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On-the-Job Training. Kristina Payne, Lane Workforce Partnership Janice Frater, Worksystems, Inc. OJTs: What We’ll Cover. Funding Sources & Eligibility Federal Requirements Design Local Policy Decisions Employer Qualifications Agreement Training Plans & Supplemental Training Plans

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On the job training

On-the-Job Training

Kristina Payne, Lane Workforce Partnership

Janice Frater, Worksystems, Inc.

Ojts what we ll cover
OJTs: What We’ll Cover

  • Funding Sources & Eligibility

  • Federal Requirements

  • Design

    • Local Policy Decisions

    • Employer Qualifications

    • Agreement

    • Training Plans & Supplemental Training Plans

    • Terminations

  • Employer Recruitment

  • Oversight & Monitoring

  • Questions

Ojts funding sources eligibility
OJTs: Funding Sources & Eligibility

  • WIA Formula Funds

    • WIA Eligibility Rules Apply

  • Back-to-Work Oregon

    • Unemployed Oregon Residents

  • Dislocated Worker Training NEG

    • Match for BTW OR

    • Dislocated Worker unemployed for 27 weeks or longer

    • Go to Wednesday’s NEG Session for more detail

  • I-Trac will assist with eligibility determination and provide a mechanism to identify customer records that are designated as BTW Match OJTs for performance reporting. Can do the same for other grants that have Match requirements.

Ojts federal requirements
OJTs: Federal Requirements

  • The following are Federal requirements that must be in place for all OJT placements, regardless of funding source.

  • OJT participants must receive equal pay and benefits as other employees with equivalent job responsibilities and duties.

  • The maximum reimbursement to employers is 50 percent of wages throughout the duration of training; this excludes fringe benefits.

  • Reimbursement for overtime hours, holidays and vacation days is not permitted.

  • Position must be considered permanent and expected to last beyond the training period.

  • Training plans must be individualized and are not to include training that all new employees receive.

  • If the job is covered by collective bargaining agreement, must have written concurrence from Union.

Ojts federal requirements1
OJTs: Federal Requirements

  • WIA funds may not be used as part of an attraction package, to entice or encourage a business to relocate from any location in the U.S.

  • If a relocation within the U.S. has occurred within the past 120 days that resulted in employee job losses at the previous location, the company must operate for at least 120 days in the new location prior to being eligible for OJT funds.

  • OJT funds provided to employers cannot be used to directly or indirectly assist, promote or deter union organizing.

Ojts federal requirements2
OJTs: Federal Requirements

  • An OJT participant may not be employed or assigned to a job if:

    • Another individual is currently on layoff from the same or equivalent job; or

    • The employer has terminated the employment of a current employee or caused an involuntary reduction in its workforce with the intent of filling the vacancy with an OJT participant

Ojts design
OJTs: Design

  • Local Policy Decisions

    • Structure

      • Contract Agreement for each trainee

        • Identifies trainee and defines specific training

        • Obligates funds

        • Requires a new contract with employers each time a new trainee is identified

      • Umbrella Contract Agreement with Employer & Individual Training Plans for each trainee

        • Defines program requirements

        • Agreement does not obligate funds – covers a period set by local area, e.g. 1 program year, 2 program years

        • Individual Training Plans obligate funds

        • New Agreement is not required for each trainee

Ojts design1
OJTs: Design

  • Local Policy Decisions

    • OJT Payment Options

      • Pay period reimbursement

      • Two payment plan

        • At completion of training

        • At completion of retention period (usually 90 days)

      • Caps or No Caps

        • Set a maximum regardless of training costs

      • Calculations are exactly the same for both: Up to 50% of the actual hourly wage rate for actual hours worked

    • Pros and Cons

Ojts design2
OJTs: Design

  • Local Policy Decisions

    • Staffing Agencies – Yes or No?

      • Are there OJT employer candidates in your community that hire only through staffing agencies?

    • If yes, there are different ways to structure the product

      • Manage through payment structure

      • Draft agreements and payment invoices modified to address the staffing agency involvement

        • Three-way Agreement: You, Staffing Agency, Employer

        • Four-way Training Plan: You, Staffing Agency, Employer, Trainee

        • Payment should have some tie to trainee moving from staffing agency to regular employee of company

Ojts design3
OJTs: Design

  • Local Policy Decisions

    • Supplement Federal Requirements

      • Minimum requirements for OJT positions

        • Full-Time versus Part-Time

          • Minimum number of hours to qualify for OJT – i.e. 30 hours/week

        • Hourly pay rate

          • Require more than minimum wage?

        • Benefits

          • No requirement

          • Require at least medical insurance

            • with or without employer contribution?

Ojts design4
OJTs: Design

  • Local Policy Decisions

    • Length of Training

      • Will a minimum and maximum length of training be set?

      • Guided by Specific Vocational Preparation (SVP) estimates

      • Will exceptions be allowed

        • When and how?

Ojts design5
OJTs: Design

  • Employer Qualification

    • Employer Checklist – Business Set-Up Information

      • Company History

        • Gets to relocation information

      • Products & Services

        • Gets to NAICS

      • Employment patterns

        • Staffing agency?

      • Skills

        • Informs participant matches for referrals

      • Turnover Patterns

        • Gets to retention

      • Commission-based Positions

        • Need to understand about base pay versus commission, tips, piece work or incentives – may have OJT qualification issues

Ojts design6
OJTs: Design

  • Employer Qualification

    • Employer Checklist – Compliance Assurances

    • Signatures and Agreement language marry the two documents

      • Payroll System

        • Gets at ability to document hours worked appropriately

      • Workers Compensation

      • Independent Contractor

        • Does not qualify for an OJT

      • Collective Bargaining Agreement

        • Requires Union concurrence

      • Employees in lay-off status

      • Outstanding wage & hour issues

      • Has company relocated

      • Previous OJT trainee retention information

Ojts design7
OJTs: Design

  • Agreement

    • Regardless of the type of Agreement, the Employer Checklist should be completed first and any issues that arise resolved to assure employer is qualified to receive OJT payments

    • Must outline the rules of the program

    • Include a start and end date

    • Be signed by persons authorized to legally bind the company and the contractor to the terms of the Agreement

Ojts design8
OJTs: Design

  • Training Plans

    • Look up the position in O*NET and use this tool to establish for the training plan www.online.onetcenter.org/

      • SVP estimates for length of training plan

      • Tasks, knowledge, skills and abilities for the position

Ojts design9
OJTs: Design

  • Training Plans

    • Skills to be learned should be based on job skills required that are not ‘trained-to’ for all new employees

    • Utilize position job description for skills specifics to the company that employee needs training on

    • Establish employee starting capability and ending capability to document

      • Where the trainees start skill set is

      • What the employer considers successful

      • That the trainee has successfully completed the training

Ojts design10
OJTs: Design

  • Supplemental Training Plans

    • Provides an opportunity for employers to send OJT trainee to outside training program, e.g.:

      • GED certification

      • Class at a college

      • Seminar or training session on specific technical skill

      • Things to think about when providing a supplemental training option

      • Overall caps – what does your policy say?

      • Who gets reimbursed?

    • A Supplemental Training Plan helps make sure everyone’s clear

Ojts design11
OJTs: Design

  • Terminations

    • Questions to ask yourself when the trainee is terminated:

      • Did the trainee receive training from the employer that could be utilized elsewhere?

      • Did the employer do everything he/she could do to assist the employee in learning new skills?

      • Did the employer invest a significant amount of time in training the new employee?

      • Was the employee terminated for cause – or did he/she quit?

      • If you answered yes to all of the above, you have justification for reimbursing the employer the agreed upon amount.

      • Conversely, if the trainee reports mistreatment and/or lack of training, guidance or support from the employer – you have justification not to reimburse the employer for training plan hours not worked and/or the retention payment

      • AND not to engage in any future OJT placements with the company.

Ojts employer recruitment
OJTs: Employer Recruitment

  • You are not alone in recruiting employers! Use your community partners – they love OJT!

    • Local Chambers of Commerce

    • Economic Development Agencies

    • Sector Consortiums

    • Oregon Employment Department (of course!)

Ojts oversight monitoring
OJTs: Oversight & Monitoring

  • OJTs are staff intensive

  • Require file documentation

  • Local areas need to have a compliance monitoring plan and follow it

  • Sample tools

    • File checklist

    • Monitoring checklist


  • Kristina Payne

  • Janice Frater

    • Worksystems, Inc.

      Director, Information Systems

      Compliance Manager

      [email protected]