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Subsidized Employment
Subsidized Employment are transitional jobs that provide time-limited work expereince in the public, private, or non-profit sector that is paid and subsidized for individuals with barriers to employment who are chronically unemployed or have inconsistent work history. Transitional jobs are designed to enable an individual to establish a work history, demonstrate work success, and develop skills that lead to unsubsidized employment.
Transitional jobs provide individuals with paid work experience and an opportunity to develop important workplace skills within the context of an employee-employer relationship, in which the program provider generally acts as the employer, and with an opportunity to develop important workplace skills. Unlike On-the-Job Training, with transitional jobs the training provider may be the employer of record and there is no requirement that the employer retains the individual upon completion of the transitional job; however, job retention is an ideal outcome.
Target populations include:
- Long-term unemployed individuals;
- Formerly incarcerated individuals; and
- Individuals with disabilities.
Subsidized Employment participants must be paid an amount equal to at least the local or state minimum wage for all hours of participation. Wages paid to CFET participants via Subsidized Employment are reimbursable at the rate of 50 percent. Subsidized Employment wages are countable income against CalFresh benefits; therefore, participants should be informed prior to engaging in Subsidized Employment. CFET Third-Party Partners must have a plan to provide training and move participant into unsubsidized employment swiftly, either with the same employer or a different employer.
Reimbursement of participant wages in Subsidized Employment is capped at 120 hours per month for up to six (6) months in a 12-month period.
Participant hours listed in the monthly invoice must match the data entry in VSAS. Third-Party Partners must also provide time sheets and pay stub as supporting documents for reimbursement of participant Subsidized Employment wages.
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