20A - LABOR TECHNICAL SIKLLS TRAINNING GRANT

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Workforce Investment Act (WIA) section 101(31). Incumbent workers are not eligible for OJT under this SGA. OJT is provided under a contract with an employer in the public, private - nonprofit, or private sector. Through the OJT contract, occupational training is provided for the the grant participant in exchange for the reimbursement to the employ r nup to 50 d r dual fThe wage rate to compensate for the employer's extraordinary costs employer pays wages to the participant. Section 667.264 of the WIA regulations specifically prohibit grant funds from being spent on payment of wages of Incumbent employees. For complete information on the specific WIA parameters for OJT, please refer to WIA regulations 20 CFR 663.700 — 663.710, as well as 20 CFR 663.730. Applicants will be required to follow A law and regulations with the following policy the parameters for OJT included in the WI exceptions: ® Eligible participants cannot be currently employed by the employer; • Participant placements may only occur in private for - profit and non - profit sectors (.i.e., sector placements); the grant does not allow for public . ® encies providing workers on a temporary bask to No placement may be made in ag employers for which the agency receives compensation from the employer; The- period -o# reimbu senient- should- be- an-adequate- length-to °ensure- the- participant-has acquired the technical skills needed for employment but no longer than 12 months. Individuals may not be co- enrolled in other ETA programs for the purpose of extending OJT beyond 12 months. Twelve months exceeds the average length.of time for current. WIA OJT activities, so grantees should negotiate contracts with employers that lead to transitioning participants to permanent employment as soon as possible. DOL's expectation Is that grantees would.establish contracts that may be longer than 12_ months, however, the reimbursement for each individual that participates in OJT cannot be longer than 12 months. Typically, the negotiated reimbursement percentage for OJT under WIA may be as high as 50 percent of the participant's hourly wage. However, for grants awarded under this Solicitation, the negotiated reimbursement percentage may be as high as 90 percent of the participant's hourly wage based on employer.size: up to 90 percent of the participant's wage rate for employers with 50 or fewer employees; up to 75 percent of the participant's wage rate for employers with 51 -250 employees; and up to 50 percent for employers with more than 250 employees. Grantees are also encouraged to negotiate lower rates.or variable rates (such as starting at 90 and reducing the subsidy over time) where possible to ensure that the maximum number of participants Is served by the project. Finally, upon receipt of a graht, applicants must develop sound on- the - job - training (OJT) contracts. The contract process sets the ground -rules for an OJT with an employer and assists in making the determination if an employer is eligible to provide an OJT opportunity. The contract must include the federally- required elements of an OJT agreement; however, states, counties or municipalities may have additional contract requirements.' Contracts also outline the terms and conditions that the employer -and OJT provider agree to. provide for an OJT experience. Contracts with an employer can be set up for a specific period of time but need not necessarily specify the individual trairees to whom they apply. This allows the employer to provide training to more than one trainee. If an employer only has one position or plans to limit the training experience to one employee, then a contract must also include the individual trainee's information. For these grants, contracts must provide that the employer is responsible far documenting skills gained by participants during the training period. It should also include a description of how the reimbursement level was determined. For sample templates and other resources, grantees may access ETA's on -line technical assistance related to an OJT contract at the following web address: https :Hojtt6olkit.workforce3one.org /page /contracts_and_mods 17 20A -28