A guide for Cain Advisory Group
Employment Training Panel
A State of California program intended to create a skilled workforce by reimbursing employers for vocational training
Description of the Program:
The Employment Training Panel (ETP) is a California state program intended to provide incentives and reimbursements for workforce development and training. The ETP reimburses employers for vocational training in order to promote a skilled workforce. Reimbursements range from $8 to $26 per hour per eligible employees, and 8 to 200 hours may be reimbursed. Employers must be able to prove that a certain number of hours of training for the employee have occurred. Also, the trainee must be in training for at least 90 days in order to receive reimbursement. Once the ETP has established that the trainee is eligible for a reimbursement program, the reimbursed training program can begin (See Reimbursement section for more information).
· The employer must first complete a simple online registration to gain access to further ETP documents.
· A thirty-minute training and Q & A session is required before applying. This session is completed online through GoToMeeting. Only 25 spaces are available per session, so sign up is recommended.
· At least one top-level employee is required to complete the orientation.
- Preliminary Application
· A preliminary application is required to determine initial eligibility for training reimbursements. This is completed online.
- Regional Office Site Visit
· If the preliminary application is deemed eligible, a representative from an ETP Regional Office will schedule an on-site visit to discuss contract requirements. The employer will be notified of all required documents for completing an ETP contract.
- Application for Funding
· A final training proposal must be completed. An ETP analyst will help finalize the application and contract terms and conditions.
- Panel Approval
· The Panel will review training proposals at the monthly meeting corresponding with the date it was submitted. It is possible that a company representative may need to attend the meeting to present the proposal and answer questions regarding it.
- Funded Training Begins
· The employer will be officially notified that training may begin upon approval of the training proposal.
There is a two-month expected wait for the entire application process.
1. Small Business Application
2. Single Employer Application
3. Multiple Employer Contractor Application
If a company is interested in applying, the ETP website has sample applications available for review. Once at this stage in the application process, an ETP analyst will provide assistance in completing the actual form.
Applications are reviewed by the Panel at monthly meetings. Deadlines can be found at https://www.etp.ca.gov/App_deadlines.cfm. Applications must be submitted by email to ETPARUUnit@etp.ca.gov by 3:00 pm on the day of the deadline. Submitting the application on time does not guarantee that the training proposal will be reviewed at the respective Panel meeting due to a high volume of applications. Applications must contain a signature (electronic signature is acceptable); a word copy is to be sent to your assigned ETP analyst.
- In order to receive reimbursements, the trainee must be a full-time employee (works 35 or more hours per week)
· Depending on whether the employer is big or small, the trainee must complete acceptable training of at least 24 hours or 8 hours, respectively.
- The trainee must earn an hourly wage between at least $14.90 and $16.04 depending on the location of the company:
o Los Angeles County: at least $16.04
o Orange County: at least $15.98
o Any County in the Bay Area: at least $16.25
o Sacramento County: at least $15.59
o San Diego County: at least $15.60
o County not listed above: at least $14.90
o If the trainee does not meet minimum wage criterion, then health benefits can be included in order to meet the base wage.
- The organization must be for-profit or pay taxes into the tax fund for ETP
- During the previous year, the employer must have had a turnover rate of 20% or less
- The company must either: produce a product, obtain 25% of its revenue from outside of the state, compete with a firm that is neither located in California nor possesses any employees in California, be a corporation that is active in multiple states and has a corporate headquarter that is located within California, or be active in the industry of storage, software, freight, transportation, warehousing, communications, environmental consulting, R&D, motion picture/tele-production, or publishing.
Types of Eligible Employers:
Must pay the Unemployment Insurance tax, must have a California Employer Account Number (CEAN) with a 699 or lower prefix.
Groups of Employers:
Examples of groups of employers include Trade Associations and Chambers of Commerce.
Examples of training agencies include university or university foundations, or community colleges or community college districts
- Private training agencies can qualify as eligible employers, but they must have a 2 year long record of having training and placement services available to the public, and must be in possession of certification as accepted by the ETP
Workforce Investment Boards (WIB):
May be eligible after approval of certain elected local representatives in local investment districts.
Workforce Investment Act (WIA) Grant Recipients or WIA Administrative Entities:
May be eligible if selected pursuant to the legislation as well as the approval of the municipal Workforce Investment Board and certain local officials.
As the chart below indicates, reimbursements range from $8-$26 per hour for eligible employees. Training must be at least 8 hours, and up to 200 hours may be reimbursed. Employers must be able to prove that a certain number of hours of training for the employee have occurred. Once the ETP has established that the trainee is eligible for a reimbursement program, the reimbursed training program can begin.
There are limitations on funding for reimbursement, and other monetary limitations can be attributed to: support costs, employer demand, and high earner reductions. For the prior calendar year, 2014-2015, single employers were capped at $425,000 while multiple employers (MEC) were capped at $650,000. For this calendar year, 2015-2016, single employers will be capped at $750,000 while multiple employers (MEC) will be capped at $950,000.
Types of Trainees:
There are two types of trainees defined by the ETP. This designation factors into the amount of the reimbursement provided.
- New Hires
· New hires are unemployed at the beginning of the ETP funded training. These trainees may have been receiving unemployment benefits at the time of hire, or exhausted them within the last two years.
· Incumbent worker training can be funded by the ETP if a company can prove that these jobs are threatened by out-of-state competition, though there are several exceptions to this rule. Companies in the manufacturing industry are exempt, as are those with qualities included in the Special Employment Training Program provisions. These exemptions tend to include seasonal jobs, jobs in areas with high unemployment, and jobs that may have barriers to full-time employment.
· Retrainees must be incumbent workers that meet one of the following three criteria: 1) employed full-time for a minimum of 90 days with a single employer; 2) employed full-time for less than 90 days but have a work history of being employed at least 20 hours per week for at least 90 days by an ETP eligible employer during the 180 days preceding their current hire date; or 3) employed less than 90 days prior to the start date of the current employment and were collecting Unemployment Insurance benefits, or had exhausted these benefits in the last two years.
Several types of training are funded by the ETP. Training can be from in-house, a hired training agency, or a third party. Trainers should be based in California unless a unique training must be found out-of-state. The type of training provided factors into the amount of the reimbursement. There are three main types of recognized training methods, all of which have regulations on instructor/trainee ratios:
· A qualified instructor teaches a group of trainees in a traditional classroom setting.
· The instructor/trainee ratio is 1:15 for new hires and 1:20 for retrainees.
· Lab training is hands-on instruction guided by an instructor. It may include skill acquisition of specialized equipment, either in a simulated work setting or a productive work setting.
· The instructor/trainee ratio is 1:15 for new hires and 1:20 for retrainees. In a productive laboratory, the ratio is 1:10 for new hires and retrainees.
- Electronic Delivery Training
· Computer Based Training (CBT) is accessed through a computer at the trainee’s own pace. There does not have to be live sessions or interaction. There is no applicable instructor/trainee ratio.
· Video Conference training is live and interactive training done through a video session. The instructor/trainee ratio is 1:20 for new hires and retrainees.
· E-Learning is an online training system conducted by a live instructor through web meetings. The instructor/trainee ratio is 1:20 for new hires and retrainees.
If circumstances arise, training may be altered and revised after it has started.
There are certain industries that have been marked as priority industries, and they receive preferential treatment with the ETP. These industries include:
- Allied Healthcare
- Biotech/Life Sciences
- Construction/Green/Clean Technology
- Goods Movement and Transportation/Logistics
- Information Technology
- Manufacturing/Food Production
As industries receiving preferential treatment, companies within these trades will obtain 20% more reimbursement payment than will non-preferential companies receiving standard reimbursement payment.