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The State Could Pay for Your Training – Here’s How

EverythingHR Staff | 02/14/2019 | Blog, Featured

Why use training funding from the California Employment Training Panel (ETP)?

Read our FAQ to learn more!

The simple answer: It is a way to get back some of the tax dollars you have paid into the ET (Employment Training) Tax fund since it was created in 1981. The ET Tax is levied on for-profit employers and equates to 1/10% of the employer’s Unemployment Insurance Tax. It maxes out at $7 per year, per employee.


What training does ETP funding cover?

It’s easier to say what ETP will NOT subsidize: Harassment, Compliance, and Safety training for starters. In other words, the state will not fund anything your company is obligated to do by law. This means that there is a lot of training that is covered! A typical range of training hours for a trainee can be anywhere from 8 to 120 hours (some exceptions allowed for >120 hours). One thing to note is that the state has a strong preference to only allow California entities to provide training. Once approved, the state allows 21 months to complete all of the proposed training. Also keep in mind that the state only pays for what was attended, not what was planned – so be realistic on what can be delivered.


How much does the state pay?

For most employers and types of training, the state reimburses between $23-$26 per trainee, per hour.  This means that the state may or may not fully cover the costs of training delivery, especially if an outside firm is delivering the training. Additionally, the maximum class size is typically 20 trainees to 1 instructor for most training types. As a simple example, if your company is implementing a new ERP system, which would require 100 employees to go through 40 hours of training, this would mean the state would subsidize this program by $92 to $104K. If you incorporate e-learning, that is only reimbursed at $9 per hour.


Who can we train using state funds?

The training is targeted to employees who earn at least $18.56 for L.A. County (wages range from $17.70 to $19.31 and are dependent on the county of employment). It’s a safe assumption that anyone who earns above $19.31 will then qualify. The state may allow you to include some employer-provided health benefits, shift differentials, bonuses and commissions to help meet the wage requirement. The program targets employee-level; however, supervisors and managers can still receive training. Executive-level typically does not qualify for reimbursed training. Trainees need to be full-time working 35+ hours per week and must remain FT 90-days after they finish the last day of training (some exceptions are permitted if the trainee voluntarily terminates employment.)


How does my organization qualify?

A large share of the funding is available to companies that face out-of-state competition. Manufacturers automatically to meet this criterion. There are other industries that automatically qualify too. If your business generates over 25% of your revenue from outside of California using CA staff, likely you will qualify too!


How long does it take to get funding?

This is probably the trickiest question. Remember that the state’s fiscal year is July to June, the “wallet” gets refreshed each July. In, May, April, and sometimes March the wallet starts emptying out. The time you initiate an eligibility determination request to getting approved for the funding is about three to four months depending on how aggressive you are in completing the required documents. Typically, if your request is >$100K, you are required to attend a Panel meeting in Sacramento in case the approving Panel has questions on your project.


Is there a solution to get training sooner, faster, and easier?

Yes. The state has contracted with organizations like EverythingHR (EHR) by awarding them “Multiple Employer Contractor” (MEC) agreements. This enables EHR to get you approved in a matter of days, scope a training project that we deliver while we also handle all of the paperwork and deal with the state, including handling funding. You just pay for what the state does not subsidize. It’s always best to talk to EHR about what you are hoping to accomplish so that we can best advise whether to use our funding or go to the state directly.


Is there someone who can help my organization get state funding directly?

Yes, there are a considerable number of consultants who can assist businesses in getting the funding. EverythingHR has vetted consultants and would be happy to refer you. Plus, these consultants can also help you administer the two-year project once you are approved.


What if we want to do training outside of California?

California was one of the first states to adopt a program like this, but now many other states also have similar programs. However, requirements vary drastically from state to state. We can refer you to a partner who has expertise in accessing funding in other states.


How do we get started?

We recommend starting with EverythingHR first. Allow us to advise you on the best course of action. We can get you approved to use our funding with no obligation (whether you choose to participate or not). Click the button below to check if you are eligible!



Note: EverythingHR is a subsidiary of Employers Group. All state-subsidized training funds will be contracted through Employers Group.