8.5 Training Services

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

1. Occupational classroom training;⁷
2. On-the-job training;
3. Incumbent worker training;
4. Programs that combine workplace training with related instruction, which may include cooperative education programs;
5. Entrepreneurial training;
6. Job readiness training provided in combination with the training services described in any of (a) through (e) or transitional jobs;
7. Adult education and literacy activities, provided concurrently or in combination with services provided in any of (a) through (e);⁸
8. Customized training;
   AND
9. 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: July 1, 2024

DWD-DET defines "Occupational Classroom Training" as 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. In the absence of a federal definition specifically for this training service in the Adult Program and Dislocated Worker Program, DWD-DET's definition is adapted from the federal definition for the WIOA Youth Program Element "Occupational Skills Training."²

Occupational classroom training is funded by Individual Training Accounts (ITAs).³ Whenever an ITA is used, Wisconsin's Eligible Training Programs List (ETPL) must be used to select the training program.⁴

• 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 20 CFR § 680.300
• ⁴ TEGL 08-19, Attachment 1, p. I-1

8.5.4 Training Type 2: On-the-Job Training

Effective date: October 1, 2024

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:

1. provides knowledge or skills essential to the full and adequate performance of the job;
2. provides reimbursement to the employer of up to 50 percent of the wage rate of the participant (up to 90 percent in certain circumstances²), for costs of providing the training and additional supervision related to the training;
   AND
3. 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 duration of the contract, local WDBs and service providers must take into account the content of the training, the prior work experience of the participant, and the participant's individual employment plan (for participants in the WIOA Adult Program or Dislocated Worker Program) or individual service strategy (for participants in the WIOA Youth Program), as appropriate.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;
  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 (the Workforce Investment Act) 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

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.¹¹ There is no requirement for employers to document these specific costs.¹²

In limited circumstances, as allowed by local policy, the local WDB may increase the reimbursement rate for OJT contracts up to 90 percent of the wage rate,¹³ taking the following into account:

1. whether the participants are individuals with barriers to employment;¹⁴
2. the size of the employer, with an emphasis on small businesses;¹⁵
   1. The size of the employer must be considered for the WDB to provide an OJT reimbursement rate up to 75 percent;
   2. When the employer has 50 or fewer employees, the WDB may provide an OJT reimbursement rate up to 90 percent.
3. 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;¹⁶
   AND
4. 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.¹⁷

Special Waiver Note: DOL has approved a waiver for Wisconsin that allows local WDBs to increase the reimbursement rate for OJT contracts up to 90 percent for employers that have 50 or fewer employees. In order to provide the 90 percent reimbursement rate for eligible employers, the local WDB must consider the factors that apply when increasing the reimbursement rate above 50 percent, as outlined above. Local WDBs choosing to take advantage of this waiver must ensure that local policy allows provision of up to 90 percent reimbursement rate. This waiver is effective for Program Years 24 through 27, ending June 30, 2028.¹⁸

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 90 percent reimbursement in certain circumstances. 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 the WIOA reimbursement rate.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 portion 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 See section 7.1.4 for more details on use of ITAs with Registered Apprenticeship.

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. 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.²⁶

DWD-DET requires local WDBs to define in local policy what constitutes a pattern of failing to provide OJT participants with continued employment as employees with the required wages, benefits and working conditions under previous WIOA or WIA-funded OJT contracts. Similarly, 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.²⁷

When a local WDB has decided to increase the wage reimbursement level for a particular participant's OJT, in compliance with local policy, the factors that were considered must be documented²⁸. DWD-DET requires this documentation be included in the participant's OJT contract.

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

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)(C)
• ⁴ 20 CFR § 680.700(c)
• ⁵ WIOA Sec. 3(44)(C); 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 20 CFR § 680.700(a); 20 CFR § 680.720(a)
• ¹² 20 CFR § 680.720(c)
• ¹³ 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.
• ¹⁴ 20 CFR § 680.730 (a)(1)
• ¹⁵ 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
• ¹⁶ 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 training: 81 FR 56127.
• ¹⁷ 20 CFR § 680.730 (a)(4)
• ¹⁸ DOL's waiver approval letter, dated May 30, 2024, contains a typo stating that the OJT reimbursement rate waiver is approved through June 20, 2028. DWD-DET has subsequently received confirmation from DOL that the OJT reimbursement rate waiver is approved through June 30, 2028. Email from DOL to DWD-DET, 12/13/2024
• ¹⁹ TEGL 19-16, p. 35
• ²⁰ 20 CFR § 680.740(a)
• ²¹ 20 CFR § 680.750; 20 CFR § 680.330; 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, p. 6-8.
• ²⁷ 20 CFR § 680.730(b)
• 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: October 1, 2024

Incumbent worker training (IWT) activities are carried out by the local WDB for the purpose of increasing the competitiveness of the employee or employer.¹

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.²

Incumbent worker training is the most appropriate training service for retraining existing employees as a layoff aversion strategy.³

Required Components of Incumbent Worker Training

1. 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
2. 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 individual receiving incumbent worker training does not need to meet the eligibility requirements for the WIOA Adult Program or the WIOA Dislocated Worker Program in order to receive the IWT service.⁵ However, in order to receive career services or training services beyond the IWT service, that individual must meet WIOA Title I eligibility criteria for the WIOA Title I Adult or Dislocated Worker Program.⁶

To qualify as an incumbent worker, an individual must:

1. be employed;
2. meet the Fair Labor Standards Act requirements for an employer-employee relationship;
   AND
3. have an established employment history with the employer, which may include time spent as a temporary or contract worker performing work for the employer.⁷
   1. In circumstances that constitute layoff aversion by providing the employee the skills to advance in their job or to stay in their job, the established employment history with the employer must be at least three months.
   2. In other circumstances of IWT, the established employment history with the employer must be at least six months.

Special Waiver Note: DOL has approved a waiver for Wisconsin that allows an individual to qualify as an incumbent worker with an established employment history of three months or more, instead of six months or more. The established employment history of three months or more may only be used in circumstances that provide the employee the skills to advance in their job or the skills to stay in their job (layoff aversion). Local WDBs choosing to take advantage of this waiver must ensure that the local policy, in defining which workers, or groups of workers, are eligible for incumbent worker services, outlines the minimum established employment history allowed in the local area. This waiver is effective for Program Years 24 through 27, ending June 30, 2028.

An exception to the employment history requirement exists 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 the applicable employment history with the employer, 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:

1. The characteristics of the individuals in the program (for example, if they meet the definition of individuals with barriers to employment);
2. Whether the training improves the labor market competitiveness of the employees or both the employees and the employer;
   AND
3. Any other factors the local WDB determines to be appropriate, which may include the following:
   1. number of employees participating in the training;
   2. wage and benefit levels of those employees (both pre- and post-training);
   3. the existence of other training and advancement opportunities provided by the employer;
   4. credentials and skills gained as a result of the training;
   5. layoffs averted as a result of the training;
   6. whether the training is part of a larger sector and/or career pathway strategy;
      OR
   7. 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 local WIOA participants.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 50 or less employees;
• 25 percent of the cost, for employers with between 51 and 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 employment history requirement for IWT recipients with the employer and also requires that the IWT contract between the local WDB and the employer include the required employment history as a term of the contract.²⁵ DWD-DET requires that local WDBs document the trainee's work history with the IWT employer by maintaining the trainee's ASSET record as outlined in section 11.22. 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

• ¹ 20 CFR § 680.790
• ² 81 FR 56154
• ³ 81 FR 56153
• ⁴ 20 CFR § 680.790
• ⁵ 20 CFR § 680.780
• ⁶ 81 FR 56154
• ⁷ 20 CFR § 680.780
• ⁸ TEGL 19-16, p. 16
• ⁹ 81 FR 56154; TEGL 19-16, p. 16
• ¹⁰ WIOA Sec. 134(d)(4)(B)
• ¹¹ 20 CFR § 680.810; TEGL 19-16, p. 16
• ¹² 81 FR 56156
• ¹³ TEGL 19-16, p. 17
• ¹⁴ TEGL 19-16, p. 17
• ¹⁵ WIOA Sec. 134(d)(4)(A)(i); 81 FR 56156
• ¹⁶ TEGL 19-16, p. 16
• ¹⁷ 20 CFR § 680.820
• ¹⁸ WIOA Sec. 134(d)(4)(D)(ii); TEGL 19-16, p.18
• ¹⁹ WIOA Sec. 134(d)(4)(D)(iii); TEGL 19-16, p.18
• ²⁰ 81 FR 56157
• ²¹ 81 FR 56157
• ²² 81 FR 56156; TEGL 19-16, p. 17
• ²³ 20 CFR § 680.780
• ²⁴ 81 FR 56155
• ²⁵ TEGL 19-16, p. 17
• ²⁶ 81 FR 56155
• ²⁷ 81 FR 56156

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

Effective date: July 1, 2024

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

• ¹ 20 CFR 680.200(d)
• ² Wisconsin Department of Public Instruction, Cooperative Education Skill Standards Certificate Program Wisconsin's State-Certified Cooperative Education: Implementation Guide

8.5.7 Training Type 5: Entrepreneurial Training

Effective date: July 1, 2024

DWD-DET defines "Entrepreneurial Training" as training that provides the basics of starting and operating a small business. In the absence of a federal definition specifically for this training service in the Adult Program and Dislocated Worker Program, DWD-DET's definition is adapted from the federal definition for the WIOA Youth Program Element "Entrepreneurial Skills Training.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: July 1, 2024

This type of training service occurs when job readiness training is 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 Training" as training that prepares 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

In the absence of a federal definition specifically for the job readiness training component of this training service in the Adult Program and Dislocated Worker Program, DWD-DET's definition is adapted from the federal definition for the WIOA Individualized Career Service "Short-term pre-vocational services."

If job readiness is not 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, the job readiness are short-term pre-vocational services, which is an individualized career service.

• ¹ 20 CFR 680.200(i)
• ² 20 CFR 678.430(b)(6)
• ³ 81 FR 56119

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

Effective date: July 1, 2024

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

• ¹ 20 CFR § 680.350
• ² WIOA Sec. 203(2)
• ³ 81 FR 56119
• ⁴ 20 CFR 680.420(b)
• ⁵ WIOA Sec. 203(2)

8.5.10 Training Type 8: Customized Training

Effective date: July 1, 2024

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 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 of an employed worker 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 must be outlined in the local WDB's policy and 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, p.15
• ¹⁶ 20 CFR 677.155(a)(1)(iv) and TEGL 19-16, p. 15

8.5.11 Methods for Funding Training Services

Effective date: July 1, 2024

Local WDBs and their service providers fund classroom 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:

1. 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;
2. 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;
3. 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;
4. 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
5. 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 providers.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

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 components of training 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: July 1, 2024

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.³ 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.⁴ 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.⁵ 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.⁶

A WIOA participant may enroll in WIOA-funded training while the participant's application for a Pell Grant is pending as long as the AJC 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 AJC the WIOA funds used to underwrite the training for the amount the Pell Grant covers, including any 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.⁷

WIOA funds should be used last after other available sources have been exhausted.⁸ WIOA allows AJCs and partners to consider the full cost of participating in training services when coordinating assistance from other grants or resources.⁹ 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 (VA) 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 AJCs are not required to consider the availability of those funds.¹⁰ 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.¹¹

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

8.5.13 Unemployment Insurance Work Search Waivers for Participants Receiving Training Services

Effective date: July 1, 2024

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 for which they are claiming unemployment payments.¹

UI claimants who are enrolled in, and satisfactorily participating in, training services approved under WIOA Title I are, generally, waived from the work search requirements.² Confirmation of a UI claimant's enrollment and satisfactory participation in WIOA-funded training services is provided to DWD's UI Division through 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.

A WIOA Title I Career Planner must provide complete and submit DWD Form TRA-16679-E for any WIOA participant who is a UI claimant, upon the participant's request.

The decision to waive a UI claimant's work search requirements is made by DWD-UI staff only. That decision is only communicated to UI claimants by DWD-UI. WIOA participants are responsible for reporting their current training status on their weekly UI claim and ensuring that a work search waiver has been granted by DWD-UI before ceasing their work search actions.

• 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: July 1, 2024

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 and their service providers 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, and incumbent worker training 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.⁵ That information can be the same as that required for ETPs or may be different information.⁶ Concurrence by local WDBs with the value of the performance information that the state chooses to mandate is not required.⁷

The Governor's authority allows establishment of performance criteria that institutions and organizations providing OJT, customized training, and incumbent worker training must meet to receive WIOA Title I Adult and Dislocated Worker Program funds through training service contracts.⁸ 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.⁹ 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.¹⁰

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 ETPL eligibility procedures and ETPL performance reporting requirements.¹¹

At this time, Wisconsin is not establishing performance criteria for institutions and organizations providing on-the-job training, customized training, or incumbent worker training. 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.¹²

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.¹³ 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) and 20 CFR 680.530(a)
• ⁵ 20 CFR 680.530(b)
• ⁶ 81 FR 56145
• ⁷ 81 FR 56145
• ⁸ 20 CFR 680.530(b)
• ⁹ 20 CFR 680.530(c)
• ¹⁰ 20 CFR 680.530(d)
• ¹¹ 81 FR 56146
• ¹² 81 FR 56145 and Wisconsin's Combined State Plan, Section VI(b)(1)
• ¹³ 20 CFR 683.630(b)(iii)