CA · IWT

California Incumbent Worker Training: How to Get Reimbursed for Upskilling

California employers have two ways to get current staff trained at public expense. The Employment Training Panel (ETP) pays a flat hourly rate per trainee, $24 an hour for standard retraining and $28 for small businesses and priority industries in fiscal 2026-27, once the worker finishes training and stays employed, usually 90 days. Your local workforce board can also fund WIOA Incumbent Worker Training, where you pay at least 10%, 25% or 50% of the cost depending on your size.

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State pre-filled: CA
Program type pre-filled: incumbent_worker_training

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HOW IT WORKS

Four steps, in this order.

1
Pick ETP (state) or your local board (WIOA)
2
Get approved before any training starts
3
Train current employees
4
Get paid after training and retention

2 VERIFIED PROGRAMS

Where the California money comes from.

Run by Employment Training Panel (ETP); WIOA incumbent worker training through EDD and local workforce boards. Every figure is from an official page, linked on each card.

Employment Training Panel (ETP) contract funds

$24 to $28 per training hour, per trainee

OPEN, FIRST IN FIRST OUT

WHAT YOU GET

A flat fixed-fee hourly rate per trainee who completes training and stays employed.

HOW MUCH

FY 2026-27: retraining $24 an hour standard; $28 for small business, priority industries, veterans and several other categories; new hires $28; 8 to 200 training hours per retrainee. Project cap $650,000 per single employer ($900,000 for critical proposals and multiple employer contracts).

WHO RECEIVES THE MONEY

The contractor: your company on a single-employer contract, or a multiple employer contractor such as a training agency or chamber.

WHO QUALIFIES

Your company pays California's Employment Training Tax
Retrainees work full time and have been with you 90 days or more
Retraining generally requires out-of-state competition; manufacturers qualify automatically
Trainees live in California and earn at least the ETP minimum wage after retention ($24.67 an hour in most counties for 2026)
Some industries are under moratorium, including car dealerships, gambling and commission retail

Before you start: Yes. The Panel approves each proposal at a monthly meeting, and you may start training only after that.

WIOA Incumbent Worker Training through your local workforce board

You pay 10% to 50% of the cost

THROUGH YOUR LOCAL BOARD

WHAT YOU GET

The public share of training costs such as instructors, books and materials. Trainee wages are not reimbursed but can count toward your share.

HOW MUCH

You pay at least 10% of the cost with 50 or fewer employees, 25% with 51 to 100, and 50% above 100. Award caps are set locally.

WHO RECEIVES THE MONEY

Your company, under a training contract with the local board.

WHO QUALIFIES

Valid California employer account number
Workers employed with you 6 months or more (a cohort can qualify if most meet it)
You commit to keep the trained workers, or promote them, after training
Training must make your business or the workers more competitive

Before you start: Yes. The board approves your company and signs a training contract before training starts.

LOCAL BOARDS

Same program, different rules by board.

San Diego Workforce Partnership

Up to $15,000 per employer per program year; paid 60% at training start and 40% at completion.

SOURCE: WORKFORCE.ORG

Santa Cruz County Workforce Development Board

Up to $10,000 per trainee in incumbent worker funds.

SOURCE: WORKFORCESCC.COM

AVOID THESE

What gets California IWT claims denied.

ETP: a trainee who does not finish the hours or leaves before the retention period ends earns nothing.
SOURCE: ETP.CA.GOV
ETP: starting training before the Panel approves.
SOURCE: ETP.CA.GOV
ETP: retraining jobs not threatened by out-of-state competition (unless you are a manufacturer or qualify under special rules).
SOURCE: ETP.CA.GOV
WIOA: workers with less than 6 months on the job, or no employer share paid.
SOURCE: EDD.CA.GOV

STRAIGHT ANSWERS

California IWT questions.

Who gets paid by ETP?

The contractor: your company on a single-employer contract, or a training agency or chamber on a multiple employer contract. Payment comes per trainee after training and retention are complete.

SOURCE: ETP.CA.GOV

Is ETP funding open now?

ETP listed its contract funds as open on September 30, 2026, handled first in, first out as funding allows. The apprenticeship and agriculture initiatives were closed.

SOURCE: ETP.CA.GOV

Can a small business use ETP?

Yes. The Small Business Program covers employers with 100 or fewer California employees (250 or fewer worldwide) at $28 an hour for retraining.

SOURCE: ETP.CA.GOV

How much do I pay under WIOA incumbent worker training?

At least 10% of the cost with 50 or fewer employees, 25% with 51 to 100, and 50% above 100. Wages you pay trainees during training can count toward it.

SOURCE: EDD.CA.GOV

How we checked. Every fact on this page comes from a state agency, a local workforce board or federal regulation, read on September 30, 2026. Where a board publishes nothing, we say so instead of guessing. Programs and funding change often; confirm with the program before you commit. Written by Jason Meehl, founder of Reimbursa. Found an error? Email hello@reimbursa.com.

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