An overview on employment and training as it relates to higher education is presented as part of the American Council on Education's Higher Education/Comprehensive Employment and Training Act (CETA) Project, which was supported by the Fund for the Improvement of Postsecondary Education. Attention is directed to the linkage between higher education and the federally-funded CETA program. The philosophical orientation of the CETA program, dollars expended, and persons served by the program are considered. Among the main functions of colleges working with the CETA program are the delivery of credit-based and job-specific classroom training and the provision of support services to participants. Training should enable workers to enter the job market, advance in their present job, or keep pace with technology. Two options for postsecondary institutions interested in working with the CETA program include a nonfinancial agreement or a contract with a prime sponsor. The contractual basis offers the institution a wide range of opportunities, including: credit- and noncredit-oriented direct services to individuals, credit- and noncredit-oriented professional staff development, research and evaluation projects, and technical assistance and consultation services. Attention is directed to policy issues related to participants, organizations and personnel, educational finance, curricula, institutional evaluation, and to college involvement with employment and training programs established through operational alliances or decision-making influence. Strategies for providing decision-making influence on the local and state levels and information on federal employment legislation are presented. (SW)