I.Purpose

The purpose of this policy is to provide guidance to Trade Representatives developing Trade OJTs for TAA participants.

II.Effective Date

Immediately

III.Background

The Trade Adjustment Assistance Program (TAA) is a federal program established under the Trade Adjustment Assistance Reauthorization Act of 2015 that provides aid to workers who lose their jobs or whose hours of work and wages are reduced as a result of increased imports.

OJT is work-based training that is provided by an employer to a participant. During the OJT training period, the participant is engaged in productive work in a job for which he or she is paid, and the training provides knowledge or skills necessary for the full and adequate performance of the job.

IV.Requirements

A.Participant Eligibility for TAA OJT

After a TAA petition is certified by DOL, Trade eligible workers must participate in a Benefit Rights Information (BRI) session and then complete an initial assessment with a Trade Delivery Professional (TDP). Once completed, Trade eligible workers may apply for reemployment and training services. To be eligible for Trade OJTs, the six TAA criteria for training must be met.

B.TAA Criteria for Training

The six criteria that must be met for a participant to receive training are:

1.There is no suitable employment available for the Trade affected worker.

2.The Trade affected worker would benefit from appropriate training.

3.There is a reasonable expectation of employment following completion of such training.

4.Training is reasonably available to the Trade affected worker.

5.The Trade affected worker is qualified to undertake and complete such training.

6.Training is suitable for the Trade affected worker and available at a reasonable cost.

C.Employer Responsibility Criteria

The employer must ensure that OJT participants 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.

OJT participants cannot be immediate family members of the business owner or direct supervisor. OJT participants are not eligible to receive needs related payments (NRPs).

The employer must comply with all applicable federal, state, and local laws and regulations related to providing reasonable 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.

Businesses must not be presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in transactions by USDOL or the State of Ohio.

Businesses must not owe any outstanding tax liability to the State or Federal government more than six months past due.

Businesses must not have any outstanding civil, criminal or administrative fines or penalties owed to or pending in the state of Ohio.

An agreement cannot be made with an employer who has previously exhibited a pattern of failing to provide OJT participants with continued long-term employment.

Currently employed workers cannot be displaced, this includes partial displacement such as reduction in the hours of non-overtime work, wages or employment benefits.

The position for the OJT applicant is not being created in a promotional line which will infringe in any way upon the promotional opportunities of currently employed individuals.

Training does not impair existing contracts for services or collective bargaining agreements. If the training is in any way inconsistent with the terms of a collective bargaining agreement, the labor organization must give written agreement.

If the business has relocated and caused a dislocation at the previous location, an OJT will only be available after the business has conducted work at the new location for more than 120 days.

Prohibited OJT Activities

The following types of activities are prohibited:

1.Political activities: Funds provided to employers for OJT may not be used to employ the participant/trainee in a position involving political or sectarian activities. Furthermore, OJT participants may not assist, promote or deter union organizing, or engage in political activities during work hours.

2.Religious activities: OJT participants are prohibited from being employed in the construction, operation, or maintenance of any facility which is used for religious instruction or worship.

3.Training outside the United States: OJTs will not be approved for training which is conducted totally or partially at a location outside of the United States.

D.Coordination with Workforce Innovation and Opportunity Act (WIOA)

Despite the similar criteria for training eligibility, there are differences in the federal regulations governing these programs; this may result in different terms, benefits and processes, depending on which funding stream is paying for a Trade participant’s OJT. The Trade program limits reimbursement of the Trade wages to 50 percent and mandates a monthly billing cycle.

If a participant is enrolled in a WIOA funded OJT and becomes eligible for funding through TAA, the Trade Representative should determine whether to continue funding the OJT with formula dollars or to fund the remainder of the training with TAA funds based on the following criteria:

If the WIOA-funded OJT uses a higher wage reimbursement rate than the maximum 50 percent wage reimbursement that Trade regulations allow, the OJT may continue to be funded by WIOA until completion, or may be transitioned to Trade funding, if feasible at the local area’s discretion;

If the WIOA-funded OJT uses the same wage reimbursement rate and payment point as the Trade program, the remainder of the OJT will be funded by TAA beginning at the next payment point. Coordination between the local workforce area and the Trade Representative is required to develop a plan to seamlessly transition participants to TAA funding without negatively impacting the employer or the participant.

It is required that the participant be co-enrolled in both the WIOA Dislocated Worker and Trade programs and that the OJT be approved under both programs to ensure the participant will be considered for other associated Trade benefits and services.

E.Use of Trade OJT Packet

The Trade OJT packet JFS 22794 contains the following forms that will be retained through FileNet at the Trade Support Office for monitoring purposes.

1.Employer Information Form

The Trade On-the-Job Training Employer Information form must be completed to ensure that the employer meets the minimum standards and can provide both training and long-term employment to the OJT participant. The Employer Information form must be completed prior to the placement of the OJT participant.

In the case of a collective bargaining agreement, it is necessary that the Employer Information form indicates this, and the employer is required to provide a letter from the union indicating union concurrence before the OJT begins.

The Trade On-the-Job Training Employer Information form must be updated:

a)If the business is sold or transferred;

b)A significant change affecting training, hiring, or job retention occurs; and

c)At least once a year from the date of initial completion.

2.On-the-Job Training Contract

The OJT contract sets the ground rules for the OJT with an employer and functions as the agreement between the employer, the participant, and the Trade program. The OJT contract provides a general outline of the training plan and obligates the training funds. The OJT contract constitutes a financial obligation between Trade and the employer, while authorizing the monthly reimbursement of training expenditures.

Trade OJT contracts are limited to a maximum of 104 weeks and must be completed on a case by case basis. It is expected that OJT participants will be retained at the completion of training.

3.On-the-Job Training Plan

All OJT contracts must include a training plan. A training plan must outline the structured job training plan and expected skill attainment of the OJT participant.

4.Additional On-the-Job Training Forms

a)On-the-Job Training Plan Modification

To modify the Trade OJT, the Individual Certification for TAA Training Contract-Modification form JFS 80641 is used, as needed. The most common modification is extending the training period.

b).Invoicing and Payment

Payments to employers should be managed by a system that documents the number of hours worked each day by the OJT participant and the hourly rate of pay.

Invoices for reimbursement are to be submitted to Tradeinvoice@jfs.ohio.gov on the OJT Reimbursement Invoice form JFS 81121. Payment is for straight time worked and does not include commissions, overtime pay, holiday or sick pay. Payments to employers must be based on scheduled raises and regular pay increases, if they occur.

V.Monitoring

Trade funded OJTs will be monitored by the state’s monitoring system. The program auditors will review the Trade OJTs, including reviewing the participant file for compliance with federal and state laws and regulations. Any issues will be handled through the state’s monitoring resolution process.

VI.Reporting

Participants must be eligible, they must be enrolled in the TAA program, and their information must be entered into the Ohio Workforce Case Management System (OWCMS) prior to beginning training.

Pursuant to WIOAPL 15-07.2 Source Documentation for Workforce Innovation and Opportunity Act Title I Program Eligibility, state and federal tax identification numbers of participants are considered Personally Identifiable Information (PII) and as such, subject to a higher level of security. Guidelines for safeguarding PII are outlined in WIOAPL 15-07.2 and must be followed.

VII.Technical Assistance

For additional information, contact tradecontracts@jfs.ohio.gov.

VIII.     References

20 C.F.R. § 617.21-22 and 617.25

USDOL, Training and Employment Guidance Letter No. 05-15, Operating Instructions for Implementing the Amendments to the Trade Act of 1974 Enacted by the Trade Adjustment Assistance Reauthorization Act of 2015 (TAARA 2015), (September 4, 2015).

USDOL, Training and Employment Guidance Letter No. 05-15, Change 1, Operating Instructions for Implementing the Amendments to the Trade Act of 1974 Enacted by the Trade Adjustment Assistance Reauthorization Act of 2015 (TAARA 2015), (September 23, 2016).