OJT and Other Mysteries of the Universe

1. OJT and Other Mysteries of the Universe More, (or less), than you ever wanted to know about OJT’s

2. OJT stands for: On-the-Job Training

3. On-The-Job Training Definition: The Workforce Investment Act of 1998 Title I –Workforce Investment SystemsSubtitle A – Workforce Investment Definitions, Section 101(31) states:“On-The-Job Training - The term “on-the-job training” means training by an employer that is provided to a paid participant while engaged in productive work in a job that:

4. (A) provides knowledge or skills essential to the full and adequate performance of the job; (B) provides reimbursement to the employer of up to 50% of the wage rate of the participant, for the extraordinary costs of providing the training and additional supervision related to the training; and (C) is limited in duration as appropriate to the occupation or 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.”

5. Local On-the-Job Training (OJT) Policy: a. OJT’s will be limited to $5,000 or 520 hours, whichever occurs firstb. There are no exceptions

6. Local On-the-Job Training (OJT) Policy: c. Employers must contribute at minimum, the California minimum wage or at least 50% of the OJT whichever is greaterd. Wherever possible a minimum 5% increase should be negotiated upon successful completion of OJT or exiting from the program

7. e. ITA’s (Individual Training Accounts) and OJT’s can be combined as long as it stays under $7,500 cap, f. OJT’s will apply to both adults and dislocated workers

8. Employers Responsibility Employer agrees to employ the participant and provide such OJT services as are set forth in the OJT Referral Form. Employer agrees to certify the skills and accomplishments obtained by the participant under the OJT Referral Form. Employer agrees to provide each participant with a certificate of Skill Attainment for the training hours, skills and tasks obtained during the OJT program as set forth in the OJT Referral Form. Employers must contribute at minimum, the California minimum wage or at least 50% of the OJT, whichever is greater.

9. Federal Stuff § 663.700(a) On-the-job training (OJT) is defined at WIA section 101(31). OJT is provided under a contract with an employer in the public, private non-profit, or private sector. Through the OJT contract, occupational training is provided for the WIA participant in exchange for the reimbursement of up to 50 percent of the wage rate to compensate for the employer's extraordinary costs. (WIA sec. 101(31)(B).)

10. More Federal Stuff • § 663.700(b) The local program must not contract with an employer who has previously exhibited a pattern of failing to provide OJT participants with continued long-term employment with 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. (WIA sec. 195(4).)

11. More Federal Stuff (continued) • § 663.700(c) An OJT contract must be limited to the period of time required for a participant to become proficient in the occupation for which the training is being provided. In determining the appropriate length of the contract, consideration should be given to the skill requirements of the occupation, the academic and occupational skill level of the participant, prior work experience, and the participant's individual employment plan. (WIA sec. 101(31)(C).)

12. Even More Federal Stuff (continued) • Requirements for OJT Contracts for Employed Workers OJT contracts may be written for eligible employed workers when: § 663.705(a) The employee is not earning a self-sufficient wage as determined by Local Board policy; § 663.705(b) The requirements in § 663.700 are met; and § 663.705(c) The OJT relates to the introduction of new technologies, introduction to new production or service procedures, upgrading to new jobs that require additional skills, workplace literacy, or other appropriate purposes identified by the Local Board. Please refer to Action Bulletin # 5 dated 9/23/00 http://www.acwib.org/faq/1.7.htm

13. Yet Still More Federal Stuff According to Office of Management and Budget (OMB) Circular No. A-133 Revised to show changes published in the Federal Register June 27, 2003 “Non Federal entities are prohibited from contracting with or making sub-awards under covered transactions that are suspended or debarred or whose principals are suspended or debarred”. You may check employers at the Excluded Parties List System http://www.epls.gov/

14. You Ain’t Done with Federal Stuff Yet SEC. 181. REQUIREMENTS AND RESTRICTIONS. • (d) Relocation.-- • (1) Prohibition on use of funds to encourage or induce relocation.--No funds provided under this title shall be used, or proposed for use, to encourage or induce the relocation of a business or part of a business if such relocation would result in a loss of employment for any employee of such business at the original location and such original location is within the United States. • (2) Prohibition on use of funds for customized or skill training and related activities after relocation.--No funds provided under this title for an employment and training activity shall be used for customized or skill training, on-the-job training, or company-specific assessments of job applicants or employees, for any business or part of a business that has relocated, until the date that is 120 days after the date on which such business commences operations at the new location, if the relocation of such business or part of a business results in a loss of employment for any employee of such business at the original location and such original location is within the United States. • (3) Repayment.--If the Secretary determines that a violation of paragraph (1) or (2) has occurred, the Secretary shall require the State that has violated such paragraph to repay to the United States an amount equal to the amount expended in violation of such paragraph.

15. I Think I Can Fake My Way Through the Regs,Now What? • Find a GOOD, preferably “Private Sector”, Employer who is interested in OJT • Explain the policy and procedure • Make sure the job is Permanent/Full Time • Make sure the employer has current Workman’s Compensation and Liability Insurance (you will need a copy of the certificate of Insurance)

16. Always • Get a copy of the job description • Ask for a tour of the facility • Explain the client must be enrolled in WIA prior to starting the OJT • Explain that the Master Agreement and Referral Form must be completed BEFORE the client starts working

17. Always • Check O-Net http://online.onetcenter.orgto determine what a reasonable period of training would be.It doesn’t always have to be 520 hours! • Negotiate a reimbursement rate. It doesn’t always have to be 50%! • Remember ideally OJT’s should be in High Demand, High Wage, High Growth Occupations that offer career path opportunities!

18. Let’s Contract!!! • Complete the OJT Master Agreement (It it strongly urged that you walk it through) • You may do a Master Agreement before you identify a trainee • Send the 3 Originalsto OPIC (It is strongly urged you also keep an original for a total of 4 originals) • Complete the OJT Referral Form • Complete Employer Information Worksheet and get Union Concurrence if Employer has a bargaining agreement • Keep Copies of Everything!!!

19. Remember: • The Employer must pay the Trainee the same starting hourly wage as anyone else in that classification • The Trainee is to be treated as any other employee. • The Trainee works for the employer, not the WIB • It is expected the Trainee will become a permanent full time employee upon completion of the OJT

20. Before Anyone Starts On an OJT • OJT Agreement must be signed and approved!!! • Client must be Enrolled!!! • There should be NO exceptions!!!

21. You Ain’t Done Yet!!! • You will need to verify invoices and verify hours worked • You will need to Monitor the training using the OJT Monitoring Report Form. Do this at the first invoice. • Keep copies of all timesheets and/or timecards

22. The End Actually, it’s just the beginning. You will find that every OJT is a little different. Just when you thought you heard it all, you haven’t. Something new and totally unexpected will happen. So, Be Prepared and Be Creative. Good Luck!!! (Don’t call me, I’ll call you)