On-the-Job Training (OJT) Print

Documentation

In OJT, participants are hired by an employer and the employer, rather than a third-party trainer or institution, provides training to the participant. OJT contracts may be used to train a participant who is already working for the employer prior to the start of the OJT but not earning a self-sufficient wage. In such cases, the OJT must related to either 1) the introduction of new technologies, 2) the introduction of new production or service procedures, 3) upgrading to new jobs that require additional skills/workplace literacy, or 4) other appropriate purposes as agreed upon.

In order to provide on-the-job training to participants, the OJT employer must establish a contract with their Regional Workforce Board, the Indianapolis Private Industry Council (Marion County), or the appropriate designee. WorkOne staff will assist the employer to determine the number of workers needed, the skills, experience, and other job requirements usually required for the job. Identification of skill gaps and an individualized training plan must be documented for each participant. WorkOne staff work with the OJT employer to recruit and select OJT participants, with ultimate hiring determinations made by the OJT employer.

State Guidelines for On-the-Job Training

  • OJT must be for occupations in-demand and should be for high-wage or high-demand occupations
  • OJT funds can only be used to pay for training for positions that pay a minimum of $10 per hour, or $20,800 annually
  • OJT reimbursements are limited to 50 percent or less of the wage rate to compensate for the employer’s extraordinary costs of training, lower productivity of the trainee, and additional supervision related to training
  • OJT funds may only be used to reimburse a portion of the participant’s regularly scheduled hours; reimburse for overtime hours is not allowed
  • OJT participants must be compensated at the same wage rates and provided the same benefits and working conditions as other similarly situated employees
  • The duration of an OJT shall be limited to a period of time needed for the participant to become proficient in the occupation, not to exceed six months
  • All job openings for which OJT is to be provided must be posted on Indiana Career Connect
  • Employers cannot use OJT participants to replace laid off workers or to directly or indirectly assist, promote, or deter union organizing

Requirements of Employers
All employers that participate in WIA OJT projects must:

  • Hire the participant at the start of OJT
  • Work with WorkOne staff to determine an appropriate training plan for each participant
  • Sign a contract/training plan for each participant
  • Agree to be reimbursed for wages (rather than paid up front)
  • Pay the participant the same wage, benefits, and wage increases of “regular” new hires
 

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What is Ready Indiana?

Ready Indiana is the Indiana Chamber of Commerce’s workforce education initiative, made possible through support from the Lilly Endowment. Ready Indiana provides assistance to help Indiana employers find and/or develop a skilled workforce through:

  • Workforce training programs and providers
  • Workforce training funding and incentives
  • Workforce training materials and resources
  • Professional development opportunities
  • Indiana workforce-related research and statistics
  • Workforce development news and events