MN · OJT

How Minnesota OJT Reimbursement Actually Works for Employers

Minnesota has no separate state OJT wage program. On-the-job training runs through WIOA and the local CareerForce workforce boards: you hire an eligible person, sign a contract before training starts, and the board reimburses part of the wages, typically up to 50%. Employers in Greater Minnesota that add new jobs can also use the state Job Training Incentive Program, which allows OJT wages as an eligible cost up to a cap.

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State pre-filled: MN
Program type pre-filled: OJT

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HOW IT WORKS

Four steps, in this order.

1
Contact your local CareerForce office or workforce board
2
Agree the candidate and training plan and sign the OJT contract
3
Train the new hire on the job
4
Invoice the board for its share of wages

2 VERIFIED PROGRAMS

Where the Minnesota money comes from.

Run by DEED CareerForce (state) and local workforce boards such as JET in Northeast Minnesota (contracts and payment). Every figure is from an official page, linked on each card.

WIOA On-the-Job Training through your local CareerForce workforce board

Up to 50% of wages (75% only if documented)

THROUGH YOUR LOCAL BOARD

WHAT YOU GET

Reimbursement of part of a new hire's wages while the person learns the job, for the extra cost of training and supervision. You do not have to document those extra costs.

HOW MUCH

Federal rule: typically up to 50% of the wage rate, up to 75% only where the board documents its reasons. DEED's CareerForce page describes up to 50% of wages. Northeast Minnesota (JET) says reimbursement is typically 50% of the hourly wage.

WHO RECEIVES THE MONEY

The employer, as reimbursement. The new hire is paid wages by the employer as usual.

WHO QUALIFIES

The position must be full-time and permanent
The new hire must meet WIOA eligibility, for example dislocated worker or low income
A training plan is developed with CareerForce
Mainly for new hires; Minnesota boards set their own detailed rules

Before you start: Yes. JET says a simple contract must be signed before hiring or training, and the candidate must complete a JET application.

Job Training Incentive Program (JTIP), OJT wages as an eligible cost

Up to $200,000, OJT wages capped at $10,000 a person

OPEN, ROLLING

WHAT YOU GET

A DEED grant to train workers in new jobs. On-the-job training wages are an allowed use.

HOW MUCH

Grants up to $200,000 per business. By statute, OJT costs may not exceed 50% of the new jobs' annual gross wages in the first full year, up to $10,000 per eligible employee. Employer match is .5:1.

WHO RECEIVES THE MONEY

The employer. Grants go directly to the business.

WHO QUALIFIES

Business is located outside the seven-county metro area, or in Cannon Falls, Hanover, Rockford, Northfield or New Prague
Adding at least three new jobs
New jobs pay at least 120% of federal poverty guidelines for a family of four ($39,600 a year for 2026) and offer 32 or more hours a week for nine months or more

Before you start: Yes. The grant is an agreement with DEED that sets costs before they are paid.

LOCAL BOARDS

Same program, different rules by board.

JET, Northeast Minnesota Office of Job Training (Aitkin, Carlton, Duluth, Grand Rapids, Hibbing, International Falls, Virginia)

Typically 50% of hourly wage for a full-time, permanent position. The candidate completes a JET application and a contract is signed before hiring or training.

SOURCE: NEMOJT.ORG

AVOID THESE

What gets Minnesota OJT claims denied.

Hiring or starting training before the OJT contract is signed.
SOURCE: NEMOJT.ORG
Hiring someone who is not WIOA eligible or not referred through CareerForce.
SOURCE: CAREERFORCE.MN.GOV
A part-time or temporary job.
SOURCE: CAREERFORCE.MN.GOV
Past OJT trainees not kept on as regular employees.
SOURCE: ECFR.GOV

STRAIGHT ANSWERS

Minnesota OJT questions.

How much of a new hire's wages will a Minnesota board reimburse?

Typically up to 50%. Federal rules allow up to 75% only where the local board documents its reasons. Ask your board which rate it uses.

SOURCE: ECFR.GOV

Do I have to prove my training costs?

No. The payment is treated as compensation for the extra cost of training and lower productivity, so you do not document those costs. You do keep wage and time records.

SOURCE: ECFR.GOV

Is there a state OJT program separate from WIOA?

Not by that name. The state JTIP grant can pay OJT wages for new jobs in Greater Minnesota, with a cap of $10,000 per eligible employee.

SOURCE: REVISOR.MN.GOV

Can I use OJT for someone already on my payroll?

OJT is built for new hires approved before training starts. For current staff, look at incumbent worker programs.

SOURCE: CAREERFORCE.MN.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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