OJT and Other Mysteries of the Universe

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OJT and Other Mysteries of the Universe

• More, (or less), than you ever wanted to know
  about OJTs

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OJT stands for
On-the-Job Training
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On-The-Job Training Definition The Workforce
Investment Act of 1998 Title I Workforce
Investment SystemsSubtitle A Workforce
Investment Definitions, Section
101(31) statesOn-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
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(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 or 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.
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Local On-the-Job Training (OJT) Policy

• a. OJTs will be limited to 5,000 or 520
  hours, whichever occurs firstb. There are no
  exceptions

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Local On-the-Job Training (OJT) Policy

• c. Employers must contribute at minimum, the
  California minimum wage or at least 50 of the
  OJT whichever is greaterd. Wherever possible a
  minimum 5 increase should be negotiated upon
  successful completion of OJT or exiting from the
  program

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e. ITAs (Individual Training Accounts) and OJTs
can be combined as long as it stays under 7,500
cap, f. OJTs will apply to both adults and
dislocated workers
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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 at least 50 of the
OJT, whichever is greater.
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Federal Stuff
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).)
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More Federal Stuff

• 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).)

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More Federal Stuff (continued)

• 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).)

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Even More Federal Stuff (continued)

• 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

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Yet Still More Federal Stuff

• According to Office of Management and Budget
  (OMB) Circular No. A-133 Revised to show changes
  published in the Federal Register June 27, 2003
  Non Federal entities are prohibited from
  contracting with or making sub-awards under
  covered transactions that are suspended or
  debarred or whose principals are suspended or
  debarred.
• You may check employers at the Excluded
  Parties List System http//www.epls.gov/

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I Think I Can Fake My Way Through the Regs,Now
What?

• Find a GOOD, preferably Private Sector,
  Employer who is interested in OJT
• Explain the policy and procedure
• Make sure the job is Permanent/Full Time
• Make sure the employer has current Workmans
  Compensation and Liability Insurance (you will
  need a copy of the certificate of Insurance)

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Always

• Get a copy of the job description
• Ask for a tour of the facility
• Explain the client must be enrolled in WIA prior
  to starting the OJT
• Explain that the Master Agreement and Referral
  Form must be completed BEFORE the client starts
  working

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Always

• Check O-Net http//online.onetcenter.org to
  determine what a reasonable period of training
  would be. It doesnt always have to be 520 hours!
• Negotiate a reimbursement rate. It doesnt always
  have to be 50!
• Remember ideally OJTs should be in High Demand,
  High Wage, High Growth Occupations that offer
  career path opportunities!

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Lets Contract!!!

• Complete the OJT Master Agreement (It it strongly
  urged that you walk it through)
• You may do a Master Agreement before you identify
  a trainee
• Send the 3 Originals to OPIC (It is strongly
  urged you also keep an original for a total of 4
  originals)
• Complete the OJT Referral Form
• Complete Employer Information Worksheet and get
  Union Concurrence if Employer has a bargaining
  agreement
• Keep Copies of Everything!!!

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Remember

• The Employer must pay the Trainee the same
  starting hourly wage as anyone else in that
  classification
• The Trainee is to be treated as any other
  employee.
• The Trainee works for the employer, not the WIB
• It is expected the Trainee will become a
  permanent full time employee upon completion of
  the OJT

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Before Anyone Starts On an OJT

• OJT Agreement must be signed and approved!!!
• Client must be Enrolled!!!
• There should be NO exceptions!!!

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You Aint Done Yet!!!

• You will need to verify invoices and verify hours
  worked
• You will need to Monitor the training using the
  OJT Monitoring Report Form. Do this at the first
  invoice.
• Keep copies of all timesheets and/or timecards

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The End

• Actually, its just the beginning. You will
• find that every OJT is a little different.
• Just when you thought you heard it all,
• you havent. Something new and totally
• unexpected will happen.
• So,
• Be Prepared and Be Creative.
• Good Luck!!!
• (Dont call me, Ill call you)