Hiring workfare applicants? An increasing number of states are passing laws to prevent employers from dumping current staff in favor of workfare applicants, for whom employers can receive tax credits and wage subsidies. Last year’s Welfare Reform Act included a federal ban on displacing current employees. But critics say the federal law is too vague, allowing employers too many exceptions. Congress might impose tougher restrictions in the months ahead. Even if Congress or your state hasn’t cracked down, play it safe and make sure a workfare hire fills a new position.
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