(1) This section applies to an entity that provides paid work experience to an individual participating in a workforce program that is funded in whole or in part by the following sources:

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(a) State funds that are allocated to and made available for reallocation by local workforce development boards to the entity for workforce programs.

(b) Funds allotted to the state pursuant to the federal Workforce Innovation and Opportunity Act that are allocated to and available for reallocation by local workforce development boards to the entity for workforce programs in accordance with the federal Workforce Innovation and Opportunity Act.

(2)(a) An entity described in subsection (1) of this section shall:

(A) Notwithstanding ORS § 653.025, pay wages to individuals participating in the program at a rate that is:

(i) Equivalent to an entry-level training wage as determined by the entity pursuant to paragraph (b) of this subsection; and

(ii) In alignment with the wage progression schedule established by the entity under subparagraph (B) of this paragraph;

(B) Establish a wage progression schedule that includes the step progression requirements and the rate calculation formula upon which the entity shall make determinations about a participating individual’s eligibility to increase the individual’s wage rate from an entry-level training wage to a wage rate that is equivalent to the average area wage standard for an hour’s work in the same trade or occupation in the locality where the labor is performed;

(C) Develop a training plan for individuals participating in the program that includes, at a minimum:

(i) The entry-level training wage that will be paid to the individual;

(ii) A statement that the individual shall be paid according to the wage progression schedule established by the entity, along with a description of the requirements that the individual must meet in order to progress to a higher wage rate under the wage progression schedule;

(iii) A statement that the entry-level training wage paid to the individual may not be less than the federal minimum wage rate or the applicable state minimum wage rate, whichever is greater; and

(iv) A statement explaining that the entry-level training wage paid to the individual is a minimum standard and that a higher wage rate shall be paid to the individual if so required under other applicable federal or state laws, regulations or a collective bargaining agreement; and

(D) Provide each individual participating in the program with a copy of the training plan described in subparagraph (C) of this paragraph on the date on which the individual first begins participating in the program.

(b) For purposes of paragraph (a)(A) of this subsection, the entry-level training wage shall be a percentage amount of the average area wage standard for an hour’s work in the same trade or occupation in the locality where the labor is performed, but in no event may the entry-level training wage be less than the applicable state minimum wage rate under ORS § 653.025.

(c) Each individual who performs work for an entity described in this section shall be considered an employee of the entity for purposes of state wage and hour laws and state laws prohibiting employment discrimination and retaliation. [2023 c.343 § 2]