Brought to you by the Workforce Investment Board for Area 19

The Geauga, Ashtabula & Portage Partnership, Inc. and Geauga Workplace, a One-Stop Employment Center.

&The Workforce Investment Board for Area 5

The Lake 1 Stop Employment Center&

The Society for Human Resources Management for Lake and Geauga Counties.

Project Hire / Ohio Learning AccountsAnd Other Business Services Available to Area Employers

Introductions.Today’s Program is brought to you by:

The Area 19 Workforce Investment Board, a.k.a. The Geauga, Ashtabula, Portage Partnership or GAPP, Inc., including Geauga Workplace, the One-Stop employment center for Geauga County.

The Area 5 Workforce Investment Board, which includes the Lake 1 Stop, the One-Stop employment center for Lake County.

SHRM (the Society for Human Resources Managers) Lake-Geauga County Chapter.

The Ohio Department of Job and Family Services.

Project HIRE is a subsidized employment training program, funded by governmental dollars, that is already underway.

HIRE is an acronym that stands for Hometown Investment in Regional Economies.

Project HIRE allows eligible employers, who hire eligible, unemployed individuals with the assistance and approval of a local One-Stop employment center, to receive a government subsidy to help defray the cost of training of a newly hired employee.

What is Project HIRE?

What subsidy is available for employers with Project Hire?If an employer is deemed eligible and is prepared to engage in

hiring eligible new individuals, the employer may receive a subsidy up to a maximum of $6,000.00 per individual hired, in the form of a reimbursement payment.

The reimbursement is associated with the training of the eligible individual who is hired. As a result, as an eligible employer and eligible individual are matched together, the state allocates the money for the individual’s training to be used to reimburse an employer on a per-person basis.

The allocation of money that is to be paid to an employer to reimburse it for the training expense is referred to as an Ohio Learning Account (“OLA”).

How can an Ohio Learning Account be Used?An eligible employer who agrees to hire an individual will have an OLA

created for that person’s training. As the individual is trained and the employer incurs costs, the employer will submit invoices. An employer may invoice up to a maximum of $6,000.00 per each eligible individual hired. An employer may seek repayment for:

(1) every dollar of tuition that the employer spends with a third party educational provider (regardless of whether the training is done on or off the employer’s premises) associated with securing an industry recognized degree, certificate, etc. for the newly hired individual in question. -And/Or-

(2) 50% of every dollar in wages paid to an individual, while that employee is receiving on-the-job training as part of a pre-approved program.

Project Hire Training As part of Project Hire an employer may invoice up to a

maximum of $6,000.00 per each eligible individual hired. An employer may seek repayment for:

(1) every dollar of tuition that the employer spends with a third party educational provider (regardless of whether the training is done on or off the employer’s premises) associated with securing an industry recognized degree, certificate, etc. for the newly hired individual in question.

And/Or(2) 50% of every dollar in wages paid to an individual, while

that employee is receiving on-the-job training as part of a pre-approved program.

Some statistics Associated with Project Hire. Project Hire was initially funded with seven million dollars. Almost six million dollars still remain. But for how long? The average OLA being written is between $4,000.00 and

$5,000.00. This means that only approximately another 1300 OLAs could be filled.

The Area 19 and Area 5 WIB are two of the state’s over-achieving WIBs for writing OLAs. These two WIBs have already secured well over $100,000.00 of the State’s Project Hire money to subsidize Area employers (10% of all money allocated to date).

This money has allowed Area employers to put close to 25 new employees to work.

So What Employers are Eligible to Participate in Project Hire? Employers who maintain a site or facility of employment within the state of

Ohio. The employer does not have anyone on lay-off that it intends on recalling The employer is contemplating hiring new employees in the first half of 2010. The positions for which the employees are to be hired are newly created,

permanent positions of employment, for which the employer believes that will have stead work for the next 12 months.

The positions of employment were not created by relocated these jobs from another facility of the business and/or by displacing other employees elsewhere within the U.S. during the prior four (4) months.

Employer has not been debarred, suspended, declared ineligible or voluntarily excluded from Federal contracting.

-AND- The employer is a targeted industry.

What is a targeted industry for the purposes of Project Hire?

A targeted industry is an industry that is on one of the following two lists:

1.) the Ohio Skills Bank’s or the State of Ohio’s in-demand employer lists;

-or-

2.) the Area WIB’s in-demand employer list.

The State’s In-Demand/Targeted Industries.

Advanced energy and environmental technologies. Aerospace and aviation. Agriculture and food processing. Bioscience and bio-products. Corporate and professional services. Distribution and logistics. Instruments, controls, and electronics. Motor vehicle and parts manufacturing. Polymers and advanced materials. Banking and Finance.

WIB’s Targeted Industries. All manufacturers. All professional service industries, especially high-tech. All health care providers, and/or health care related industries. All other employers who can demonstrate reasonably low employee turn-

over numbers who meet or exceed the following minimum criteria: provides a starting wage of at least $8.00 an hour, the employee earns no less

than at least $9.00 an hour upon the completion of the employee’s training, and the employer can demonstrate that the employee will receive significant raises in the near future, or will at least have the opportunity to achieve the same;

provides for health care insurance benefits within 6 months after the employee starts, and the employer pays for at least 51% of the premiums for the same; and

the training provides a transferable set of skills that once learned are valued in the employer’s industry, and will allow the individual to remain or become employable elsewhere.

Which Individuals are Eligible to Participate in Project Hire?

Ohio dislocated workers (individuals who lost a job in the state of Ohio through no fault of their own—so long as the last position of employment was in Ohio, current Ohio residency does not matter).

REA Individuals (reemployment service individuals who are seeking employment).

The individual must be authorized to work in the United States. The individual must have enrolled in selective service. The individual must not be a relative of someone who has an

ownership interest in the employer.

So, how does an eligible, interested employer proceed with Project Hire?

Ten Easy Steps Step #1. Employer learns of program, expresses interest to WIB/One-Stop. Step #2. Employer is sent and completes a Project Hire Checklist. Step #3. WIB reviews checklist and deems employer eligible. Step #4 Employer submits positions list and job descriptions to One-Stop. Step #5 Employer and One-Stop post position and begin applicant search.

This search will likely involve the Ohio Means Job Website, more on this later. Step #6 Employer and One-Stop design OLA training plans for positions. Step #7 Employer and One-Stop screen applicants, make conditional offers. Step #8 All paperwork is completed. Step #9 Area WIB submits paperwork to state and gains approval of OLAs. Step #10 Upon approval, employment starts, training begins, and employer

invoices One-Stop/WIB.

Terms and Conditions of the Training The Fine Print of the Contract.Q: Our company usually uses a staffing or temporary agency to

select and staff the positions we are contemplating hiring. These individuals are then offered a position of employment with our company after a period of time (i.e. 90 days), if they succeed. Can a staffing agency be involved in this process?

A: Yes. So long as the staffing agency works with the One-Stop, and the individuals hired are eligible dislocated workers. The staffing agency will be included as a party to the Agreement with the WIB. The staffing agency will be the employer of record until the individual is hired by the employer. The staffing agency will bill the employer as it usually does, and the employer and staffing agency will submit time records to the WIB; however, the employer will receive the reimbursement. Also, only 50% of the wage actually paid to the employee will be reimbursed.

Terms and Conditions of the Training The Fine Print of the Contract.

Q: How long can training continue?

A: Until all of the training hours outlined in the training template have been provided, or until December 31, 2010, which ever occurs first.

Terms and Conditions of the Training The Fine Print of the Contract.Q: What happens if business conditions dictate that the

employer cannot keep the individual employed for at least a year after commencing their employment?

A: An employer is not considered eligible to participate in Project Hire unless it is willing to make a good faith projection that it has employment for the individuals that are being hired for a period of 1 year. So long as the employer acted in good faith in making the hire, there is no penalty should the employer later have to permanently or temporarily lay the Project Hire individuals that were hired.

Terms and Conditions of the Training The Fine Print of the Contract.Q: What are an employer’s options if a Project Hire

individual that has been hired, is not meeting the same expectations that are placed upon all other new hires?

A: So long as the employee is treated the same as all other new hires, the employer is free is to discipline and/or terminate the employment of the Project Hire employee. However, by terminating the individual, the Project Hire funding allocated but not yet used for that individual is waived. Therefore, if the employer wants to hire a new Project Hire candidate to fill the terminated position, it is up the WIB to approve the same, and the state must still have Project Hire money available to approve a new OLA.

Terms and Conditions of the Training The Fine Print of the Contract.Q: Who is responsible and/or can monitor the

employer’s performance pursuant to this Agreement?

A: All of the following must be provided with access to the employer’s premises and/or training/payroll records for Project Hire employees if a request to monitor/audit performance is so made:

ODJFS; ODOD; or State Auditor’s staff or agents; WIB or One-Stop staff or agents.

Terms and Conditions of the Training The Fine Print of the Contract.Q: What will the employer receive in the

way of reimbursement for on-the-job wages paid to an employee for training?

A: Fifty percent (50%) of the employee’s regular hourly wage for straight time. This can include shift differential. There is no reimbursement for holiday pay, overtime, bonuses, etc.

Terms and Conditions of the Training The Fine Print of the Contract.Q: What documentation does an employer have

to provide to demonstrate equal treatment of Project Hire employees?

A: When entering into the Agreement, the employer must/should provide its policies or Collective Bargaining Agreement sections that mention disciplinary sanctions and the employer’s dispute resolution policy (this policy can be as simple as an open-door policy). State and Area WIB can ask for additional information if desired.

Terms and Conditions of the Training The Fine Print of the Contract.Q: How should I determine the compensation, and/or

benefits of the Project Hire individuals I am going to hire?

A: An employer must comply with all federal, state, and local employment laws and regulations, including but not limited to the Fair Labor Standards Act (minimum wage and overtime laws). Individuals must be provided with the same type of employment, wages, benefits, and working conditions equal to that of employees who are newly hired, or who have worked a similar length of time. The employer must pay all taxes, including unemployment, and must provide workers’ compensation coverage.

Terms and Conditions of the Training The Fine Print of the Contract.Q: What if our company wants part or all of the training

to be from a third party educational provider, what are our options?

A: Third party provider training will be reimbursed at 100% of the tuition/fee, so long as it results in an industry-recognized, portable credential, degree, license, or certificate. Furthermore, the training can occur on or of the employer’s premises. The training can occur while the individual is employed, or the employer can even choose to delay the hiring of the individual until after the individual completes the training.

Terms and Conditions of the Training The Fine Print of the Contract.Q: Are there any restrictions regarding certain

types of employment or work that cannot be performed by Project Hire individuals?

A: For the most part there are no restrictions so long as the employer is deemed eligible for Project Hire. However, no Project Hire monies may be used for the training of individuals who are employed in construction, operation, or maintenance of any facility used for religious instruction or worship.

Contact information.The Area 5 Workforce Investment Board, Lake 1 Stop employment center:

Contact this person for macro issues: Contact these people for micro issues:

Area 5, WIB Lake 1 Stop. Lake 1 StopRobert Dawson Debra LaurinExecutive Director Business Services Rep.177 Main St. 177 Main St.Painesville, OH 44077 Painesville, OH 44077Phone (440)350-4320 Phone (440) 350-2493Fax (440) 350-4485 Fax (440) 350-5838dawsor01@odjfs.state.oh.us debra.laurincgifederal.com

Contact information.The Area 19 Workforce Investment Board, Geauga County:

Contact this person for macro issues: Contact these people for micro issues:

Area 19/GAPP, Inc. Geauga WorkplaceCraig F. Sernik, J.D. Tom McGuinness orInterim Executive Director Denise Tomazic385 Center Street, Suite #100 12480 RavenwoodChardon, OH 44024 Chardon OH, 44024Phone (440) 285-5846 Phone (440) 285-9141Fax (440) 285-4301 Fax (440) 285-1218craigsernik@roadrunner.com mcguit@odjfs.state.oh.us

tomazd@odjfs.state.oh.us

Contact Information.SHRM Lake-Geauga Chapter.

If you are interested in learning more about what SHRM has to offer employers and their staff of human resource professionals, or are interested in joining, you should contact:

Bernadette ArmbrusterPresident- Elect of SHRM Lake-Geauga ChapterPhone: (440) 476-5131

Email: bbc_armbruster@yahoo.com

Conclusion.The Project Hire opportunity is here, but how long it will be

available is uncertain, so take advantage if you can now!

Word to the wise. An employer can make a conditional offer of employment to an individual, even if the job does not start until a definite date in the future. So long as the individual is willing to accept the offer knowing the future starting date, and most will since a significant number of these individuals are receiving unemployment benefits, an employer can reserve its share of Project Hire OLA money in advance.