Program Overview

ETP is a business and labor-supported state agency that funds the costs of vocational training. ETP is governed by an 8 member Panel. ETP is funded by a tax on employers, collected alongside the Unemployment Insurance tax. ETP receives no General Fund support.

• The program is funded by the Employment Training Tax paid by California employers, and targets firms threatened by out-of-state competition or who compete in the global economy.
• The program is performance-based. Employers must provide proof that training hours have been completed and trainees have been retrained in well-paying jobs for a specific period of time at a specified wage before ETP reimburses payment.
• Since its inception in 1982, ETP has reimbursed employers well over $1 billion for training workers in more than 80,000 businesses.
• For Incumbent Worker training, employers contribute to the cost of training. ETP also funds training for unemployed workers
• ETP provides additional incentive to assist small businesses and employers in high unemployment areas of the State.