§ 12636. Notice, hearing, and grievance procedures
(a)
In general
(1)
Suspension of payments
The Corporation may in accordance with the provisions of this subchapter, suspend or terminate payments under a contract or grant providing assistance under this subchapter, or revoke the designation of positions, related to the grant or contract, as approved national service positions, whenever the Corporation determines there is a material failure to comply with this subchapter or the applicable terms and conditions of any such grant or contract issued pursuant to this subchapter.
(2)
Procedures to ensure assistance
The Corporation shall prescribe procedures to ensure that—
(b)
Hearings
Hearings or other meetings that may be necessary to fulfill the requirements of this section shall be held at locations convenient to the recipient of assistance under this subchapter.
(c)
Transcript or recording
A transcript or recording shall be made of a hearing conducted under this section and shall be available for inspection by any individual.
(d)
State legislation
Nothing in this subchapter shall be construed to preclude the enactment of State legislation providing for the implementation, consistent with this subchapter, of the programs administered under this subchapter.
(e)
Construction
Nothing in this subchapter shall be construed to link performance of service with receipt of Federal student financial assistance, other than assistance provided pursuant to this chapter.
(f)
Grievance procedure
(1)
In general
An entity that receives assistance under this subchapter shall establish and maintain a procedure for the filing and adjudication of grievances from participants, labor organizations, and other interested individuals concerning projects that receive assistance under this subchapter, including grievances regarding proposed placements of such participants in such projects.
(2)
Deadline for grievances
Except for a grievance that alleges fraud or criminal activity, a grievance shall be made not later than 1 year after the date of the alleged occurrence of the event that is the subject of the grievance.
(3)
Deadline for hearing and decision
(4)
Arbitration
(A)
In general
(i)
Jointly selected arbitrator
In the event of a decision on a grievance that is adverse to the party who filed such grievance, or 60 days after the filing of such grievance if no decision has been reached, such party shall be permitted to submit such grievance to binding arbitration before a qualified arbitrator who is jointly selected and independent of the interested parties.
(B)
Deadline for proceeding
An arbitration proceeding shall be held not later than 45 days after the request for such arbitration proceeding, or, if the arbitrator is appointed by the Chief Executive Officer in accordance with subparagraph (A)(ii), not later than 30 days after the appointment of such arbitrator.
(C)
Deadline for decision
A decision concerning a grievance shall be made not later than 30 days after the date such arbitration proceeding begins.
(D)
Cost
(i)
In general
Except as provided in clause (ii), the cost of an arbitration proceeding shall be divided evenly between the parties to the arbitration.
(ii)
Exception
If a participant, labor organization, or other interested individual described in paragraph (1) prevails under a binding arbitration proceeding, the State or local applicant described in paragraph (1) that is a party to such grievance shall pay the total cost of such proceeding and the attorneys’ fees of such participant, labor organization, or individual, as the case may be.
(5)
Proposed placement
If a grievance is filed regarding a proposed placement of a participant in a project that receives assistance under this subchapter, such placement shall not be made unless the placement is consistent with the resolution of the grievance pursuant to this subsection.
(6)
Remedies
Remedies for a grievance filed under this subsection include—
(E)
in a case in which the grievance involves a violation of subsection (a) or (b) of section
12637 of this title and the employer of the displaced employee is the recipient of assistance under this subchapter—
(i)
reinstatement of the displaced employee to the position held by such employee prior to displacement;
(iii)
reestablishment of other relevant terms, conditions, and privileges of employment of the displaced employee; and
(iv)
such equitable relief as is necessary to correct any violation of subsection (a) or (b) of section
12637 of this title or to make the displaced employee whole.