Workforce Investment Act (WIA) – FAQs about the On-the-Job (OJT) Training Program. OJT Paths to Success outline of the program.
What is OJT?
OJT provides reimbursements to employers to help compensate for the costs associated with skills upgrade training and loss of production for newly hired employees. OJT training can assist employers who are looking to expand their businesses and who need additional staff trained with job specific skills. OJT employers may receive up to 50% of the wage rate of OJT trainees to help defray personnel training costs.
How does OJT benefit my company?
- You get a pool of pre-screened applicants for your position at no cost—you decide who to hire.
- This is a great opportunity to bring on employees that are eager to learn new skills and up-skill your workforce.
- Hands on training that you design with help from WIA staff.
- Partial reimbursement of trainee wages to offset training costs.
- An opportunity to train employees your way.
- Reimbursement for the costs associated with training this new employee, which are usually calculated at up to half the pay rate for the agreed-upon training period.
- Prompt reimbursement payments with minimal paperwork.
- There are possible Tax Credits for your company if you hire candidates who meet the requirements of the Work Opportunity Tax Credit or other tax credit programs.
- OJT staff to assist you through all phases of the OJT and provide on-going support to help the hired trainee succeed.
Are there any restrictions? Yes, there are. For example-
- You cannot use OJT funded trainees to replace employees laid off within six months prior to the date of your application.
- You must agree to hire any OJT trainees as regular, full-time employees.
- The rate of pay and benefits must be commensurate with what you pay others doing similar work.
The WIA staff can assist you in determining your company’s eligibility.
Can companies rehire one of their previously released (laid off) employees?
Yes, a business can re-hire a previous employee but it must be for a different position for which they would need training and the candidate must meet the WIA program requirements.
Who selects the OJT trainees?
As the OJT employer, your company will determine the selection criteria for OJT trainees (e.g., “greater than 8th grade math ability,” “English-Spanish bilingual ability,” or any other applicable criteria). Then, WIA staff will identify those of their clients who meet the criteria and will refer those clients to your company at no cost to you. Your company will decide the final selection of OJT trainees.
What if an employer has already selected a candidate for OJT Training?
If an employer has already selected a candidate AND the candidate is approved by WIA staff as program eligible, WIA staff can set up an OJT with the employer candidate. A simple OJT agreement must be signed before the selected candidate is hired by the employer.
How do we get the process started?
A standardized OJT contract will be completed with your company. That contract will contain all of the terms of agreement for both WIA and your company. With this contract in place, we will start to identify and screen candidates for your company’s position(s).
How long will the process take to get the OJT approved?
This process will not take much longer than hiring a non-OJT employee. In order to ensure that your needs are met, the process of writing and negotiating the contract and establishing a training plan for the individual could take up to a few weeks. The individual can be hired effective the date of the signed agreement.
Who should I contact at WIA about applying for OJT funding?
WIA Job Placement Specialist
NH Works-SNHS, Inc.
2 Industrial Drive
Concord, NH 03302-1016
(603) 225-3295 x1176