On-the-Job Training

The Central Alabama Partnership for Training and Employment administers the On-The-Job Training (OJT) program which gives individuals an opportunity to learn job skills and allows employers to train new employees while saving money on training costs.

Under the Workforce Innovation & Opportunity Act, On-the-Job Training participants’ employers are reimbursed a portion of these participants’ wages in compensation for the extraordinary costs in additional time and attention generally associated with the provision of such training, and in recognition of the lesser workplace productivity of these trainees. Negotiations with the employer establish the maximum length of participants’ training period. The maximum length of such training, however, is not to exceed six months.

Business Service Representatives from the CAPTE and the employer will create a training plan that defines training objectives and goals for the trainee(s). Based on the number of employees, employers may receive up to a seventy-five (75) percent reimbursement of hourly wages paid to a trainee. This reimbursement serves as an incentive to encourage employers to hire individuals who do not have all of the required skills for a particular job. This program is designed to fulfill the employment needs of local employers by providing a trained workforce while increasing productivity and profits.

The goals of the OJT program are permanent employment upon successful completion of training; placement into occupations that are long-term; and to build a skilled workforce for a growing Alabama economy.

REQUIREMENTS

• Trainees must meet the Workforce Innovation and Opportunity Act (WIOA) eligibility requirements.
• Employers must have Workers' Compensation or approved on-site accident insurance.
• Trainees cannot begin work/training until the OJT agreement is approved by the WDD.
• Trainees must not be currently working for the employer.
• Full-time employment is required.
• Employer must provide a wage of at least $9.00 per hour for non-metropolitan counties and $10.00 per hour for metropolitan counties.
• Trainees must receive the same wages and benefits as other employees holding the same or similar positions.
• Trainees must abide by the same company policies as other employees.

NEW HIRE OJT

There are two types of On-the-Job Training (OJT) programs: New Hire and Performance-Based.
Funded by the U.S. Department of Labor, the Alabama Department of Commerce (ADOC) administers the OJT program which gives individuals an opportunity to learn new job skills and allows employers to train new employees while saving money on training costs. A Business Service Representative (BSR) with the Alabama Career Center System works with the employer to create a training plan that defines objectives and goals for the trainee(s).

The OJT program is designed to provide reimbursement to employers for the extraordinary costs associated with the hiring and training of individuals eligible for these services. This reimbursement serves as an incentive to encourage employers to hire individuals who do not have all of the required skills for a particular job. The negotiated training period can range from 6 to 26 weeks based on the skill level of the participant(s) and the training occupation.

The New Hire OJT agreement allows an employer to hire new workers in skilled positions and train them with a goal of permanent employment upon successful completion of training.

EMPLOYER BENEFITS

• May receive up to 75% reimbursement of trainees' hourly wages (see box below)
• Employers make all hiring decisions
• Employers customize all t raining
• Saves recruiting, screening, and t raining costs
• Length of t raining is negotiable
• Minimal paperwork
• Increased cash flow and profits
• No cost for OJT services

ADULT AND YOUTH OJT AGREEMENTS | 1-50 EMPLOYEES | UP TO 75% REIMBURSEMENT

DISLOCATED WORKER OJT AGREEMENTS | 1-200 EMPLOYEES | UP TO 75% REIMBURSEMENT

PUBLIC SECTOR/NON-PROFIT OJT AGREEMENTS | 50% REIMBURSEMENT

50% REIMBURSEMENT FOR ALL OTHER BUSINESSES

PERFORMANCE BASED OJT

Performance-Based OJT agreements are designed to offer training for a large number of employees for a short period of training time. This includes skilled and/or unskilled workers when employers need trained employees fast.

Training hours, training plans, number of trainees, cost, and wages are negotiated through the ADOC on a case-by-case basis. All performance based agreements are based on the employer's needs at the time. The employer is eligible to receive reimbursement for training after the employee's completion of training plus one day.

The Career Center BSR assisting the employer with the agreement must submit a letter to the Workforce Development Division (WDD) with the following information:

• Employer's business name
• Background information on the employer
• Number of employees to be trained
• Hiring positions
• Time period recommended for t raining
• Job descriptions
• Wages per hour/per position