Recovery Act on-the-job training grants

Accessible letter PDF: https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEGL/2010/TEGL04-10acc.pdf

CLASSIFICATION
   EMPLOYMENT AND TRAINING ADMINISTRATION
               ADVISORY SYSTEM                          CORRESPONDENCE SYMBOL
                                                        OWI & ONR
          U.S. DEPARTMENT OF LABOR
                                                        DATE
             Washington, D.C. 20210                     August 6, 2010



ADVISORY:         TRAINING AND EMPLOYMENT GUIDANCE LETTER NO. 4-10

TO:               STATE WORKFORCE AGENCIES
                  STATE WORKFORCE ADMINISTRATORS
                  STATE WORKFORCE LIAISONS
                  STATE AND LOCAL WORKFORCE BOARD CHAIRS AND
                  DIRECTORS
                  STATE LABOR COMMISSIONERS
                  FEDERALLY RECOGNIZED TRIBES

FROM:             JANE OATES /s/
                  Assistant Secretary
                  Employment and Training Administration

SUBJECT:         On-the-Job Training National Emergency Grants (OJT NEGs) Funded with
                 American Recovery and Reinvestment Act of 2009 Resources

1. Purpose. Through this guidance, the Department of Labor is providing additional detail on
   the one-time availability of On-the-Job Training National Emergency Grants (OJT NEGs)
   funded with ARRA resources announced in Training and Employment Notice (TEN) 38-09.

2. References.
   • Training and Employment Notice (TEN), “38-09 American Recovery and Reinvestment
      Act of 2009 On-the-Job Training National Emergency Grants”
   • The American Recovery and Reinvestment Act of 2009 (P.L. 111-5)
   • Workforce Investment Act (WIA), sections 173 and 189(i) (29 U.S.C. 2918)
   • WIA regulations at 20 CFR Part 661, 663 and 671
   • Workforce Investment Act: “National Emergency Grants – Application Procedures,”
      Federal Register Notice, Vol. 69, No. 81, dated April 27, 2004
   • TEGL No. 14-03, “Performance Reporting Submission Procedures for the Workforce
      Investment Act Standardized Record Data (WIASRD) and the Annual Report under Title
      IB of the Workforce Investment Act (WIA),” dated November 13, 2003
   • TEGL No. 16-03, “National Emergency Grant (NEG) Policy Guidance,” dated January
      26, 2004
   • TEGL No. 16-03, “Changes 1-5, National Emergency Grant Policy Guidance”
   • TEGL No. 17-05, “Common Measures Policy for the Employment and Training
      Administration’s (ETA) Performance Accountability System and Related Performance
      Issues,” dated February 17, 2006
   • TEGL No. 13-08, “Allotments for training and employment services as specified in the

 RESCISSIONS                                           EXPIRATION DATE
 None                                                  Continuing

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       American Recovery and Reinvestment Act of 2009 (Recovery Act) for activities under
       the Workforce Investment Act of 1998 (WIA). Workforce Investment Act Adult,
       Dislocated Worker and Youth Activities Program Allotments; Wagner-Peyser Act
       Allotments, and Reemployment Service (RES) Allotments,” dated March 6, 2009
   •   TEGL No. 14-08, “Guidance for Implementation of the Workforce Investment Act and
       Wagner-Peyser Act Funding in the American Recovery and Reinvestment Act of 2009
       and State Planning Requirements for Program Year 2009,” dated March 18, 2009
   •   TEGL No. 19-08, “National Emergency Grants Funded with American Recovery and
       Reinvestment Act of 2009 Resources,” dated April 30, 2009
   •   TEGL 24-08, “Workforce Investment Act and Wagner-Peyser Act Performance
       Accountability Reporting for the American Recovery and Reinvestment Act of 2009,”
       dated May 21, 2009
   •   TEGL 1-09, Changes 1 and 2, Reporting Requirements under Section 1512 of the
       “American Recovery and Reinvestment Act of 2009”
   •   Information Collection Request Forms – ETA 9103, 9104, 9105, 9106, 9107 (OMB
       Control No. 1205-0439); ETA Form 9090 and the Workforce Investment Act
       Standardized Record Data (WIASRD) format (OMB Control No. 1205-0420); ETA Form
       9130 (OMB Control No. 1205-0461); and ETA Form 9148 (OMB Control No. 1205-
       0474)

3. Background. National Emergency Grants (NEGs) are discretionary grants awarded by the
   Secretary of Labor (the Secretary), under section 173 of the WIA, as amended, to provide
   employment-related services for dislocated workers. NEGs are intended to temporarily
   expand service capacity at the state and local levels by providing time-limited funding
   assistance in response to significant dislocation events. Significant events include plant
   closures and mass layoffs as well as other events recognized by the Secretary under 20 CFR
   671.110(f). Significant events are those that create a sudden need for assistance that cannot
   be accommodated within the ongoing operations of the WIA Dislocated Worker (DW)
   formula program, including statewide activities and Rapid Response funds reserved at the
   state level.

4. OJT NEG Overview. The United States supports a very large, diverse, and innovative
   economy. Current economic conditions have intensified the country’s need to employ
   practical and effective solutions to our most pressing socio-economic challenges. President
   Obama created a national response when he signed into law the American Recovery and
   Reinvestment Act of 2009 to mitigate recessionary forces. While the economy is showing
   positive signs, the recession is still playing out in many parts of the country, including an
   increased number of layoffs. As of May 2010, over 14 million workers were unemployed.
   Of the 50 largest metropolitan areas in the US, 16 averaged double digit unemployment rates
   in 2009. During the same period, unemployment rates were: 14.8 percent for African
   Americans; 13.3 percent for Native Americans; 11.5 percent for Hispanics; and 9.3 percent
   for Whites. Job creation has been slow in many urban and rural communities which also has
   lead to prolonged unemployment. For these communities, sustained unemployment rates
   have created an emergency on a scale with the emergencies typically identified with NEGs.
   Because of the widespread scope of recession-related layoffs across the country and their
   significant impact on the workforce system’s ability to assist laid-off workers, the Secretary

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has recognized the impact of the recession on the national workforce as a significant
dislocation event for purposes of one-time ARRA-funded NEG assistance (hereafter referred
to as On-the-Job Training National Emergency Grants, or OJT NEGs), announced by the
Assistant Secretary in TEN 38-09.

President Obama has said, “Now is the time to build a firmer, stronger foundation for growth
that will not only withstand future economic storms, but one that helps us thrive and compete
in a global economy.” Initial signs of economic recovery are emerging. With 1.7 million
layoffs or discharges in April, the layoff rate fell to 1.3 percent, its lowest level in two years.
Furthermore, March’s increase in hires to 4.3 million was maintained in April. As hiring
opportunities expand, it will be critical to provide dislocated workers the opportunity to
acquire the skill sets necessary to fill these positions. This grant opportunity provided $75
million across those areas most severely impacted by the recession, with a focus on creating
On-the-Job Training (OJT) opportunities for dislocated workers. The OJT NEG awards can
be a critical tool in helping workers and communities recover from the effects of the
economic downturn, including plant closures, mass layoffs and smaller worker dislocations
by providing critical WIA services. To the extent possible, OJT NEG project designs will
include strategies to serve dislocated workers with the greatest barriers to reemployment,
including those experiencing prolonged unemployment. It will also be critical for grantees to
identify workers from those industry sectors that experienced high rates of job loss during the
recession, such as construction, manufacturing, transportation and logistics, and
administrative and support services, who can benefit from an OJT opportunity in a new
occupation or industry.

OJTs can bridge the divide between unemployment and employment by addressing gaps in an
individual’s skill level that would hinder them from fully performing a new job. Individuals
who participated in OJTs funded under WIA in the past have demonstrated improved labor
market attachment and enhanced job tenure, as illustrated by higher rates of job placement
and retention. OJT also offers participants a more family-friendly “learn and earn” training
option, allowing individuals a chance at up-skilling while earning a regular paycheck. For
these reasons, OJT is a remarkably viable training pathway for dislocated workers seeking
reemployment. For employers, OJTs offer the unique opportunity to offset initial training
costs to fill skilled positions while building organizational productivity as the participant
learns job requirements. An OJT arrangement can be the impetus for an employer to create the
job opportunity now.

OJT is defined at WIA section 101(31) as training by an employer that is provided to a paid
participant while engaged in productive work in a job that--
    • provides knowledge or skills essential to the full adequate performance of the job;
    • provides reimbursement to the employer of up to 50 percent of the wage rate of the
        participant, for the extraordinary costs of providing the training and additional
        supervision related to the training; and
    • is limited in duration as appropriate to the occupation for which the participant is
        being trained, taking into account the content of the training, the prior work
        experience of the participant, and the service strategy of the participant, as
        appropriate.

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OJT for this project is provided under a contract with an employer in the private for-profit
and non-profit sectors. OJT opportunities may not be created in the public sector using these
funds. Under the OJT NEGs, occupational training is provided by the employer for the
WIA participant in exchange for reimbursement from 50 percent up to 90 percent of
the wage rate depending on employer size or participant skill gaps. This reimbursement
policy is explained in more detail under the heading Training Reimbursement Sliding Scale
within Section 5 of this TEGL.

OJT works best when the employment experience is closely tied to anticipated employment
opportunities after an OJT placement is completed. As stated in the regulations governing
OJT, there is an expectation that the OJT will lead to continued unsubsidized employment
beyond the OJT period. Therefore, a dislocated worker’s potential for permanent
employment with the OJT employer or in the occupation or industry in which the OJT
experience is taking place is an essential component of a quality OJT placement. Grantees
should consider OJT placements in the context of in-demand occupations or industries where
career pathways exist with employer partners who have a documented plan to add jobs.

Grantees should conduct proactive outreach to employers, particularly small businesses,
where OJT opportunities can be utilized to maximum effectiveness for the dislocated worker.
Potential employers must be able to demonstrate their ability to train participants and
document what skills will be acquired. For those employers who meet the grantee’s approval
and are selected as partners, OJT contracts of sufficient detail should be developed to ensure
an optimal training experience, as well as one that maximizes the potential of trainees to be
permanently hired once the training period has ended. Contracts must also adhere to the
Special Policy Guidelines around reimbursement, wage cap, and training duration in Section
5 of this TEGL. Contracts must ensure the employer’s responsibility for documenting skills
gained by dislocated workers during the training period. When possible, industry recognized
credentials should be the end product for applicable occupations. Grantees also are required
to track data on unsubsidized placement and retention as an indicator of successful
employer/participant matches. The data will be useful in determining employers who
followed through with retention of OJT participants on a permanent basis at the end of the
OJT contract. Employers who are unsuccessful in transitioning OJT participants to
permanent employment should not be eligible for future OJT opportunities under this
funding.

In working with employers, grantees are advised to develop policies and procedures to avoid
displacement. 20 CFR Sec. 667.270 of the WIA regulations imposes safeguards to prevent
WIA participants, including those receiving services under an OJT NEG, from displacing
other employees. A participant may not be placed in an OJT slot if: (1) any other individual
is on layoff from the same or any substantially equivalent job; (2) the employer has
terminated the employment of any regular employee with the intention of filling the vacancy
with an OJT participant; or (3) the OJT position infringes on the promotional opportunities of
currently employed workers. It should be noted that the prohibition on displacement may
also include a partial displacement, such as a reduction in the hours of non-overtime work,
wages, or employment benefits of any currently employed employee.

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5. Special Policy Guidelines for OJT NEGs. OJT NEG grantees must adhere to WIA laws
   and regulations governing OJT with a few notable exceptions described in this section below.

   A. Training Reimbursement Sliding Scale
       Grantees may use grant funds to reimburse employers for the extraordinary cost of
       training OJT participants, e.g. the costs of overhead associated with providing the
       training, shadowing, mentoring and additional supervision that are part of a quality OJT
       placement. The reimbursement amount will be a negotiated percentage of the wage being
       paid to the participant. The wage level on which the reimbursement is based cannot
       exceed the State’s average hourly wage (the “wage cap”; as discussed below in Section
       B). For OJT NEGs, the negotiated reimbursement percentage may be as high as 90
       percent of the participant’s hourly wage (subject to the wage cap) based on either of the
       following conditions:

              Employer size: (1) up to 90 percent of the participant’s wage rate for employers
              with 50 or fewer employees; and (2) up to 75 percent of the participant’s wage
              rate for employers with 51-250 employees. Employers with more than 250
              employees are limited to the standard WIA cap of 50 percent.

              Participant skills gap: Where there is an extraordinarily large gap between the
              skills of the individual and the skills needed for the job, a sliding scale up to 90
              percent may be used to reflect the degree of the individual participant’s skills gap.

       These flexibilities are optional and may be used independent of one another. It should be
       emphasized that grantees need not apply for waivers to obtain these flexibilities. The
       sliding scales for reimbursement will be built into the terms and conditions of the grant
       award. Grantees are responsible for developing their own policies to assess individual
       participants’ skill gaps as well as determining the appropriate tools the state will use to
       measure it. There are several tools that are useful in determining the skills necessary for
       specific occupations and industries. Some of these include:

              •   Industries: Competency Model Clearinghouse
                   www.CareerOneStop.org/CompetencyModel
                      o Includes competency models for bioscience, construction, automation,
                          and more
              •   Occupations: O*NET Online http://online.onetcenter.org
                      o Occupational Competency Profiles contain: tasks, knowledge, skills,
                          abilities, detailed work activities
              •   Certification Finder:
                  http://www.careerinfonet.org/certifications_new/default.aspx
                      o Includes certifications for hundreds of occupations

   B. Wage Cap
      For the purposes of these OJT NEGs, the training reimbursement described above is
      restricted by a wage cap. ETA has established a wage cap policy that the training

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    reimbursement level is not to exceed a percentage (up to 50 percent through 90 percent
    as described in the previous section A) of the state’s average hourly wage rate. That is,
    the training reimbursement percentage is applied against the participant’s wage rate
    unless the wage rate exceeds the state’s average hourly rate. In that case, the training
    reimbursement percentage must be applied against the state’s average hourly rate.

    This limitation on the training reimbursement provides grantees with latitude in the type
    of occupations that can be targeted while maximizing the number of OJT opportunities.
    Grantees may enter into contracts with employers who elect to pay participants more than
    the state average wage; however, the employer cannot receive a training reimbursement
    beyond a percentage (determined by the sliding scale) of the capped level.

    The states’ average hourly wage rate is provided by the Bureau of Labor Statistics in the
    Quarterly Census of Employment and Wages. The most up-to-date annual data are for
    2009. The hourly wage caps for each state can be found in the table below.

                                           State Average Hourly Wage Rate

                S TA TE                 AV E . H O U RL Y W AG E                     S T ATE              AV E . HO U R LY W AG E
       Ala ba m a                                   $ 1 8.0 3                 N eb r as ka                        $ 17 .9 4
       Ala ska                                      $ 2 3.4 1                 N ev ad a                           $ 19 .4 2
       Ar izo na                                    $ 1 9.6 7                 N ew H am p sh ir e                 $ 21 .0 2
       Ar k an sa s                                 $ 1 6.6 5                 N ew Jer se y                       $ 24 .0 4
       C a lif or n ia                              $ 2 3.8 2                 N ew Me xico                        $ 18 .7 1
       C o lo r ad o                                $ 2 2.1 1                 N ew Yo rk                          $ 24 .4 2
       C o nn ec ticut                              $ 2 4.5 0                 N or th C a r olin a                $ 18 .9 5
       D e la w ar e                                $ 2 2.2 5                 N or th D a ko ta                   $ 17 .3 1
       D istr ict of C olu m b ia                   $ 3 4.0 1                 O h io                              $ 19 .3 7
       F lor id a                                   $ 1 8.9 6                 O k la h om a                       $ 17 .2 2
       G e o rg ia                                  $ 1 9.8 8                 O r e go n                          $ 20 .4 5
       H a wa ii                                    $ 2 0.5 6                 Pe n nsylva nia                     $ 20 .2 1
       Id ah o                                      $ 1 8.2 3                 R ho d e I slan d                   $ 21 .3 1
       Illino is                                    $ 2 2.1 7                 So u th C ar o lin a                $ 17 .8 1
       In dia na                                    $ 1 8.4 3                 So u th D ak ota                    $ 16 .0 2
       Io w a                                       $ 1 7.7 7                 T e nn es see                       $ 17 .9 6
       Ka n sas                                     $ 1 8.5 2                 T e xas                             $ 19 .7 6
       Ke n tu cky                                  $ 1 7.9 7                 U ta h                              $ 18 .8 6
       L ou isian a                                 $ 1 7.6 0                 Ve r m on t                         $ 19 .6 8
       M ain e                                      $ 1 8.5 3                 Vir g in ia                         $ 22 .2 9
       M ar yla nd                                  $ 2 3.8 0                 W a shin gt on                      $ 22 .9 7
       M as sac hu se tts                           $ 2 5.3 4                 W e st V ir gin ia                  $ 16 .6 2
       M ichig an                                   $ 2 0.6 4                 W isco ns in                        $ 19 .3 2
       M inn es ota                                 $ 2 1.6 0                 W yo m in g                         $ 19 .1 9
       M ississip pi                                $ 1 6.1 4                 G u am                              $ 14 .3 3
       M isso ur i                                  $ 1 8.8 7                 Pu e rt o R ico                     $ 12 .3 5
       M on ta n a                                  $ 1 6.8 7                 Vir g in Is la n ds                 $ 16 .8 5
       So u rce : B u re au o f L ab o r Sta tisti cs 2 0 09 O cc u pa tio n al E m p lo ym e n t Sta tist ic s


It should be noted that employers are required to compensate OJT participants at the same rates
as trainees or employees who are similarly situated in similar occupations by the same employer
and who have similar training, experience, and skills (WIA Sec. 181(a)(1)(A) ). Therefore, if the
job pays less than the capped level for similar work, the OJT wages and training reimbursement
should be based on this lesser level. The OJT employee should not be paid more simply because
the state’s average wage makes available a higher reimbursement threshold.

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Two examples may help to illustrate reimbursement within the wage cap:

       i. A participant in Pennsylvania may enter OJT as an insurance cost estimator, the
          average hourly wage for which is $28.50 (above the wage cap). Since the average
          hourly wage for Pennsylvania is $20.21, the employer may only be reimbursed at
          some percentage of this wage cap (determined by the employer’s size or the skills
          gap of the trainee). However, the employer must compensate the participant at the
          same rate as the person sitting next to the trainee doing the same job with similar
          levels of training, experience, and skills.

       ii. A participant in Pennsylvania may enter OJT as a certified nursing assistant, the
           average hourly wage for which is approximately $11.00 (below the wage cap).
           Even though the average hourly wage cap for Pennsylvania is $20.21, the OJT
           reimbursement level must be based on a wage deemed equal to other employees
           doing the same job with similar levels of training, experience, and skills. The
           reimbursement would be some percentage of the wage (to be determined by
           employer size or skill gaps of the trainee). In this case, the wage level would be
           lower than the capped level. Therefore, the reimbursement level would be applied
           against the full wage rate.

 C. OJT Duration Limit
    OJT NEGs are a special initiative under ARRA and, as TEN 38-09 and this TEGL
    indicate, the current economic conditions have contributed to an increased number of
    significant layoff events across the country. Since resources are limited, ETA has
    determined that the period of reimbursement will be limited to six months to maximize
    opportunity. Individuals may not be co-enrolled in other ETA programs for the purpose
    of extending OJT beyond six months. Six months exceeds the average length of time for
    current WIA OJT activities, so employers who require less time to train OJT participants
    should be encouraged to transition participants to permanent employment as soon as
    possible.

 D. OJT Contracts
    OJT contracts funded under OJT NEGs must comply with the following requirements:
    i. OJT positions cannot be developed with public sector employers or with employers:
             a. which are casinos or other gambling establishments, swimming pools,
                 aquariums, zoos, and golf courses.
             b. that will or may displace workers (see 20 CFR Sec. 667.270).
             c. have relocated all or part of their business within the previous 120 days where
                 the relocation action has resulted in the loss of employment of any employee
                 at the original location.
    ii. Contracts must include the criteria for employer reimbursement.
    iii. Contracts must ensure the employer’s responsibility for documenting skills gained by
         dislocated workers during the training period.

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6. Partnerships. It is ETA’s expectation that roles of partners including business, organized
   labor, other government agencies and Community Based Organizations (CBOs) be defined in
   the implementation plan. It should also be noted that a substantial connection to the local
   workforce system is an OJT NEG requirement.

   As TEN 38-09 outlined, where possible, CBOs may play a special role in these grants,
   especially in the recruitment of OJT participants and identifying OJT opportunities. They
   may also act as intermediaries offering contacts to community employers for potential OJT
   creation or be potential employers themselves.

   However, a number of other roles for CBOs should be explored. The local knowledge base,
   wrap-around service resources, training capability and key community networks of CBOs can
   be utilized as value-adding components of the OJT NEGs. Integrating the local networks,
   community awareness, resources and services available through CBOs into the project can
   enhance the wrap-around support provided to participants, as well as the community-specific
   information and contacts to aid program implementation. Such value-adding resources
   should not go untapped.

   CBOs can play a critical support role in the individual’s transition from dislocated worker to
   OJT participant, ranging from the provision of supportive services (such as transportation
   assistance, child care, access to food banks and other community resources) to direct off-site
   training, counseling and/or mentoring activities for participants, particularly as related to
   basic employability, low English proficiency, substance abuse, disabilities, or other key
   barriers to successful participation in OJT.

7. Eligible Participants. Participation in projects funded with these OJT NEGs will be limited
   to dislocated workers with special consideration for dislocated workers experiencing
   prolonged unemployment and those with the greatest barriers to reemployment.

   WIA Section 101(9) defines the term dislocated worker as an individual who meets one of
   the following four categories:

   (A) (i) has been terminated or laid off, or who has received a notice of termination or layoff,
       from employment;
       (ii)(I) is eligible for or has exhausted entitlement to unemployment compensation; or (II)
       has been employed for a duration sufficient to demonstrate, to the appropriate entity at a
       one-stop center referred to in section 134(c), attachment to the workforce, but is not
       eligible for unemployment compensation due to insufficient earnings or having performed
       services for an employer that were not covered under a State unemployment
       compensation law; and
       (iii) is unlikely to return to a previous industry or occupation;

   (B) (i) has been terminated or laid off, or has received a notice of termination or layoff, from
       employment as a result of any permanent closure of, or any substantial layoff of, a plant,
       facility, or enterprise;

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       (ii) is employed at a facility at which the employer has made a general announcement that
       such a facility will close within 180 days; or
       (iii) for purposes of eligibility to receive services other than training services described in
       section 134(d)(4), intensive services described in section 134(d)(3), or supportive
       services, is employed at a facility at which the employer has made a general
       announcement that such a facility will close;

   (C) was self-employed (including employment as a farmer, a rancher, or a fisherman) but is
       unemployed as a result of general economic conditions in the community in which the
       individual resides or because of natural disaster; or

   (D) is a displaced homemaker.

   Because the recent economic downturn has had such a severe impact on the nation’s
   ability to create and sustain jobs, workers whose layoffs occurred since the onset of the recent
   recession (January 1, 2008) may be considered to be unlikely to return to their previous
   industry or occupation for purposes of determining eligibility for part A (iii) of the Dislocated
   Worker definition above.

   As noted earlier in this TEGL, to the extent possible, ETA expects project designs to include
   strategies to serve dislocated workers with the greatest barriers to reemployment including
   those experiencing prolonged unemployment. Prolonged unemployment refers to a period of
   joblessness beyond the state’s average weeks for Unemployment Insurance (UI). The number
   of weeks is the important indicator, not the UI status. Therefore, an individual not covered
   by UI (ineligible or exhaustee) may still be identified as experiencing prolonged
   unemployment if s/he exceeds the specified duration.

8. Implementation Plans for Grantees. By August 31, 2010, the grantee, through the NEG
   electronic application system (eSystem), must develop and submit an implementation plan to
   the Regional Office, the Grant Officer and the Office of National Response that describes in
   detail how OJT NEG funds will be used to create and implement an OJT project. Grantees
   will be allowed to draw down and expend up to 10 percent of their award to support the
   development and submission of the grantee implementation plan as well as other preparatory
   and participant service activities.

   The implementation plan process allows states to work with statewide and regional
   representatives, CBOs and intermediaries to design OJT projects appropriate for local labor
   markets. It is expected that the implementation plans will identify and ultimately provide
   services to hard-to-serve communities and populations, and identify OJT funding needs based
   on populations, local industry, occupations and employer partnerships.

   Implementation plan criteria were provided to each grantee as part of the grant award
   documents and can also be found in Attachment I of this TEGL. Submission of a quality
   implementation plan is required as part of the grant’s terms and conditions for grantees to be
   able to access their total grant award. An OJT NEG Implementation Plan Modification User
   Guide will be provided to all grantees to explain the submission process.

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9. Administrative Costs. Administrative costs are allowable at all levels so long as the total
   administrative costs do not exceed 10 percent for the overall grant per the standard NEG
   Guidelines. An applicant could propose to exceed the 10 percent overall limitation if a
   justification is provided and approved by the Grant Officer. Administrative costs are defined
   at 20 CFR 667.220. Staffing costs (Administrative or Program) are allowable costs and are
   subject to the OMB Cost Principles, including, for example, the “necessary, reasonable and
   allocable” criteria.

10. Funding. Each OJT NEG grantee received a Notice of Obligation (NOO) which indicated
    the amount awarded to the grantee. As stated earlier, grantees will be limited to drawing and
    expending up to 10 percent of their award for implementation planning and other limited OJT
    preparatory project and participant service activities. These activities must be in general
    accordance with the conditionally approved application. The period of performance for OJT
    NEGs will be for 12 months from date of award. A no-cost extension may be provided for up
    to an additional 12 months subject to justification and approval by the Grant Officer. All
    funds must be expended by June 30, 2012.

11. OJT Technical Assistance. ETA will be offering technical assistance to help grantees with
    the development of their implementation plan. The new OJT Toolkit website is now live.
    This toolkit was designed with the substantial input from various stakeholders at the State
    and local level. It includes sample OJT policies and procedures, contracts, monitoring tools
    and other useful documents. Grantees may access this information at:
    http://ojttoolkit.workforce3one.org/page/home. All other materials, including TENs, TEGLs,
    and Policy Questions and Answers may be accessed through the Department’s dedicated OJT
    NEG Web site: http://www.doleta.gov/layoff/Job_Training.cfm.

12. Performance and Fiscal Reporting for OJT NEGs. To ensure ETA is able to assess the
    success achieved under these OJT NEGs and other WIA programs, the collection of
    accurate, quality data is instrumental in assuring financial and performance accountability.
    To satisfy statutory and regulatory recordkeeping and reporting requirements, states must
    report characteristics, services received, and outcomes of participants served with WIA
    funds, including these OJT NEGs. Such information is critical to determine the success of
    these investments. The following performance and fiscal reports are required:

   •   ETA 9090 – WIA Quarterly Report (OMB Control No. 1205-0420);
   •   Workforce Investment Act Standardized Record Data (WIASRD) Quarterly Submission
       (OMB Control No. 1205-0420);
   •   ETA 9148 WIA Adults, Dislocated Workers, and National Emergency Grants Monthly
       Report (OMB Control No. 1205-0474). This report is submitted by each state on the 15th
       of each month to ETA for the previous month. Accurate monthly counts of OJT NEG
       participants provide a means to track the progress of OJT NEGs as they are implemented.
       This is important because it provides ETA with an early warning system to identify
       grantees that may be in need of technical assistance to get their OJT NEG operational.
   •   ETA 9130 – U.S. DOL ETA Quarterly Financial Status Report (OMB 1205-0461);
   •   ETA 9104 – NEG Quarterly Performance Report (QPR) (OMB 1205-0439);
   •   ARRA Section 1512 – Quarterly Recipient Report. Please note, the ARRA recipient

                                               11

       report is submitted by direct recipients or designated sub-recipients of ARRA funds to
       OMB through an electronic reporting system at www.FederalReporting.gov, no later than
       the 10th day after the end of each calendar quarter. This Recipient Report contains
       cumulative data on the projects and activities funded by ARRA from the inception of the
       grant award (jobs created/retained data is quarterly). For additional reporting guidance
       and references, see TEGL 1-09, Change 1 and 2, Reporting Requirements under Section
       1512 of the American Recovery and Reinvestment Act of 2009 as well as OMB guidance
       found at www.recovery.gov.

   In addition, the WIASRD must be submitted quarterly on all participants and exiters from
   OJT NEGs. In order to evaluate the success of OJT NEGs, it is imperative that states make
   every effort to submit the required reports on a timely basis, and that they be accurate and
   complete. There are a few important WIASRD elements pertaining to OJT and NEG funding
   sources that must be completed for OJT NEG participants:

           •   WIASRD data items 340 and 341 (Type of Training Service #1 and Type of
               Training Service #2) are the sources for determining which individuals received
               OJT. A lack of complete data on these WIASRD elements will result in an
               undercounting and underreporting of the number of individuals who received
               OJT;
           •   WIASRD data item 342 (Occupational Skills Training Code) is important because
               it contains information on the occupation in which the individual was trained.
               This information facilitates the identification of occupations where OJT most
               often occurs or where it is the most successful in obtaining better employment
               outcomes for workforce system customers;
           •   WIASRD data items 313a, 313b and 313c (1st, 2nd, and 3rd NEG Project IDs) in
               conjunction with WIASRD data item 326 (Other WIA or Non-WIA Programs)
               make possible the isolation of individuals who were provided OJT through these
               ARRA-funded NEGs.

   Individuals in any OJT NEG will not count against the performance of the credential
   attainment measure for WIA programs. States also may request a time limited waiver to
   also exclude OJT NEG participants who are co-enrolled in other WIA programs so that the
   credential result for that individual would not count against performance of either program.
   It should be noted that while the individual does not count against performance of this
   measure, the data on credential attainment for each individual must still be collected and
   reported by the grantee in the WIASRD and submitted to ETA.

   The number of participants and exiters in the OJT NEGs must be included in the quarterly
   aggregate counts submitted by states in the ETA 9090, WIA Quarterly Report.

13. Paperwork Reduction Act (PRA) Statement. Under the PRA, a Federal agency may not
    conduct or sponsor a collection of information, nor is the public required to respond to a
    collection of information, nor may any person be subject to a penalty for failing to comply
    with a collection of information, unless it is approved by the Office of Management and
    Budget (OMB) under the PRA, and displays a currently valid OMB control number (44

                                                 12

   U.S.C. 3507). The currently valid OMB Control Number for this collection is OMB Control
   No. 1205-0439.

14. Action Requested. Grantees must complete an implementation plan within 60 days of
    award. Please distribute this information to all appropriate state and local officials, including
    local workforce investment board chairs, administrative entities, chief elected officials and
    One-Stop Career Centers.

15. Inquiries. Any questions regarding program and policy issues for the OJT NEGs should be
    directed to the appropriate ETA Regional Office. Requests for NEG eSystem access or
    technical assistance with the electronic submission of the implementation plan modification
    should be sent to [email protected].

16. Attachment.

   Attachment I – Implementation Plan Narrative Criteria

Attachment 1 (official PDF): https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEGL/2010/TEGL04-10a1.pdf

Attachment I: Implementation Plan Narrative Suggested Template


                    OJT NEG Grants Implementation Plan Narrative

Name of State or Native American      Date Submitted    Grant Number
Tribe




Additional Information will be provided to support implementation planning, including a
listing of specific criteria for the review of the implementation plan and the OJT NEG TEGL.
The new OJT Toolkit website is now live. This toolkit was designed with the substantial input
from various stakeholders at the State and local level. It includes sample OJT policies and
procedures, contracts, monitoring tools and other useful documents. Grantees may access this
information via the following web link: http://ojttoolkit.workforce3one.org/page/home

(A) STATEMENT OF NEED

   (I)     Geography

   Identify each local area that has been disproportionately impacted by the current economic
   downturn in which the project will operate. Provide a map highlighting these areas.
   Provide a brief description of each area according to the following key indictors:
   unemployment rate; poverty rate; number of dislocated workers; number or percent of the
   unemployed population whose period of unemployment is longer than the State’s average
   UI duration (i.e. prolonged unemployed); and other factors used in the selection of these
   areas.


Prolonged Unemployed: Individuals who are experiencing a period of unemployment longer
than the State’s average Unemployment Insurance duration.

   (II)    Labor Market Information (LMI) Analysis

   For each local area included, provide a brief LMI analysis, to the extent possible, with a
   description of:
      • The occupations of local dislocated and prolonged unemployed workers.
      • Industries experiencing high rates of job loss, (i.e. automotive, aerospace, textile,
          etc.).
      • Projected growth occupations and sectors offering employment, and/or those that
          could hire re-skilled workers with OJT NEG assistance.
      • Projected skills gaps between unemployed workers and the requirements of targeted
          occupations, including occupations for which there are known skills-shortages. (It is
          not anticipated that this will be known with any precision until individual
          assessments are completed, but what is expected and how does this correlate to the

Attachment I: Implementation Plan Narrative Suggested Template


           planned mix of services and to the estimated training duration as discussed in
           Section C.)


(B) TARGET POPULATION

Eligible Participants: Persons who meet the Dislocated Worker definition at WIA section
101(9). Workers laid-off since January 1, 2008 may be considered as unlikely to return to their
previous occupation for purposes of determining eligibility (See TEN 38-09). This helps
clarify part A (iii) of the Dislocated Worker definition. To the extent possible, Grantees should
develop program designs which incorporate dislocated workers who are experiencing
prolonged unemployment.

   (I)     Participant Identification and Outreach

   Describe the process to be used to identify participants for the OJT program, including any
   specialized outreach efforts. If a role for Community Based Organizations is planned for
   participant identification or outreach, please note briefly here and provide a more complete
   description in Section D.

   (II)    Selection Criteria

   Describe the criteria to be used to select participants if the pool of potential participants is
   larger than the available employer slots. What special consideration will be granted to
   those individuals experiencing prolonged unemployment (i.e., a period of unemployment
   longer than the State’s average Unemployment Insurance duration)? What percentage of
   OJTs do you expect to fill with individuals experiencing prolonged unemployment?

(C) PROJECT DESIGN

   (I)     Overall Project Design

   Provide an overview of your project design including:
          • Your plan for using the OJT NEG resources to return to gainful employment
              workers with the greatest barriers to reemployment, including those
              experiencing prolonged unemployment. Describe the use of WIA core,
              intensive, training and other supportive services.
          • The partners, resources, assets, and information that are being assembled to help
              you achieve the plan.
          • How this service delivery strategy supports both employers and dislocated
              workers in the impacted area(s)?

   (II)    Employer Recruitment and Selection

   Describe the information and process that will be used to identify and recruit employers
   who will be good potential candidates for the training and employment opportunities

Attachment I: Implementation Plan Narrative Suggested Template


   envisioned in this initiative. Identify the criteria that will be applied in selecting specific
   employers for participation. Describe safeguards to protect against the displacement of
   workers as a result of OJTs created through this grant. Discuss the process to orient
   employers to their responsibilities both in training and retaining workers, and any other
   planned technical assistance.


Appropriate Employers: OJT positions cannot be developed with public sector employers or
with employers:

    - which are gambling establishments, swimming pools, aquariums, zoos, and golf
       courses.
    - that will or may result in displacement of current employees.
    - have relocated all or part of their business within the previous 120 days where the
       relocation action has resulted in the loss of employment of any employee at the original
       location.


   (III)   Service Delivery Management Structure

   Provide a description of how the service-delivery system will be operated. What entity or
   entities will be responsible for participant assessment; developing contracts with
   businesses; gathering information and data reporting; monitoring the project; and assuring
   fiscal accountability? For each organization, describe its experience and capacity to
   conduct the function(s) effectively.

   (IV)    Assessment Procedures

   Provide a description of the assessment procedures that will allow the Grantee to determine
   dislocated worker skill levels and gaps (this may include one-on-one comprehensive
   assessments and/or software tools, as applicable).

   (V)     Matching Training Needs with Employer Needs

   Provide a description of how the assessment information gathered through the process
   described in section (C) (IV) will be used to match the participant’s training needs with the
   prospective employer’s business needs. If available, provide a list of participating or
   potential employers. This initial list does not preclude the Grantee from adding new
   employers.

   (VI)    Subgrants, Contracts and Subcontracts

   Describe Grantee policy regarding the development and management of subgrants,
   contracts and subcontracts, including the type and frequency of monitoring the Grantee will
   carry out. What entity or entities will be fiscally and programmatically responsible for the
   grant funds? How will current policies be adjusted with regard to special policy guidelines
   for OJT NEG Projects?

Attachment I: Implementation Plan Narrative Suggested Template



See Section 5 of the OJT NEG TEGL for details on special policy guidelines for the OJT NEG
Project. This includes:
           • Training Reimbursement
                     i. Wage Cap
                    ii. Sliding Scale Reimbursement Percentage
           • OJT Duration Limit
           • Allowable Employers
           • OJT Contracts
                     i. Allowable Employers
                    ii. Employer Documentation of Skills
                   iii. Criteria for Reimbursement


   (VII) Reimbursement Guidance and Policies

   Describe the policies that will guide the determination of training reimbursements to
   employers. Describe how the Grantee plans to use the additional reimbursement flexibility
   (from 50% up to 90%) available under this OJT NEG, based on participant skill gaps or
   employer size. Identify the entity(ies) that will be responsible for processing the requests
   for reimbursements. Identify the entity(ies) that will verify the wage rate is the same as
   similar positions in the business? Identify the entity(ies) that will verify that there is no
   displacement of other employees? What practices will the grantee use to maximize
   permanent hiring and job retention?

   (VIII) Cost Per Participant

   Provide an explanation of how the cost per participant was determined. Include in your
   description expected administrative costs (not to exceed 10% of award), staff salaries,
   average wage for OJT placements, average duration of training for the targeted
   occupations, employer reimbursement levels, costs and description of supportive services,
   and any other details related to your anticipated cost per participant. Provide the State’s
   prior year (i.e., PY 2008) OJT cost per participant for the WIA Dislocated Worker
   program, if available.


(D) PARTNERS AND INTERMEDIARIES

   (I)    List of Partners

   Provide a list of all engaged partners (workforce system partners, business associations,
   Federal, State and local government, CBOs, organized labor, foundations, etc.) and
   describe the roles of each.

Attachment I: Implementation Plan Narrative Suggested Template


   (II)    Anticipated Leveraged Resources

   Provide a description of key anticipated leveraged resources and services, and link each
   resource to the partnership discussed in item (I).

   (III)   Partner and Intermediary Outreach

   Describe how you will conduct outreach to other potential partners and intermediaries,
   including how you will comply with procurement requirements.

   (IV)    Role of Workforce Investment Boards

   Describe the local Workforce Investment Boards’ role and responsibility for the project, as
   well as the roles and responsibilities of key subcontractors to the LWIBs. How will the
   operation of the project intersect with One-Stop activity for outreach, referrals and tracking
   of participants, reporting, etc.?


(E) PERFORMANCE & FINANCIAL REPORTING


Required Reports:
   • ETA 9090 – WIA Quarterly Report (OMB Control No. 1205-0420);
   • Workforce Investment Act Standardized Record Data (WIASRD) Quarterly
      Submission (OMB Control No. 1205-0420);
   • ETA 9148 WIA Adults, Dislocated Workers, and National Emergency Grants Monthly
      Report (OMB Control No. 1205-0474); This report is submitted by each State on the
      15th of each month to ETA for the previous month. Accurate monthly counts of OJT
      NEG participants provides a means to track the progress of OJT NEGs as they are
      implemented across the country. This is important because it provides ETA with an
      early warning system to identify Grantees that may be in need of technical assistance to
      get their OJT NEG operational.
   • ETA 9130 – U.S. DOL ETA Quarterly Financial Status Report (OMB 1205-0461);
   • ETA 9104 – NEG Quarterly Performance Report (QPR) (OMB 1205-0439);
   • ARRA Section 1512 – Quarterly Recipient Report. Please note, the Recovery Act
      recipient report is submitted by direct recipients or designated sub-recipients of ARRA
      funds to OMB through an electronic reporting system at www.FederalReporting.gov,
      no later than the 10th day after the end of each calendar quarter. This Recipient Report
      contains cumulative data on the projects and activities funded by ARRA from the
      inception of the grant award. For additional reporting guidance and references, see
      TEGL 1-09, Change 1 and 2, Reporting Requirements under Section 1512 of the
      American Recovery and Reinvestment Act of 2009.

In addition, the Workforce Investment Act Standardized Record Data (WIASRD) must be
submitted quarterly on all participants and exiters from the NEG. In order to evaluate the

Attachment I: Implementation Plan Narrative Suggested Template


success of OJT NEGs, it is imperative that States make every effort to submit the required
reports on a timely basis, and that they be accurate and complete. There are a few important
WIASRD elements pertaining to OJT and NEG funding sources to be completed:

            1. WIASRD data items 340 and 341 (Type of Training Service #1 and Type of Training
         Service #2) are the sources for determining which individuals received OJT. A lack of
         complete data on these WIASRD elements will result in an undercounting and
         underreporting of the number of individuals who received OJT;
            2. WIASRD data item 342 (Occupational Skills Training Code) is important because it
         contains information on the occupation in which the individual was trained. This
         information facilitates the identification of occupations where OJT most often occurs or
         where it is the most successful in obtaining better employment outcomes for workforce
         system customers;
            3. WIASRD data items 313a, 313b and 313c (1st, 2nd, and 3rd NEG Project IDs) in
         conjunction with WIASRD data item 326 (Other WIA or Non-WIA Programs) make
         possible the isolation of individuals who were provided OJT through ARRA-funded
         NEGs.


   (I)      Performance Information and Measures

   All Grantees must list expected performance levels for Entered Employment Rate,
   Employment Retention Rate and Average Earnings. For State Grantees, indicate whether
   the Grantee anticipates meeting its negotiated Dislocated Worker formula program
   performance levels, (in the case of Indian and Native American Tribes, 166 performance
   levels apply). Provide an explanation for any anticipated variations from these levels.

   All Grantees must also indicate how the Grantee will gauge skill attainment for
   participants. Indicate the anticipated total number of participants, number of participants
   who will earn a credential (including degree and/or certificate), completers, and the percent
   that the Grantee expects to be retained after 6 months.