1. (a) The Panel shall fund training for employment that is stable. The employer's turnover rate shall not exceed 20% annually for the company facility where training is being requested. If the employer crosses this 20% threshold, the Panel may accept a higher turnover rate, but only if:

   1. (1) the employer provides evidence that the proposed training will significantly decrease the turnover rate, or
   2. (2) the employer has experienced a singular reduction in force or other occurrence which adversely affected the turnover rate in the last calendar year, or
   3. (3) industry data supports a higher turnover rate.

2. (b) Even if the Panel accepts a higher turnover rate, it may impose a turnover penalty. Said penalty will be imposed if the employer exceeds a trigger rate to be determined by the Panel on a case-by-case basis as a condition of funding, taking into account the factors in subsection (a). The trigger rate will be applied to turnover as measured in the 12-month period preceding termination of the contract.

   By way of penalty, the employer will not earn the final 25% payment which would otherwise be due under the agreement if all other terms are met. This penalty will be applied at the time of fiscal closeout for the training project as a whole.

3. (c) Turnover is calculated as follows:

   1. (1) The number of full-time workers who separated from their jobs during the last calendar year divided by the average number of full-time workers employed during that same period of time at the same company site(s).

   2. (2) The following types of employment separations shall be included in the number separating during the year:

      1. (A) Quits but for “voluntary quits” determined ineligible for Unemployment Insurance (UI) benefits by the Employment Development Department (EDD)
      2. (B) Layoffs of more than 30 days
      3. (C) Discharges for cause
      4. (D) Discharges without cause

   3. (3) The following types of separation shall be excluded:

      1. (A) Layoffs of 30 days or less
      2. (B) Workers on strike
      3. (C) Outside consultants and contractors
      4. (D) Workers from temporary help agencies
      5. (E) Seasonal Workers
      6. (F) Deaths
      7. (G) Transfers to another company facility
      8. (H) Permanent separations due to disability
      9. (I) Retirements

Note: Authority cited: Section 10205(m), Unemployment Insurance Code. Reference: Section 10200(a)(3), Unemployment Insurance Code.

History

1. New section filed 4-14-95; operative 4-14-95 pursuant to Government Code section 11343.4(d) (Register 95, No. 15).

2. Amendment of subsections (a), (a)(1), (a)(2)(G) and Note filed 7-19-96; operative 7-19-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 29).

3. Repealer of subsections (a)(2)(D) and (a)(2)(F)-(H), subsection relettering, new subsections (a)(3)(E)-(I) and amendment of Note filed 9-27-2005; operative 9-27-2005 pursuant to Government Code section 11343.4 (Register 2005, No. 39).

4. Amendment filed 2-15-2011; operative 3-17-2011 (Register 2011, No. 7).