Free money to hire felons!
In practice, nationwide, about 90% of the conversation revolves around three programs.
A manufacturing company, warehouse, logistics firm, staffing agency, construction contractor, or healthcare support employer can often stack all three simultaneously on the same hire if the worker qualifies through the workforce system.
Work Opportunity Tax Credit (WOTC)
- Value
- $2,400-$9,600
- Type
- Federal Tax Credit
- Agency
- IRS / US Department of Labor
- Who Qualifies
- Individuals convicted of a felony and hired within 1 year of conviction or release from incarceration
- Requirements
- Complete IRS Form 8850 on or before job offer date
- Submit certification paperwork within 28 days of hire
- Employee must work at least 120 hours in first year
Federal Bonding Program (Bonds4Jobs Ohio)
- Value
- $5,000 in bond coverage for first 6 months
- Can be increased in some situations
- Type
- Free fidelity insurance
- Agency
- US Department of Labor
- Who Qualifies
- Justice-involved individuals and other “at-risk” applicants
- Requirements
- Employer must have a bona fide employer-employee relationship
- Bond must be arranged before first day of work
- Payroll taxes must be properly withheld
Workforce Innovation & Opportunity Act (WIOA) / On-the-Job Training
- Value
- Reimburses 50-75% of wages during training period
- Type
- Wage Reimbursement
- Agency
- US Department of Labor
- Who Qualifies
- May include justice-involved individuals referred through workforce programs
- Requirements
- Employer must provide structured training plan and retain employee after training period when feasible
Apprentice Ohio / Workforce Grants
- Type
- Training reimbursement
- Value
- $1000s per trainee
- Who Qualifies
- Employer participating in approved apprenticeship or workforce programs
- Requirements
- Must participate in approved training/apprenticeship program
*Incentives applicable in Ohio*