Using MFIP benefits as hourly salaries for work experience.

Counties and Employment Service Providers may develop a grant diversion program.

· All or part of the cash portion of the MFIP grant is diverted to an employer to subsidize employment for participants as an alternative to public assistance payments.

· Employment services funds can also be used to subsidize the Grant Diversion Payment.

· Employer must compensate participants in Grant Diversion at the same rates, including periodic increases, as similarly situated employees or trainees and in accordance with applicable law, but never less than the federal or state minimum wage, whichever is higher.

· Grant diversion may last up to 9 months during which time the participant continues to be an MFIP participant.

· Placement with an employer is for the purpose of training and employment with the understanding that the same employer has agreed to retain the person upon satisfactory completion of training.

· Placement of any participant in a Grant Diversion subsidized training position must be compatible with the participant’s assessment and Employment Plan.

· If a county or tribe were to decide to run a grant diversion project, detailed information would need to be provided about:

· Placements.

· Calculation of participant hours.

· Participating employers.

· Other necessary information.

Approval by the State is required for any grant diversion program before it is implemented.