[Code of Federal Regulations]
[Title 20, Volume 3]
[Revised as of April 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 20CFR632.78]

[Page 295-296]
 
                      TITLE 20--EMPLOYEES' BENEFITS
 
 CHAPTER V--EMPLOYMENT AND TRAINING ADMINISTRATION, DEPARTMENT OF LABOR
 
PART 632--INDIAN AND NATIVE AMERICAN EMPLOYMENT AND TRAINING PROGRAMS--Table of Contents
 
                Subpart E--Program Design and Management
 
Sec. 632.78  Training activities.

    Native American grantees shall design and operate programs funded 
under the Act which support growth and development as determined by 
representatives of the Indian and Native American communities and groups 
served (sec. 401(a)). Training shall be only for occupations for which 
there is a demand in the area served or in another area to which the 
participant is willing to relocate, and consideration in the selection 
of training programs may be given to training in occupations determined 
to be in sectors of the economy which have a potential for sustained 
demand or growth. The CAP will provide evidence based on local labor 
market information that occupational demand exists for planned training. 
The basic types of training activities available to Native American 
grantees, subgrantees and contractors include, but are not limited, to 
the following:
    (a) Classroom training. This program activity is any training of the 
type normally conducted in an institutional setting, including 
vocational education, and designed to provide individuals with the 
technical skills and information required to perform a specific job or 
group of jobs. It may be coupled with other employment and training 
activities and may also include training designed to enhance the 
employability of individuals by upgrading basic skills, through the 
provision of courses such as remedial education, GED, training in the 
primary language of persons with limited English-speaking proficiency, 
or English-as-a-second-language training.
    (b) On-the-job training. (1) On-the-job training (OJT) is training 
in the private or public sector given to a participant, who has been 
hired first by the employer, and which occurs while the participant is 
engaged in productive work which provides knowledge or skills essential 
to the full and adequate performance of the job. This does not preclude 
a participant who has been hired by and received OJT from one employer 
from being ultimately placed with another employer. Innovative 
approaches to financing, particularly involving the sharing of training 
costs by the private sector are to be encouraged.
    (2) OJT may be coupled with other JTPA employment and training 
activities. As needed, OJT participants may receive any of the 
employment and training services or supportive services through the 
system, through community resources, or through employer resources.
    (3) Reimbursement. Payments to employers for OJT which shall not, 
during the period of such training, average more than 50 percent of the 
wages excluding fringe benefits paid by the employer to such 
participants, and payments in such amount shall be deemed to be in 
compensation for the extraordinary costs associated with the training 
costs and lower productivity of such participants. No direct wage 
payments will be made to OJT participants by the Native American 
Grantee.
    (4) OJT agreements. Employers will be held responsible with respect 
to JTPA costs only in accordance with the provisions of their OJT 
agreements. At a minimum, the OJT agreement shall contain the elements 
listed below. Native American grantees may place additional provisions 
in the OJT agreement only after a careful assessment is made of the 
additional burdens imposed on participating employers. Agreements may be 
entered into only with employers which have not been seriously deficient 
in their conduct of or participation in any DOL program. Each OJT 
agreement shall contain:
    (i) A brief training outline, including the length of training and 
the nature of the training;
    (ii) The method and maximum amount of reimbursement for OJT training 
costs;
    (iii) The number of participants to be trained;
    (iv) Job descriptions and specification of participant wage rates;
    (v) Reporting requirements;
    (vi) An assurance that payroll records, time and attendance records,

[[Page 296]]

job duties and documentation of classroom training, employment and 
training services, or supportive services, costs for which the employer 
is being reimbursed will be subject to review;
    (vii) A termination clause for nonperformance; and
    (viii) An assurance that the employer will comply with the Act and 
regulations.
    (c) Tryout employment. Tryout employment in private-for-profit 
worksites may be conducted in accordance with section 205(d)(3)(B) of 
the Act (sec. 141(K)).
    (d) Training assistance. Such assistance includes:
    (1) Orientation to the world of work;
    (2) Counseling. This includes employment and training related 
counseling and testing;
    (3) Job development;
    (4) Job search assistance. This includes transition services, such 
as job seeking skills instruction, individualized job search plan, labor 
market information, and other special activities for transition to 
unsubsidized employment;
    (5) Job referral and placement; and
    (6) Vocational Exploration Program (VEP). A Native American grantee 
may conduct a VEP program to expose participants to jobs available in 
the private sector through observation of such jobs, instruction, and, 
if appropriate, limited practical experience.
    (e) Combined activities. (1) A participant may be simultaneously or 
sequentially enrolled in two or more activities.
    (2) (i) Reimbursement may be up to 100 percent to employers, 
including private-for-profit employers, for expenditures for the costs 
of classroom training, employment and training assistance or supportive 
services for participants in combined activities including the costs of 
participants' wages paid by the employer for time spent in these 
activities during working hours.
    (ii) Reimbursement may be made on a cost reimbursement or fixed cost 
basis and shall be supported by business receipts, payroll, or other 
records normally kept by the employer.
    (iii) Nothing in this paragraph (b)(1) shall allow reimbursement to 
private-for-profit employers for the costs of OJT to exceed the amounts 
allowable in Sec. 632.78.