Under the 2023 Wagner‑Peyser Act Staffing final rule, “merit staffing requirements” mean that Employment Service (ES) services must be delivered by state merit (civil‑service/classified) staff rather than non‑merit or entirely contract staff — i.e., states must use state‑merit employees in their staffing models for ES delivery in American Job Centers.
The Employment Service (ES) is the federal-state labor‑exchange program established under the Wagner‑Peyser Act and is a core WIOA program. ES provides jobseekers (career counseling, job search and placement, reemployment services) and labor‑exchange services to employers. ES services are delivered through the nationwide American Job Center network (co‑located one‑stop centers) and are administered by the Department of Labor’s Employment and Training Administration and state workforce agencies.
Before Jan. 21, 2027 (the extended compliance date), states are required to put in place staffing models that meet the Wagner‑Peyser 2023 staffing rule — principally to have Employment Service delivered by state merit (civil‑service/classified) staff (or otherwise meet the specific staffing conditions set in the 2023 final rule) in their American Job Centers. The extension simply moves the deadline for completing those staffing changes to Jan. 21, 2027 while related rulemaking proceeds.
The July 1, 2025 proposed rule (NPRM) would remove the 2023 requirement that States use state merit staff to provide Wagner‑Peyser Employment Service — i.e., it proposed rescinding the merit‑staffing mandate so States could choose other staffing models for ES delivery. The NPRM frames this as a deregulatory step to give States greater flexibility.
Removing the merit‑staffing requirement could have different effects depending on state choices: potential benefits include greater state/local flexibility, faster use of hybrid/contract staffing models, and administrative cost savings; potential risks include reduced job protections and standards for ES workers, variable service quality across states, and possible disruption for workers currently in merit positions. Impacts on jobseekers would depend on how states design staffing — services could stay the same or change in access, continuity, and quality.
You can read the DOL announcement of the compliance‑date extension and links there to the rule at the Department’s news release; read the 2023 Wagner‑Peyser Act Staffing final rule in the Federal Register (Nov. 24, 2023); and read the July 1, 2025 NPRM proposing to remove merit‑staffing requirements on the Federal Register docket.