Policy Chapters and Sections

OJT Reimbursements

Chapter: 7 Section: 2.2.1.1.1
Effective Date: 5/11/2016
Expiration Date: Continuing
Published Date: 8/5/2021 2:23:04 PM
Status: Rescinded
Version: 2

Tags: OJT, Training, Program Eligibility

  1. OJT is provided for a WIOA participant in exchange for a negotiated reimbursement wage rate to compensate for the employer’s extraordinary costs of training and additional supervision related to the training. The "standard" wage reimbursement rate is fifty percent (50%).
    1. The State of Illinois has been given the approval to increase the wage reimbursement rate from fifty percent (50%) to up to seventy-five percent (75%) under WIOA and from seventy-five percent (75%) up to ninety percent (90%) under a May 5, 2020 waiver request that is approved through June 30, 2022.
    2. The LWIB may approve increasing the reimbursement wage rate from the standard fifty percent (50%) to up to ninety percent (90%) when taking into account the following factors:
      1. The characteristics of the participants taking into consideration whether they are “individuals with barriers to employment” thus, LWIB policy may provide a higher rate of reimbursement for individuals who will require more intensive training than individuals without barriers;
      2. The size of the employer;
        1. The LWIB shall consider the size of the business based on the total number of full-time employees at the location where the OJT will occur.
      3. The quality of employer-provided training and advancement opportunities; and
      4. Other factors the LWIB determines to be appropriate, including but not limited to:  the occupation of training, receipt of an industry-recognized credential after training, the number of employees participating, the participant’s work history, labor market conditions, hourly wage, fringe benefits, promotional opportunities, the career planner’s overall training budget, etc. 
    3. An employee in OJT may work overtime hours, but overtime hours are not eligible for wage reimbursement.
    4. Funds provided to employers for OJT must not directly or indirectly assist, promote or deter union organizing.
    5. WIOA funds may not be used to provide OJT if the business has relocated from a location that resulted in any employee losing his or her job at the original location.  In this instance, the business would only be eligible for OJT after they have been operational at the current site for more than one hundred twenty (120) days.