The First Three Questions (Employer edition)
*Disclaimer—I’m not an employee of any federal or state agency. The information I present is derived solely from personal experience assisting employers with GI Bill certification. If anything is incorrect, please contact me and I will make the appropriate changes.
In a previous post, I discussed a vastly under-utilized benefit package that helps both veterans and employers: The Post 9/11 GI Bill. In future articles, I will cover why the GI Bill is so valuable. For now, all you need to know is that as a GI Bill certified employer, you will receive talent at a discount. Extra tax-free cash is paid to your eligible veteran employees directly from the government. This can act as a wage subsidy worth tens of thousands of dollars a year in payroll savings.
Your decision to seek GI Bill certification depends on the following three questions:
Can you guarantee at least 30 paid hours/week that combine training and employment?
Why it matters: The intent of the GI Bill is to help transitioning service members reenter society. This requirement is a protection for taxpayers—their money won’t be allocated for part time jobs that don’t offer financial stability for veterans.
Can you afford to increase wages as the employee makes progress?
Why it matters: In principle, employees who increase their skill level from training should be more valuable to a company. If wages didn’t increase with skill acquisition, then either the training is ineffective, or their employees aren’t being compensated. In other words, the progressive wage scale acts as an incentive for employers to develop their employees.
Are you willing to manage this program?
Why it matters: Certified employers have monthly reporting requirements to ensure that benefits are allocated accurately. For example, if a GI Bill beneficiary is paid benefits for hours they did not work, the government can recoup that money, creating greater financial hardship. Additionally, if an employer has a training program that doesn’t effectively increase knowledge, skills, or abilities, they are doing harm—there is a limit to the amount of benefits each Veteran may use.
If you answered “yes” to all three questions, then you’re probably eligible. Your next step is to choose a path.
Figure 1: GI Bill Flowchart
There are two pathways for employers to become GI Bill certified: The Department of Labor’s Registered Apprenticeship Program, and the Veteran Administration’s On-the-Job Training (OJT) program (See Figure 1). The biggest difference between them boils down to the length of training required. Registered Apprenticeships tend to be longer—at least a year long—and the OJT program can be as short as six months. The certification process is different for each, however both pathways share the same fundamental requirements. These requirements are set by federal legislation.
Click here for the standards of Apprenticeship.
Click here for the On-the-Job Training requirements
While understanding the letter of the law is important, it’s also critical to understand the law’s intent: to protect apprentices and taxpayers from exploitation and fraud. Ultimately, this means that most registration agencies are willing to work with unconventional businesses, as long as they offer real career opportunities.
Note: “Apprentice” has a very specific meaning in the eyes of the government agencies who administer the GI Bill. According to the Code of Federal Regulations (29 CFR § 29.2), an apprentice is an employee who is old enough to work, is paid, and receives training for an approved employer. In other words, they are paid employees first and foremost. Training programs that do not pay their trainees for labor fall under the Department of Education for GI Bill certification.
