The U.S. Department of Labor funds workforce programs that directly benefit Texas employers through hiring subsidies, training grants, tax credits, and apprenticeship support. These programs are primarily administered through the Texas Workforce Commission (TWC) and 28 local Workforce Solutions offices across the state.
Work Opportunity Tax Credit (WOTC)
WOTC provides federal tax credits to employers who hire individuals from specified target groups. Credits range from $2,400 to $9,600 per qualifying hire depending on the target group and hours worked.
- Veterans (including service-connected disabled veterans)
- SNAP (food stamp) recipients
- TANF recipients
- Designated community residents (Empowerment Zone/Enterprise Community)
- Vocational rehabilitation referrals
- Ex-felons
- Supplemental Security Income recipients
- Summer youth employees from Empowerment Zones
- Long-term unemployment recipients
Texas employers apply for WOTC certification through TWC. The IRS Form 8850 must be submitted within 28 days of the employee's start date. Complete WOTC guide for Texas employers.
Workforce Innovation and Opportunity Act (WIOA)
WIOA is the primary federal workforce development law, funding programs administered through TWC and local Workforce Solutions offices:
- On-the-Job Training (OJT): Employers receive reimbursement for 50-75% of a new employee's wages during a training period, typically 3-6 months
- Incumbent Worker Training: Funding for upgrading skills of current employees to improve business competitiveness
- Customized Training: Training designed to meet specific employer needs, with employers paying a portion of the cost
- Youth Programs: Subsidized work experience placements for youth ages 16-24
Registered Apprenticeship Programs
DOL supports registered apprenticeship programs that combine on-the-job training with classroom instruction. Texas employers can:
- Register new apprenticeship programs through DOL's Office of Apprenticeship or the Texas Education Agency
- Access federal and state funding for apprenticeship-related training costs
- Receive WOTC credits for hiring apprentices from eligible target groups
- Participate in industry-recognized apprenticeship programs in construction, healthcare, IT, and advanced manufacturing
Federal Bonding Program
The Federal Bonding Program provides fidelity bonds for hard-to- place job applicants, including ex-offenders, individuals in substance abuse recovery, and others who employers may hesitate to hire due to bonding concerns. The bond is provided at no cost to the employer or employee for the first six months.
Trade Adjustment Assistance (TAA)
TAA provides benefits to workers and firms affected by increased imports or shifts in production to other countries. For employers, TAA for Firms provides technical assistance to help businesses adjust to import competition through modernization, market diversification, and process improvement.
Job Corps
DOL's Job Corps program operates residential education and training centers for at-risk youth. Texas employers can partner with Job Corps centers to access trained entry-level workers in construction, healthcare, IT, hospitality, and advanced manufacturing.
How Texas Employers Access DOL Programs
- Contact your local Workforce Solutions office: Texas has 28 workforce development boards, each operating Workforce Solutions offices that administer WIOA programs locally
- Use WorkInTexas.com: The state's job matching system connects employers with qualified candidates and program referrals
- Apply for WOTC: Submit IRS Form 8850 and ETA Form 9061 through TWC within 28 days of each qualifying hire
- Explore apprenticeship: Contact the Texas Workforce Commission Apprenticeship division to explore registered apprenticeship options
Bottom Line
DOL workforce programs provide Texas employers with tangible financial benefits — tax credits for qualifying hires, subsidized training costs, free bonding, and apprenticeship support. These programs are accessible through TWC and your local Workforce Solutions office.
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