IRENE RICO 

Memorandum 

Subject: INFORMATION: Guidance on Implementation Date: October 19, 2023 

of On-the-Job (OJT) Training Requirements 

From: Irene Rico In Reply Refer to: 

Associate Administrator HCR-30

Office of Civil Rights 

To: Directors of Field Services 

Resource Center Director 

Division Administrators 

Civil Rights Specialists 

The Federal Highway Administration (FHWA) On-the-Job Training (OJT) Program is a 

part of FHWA’s Equal Employment Opportunity (EEO) policies and procedures as set 

forth in FHWA regulations at 23 CFR Part 230, Subpart A. The OJT Program is an 

essential element of the Federal-aid Highway Program. The successful implementation of 

OJT by a State Department of Transportation (State DOT) helps develop a competent and 

diverse workforce to meet current and future hiring needs for highway construction. In 

addition, the successful implementation of the FHWA OJT Program supports the 

Department’s focus on workforce development, particularly with respect to the Program’s 

primary objective of recruiting, hiring, and advancing traditionally underrepresented 

individuals in the highway construction workforce. 

The current OJT regulations were issued in 1975 with only minor amendments since that 

time, and none since 1981. Over time, State DOTs have implemented various methods of 

administering the OJT requirements and FHWA has identified a need to clarify 

implementation of the regulations while continuing to allow some flexibility in their 

application.

This memorandum is intended to facilitate communication between the Divisions and State 

DOTs regarding FHWA’s expectations for implementing effective and compliant OJT 

Programs. Except for the statutes and regulations cited, the contents of this document do 

not have the force and effect of law and are not meant to bind State DOTs in any way. This 

document is intended only to provide information and clarity regarding existing 

requirements under the law or agency policies. 
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1) FHWA’s EEO Policies on Federally-assisted Highway Construction Projects: By statute, State 

DOTs receiving funding from FHWA for highway construction projects are required to assure 

that employment in connection with proposed projects will be provided without regard to race, 

color, creed, national origin, or sex. See 23 U.S.C. § 140(a). Training programs associated 

with FHWA-assisted projects must also be implemented in line with EEO requirements. See 

id. In accordance with this statute, “[it] is the policy of the FHWA to require full utilization of 

all available training and skill-improvement opportunities to assure the increased participation 

of minority groups and disadvantaged persons and women in all phases of the highway 

construction industry.” 23 CFR § 230.107(b). In furtherance of these EEO policies, FHWA 

regulations direct that each FHWA-assisted contract must contain a set of EEO requirements, 

including provisions requiring contractors to make “full use of training programs,” such as 

apprenticeships and on-the-job training programs. See id., § 230.109(a) and 23 CFR Part 230, 

Subpart A, Appx. A, para. 7.b (note that the language in Paragraph 7.b. has been modified, as 

reflected in FHWA Form 1273, Section II, para. 6.b. (rev. October 23, 2023)). 

2) Training Special Provisions: FHWA’s regulations at 23 CFR § 230.111(b) require State DOTs 

to pursue overall on-the-job training goals each year. To achieve these overall goals, the 

regulations direct States to select certain contracts on which to set specific OJT goals (i.e., 

number of trainees and the minimum number of training hours), in accordance with guidelines 

set forth at § 230.111(c) (the Guidelines). Such contracts must include the Training Special 

Provisions set forth at 23 CFR Part 230, Subpart A, Appx. B, in place of the general contract 

training provisions included on other contracts, as set forth in 23 CFR Part 230, Subpart A, 

Appx. A, para. 7.b. The requirements assigned to each project using this method do not 

consider the prime contractor’s current workforce utilization or capacity to conduct OJT. This 

is known as a project-specific implementation method. 

3) Flexibilities in Meeting OJT Requirements: While the regulations contemplate a “projectspecific” method for implementing the OJT requirements, as described above, other methods of 

achieving OJT goals—the “contractor-based” and “hybrid” methods—have developed over 

time that FHWA recognizes as consistent with the purpose of the regulations. These other 

methods are described below: 

Contractor-based: This method is based on the contractor’s capacity to conduct OJT, 

including its current workforce utilization, and other considerations. Under this method, an 

annual training plan and OJT goals based on a contractor’s anticipated awards and the 

considerations in the Guidelines are incorporated into an enforceable OJT Agreement 

between the contractor and the State DOT.1 These agreements apply to contracts awarded 

and active during the applicable OJT implementation year. State DOTs monitor 

compliance throughout the year based on the contractor’s efforts to implement the 

requirements of its OJT Agreement on its awarded contracts. 

Hybrid: Any combination of the project-specific and contractor-based approaches. 

1 An enforceable OJT Agreement is a signed document that sets forth the contractor’s obligations for the OJT implementation 

year, such as annual training goals and training plan, training standards, systematic and direct recruitment, trainee enrollment, 

training program approvals, remedies/penalties for non-compliance, etc. As an OJT Agreement may include requirements in 

addition to those covered by the contract training provisions, State DOTs should make compliance with such agreements a 

condition of a contractor’s participation in the Federal-aid Highway Program. 
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4) OJT Implementation Plans: While the regulations do not expressly require State DOTs to 

develop OJT Implementation Plans, FHWA encourages State DOTs to establish and 

maintain such plans to ensure consistency and transparency in how they are implementing 

the requirements found in 23 C.F.R. §230.111 and this guidance. For this purpose, FHWA 

has created an OJT Implementation Plan Development Tool. This tool is available through 

FHWA’s public website at: On-the-Job Training (OJT) Implementation Plan Development 

Tool (dot.gov).

An OJT Implementation Plan should include a description of standards and procedures 

related to the following areas, including, but not limited to: Annual Goals, Individual 

Training Programs, Wages and Contractor Reimbursements, Systematic and Direct 

Recruitment, TSP Implementation, OJT Agreements (if applicable), Compliance 

Monitoring, Enforcement, and Reporting. State DOT OJT Implementation Plans should 

also include a copy of all relevant forms, specifications, or other documents used to 

administer the requirements. State DOTs should keep their OJT Implementation Plans 

updated to reflect the current state of practice consistent with regulatory requirements and 

guidance. State DOT OJT Implementation Plans, including subsequent revisions, should 

be shared with FHWA Division Offices for review. Division Office Civil Rights 

Specialists should upload a copy of the most current OJT Implementation Plan in the 

appropriate State DOT SharePoint folder at: State OJT Implementation

5) Flexibilities in Use of the Training Special Provisions: In light of the length of time since 

FHWA’s OJT regulations were last revised, FHWA has allowed State DOTs some flexibilities 

in implementing the Training Special Provision requirements to account for changes in industry 

practices and inflation. For example, specifying the minimum number of training hours to be 

completed or a requirement to use a training program in a specific craft are acceptable changes. 

Adding the term “disadvantaged individuals,” where appropriate, is another example of an 

acceptable change to the TSP. In addition, as explained further below, the hourly 

reimbursement rate may vary from .80/hour, as stated in Appendix B. 

State DOTs that use a contractor-based implementation method, where goals are assigned to 

contractors through an enforceable OJT Agreement, have the option of using the TSP or a 

similar training provision that synthesizes the TSP general requirements and procedural steps 

with the requirements set forth in the OJT Agreement. In other words, if a similar training 

provision is used in lieu of the TSP, the general requirements found in the TSP should be 

incorporated into that training provision and the OJT Agreement to effectuate compliance. 

State DOTs that assign annual contractor goals without using an enforceable OJT Agreement 

should use the TSP as described in the preceding paragraphs. 

The State DOT OJT Implementation Plan should include a copy of the TSP or similar training 

provision used in contracts along with a boilerplate/template copy of the OJT Agreement used 

to administer contractor-based requirements. 

6) Reimbursement of Training to Contractors: State DOTs may choose one of three options 

regarding the reimbursement of training: 1) Reimburse contractors at the TSP-prescribed 

rate of 80 cents per hour of training; 2) Establish a fixed hourly rate of reimbursement 

greater than 80 cents per hour; or 3) Allow contractors to bid on training per 23 CFR § 

230.111(g). Where the State DOT chooses to establish a fixed hourly rate greater than 80 

cents, this rate should be based on a reasonable estimate of a contractor’s hourly cost in
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providing training that complies with the requirements set forth in the TSP. The rate of 

reimbursement, including the basis for rates greater than 80 cents per hour, should be 

explained in the State DOT’s OJT Implementation Plan.

7) Training of Disadvantaged Persons: In addition to women and members of minority 

groups identified in Appendix C to Subpart A of Part 230, disadvantaged persons, such as 

those receiving welfare assistance, also fall within the statutory intent (See 23 U.S.C. 

140(a)) and regulatory objectives set forth in 23 C.F.R. §230.111. State DOTs may include 

other categories of disadvantaged individuals according to the definitions provided under 

State law. 

When applicable, the OJT Implementation Plan should define other categories of 

“disadvantaged” individuals and describe how they are identified during the OJT 

enrollment process. For example, before a State DOT approves a training program 

submitted by a contractor, it may require the submission of an OJT enrollment application 

that serves to identify the trainee’s demographic information. This information would 

include the gender, minority, or disadvantaged category claimed by the trainee applicant. 

State DOTs may consider gathering this information through an electronic form submission 

or concurrently with the training program submitted for approval. This information is 

necessary to measure program effectiveness and to determine whether a contractor’s 

systematic and direct recruitment efforts were successful in fulfilling the training 

obligation. 

8) Annual OJT Goals: The regulations at 23 CFR § 230.111(b) state that the FHWA Office of 

Civil Rights (HCR) is to publish “suggested” minimum training goals annually based on 

the Federal apportionment and minority populations in each State. If a State falls short of 

attaining its annual goal in a given year, the regulations require the State to inform FHWA 

of the reasons for failing to meet the goal and steps to be taken in the following year to 

attain the goal. Based on the State’s shortfall analysis, FHWA may adjust the State’s

training goal for the following year. 

Experience with goal-setting over time led HCR to modify its practice and allow State 

DOTs to establish their own OJT goals. In current practice, each State DOT establishes a 

proposed annual OJT goal and submits it in writing to its respective FHWA Division 

Office for approval before the beginning of each OJT implementation year2. 

The State DOT’s proposed annual goal should include the numerical goal(s) and 

corresponding measure(s), along with an explanation of how the relevant factors from the 

Guidelines in 23 CFR 230.111(c) were used in determining the proposed goal. At a 

minimum, State DOTs should propose an annual OJT goal for the number of trainees to be 

employed during the upcoming implementation year. However, additional goal measures, 

such as the estimated number of training hours and number of training programs to be 

completed, may also be considered. Regardless of the number of goal measures used, State 

DOTs are expected to maintain a system that allows for the tracking of each trainee’s 

progress under an approved training program, i.e., the number of training hours completed 

2 A State DOT’s OJT implementation year may follow the calendar year, federal fiscal year, or State fiscal 

year. By exception, State DOT’s may request a different implementation year with proper justification and 

approval from the FHWA Division Office. State DOTs should consider aligning their OJT implementation 

years with projects programmed in year one of their Statewide Transportation Improvement Program (STIP). 
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and training program completion status. 

Annual OJT goals should reflect an estimate of training slots or hours that can reasonably 

be achieved across the program of federally assisted projects planned for the upcoming 

implementation year. Regardless of a State DOT’s method of implementing the OJT 

requirements (i.e., project-specific, contractor-based, or hybrid), the relevant factors found 

in the Guidelines should be applied in determining the proposed annual OJT goal(s). In 

addition, State DOTs may use other considerations, such as those that are unique to a 

contractor-based method of implementation (e.g., a contractor’s current utilization of 

women and minorities, the ratio of trainees/apprentices to journey workers, and a 

contractor’s capacity to provide training based on its estimated contract awards). In any 

case, proposed annual OJT goals, including project goals, should not be solely based on 

contract value (e.g., one trainee per two million dollars of contract value). 

FHWA Division Offices should upload a copy of the approved OJT goal along with the 

supporting explanation in the State folder at the following SharePoint link: State OJT 

Implementation 

A State DOT’s ability to achieve its annual OJT goal may be affected by various 

circumstances throughout the implementation year. These include, but are not limited to, 

significant changes in project scope, delays in construction that affect the start of training, 

trainee attrition rates or termination, contract awards that occur late in the OJT 

implementation year, etc. Conversely, OJT accomplishments, are often based on training 

carried over from contract awards in previous OJT implementation years, thus having the 

potential to offset current year accomplishment shortfalls. State DOTs should describe the 

extent to which these circumstances affected goal accomplishment in their Annual OJT 

Reports to FHWA. 

9) Requirements for Individual Training Programs (§230.111(e), (f)): 

To fulfill its training obligations on an FHWA-assisted contract or pursuant to an 

enforceable OJT Agreement, a contractor must use an approved training program designed 

to qualify the trainee for journey worker status in a particular job classification by the end 

of the training period. To meet this requirement, contractors may use the following types 

of training programs: 

a) Training programs submitted by the State DOT to the FHWA Division Office for 

approval, as part of the State DOT’s OJT implementation Plan or separately before the 

start of training. Training programs may be designed in manageable parts to encourage 

trainee retention where such training requires multiple years/construction seasons to 

complete. In addition, training should target the skilled crafts related to highway 

construction. However, training of semi-skilled laborers (e.g., mason tenders or other 

trade-specific laborer classifications) is permissible provided that such laborer positions 

are consistent with industry practice. By exception, training may be conducted in 

lower-level management positions related to highway construction, provided that the 

training program substantially conforms to the requirements below. Training in 

administrative functions is not permissible. 
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b) Each training program submitted for FHWA approval should: 

i) Have a corresponding work classification for which there is a prevailing wage listed 

under the Davis-Bacon wage decision applicable to the contract on which the 

training period begins. 

ii) Describe the terms of employment, including a progressive schedule of wage rates 

in lieu of prevailing Davis-Bacon wages for journey workers that conform to 

Appendix B to Subpart A of 23 C.F.R. Part 230. Notwithstanding, all contractors 

are required to pay the higher of either the rate that conforms to the progressive 

schedule of wage rates or the minimum wage rate set forth under EO 14026 or 

EO13658. (Refer to the applicable Davis-Bacon Wage Decision). The training 

program should also provide a training outline, listing the breakdown of 

competencies or tasks to be learned and the time allocated to each. To the extent 

feasible, the training outline should be consistent with the elements of a 

standardized and credentialed curriculum for the selected craft3. However, all 

training plans must be designed to develop the skills, knowledge, and abilities 

expected of a journey worker or semi-skilled laborer in the selected highway 

construction craft4.

iii) Require a minimum of 2,000 hours5of on-the-job learning for skilled crafts, which 

may include some academic or classroom learning. (Training programs for semiskilled laborer classifications require a minimum of 800 hours.) If the program is 

designed to be conducted in phases, all phases, except for the last phase, should be 

no less than 600 hours. For example, a carpenter training program requires 2,000 

hours of training. The program has been subdivided into four separate levels as 

follows: Carpenter I (600hrs), Carpenter II (600hrs), Carpenter III (600hrs), 

Carpenter IV (200hrs). Components of a training plan previously completed under 

a job readiness/pre-apprenticeship program within two year(s) of training program 

approval may be counted toward the total number of hours required. However, 

State DOTs cannot reimburse contractors for creditable training hours that were 

previously completed. 

iv) Identify the training supervisor who is a journey worker in the selected craft. 

Supervision by a foreman is generally considered insufficient to provide the specific 

training required by the plan. Also, the ratio of trainees to journey workers in the 

work classification covering the training program should be consistent with proper 

supervision, training, and safety requirements. This ratio typically falls between 1:4 

and 1:10; however, this ratio may be specified in collective bargaining or registered 

apprenticeship training agreements. 

3

 A standardized and credentialed training program is a curriculum for a construction craft that is used by a trade school, 

community college, registered apprenticeship or other industry training program, or a nationally recognized entity that 

develops such programs for industry use, e.g., the National Center for Construction Education and Research (NCCER). 

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 State DOTs are encouraged to collaborate with industry organizations to determine the sufficiency of training plans for 

selected crafts. 

5

 FHWA has adopted U.S. DOL’s minimum time-based standard for on-the-job learning of 2,000 hours, which can be found in 

29 C.F.R. §29.5. However, existing training programs approved by nationally recognized industry organizations (e.g., 

NCCER or the Association of General Contractors) are exempt from this requirement. 
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v) Include a plan for review and evaluation of the listed training, including the 

submission of progress records/reports to the State DOT. 

c.) Any apprenticeship training program that is registered with the U.S. Department of 

Labor (USDOL), Employment and Training Administration (ETA), or a State 

Apprenticeship Agency (SAA) is acceptable. Such programs, including their minimum 

wage provisions, are acceptable for use, provided they are administered in a manner 

that meets the EEO obligations of the contractor. Apprenticeship training programs 

meeting the above criteria do not require formal approval by the State DOT or the 

FHWA Division Administrator. Nonetheless, State DOTs should acknowledge and 

track the use of registered apprenticeship programs. 

d.) Other Training Programs approved, but not necessarily sponsored, by the USDOL or a 

State workforce agency (such as registered apprenticeship programs administered by 

organized labor unions) are also acceptable without formal approval of the State DOT 

or FHWA Division Administrator provided: 

i) The U.S. Department of Labor has clearly approved the program aspects relating to 

equal employment opportunity and the payment of trainee wage rates in lieu of 

prevailing wage rates. 

ii) They are reasonably calculated to qualify the average trainee for journey worker 

status in the classification concerned by the end of the training period. 

iii) They are administered in a manner calculated to meet the equal employment 

obligations of the contractors. 

10)Contractor Efforts to Recruit/Enroll Women, Minority, and Disadvantaged Individuals: 

While the training requirements inserted into contracts or OJT Agreements shall not 

discriminate against any applicant for training, State DOTs must evaluate a contractor’s 

efforts to locate and enroll women, minorities, and disadvantaged individuals to fulfill their 

training obligations. State DOT procedures should ensure that contractor efforts are timely 

and appropriate in consideration of the project scope and the construction phase(s) related 

to the selected training programs. State DOTs should establish a process to engage 

contractors before the start of construction to ensure direct recruitment efforts are 

undertaken in a timely manner and enhanced through OJT supportive services (OJT/SS) 

activities. Collective bargaining agreements do not relieve contractors of their obligation to 

carry out independent recruitment efforts to meet their obligations (See Appendix A to 

Subpart A of Part 230—Special Provisions). Best practices to remove barriers and support 

contractor recruitment efforts include the use of job readiness training programs using 

OJT/SS funding, establishing and promoting the use of a referral network consisting of 

social services programs, and community-based and industry organizations that serve 

women, minorities, and disadvantaged individuals. 

11) Annual OJT Reporting: The regulations found in §230.111(b) established a reporting 

requirement for States DOTs that did not attain their annual training goals during the OJT 

implementation year. However, FHWA’s policy requires all State DOTs to report their 

annual OJT accomplishments, which allows our agency to measure program outcomes. By 

January 30th annually, each State DOT is required to report accomplishments pertaining to 

its most recent implementation year (i.e., calendar, State or Federal fiscal year) ending prior 

to the report submission. For this purpose, an annual OJT Report has been made available 
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in the Civil Rights Connect System (CRCS). The report requires each State DOT to 

describe its accomplishments relative to its annual OJT goal(s). This report also requires 

demographic information for each trainee or apprentice employed pursuant to the OJT 

requirements placed in contracts or OJT agreements during the year. Any State DOT that 

does not achieve its approved annual OJT goal shall provide an explanation reflecting its 

analysis of the reasons why this occurred. The State DOT must sufficiently describe the 

applicable action steps it will take to address these reasons in the following OJT 

implementation year.