I.Purpose

To outline the federal and state requirements for providing OJT to participants being served under the Workforce Investment Act (WIA) programs.

II.Effective Date

Immediately

III.Background

OJT activities provided under WIA support the development of a workforce with skills that meet the needs of employers and provide additional training options for workers and employers. The state wants to ensure Ohio workers and employers will receive consistent and efficient services from the One-Stop center network regardless of the worker's county of residence or the local workforce investment area with which the worker is involved. OJT activities are provided to eligible participants via an OJT agreement between the One-Stop and the employer.

IV.Requirements

OJT is a training option for eligible WIA participants or eligible employees of an employer. OJT is available to youth, adults, and dislocated workers. This type of training is an option for individuals when formal skill training is either not desired, suitable, or not possible on a full-time basis or when suitable in combination with other formal training.

OJT is provided under an agreement with an employer in the public, private non-profit or private for-profit sector to WIA eligible employed workers when:

• The employee is not earning a self-sufficient wage as determined by the local area;
• The OJT relates to the introduction of new technologies, new production or new procedures, upgrading to new jobs that require additional skills, workplace literacy, and other appropriate purposes identified by the local board; and
• The limitations as defined in this policy letter, WIA, and the Federal Regulations.

OJT participants must receive wages, benefits, and working conditions that are equal to those provided to regular employees who have worked a similar length of time and are doing the same type of work. Appropriate workers compensation insurance protection must also be provided to all OJT participants by the employer.

WIA section 101(31) defines OJT as training by an employer that is provided to a paid participant while engaged in productive work in a job that:

• Provides knowledge or skills essential to the full and adequate performance of the job;
• Provides reimbursement to the employer of up to 50% of the wage of the participant, for the extraordinary costs of providing the training, and additional supervision related to the training; and
• Is limited in duration as appropriate to the occupation for which the participant is being trained, taking into account the content of the training, the prior work experience of the participant, and the service strategy of the participant, as appropriate.

A.OJT Considerations

1.Consideration of high turn over occupations should be avoided because high turnover occupations usually have high replacement rates. High replacement rates are determined as when a worker exits an occupation, not a particular job. High turnover occupations tend to have below average wages, difficult working conditions, and low training and education requirements. In certain situations, where the return on investment or potential earnings may warrant or the needs of a specific customer are reasonable, such opportunities may be the subject of negotiation.

2.Individuals who have a significant barrier to employment such as an American with Disabilities Act (ADA) defined disability may be considered for longer agreement duration, up to 50% additional hours when compared to typical length of a similar OJT, not to exceed a maximum of 1,560 hours.

3.Individuals who have completed formal training via an Individual Training Account (ITA) may be considered for OJT if it creates an opportunity for a positive outcome.

4.When matching customers to OJT opportunities using local WIA formula funds, attention should be given to self-sufficiency based on family/household size. (See WIAPL 08-12.2)

5.Youth ages 14 to 21 qualify for OJT. However, such training may not be an appropriate activity for youth participants under age 18 whose employability plan is focused on completion of secondary education rather than employment. Case managers should be familiar with child labor laws when developing OJT agreements for youth.

B.Limitations

The duration of OJT agreements shall not exceed a 3 to 6 month period unless extenuating circumstances exist, in which case appropriate documentation is required. Only "straight time" wages for hours worked and paid to the OJT participant are reimbursable and shall not exceed 50% of paid hourly wages. Overtime premiums, holiday pay, benefits, and fringe benefits are not reimbursable.

The local WIB must not enter into an agreement with an employer who has previously exhibited a pattern of failing to provide OJT participants with continued long-term employment.

OJT participants may not assist, promote or deter union organizing, or engage in political activities during work hours. OJT participants are prohibited to be employed in the construction, operation, or maintenance of any facility which is used for religious instruction or worship. OJT participants are not permitted to work or train in buildings or surroundings under working conditions which are unsanitary, hazardous, or dangerous to the trainee's health or safety. The employer must comply with all applicable federal, state, and local laws and regulations.

Training positions covered may not have been created by the displacement of employed workers in the same or similar position, nor impair existing contracts for services, nor result in the substitution of federal funds for other funds in connection with work that would otherwise be performed. This includes partial displacement such as reduction in the hours of non-overtime work, wages, or employment benefits.

OJT participants are not eligible to receive Needs Related Payments (NRPs).

OJT participants can not be members of the immediate family of the employer or its Officers.

Funds provided to employers for OJT may not be used to employ the customer/trainee in a position involving political or sectarian activities.

C.OJT Pre-Award Review

Prior to the placement of an OJT participant, a pre-award review must be conducted to ensure that a business or part of a business has not displaced workers as the result of relocation from another location within the United States. If during the pre-award review it is determined that a business has relocated and caused dislocation at the original location, OJTs may be available at the new location after the business has been operational for 120 days.

The pre-award review must include the following information:

1.Names under which the establishment does business, including predecessors and successors of interest;

2.Name, title, and address of the company official certifying the information;

3.Review of whether WIA assistance was sought in connection with past or impending job losses at other facilities;

4.Review of whether Worker Adjustment and Retraining Notification (WARN) notices relating to the employer have been filed; and

5.Consultation with labor organizations and others in the affected local areas.

6.Review and documentation of employer's compliance with all applicable business licensing, taxation and insurance requirements.

Employers must assure that documentation is available upon request for monitoring purposes.

The pre-award review must be maintained for monitoring purposes to ensure compliance with the requirements.

D.Required Components of an OJT

1.Pre-award review;

2.Collective bargaining concurrence, for applicable positions;

3.An OJT agreement with general assurances that outline both parties' responsibilities;

4.Job orders from the employer must be entered into SCOTI by selecting "job development";

5.Training outline with goals, gaps to be addressed or other learning objectives;

6.An objective process to determine the necessary duration of the agreement;

7.An assessment of candidates to determine skill gaps as they may relate to employer custom requirements/qualifications;

8.A locally defined monitoring process to ensure satisfactory progress of the participant; and

9.A payment process.

E.Employer Eligibility

Careful consideration should be given when selecting a participating employer. General business practice in terms of working conditions (safety and health), presence of health benefits, wage structure, turnover rates, adequate staff and equipment to carry out the training, and whether the employer is in compliance with federal, state and local laws are examples of potential business functions to research.

The employer is required to certify his/her intention to retain the trainee after the subsidized training period if the trainee accomplished the stated training goals outlined in the OJT agreement.

Individual trainee payroll tax records and receipts for services (if applicable) must be maintained and available for review for a minimum period of three years after the end of the training period.

F.Reporting

All participants must be eligible and enrolled in WIA. Participants will be counted for local performance and must be entered in SCOTI WIA. Participants may also be co-enrolled in other statewide funded WIA programs. Participants co-enrolled in a statewide initiative will be counted in both statewide and local performance.

V.Technical Assistance

For additional information, send your questions to the Ohio Department of Job and Family Services, Office of Workforce Development: WIAQNA@JFS.OHIO.GOV.

VI.References

DOL waiver approval letter, November 12, 2009

Office of Workforce Development, Waiver Request Plan, July 24, 2009

Workforce Investment Act of 1998, Public Law 105-220

Workforce Investment Act Final Rules, 20 CFR Part 652, Section § 663.700 and 667.268

OAC Rule 5101:9-9-21 County Agency Records Retention, Access, and Destruction APMTL 342