1825 Subsidized Employment General Requirements

Georgia State Seal

Georgia Division of Family and Children Services
TANF Policy Manual

Policy Title:

Subsidized Employment General Requirements

Effective Date:

January 2020

Chapter:

1800

Policy Number:

1825

Previous Policy Number(s):

MT 30

Updated or Reviewed in MT:

MT-53

Requirements

Subsidized employment is a countable work activity available to an assistance unit (AU) member with mandatory work requirements.

Basic Considerations

Subsidized Employment

Subsidized employment is employment for which the employer receives a subsidy from TANF or other public funds to offset some or all of the wages and costs of employing a TANF recipient.

A subsidized employment placement is intended to:

  • encourage an employer to provide a job opportunity to an individual whose work history may be deficient but who appears to be job-ready,

  • provide monetary compensation to an employer for providing the recipient with an opportunity to work.

Placement is defined as the date on which the client enters subsidized employment.

The subsidized employment can be:

  • public sector employment, or

  • private sector employment.

Subsidized employment programs are implemented in one of the three categories:

  1. TANF Funds

    Placement of TANF recipients in private or public sector employment for which the employer receives a subsidy from TANF or other public funds.

    The subsidy can be paid through TANF grant diversion or cash reimbursement.

  2. Private For-profit Third-party Contractor/Vendors

    Placement of TANF recipients in private or public sector employment by a private, for-profit third-party contractor/vendor who serves as the employer of record during the subsidized period of employment of TANF participant.

    A predetermined fee is paid to the third-party vendor/staffing agency, to cover salary, extra expenses and success in placing TANF recipients.

    Refer to 1827 Subsidized Employment Cash Reimbursement of the policy manual for details.

  3. Supported Work Program

    Subsidized employment in an integrated setting for recipients with disabilities with wages consistent with those paid to non-disabled workers with similar job functions. This program can be public or private sector subsidized employment.

Subsidized Employment Agreement

A subsidized employment contract is negotiated with an employer for a maximum period of six months for each participant.

The Subsidized Employment Agreement (SEA) must be completed prior to the beginning of the participation period. The SEA must be approved in writing by the case manager’s supervisor.

The written agreement must specify the following:

  • beginning date of employment

  • hourly wage

  • number of hours of work scheduled per week

  • the months for which the subsidy will be paid by DFCS

  • the amount of the subsidy

  • the reimbursement dates.

Premature Termination of Subsidized Placement

If the subsidized employment placement ends prior to the date agreed upon in the SEA, the employer will be paid for the days worked by the client during the last calendar month of employment.

The amount of cash reimbursement or benefit diversion due to the employer is determined by dividing the reimbursement /diversion amount by thirty days, arriving at a daily rate, and multiplying the daily rate by the number of days worked by the client in the final month of employment.

An AU is subject to sanction if the AU member participating in subsidized employment fails to participate after having been referred to an employer.

The voluntary quit policy and ineligibility period must be reviewed before the AU is approved for TANF.

The amount of the cash percentage or TANF benefit diverted to the employer is fixed beginning with the month of placement in subsidized employment. The amount remains unchanged for the duration of the client’s participation in the activity. The employer receives the same amount of cash reimbursement or cash assistance diversion for each month in which the client participates in subsidized employment.

Fixed TANF Benefit Amount

If the ongoing benefit amount changes because of a change in the AU’s size and the change are known prior to the subsidized employment contract being finalized, then the new cash assistance amount is the amount to be diverted to the employer