New Mexico Register / Volume XXX, Issue
24 / December 31, 2019
This
is an amendment to 5.50.5 NMAC, Section 10, effective January 1, 2020.
5.5.50.10 REIMBURSABLE
EXPENSES:
A. The following expenses may be
eligible for reimbursement through JTIP
(1) A percentage of trainee wages for up
to six months of initial training.
(2) Cost of providing custom classroom
training at a New Mexico post-secondary public educational institution at a
maximum of $35 per hour of training per trainee and a cap of $1,000 per
employee.
(3) A percentage of intern wages for up
to 640 training hours.
B. Standard reimbursement rates for
wages range up to seventy-five percent.
Positions that meet the JTIP requirements with starting wages at levels
eligible for the high wage job tax credit may be also eligible for an
additional five percent wage reimbursement.
Positions filled by trainees who meet any of the three following
criteria may be eligible for an additional five percent wage reimbursement
above the standard rates if the approved entry wage is at least the minimum
rate for the Job Zone as outlined in the JTIP wage chart on Paragraph (2) of
Subsection D. of 5.5.50.10 NMAC for Zones 1, 2, 3 and 4:
(1) Trainee has taken the WorkKeys® assessments as part of the hiring/recruitment
process.
(2) Trainee has graduated within the past
12 months from a post-secondary training or academic program at a New Mexico
institution of higher education.
(3) Trainee is a U.S. veteran.
Companies may combine any one
of the three conditions above with the additional five percent wage
reimbursement for high-wage positions, for a total additional wage
reimbursement not to exceed ten percent above the standard rates. If a company
is participating in other job reimbursement training programs such as the
Workforce Innovation and Opportunity Act (WIOA), the combined reimbursement to
the company may not exceed one hundred percent.
C. The job training incentive program
allows for reimbursement only at the completion of training. If an employee does not complete the training
period, no funds can be claimed for that employee. If another trainee can be hired in that
position within the six month hiring period and complete training before the
contract end date, a claim can be submitted for the successful trainee.
D. Wage
reimbursement:
(1) Trainee wages are generally the
largest expense associated with training.
JTIP reimburses the company for a significant portion of trainee wages
during the initial training period. The
percentage of standard reimbursement ranges up to seventy-five percent,
depending on the business location.
(2) The number of hours eligible for
reimbursement varies by position, up to 1,040 hours (six months). The number of hours eligible for
reimbursement for each position is based on the O*NET (occupational information
network) job zone classification for the O*NET position which most closely
matches the company’s job description and the wage paid the trainee at the
point of hire. The O*NET system,
sponsored by the US department of labor, is available at
http://onetonline.org. Each job in the
O*NET system is assigned to one of five job zones, with recommended training
hours for each zone. The number of
recommended hours for fiscal year 2019 (July 1, 2018 – June 30, 2019) is
included in the table below. The JTIP
board may uphold the FY2019 wage requirements beyond fiscal year 2019 under the
following circumstances: 1) For companies that have engaged with the Economic
Development Department through a Local Economic Development Act (LEDA)
agreement prior to December, 2019 for the length of the Project Participation
Agreement (PPA) contract period, provided the company meets job creation
requirements within that period and wages do not fall below the statewide
minimum wage. 2) For companies that have engaged with the Economic Development
Department prior to December, 2019 for consideration of business expansion or
location and have been presented with a written incentive analysis based on the
FY2019 wage requirements. JTIP applications must be submitted for consideration
no later than November 13, 2020. FY2019 wage requirements may be upheld for the
length of the LEDA PPA contract period provided the company meets job creation
requirements within that period and wages do not fall below the statewide
minimum wage.
General Guideline for Duration of Reimbursable
Training Time/Wages for FY2019 |
|||||||
Job Zone |
Definitions |
SVP Range/Conversions |
Hours |
Min. Wage @ Hiring - Urban |
Min. Wage @ Hiring - Rural |
Days |
Weeks |
1 |
Little or no preparation
needed |
Below 4.0 |
320 |
11.00 |
9.50 |
40 |
8 |
2a |
Some preparation needed |
4.0 to < 6.0 |
480 |
12.50 |
10.00 |
60 |
12 |
2 |
Some preparation needed |
4.0 to < 6.0 |
640 |
14.00 |
10.50 |
80 |
16 |
3a |
Medium preparation needed |
6.0 to < 7.0 |
800 |
15.50 |
12.00 |
100 |
20 |
3 |
Medium preparation needed |
6.0 to < 7.0 |
960 |
17.00 |
13.00 |
120 |
24 |
4 |
Considerable preparation
needed |
7.0 to < 8.0 |
1,040 |
20.00 |
14.00 |
130 |
26 |
|
Align with HWJTC |
Additional five percent |
|
28.85 |
19.23 |
|
|
The number of recommended
hours for fiscal years 2021, 2022, 2023 and 2024 are outlined in the tables
below.
General Guideline for Duration of Reimbursable
Training Time/Wages for FY2021 (July 1, 2020-June 30, 2021 |
|||||||
Job Zone |
Definitions |
SVP Range/Conversions |
Hours |
Min. Wage @ Hiring - Urban |
Min. Wage @ Hiring - Rural |
Days |
Weeks |
1 |
Little or no preparation
needed |
Below 4.0 |
320 |
12.50 |
10.63 |
40 |
8 |
2a |
Some preparation needed |
4.0 to < 6.0 |
480 |
14.00 |
11.13 |
60 |
12 |
2 |
Some preparation needed |
4.0 to < 6.0 |
640 |
15.50 |
11.63 |
80 |
16 |
3a |
Medium preparation
needed |
6.0 to < 7.0 |
800 |
17.00 |
13.13 |
100 |
20 |
3 |
Medium preparation
needed |
6.0 to < 7.0 |
960 |
18.50 |
14.13 |
120 |
24 |
4 |
Considerable preparation
needed |
7.0 to < 8.0 |
1,040 |
21.50 |
15.13 |
130 |
26 |
|
Align with HWJTC |
Additional five percent |
|
28.85 |
19.23 |
|
|
General Guideline for Duration of Reimbursable
Training Time/Wages for FY2022 (July 1, 2021-June 30, 2022 |
|||||||
Job Zone |
Definitions |
SVP Range/Conversions |
Hours |
Min. Wage @ Hiring - Urban |
Min. Wage @ Hiring - Rural |
Days |
Weeks |
1 |
Little or no preparation
needed |
Below 4.0 |
320 |
14.00 |
11.90 |
40 |
8 |
2a |
Some preparation needed |
4.0 to < 6.0 |
480 |
15.50 |
12.40 |
60 |
12 |
2 |
Some preparation needed |
4.0 to < 6.0 |
640 |
17.00 |
12.90 |
80 |
16 |
3a |
Medium preparation
needed |
6.0 to < 7.0 |
800 |
18.50 |
14.40 |
100 |
20 |
3 |
Medium preparation
needed |
6.0 to < 7.0 |
960 |
20.00 |
15.40 |
120 |
24 |
4 |
Considerable preparation
needed |
7.0 to < 8.0 |
1,040 |
23.00 |
16.40 |
130 |
26 |
|
Align with HWJTC |
Additional five percent |
|
28.85 |
19.23 |
|
|
General Guideline for Duration of Reimbursable
Training Time/Wages for FY2023 (July 1, 2022-June 30, 2023 |
|||||||
Job Zone |
Definitions |
SVP Range/Conversions |
Hours |
Min. Wage @ Hiring - Urban |
Min. Wage @ Hiring - Rural |
Days |
Weeks |
1 |
Little or no preparation
needed |
Below 4.0 |
320 |
15.00 |
12.75 |
40 |
8 |
2a |
Some preparation needed |
4.0 to < 6.0 |
480 |
16.50 |
13.25 |
60 |
12 |
2 |
Some preparation needed |
4.0 to < 6.0 |
640 |
18.00 |
13.75 |
80 |
16 |
3a |
Medium preparation
needed |
6.0 to < 7.0 |
800 |
19.50 |
15.25 |
100 |
20 |
3 |
Medium preparation
needed |
6.0 to < 7.0 |
960 |
21.00 |
16.75 |
120 |
24 |
4 |
Considerable preparation
needed |
7.0 to < 8.0 |
1,040 |
24.00 |
17.75 |
130 |
26 |
|
Align with HWJTC |
Additional five percent |
|
28.85 |
19.23 |
|
|
General Guideline for Duration of Reimbursable
Training Time/Wages for FY2024 (July 1, 2023-June 30, 2024 |
|||||||
Job Zone |
Definitions |
SVP Range/Conversions |
Hours |
Min. Wage @ Hiring - Urban |
Min. Wage @ Hiring - Rural |
Days |
Weeks |
1 |
Little or no preparation
needed |
Below 4.0 |
320 |
15.50 |
13.18 |
40 |
8 |
2a |
Some preparation needed |
4.0 to < 6.0 |
480 |
17.00 |
13.68 |
60 |
12 |
2 |
Some preparation needed |
4.0 to < 6.0 |
640 |
18.50 |
14.18 |
80 |
16 |
3a |
Medium preparation
needed |
6.0 to < 7.0 |
800 |
20.00 |
15.68 |
100 |
20 |
3 |
Medium preparation
needed |
6.0 to < 7.0 |
960 |
21.50 |
16.68 |
120 |
24 |
4 |
Considerable preparation
needed |
7.0 to < 8.0 |
1,040 |
24.50 |
17.68 |
130 |
26 |
|
Align with HWJTC |
Additional five percent |
|
28.85 |
19.23 |
|
|
(3) The
JTIP staff will ensure that the O*NET occupations match the company job
description for the requested position and that training hours requested do not
exceed the O*NET guideline. The board
will also review the company's educational and experience requirements of the
applicants to determine the degree of match with the company's job
descriptions. The JTIP board may award
training hours based on the O*NET guideline unless the company clearly
substantiates that additional hours are required. In determining the appropriate number of
training hours, the board considers the training plan, the training objectives,
and the hourly wage at point of hire associated with the position.
(4) The
board has also adopted a wage requirement for JTIP participation. The wage requirement varies by job zone and
company location (rural/urban). These
requirements are listed in the [table] tables above. If a company establishes a wage range which
includes wages below the minimum wage recommended for that position and job
zone, the number of hours eligible for reimbursement may be reduced from the
O*NET recommended hours as per criteria and procedures set forth by and at
the discretion of the JTIP board, which may include consideration of the
company benefits package. Generally,
the hours are reduced to the hours allowed for the next lower job zone. The reimbursement percentages may be adjusted
at the discretion of the board based on availability of funds or sufficient
appropriations.
(5) The
percentage of wages reimbursed depends primarily on the business location. The categories for location are urban, rural,
frontier, economically distressed, and Native American land.
(a) Companies located in urban areas
(cities with population above 60,000 in the most recent federal decennial
census) and Class H counties (i.e., Los Alamos) are reimbursed at up to fifty
percent for all eligible training hours.
Urban communities are:
Albuquerque (545,852), Las Cruces (97,618), Rio Rancho (87,521), and
Santa Fe (67,947).
(b) Companies located in rural areas,
outside those listed above are reimbursed at up to sixty-five percent for all
eligible training hours.
(c) Companies located in frontier areas
(communities with a population of 15,000 or fewer and outside an MSA) are
reimbursed at up to seventy-five percent for all eligible training hours.
(d) Companies located in an economically
distressed area in New Mexico are eligible for up to seventy-five percent
reimbursement. To receive up to
seventy-five percent reimbursement, a company must be located in a county with
an unemployment rate significantly higher than the state unemployment
rate. However, the JTIP board may
entertain an exception to this policy when a company is located in a community
experiencing a combination of other distressed economic conditions such as
recent significant job losses due to business closures or down-sizing, a
decline in population, loss of gross receipts or other factors.
(e) Companies located on Native American
reservations are eligible for up to seventy-five percent reimbursement.
(f) Companies located in federally
designated colonias in New Mexico are eligible for up
to seventy-five percent reimbursement for all eligible training hours.
(6) JTIP
eligible positions with starting wages eligible for the high wage job tax
credit may be eligible for an additional five percent reimbursement. These requirements are a hiring salary of
$60,000 or higher in an urban or class H county and a hiring salary of $40,000
or higher in a rural location or economically disadvantaged area. Trainee requirements are still factors for
JTIP eligibility. The percentage of wages reimbursed for high-wage positions
filled by trainees who do not meet the one-year residency requirement is unique
and not subject to any additional wage reimbursement above the standard rate.
Companies located in urban areas and Class H counties are reimbursed up to
thirty percent for all eligible training hours. Companies located in rural
areas are reimbursed up to forty percent for all eligible training hours.
Companies located in frontier areas are reimbursed up to fifty percent for all
eligible training hours.
(7) Companies
that utilize the WorkKeys® program as part of their
hiring process may be eligible for an additional five percent reimbursement.
(8) JTIP
eligible positions filled by trainees who have graduated within the past 12
months from a post-secondary training or academic program at a New Mexico
institution of higher education may be eligible for an additional five percent
reimbursement.
(9) JTIP
eligible positions filled by U.S. veterans may be eligible for an additional
five percent reimbursement.
(10) Additional
guidelines for wage reimbursement:
(a) Eligible trainee hours shall not
exceed 1,040 hours per trainee (six months) based on the company's scheduled
workweek, not to exceed 40 hours per week.
(b) Reimbursement is calculated on base
pay only. Bonus pay, overtime,
commission and stock options are not eligible for reimbursement.
(c) If the company compensates the
trainee for annual, holiday or sick leave during the approved training period,
those hours are included in the approved training hours at the base rate.
(d) Any training hours that exceed the
contracted amount are the responsibility of the company.
(e) If a company is participating in
other job reimbursement training programs such as WIOA, the combined
reimbursement to the company may not exceed one hundred percent.
(f) Additional wage reimbursement may
not exceed ten percent above the standard rates. Companies may combine the
additional five percent wage reimbursement for high-wage jobs with one of the
three following conditions for an additional five percent wage reimbursement
provided the entry wage is at least the minimum rate for the Job Zone as
outlined in the JTIP wage chart on Paragraph (2) of Subsection D. of 5.5.50.10
NMAC for Zones 1, 2, 3 and 4: 1) the trainee has taken the WorkKeys®
assessments as part of the hiring process; 2) the trainee has graduated within
the past 12 months from a post-secondary training or academic program at a New
Mexico institution of higher education; 3) the trainee is a U.S. veteran.
High-wage positions filled by trainees who do not meet the one-year residency requirement
are not eligible for additional wage reimbursement above the standard rate.
E. Reimbursement
for custom classroom training: Payment for custom classroom training
services provided by public post-secondary educational institutions is
restricted to instructional costs. The
rate of reimbursement to the institution is at a maximum of $35 per hour per
trainee with a cap of $1,000 per trainee.
Instructional costs for classroom training conducted by an educational
institution may include course development, instructional salaries, relevant
supplies and materials, expendable tools, accounting services, and other costs
associated with conducting the training program. No training equipment may be purchased or
rented using JTIP funds.
[5.5.50.10 NMAC - Rp, 5.5.50.10 NMAC, 06-26-2018; A, 1/1/2020]