SOUTHWESTERN AREA
WORKFORCE DEVELOPMENT BOARD

Southwestern Area Guidance Letter 13-01

On-the-Job Training Waiver

Date of Issue: / August 1, 2015
Effective Date: / August 1, 2015
Applicability: / Workforce Innovation & Opportunity Act Adult & Dislocated Worker Programs
Purpose: / In accordance with the Southwestern Area Workforce Development Board policy, 12-03.1 – On-the-Job Training Policy, as revised, this guidance letter outlines the content requirements and steps for requesting a waiver on the hourly wage rate.
Background: / Local areas within the workforce region may not have job placement opportunities with employers at an hourly rate that meets the contracted amounts with a service provider. Service providers may submit a request for a waiver to issue an OJT contract below the average earning negotiated performance level to be able to place a participant into a job opening.
Action: / A.STEPS TO REQUESTING A WAIVER
  1. Obtain management approval to submit a waiver request
  2. Gather the necessary information required in Section B of this guidance letter
  3. Submit the waiver request in letter format to:
WIOA Administrator
Administrative Entity
Southwestern Area Workforce Development Board
PO Box 1072
Elephant Butte, NM 87935
  1. The administrative entity will respond to the request within three working days
  2. If approved, proceed with issuing the OJT contract with the employer at the approved rate
B.CONTENT REQUIRED
  1. Indicate the proposed hourly rate for the job opening, job title, name of company, industry, number of employees that are employed with the company, number of previous OJT contracts and retention outcomes
  2. Provide documentation supporting the lack of job opportunities within the area
  3. Describe the efforts taken to search for job openings that pay the hourly rate established in the service providers contract
  4. Describe how placement into this job opening will result in better skills that are needed for advancement, which are described in the Individual Employment Plan (IEP) and will lead to a higher rate of pay and retention for that employee
  5. Indicate the number of OJT contracts previously issued and their average wage rates to demonstrate that there is sufficiency cushion to issue an OJT contract below the service provider’s contracted average earnings level

Inquires: / Questions related to this guidance letter should be directed to the Administrator at PO Box 1072, Elephant Butte, NM 87935 or by calling (575) 744-4857.
Signature
& Date: / / /