Trade Adjustment Assistance (TAA) On-The-Job Training

TAA-105 (New 03/2010) Trade Adjustment Assistance (TAA) On-the-Job Training (OJT) Fact Sheet

What is TAA-OJT? TAA provides for training, allowances and tax credits to workers in firms hurt by foreign trade. OJT is a method of training new employees at the work site using other skilled employees as instructors. TAA provides funding to businesses providing OJT to offset a portion of the cost of training TAA-eligible individuals in skilled or semiskilled occupations. OJT benefits for business  The Connecticut Department of Labor (CTDOL) will provide to an employer up to 50% of the new employee’s starting wage rate, with reimbursement up to 1,600 hours depending upon job complexity and the employee’s current skills and qualifications.  The new employee will be trained to the employer’s specific work requirements. Who may be hired?  A sponsoring employer may select from a pool of TAA-eligible individuals who are enthusiastic about learning new job skills. The individual who may receive TAA-OJT must be determined eligible to apply for TAA benefits, which requires being part of a worker group covered under a Trade Act certification.  TAA-OJT is not an incumbent worker program; it is available to individuals who otherwise lack marketable skills and require training in order to return to suitable employment. Since TAA training may not be approved retroactively, a worker interested in OJT needs to apply for the training with CTDOL before beginning employment. Additionally, TAA does not permit OJT in the worker’s previous, trade-impacted occupation, with respect to the article produced or service provided by the worker’s previous, trade- impacted employer. The worker must be learning new skills.  The individual who will accept employment under a TAA-OJT must be willing to utilize his or her TAA training benefit in this manner. Employer responsibility The employer agrees to offer full-time employment and provide training on the job. CTDOL will assist the employer with minimal paperwork and record-keeping requirements regarding the worker’s wages and progress in training. In some cases, part-time employment may be permitted depending on the worker’s applicable Trade Act certification and remedial training needs. Department of Labor’s role  CTDOL will provide technical assistance on an OJT program design customized to meet the business needs of the employer and the training needs of the worker. A Labor Department business consultant will work with an employer to develop a training outline that details the new skills to be learned and the specific training to be provided to the worker, in consideration of the worker’s academic and occupational skill set and prior work experience and the skill requirements of the job for which the worker is being trained.  CTDOL will pay the employer the agreed upon OJT reimbursement monthly and provide on-going support to both the employer and the worker receiving training.  CTDOL will refer TAA-eligible workers to appropriate OJT job opportunities. What does the prospective OJT employee need to do and consider?  A TAA-eligible individual interested in participating in OJT must apply for training with a Labor Department career development specialist who can help assess the individual’s current skills and evaluate a proposed OJT in terms of the individual’s reemployment plan and TAA training approval criteria.  The Trade Act certification providing TAA eligibility allows for only one training program, in preparation for a single occupational goal. The worker is therefore strongly encouraged to fully explore all training options and carefully consider how the new skills to be acquired under a proposed OJT relate to future employment opportunities and long-term career goals.  TAA training methods include OJT as well as classroom training and remedial education such as Adult Basic Education, General Equivalency Diploma and English as a Second Language. The training plan developed should include any necessary classroom components. To contact CTDOL business consultants and career development specialists: http://www.ctdol.state.ct.us/ContactInfo/CTWorks/Directory.htm