1013-2        TERMS AND CONDITIONS OF OJT On the Job Training

1013-2 A.    Job Developer Responsibilities

When filling an OJT On the Job Training position, the goal is to find the most appropriate candidate for the job.  Clients selected for an OJT On the Job Training position will be matched based on their interest, aptitude, skills, commitment and motivation as well as the employer’s ability and willingness to commit to a Placement Agreement (TA-38)  and long term employment of the client once the OJT On the Job Training is completed.

Tasks of the  Job Developer:

• Facilitate the development of all agreements.

• Screen the candidate according to specifications defined by the employer.

• Verify the client match is appropriate and refer the client to the employer.

• Ensure that any needed pre-employment assessments or tests, such as criminal background checks, drug screening, and education testing are completed before referred to the employer for an interview.

• Identify supportive services needed for the client to succeed in the OJT On the Job Training.

• Monitor and support the placement and provide retention services to the client and employer.

Note:
For the purposes of this section “Job Developer” refers to the Work Services staff that is responsible for completing tasks related to OJT On the Job Training Placement.

1013-2 B.   OJT On the Job Training Eligible Employers

Private sector businesses, non-profits organizations and non-government employers are eligible to participate in the program.  School districts, local governments and tribal government entities are not eligible to participate.  The employer must have a Federal Employer Identification Number (FEIN) and a current Alaska business license.

1013-2 C.   Responsibilities of the Employer

A Temporary Assistance client employed in an OJT On the Job Training position is considered a regular employee.  The working conditions, wages, and required federal and state benefits in OJT On the Job Training positions must be equal to those of a regular employee employed a similar length of time and doing the same type of work.

Employers must meet the following terms and conditions of employment for OJT On the Job Training contracts:

1. Fills out and signs all agreements.

2. Contribute and participate in the development of the employee Placement Agreement (TA-38).  

3. Provide the employee with training as described in the Placement Agreement (TA-38).  

4. Agrees to make a good faith effort to retain the employee at the end of the OJT On the Job Training Placement Agreement (TA-38).

5. Pay clients a wage at least equal to the Alaska minimum wage.

6. Does not displace current employees nor reduce their non-overtime hours by using an OJT On the Job Training position.

7. Ensure whenever possible to place clients in full time (over 35 hours a week) employment. Part-time employment is allowed under the OJT On the Job Training program. Part-time employment in OJT On the Job Trainings should be limited to clients with children under 6, clients living in exempt rural villages, or other special circumstances. Part-time employees must work a minimum of 20 hours per week.

8. Pay all clients the wage paid for similar jobs in the same labor market, with appropriate adjustments for experience and training.

9. Provide all benefits (including paid sick, holiday and vacation leave) to the OJT On the Job Training employee provided to other employees without regard to their OJT On the Job Training status. All participants are to be treated with parity with all other employees.

10. Provide Worker’s Compensation insurance that meets Alaska law for each client.

11. Withhold and pay, in accordance with state and federal law, all required deductions including federal income tax, social security tax and unemployment insurance tax, from the clients’ wages.

12. Maintain fiscal and other employer records pertinent to the OJT On the Job Training agreement. The employer shall provide the Department access to all such records.  All such records shall be retained and accessible for three years following final payments.

13. Maintain all records of the client as confidential.

1013-2 D.   Duration of the Contracts

1. The duration of initial OJT On the Job Training contracts cannot be less than 12 weeks (3 months) or more 26 weeks (six months or 1040 training hours). A 12 week extension (3 months) is allowable.  In cases where a longer OJT On the Job Training contract would be in the best interest of the client, a second extension may be approved by Work Services Policy for up to and additional three months (for 12 months total).

2. Reimbursement covers full-time employees who work a minimum of 35 hours per week, but no more than 40 hours per week.

3. Whenever possible, employers are encouraged to schedule 40 hours of work per week to allow clients the opportunity to earn as much as possible. The number of hours should be negotiated through the Placement Agreement (TA 38).

4. Reimbursement does not cover full-time employees who work overtime.

5. Part-time employment is allowed under the OJT On the Job Training program. Part-time employment in OJT On the Job Trainings should be limited to clients with children under 6, clients living in exempt rural villages, or other special circumstances. Part-time employees must work a minimum of 20 hours per week.

6. OJT On the Job Training can continue for the full period of the original Provider Agreement even after the trainee’s ATAP Alaska Temporary Assistance Program case has closed.  On occasion, an ATAP Alaska Temporary Assistance Program client will earn enough on the OJT On the Job Training or other changes in the household will occur which will cause the client to become ineligible for ATAP Alaska Temporary Assistance Program.  In these situations, the OJT On the Job Training contract can be continued until the original end date of the contract.  An OJT contract will not be extended past the original end of the Provider Agreement for a client whose ATAP Alaska Temporary Assistance Program case is closed.

7. If the OJT On the Job Training position becomes vacant through no fault of the employer, the employer may request another client to fill the vacancy. Employers must submit a new Provider Agreement, since the Provider Agreement must be specific to each client.

8. Employers are expected to retain clients after the end of the OJT On the Job Training contract.

9. Training subsidy to the employer may not last more than 18 months.  

10. An employer may use the 18 months for multiple clients.

11. The OJT On the Job Training subsidy for any individual client may not exceed more than 18 months lifetime limit unless approved by Work Services DPA Division of Public Assistance Policy.   

1013-2 E.    Employer Incentives for Using OJT On the Job Training

While the financial assistance in paying for training or offsetting wages is the basic incentive for employers to participate in OJT, there are other good reasons for employers to participate:

• DPA Division of Public Assistance pays up-front supportive services costs, such as work clothes, gloves, etc.

• DPA Division of Public Assistance pre-screens all prospective employees using the employer’s specifications

• Possible Tax Credits  (Appendix A - http://www.doleta.gov/business/incentives/opptax/) for an employer who hires a ATAP Alaska Temporary Assistance Program client

• Job Developers, the employer’s primary-point-of-contact, provide services and on-going support to help the client succeed.

• Case managers provide transitional services when OJT On the Job Training leads to permanent, full-time employment and ATAP Alaska Temporary Assistance Program case closes.

1013-2 F.    Payment to Employers

On-the-Job Training reimburses an employer for a portion of the cost of training an ATAP Alaska Temporary Assistance Program client. This provides an incentive to the employer to hire and train a Temporary Assistance client for a permanent job with their company or agency.

Program rules:

1. The OJT On the Job Training reimbursement is based on 50 of the gross wage for the client.  For example: If the employer is paying $8.00 per hour, DPA Division of Public Assistance will reimburse the company $4.00 per hour for the actual number of hours paid, up to 40 hours per week.  

2. The payment is not a set fee, but a reimbursement based on a percentage of the actual wage earned to the client for the pay period. If the client misses work and does not get paid, the employer does not get the reimbursement (this excludes when the client works a paid personal, vacation and/or sick leave). Reimbursement is based on gross wages, not net wages (take-home pay) actually paid to the client.  For example: if the gross wage is $8.00 per hour, the payment will be $4.00 per hour.

3. Employers are not reimbursed for all wages and other wage costs, such as payroll taxes or Workers’ Compensation. OJT On the Job Training is not intended to pay the full costs of a new employee, but to reduce the cost to the employer of filling a position.

4. Employers submit a copy of the client’s pay stubs to the Work Services Provider. Employers cannot be reimbursed until the client’s pay stubs are received by the Work Services Provider. For prompt payment the employer should submit the invoice and pay stubs no later than seven days after the last payroll date. Once pay stubs are received employers should be reimbursed within 21 business days.

5. Employers are reimbursed for overtime or holiday pay.  Employer cannot get OJT On the Job Training reimbursement for paid holiday, if the client does not work.

6. Clients cannot be made to work overtime, but are allowed to work overtime if they choose to and must be compensated for any overtime.  

Note:

The payment rules for all OJT On the Job Training are above. DPA Division of Public Assistance Work Services Offices have additional procedures to follow for employer’s payment verification and reimbursement through the JASP Supportive Services Payment Authorization (SSPA) and Supportive Services Invoice Verification (SSIV) screens for OJT On the Job Training placements maintained by Division of Public Assistance Work Services Offices. The employer’s reimbursement is processed within 10 days of receipt and state procurement allows for 30 days to complete the billing transaction. Work Services Policy contacts the employer for additional or missing information or if training reimbursement is delayed.

1013-2 G.   How Payments are Made to Work Services Providers

Work Services Providers who have made OJT On the Job Training payments to an employer are reimbursed by DPA Division of Public Assistance. The contractor shall include OJT On the Job Training billing reports to DPA Division of Public Assistance no later than the 20th of each month; this shall be a report specific to On the Job Training or other Supported Employment.

In addition to OJT On the Job Training billing, adequate documentation of Job Development efforts are required by DPA Division of Public Assistance.

Work Services Providers establish their own internal process for meeting the following program expectations for wage reimbursement:

• Work Services providers must file financial and performance reports that address both services to clients and contract administration following a format as approved by DPA Division of Public Assistance.

• Documentation of activities and participation must be reported using data systems and forms provided by DPA Division of Public Assistance.

• Work Services providers are responsible for the accuracy of the data they enter into the CMS Case Management System and submit into all required reports.

• All reports will be submitted electronically in addition to hard copies, such as billing statements that require signatures.  

• Signed hard copy reports may be submitted electronically or by fax.

• The employer’s reimbursement is processed within 10 days of receipt, (Please note: state procurement allows for 30 days completing billing transactions). Work Services Policy contacts the employer for additional or missing information or if training reimbursement is delayed.

1013-2 H.    Employer Tax Credits  

Employers can take advantage of the Work Opportunity and Welfare-to-Work (WTW) Tax Credits when using OJT On the Job Training. Since part of the wage paid to the employer is subsidized, the employer cannot count the amount of the subsidized wage, but the hours worked can count toward the required number of hours a worker must work for the employer to qualify for the program.

Employers can get more information on the Work Opportunity Tax Credit (WOTC) and WTW Welfare to Work tax credits by checking the AJCN Alaska Job Center Network network at http://www.doleta.gov/business/incentives/opptax/  or contacting the Department of Labor and Workforce Development coordinator at (907) 465-5953.