BATON ROUGE, La. (WAFB) - As the fiscal year turned over on June 30, the deadline for IBM to hire 225 employees in exchange for state and local tax breaks expired. The company now has 60 days to report its final employment numbers to the state.
If it falls short of its goal, the tech giant will have to pay a fine.
IBM signed a contract with the state in 2013 to locate offices in downtown Baton Rouge in exchange for $147 million in state and local tax breaks over 17 years. As part of the deal, IBM promised to fill 800 jobs by 2017.
When IBM fell short of that goal, state leaders re-negotiated the deal and offered the company a two-year extension, with the threat of steeper penalties for any unfilled positions.
For the 2017-2018 fiscal year, IBM exceeded expectations by hiring 3 more employees than the amended contract required. They had until June 30, 2019 to hire the remaining 225 employees and meet the final, 800-job goal.
Over the year, IBM launched a new apprenticeship program and hosted job fairs in an effort to find more potential employees.
The company has until late August to produce a final tally. If it falls short of the 800-job quota, they’ll have to pay a $10,000 fine for every position that remains unfilled.