Incumbent Worker Training (IWT)
The purpose of the Incumbent Worker Training (IWT) is to support training projects that will benefit local business and industry by assisting the skill development of existing employees, thereby averting layoff, increasing employee productivity and growth of the company, as well as assisting in keeping Area 7’s 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 for career and training services for WIOA Adults or Dislocated Workers
- Trainees must be reported via the Mini Incumbent Worker registration in OWCMS; however, they are not subject to performance measures
Area 7 businesses or 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 sub-grantees may establish
- Be operating in Area 7
- Have full-time employees
- Remain current on all state obligations, as verified at:
- Federal Exclusion and Debarment Site: http://www.sam.gov
- Ohio Department of Taxation: http://www.tax.ohio.gov
- Business filing Search: http://sos.state.oh.us
- Employers are required to pay for a share of the total cost of the project, either cash or in-kind:
- At least 10 percent of the cost, for employers with 50 or fewer employees
- At least 25 percent of the cost, for employers with 51 to 100 employees
- At least 50 percent of the cost, for employers with more than 100 employees
- Demonstrate a commitment to retaining operations and employees in Area 7, 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’s, 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 (must become personal property of trainee upon completion of training)
- Trainee wages (no overtime)
- 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, applicants 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)
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 like you may be reimbursed up to 50 percent of the wages earned by eligible new trainees while they learn the job. This funding compensates you for training workers in skills they need to help your business thrive.
- HANDS-ON TRAINING DONE YOUR WAY
- AN INVESTMENT IN YOUR COMPANY
- FAST TURN-AROUND, MINIMAL PAPERWORK
An OJT agreement must be developed before new employees are hired. Funding is available on a first come, first served 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. Your local One-Stop Center can send you eligible candidates.
To find out more about the program, contact:
1425 E High Street
Bryan, OH 43506
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