Paid to train

The Workforce Innovation and Opportunity Act provides federal funding to train workers

by Deborah Mazol

With NRCA’s support and advocacy, the Workforce Innovation and Opportunity Act became law July 22, 2014. This legislation streamlined an outdated and inefficient workforce development system and is designed to help job seekers find employment, education, training and support services by matching them with employers that need skilled workers.

Background

The act reauthorized the Workforce Investment Act of 1998, which consolidated state and local programs aimed at helping displaced workers develop employment skills and find jobs.

The Workforce Innovation and Opportunity Act provides federal funding for state and local workforce training programs that prioritize veterans and low-income trainees but are open to anyone in the U.S. seeking employment-based skills training. The act authorized $9.5 billion in federal funds for 2015; $2.8 billion was specifically designated to fund training available to a broad array of U.S. workers. Authorized funding grew modestly through 2020, and Congress currently is discussing ways to reform the system, including $4.5 billion in additional funding contained in President Joe Biden’s Build Back Better initiative.

Benefits

You can take advantage of the Workforce Innovation and Opportunity Act’s workforce development benefits in a few ways. You can hire workers through one of the nearly 2,400 American Job Centers or apply for reimbursement of work-based training you have provided. To support the legislation’s efforts, you can serve on a state or local Workforce Investment Board, partner with an educational institution to provide worker training, or participate in a regional partnership with educators or other employers in the roofing industry.

One of the act’s goals is to expand the types of training offered through American Job Centers. About 8 million people currently are using the centers to develop employment-related skills and training, and workers are available to hire with varying skill levels.

Funding for training

There are two basic types of federal funding provided for workforce training. The first is vouchers that are provided to individuals who use employment-based services. The vouchers are provided through Individual Training Accounts and only payable to training providers registered within the system. Every client who qualifies for training receives a voucher he or she can use at any qualified training provider in the area, including vocational/technical centers, community colleges, trade association programs, union programs or for-profit training centers. The vouchers range in value depending on geographic area, but the average value is about $5,000. In the past, most of the funding provided through the federal workforce development system has been paid through Individual Training Accounts.

The second funding option is reimbursement for providing work-based training. In most cases, the funding is paid directly to employers. The Workforce Innovation and Opportunity Act is designed to increase the percentage of funding allocated to reimbursements directly to employers. There are three types of reimbursable workforce training: on-the-job training, customized training and incumbent worker training. Employers apply for training reimbursement through state or local Workforce Investment Boards.

The goal of on-the-job training is to give newly hired workers the knowledge and skills they need to do a job “proficiently.” Trainees must qualify for on-the-job training by obtaining approval from an American Job Center. In most cases, an employer is reimbursed for 50% of a trainee’s wages; in some cases, an employer may receive up to 75%. Although the training usually is for new employees, it also can be used for workers already employed if the company has introduced new technologies or procedures.

Customized training can be used for workers not yet on the payroll or for those already employed. Trainees must qualify for assistance by applying through an American Job Center. An employer commits to hiring a worker after successfully completing training, which usually is provided by a third party. The employer is expected to pay a “significant portion” of the training costs, and the training must lead to an industry-recognized credential.

The purpose of incumbent training is to help currently employed workers improve their skills. An employer must show the training will help workers “retain employment or avert layoffs” and/or raise worker wages, enhance company competitiveness or help the state economy. Funding is available for 50% to 90% of the training costs depending on a company’s size. Depending on an employer’s state, NRCA’s Training for Roof Application Careers may qualify for employers to receive a stipend for a portion of the cost of employee training.

Looking ahead

NRCA members who have used Workforce Innovation and Opportunity Act programs have reported the paperwork and reporting requirements are manageable, but NRCA is advocating for further streamlining during the legislation’s reauthorization by Congress. NRCA continues to advocate for Workforce Innovation and Opportunity Act reforms that will make it easier for employers and prospective roofing workers to take advantage of the workforce training system.

To begin exploring Workforce Innovation and Opportunity Act opportunities that can help your company address its workforce development needs, contact your state or local Workforce Investment Board or a local American Job Center. The executive director, staff and/or board members can direct you to more information about hiring workers, worker training reimbursement and how to partner with local educational institutions to provide training. Additional information is available at doleta.gov/wioa

DEBORAH MAZOL is NRCA's director of federal affairs in Washington, D.C.

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