Purpose of the OJT

An On-The-Job Training, or OJT, is meant to be an incentive to the employer to hire a client.  It is not to be used as an assessment tool.  This is to be utilized when an employer is interested in hiring a client but has concerns surrounding the additional training the client requires to learn job responsibilities.  This is an incentive which requires the employer to hire the client and allows VR to reimburse the employer for training related expenses while the employee is in the start of their employment.  The expectation is that this will be permanent employment for the client, that employment will not end upon conclusion of the OJT.  

The following are important requirements regarding OJTs:

• All OJTs should be paid.  We should not be conducting unpaid OJTs, as the client is being hired by the company and placed on their payroll.  The goal is that this should be permanent employment for the client, so the pay for the position should be something acceptable to them.  The trainee should be paid a wage commensurate with the usual starting wage paid for the position or type of position being trained in.  We cannot exceed $4000 per OJT per job goal which includes any FICA calculated in the hourly training fee.
• OJTs are conducted with a private business, government office, quasi-governmental program or a non-profit organization.  The trainee is set up on the business’ payroll.  This establishes the employer-employee relationship and the employer’s responsibility for payroll tax, Workers’ Compensation Liability and both FICA and Medicare reporting.
• We should not be entering into OJTs with an employer who has previously exhibited a pattern of failing to provide OJT participants with continued permanent 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.
• Planned in the client’s IPE.

 

Additional Concerns

Income Tax:  Income from an OJT is not exempt from income tax; hence, the client will be issued a W-2 by the employer of record in January. 

Co-funding an OJT with public programs:  When co-funding an OJT with Veterans Administration Veteran Readiness and Employment Service (Chapter 31-VA VR-E), WIA Adult, Dislocated Worker and Youth Services Programs, or a State or Federal Workers Compensation Program the coordinated and combined funding between these specific programs and VR cannot exceed the actual cost of the OJT. VR’s portion of the funding is subject to all the policies, procedures, and fees described in this program manual chapter and Rule 72.

Length of Training and Schedule:  OJT - Negotiated based on the complexity of the job duties and skills, the needs of the business and the availability of the client.  Training cannot exceed 40 hours in a workweek.

OJT Letter:  A letter summarizing the agreed upon details of the training is sent to the employer or placement site prior to the start of the training.

Job Coaching:  A job coach may be provided in conjunction with an OJT if there is an appropriate need. Service Agreement is required.

Termination of Training:  May be terminated by the training site supervisor, by VR or by the client.

Expectation of Hiring:  While it is preferred that the business, government office, quasi-governmental program, or non-profit organization maintain employment for a client upon successfully completing the OJT, there is no obligation to do so, if there were documented concerns during the course of the OJT.  It should be noted that we should 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.

1. Determine the need for an OJT that matches the client’s job goal, abilities, interests, and labor market demands.

2. Consult with the VR Benefits Specialist along with client if they are an SSDI and/or SSI recipient about the potential impact the wages from the OJT will have on their benefits. 

3. Locate an employer who is willing and able to provide the desired employment. 

4. Negotiate the essential details of the OJT (training fee, start and end dates, training schedule, knowledge, skills, abilities and/or behaviors to be acquired or updated, the agreed upon level of follow-up and invoicing schedule). 

• A.  Length of the OJT should match what the usual training period is for a new hire in that job and for that business. Many entry level jobs only require one or two weeks of training.
• B. If an OJT is expected to go beyond the normal training period for that position, a practice of paying a percentage of the wage is often used (i.e., pay 75% to start, reduce to 50%, 25%, etc. over the subsequent weeks of training). If the employer is not set up in QE2 and Enterprise One, collect the necessary information to set the employer up as a Provider. See Create Provider Instructions.
• C.  Determine if the business is already in QE2 as a provider; if not, please reference Create Provider chapter for instructions.

Note: For those situations where VR is co-funding an OJT with (1) Veterans Administration Veteran Readiness and Employment Service (Chapter 31-VA VR-E), (2) WIA Adult, Dislocated Worker and Youth Services Programs, or (3) a State or Federal Workers Compensation Program, VR’s funding cannot exceed the Appendix B Fee Schedule in Rule 72 and the combined funding with these programs cannot exceed the actual cost of the OJT. 

5. Ensure the employer for an OJT understands the trainee must be set up as an employee of their business for purposes of payroll taxes, social security, and Medicare reporting. 

6. Enter the service “On-the-Job Training: On-the-Job Training” in QE2 if not already entered and select the employer as the Provider. 

7. Complete paperwork per these instructions: 

• Prepare the OJT Letter Form to the employer.  If needed, prepare and send the OJT invoice to the employer.  This form is optional.
• Prepare Case Service Authorization for the client’s employer.
  • • Include hourly rate and number of training hours.
    • For total encumbrance, multiply hourly rate X number of training hours and, if FICA is included, X 1.0765.
    • Send the OJT Letter, OJT Invoice form(s) and Case Service Authorization to the employer. 

8. Monitor OJT as agreed to with training site supervisor.

Monitoring should be completed at least once a month and can be done through documented phone calls, and/or on-site visits, or the employer’s performance appraisal form. The VR Specialist or their designee may complete the On-the-Job Report after receiving feedback from the site supervisor. This includes the employer's ratings of the client for Unsatisfactory, Satisfactory and Exceeds Expectation.

9. Process OJT Invoices for Payment

• Ensure an Invoice is received, with employer timesheets attached.  
• Specialist signs the Employer's invoice to verify the hours worked and approving payment and gives to the Associate.
• Associate must verify:
  • Signature of client, supervisor and specialist are on the timesheet 
  • Dates of client, supervisor and specialist are on or after the last day worked
  • All data on the timesheet is legible
  • Time worked has been converted into decimal hours (conversion chart attached to chapter)
  • Calculations are correct
• Associate makes a payment in QE2 by entering the number of hours worked and rate per hour from the timesheet.
• Enter payment amount in QE2.
• Follow all payment procedures, including submission of employer invoice and employer timesheets to vrsoacctgfaxreceivers@nebraska.gov.
• If changes are needed, the Associate will delete the invoice in QE2 and re-enter with the correct information.

 

10. Changes to OJT

      A. Additional hours - if additional hours are added to an OJT beyond what was on the original authorization, complete a new authorization in QE2 for the additional hours.

     B.   Extending end date - if the end date of an OJT needs to be extended, extend the end date on the original authorization in QE2 to the new end date.

 

11. Document outcome of OJT in a Task note titled either OJT-Completed or OJT Terminated.

 

 

On-the-Job Report

Choose what experience the report is needed for from the pull-down menu at the top. In the same location, a reminder of frequency of completion is listed (note: timelines vary). VR staff are responsible for completing this document. If a job coach or someone at the work site prefers to fill it out, document that preference and follow up to inquire further, ensuring VR is getting detailed and usable feedback.

OJT Letter

On-the-Job Report