I.Purpose

To outline the policy parameters and provide direction to local areas for providing OJT to participants under the OJT National Emergency Grant (NEG) 2010 grant.

II.Effective Date

July 1, 2010 through June 30, 2012

III.Background

OJT activities are training services provided to eligible participants via an OJT agreement between the local area and the employer. Such an agreement, along with the associated participant training plans, specifies the duration of training as well as the skills and competencies to be acquired by the participant. Employers who provide OJT are reimbursed for their extraordinary costs of training the participant based on a percent of trainee wages during the training period. The length of the training period depends on the funding source of the OJT, the complexity of the job, as well as the participant's skills and prior work experience. Employers must commit to hire and retain the participant at the end of a successful training period. In sum, OJT provides an incentive to employers to hire individuals and invest in their skill development, and trainees can earn a wage as they learn.

The ARRA-funded OJT NEG is an effective and time efficient response to the present challenging labor market conditions. Through this grant, the state aims at matching dislocated workers experiencing prolonged unemployment with employers facing skill shortages to culminate in "jump starting" a hiring decision.

The OJT program under the NEG will be implemented on a statewide basis.

As part of the NEG request, the United States Department of Labor (USDOL) approved a sliding scale for employer reimbursement based on employer size. However, the state is not mandating the use of the sliding scale and local areas can continue using the standard 50% wage reimbursement rate if they choose to do so. Alternatively, local areas are encouraged to revise existing local OJT policy to utilize the optional sliding scale or develop new OJT policy to implement the sliding scale under certain specific situations. Possible situations that could warrant the use of the sliding scale may include:

• For individuals facing significant barriers to employment;
• For small and mid-sized businesses that would qualify for a higher reimbursement rate;
• Local areas with higher than average unemployment rate;
• For small and mid-sized businesses offering an exceptional level of training;
• For small and mid-sized businesses providing benefits and a higher wage rate;
• In case of small and mid-sized businesses using expensive tools or equipment to provide training;
• For small and mid-sized businesses providing significant workplace safety precautions and safety training; and/or
• The availability of OJT funding in the local area.

The OJT NEG will continue to be promoted at a 50% reimbursement rate with the utilization of the sliding scale on a case-by-case basis, as determined by the local areas.

IV.OJT Definition

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 a percentage 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.

V.Requirements

A.Participant Eligibility

Before approving an OJT, the local area will assess the potential participant to ensure suitability for the OJT. The assessment, at a minimum, shall include the occupation's particular skill requirements, the participant's academic and occupation skill level, prior work experience, level of job difficulty, and the participant's IEP (individual employment plan). The results of this assessment will be used, in part, to determine the appropriateness of and suitability for the OJT.

Each OJT NEG participant must document some connection to Ohio by meeting one of the following criteria:

1.Lives within Ohio; or

2.Lives within a reasonable commuting distance of the Ohio border and the OJT placement will be at a worksite in Ohio; or

3.The OJT placement will be at a worksite in Ohio and there is a reasonable expectation that the worker will be establishing permanent residence in Ohio.

Eligibility under the NEG-funded OJT is limited to dislocated workers (as defined in WIA section 101(9)) experiencing prolonged unemployment and who are laid off on/after January 1, 2008.

Prolonged unemployment refers to a period of joblessness beyond the state's average weeks of Unemployment Insurance (UI). The number of weeks is the important indicator, not the UI status. Therefore, an individual not covered by UI (ineligible or exhaustee) may still be identified as experiencing prolonged unemployment if s/he exceeds the specified duration. In Ohio, the average weeks of UI duration is 22.53 weeks or 158 days.

The 158 days of prolonged unemployment do not need to be consecutive. Dislocated workers are permitted to secure interim employment and, when that employment ends, to rejoin the period of prolonged unemployment at the point they left off.

Interim employment is defined as employment that has been accepted for income maintenance prior to, and/or during, participation in intensive or training services with the intention of ending such employment at the completion of the intensive or training services with entry into permanent unsubsidized employment as a result of the services. Interim employment is accepted because the affected workers have lost the customary work for which their training, experience, or work history qualifies them. Interim employment can be part-time or full-time. Consideration may be made to categorize employment as "interim" when the worker does not have access to health care and is seeking a new job that provides this coverage.

When determining whether a participant is prolonged unemployed, the time period that the participant is employed at the interim job should not be counted toward the 158 day span of joblessness.

For example, a dislocated worker remained jobless for 100 days following his dislocation date, and then accepted an interim job working five days per week for six weeks (i.e., 42 days total, including days off). The first day following the end of the interim employment would count as the dislocated worker's 101st day of unemployment. After an additional 58 days with no job, the participant would reach the minimum requirement of 158 days of prolonged unemployment and qualify for the OJT NEG. In this example, a total of 200 days will have elapsed since the original dislocation date, with 42 days spent in interim employment and the required 158 days of prolonged unemployment.

Trade participants: Participants who are eligible for assistance under TAA (trade adjustment assistance) are not eligible to receive funding under the OJT NEG.

If a participant is already enrolled in a NEG-funded OJT and subsequently becomes eligible for funding through TAA, the local area must determine whether to continue funding the OJT with NEG dollars or to fund the remainder of the training with TAA funds based on the following criteria:

1If the NEG-funded OJT uses a different wage reimbursement rate than the Trade program's OJT policy allows, the participant's OJT may continue to be funded by the NEG until completion;

2.If the NEG-funded OJT uses a different payment point than the Trade program's required OJT payment point, the participant's OJT may continue to be funded by the NEG until completion;

3.If the NEG-funded OJT uses the same wage reimbursement rate and payment point as the Trade program OJT, the local area must make arrangements for the remainder of the OJT to be funded by TAA beginning at the next payment point. Local areas must coordinate with Trade staff to develop a plan for transitioning participants from one funding stream to another without negatively affecting the employer.

Regardless of whether participants remain in the NEG-funded OJT or transition to TAA funding, it is required that the participant be co-enrolled in both the NEG and Trade programs and that the OJT be approved under both programs (even if it is being fully funded by NEG dollars) to ensure the participant may qualify for other associated Trade benefits and services.

Participants in other NEGs: Participants who are eligible for assistance under other existing NEGs in Ohio are not eligible to receive funding under the OJT NEG.

An OJT NEG Eligibility Checklist is available from ODJFS to ensure participants meet all of the above provisions. The checklist must be completed for every OJT NEG participant and maintained in the participant's WIA case file.

OJT participants are not eligible to receive Needs Related Payments (NRPs). Further, OJT participants cannot be members of the immediate family of the employer or its Officers. Note: refer to the OJT procedures manual for the different situations in which OJT-related conflict of interest may arise.

B.Employer Eligibility

Eligible employers include only those in the private-for-profit and non-profit sectors; public sector employers are not considered eligible employers under the OJT NEG (i.e. not a governmental agency, unit or department). Further, casinos or other gambling establishments, zoos, swimming pools, aquariums, or golf courses are also considered ineligible for the OJT program under this grant.

The employer providing the OJT and/or the OJT worksite does not have to be located within Ohio's borders. Unless prohibited by the local area's OJT policy, an area may negotiate OJT agreements and issue OJT NEG funding to employers outside Ohio's borders.

Private placement agencies cannot receive OJT funding under the NEG. The OJT NEG program is intended to benefit dislocated workers by utilizing employers who are:

1)Willing to train participants who are in need of upgrading their skills; and

2)Willing to permanently hire trainees at the end of the training period.

OJT contracts should be written with the employers who are actually employing participants and assuming the costs and benefits of the OJT. For these reasons, OJT contracts should not be written with employment brokers such as hiring agencies, temporary placement agencies or other third party entities. The OJT NEG also prohibits OJT agreements with employers who train a participant employed by a third party staffing agency.

Targeted employers are those included in the statewide targeted industries' list, regional Ohio Skills Bank designated industries and employers hiring local demand occupations. The statewide targeted industries include the following:

• Advanced Energy & Environmental Technologies
• Aerospace and Aviation
• Agriculture and Food Processing
• Bioscience and Bio-products
• Corporate and Professional Services
• Distribution and Logistics
• Instruments, Controls, and Electronics
• Motor Vehicle and Parts Manufacturing
• Polymers and Advanced Materials
• Banking and Insurance

Disqualifying factors: Employers will be disqualified from participating in the OJT NEG in the following situations:

• Failure to retain: 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.
• Failure to provide comparable working conditions: 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 working conditions including compensation that is comparable to other workers in the same situation.
• Safe working conditions: The employer must comply with all applicable federal, state, local laws and regulations related to providing safe and clean working conditions. OJT participants are not permitted to train or work in buildings or surroundings under working conditions that are unsanitary, hazardous, or dangerous to the trainee's health or safety.
• Relocation: If during completion of the employer information form, it is determined that a business has relocated and caused dislocation at the original location, OJTs may be available at the new location only after the business has commenced the relocated work for more than 120 days. Note: refer to the OJT procedures manual for factors to be considered in determining whether relocation has occurred.
• Layoff: If the employer has laid off someone from a similar or "substantially equivalent" work, no OJT or other subsidized employment is permitted. If the overlap between the work (duties and job titles) is 80% or greater, the work is substantially equivalent. Note: refer to the OJT procedures manual for "layoff" definition.
• Worker displacement: 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.

C.Employer Information Form (Pre-award review)

Prior to the placement of an OJT participant, employer pre-screening must be conducted and an information form must be completed to ensure that the employer meets the minimum standards and can provide both training and continued employment to the OJT participant. The employer information form may be completed once rather than each time an OJT is approved. In case of a collective bargaining agreement, both the employer and union must provide concurrence before the OJT begins.

Employers must assure that documentation related to the statements made on the employer information form is available upon request for monitoring purposes.

Local areas may use the state's Employer Information Form template or develop their own form so long as they include all required elements as described in the OJT procedures manual.

D.OJT NEG Intermediaries

Local areas are encouraged to establish procedures to enable community-based organizations, labor unions, Chambers of Commerce, government agencies and other intermediaries to recruit and refer targeted workers and potential employers to participate in the OJT NEG. Intermediaries are a valuable community resource in ensuring the success of the OJT NEG initiative and may also play critical roles in providing supportive services for OJT participants, barrier removal services, and community outreach and awareness. An MOU between the local areas and the intermediary is recommended to define duties and responsibilities between the concerned parties.

E.Funding/Allocation

Local areas requesting OJT NEG funds are required to develop local OJT policy and/or ensure that their existing local policy conforms to the requirements outlined in this policy letter. The state will award funds to local areas on a first-come, first-served basis as a statewide initiative. Local areas are to email ODJFS with funding requests. Each local funding request shall not exceed the dollar amount required to cover the cost of the OJT agreement(s) on the request. ODJFS will review these requests and issue an allocation letter for the approved amount. The OJT NEG funds will be available for expenditure through June 30, 2012. Local areas will receive allocations as OJTs are developed, ensuring that grant funds are disbursed on a "real time" basis rather than projected service levels.

Core, intensive and supportive services are not allowable services/costs under the OJT NEG; however, OJT participants can be provided these services from other funding sources.

F.Employer Reimbursement

Wage cap: Under the OJT NEG, the employer reimbursement is capped so as not to exceed the state's average hourly wage rate, up to a maximum of $8,000 per participant. The participant's wage rate will at least equal the state's minimum wage rate ($7.30 per hour) and can exceed the state's average wage rate ($19.37 per hour); however, the reimbursement to employers is capped at the state's average wage rate. Thus, although employers may pay participants over $19.37 per hour, OJT wages to be reimbursed cannot exceed $19.37 per hour.

For instance, a participant in Ohio may enter OJT as an insurance cost estimator at an hourly wage of $28.50 (above the wage cap). Since the average hourly wage for Ohio is $19.37, the employer may only be reimbursed at some percentage of this wage cap determined by the employer's size for areas using the sliding scale. However, the employer must compensate the participant at the same rate as other workers performing the same job with similar levels of training, experience, and skills.

Reimbursement rate/ Sliding Scale: The USDOL sliding scale uses the following considerations to determine reimbursement rate:

• Up to 90% for employers with 50 or fewer employees;
• Up to 75% for employers with 51-250 employees; and
• For employers with more than 250 employees, the existing 50% reimbursement rate will continue to apply.

Employer size is based on the size of the company's local operation where the OJT placements will be made, and not on the total nationwide employment. For instance, a hotel chain that employs thousands nationwide, but only 40 at its company in the targeted region, may be eligible for reimbursement up to 90%, when reimbursement is determined based on size. In determining the geographic boundaries that define the employer's local operation, local areas should use their best judgment based on analysis of each employer's size and structure.

The employee head count, in determining the OJT sliding scale, shall include workers at each worksite within an employer's local operation. In addition, the following guidelines should be applied while determining head count:

1.Include all full time and part time workers and temporary and permanent workers at the work site including all managers and front line workers;

2.Include any individuals employed by a staffing agency who are subject to the day to day control of the host employer;

3.Do not use "FTE's." Every worker counts as "1;"

4.Include individuals employed within the same local operation;

5.Do not include individuals employed by and subject to the day to day control of other employers or independent contractors;

6.The "head count" is a snapshot. Use the best, good faith estimate given by the employer on the day when the OJT employer information form is completed.

Payment points: Local areas can develop their own procedure regarding when to reimburse training costs so long as the reimbursement does not exceed 50% of wages or the higher rate based on the sliding scale if appropriate. Local areas also have discretion in determining if they wish to withhold employer reimbursement for 30, 60 or 90 days to ensure retention after the end of training. However, local areas must ensure that this information is reflected in their local policy, the OJT agreement and OJT plan.

Invoice: Payments to employers should be managed by an invoice system that documents the number of hours worked by the OJT participant and the hourly rate of pay. Local areas can develop their own invoice forms and are not mandated to follow state templates.

G.OJT Agreement

One OJT agreement - blanket agreement - will be written per employer for a maximum period up to June 30, 2012, regardless of the number of participants trained or hired. Careful employer screening, through completion of the employer information form, will precede the OJT agreement. The OJT agreement, while establishing the reimbursement procedures, remains a non-financial agreement, and no money is obligated until the OJT plan is approved for an eligible participant.

The agreement should be modified before expiration only if there are significant changes, such as layoffs or changes in OJT rules and/or policy.

H.OJT Plan

Local areas will work with the OJT employer to develop an OJT plan that includes the individual and employer attestation that s/he will meet all conditions set forth in the OJT agreement. For the OJT plan, local areas may utilize the template available in the OJT procedures manual or may create their own form that meets all required elements.

Unlike the OJT agreement, an OJT plan is required for each participant. The plan is expected to outline the planned training activities, the total amount of reimbursement obligation per participant, and provide instructions for making skill assessments and ensuring delivery of contracted services. The following types of activities are prohibited from OJTs:

• Sectarian activities: Funds provided to employers for OJT may not be used to employ the participant/trainee in a position involving political or sectarian activities. Further, OJT participants may not assist, promote or deter union organizing, or engage in political activities during work hours.
• Religious activities: 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 providers may base the identification of skills needed and justification of training duration upon O-NET and SVP (specific vocational preparation), company job description, input from the employer/supervisor and/or other appropriate data sources.

At the end of the OJT period, local areas must document "ending capability" for each skill to be learned on the OJT plan.

I.Duration

The OJT duration under the NEG is limited to six (6) months (1,040 hours), with all money required to be spent by June 30, 2012. Co-enrollment is not allowed to expand the training duration beyond the 6 month period. No provision exists to offer additional training time to participants with significant barriers. If there is a break in employment, the duration of the OJT plan can extend beyond the allowed six month period but cannot exceed the 1,040 hours or the June 30, 2012 end date.

J.Monitoring

Local areas are encouraged to develop their own monitoring policies to outline the procedures, frequency and manner in which OJTs will be monitored and how staff persons/monitors will resolve any findings of non-compliance.

At a minimum, monitors should:

• Document information received directly from the OJT participants;
• Obtain the trainee supervisor's perspective about the training progress; and
• Review the employer payroll records.

The key monitoring issues include verifying and documenting:

• The need for training;
• Training was provided to the participant;
• The length of OJT training was reasonable;
• The employer reimbursement rate complied with policy; and
• Other applicable OJT rules and requirements were followed.

K.Reporting

All OJT participants served under the NEG will be counted in statewide performance and must be entered in SCOTI WIA, Special Grants. Participants may be co-enrolled in local formula-funded WIA programs. Co-enrolled participants will be counted in both statewide and local performance.

Reporting of Participants Not Hired By the Employer Who Provided OJT: Local areas are required to follow up with employers to determine the employment outcome of participants. Upon completion or early termination of the NEG-funded OJT, local areas must identify and report all participants who were not hired by the employer that provided the training. Further, they must also identify if the participant was placed in OJT-related employment (i.e. unsubsidized employment within an industry or occupation in which the individual uses a substantial portion of the skills acquired in the OJT, but where hiring by the employer that provided the OJT did not occur.)

For all NEG-funded OJT participants not hired by the employer that provided OJT, the local area must e-mail the participant's name to NEG@odjfs.state.oh.us and also identify whether the participant was placed in OJT-related employment within thirty (30) days of OJT completion.

L.OJT Forms

The following forms must be completed. For more information, refer to the OJT procedures manual.

• OJT NEG Requirements Checklist
• Employer Information Form
• OJT Agreement
• OJT Plan

VI.Technical Assistance

For additional information, you may send your questions to the Office of Workforce Development: WIAQNA@JFS.OHIO.GOV.

VII.Reference

USDOL waiver letter dated June 30, 2010

OJT NEG Program and Policy Q&A

Workforce Investment Act Final Rules, 20 CFR Part 652, Section § 663.700-710 and 667.268

OJT Procedures Manual

USDOL TEGL 04-10

WIAPL 08-18 (Project HIRE)

WIAPL 08-06.1 (NEG Wilmington)

USDOL's OJT NEG Toolkit: https://ojttoolkit.workforce3one.org/

Ohio's OJT NEG website: https://jfs.ohio.gov/owd/Initiatives/OJT-NEG.stm

Fiscal Rule 5101:9-31-66

Rescission

WIAPL 09-10