Training provided to employed workers may only be provided to employees who are not earning a self-sufficient wage, as established by each LWIA. LWIAs are strongly encouraged to enter into training contracts that guarantee workers will receive pay increases that lead to or achieve self-sufficiency.

The Department recognizes that training for employed workers may impact the performance outcomes of a local area. Both the Employment Retention and the Credential measures should be affected positively, since employed individuals who receive training should be assured of being retained by the employer and should be awarded a credential when they successfully complete the training. However, the Earnings Gain measure may be adversely affected, since pay increases that continuously employed training completers receive may not be as high as the earnings gains of those who were not employed at program entry.

Since the Department is encouraging services to employed workers and recognizes the potential adverse effect on the earnings measure, we intend to request that USDOL renegotiate the State's Adult Earnings Gain goal for the second year of WIA (Program Year 2001), taking into account services provided to employed workers. To effectively negotiate with USDOL, the Department will need information from the local areas about pay increases being received or planned for employed workers who complete WIA services.

For LWIAs that are currently operating or plan to operate employed worker programs, and anticipate such programs will adversely impact their adult earnings gain measure, the Department will consider renegotiating their Adult Earnings Gain goal for Program Year 2001. LWIAs will need to provide information that can be used to determine the impact of employed worker programs on their Adult Earnings Gain measure. Such information must include, for each employed worker program, the planned number of employees who will receive training and any expected wage increases to be paid to those employees within 9 months of completion of training. When calculating average weekly earnings after training, be sure to take into account both new hourly wages and hours per week. Also include the total number of individuals in all programs utilizing WIA Title IB Adult funds who will receive training or intensive services during Program Year 2001.

The Department wants to make clear its intent to encourage local areas to provide training to employed workers. It is not the Department's intent to penalize local areas that fail to achieve their Adult Earnings Gain goal due to services to employed workers. Areas that operate employed worker programs during PY 2001 should fully document pay increases for employed workers in their WIA Adult program, so that adjustment can be made to their earnings goal after the PY 2001 program ends.

Definitions of Services to Employed Workers

1. OJT is training provided by an employer to a paid participant while engaged in productive work in a job. OJT –
   1. provides knowledge or skills essential to the full and adequate performance of the job,

   2. 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

   3. is limited in duration to the period of time required for a participant to become proficient in the occupation for which the training is being provided. In determining the appropriate length of the contract, consideration should be given to the skill requirements of the occupation, the academic and occupational skill level of the participant, prior work experience, and the participant's individual employment plan.

   In addition, the OJT must relate to the introduction of new technologies, introduction to new production or service procedures, upgrading to new jobs that require additional skills, workplace literacy, or other appropriate purposes identified by the Local Board.

   Finally, the LWIA must not contract with an employer who has previously exhibited a pattern of failing to provide OJT participants with continued long-term employment with wages, benefits, and working conditions that are equal to those provided to regular employees who have worked a similar length of time and are doing the same type of work.

2. Customized training is training –
   1. that is designed to meet the special requirement of an employer or group of employers,

   2. that is conducted with a commitment by the employer to continue to employ the individuals on successful completion of the training,

   3. for which the employer pays for not less than 50 percent of the cost of the training. (See Technical Advisory 01-5 for additional information.)

   In addition, the customized training must relate to the introduction of new technologies, introduction to new production or service procedures, upgrading to new jobs that require additional skills, workplace literacy, or other appropriate purposes identified by the Local Board.