On-The-Job Training Programs (OJT)

OJT is provided by an employer in the public, private non-profit, or private sector. It provides occupational training to qualifying new hires or existing employees in exchange for the reimbursement of up to 50 percent of the wage rate to compensate for the employer's extraordinary cost of training.

An OJT contract must be limited to the period of time required for a participant to become proficient in the occupation for which the training is being provided. In determining the appropriate length of the contract, consideration is given to the skill requirements of the occupation, the academic and occupational skill level of the participant, prior work experience, and the participant's individual employment plan.

On-the-job training payments to employers are deemed to be compensation for the extraordinary costs associated with training participants and the costs associated with the lower productivity of the participants.

Employers may be reimbursed up to 50 percent of the wage rate of an OJT participant for the extraordinary costs of providing the training and additional supervision related to
the OJT.