New On-the-Job Training Grants Available to Employers

The U.S. Department of Labor Employment and Training Administration has made $90 million in additional funds available for On the Job Training (OJT) Grants to enable employers to hire dislocated workers.

Participating employers may be reimbursed for training costs at a rate of up to 90% of an OJT participant’s wage, depending on the size of the business and the gap between the participant’s initial skill level and the skill level needed to perform the job.

The funding is available through state workforce agencies and local workforce investment boards in the Workforce Investment Act (WIA) system.

Unlike the usual WIA dislocated worker grants, this new source of funds that may be used to train a broader group of dislocated workers who are more likely to include unemployed claimants.

Any unemployed worker laid off after Jan. 1, 2008, may be considered unlikely to return to their previous industry or occupation, for purposes of determining eligibility for the OJT grant subsidy.

For more information, contact your local Workforce Investment Board.