Southern Alleghenies Workforce Investment Board (SAWIB) OJT Policy POLICY NEW X REVISION PURPOSE DATE APPROVED BY WIB OJT Policy - DRAFT To insure quality service to customers September 8, 2015 Effective October 9, 2015 Policies governing On-the-Job Training: 1. The number of training hours that is allowable is determined by the Specific Vocational Preparation Code (SVP) for the position. The SVP are a set of codes developed by the US Department of Labor that are used to measure how much education or training is required to enter into an occupation. The Department has also developed a Dictionary of Occupational Titles (DOT). The Dictionary contains thousands of job titles and descriptions; each job title has a corresponding SVP Code. The system that we have used is as follows: Code 1 2 Description Example 3 4 Short Demonstration Only Short demonstration up to 1 month 1-3 months 3-6 months Tobacco Can Filler Sweatband Cutting Machine Operator Materials Inspector Sheet Metal Installer 5 6 7 8 9 6-12 months 1-2 years 2-4 years 4-10 years Over 10 years Silk Screen Cutter Electric Tool Repairer Land Surveyor Pollution Control Engineer Aeronautical Project Engineer Allowable Hours Weeks 0 0 0 0 320 480 8 12 640 800 960 N/A N/A 16 20 24 N/A N/A 1 2. The minimum hourly rate for an adult or dislocated worker OJT participant must be equal to or exceed the region’s self-sufficiency level, as determined by the Commonwealth. The minimum hourly rate for a youth participant is $10.00 per hour. 3. The hours can be modified on a case-by-case basis upon review of the employees past work history and formal training. 4. The employer must agree to compensate an OJT participant in the same manner that similarly positioned employees are compensated. The OJT participant can be compensated at a higher rate based on merit or other factors; however, the reimbursement will be based on the base rate for the position within the company. 5. The employer must show proof of workman’s compensation, or equivalent protection for each employee under the agreement. 6. It is allowable for OJT contracts for positions that require a license, such as Commercial Driver’s License, to provide for the actual on–the-job experience and training. 7. Family members, previous employees, or current employees are not eligible for the program. 8. OJT participants cannot be hired to replace any current employees or to fill positions vacant through layoff or work stoppages. 9. OJT participants must be hired for full-time positions defined as at least 30 hours per week. The OJT participant must receive all benefits and fringes as provided to all other full-time employees. 10. No fee will be charged the participant for placement. 11. The agreement is a fixed unit cost and adjustments will not be made during the term of the agreement. 12. Compensation for training can be as much as 50% of the employee’s hourly wage. (An hourly wage is calculated for salary positions) 13. There must be a clear separation of church and state. 14. All employees selected must be eligible WIOA applicants, but the employers have the right to review potential employees utilizing their own company procedures and the company ultimately selects the employee. 15. Companies must not be under suspension or debarment by the Commonwealth and all taxes must be current. All companies are eligible to use the program unless they have been issued 2 points for past performance as established in the re-contracting policy. In that case use is suspended for 3 years. 2 Re-Contracting Policy Activity A. Trainee quit on his or her own. Points Assigned 0 points B. Trainee was laid off and not recalled within 60 days or the employer exhibits a chronic layoff pattern. 1 point C. Monitoring of a contract identifies a deficiency in the contract management that indicates that the employer was at fault and the trainee’s training, work conditions, or ability to retain full-time employment was jeopardized. 1 point D. A trainee filled a valid grievance against the employer and the employer was found to be at fault. 1 point E. The trainee was unjustifiably fired and the employer cannot prove otherwise. 2 points F. Companies that have 25% of their placements result in non-positive termination. 2 points G. An employer wants to fill the same position, which was previously filled by a WIOA participant within six months after the first participant was hired if the company no longer employs the first trainee. 1 point H. The employer violates any terms outlined in the contract. 2 points I. If the employer has the ability to provide permanent, full-time employment for the trainee with similar wages and working conditions as other employees on the same level after the training hours were completed and fails to do so. 2 points 17. Contracts are developed by the Title I Provider and submitted to the SAWDB staff for review. 18. The Workforce Development Board reserves the right to approve contracts that exceeded $25,000. 19. No employees are permitted to start work on an OJT contract until the contract is executed. 20. Employers will be required to supply job descriptions and will be reimbursed based on the number of actual hours worked. 3