Promising Practice #4
Negotiating On the Job Training Contracts and Customized Training Services
Overview
Many states have developed On the Job Training (OJT) requirements for contractors that are more specific than those mandated by WIA. In response, local boards have established the goal of moving trainees to a wage that meets the local self-sufficiency standard.
Direct policy statements requiring that OJT contracts be used to train high-skill, high-wage occupations are concise and effective. Setting a specific wage threshold provides additional clarity for these policies.
Concurrent with strong policy, engaging business in a win-win approach to develop the highest standards for on-the-job training and outcomes is a must. For instance, in both of the following examples, employers played an integral role in developing the criteria for standards in contracting with employers and defining the types of jobs on which OJT dollars could be spent.
The profiled boards also recognize that it is equally important that the OJT curriculum and strategies respond to the needs of the trainee. Providing for or offering related services for trainees such as occupational, pre-vocational or literacy training substantially increases the success of trainees, particularly those who are moving up from very low-wage, low-skilled employment.
Case Studies:
WIA Law/Regulations
In writing the Workforce Investment Act (WIA), Congress sought to tighten the requirements around use of on-the-job training (OJT) funds to ensure they resulted in meaningful training and skills development, as well as permanent employment for those who participated. Many rules for OJT contracting have been spelled out in legislation and regulations, as well as additional guidance letters from USDOL that have resulted in significant improvement in OJT outcomes:
WIA Section 101(31) defines OJT and outlines basic parameters. Sec. 134(d)(4) provides additional detail on requirements for training services, including OJT.
WIA Regulations at 20 CFR Parts 663.700 through 663.720 contain the provisions for conducting on-the-job (OJT) and customized training activities. They include specific information regarding general, contract, and employer payment requirements.