Job retention program has large impact
6/8/2010
Grant is
available for area businesses to keep from laying off workers
By Cynthia Payne
NT Editor/Publisher
and Bill Richmond
NG City Editor
Published:
Monday,
June 7, 2010 6:07 AM CDT
A job retention program through Community
& Family Services (CFS) is having a large impact in Blackford County.
The program already has positively affected the employment
status of more than a half dozen employees at Blackford County businesses,
according Rob Cleveland, executive director of the Blackford County Economic
Development Corp. (BCEDC.)
“I am hopeful it will affect many more,” Cleveland said.
The program started around the first of May. “We wanted to
take full advantage right away and we are trying to line up even more
companies,” Cleveland said.
The job retention program is through a grant obtained by CFS to help local
employers keep from laying off workers. Cleveland gives credit to Mayor
Dennis Whitesell for understanding the local impact the program could have.
“The program was brought to him by Community and Family Services and he saw the
immiate potential in the program,” Cleveland explained.
“He (Whitesell) wanted to make sure it was used from a
county-wide standpoint so he contacted me and we have met several times,” he
added.
The grant can provide a partial wage subsidy to the employer
for income-eligible employees who may be in danger of layoff or who are already
on layoff.
The grant can provide a partial wage subsidy to the employer for income-eligible employees who may be in danger of layoff or who are already on layoff.
CFS obtained the grant through the state, and the wage subsidy to the employer is available through September 30. Funding is through federal economic stimulus dollars intended to provide a boost for the economy, as well as to help income-eligible individuals.
The job subsidy payments are made directly though the CFS office so once the program is set up, there is a rapid turnaround. The payment goes directly to the employers, so the worker doesn’t know it has taken place.
The program is available to businesses located in one of the six counties serviced by CFS – Randolph, Jay, Blackford, Adams, Wells, and Huntington counties, but not all are taking the same advantage of the program as is Blackford, according to CFS officials. Income-eligible employees must live in one of those six counties.
The project is funded by the American Recovery and Reinvestment Act (ARRA) through a community service block grant from the Indiana Housing & Community Development Authority.
The program has a simple income eligibility test: If the employer shows that the employee’s hourly rate is $10.41 or less ($21,660 annualized) and the individual is either on layoff or at risk of being laid off, then the employer could receive a subsidy under the program to help preserve that job in the community. The employee would not have to be involved in that discussion or be aware of the subsidy.
The wage subsidy is up to 50 percent of the worker’s eligible full-time wage with subsidy caps of $5 per hour, 40 hours per week and $200 per week per employee. The subsidy is paid to the employer after each payroll.
Positions to be subsidized should be full-time. Jobs compensated through commissions or tips are not eligible for the subsidy.
If and employer has an employee who earns more than the $10.41 per hour income guideline, and the employer would like to inquire further about eligibility, program officials can work with the employer and employee for an expanded look at family size and income to see if that individual might qualify. In that case, the employee would need to participate in the process, however.
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