Section 405.5 - Grant diversion(a) Public assistance recipients who have not secured unsubsidized employment may be placed in subsidized employment with any employer approved by the department. The department may convert the cash assistance and food stamp assistance of participating recipients and their dependents, if any, into subsidies for participating employers if the department determines it is cost effective to do so.(b) Employers may be reimbursed as follows: (1) In the first six months of a recipient's employment, the employer reimbursement may be equal to the lesser of: (i) the total of the recipient's cash assistance plus food stamp assistance; or(ii) fifty percent of the employer's share of Social Security taxes, unemployment insurance and worker's compensation premiums, paid on behalf of the recipient and the wages paid to the recipient up to the State minimum wage.(2) In the next six months of a recipient's employment, the employer reimbursement may be equal to the lesser of: (i) the total amount of the recipient's cash assistance plus food stamp assistance; or(ii) twenty-five percent of the employer's share of Social Security taxes, unemployment insurance and worker's compensation premiums, paid on behalf of the participating recipient, and the wages paid to the recipient up to the State minimum wage.(c) Program recipients are considered probationary employes for the employer's established probationary period for new hires performing the same or similar work. Thereafter, the recipient will be considered a permanent hire.(d) Each employer who participates in the subsidized employment project shall, as a minimum: (1) Pay all participating recipients a wage rate that is at least equal to the rate established by the employer for an employe with similar background, training or experience who is performing the same or similar work. Nothing in this clause shall grant an employer the right to pay a participating recipient less than the State minimum wage.(2) Not discriminate against participating recipients in any benefits provided to other new employes. The department shall ensure that there is no duplication of benefits.(3) Schedule recipients for a minimum of twenty hours per week of work.(4) Sign a worksite contract outlining the specific job offered to the recipient and agreeing to abide by all requirements of the program. While the worksite contract shall ensure the recipient's fair treatment and safety, the paperwork which is to be completed by the employer shall be kept to a minimum.(5) Not have any other individual on layoff from the same or any substantially equivalent job, and not have terminated any regular employe or otherwise reduced its work force with the intent of filling the position with a recipient.(e) The department shall maximize the use of Federal grants and apportionments of the cash assistance program, the food stamp program, employment-related child care, and the programs under the Job Training Partnership Act ( Public Law 97-300.96 Stat. 1322) and any other Federal or private funding sources to support this subsidized employment program.(f) The program will be administered and operated by the department, which will solicit vendors to provide the local operation, administration and case management for the program. The program shall be available Statewide.(g) Recipients eligible for enrollment in this program must be receiving cash assistance at the time of enrollment.(h) The maximum number of recipients to be placed with any single employer shall be limited to one recipient for employers with fewer than ten employes and to ten percent of an employer's total number of employes for employers with more than ten employes. The department may exceed these limits for employers that demonstrate a long-term commitment to the successful integration of recipients into the labor force by continuing to employ participating recipients for at least one year after the grant diversion subsidy payments cease.(i) An employer may terminate the employment of a participating recipient at any time. The department may deem ineligible for participation in the grant diversion program any employer that consistently terminates the employment of participating recipients during or soon after the end of the grant diversion period.1967, June 13, P.L. 31, No. 21, art. 4, § 405.5, added 1996, May 16, P.L. 175, No. 35, § 7, effective 10/1/1996.