7.3 Employer Agreements

7.3.1 Wage Subsidy

7.3.2 Payroll Taxes and Insurance

7.3.3 Overtime

An SJ requires at least twenty (20) and not more than forty (40) hours a week of work. Contractors must develop and complete an employer agreement for every SJ. At minimum, the employer agreement must include:

1.             Subsidized worker’s full name;

2.             Subsidized worker’s PIN;

3.             Official name of worksite;

4.             Worksite Federal Employer Identification Number (FEIN);

5.             Worksite mailing address;

6.             Subsidized worker’s work address;

7.             Supervisor’s name;

8.             Supervisor’s title;

9.             Supervisor’s phone number;

10.         General scope of work to be done by the subsidized worker;

11.         Expected duration of subsidized employment (begin date and end date);

12.         Hours per week;

13.         Hourly wage;

14.         Wage subsidy (up to $7.25 per hour);

15.         Hourly wage in excess of wage subsidy;

16.         Responsible party for hourly wage in excess of wage subsidy;

17.         Estimated payroll taxes and insurance;

18.         Responsible party for payroll taxes and insurance (if applicable);

19.         Total planned subsidized employment hours (not to exceed 1,040 hours actually worked);

20.         Training and education requirements (if applicable);

21.         Statement ensuring that the subsidized employment is in compliance with the employer guidelines in 6.7.;

22.         Statement ensuring that the employer will retain the subsidized worker as an unsubsidized worker at the end of the subsidized job or serve as an employment reference;

23.         Statement ensuring that the employer will conduct regular performance evaluations;

24.         Statement ensuring that the employer understands that when the subsidized worker loses eligibility for the Program, the wage subsidy ends. In this circumstance, the employer and the Contractor agree that the loss of the subsidized worker’s eligibility obligates the Contractor to terminate its contractual relationship with the employer; and

25.         Signatures with dates of the Contractor, worksite supervisor, and the subsidized worker assigned to that site.

Contractors must scan internal employer agreements into ECF.

7.3.1 Wage Subsidy

Contractors must negotiate an agreement with an employer to pay a wage subsidy that is no more than the state or federal minimum wage ($7.25) for each hour worked, up to a maximum of 40 hours per week. The Contractor may negotiate with an employer to pay a wage subsidy that is less than $7.25 per hour, if the employer is willing to accept a wage subsidy that is less than $7.25 per hour.

An employer may pay an SW an amount that exceeds the negotiated wage subsidy; however, the employer must pay the SW at least minimum wage. SJ wages in excess of the negotiated wage subsidy are not reimbursable costs under the TJ or TMJ contracts.

EXAMPLE: A SJ pays $9.00 per hour. The contractor and employer negotiate a wage subsidy of $5.00 per hour. Subsidized wages in excess that are not eligible for reimbursement = $4.00 ($9.00 - $5.00).

 

7.3.2 Payroll Taxes and Insurance

In addition to negotiating the wage subsidy, Contractors may agree to reimburse an employer for payroll taxes and insurance attributable to the employment of the SW.

7.3.3 Overtime

An SW may work more than forty (40) hours per week and must be paid overtime if required by law. Overtime wages in subsidized employment are not reimbursable. Overtime hours do not count towards the maximum of 1,040 hours worked. Payroll taxes and insurance attributable to overtime hours are not reimbursable.

 

 

History: There are no previous versions of this policy.