Incumbent Worker Training (IWT) Purpose: Incumbent Worker Training (IWT) supports training projects that will benefit local business and industry by assisting the skill development of existing employees, thereby averting layoff, increasing employee productivity, and boosting company growth - keeping the workforce competitive. The training is expected to lead to the creation of new jobs, retention of jobs, increased wages for better-trained workers, a higher-skilled workforce, and a more profitable business climate.
- Trainees need to be employed by the business with which the IWT contract is being written
- Trainees must meet the Fair Labor Standards Act (FLSA) requirements for an employer-employee relationship
- Trainees must have an established employment history with the employer as of the date of the IWT agreement signing
- Trainees do not have to meet the eligibility requirements
Businesses, Non-Profit and Trade Organizations applying for IWT must:
- Address strategy to avoid a layoff or business closure
- Meet any additional policy guidelines Area 7 or Williams County may establish
- Have full-time employees
- Remain current on all state obligations
- Employers are required to pay for a share of the total cost of the project
- Demonstrate a commitment to retaining operations and employees and
- Be willing to participate in a full range of services provided by the local OhioMeansJobs Center
Allowable costs may include only costs directly related to training. Allowable costs may include:
- Curriculum development
- Instructor/trainer salaries
- Textbooks, manuals, training software, materials and non-consumables
- Wages paid to participants while in training may be considered as a source of matching funds on the employer side of training budget.
Unallowable costs include but are not limited to:
- Training tools/equipment (most become personal property of trainee upon completion of training)
- Foreign travel
- Purchases or lease of capital equipment
- Encouragement or inducement of a business or part of a business to relocate from any location in the United States
- Use of IWT funds to pay for a worker’s training wages
- Use of IWT funds to train management employees in management such as Six Sigma and LEAN.
As a result of the award of IWT funds, employers will be expected to demonstrate one or more of the following outcomes:
- Layoff aversion
- Business growth/expansion
- Increased productivity
- Increased profits, quality, or efficiency
- Increased wages for employees who complete the training
- Increased retention of existing workforce
- Industry-recognized credential for trainees is highly encouraged
On-The-Job Training (OJT)
Purpose: OJT is a federally funded program that helps employers hire and train unemployed or under-employed workers for full time, long term employment.
Through OJT programs, employers may be reimbursed up to 50% of the wages earned by eligible new trainees while they learn the job. This funding compensates for training workers in skills they need to help business thrive. An OJT agreement must be developed before new employees are hired. Funding is available on a first come, first serve basis. Total reimbursement cannot exceed $8,000, and the length of the training period cannot exceed six months.
If you can answer “Yes” to these questions, you may be eligible for OJT reimbursement:
- Will the new employee need training to succeed on the job?
- Will you directly hire the employee?
- Will you retain the trainee if he/she is successful?
- Will you agree to an OJT agreement being in place prior to training the employee?
NOTE: All OJT employee candidates must be assessed and found eligible and suitable for the position. OhioMeansJobs Williams County can send you eligible candidates.
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