INFORMATION BULLETINS (PY 2005)

IB - #18 On-the-Job Training (OJT) Overview

IB - # 18
Effective Date: Immediately




INFORMATION BULLETIN


TO: All Employer Services Representatives (ESR’s) and All One-Stop
Career Center Managers

DATE: April 19, 2006

SUBJECT: On-the-Job Training (OJT) Overview

Purpose of Bulletin:

The purpose of this bulletin is to inform One-Stop Career Center Managers and ESR staff
as to the basic requirements of an OJT contract. This information was requested at the
March 30, 2006 Business Service/Employer Services meeting.

Citation(s):

Workforce Investment Act, Section 134 (d) (4), Section 134 (d) (4) (D) and Code of Federal Regulations §663.700 and 663.705


On-The-Job Training Definition:

The Workforce Investment Act of 1998
Title I –Workforce Investment Systems
Subtitle 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:
(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 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.”

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 50% of the
OJT, whichever is greater.

Training shall not exceed 520 hours or reimbursement shall not exceed $5,000.
(Under special circumstances, on a case by case basis and with proper justification, a
counselor could request a waiver to exceed $5,000 from the One-Stop Manager)
OJT’s must be in permanent, full-time (as described by the industry) employment.
On-the-Job Training (OJT) Requirements
§ 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).)
§ 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).)
§ 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).)
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

Information & Inquiries:

For further information contact Roy Bertuccelli at (510) 259.3833 or email rbertuccelli@acgov.org