TN Department of Labor & Workforce Development

Services to Employers
Incumbent Worker Training FAQs

What is the Incumbent Worker Training (IWT) Program?
The Incumbent Worker Training Program is funded by the Federal Workforce Investment Act (WIA) and administered by Tennessee Department of Labor and Workforce Development (TDOL&WD) and the Local Workforce Investment Area. Through this program, Tennessee is able to provide expense reimbursement grants to businesses for the purpose of providing skills upgrade training to currently employed, full-time workers. Keeping Tennessee's workforce competitive in a global economy is critical for both the retention of good employees and the retention of existing businesses.

What kinds of training can be funded by the Incumbent Worker Training Program?
Companies should emphasize training that promotes skills upgrades in high demand, high skills occupations. Skills upgrades that will help to deter lay-offs, re-locations or closings. Training may include industry or company specific skills upgrades. The high demand and limited funds available for IWT grants has resulted in a preference for funding training that represents a significant skills upgrade for employees and/or the greatest potential for impacting the company's competitiveness. To that end, companies are advised to prioritize their training needs when requesting an IWT grant.

What is the average amount awarded? The average grant amount last program period was $24,598.00.

Who is eligible?
All for profit Tennessee businesses that have been in operation for a minimum of one year prior to the application date, have at least five full-time employees, are financially viable and current on all state tax obligations.

Not-for-profit organizations that are health care related will be eligible with a maximum grant award of $25,000. These not-for-profit health care related organizations should meet the same eligibility requirements listed above.

GRANTS AND REIMBURSEMENTS

What costs can be reimbursed by the Incumbent Worker Training Program?
Reimbursable costs are part of the approved budget in the final IWT grant award and can include those expenses related to specific job training: instructors'/ trainers' salaries, curriculum development not to exceed 5% of state obligation as shown in column B total of section 3 of the application, textbooks/ manuals, and materials/supplies, and tuition expense.

What are some of the costs that will not be reimbursed under the Incumbent Worker Training Program?
Incumbent Worker Training grant funds cannot be used to pay for trainees' wages during training, travel, training equipment, capital improvements, or costs incurred prior to the approval date of the application. These types of expenses associated with the training, however, may be included as part of the "Employer Contribution" to the project in the IWT grant application budget.

How is the business reimbursed?
Requests for reimbursement of approved expenses along with evidence of payment are submitted to the Local Workforce Investment Area monthly or quarterly by the business. In addition, basic information on when the training occurred and who participated in it is submitted monthly. A reimbursement check is then sent to the business as per terms of the grant agreement. All IWT grant award contracts require payments to the company to be expense reimbursement and performance-based.

What does "performance-based" mean?
When an IWT grant award is made it is for a specific negotiated amount of funds for the completion of specific training components. If the company does not complete those training components by the end of the contract period, their final reimbursement will be pro-rated to bring their total reimbursement for the project inline with the actual training components completed.

What is the term of my IWT grant contract?
The IWT Program operates on a July 1 - June 30 fiscal year. All contracts end no later than June 30th of the fiscal year awarded. Companies are encouraged to have defined start and end dates that coincides with the actual training activity that will result in a prompt completion of training. Companies have 15 days after the completion of their training to submit all final reimbursement requests and reports.

How often can I apply for an IWT grant?
For-Profit organizations can only receive an award (Max award $50,000) every other program year, July – June unless an application receives funding of $25,000 or less then they can request funding for $25,000 or less the following program year. Upon receiving 2 consecutive grants of $25,000 or less the company would have to skip a year before being eligible again.

Not-for-Profit healthcare related organizations that have been awarded a grant (Max award of $25,000) can apply again the following year. After receiving a grant for two consecutive years they must skip a year.

BUSINESS CONSIDERATIONS

What is required of the business?
The business must identify in the IWT application, its contribution ("company match") to the training program, which can be comprised of cash and/or in-kind contributions. An in-kind contribution is a non-cash contribution of goods or services provided by the business. Examples include: wages paid to trainees during the training period, equipment purchased to be used in the training project, materials and supplies, curriculum development, facility usage and travel.
Once a grant award is received the business must maintain adequate financial records of the training expenses and reimbursements associated with the IWT grant.

What kind of reporting is required once a grant is received?

During active training, monthly reports are submitted by the business to their Local Workforce Investment Area, LWIA (contact). The Trainee Information Form includes trainees' names, dates of birth, gender, race, social security numbers, job titles, trainee wages and dates of training. The Cumulative Monthly Expenditure Form shows expenditures for that reporting period as well as to date - this form is used to request reimbursement of expenses. At the end of the project the company will be sent a two-page "Final Report" form to close out the grant. This form allows the company to provide feedback on how their training project went, as well as how the IWT Program might be improved.

Can you help us find employees?
Throughout the state Tennessee Career Centers are available to assist employers in the recruitment and assessment of potential employees. In addition, many of the centers can design a technical assessment for your company as well as provide local assistance with the training needs of your currently employed workers. To locate the Tennessee Career Centers in your area click Career Center directory.

TRAINING DELIVERY

Where can the training take place?
Training can be conducted at the business's own facility, at a public or private training provider's facility, or at a combination of sites that best meets the needs of the business.

Who actually does the training?
Program instructors can be full or part-time educators, vendors or subject matter experts or professional trainers from the business. The Incumbent Worker Training Program staff does not deliver the training. It only administers, monitors, evaluates and provides fiscal and grant compliance during the training process.

APPLICATION AND APPROVAL PROCESS

Where can an application be obtained?
Applications can be obtained by contacting your Local Workforce Investment Area (LWIA) or by clicking Application.

How long does the process take after the application is submitted?
The DOL&WD communicates to the applicant and the Local Area within fifteen working days from the date the state receives an application as to whether or not the application is approved. Corrective action may be requested by DOL&WD during that period.

Who provides technical assistance?
The Local Workforce Investment Area LWIA (contact) is available to provide technical assistance throughout the training program - from the application stage throughout contract execution, monitoring and fiscal closeout.

What happens after a grant is approved?
The company is notified that their application has been approved as of a specific "award date". That means that, after execution of a contract with the local workforce investment area, the company can proceed with their training and will be eligible for reimbursement for approved expenses from that execution date. When a grant award is made the Tennessee Department of Labor and Workforce Development enters into an agreement (contract), with the Local Workforce Investment Area (LWIA). The LWIA then executes a contract with the employer which is signed by an authorized representative of the company. The company may begin requesting monthly reimbursements once there is a fully executed contract agreement.

For information, call toll-free: 1-800-255-5872, or

Contact

Tennessee Department of Labor and Workforce Development
Patrick Bleecker
Division of Workforce Development
220 French Landing Drive
Nashville, TN 37245
(615) 253-1330
Fax (615) 741-3003
patrick.bleecker@tn.gov

Tennessee Department of Labor and Workforce Development
Sterling van der Spuy
Division of Workforce Development
220 French Landing Drive
Nashville, TN 37245
(615) 532-5945
Fax (615) 741-3003
Sterling.Vanderspuy@tn.gov

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	Services to Employers Incumbent Worker Training FAQs What is the Incumbent Worker Training (IWT) Program? The Incumbent Worker Training Program is funded by the Federal Workforce Investment Act (WIA) and administered by Tennessee Department of Labor and Workforce Development (TDOL&WD) and the Local Workforce Investment Area. Through this program, Tennessee is able to provide expense reimbursement grants to businesses for the purpose of providing skills upgrade training to currently employed, full-time workers. Keeping Tennessee's workforce competitive in a global economy is critical for both the retention of good employees and the retention of existing businesses. What kinds of training can be funded by the Incumbent Worker Training Program? Companies should emphasize training that promotes skills upgrades in high demand, high skills occupations. Skills upgrades that will help to deter lay-offs, re-locations or closings. Training may include industry or company specific skills upgrades. The high demand and limited funds available for IWT grants has resulted in a preference for funding training that represents a significant skills upgrade for employees and/or the greatest potential for impacting the company's competitiveness. To that end, companies are advised to prioritize their training needs when requesting an IWT grant. What is the average amount awarded? The average grant amount last program period was $24,598.00. Who is eligible? All for profit Tennessee businesses that have been in operation for a minimum of one year prior to the application date, have at least five full-time employees, are financially viable and current on all state tax obligations. Not-for-profit organizations that are health care related will be eligible with a maximum grant award of $25,000. These not-for-profit health care related organizations should meet the same eligibility requirements listed above. GRANTS AND REIMBURSEMENTS What costs can be reimbursed by the Incumbent Worker Training Program? Reimbursable costs are part of the approved budget in the final IWT grant award and can include those expenses related to specific job training: instructors'/ trainers' salaries, curriculum development not to exceed 5% of state obligation as shown in column B total of section 3 of the application, textbooks/ manuals, and materials/supplies, and tuition expense. What are some of the costs that will not be reimbursed under the Incumbent Worker Training Program? Incumbent Worker Training grant funds cannot be used to pay for trainees' wages during training, travel, training equipment, capital improvements, or costs incurred prior to the approval date of the application. These types of expenses associated with the training, however, may be included as part of the "Employer Contribution" to the project in the IWT grant application budget. How is the business reimbursed? Requests for reimbursement of approved expenses along with evidence of payment are submitted to the Local Workforce Investment Area monthly or quarterly by the business. In addition, basic information on when the training occurred and who participated in it is submitted monthly. A reimbursement check is then sent to the business as per terms of the grant agreement. All IWT grant award contracts require payments to the company to be expense reimbursement and performance-based. What does "performance-based" mean? When an IWT grant award is made it is for a specific negotiated amount of funds for the completion of specific training components. If the company does not complete those training components by the end of the contract period, their final reimbursement will be pro-rated to bring their total reimbursement for the project inline with the actual training components completed. What is the term of my IWT grant contract? The IWT Program operates on a July 1 - June 30 fiscal year. All contracts end no later than June 30th of the fiscal year awarded. Companies are encouraged to have defined start and end dates that coincides with the actual training activity that will result in a prompt completion of training. Companies have 15 days after the completion of their training to submit all final reimbursement requests and reports. How often can I apply for an IWT grant? For-Profit organizations can only receive an award (Max award $50,000) every other program year, July – June unless an application receives funding of $25,000 or less then they can request funding for $25,000 or less the following program year. Upon receiving 2 consecutive grants of $25,000 or less the company would have to skip a year before being eligible again. Not-for-Profit healthcare related organizations that have been awarded a grant (Max award of $25,000) can apply again the following year. After receiving a grant for two consecutive years they must skip a year. BUSINESS CONSIDERATIONS What is required of the business? The business must identify in the IWT application, its contribution ("company match") to the training program, which can be comprised of cash and/or in-kind contributions. An in-kind contribution is a non-cash contribution of goods or services provided by the business. Examples include: wages paid to trainees during the training period, equipment purchased to be used in the training project, materials and supplies, curriculum development, facility usage and travel. Once a grant award is received the business must maintain adequate financial records of the training expenses and reimbursements associated with the IWT grant. What kind of reporting is required once a grant is received? During active training, monthly reports are submitted by the business to their Local Workforce Investment Area, LWIA (contact). The Trainee Information Form includes trainees' names, dates of birth, gender, race, social security numbers, job titles, trainee wages and dates of training. The Cumulative Monthly Expenditure Form shows expenditures for that reporting period as well as to date - this form is used to request reimbursement of expenses. At the end of the project the company will be sent a two-page "Final Report" form to close out the grant. This form allows the company to provide feedback on how their training project went, as well as how the IWT Program might be improved. Can you help us find employees? Throughout the state Tennessee Career Centers are available to assist employers in the recruitment and assessment of potential employees. In addition, many of the centers can design a technical assessment for your company as well as provide local assistance with the training needs of your currently employed workers. To locate the Tennessee Career Centers in your area click Career Center directory. TRAINING DELIVERY Where can the training take place? Training can be conducted at the business's own facility, at a public or private training provider's facility, or at a combination of sites that best meets the needs of the business. Who actually does the training? Program instructors can be full or part-time educators, vendors or subject matter experts or professional trainers from the business. The Incumbent Worker Training Program staff does not deliver the training. It only administers, monitors, evaluates and provides fiscal and grant compliance during the training process. APPLICATION AND APPROVAL PROCESS Where can an application be obtained? Applications can be obtained by contacting your Local Workforce Investment Area (LWIA) or by clicking Application. How long does the process take after the application is submitted? The DOL&WD communicates to the applicant and the Local Area within fifteen working days from the date the state receives an application as to whether or not the application is approved. Corrective action may be requested by DOL&WD during that period. Who provides technical assistance? The Local Workforce Investment Area LWIA (contact) is available to provide technical assistance throughout the training program - from the application stage throughout contract execution, monitoring and fiscal closeout. What happens after a grant is approved? The company is notified that their application has been approved as of a specific "award date". That means that, after execution of a contract with the local workforce investment area, the company can proceed with their training and will be eligible for reimbursement for approved expenses from that execution date. When a grant award is made the Tennessee Department of Labor and Workforce Development enters into an agreement (contract), with the Local Workforce Investment Area (LWIA). The LWIA then executes a contract with the employer which is signed by an authorized representative of the company. The company may begin requesting monthly reimbursements once there is a fully executed contract agreement. For information, call toll-free: 1-800-255-5872, or Contact Tennessee Department of Labor and Workforce Development Patrick Bleecker Division of Workforce Development 220 French Landing Drive Nashville, TN 37245 (615) 253-1330 Fax (615) 741-3003 patrick.bleecker@tn.gov Tennessee Department of Labor and Workforce Development Sterling van der Spuy Division of Workforce Development 220 French Landing Drive Nashville, TN 37245 (615) 532-5945 Fax (615) 741-3003 Sterling.Vanderspuy@tn.gov