8.5 Training Services

8.5.1 Eligibility for Training Services

Effective date: December 13, 2020

Training Eligibility Criteria

To receive training services supported by WIOA funds, an individual must first meet eligibility criteria for the Adult Program and/or the Dislocated Worker Program, and then meet the following criteria for training eligibility:¹

Is unlikely or unable to obtain or retain employment that leads to economic self-sufficiency or wages comparable to or higher than wages from previous employment through career services alone;²
Is in need of training services to obtain or retain employment that leads to economic self-sufficiency or wages comparable to or higher than wages from previous employment;³
Has the skills or qualifications to successfully participate in the selected program of training services;⁴
Is unable to obtain grant assistance from other sources (e.g., state-funded training funds, Trade Adjustment Assistance (TAA), and/or federal Pell Grants) to cover the full costs of such training;⁵
AND
Will be entering a program of training services that is:
1. directly linked to employment opportunities in an in-demand industry and occupation as identified in either the local or regional plan for the local area or planning region serving the individual, or the local or regional plan for another local area or planning region to which the individual is willing to commute or relocate;⁶
  or
2. directly linked to a specific employment opportunity or opportunities in either the local area or planning region where the individual resides, or another local area or planning region to which the individual is willing to commute or relocate.⁷

Note: If a participant's training will be funded through the Adult Program, they must be served in accordance with priority of service policies.⁸

If a participant is not eligible for training, DWD-DET requires the career planner to document, in an ASSET case note, which criteria were not met and the reason(s) the participant failed to meet the criteria.

If a participant is approved for training services, their career planner must document the participant's need for training services in an ASSET case note.⁹ The career planner must determine the need for training services prior to service provision.¹⁰

DWD-DET requires that once a participant is determined to be eligible to receive training services and has selected an appropriate training program, the participant must be allowed to begin the training program at the next available opportunity, unless the local WDB has a waitlist in place.¹¹

Determining Eligibility for Training Services

The career planner must provide the Individual Employment Plan (IEP) Development or IEP Review service to a participant to determine if they are eligible to receive training services. WIOA regulations state that participants must receive the following services to determine if they are eligible to receive training services: 1) an interview, evaluation, or assessment; and 2) career planning informed by local labor market information and training provider performance information or through any other method by which the career planner can obtain enough information to make an eligibility determination for training services. DWD-DET considers the process of collecting needed information and developing an IEP with the participant to meet this requirement.¹²

¹ 81 FR 56120
² 20 CFR § 680.210(a)(1)
³ 20 CFR § 680.210(a)(2)
⁴ 20 CFR § 680.210(a)(3)
⁵ 20 CFR § 680.210(c)
⁶ 20 CFR § 680.210(b); 81 FR 56119 states, "[t]raining programs for WIOA title I adult and dislocated worker programs are to be linked to in-demand industries and occupations in the local plan;" TEGL 19-16, p. 6, states, "[t]he selection of training services should be conducted in a manner that . . . is linked to in-demand occupations . . . ."
⁷ While 81 FR 56119 states that training programs are to be linked to in-demand industries and occupations in the local plan, 20 CFR § 680.210(b) only states that training programs must be directly linked to employment opportunities in either a local area or planning region. As such, DWD-DET interprets 20 CFR § 680.210(b) as permitting training services so long as they are directly linked to specific employment opportunities identified by the career planner and participant.
⁸ 20 CFR § 680.210(d)
⁹ 20 CFR § 680.220(b)
¹⁰ 81 FR 56120
¹¹ This is consistent with 20 CFR § 680.340(c), which relates to training funded through an Individual Training Account (ITA) and states that, unless a program has exhausted training funds for the program year, the local WDB must allow eligible participants to begin training, and establish an ITA for the individual to pay for training. This is outlined in section 7.1.2.
¹² WIOA Sec. 134(c)(3)(A); 20 CFR § 680.210(a); 20 CFR §§ 680.220(a) and (b).

8.5.2 Purpose and Types of Training Services

Effective date: December 13, 2020

The purpose of WIOA training services is to equip individuals to enter the workforce and retain employment.¹ To that end, local WDBs and their service providers must:

provide training services in a manner that maximizes informed customer choice;²
allow participants to enter a training program that best meets their needs;³
and
give priority consideration to training services that lead to recognized postsecondary credentials.⁴ (Note: WIOA does not mandate that participants enroll in training programs that lead to a recognized postsecondary credential;⁵ therefore, DWD-DET prohibits local WDBs from requiring participants to select training programs that lead to a recognized postsecondary credential.)

The Adult Program and Dislocated Worker Program can provide the following types of training services:⁶

Occupational classroom training;⁷
On-the-job training;
Incumbent worker training;
Programs that combine workplace training with related instruction, which may include cooperative education programs;
Entrepreneurial training;
Job readiness training provided in combination with the training services described in any of (a) through (e) or transitional jobs;
Adult education and literacy activities, provided concurrently or in combination with services provided in any of (a) through (e);⁸
Customized training;
AND
Registered apprenticeship training.⁹

Note: This list is not all-inclusive and additional training services may be provided.¹⁰ If a local WDB would like to provide a training service beyond those on this list, DWD-DET requires the local WDB to contact its assigned Local Program Liaison to ensure that the service is allowable and to determine how to record the service in the ASSET case management system.

¹ 81 FR 56118
² 20 CFR 680.340(a). In order to meet this requirement, DWD-DET requires career planners to share the location of the ETPL website with all participants interested in training. See section 7.1.2.
³ 20 CFR § 680.420 specifically allows training that leads to a recognized postsecondary credential, secondary school diploma, employment, or measurable skill gains.
⁴ 20 CFR 680.340(f)
⁵ 20 CFR § 680.420 specifically allows training that leads to a secondary school diploma, employment, or measurable skill gains in addition to a recognized postsecondary credential.
⁶ 20 CFR § 680.200
⁷ WIOA Sec. 134(c)(3)(D) and 20 CFR § 680.200 refer to this service as "occupational skills training," but DWD-DET uses the term "Occupational Classroom Training" for clarification that this is a classroom-based training service.
⁸ WIOA Sec. 134(c)(3)(D)(x); 20 CFR § 680.350
⁹ While Registered Apprenticeship is not listed as a training service type in the WIOA legislation or final regulations, the WIOA Participant Individual Record Layout (PIRL) does identify it as a training service type on Data Element 1303. For that reason, DWD-DET included Apprenticeship Training as a training service in ASSET.
¹⁰ 20 CFR § 680.200. This provision also includes "training provided by the private sector" and "skills upgrading and training" as types of training services. Since DWD-DET considers these two types of training services to be covered under other listed types, it chose not to list them as separate training services in ASSET. Additionally, WIOA Sec. 134(c)(3)(D) and 20 CFR § 680.200 include transitional jobs in the list of training service types; however, TEGL 19-16, p. 4 clarifies that transitional jobs are an individualized career service.

8.5.3 Training Type 1: Occupational Classroom Training¹

Effective date: TBD

DWD-DET defines Occupational Classroom Training using an adapted version of the federal definition for the WIOA Youth Program Element "Occupational Skills Training." This training service is an organized program of study that provides specific vocational skills that lead to proficiency in performing actual tasks and technical functions required by certain occupational fields.²

Occupational classroom training is funded by Individual Training Accounts (ITAs). Whenever an ITA is used, Wisconsin's Eligible Training Programs List (ETPL) must be used to select the training program.³

¹ WIOA Sec. 134(c)(3)(D) and 20 CFR § 680.200 refer to this service as "occupational skills training," but DWD-DET uses the term "Occupational Classroom Training" for clarification that this is a classroom-based training service.
² 20 CFR 681.540
³ TEGL 08-19, Attachment 1, p. I-1

8.5.4 Training Type 2: On-the-Job Training

Effective date: TBD

On-the-Job Training (OJT) is a work-based, occupational training service provided by an employer to a paid participant who is engaged in productive work in a job that¹:

provides knowledge or skills essential to the full and adequate performance of the job;
provides reimbursement to the employer of up to 50 percent of the wage rate of the participant (up to 75 percent in certain circumstances²), for costs of providing the training and additional supervision related to the training;
AND
is limited in duration.³

While WIOA does not set a specific limit for the duration of an OJT, local WDBs and their service providers must limit OJT contracts to the period of time required for a participant to become proficient in the occupation for which the training is being provided.⁴ In determining the appropriate length of the contract, local WDBs and service providers must consider the following factors:

the training content;
the skill requirements of the occupation;
the academic and occupational skill level of the participant;
the participant's prior work experience;
AND
the participant's individual employment plan (for participants in the WIOA Adult Program and Dislocated Worker Program) or individual service strategy (for participants in the WIOA Youth Program).⁵

Local WDBs or their service providers provide OJT via a contract with an employer or registered apprenticeship program sponsor in the private for-profit sector, the non-profit sector, or the public sector. The WIOA participant receives occupational training in exchange for the wage rate reimbursement to the employer, as stipulated in the OJT contract.⁶

Eligibility Requirements for Employed Participants

While OJTs are primarily designed to first hire a participant and provide them with the knowledge and skills necessary for full performance of the job⁷, there are instances when OJTs are allowable for employed workers.

An OJT contract may be written for an eligible employed worker when all of the following requirements are met:

the participant meets eligibility requirements for training services;
all required components of an OJT are met, as outlined above;
AND
the OJT relates to the introduction of new technologies, introduction to new production or service procedures, and/or upgrading to new jobs that require additional skills, workplace literacy, or other appropriate purposes identified by the local WDB.⁸

Employer Eligibility Requirements

OJT employers are not required to be included on the Eligible Training Program List (ETPL).⁹

Local WDBs or their service providers must not enter into OJT contracts with employers who received payments under previous contracts under WIOA or WIA and have exhibited a pattern of failing to provide OJT participants with:

continued long-term employment as regular employees with the same level of wages and employment benefits (including health benefits) as other employees with comparable seniority who are doing the same type of work;
OR
similar working conditions as other employees doing the same type of work.¹⁰

Local WDBs or their service providers must not enter into OJT contracts with employers that have unpaid unemployment insurance or worker's compensation taxes.¹¹

DWD-DET does not permit local WDBs or their WIOA Title I-B service providers to be employers in WIOA-funded OJT contracts.

Funding

Under WIOA, local WDBs or service providers may reimburse an OJT employer for up to 50 percent of the wage rate of the participant. This is meant to cover the employer's costs for training participants, providing additional supervision related to the training, and the participant's potentially lower productivity while in OJT.¹² There is no requirement for employers to document these specific costs.¹³ In limited circumstances the local WDB may increase the reimbursement rate for OJT contracts up to 75 percent of the wage rate,¹⁴ taking the following into account:

whether the participants are individuals with barriers to employment;¹⁵
the size of the employer, with an emphasis on small businesses;¹⁶
the quality of employer-provided training and advancement opportunities, such as if the training is for an in-demand occupation and will lead to an industry-recognized credential;¹⁷
AND
other factors the local WDB may determine to be appropriate, such as the number of employees participating, wage and benefit levels of the employees (both at present and after completion), and relation of the training to improving the participant's competitiveness in the labor market.¹⁸

The Trade Adjustment Assistance (TAA) Program allows reimbursement to employers up to 50 percent of the wage rate for OJTs, while WIOA allows up to 75 percent reimbursement. When a WIOA participant is co-enrolled in TAA and receives OJT, WIOA may reimburse employers any additional amount needed to bring the total reimbursement to employers up to 75 percent.¹⁹ In this circumstance, because TAA must be the primary source of assistance for workers covered by a TAA certification, the TAA Program would cover the first 50 percent of the wage reimbursement and WIOA would cover the remaining portion. See section 13.1.2. for more details on funding coordination for co-enrolled participants.

OJT and Apprenticeships

Registered apprenticeships generally involve both classroom and on-the-job training. Local WDBs and service providers may enter into OJT contracts with registered apprenticeship program sponsors or employers for the OJT portion of the registered apprenticeship program,²⁰ and may use Individual Training Accounts (ITAs) to cover the technical, classroom instruction portion of a registered apprenticeship.²¹ Depending on the length of the registered apprenticeship and the local WDB's training policies, these funds may cover some or all of the registered apprenticeship training.²²

Local WDBs and service providers that link OJT with registered apprenticeship programs should consider how the length of these programs align with performance measures and take steps to fully account for their progress. For example, registered apprenticeship programs often last longer than an OJT, so a local WDB or service provider should work with the apprenticeship sponsor to explore options to document measurable skill gains during training and/or to build interim apprenticeship credentials that align with the conclusion of the OJT training period and/or use of ITA funds for related technical instruction.²³

If the apprentice is unemployed at the time of participation, the OJT component of the registered apprenticeship must be conducted as it would for any other OJT participant who was unemployed at the time of participation.²⁴

If the apprentice is employed at the time of participation, the OJT requirements for employed workers must be met in addition to the requirements that apply to all OJT contracts.²⁵

Local OJT Provision Requirements

The purpose of OJT is to address specific gaps in participants' knowledge or skills that prevent the participant from performing assigned job duties fully and adequately.²⁶ Therefore, each OJT participant must have a unique written OJT training plan that is tailored to the participant's specific needs; the hours and skills included in a training plan must not simply mirror those in past training plans developed for the same business or the same occupation.²⁷

Local WDBs that would like the flexibility of increasing the wage reimbursement levels above 50 percent must outline in local policy what factors will be used when deciding to increase the level.²⁸ DWD-DET requires this documentation to be included in OJT contracts.

Local WDBs and service providers must continually monitor their OJT contracts to ensure that participants receive training that will help them to successfully retain employment by providing them with relevant skills and opportunities for career advancement.²⁹ See section 8.5.16 for more information about monitoring requirements.

Performance Implications

On-the-Job Training (OJT) is not included in the credential attainment performance indicator because, although it often provides employment benefits to recipients of these services, it rarely results in a credential.³⁰ See section 11.5.7 for more details about who is included in the denominator of the Credential Attainment Rate.

¹ WIOA Sec. 3(44)
² 20 CFR 680.730
³ WIOA Sec. 3(44)
⁴ 20 CFR § 680.700(c)
⁵ WIOA Sec. 3(44); 20 CFR § 680.700(c)
⁶ 20 CFR § 680.700 (a)
⁷ 81 FR 56149
⁸ 20 CFR § 680.710
⁹ 81 FR 56150
¹⁰ 20 CFR § 680.700(b)
¹¹ This is a DWD-DET requirement; 81 FR 56150 provides states with the discretion to enact such a policy.
¹² 20 CFR § 680.700(a); 20 CFR § 680.720(a)
¹³ 20 CFR § 680.720(c)
¹⁴ 20 CFR § 680.700 (a). Because the regulation specifically states that local WDBs may increase reimbursement rates for OJT contracts above 50 percent, DWD-DET requires service providers that administer OJT contracts to obtain approval from the local WDB before they can provide an OJT reimbursement rate that exceeds 50 percent.
¹⁵ 20 CFR § 680.730 (a)(1)
¹⁶ 20 CFR § 680.730 (a)(2); DOL recommends that local WDBs and states refer to the Small Business Administration's standard for defining small business concerns, which varies by industry: 13 CFR § 121.201
¹⁷ 20 CFR § 680.730 (a)(3): DOL declined to define "industry-recognized credential," noting that such a definition could limit future innovation around industry-relevant: 81 FR 56127.
¹⁸ 20 CFR § 680.730 (a)(4)
¹⁹ TEGL 19-16, p. 35
²⁰ 20 CFR § 680.740(a)
²¹ 20 CFR § 680.750; TEGL 19-16, p. 14
²² 20 CFR § 680.740(a)
²³ This is a recommendation provided DOL in Strategies for Implementing OJT Simply and Effectively: An On-the-Job Training Brief and Resource Guide, p. 11.
²⁴ 20 CFR § 680.740(b)
^{25^{20 CFR § 680.740(b)}}
^{26^{This is a DWD-DET requirement based on guidance provided by DOL in Strategies for Implementing OJT Simply and Effectively: An On-the-Job Training Brief and Resource Guide, pp. 6 - 8.}}
^{27^{This is a DWD-DET requirement based on guidance provided by DOL in Strategies for Implementing OJT Simply and Effectively: An On-the-Job Training Brief and Resource Guide, p. 7.}}
^{28^{20 CFR § 680.730(b)}}
^{29^{81 FR 56149}}
^{30^{20 CFR 677.155(a)(1)(iv) and TEGL 19-16, p. 15}}

8.5.5 Training Type 3: Incumbent Worker Training

Effective date: TBD

Incumbent worker training is the most appropriate training service for retraining existing employees as a layoff aversion strategy.¹ Incumbent worker training (IWT) activities are carried out by the local WDB for the purpose of increasing the competitiveness of the employee or employer.²

Incumbent worker training is intended for workers with an established work history with the current employer and who have the knowledge, skills, and abilities needed by their current employer but now need additional training because of changes in the necessary skills to:

remain in their position;
advance in the company;
OR
avoid a layoff.³

Required Components of Incumbent Worker Training

The training is designed to meet the special requirements of an employer (or group of employers) to retain a skilled workforce or avert the need to lay off employees by helping the workers obtain the skills necessary to retain employment;
AND
The training is conducted with a commitment by the employer to retain, or avert layoffs for, incumbent workers in training.⁴

Worker Eligibility Requirements

An incumbent worker does not need to meet the eligibility requirements for the WIOA Adult Program or the WIOA Dislocated Worker Program.⁵ However, an incumbent worker must meet WIOA Title I eligibility criteria for the WIOA Title I Adult or Dislocated Worker Program in order to receive career services or training services beyond the incumbent worker training.⁶

To qualify as an incumbent worker, an individual must:

be employed;
meet the Fair Labor Standards Act requirements for an employer-employee relationship;
AND
have an established employment history with the employer for six months or more, which may include time spent as a temporary or contract worker performing work for the employer.⁷

An exception to the employment history requirement exists only in the event that the incumbent worker training is being provided to a cohort of employees. In this case, it is not required that every employee in the cohort has worked for the employer for six months or more, as long as the majority of employees in the cohort meet this requirement.⁸ However, incumbent worker training is not permitted for providing the occupational training that new hires need; OJT or customized training would be more appropriate in this circumstance.⁹

Employer Eligibility Requirements

Incumbent worker training is carried out by the local WDB in conjunction with an employer or a group of employers of incumbent workers, which may include employers in partnership with other entities for the purposes of delivering training.¹⁰

An employer must be determined eligible to receive incumbent worker training funds based on an evaluation of whether training would increase the competitiveness of the employees or both the employees and the employer. The WDB must consider the following criteria when determining the employer's eligibility for participating in IWT:

The characteristics of the individuals in the program (for example, if they meet the definition of individuals with barriers to employment);
Whether the training improves the labor market competitiveness of the employees or both the employees and the employer;
AND
Other factors the local WDB determines to be appropriate, which may include the following:
- number of employees participating in the training;
- wage and benefit levels of those employees (both pre- and post-training);
- the existence of other training and advancement opportunities provided by the employer;
- credentials and skills gained as a result of the training;
- ayoffs averted as a result of the training;
- whether the training is part of a larger sector and/or career pathway strategy;
  AND
- employer size.¹¹

DWD-DET does not permit local WDBs or their WIOA Title I-B service providers to be employers in WIOA-funded IWT contracts.

Allowable Uses of Incumbent Worker Training

Local WDBs may develop incumbent worker training strategies that best fit the needs of the local Workforce Development Area. Acceptable uses of IWT funds include:

Cohort training;
Apprenticeship training, provided all other requirements are met;¹²
Increasing skills for underemployed workers (those who work part-time but would prefer full-time hours) for whom training can help them advance to higher-skilled positions within the same employer or industry sector leading to an increase in earnings through more work hours or an increase in pay.¹³
Upskilling and backfilling, increasing the skill levels of employees so they can be promoted within the company, thereby creating backfill opportunities for less-skilled employees who may be a local WIOA participant.¹⁴
Contracted training through business and industry or adult education.

Funding

Local WDBs may set aside up to 20 percent of their total allocation of Title I Adult and Dislocated Worker funds (including administrative funds) for covering the federal share of the cost of providing incumbent worker training.¹⁵ For example, if a local WDB receives $1.5 million in Adult funds and $1.0 million in Dislocated Worker funds, it may use up to $500,000 (20 percent of the total) for incumbent worker training. This 20 percent can be used for incumbent worker training activities that are programmatic in nature, as administrative activities must be paid out of the local WDB's administrative funds.¹⁶

Employers are required to pay the non-federal share of the cost of providing the training to their incumbent workers.¹⁷ The amount of this share will be no less than:

10 percent of the cost, for employers with up to 50 employees;
25 percent of the cost, for employers with more than 50 employees but not more than 100 employees;
AND
50 percent of the cost, for employers with more than 100 employees.¹⁸

The non-federal share provided by the employer participating in the program may include the wages paid by the employer to the worker while the worker is attending training. The employer may provide the non-federal share in cash or fairly evaluated in-kind contributions, or both.¹⁹ Employers have flexibility in how they arrange to pay for these costs; however, payments must not come from any other federal funds.²⁰ Employer share must be reported on the quarterly ETA-9130 financial report.

Local IWT Provision Requirements

Local WDBs that choose to utilize Incumbent Worker Training as a workforce strategy must have a clear local policy that governs the use of funds for such services.²¹ Incumbent worker training policies must be aligned with State and Local Plans, as well as with career pathway and sector strategy approaches for in-demand occupations.²² The policy must define which workers, or groups of workers, are eligible for incumbent worker services.²³ The policy may establish a local definition of the phrase "increase the competitiveness of the employee or employer."²⁴

DOL requires that states develop a process to document the six month work-history requirement for IWT recipients with the employer. DOL also requires that the IWT contract between the local WDB and the employer include documentation of the employment dates to substantiate the six month work-history as a term of the contract.²⁵ DWD-DET requires that local WDBs document the trainee's dates of employment with the IWT employer in the IWT contract and upload that contract to the trainee's ASSET record. Local WDBs may establish additional procedures for documenting the employment history, but, at a minimum, the state's process must be followed.

Performance Implications

If workers receiving incumbent worker training are not participants in the WIOA Title I Adult Program or Dislocated Worker Program, they are not WIOA "participants," and thus are not included in calculations for the state's Primary Indicators of Performance.²⁶

Local WDBs must report on individuals who receive incumbent worker training, including employment status after training and credential attainment, as detailed in section 11.22.²⁷

8.5.6 Training Type 4: Programs that Combine Workplace Training with Related Instruction

Effective date: TBD

The activities of this training type are provided in a structured regimen that provides training in a workplace, with instruction related to the occupation provided concurrently or sequentially.¹

This training type includes cooperative education programs, which are partnerships among business, industry, labor, and an educational institution that provide students, based upon individual career goals, authentic experiences in the world of work combined with related classroom instruction.² Pre-apprenticeships certified by the Wisconsin Apprenticeship Advisory Council are also examples of programs that combine workplace training with related instruction.

¹ 20 CFR 680.200(d)
² Wisconsin Department of Public Instruction, Cooperative Education Skill Standards Certificate Program, p. iv

8.5.7 Training Type 5: Entrepreneurial Training

Effective date: TBD

DWD-DET defines Entrepreneurial Training using the federal definition for the WIOA Youth Program Element "Entrepreneurial Skills Training." Entrepreneurial training provides the basics of starting and operating a small business.¹

Such training must develop the skills associated with entrepreneurship. Such skills may include, but are not limited to, the ability to:

Take initiative;
Creatively seek out and identify business opportunities;
Develop budgets and forecast resource needs;
Understand various options for acquiring capital and the trade-offs associated with each option; AND
Communicate effectively and market oneself and one's ideas.²

Examples of strategies to provide entrepreneurial training include:

Entrepreneurship education that introduces the values and basics of starting and running a business. Entrepreneurship education programs may guide participants through the development of a business plan and also may include simulations of business start-up and operation.
Enterprise development which provides supports and services that incubate and help participants develop their own businesses. Enterprise development programs go beyond entrepreneurship education by helping participants access small loans or grants that are needed to begin business operation and by providing more individualized attention to the development of viable business ideas.
Experiential programs that provide participants with experience in the day-to-day operation of a business. These programs may facilitate placement in apprentice or internship positions with entrepreneurs in the community.³

Local WDBS may improve coordination between workforce investment activities and economic development activities carried out within the local WDA to promote entrepreneurial skills training and microenterprise services, but this coordination activity, while allowable, is not a training service itself.⁴

¹ 20 CFR 681.560
² 20 CFR 681.560(a)
³ 20 CFR 681.560(b)
⁴ 20 CFR 680.140(b)(3)(iv). USDOL defines this as a "Coordination Activity" and not a "Training Service."

8.5.8 Training Type 6: Job Readiness Training Combined with Training Services or Transitional Jobs

Effective date: TBD

This type of training service occurs when job readiness activities are provided in combination with occupational classroom training, on-the-job training, incumbent worker training, programs that combine workplace training with related instruction, entrepreneurial training, or transitional jobs.¹

DWD-DET defines job readiness as the career service "short-term pre-vocational services." These services prepare individuals for unsubsidized employment or training and may include development of:

Learning skills;
Communication skills;
Interviewing skills;
Punctuality;
Personal maintenance skills;
Professional conduct;²
AND
Digital literacy.³

If job readiness activities are not provided in combination with training services, the activities are short-term pre-vocational services, which is an individualized career service.

8.5.9 Training Type 7: Adult Education and Literacy Activities Provided in Conjunction with Training Services

Effective date: TBD

This type of training service occurs when adult education and literacy activities are provided in combination with, whether concurrently or sequentially, occupational classroom training, on-the-job training, incumbent worker training, programs that combine workplace training with related instruction, or entrepreneurial training.¹

Adult education and literacy activities may include programs, activities, and services that include adult education, literacy, workplace adult education and literacy activities, family literacy activities, English language acquisition activities, integrated English literacy and civics education, workforce preparation activities, or integrated education and training.² Adult education and literacy activities may include alternative secondary school preparation³ or other training services that lead to a secondary school diploma or its equivalent.⁴

A WDB or service provider may use WIOA Title I Adult and Dislocated Worker Program training funds to directly support adult education and literacy activities when the activities are provided as outlined above to meet the definition of this training service type.⁵

8.5.10 Training Type 8: Customized Training

Effective date: TBD

Customized training is a work-based training strategy designed to provide local areas with flexibility to ensure that training meets the unique needs of the job seekers and employers or groups of employers.¹ This training service type is primarily designed to train individuals who are not employed with the participating employer at the start of participation.² Customized training is generally classroom based and is often provided by a third party for the employer or employer group.³

Required Components of Customized Training

The training is designed to meet the special requirements of an employer or group of employers;⁴
The training is conducted with a commitment by the employer to employ an individual upon successful completion of the training;⁵
AND
The employer pays a significant cost of the training, as determined by the local WDB.⁶

Eligibility Requirements for Employed Workers

Customized training is generally for hiring new or recent employees and not for retraining existing employees, although there may be instances where customized training is appropriate in that circumstance.⁷

Customized training of an employed worker for an employer or group of employers is allowable when the following criteria are met:

All required components of customized training are provided;⁸
The customized training relates to the introduction of new technologies, introduction to new production or service procedures, upgrading to new jobs that require additional skills, workplace literacy, or other appropriate purposes identified by the local WDB.⁹ A local WDB may consider wage gain when determining if customized training is appropriate.¹⁰
The employed worker's wage earnings, as determined by the local WDB's self-sufficiency policy:
- Are not a self-sufficient wage;
  OR
- Are not wages comparable to or higher than wages from previous employment.¹¹

Employer Eligibility Requirements

DWD-DET does not permit local WDBs or their WIOA Title I-B service providers to be employers in WIOA-funded Customized Training contracts.

Local Customized Training Provision Requirements

The requirement that the employer employ an individual upon successful completion of training requires a contract between the employer and the WDB. Local WDBs may determine what constitutes an employer's appropriate commitment to hiring individuals who complete the training.¹²

Local WDBs have the discretion to define the term �significant cost of the training� as is appropriate for their local areas.¹³ Local WDBs must develop a policy for determining what constitutes an employer�s payment of �a significant portion of the cost of training.�¹⁴ The WDB must take into account the size of the employer and other factors the local WDB determines are appropriate. Those factors may include: the number of employees participating in training, wage and benefit levels of those employees (at present and anticipated upon completion of the training), relation of the training to the competitiveness of a participant, and other employer-provided training and advancement opportunities.¹⁵

Performance Implications

Customized Training is not included in the credential attainment performance indicator because, although it often provides employment benefits to recipients of these services, it rarely results in a credential.¹⁶ See section 11.5.7 for more details about who is included in the denominator of the Credential Attainment Rate.

¹ 81 FR 56149
² 81 FR 56156
³ 81 FR 56154
⁴ 20 CFR § 680.760(a)
⁵ 20 CFR § 680.760(b)
⁶ 20 CFR § 680.760(c)
⁷ 81 FR 56153
⁸ 20 CFR 680.770(b)
⁹ 20 CFR § 680.770(c)
¹⁰ 81 FR 56153
¹¹ 20 CFR § 680.770(a)
¹² 81 FR 56153
¹³ 81 FR 56153
¹⁴ TEGL 19-16 p.15
¹⁵ WIOA Sec. 3(14) and TEGL 19-16
¹⁶ 20 CFR 677.155(a)(1)(iv) and TEGL 19-16, p. 15

8.5.11 Methods for Funding Training Services

Effective date: TBD

Local WDBs and their service providers generally fund training services through Individual Training Accounts (ITAs).

In certain circumstances, a training contract may be used to provide training services instead of an ITA.¹ These circumstances are referred to as contract exceptions. Training contracts may only be used if one of the following five conditions applies:

The services provided are on-the-job training (which may include paying for the on-the-job training portion of a registered apprenticeship program), customized training, or incumbent worker training;
The local WDB determines that there are an insufficient number of Eligible Training Institutions in the local area to accomplish the purpose of a system of ITAs. This determination process must include a public comment period for interested training institutions of at least 30 days and must be described in the Local Plan;
The local WDB determines that there is a training services program of demonstrated effectiveness offered in the local area by a community-based organization or other private organization to serve individuals with barriers to employment. The local WDB must develop criteria to be used in determining demonstrated effectiveness, particularly as it applies to the individuals with barriers to employment to be served. These criteria may include:
- Financial stability of the organization;
- How the specific program relates to the workforce investment needs identified in the local plan;
  AND
- Demonstrated performance in the delivery of services to individuals with barriers to employment through such means as:
  - program completion rate;
  - attainment of the skills, certificates, or degrees the program is designed to provide;
  - placement after training in unsubsidized employment, and
  - retention in employment;
The local WDB determines that the most appropriate training could be provided by an institution of higher education or other organization providing training services in order to facilitate the training of a cohort of multiple individuals in in-demand sectors or occupations, provided that the contract does not limit consumer choice;
OR
The local WDB is considering entering into a Pay-for-Performance contract, and the local WDB ensures that the contract is consistent with the pay-for-performance requirements outlined in section 11.18.²

In order to provide training services through a contract for services, the Local Plan must describe the process to be used in selecting training institutions.³ The local area must fulfill consumer choice requirements for all training service provision, regardless of the funding mechanism.⁴

When securing training services through contracts, local WDBs must adhere to the procurement standards set forth by the Uniform Guidance at 2 CFR 200.317 through 200.326 and ensure that procurements are conducted in a manner that is consistent with 2 CFR 200.318 through 200.326.⁵

Training Service Type	ITA Eligible?
Occupational Classroom Training	Yes
On-the-Job Training (OJT)	No
Incumbent Worker Training (IWT)	No
Programs that Combine Workplace Training with Related Instruction	Yes
Entrepreneurial Training	Yes
Job Readiness Training Combined with Training Services or Transitional Jobs	Yes
Adult Education and Literacy Activities Provided Concurrently or in Combination with Training Services	Yes
Customized Training	No

Using Multiple Funding Methods

There is no prohibition on the combined use of ITAs with any other contracted training service.⁶ The decision must be based on individual need, and the payment methods must pay for separate program services.⁷ Local WDBs may determine that providing training through a combination of ITAs and contracts is the most effective approach. This approach could be used to support placing participants in programs such as registered apprenticeships and other similar types of training.⁸

Establishing General Limitations on Training Services

Local WDBs may set establish general limitations for all Individual Training Accounts (ITAs) through policy.⁹ See section 7.1.5 for information about allowable local policies related to ITA limitations.

¹ 81 FR 56144
² 20 CFR 680.320(a)
³ 20 CFR 680.320(c) and WIOA Sec. 108(b)(16)
⁴ 20 CFR 680.320(a)
⁵ 81 FR 56156 and 81 FR 56154
⁶ 81 FR 56122 and TEGL 19-16 p.8
⁷ 81 FR 56122
⁸ TEGL 19-16 p.8
⁹ 20 CFR 680.310

8.5.12 Funding Coordination Requirements

Effective date: TBD

WIOA Title I Adult and Dislocated Worker Program funding for training services is limited to individuals who are:

Unable to obtain grant assistance from other sources to pay the costs of their training;
OR
Require assistance beyond that available under grant assistance from other sources to pay the costs of such training.¹

WIOA programs and training institutions must coordinate funds available to pay for training.² American Job Center (AJC) partners must coordinate training funds available and make funding arrangements with other one-stop partners and other entities to ensure coordination of WIOA training funds and other grant assistance. American Job Center partners do so in accordance with the descriptions of service coordination and delivery outlined in the AJC's Memorandum of Understanding, in accordance with section 2.6.

Use of WIOA funding to supplant other sources of training grants is prohibited.³ The availability of other sources of grants to pay for training costs such as Temporary Assistance for Needy Families (TANF), state-funded training funds, and Federal Pell Grants must be considered so that WIOA funds supplement other sources of training grants.⁴ Pell Grant award amounts are not adjusted to account for the receipt of other funds from any source; if a participant receives WIOA funding for training while the Pell Grant application is pending, the Pell Grant award amount will not be impacted by that WIOA funding.⁵

A WIOA participant may enroll in WIOA-funded training while the participant's application for a Pell Grant is pending as long as the American Job Center partner has made arrangements with the training institution and the WIOA participant regarding allocation of the Pell Grant, if it is subsequently awarded. In that case, the training institution must reimburse the American Job Center the WIOA funds used to underwrite the training for the amount the Pell Grant covers, including any education fees the training institution charges to attend training. Reimbursement is not required from the portion of Pell Grant assistance disbursed to the WIOA participant for education-related expenses.⁶

WIOA funds should be used last after other available sources have been exhausted.⁷ WIOA allows American Job Centers and partners to consider the full cost of participating in training services when coordinating assistance from other grants or resources.⁸ An analysis of the full cost of participation in training services can be performed when developing a funding plan for the training services and can include the cost of supportive services, such as housing, transportation, related supplies and materials, and general costs of living, in addition to the cost of tuition, as appropriate and allowed by local WDB policy.

Exclusion of Veterans Benefits

Department of Veterans Affairs benefits for education and training services, including the GI Bill, are not included in the category of �other sources of training grants� that must be coordinated to pay for training with WIOA funds. Therefore, veterans and spouses are not required to first use any available benefit entitlements associated with their military service before being considered eligible for WIOA funded training, and American Job Centers are not required to consider the availability of those funds.⁹ Eligibility for VA benefits for education and training services does not preclude a veteran or the veteran's eligible spouse from receiving WIOA funded services, including training funds. Similarly, WIOA program operators are prohibited from requiring veterans or spouses to exhaust their entitlement to VA funded training benefits prior to allowing them to enroll in WIOA funded training.¹⁰

TAA

Coordination of training funding for WIOA participants co-enrolled in the TAA program is discussed in section 13.1.2.

¹ 20 CFR 680.230(a)
² 20 CFR 680.230(a)(2)
³ 81 FR 56121
⁴ 20 CFR § 680.230(b)
⁵ Email from DOL to DWD-DET, 2/10/2022
⁶ 20 CFR 680.230(c)
⁷ Email from DOL to DWD-DET, 2/10/2022
⁸ 81 FR 56121
⁹ 81 FR 56121
¹⁰ TEGL 19-16, p. 11

8.5.13 Unemployment Insurance Work Search Waivers for Participants Receiving Training Services

Effective date: TBD

DWD requires Unemployment Insurance (UI) claimants to engage in an active work search by completing at least four actions to search for suitable work within each week that they are receiving unemployment benefits.¹ UI claimants who are enrolled in and satisfactorily participating in training services approved under WIOA are waived from the work search requirements.²

A WIOA Title I Career Planner may provide verification of a participant's enrollment and satisfactory participation in WIOA-funded training services by completing DWD Form TRA-16679-E: Training Benefits Application and Approval - TAA and WIOA. The completed form is faxed to DWD UI at 608.327.6172.

¹ DWD 127.01(1)
² DWD 127.02(7) and DWD 108.04(16)(4)

8.5.14 Performance Accountability and Reporting for Training Services

Effective date: TBD

Services Excluded from the Credential Attainment Rate

On-the-Job Training (OJT) and customized training are not included in the credential attainment performance indicator because, although they often provide employment benefits to recipients of these services, they rarely result in a credential.¹ See section 11.5.7 for more details about who is included in the denominator of the Credential Attainment Rate.

Reporting on Non-Participants Receiving Incumbent Worker Training

Those workers receiving incumbent worker training who are not enrolled in the WIOA I Adult Program or Dislocated Worker Program are not WIOA "participants," and thus are not included in calculations for the state's Primary Indicators of Performance.² However, Local WDBs must report on all individuals who receive incumbent worker training, including employment status after training and credential attainment, as detailed in section 11.22.³

State Performance Standards for On-the-Job Training, Customized Training, and Incumbent Worker Training

WIOA exempts institutions and organizations that provide on-the-job training, customized training, incumbent worker training, internships, paid or unpaid work experience, and transitional jobs from the requirements of the State List of Eligible Training Providers and Programs (ETPL).⁴ That exemption further authorizes the Governor to require the local area to collect performance information on these institutions and organizations. That information can be the same as that required for ETPs or may be different information.⁵ Concurrence by local WDBs with the value of the performance information that the state chooses to mandate is not required.⁶

The Governor's authority allows establishment of performance criteria that institutions and organizations providing OJT, customized training, incumbent worker training, internships, paid or unpaid work experience or transitional jobs must meet to receive WIOA Title I Adult and Dislocated Worker Program funds through training service contracts.⁷ When such performance criteria have been established, One-Stop Operators in local WDAs must collect such performance information and determine whether those institutions and organizations have met the state's criteria.⁸ The One-Stop Operators must then disseminate information that identifies institutions and organizations providing training and training programs that have met the state's performance criteria throughout the One-Stop System.⁹

There may be instances when an institution or organization providing such services also has a program of training that does not meet this exemption, such as Occupational Classroom Training, and the institution or organization wishes to be eligible to use ITAs. Those programs of training, for which ITA funding eligibility is sought, are subject to the state's eligibility procedures and performance reporting requirements.¹⁰

At this time, Wisconsin is not establishing performance criteria for institutions and organizations providing on-the-job training, customized training, incumbent worker training, internships, paid or unpaid work experience or transitional jobs. Wisconsin's WIOA Combined State Plan describes the state's strategies for ensuring that the work-based training models provide high quality training for both the participant and the employer, as required.¹¹

When a state has established performance criteria that determines eligibility of institutions and organizations providing on-the-job training or customized training and requires that One-Stop Operators identify institutions or organizations that meet the criteria as eligible institutions and organizations, the state must establish appeal procedures for those institutions and organizations whose eligibility is denied.¹² Because Wisconsin has no such criteria, there are no related appeal procedures.

¹ 20 CFR 677.155(a)(1)(iv) and TEGL 19-16, p. 15
² 81 FR 56155
³ 81 FR 56156 and TEGL 10-16, Change 2, p.43
⁴ WIOA Sec. 122(h)
⁵ 81 FR 56145
⁶ 81 FR 56145
⁷ 20 CFR 680.530(b)
⁸ 20 CFR 680.530(c)
⁹ 20 CFR 680.530(d)
¹⁰ 81 FR 56146
¹¹ 81 FR 56145 and Wisconsin's Combined State Plan, Section VI(b)(1)
¹² 20 CFR 683.630(b)(iii)

8.5.15 Prohibitions Related to Training Services

Displacement of Currently Employed Workers

No currently employed worker may be displaced by a participant in any WIOA Title I program or activity. This includes partial displacement, such as a reduction in the hours of non-overtime work, wages, or employment benefits.¹
A WIOA Title I participant must not be employed in or assigned to a job if any of the following conditions exist:
- Any other individual is on layoff from the same or any substantially equivalent job;²
- The employer has terminated the employment of any regular employee or otherwise reduced their workforce with the intention of filling the vacancy created by the termination or workforce reduction with the participant;³
  OR
- The job to which the WIOA Title I participant is assigned will infringe in any way upon the promotional opportunities of currently employed individuals.⁴
Regular employees and program participants alleging displacement may file a complaint under the local Workforce Development Board's applicable grievance procedures.⁵

Activities Impacting Union Organizing, Labor Disputes, and Collective Bargaining Agreements

No funds provided to employers for work-based training and work experiences can be used to directly or indirectly:
- assist, promote, or deter union organizing.⁶
- aid in the filling of a job opening that is vacant because the former occupant is on strike, or is being locked out in the course of a labor dispute,
  OR
- aid in the filling of a job opening that is otherwise an issue in a labor dispute involving a work stoppage.⁷
No WIOA Title I program or activity may impair an existing contract for services or collective bargaining agreement. If a program or activity authorized by WIOA Title I would be inconsistent with a collective bargaining agreement, the appropriate labor organization and employer must provide written concurrence before the program or activity begins.⁸

Direct Assistance Related to Religious Activities

WIOA Title I funds may not be used to employ participants to carry out the construction, operation, or maintenance of any part of any facility that is used or will be used for religious instruction or worship. The exception to this limitation is maintenance of a facility that is not primarily or inherently devoted to religious instruction or worship and is operated by an organization providing services to WIOA participants.⁹
WIOA Title I financial assistance may only be used to employ or train participants in religious activities if the assistance is provided indirectly within the meaning of the Establishment Clause of the First Amendment of the U.S. Constitution, and not if the assistance is provided directly.¹⁰

Assistance provided indirectly means that the choice of the service provider is placed in the hands of the participant, and the cost of that service is paid through a voucher, certificate, or other similar means of government-funded payment. Federal financial assistance provided to an organization is considered indirect when:
- The government program through which the beneficiary receives the voucher, certificate, or other similar means of government-funded payment is neutral toward religion;
  AND
- The organization receives the assistance as a result of a decision of the beneficiary, not a decision of the government.¹¹
Assistance provided through an Individual Training Account (ITA) is generally considered indirect; assistance provided through other mechanisms may also be considered indirect.¹²

Relocation of Businesses

No funds provided by WIOA Title I may be used, or proposed for use, to encourage or induce the relocation of a business or part of a business if such relocation would result in a loss of employment for any employee of such business at the original location and such original location is within the United States.¹³
WIOA Title I funds must not be used for customized or skill training, on-the-job training, incumbent worker training, transitional jobs, or company-specific assessments of job applicants or employees, for any business or part of a business that has relocated, until 120 days after the date on which such business commences operations at the new location, if the relocation of such business or part of a business results in a loss of employment for any employee of such business at the original location and such original location is within the United States.¹⁴

The local WDB must verify that a business establishment that was created or expanded in the last 120 days is not, in fact, relocating employment from another area to ensure that WIOA funds are not used or proposed to be used for prohibited business relocation. The state is required to provide standardized pre-award review criteria, and the local WDB and the business must jointly complete and document the review prior to the WIOA assistance. This review must include names under which the establishment does business, including predecessors and successors in interest; the name, title, and address of the company official certifying the information, and whether WIOA assistance is sought in connection with past or impending job losses at other facilities, including a review of whether WARN notices relating to the employer have been filed. The pre-award review may include consultations with labor organizations and others in the affected local area(s).¹⁵

DWD-DET requires that the Pre-Award Review Checklist be used when such reviews are required.

Placement or Referral Fees

No person or organization may charge an individual a fee for placement or referral of an individual in or to a workforce investment activity under WIOA Title I.¹⁶

Nepotism

No individual may be placed in a WIOA Title I employment activity if a member of that person's immediate family is directly supervised by or directly supervises that individual.¹⁷

Business Start-Up Costs

No WIOA Title I funds may be used for employment generating activities, investment in revolving loan funds, capitalization of businesses, investment in contract bidding resource centers, economic development activities, or similar activities, that are not directly related to training for eligible individuals.¹⁸

¹ 20 CFR § 683.270(a)
² 20 CFR § 683.270(c)(1)
³ 20 CFR § 683.270(c)(2)
⁴ WIOA Sec. 181(b)(2)(A) and Sec. 181(b)(3); 20 CFR § 683.270(c)(3)
⁵ 20 CFR 683.270(d) and 20 CFR 683.600
⁶ 20 CFR § 680.830. DOL only states that this applies to work-based training, but DWD-DET requires this to also apply to work experiences.
⁷ 20 CFR § 680.840
⁸ 20 CFR § 683.270(b)
⁹ WIOA Sec. 188(a)(3); 20 CFR § 683.255(a)
¹⁰ 20 CFR § 683.255
¹¹ 29 CFR § 2.31(a)(2)
¹² 20 CFR § 683.285(b)(1); see also 81 FR 19361-2
¹³ WIOA Sec. 181(d)(1)
¹⁴ WIOA Sec. 181(d)(2); 20 CFR § 683.260(a)(2). This prohibition does not apply to work experiences other than transitional jobs.
¹⁵ 20 CFR § 683.260(b). 20 CFR 683.260(b) states that local WDBs must ensure that job relocation or replacement isn't happening at a business that is not "new or expanding." DWD-DET chose to define "new or expanding" as within 120 days for operationalization purposes.
¹⁶ WIOA Sec. 194(5)
¹⁷ 20 CFR § 683.200(g). For the prohibition related to nepotism, DWD-DET uses the definition of "immediate family" from 29 CFR 500.20, which states that "immediate family" includes only a spouse; Children, stepchildren, and foster children; Parents, stepparents, and foster parents; and Brothers and sisters.
¹⁸ WIOA Sec. 181(e)

8.5.16 Administrative Requirements for Work-Based Training Activities

Effective date: TBD

Assurances

The employer must comply with all required nondiscrimination and equal opportunity assurances outlined in section 5.4.¹

Recordkeeping

Employers must retain payroll records for at least three years, as required by the Fair Labor Standards Act.² Employers must maintain and provide (if requested by the WDB, the WDB's service provider, DWD-DET, or DOL) records to support the training activity and associated reimbursements, such as time and attendance records, payroll records, invoice and reimbursement documents, and other information necessary to respond to monitoring reviews or audits, as outlined in section 1.6.³

Monitoring

Monitoring plays a critical role in ensuring that the goals of work-based training activities are achieved. To ensure validity and propriety of the reimbursement amounts claimed, and that the training for which the contract is written is actually delivered, on site monitoring of work-based training activities is required. The on-site monitoring must include documenting information received directly from the trainee, capture the trainee supervisor's perspective about training progress, and include review of the employer's payroll records.

Service provider staff must visit every work-based training site regularly. The first visit must occur prior to the execution of the contract for the work-based training activity. At this time, the Pre-Award Review Checklist must be completed and care should be taken to understand the employer's business and to explain rules and requirements for the work-based training activity. At a minimum, the Career Planner or other appropriate service provider staff person must visit the training site once early in the training period and once at or near the training's completion to ensure that the training has been substantially delivered and that wage records can be verified. Training site visits are an opportunity for service provider staff to provide technical assistance, if necessary, and ensure the participant's training is progressing as anticipated. Visits in addition to these minimums should be conducted as necessary, considering the length of the training plan.

WDB staff must also monitor work-based training activities on a regular basis. At a minimum, WDB monitoring must include desk reviews of a reasonable sample of work-based training agreements and an on-site review of a reasonable sample of work sites to ensure that records are accurately maintained. The key monitoring items are that training was needed and actually provided, the training plan length was reasonable, the reimbursement rate was at the predetermined percentage, and other applicable rules and requirements were followed and met.

¹ WIOA Sec. 188(a)(2); 29 CFR Part 38; 29 CFR § 38.4(zz)
² US Department of Labor "Fact Sheet #21: Recordkeeping Requirements Under the Fair Labor Standards Act." Accessed 6/22/21 at https://www.dol.gov/sites/dolgov/files/WHD/legacy/files/whdfs21.pdf.
³ WIOA Sec. 194(7)(C)

8.5.17 Standards for Individuals Employed through WIOA Title I Activities

Effective date: TBD

The US Department of Labor has declined to give guidance on whether individuals engaged in work-based training services and work experiences funded by WIOA Title I are covered under the Fair Labor Standards Act (FLSA),¹ state worker's compensation laws,² or state unemployment insurance laws. Local WDBs must determine whether individuals engaged in these activities are covered under these and other health and safety provisions.

DWD-DET encourages local WDBs to use their administrative costs to seek a legal opinion on issues like these, as necessary. General legal services functions are allowable administrative costs under 20 CFR 683.215(b)(1)(viii).

General Health and Safety Standards

If health and safety standards established under Federal and Wisconsin law apply to the employer's regular employees, those same health and safety standards equally apply to any WIOA Title I Program participants engaged in a work experience with that employer.³

Fair Labor Standards Act

Local WDBs must determine if an individual engaged in a work-based training service or work experience funded by WIOA Title I is an "employee" under the Fair Labor Standards Act (FLSA).⁴ FLSA wage and labor standards apply to individuals who are considered "employees."⁵

The Wisconsin Department of Workforce Development's Equal Rights Division (ERD) provides a resource to assist employers and local WDBs determine if a worker is an "employee" under the FLSA, and therefore whether FLSA labor standards apply: https://dwd.wisconsin.gov/worker-classification/er/laborstandards/.

Compensation for Participants

The compensation rate for individuals employed in activities under WIOA Title I must meet the following requirements:

The compensation must be at the same rate, including periodic raises, as trainees or employees who are similarly situated in similar occupations by the same employer and who have similar training, experience, and skills;
AND
it must never be less than the higher of the federal, state, or local minimum wage.⁶

Allowances, earnings, and payments to individuals participating in WIOA Title I programs are not considered as income for the purposes of determining eligibility for any Federal or Federally-assisted program based on need, or for determining the amount of assistance an individual may receive from any Federal or Federally-assisted program based on need, other than for old-age assistance as provided under the Social Security Act (42 U.S.C. 301 et seq.).⁷

Workers' Compensation

Local WDBs must determine if the individual engaged in a WIOA Title I-funded work-based training service is considered an "employee" for purposes of providing worker's compensation insurance coverage.⁸ The Worker's Compensation Act of Wisconsin applies when making this determination.⁹ DWD-DET advises local WDBs to review the Worker's Compensation Employer Resources available on https://dwd.wisconsin.gov/wc/employers/ to assist employers in compliance with Chapter 102 of Wisconsin Statutes.

If Wisconsin workers' compensation law applies to the individual, workers' compensation benefits must be available for injuries suffered by the participant on the same basis as the worker's compensation benefits are provided to other individuals in similar employment.¹⁰ Generally, this means that worker's compensation insurance coverage is provided and paid for by the employer.

If Wisconsin workers' compensation law does not apply to the individual, local WDBs must ensure the individual is provided insurance coverage for injuries suffered by the participant in the course of the work experience.¹¹ Generally, this means that general liability insurance coverage must be provided and paid for by an entity other than the employer, such as the local WDB.

The Wisconsin Department of Workforce Development's Worker's Compensation Division (DWD-WCD) provides a resource to assist employers and local WDBs determine if a worker is an "employee" for purposes of Wisconsin worker's compensation law, and therefore whether Wisconsin worker's compensation law applies: https://dwd.wisconsin.gov/worker-classification/wc/.

Unemployment Insurance

Local WDBs must determine if the individual engaged in a work-based training service or work experience funded by WIOA Title I is considered an "employee" for purposes of providing Unemployment Insurance coverage.¹² Employers must provide unemployment insurance coverage to individuals considered "employees" under Wisconsin unemployment insurance law.¹³

The Wisconsin Department of Workforce Development's Unemployment Insurance Division (DWD-UI) provides a resource to assist employers and local WDBs determine if a worker is an "employee," and therefore whether Wisconsin unemployment insurance law applies: https://dwd.wisconsin.gov/worker-classification/ui/.

¹ 81 FR 56206
² 81 FR 56207
³ 20 CFR 683.280(a)
⁴ 81 FR 56206
⁵ 20 CFR § 683.275 and 20 CFR § 681.600; See DOL Fact Sheet #13: Employment Relationship Under the Fair Labor Standards Act (FLSA) for more information.
⁶ 20 CFR § 683.275(a)
⁷ 20 CFR § 683.275(d)
⁸ 20 CFR § 683.280(b) and 81 FR 56117
⁹ Wisconsin Statute § 102
¹⁰ 20 CFR 683.280(b)(1)
¹¹ 20 CFR 683.280(b)(2)
¹² Wisconsin Statute Ch. 108.01(a) and 108.01(12).
¹³ Wisconsin Statute Ch. 108.03