This document has been formatted for use on this web site. It contains hyperlinks that enable the user to jump directly to specific areas within the document or to related documents.

DEFINITIONS | REFERENCES | WEBSITE | INQUIRIES

POLICY SECTIONS:

Employer Assurances | Service Provider Assurances | Fiscal Reimbursement
Duration and Reimbursement Rate | Collective Bargaining and Apprenticeship
On-the-Job Training | Veteran's Priority of Service

Approval of On-The-Job Training (OJT)

This Policy applies to workers determined eligible to receive services and allowances under the Trade Act of 1974 as amended.

EMPLOYER ASSURANCES

Prior to the approval of an OJT, the employer shall assure:

• The participant shall not displace a currently employed worker, including partial displacement, such as a reduction in the hours of non-overtime work, wages, or employment benefits.
  
  

• The employer shall not train a participant in a job if another worker is in layoff status for the same job. 
  
  

• The employer's rate of labor turnover shall not substantially exceed the rate of labor turnover for similar jobs in the same area.
  
  

• The employer has not terminated the employment of any regular employee or otherwise reduced the workforce with the intention of filling the vacancy so created by hiring the eligible participant.
   
  

• The employer shall not train a participant in a job created in a promotional line that will infringe in any way upon the promotional opportunities of currently employed individuals.
  
  

• The employer shall make every effort to retain the participant for at least 26 weeks after completion of the training.
  
  

• The employer has not violated the terms of a prior OJT contact.

SERVICE PROVIDER ASSURANCES

Prior to the approval of an OJT, the employer shall assure:

• The participant completes a comprehensive assessment  and develops an appropriate training plan that justifies the need for training. 
  
  

• The participant can achieve the vocational goal identified in the Services Plan in SKIES within the term of the approved training plan.
  
  

• The on-the-job training meets the six conditions for training approval.  
  (Approval of Training Policy)
  
  

• The participant’s attendance in the training is considered full time.
  
  

• The participant shall not enter into an on-the-job training agreement in an occupation similar to the job of dislocation in which the participant gained trade certification.
  
  

• The participant shall not start training until a signed training agreement is in place.  
  
  

• The participant shall only enter into an on-the-job training agreement in an occupation for which there is demand, potential for sustained growth, and permanent, full time employment.
  

• The Service Provider and participant must arrange and conduct OJT training within the local labor market.  When training is not available within the local labor market then OJT training may be conducted outside of the local area.
  
  

• The Service Provider shall only approve OJT training that is conducted within the State of Washington .  As an exception, a Service Provider may approve an OJT conducted within a bordering state ( Oregon or Idaho ) as long as the OJT is monitored on a monthly basis.

FISCAL/REIMBURSEMENT

No TRA payments or other TAA funds for transportation, or subsistence payments are allowable while the participant is participating in an OJT.

The total cost for an OJT shall not exceed the state’s established training cost limit of $12, 000. (Approval of Training Policy)

The Service Provider shall not reimburse the employer for fringe benefits, overtime hours, or hours in excess of 40 hours per week.

The Service Provider shall reimburse an employer for the cost of a participant's wages for time spent during working hours in such training activities.  All costs incurred under these provisions must have prior approval and be documented by the employer. 

The cost for classroom training or other required job related training provided to the participant as part of the OJT may be reimbursed to the OJT employer only if such training is in addition to the level of those provided to regular employees.  This must be included in the Services Plan in SKIES.

The Service Provider may pay for classroom training directly to the school with the agreement of the employer.

The Service Provider shall only use TAA funds to reimburse the employer for the costs associated with training a participant.  TAA funds cannot be used by the Service Provider to pay for wages.

The Service Provider shall not provide reimbursement to the employer unless the signed, approved OJT contract is in place.

Both the employer and the participant must sign reimbursement invoices and timesheets.

The Service Provider shall monitor the progress and performance of the participant in accordance with the OJT training plan, at the worksite, at least once a month. 

The Service Provider shall keep original time sheets and copies of invoices in the participant's file. 

The employer, the participant, and the Service Provider shall sign the OJT contract agreement and agree to the terms and conditions prior to the commencement of training.  

OJT DURATION AND REIMBURSEMENT RATE

The duration of the OJT must be appropriate to the occupation for which the adversely affected worker is being trained, taking into account the content of the training, the worker’s prior experience and skills as documented in the Services Plan in SKIES.  The duration should reflect the time required for the worker to become proficient in the training being provided.

When determining the length of the training contract the Service Provider shall take into consideration the skill requirements of the occupation, the academic and occupational skill level of the participant, and prior work experience.

Under OJT, the allowable employer reimbursement should fairly represent compensation for the costs and the lower productivity associated with training a participant on the job. 

The actual reimbursement rate shall be negotiated with the employer but cannot exceed 50% of the regular wages paid to the worker by the employer.

COLLECTIVE BARGAINING AND APPRENTICESHIP PROGRAMS

Training shall not impair existing contracts for services or collective bargaining agreements.

The Service Provider must obtain from the appropriate labor organization a written concurrence if the training is inconsistent with the terms of a collective bargaining agreement.   This shall be included in the OJT contract. 

If the OJT is a pre-apprenticeship training program that provides participants with basic skills needed to meet the eligibility requirements for registered apprenticeship programs, it must be coordinated with the appropriate trade or craft and joint apprenticeship and training committee responsible for the apprenticeship program.  

Veteran's Priority of Services
The Trade Adjustment Assistance program will comply with the Jobs for Veterans Act, enacted into Public law 107-288 on November 2, 2002.  Covered veterans determined eligible for the TAA program shall receive priority over non veterans for the receipt of appropriate services provided under the TAA program.

DEFINITIONS  

On the Job Training (OJT)

Training provided at an employers work site where the participant gains new job skills while being employed full time. 

REFERENCES

• Trade Act of 2002 (P.L. 107-210)

• Trade Act of 1974 (as amended)

• Trade Adjustment Assistance for Workers, Code of Federal Regulations, Title 20 Chapter 5, and Part 617

• Training and Employment Guidance Letter (TEGL) No. 11-02, dated 10/10/02

• Training and Employment Guidance Letter (TEGL) No. 13-05, dated 02/02/06  

• Training and Employment Guidance Letter (TEGL) No. 5-03, dated 09/16/03

SUPERSEDES

This communication cancels and supersedes all previously issued policy memorandum related to the employment and training component of the TAA program.

WEBSITE

http://www.wa.gov/esd/policies

DIRECT INQUIRIES TO

Randy Bachman
Employment Security Department
Employment and Training Division, State Trade Coordinator
P.O. Box 9046, MS 6000
Olympia, WA 98507-9046
E-Mail: rbachman@esd.wa.gov
Telephone: (360) 438-3148
FAX: (360) 438-3174