Workforce Innovation and Opportunity Act Formula-Funded On-the-Job Training Policy

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1 Wrkfrce Innvatin and Opprtunity Act Frmula-Funded On-the-Jb Training Plicy Backgrund and Purpse The Wrkfrce Innvatin and Opprtunity Act (WIOA) defines n-the-jb training (OJT) as training by an emplyer that is prvided t a paid participant while engaged in prductive wrk in a jb that: Prvides knwledge r skills essential t the full and adequate perfrmance f the jb; Prvides reimbursement t the emplyer f up t 50 percent f the wage rate f the participant fr the extrardinary csts f prviding training and additinal supervisin related t training; and Is limited in duratin t the ccupatin fr which the participant is being trained, taking int accunt the cntent f the training, the prir wrk experience f the participant, and the service strategy f the participant, as apprpriate. Philadelphia Wrks adpts this plicy t guide the investment f WIOA title I funds in OJT pprtunities. The investment f funds will be driven by ur strategic pririties, high pririty ccupatins and related targeted industry clusters but mst imprtantly by lcal emplyers with an unmet wrkfrce need. Fund Reimbursement The maximum amunt fr each WIOA funded OJT per participant is $8,000. Philadelphia Wrks will typically reimburse an eligible emplyer up t 50 percent f an OJT participant s wage rate during the OJT (fr the extrardinary csts f prviding the training, including the ptential lwer prductivity f the OJT participants, and additinal supervisin fr OJT participants). Prviders must review actual csts t ensure they are cmmensurate with the type f training being prpsed. In limited circumstances, based n factrs including emplyer size, career seeker barriers, availability f funding, and ther applicable factrs, the wrkfrce system may determine it apprpriate fr the President/CEO f Philadelphia Wrks t waive the $8,000 funding cap t prvide additinal supprt. Philadelphia Wrks will reprt the number f waivers prvided and the factrs that led t the issuance f a waiver n a semi-annual basis t the Bard f Directrs. Fr thse OJT pprtunities that are funded thrugh temprary, grant r any ther federal/state dllars, the csts per trainee can exceed the training cap established by this plicy up t the maximum amunt permitted by the relevant funding surce. In limited circumstances, Philadelphia Wrks will increase the reimbursement level t up t 75 percent taking int accunt the fllwing factrs: The characteristics f the participants taking int cnsideratin whether they are individuals with barriers t emplyment; The size f the emplyer, with an emphasis n small businesses; The quality f emplyer-prvided training and advancement pprtunities, fr example if the OJT cntract is fr an in-demand ccupatin and will lead t an industry-recgnized credential; Other relevant factrs, as apprpriate. Prviders must dcument the factrs used when deciding t increase the wage reimbursement levels abve 50 percent up t 75 percent Philadelphia Wrks All rights reserved. Final - 1

2 Participant Eligibility Custmers f the PA CareerLink centers wh meet the eligibility requirements fr training will have access t OJT pprtunities. The length f training is determined by the apprved training plan. OJT pprtunities may be made available t unemplyed adults and dislcated wrkers wh: After an interview, evaluatin r assessment and career planning 1, staff have determined that the individual: Is unlikely r unable t btain r retain emplyment that leads t ecnmic selfsufficiency r wages cmparable t r higher than wages frm previusly emplyment thrugh career services. Is in need f training services t btain r retain emplyment leading t ecnmic selfsufficiency r wages cmparable t r higher than wages frm previus emplyment. Has the skills and qualificatins t participate successfully in training services. Have selected a prgram f training services that is directly linked t the emplyment pprtunities in the lcal area r the planning regin, r in anther area t which the individuals are willing t cmmute r relcate. Are unable t btain grant assistance frm ther surces t pay fr training. Are determined eligible in accrdance with the State and lcal pririty system, if training services are prvided thrugh the adult funding stream. The participant s case file must cntain a determinatin f need fr training services as determined thrugh the interview, evaluatin, r assessment and career planning infrmed by lcal labr market infrmatin and training prvider perfrmance infrmatin, r thrugh any ther career services received. In additin t bjective trainee assessments, all OJT requests are subject t review by Philadelphia Wrks and must be reasnable based n factrs such as trainee experience, apprpriate hurly wages, trainee needs, wrk experience and any ther relevant factrs. OJT fr Emplyed Wrkers An individual wh is emplyed may als qualify fr an OJT if he/she is cnsidered underemplyed. An individual is determined t be underemplyed if: The emplyee is currently wrking but nt earning the self-sufficient wage f $15.00/hur; The emplyee is currently wrking in a temprary capacity and the OJT facilitates a transitin t full-time emplyment; The emplyee meets all ther applicable requirements; and The training relates t the intrductin f new technlgies, intrductin t new prductin r service prcedures; upgrading t new jbs that require additinal skills; wrkplace literacy r ther apprpriate purpses as identified by Philadelphia Wrks. An individual wh was previusly emplyed in a full-time psitin that paid mre than the self-sufficient wage will nt be eligible fr an OJT if that individual intentinally resigned frm his r her previus psitin in rder t receive OJT funding. Emplyer Eligibility and Requirements OJTs are available t emplyers r registered apprenticeship prgram spnsrs in the public, private nn-prfit, r private sectr. (Fr use f OJT cntracts fr apprenticeship prgrams see 1 When apprpriate, a recent interview, evaluatin r assessment may be used fr the assessment purpse 2016 Philadelphia Wrks All rights reserved. Final - 2

3 Philadelphia Wrks WIOA Apprenticeship Plicy) An OJT cntract will nt be apprved fr an emplyer wh has received payments under previus cntracts under WIOA r the Wrkfrce Investment Act (WIA) if the emplyer has exhibited a pattern f failing t prvide OJT participants with cntinued lng-term emplyment as regular emplyees with wages, benefits (including health benefits) and wrking cnditins at the same level and t the same extent as ther emplyees wrking a similar length f time and ding the same type f wrk. OJT funds will nt be used t directly r indirectly aid in the filling f a jb pening which is vacant because the frmer ccupant is n strike, r is being lcked ut in the curse f a labr dispute, r the filling f which is therwise an issue in a labr dispute invlving a wrk stppage. The OJT is intended t assist career seekers reach and surpass a self-sufficiency wage threshld. Emplyers engaging in OJTs fr lwer waged jbs ($ $13.00 per hur) must demnstrate career pathways that lead t psitins exceeding $15.00 per hur. Emplyee Cmpensatin In rder t qualify fr an OJT, an emplyer must certify that the psitin will minimally meet the wage f $11/hur at a minimum f 30 hurs per week with evidence that the psitin is n a career pathway twards higher level and/r higher paying jbs upn cmpleting the OJT exceeding the self-sufficient wage f per hur. Based n the pririties utlined in WIOA and the guiding principles f OJTs generally, in situatins where cllective bargaining agreements r similar frmal arrangements exist and, as a result f these agreements, emplyers are able t shw an actual career pathway prgressin by which an individual will attain self-sufficiency within a reasnable perid f time, Philadelphia Wrks may utilize its discretin t extend the time in which an individual is expected t reach the self-sufficiency wage level. Individuals in OJTs must be cmpensated at the same rates, including peridic increases, as trainees r emplyees wh are similarly situated in similar ccupatins by the same emplyer and wh have similar training, experience and skills. Individuals in OJTs must als be ffered benefits and wrking cnditins at the same level and t the same extent as ther trainees r emplyees wrking a similar length f time and ding the same type f wrk. Emplyer Referrals Emplyers are encuraged t refer interested candidates t the PA CareerLink centers fr services. Emplyers must accept referral f, cnsider and interview PA CareerLink referred OJT trainees. Length f Training An OJT cntract will be limited t the perid f time required fr a participant t becme prficient in the ccupatin fr which the training is being prvided. In determining the apprpriate length f the cntract, cnsideratin will be given t the skill requirement f the ccupatin, the academic and ccupatinal skill level f the participant, prir wrk experience and the participant s individual emplyment plan. Regulatry Limitatins and Prhibited Activities WIOA title I funds must nt be spent n: Cnstructin, purchase f facilities r buildings, r ther capital expenditures fr imprvements t land r buildings; Sectarian activities; 2016 Philadelphia Wrks All rights reserved. Final - 3

4 Wages f incumbent emplyees during their participatin in ecnmic develpment activities prvided thrugh a Statewide wrkfrce investment system; Public service emplyment, except t prvide disaster relief emplyment, as specifically authrized in sectin 194(10) f WIOA; Expenses prhibited under anther Federal, State r lcal law r regulatin; Subawards r cntracts with parties that are debarred, suspended, r therwise excluded frm r ineligible fr participatin in Federal prgrams r activities; Cntracts with persns falsely labeling prducts made in America; Freign travel; Funds prvided t emplyers fr OJTs must nt be used t directly r indirectly assist, prmte r deter unin rganizing. Funds must nt be used r prpsed t be used fr the encuragement r inducement f a business r part f a business t relcate frm a lcatin in the United States if the relcatin results in any emplyee lsing his r her jb at the riginal lcatin. Funds must nt be used r prpsed t be used fr any business r part f a business that has relcated frm a lcatin in the United States, until the cmpany has perated at the new lcatin fr 120 days, if the relcatin has resulted in any emplyee lsing his r her jb at the riginal lcatin. A participant in an OJT will nt be emplyed in r assigned t a jb if: Any ther individual is n layff frm the same r any substantially equivalent jb; The emplyer has terminated the emplyment f any regular, unsubsidized emplyee r therwise caused an invluntary reductin in its wrkfrce with the intentin f filling the vacancy with the participant; r The jb is created in a prmtinal line that infringes in any way n the prmtinal pprtunities f currently emplyed wrkers. A participant in a prgram r activity authrized under title I f WIOA must nt displace (including a partial displacement, such as a reductin in the hurs f nn-vertime wrk, wages, r emplyment benefits) any currently emplyed emplyee (as f the date f the participatin). OJTs are nt intended t impair any existing cntracts fr services r cllective bargaining agreements. When a prgram r activity authrized under title I f WIOA wuld be incnsistent with a cllective bargaining agreement, the apprpriate labr rganizatin and emplyer must prvide written cncurrence befre the prgram r activity begins. Key Definitins High Pririty Occupatins are jb categries, within selected industry clusters, that are in demand by emplyers, have higher skill needs and are likely t prvide family-sustaining wages. The individual emplyment plan is an individualized career service that is develped jintly by the participant and the career planner when determined apprpriate by the ne-stp center r ne-stp partner. The plan is an nging strategy t identify emplyment gals, achievement bjectives, and an apprpriate cmbinatin f services fr the participant t achieve the emplyment gals. Individual with a Barrier t Emplyment means a member f 1 r mre f the fllwing ppulatins: Displaced hmemaker. Lw-incme individuals. Indians, Alaska Natives, and Native Hawaiian, as such terms are defined in WIOA sectin 166. Individuals with disabilities, including yuth wh are individuals with disabilities Philadelphia Wrks All rights reserved. Final - 4

5 Older individuals. Ex-ffenders. Hmeless individuals (as defined in sectin 41403(6) f the Vilence Against Wmen Act f 1994 (42 U.S.C e-2(6))), r hmeless children and yuths (as defined in sectin 752(2) f the McKinney-Vent Hmeless Assistance Act (42 U.S.C (a)(2))) Yuth wh are in r have aged ut f fster care. Individuals wh are English language learners, individuals wh have lw levels f literacy, and individuals facing substantial cultural barriers. Eligible migrant and seasnal farmwrkers, as defined in WIOA sectin 167(i). Individuals within 2 years f exhausting lifetime eligibility under part A f title IV f the Scial Security Act (42 U.S.C. 601 et seq.). Single parents (including single pregnant wmen). Lng-term unemplyed individuals. Such ther grups as the Gvernr invlved determines t have barriers t emplyment. On-the-jb training is training by an emplyer that is prvided t a paid participant while engaged in prductive wrk in a jb that Prvides knwledge r skills essential t the full and adequate perfrmance f the jb; Is made available thrugh a prgram that prvides reimbursement t the emplyer f up t 50 percent f the wage rate f the participant, except as prvided in WIOA sectin 134(c)(3)(H), fr the extrardinary csts f prviding the training and additinal supervisin related t the training; and Is limited in duratin as apprpriate t the ccupatin fr which the participant is being trained, taking int accunt the cntent f the training, the prir wrk experience f the participant, and the service strategy f the participant, as apprpriate. References Wrkfrce Innvatin and Opprtunity Act (WIOA), Public Law , enacted July 22, 2014 Wrkfrce Innvatin and Opprtunity Act Regulatins, 20 CFR Parts 680, 683 Pennsylvania Department f Labr & Industry, Wrkfrce System Plicy N , April 7, 2015, Training Expenditure Targets and Definitins f Types f Training fr Benchmarks Cntact Inquiries regarding this plicy shuld be directed t Jamece Jyner, Philadelphia Wrks Manager f Crss Center Services (jjyner@philawrks.rg). Effective September 28, Changes in plicy will nt apply retractively t OJT cmmitments that were made prir t the effective date One Penn Center at Suburban Statin 1617 JFK Bulevard, 13th Flr Philadelphia, PA P: F: