(a) General--(1) On-the-job training (OJT) means training by an
employer in the private or public sector given to
a participant who, after objective assessment, and in accordance with
the ISS, has been referred to and hired by the employer following the
development of an agreement with the employer to provide occupational
training in exchange for reimbursement of the employer's extraordinary
costs. On-the-job training occurs while the participant is engaged in
productive work which provides knowledge and skills essential to the
full and adequate performance of the job.
(2) This does not preclude a participant who has been trained by one
employer from ultimately being placed in a comparable training-related
position with another employer.
(3) On-the-job training may be sequenced with or accompanied by
other types of training such as classroom training or literacy training.
(b) Duration of OJT. (1) OJT authorized for a participant shall be
limited to a period not in excess of that required for the participant
to acquire the skills needed for the OJT position. Except as described
in paragraph (b) (3) of this section, the period of reimbursement to the
employer under an OJT agreement shall not exceed 6 months of training.
(2) The 6-month duration of OJT may be expressed as a number of
hours, days, or weeks the participant is expected to work in a 6-month
period if the participant works full-time.
(3) In the event that a participant's regular employment is less
than full-time and less than 500 hours of OJT has occurred by the end of
6 months, that participant may remain in OJT until 499 hours OJT hours
have occurred.
(4)(i) Recipients shall develop policies and procedures for
determining the average training duration for occupations including to
reflect an individual participant's need for additional training time,
or reduction in training time to reflect the individual participant's
partial acquisition of needed skills. (In no case should an individual
who is fully skilled in an occupation be placed in OJT in that
occupation.)
(ii) In determining the average training time, consideration should
be given to recognized reference materials, such as the ``Dictionary of
Occupational Titles'' (DOT) and employer training plans. Such materials
need not be limited to the DOT, however.
(5) On-the-job training is encouraged, but not required, in all
occupations with significant training content, particularly in higher-
skill occupations appropriate to the participant's needs. Training plans
may be developed that recognize the full duration of the OJT period
necessary for the full and adequate performance of the job, but the
period of reimbursement may not exceed the duration in paragraph (a)(1)
or (a)(2) of this section.
(6) When the OJT period in a given occupation for a participant for
whom the ISS identifies OJT as appropriate varies from the average for
that occupation, the basis for the variation shall be recorded in the
ISS.
(c) On-the-job training payments to employers. (1) On-the-job
training payments to employers are deemed to be in compensation for the
extraordinary costs associated with training participants and in
compensation for the costs associated with the lower productivity of
such participants. Employers shall not be required to document such
extraordinary costs or lower productivity (section 141(g)(1)).
(2)(i) On-the-job training payments to employers shall not, during
the period of such training, average more than 50 percent of the wages
paid by the employer to OJT participants.
(ii) On-the-job training payments to employers may be based upon
scheduled raises or regular pay increases.
(iii) On-the-job training payments may not be based on overtime,
shift differential, premium pay and other nonregular wages paid by the
employer to participants.
(iv) On-the-job training payments may not be based upon periods of
time such as illness, holidays, plant downtime or other events in which
no training occurs.
(3) Employers which provide classroom or vestibule training to meet
the specific training needs of JTPA participants to equip them with
education and knowledge necessary to the OJT occupation may be
separately reimbursed for training costs, such as instructors and
training material.
(d) On-the-job training agreements. (1) Each OJT agreement shall, at
a minimum, specify the occupation(s) for which training is to be
provided, the duration of the training, the number of participants to be
trained in each occupation, wage rates to be paid, the rate of
reimbursement, the maximum amount of reimbursement, a job description or
training outline that reflects what the participant will learn, and any
other separate classroom training that may be provided.
(2) The agreement shall provide that the employer will maintain and
make available time and attendance, payroll and other records to support
amounts reimbursed under OJT contracts.
(e) Labor standards. OJT participants shall be compensated by the
employer at the same rates, including periodic increases, as similarly
situated employees, but in no event less than the higher of the minimum
wage specified under the Fair Labor Standards Act of 1938, as amended or
the applicable State or local minimum wage. Participants must receive
the same benefits and have the same working conditions as similarly
situated employees.
(f) Suitability of participants. (1) Only those participants who
have been assessed and for whom OJT has been determined as an
appropriate activity in the participant's ISS may be referred to an
employer for participation in OJT.
(2) An individual referred to the JTPA program by an employer may be
enrolled in an OJT program with such employer only upon completion of
the objective assessment and individual service strategy in which OJT
with such employer has been determined to be an appropriate activity and
only if the employer has not already hired such individual.
(3) OJT with the participant's previous or current employer in the
same, a similar, or an upgraded job is not permitted.
(g) Monitoring. (1) OJT agreements shall be monitored periodically
on-site by the entity issuing the contract to assure that the validity
and propriety of amounts claimed for reimbursement are substantiated by
payroll and time and attendance records and that the training is being
provided as specified in the agreement.
(2) Brokering contractors shall conduct on-site monitoring of the
OJT employers and other subcontractors to verify compliance with
subcontract terms before making payments.
(3) Nothing in this paragraph (g) shall relieve recipients and SDA's
from responsibility for monitoring expenditures under the Act.
(h) Employer eligibility. (1) OJT agreements shall not be entered
into with employers which, under previous agreements, have exhibited a
pattern of failing to provide OJT participants with continued long-term
employment as regular employees with wages, benefits and working
conditions at the same level and to the same extent as similarly
situated employees. This prohibition does not apply to OJT agreements
for youth in the program under title II-B who are returning to school.
(2) Governors shall issue procedures and criteria to implement the
requirement in paragraph (h)(1) of this section, which shall specify the
duration of the period of loss of eligibility. The procedures and
criteria shall provide that situations in which OJT participants quit
voluntarily, are terminated for cause, or are released due to
unforeseeable changes in business conditions will not necessarily result
in termination of employer eligibility.
(i) Brokered OJT. Each agreement with an OJT employer that is
written by a brokering contractor (not written directly by the SDA/SSA
or recipient) shall specify and clearly differentiate the services to be
provided by the brokering contractor (including but not limited to
outreach, recruitment, training, counseling, assessment, placement,
monitoring, and followup), the employer and other agencies and
subcontractors, including services provided with or without cost by
other agencies or subcontractors.
(j) Youth OJT. OJT conducted under title II-C shall meet the
requirements of subpart H of part 628 of this chapter (628.804), as well
as the requirements of this section. Where OJT is provided to youth
concurrently enrolled under titles II-B and II-C, the source of funding
for the OJT shall govern which requirements apply.
(k) Employment and employee leasing agencies.
(1) Definition. The terms employment agency and employee leasing
agency mean an employer that provides regular, on-going employment
(i.e., not probationary, temporary, or intermittent employment) in a
specific occupation and, for a fee, places employees at the worksite of
another employer to perform work for such employer.
(2) Employment and employee leasing agencies that meet the other
requirements of this section may be eligible for OJT agreements when the
agreement specifies the source of training and specifies that the
payments are for the extraordinary training costs of the entity
providing the training.
