Bay Consortium Workforce Investment Board, Inc

Policy #00-05

Effective Date: March 7, 2001

Revised: July 1, 2002

BAY CONSORTIUM WORKFORCE INVESTMENT BOARD, INC.

ON-THE-JOB TRAINING POLICY

Purpose: To establish policies and criteria to be used in the development of and the administration of “on-the-job” training.

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I.Purpose of Program

The purpose of the “on-the-job” training program (hereafter referred to as OJT) is to provide primarily full-time unsubsidized employment and training for Workforce Investment Act (WIA) eligible individuals. The OJT program departs from traditional practice in that it may be characterized as a hire first, train later program. While the primary focus is on the participant, the employer is offered an incentive to offset those additional expenses associated with the provision of training that is in addition to normal training costs.

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II.Employer Eligibility

1. Any public agency, private non-profit, or private sector organization, is eligible for participation and funds under the OJT program if it meets the OJT criteria as outlined herein.

1. All employer organizations, in order to qualify for an OJT contract, should generally satisfy the following conditions:

a.Must have the personnel to provide adequate supervision and training;

b. Must provide a minimum of 50% of the employee’s wage throughout the training;

Individuals in on-the-job training must be compensated at the same rates, including periodic increases, as trainees or employees who are similarly situated in similar occupations by the same employer and who have similar training, experience, and skills. Such rates must be in accordance with applicable law, but may not be less than the higher of the rate specified in section 6 (a)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 206 (a)(1) or the applicable State of local minimum wage law.)

1. Must provide benefits and working conditions at the same level and to the same extent as other trainees or employees working a similar length of time and doing the same type of work.

1. Must not have a history or 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.

1. Be fully established and operating successfully for at least one year prior to the date of Contract Proposal and must not have relocated from any location in the United States within 120 days, if the relocation resulted in any employee losing his or her job at the original location;

1. Must not use OJT assignments to displace regular employees, or to replace any employee on layoff.

1. Receive a recommendation by an appropriate professional, industry, business association, Chamber of Commerce, or Better Business Bureau.

1. No more than 25% of the work force, including the OJT participants will be under on OJT contract. Any exception to this rule must be approved in advance by the Executive Director of the Workforce Investment Board. Request for an exception must be made in writing

1. Must provide a copy of the organization’s certification of incorporation, business license or other evidence of having established a business able to operate under local or state regulations.

1. Must provide a letter, if person signing contract is other than owner, that the person has signatory authority to sign and enter into an OJT contract.

1. Be willing to hire WIA eligible individuals for their regular work force on a “Hire First-Train Later” basis.

1. Include in the contract, an outline of job specific tasks to be learned by each OJT participant. Said tasks must be listed in addition to a job description.

1. If an employer is a member of the WIB, then that member shall submit to the WIB a written conflict of interest statement which would disclose any activity related to WIA and OJT.

1. Employers having a union agreement or company policy that provides pre-employment rights to individuals who are laid-off as a result of a reduction shall not be eligible for an OJT project during such a lay-off status for the occupations of jobs affected until all similarly employed persons on lay-off status have been given the opportunity to return to work. Employers having an on-going OJT project at the time of a reduction or lay-off shall give the OJT employees the same consideration as other workers similarly employed persons. Under no circumstances shall OJT employees displace regular company employees who are similarly employed.

III.Participant Eligibility

Persons to be hired and trained under an OJT contract must:

1. Meet WIA training eligibility requirements established by U.S. Department of Labor, Virginia Employment Commission, and Bay Consortium Workforce Investment Board.

1. The OJT meets the identified training needs of the participant, according to an individual employment plan or service strategy.

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IV. Length of Training

An OJT contract must be limited to the period of time required for a participant to become proficient in the job for which the training is designed. In determining the appropriate length of the contract, consideration should be given to the skill requirements of the job, the academic and occupational skill level of the participant, prior work experience, and the participant’s individual employment plan or service strategy. The training plan must describe a timeline for completion of the training. The Specific Vocational Preparation Code (SVP) must be used in determining the appropriate length of on-the-job training. Training cost is limited to $3,000 per participant. The following chart shows the maximum length of OJT training approved by the Workforce Investment Board per SVP code:

SVP Code

The following general criteria will be used in evaluating OJT proposals and in establishing funding priorities when OJT funds are limited.

A.Basic qualifying criteria (prevailing wage rates, general working conditions and general education development);

B.Ability to meet all provisions of applicable health, safety, child labor, work hours, workmen’s compensation and unemployment insurance laws;

C.Benefit to program participants in terms of occupation, skill training offered, initial wage rate, earnings and advancement potential (when applicable) and stability of employment; proposers agreeing to employ participants currently enrolled in WIA training programs;

D.Contract costs, when measured against the design and adequacy of the OJT proposal contents to provide maximum benefits to OJT participants; and

E.If applicable, past performance under prior OJT contract program. Contract award and funding determination will be made by contractors selected by BCWIB.

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V. Payments to employers

1. Are deemed to be compensation for the extraordinary costs associated with training participants including additional supervision, training and the costs associated with the lower productivity of the participants, and those extraordinary costs need not be documented by the employer; and

1. Must not be in excess of 50 percent of the wage rate of the OJT participant.

VI. Administration

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1. OJT will be administered by a contractor selected through the RFP or Consortium Agreement process by BCWIB.

B.Responsibilities include:

1.Market OJT program throughout a specified area.

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1. Complete pre-award assessment to determine if the employer is a perspective OJT contractor.

1. Obtain the information and write the contract.

1. Offer technical assistance to employers.

a.Invoice voucher preparation

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1. Compliance with contract and WIA regulation

1. Time, payroll and financial record requirements

1. Clarify any questions or concerns of employer

1. Termination Form preparation

1. Be responsible for any changes/modifications to all OJT contracts with employers

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1. Encourage employers to use the apprenticeship program on all feasible job classifications.

1. Ensure that all OJT positions meet the following criteria:

a.Be developed only for occupations in which there is demand

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1. That full-time employment be available after training is provided

1. OJT positions are prohibited in occupations which require a license unless said licensing is a part of OJT training.

VII.Records Maintenance

The contractor and/or OJT employer shall maintain the following:

1. WIA application, Counseling Logs, Civil Rights Letter, Complaint and Grievance Procedure, and any other required forms for each participant.

1. Signed Nepotism Statement.

1. Participant attendance, time and payroll records.

1. Copies of invoices.

1. Receipts for expenditures for the supportive services (Transportation, Child Care, and Medical/Dental).

Contractors and OJT employer records are subject to audit upon request of the BCWIB. The Contractor and OJT employer shall retain all records for a period not less than three years subsequent to the final payment under this contract and the resolutions of all audits.

VIII.Invoicing

Payments to the OJT employers by the contractor must be documented by an acceptable invoicing method.

IX.General Provisions/Grant Assurances and Certifications

All contacts and OJT employers must adhere to the General Provisions/Grant Assurances and Certifications as written and established by BCWIB.

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