Defense Worker Dislocation Act

Defense Worker Dislocation Act - Amends the Job Training Partnership Act (JTPA) to revise eligibility requirements for the Defense Conversion Adjustment Program (program). Authorizes the Secretary of Labor to make program grants to specified types of eligible entities in any State in which: (1) the Governor has received a notification regarding a closure, cancellation, or reduction under the Defense Economic Adjustment, Diversification, Conversion, and Stabilization Act of 1990; and (2) eligible employees have received a notification of warning from their employer regarding such closure, cancellation, or reduction. Allows use of program grant funds for retraining or to update existing skills with respect to an eligible dislocated worker, including an employee of an eligible defense contractor or subcontractor, who has been terminated or laid off, or received notice of termination or layoff, as a consequence of reductions in U.S. expenditures for defense or by closures of U.S. military facilities. Allows program grant funds also to be used to pay for the Federal share (75 percent) of such retraining with respect to an employee of eligible defense contractors or subcontractors if: (1) the employee is currently involved in defense work; (2) the retraining is designed to enable the employee to achieve placement and retention in unsubsidized employment that involves nondefense work and in which the employee has not been previously engaged; and (3) the employer certifies that the employee would have become an eligible dislocated worker without such retraining. Revises program administration provisions. Allows program grants to be used to reimburse an entity for funds expended under JTPA provisions for Dislocated Workers. Provides that program grants shall be: (1) in addition to assistance under any other JTPA Dislocated Worker provision; and (2) made without regard to whether the entity has expended funds available under such other provision. Deems to be an eligible employee (for purposes of JTPA general requirements) a person who can benefit from, and is most in need of, program services. Directs the Secretary to prescribe program performance standards solely on the basis of placement and retention in unsubsidized employment (notwithstanding other JTPA provisions for performance standards).