2 application date.

If a participant is moving between a CSJ and W-2 T placement, the sanction period does not stop or start over with a different placement. If a participant is moving from a CSJ or W-2 T to a CMC placement, the payment reduction would stop during the CMC placement period but months would continue to be counted towards the sanction period. W-2 payment reduction resumes at the end of the CMC placement if the 12 month sanction period has not expired while the participant is in the CMC placement.

EXAMPLE: Holly applied for W-2 and received a drug felon sanction for 12 months beginning in January. She has been participating in a CSJ placement with a drug felon payment reduction for 3 months (from January through March). She moves into a CMC placement for months April and May. During the CMC placement Holly receives a full W-2 payment. However by the end of May, five months of the sanction period will have lapsed. When she moves back into a CSJ placement in June, the payment reduction will resume until December at which point the sanction period will end if the results of Holly’s drug test is negative.