This guidance supersedes the Office of Career, Technical, and Adult Education (OCTAE) Program Memorandum (PM) 20-2 published May 10, 2023, and rescinds OCTAE PM 17-7 "WIOA Annual Performance Report Submission," published September 12, 2017, developed jointly by the U.S. Departments of Labor and Education (the Departments). Through this updated guidance, the Departments: (1) Revise the negotiations process and requirements to incorporate changes made in the Workforce Innovation and Opportunity Act Effectiveness in Serving Employers Performance Indicator final rule (89 FR 13814 (Feb. 23, 2024)) (ESE final rule). This final rule, which took effect March 25, 2024, defines the Effectiveness in Serving Employers primary indicator of performance (ESE), as required by section 116(b)(2)(A)(i)(VI) of the Workforce Innovation and Opportunity Act (WIOA), as Retention with the Same Employer. The ESE final rule requires states to report the indicator as a shared indicator across the six WIOA core programs; (2) Include requirements for the annual performance report submission requirements to encompass all requirements in OCTAE PM 17-7; (3) Clarify the standard for meeting requirements for submission of Eligible Training Provider results; and (4) Clarify the standard for meeting requirements for local area performance negotiations. This guidance also continues to delineate the process for negotiating levels of performance, as required by section 116(b)(3)(A)(iv) of WIOA; the process for assessing state performance; and explains the two instances in which a state may be sanctioned (including the imposition of those sanctions), namely for performance failure or for failure to report (section 116(f) of WIOA).