Texas businesses facing workforce cost pressures — whether from rising wages, employee retention challenges, or hiring difficulties — may be eligible for government programs that offset labor costs. While there are no grants specifically tied to minimum wage compliance, several programs effectively reduce the cost of hiring, training, and retaining employees.
Workforce Training Grants
Skills Development Fund
The Texas Workforce Commission’s Skills Development Fund provides grants to community colleges that partner with employers for customized workforce training. The program covers training costs for new and existing employees, reducing your investment in workforce development. Skills Development Fund guide.
Self-Sufficiency Fund
A TWC program that funds training for businesses hiring individuals transitioning from public assistance programs. The Self-Sufficiency Fund covers training costs and is specifically designed to help workers move into self-sustaining employment.
Apprenticeship Programs
Texas supports registered apprenticeship programs that combine on-the-job training with classroom instruction. Employers may receive state support for registered apprenticeship programs. Apprenticeship guide.
Hiring Tax Credits
Work Opportunity Tax Credit (WOTC)
Federal tax credits for employers hiring from designated target groups including SNAP recipients, ex-offenders, veterans, and long-term unemployed individuals. Credits range from \$2,400 to \$9,600 per qualifying hire, calculated as a percentage of first-year wages.
Federal Bonding Program
Free fidelity bonds for employers hiring individuals who may be considered risky hires, including ex-offenders, individuals with poor credit, and those lacking work history. Bonds cover the first six months of employment.
On-the-Job Training Subsidies
Local Workforce Solutions boards can provide on-the-job training (OJT) subsidies that reimburse employers for a portion of wages paid during a new employee’s training period. OJT subsidies are typically 50% of the employee’s wage for up to six months.
Employee Retention Programs
- Shared Work program: TWC’s Shared Work program allows employers to reduce hours for employees instead of laying them off, with employees receiving partial unemployment benefits to supplement reduced wages.
- Worker adjustment assistance: Programs to help workers and businesses adjust to economic disruptions including trade-related job losses.
Strategies for Managing Workforce Costs
- Pre-screen all new hires for WOTC. The credit applies to many common hiring situations and is frequently underutilized.
- Partner with your local community college on Skills Development Fund applications for customized training.
- Use Workforce Solutions OJT programs to offset training costs for new hires.
- Consider registered apprenticeships for trades and skilled positions.
- Stack hiring incentives: WOTC credits, OJT subsidies, and Skills Fund grants can sometimes be combined for the same workforce. Stacking guide.
Find Workforce Programs That May Fit
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