On-the-Job Training (OJT) helps offset the cost of hiring and training by reimbursing employers up to 50 percent of a new hire’s hourly wage for a maximum of 1,040 hours.
How does it work?
- The position is regular, full-time with a minimum of 32 hours per week (not temporary or seasonal)
- The position pays $13.09 or more per hour (wages may not be less than the current industry standard)
- The employer develops a training or onboarding plan for the new hire
- The employer agrees to retain the employee after successful completion of on-the-job training
- Only hours worked on the job will be reimbursed (vacations, sick leave, etc. will not be reimbursed)
- The employer gets reimbursed at the midpoint and/or completion point of training
What are some restrictions?
- The company must have established operations in its current location for at least 120 days
- The employer may not lay off and replace a current employee with a new hire enrolled in OJT
- The employer must source candidates from the career center network
- The employer must enter into an OJT contract with a career center before hiring to receive the reimbursement
What documents are needed?
Employers must provide the following information when entering into an OJT contract:
- Proof of workers’ compensation insurance (policy number and effective dates)
- Proof of public liability insurance
- Proof of property damage insurance
- Current W-9
- Training program information
- Description of the position to be filled with OJT
How do job seekers qualify?
Job seekers must be eligible for Workforce Innovation and Opportunity Act (WIOA) funds. To determine WIOA eligibility, a job seeker must meet with a career center representative. An employer may request to check eligibility of a prospective new hire or a career center representative can refer a candidate to the employer.
For more information about OJT or to get started, please contact our Business Programs Team at firstname.lastname@example.org.