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The Payment of Special Minimum Wages to Workers with Disabilities under Section 14(c) of the Fair Labor Standards Act. Wage and Hour Division Employment Standards Administration U.S. Department of Labor DDS Refresher Training East Hartford CT March 4,2011. FLSA Major Provisions .
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Wage and Hour Division
Employment Standards Administration
U.S. Department of Labor
DDS Refresher Training
East Hartford CT March 4,2011
*$7.25 was effective on July 24, 2009
SPECIAL MINIMUM WAGE :
as compared to the wage and productivity of experienced workers who do not have disabilities for the work
Wage and Hour will not assert an employment
relationship for certain vocational rehabilitation
programs if seven criteria are met. All seven
of the criteria must be met.
Vocational explorations: 5 hours*
Vocational assessment: 90 hours*
Vocational training: 120 hours*
* per job experienced
Worker’s wages should be adjusted no later than the first complete pay period following each prevailing wage review.
Don’t forget to document in your records
that the prevailing survey was completed.
29 CFR Part 525.10(g) requires that you record:
not for an entry level position.
Company # of Employees Wage Rate Gross Wages
ABC, Inc. 40 $8.00 $320.00
KLM Co. 17 $8.15 $138.55
XYZ Inc. 25 $8.20 $205.00
Weighted Average: $663.55 ÷ 82 = $8.09207 $8.0921*
* Special Rounding
Simple (straight) Average
Company Wage Rate
ABC, Inc. $8.00
KLM Co. $8.15
XYZ Inc. $8.20
Simple average: $24.35 ÷ 3 =$8.11666
An increase in the federal and/or state minimum wage does have an immediate impact on the prevailing wages paid in the vicinity.
Wage and Hour will mail out written guidance concerning the adjustment of prevailing wages when the federal minimum wage increases.
The Fair Minimum Wage Act of 2007 increases the minimum wage from $6.55 per hour to:
$7.25 per hour on July 24, 2009
(Worker is to be rated at least once every six months)
-An employer may rate a worker only on the job components actually performed by the worker.
-An employer may not penalize a worker because he/she fails to perform, or is incapable of performing, certain component(s) of the job.
-A separate time study does not have to be made utilizing these special modifications.
-If using 9 minutes per hour, the PFD allowance factor should be 1.1765 (60 minutes divided by 51 minutes equals 1.1765).
-If using 10 minutes per hour, the PFD allowance factor should be 1.20 (60 minutes divided by 50 minutes equals 1.20).
THE GOLDEN RULE:
Standard multiplied by piece rate must equal or exceed the prevailing wage rate
The Wage & Hour Division has adopted an enforcement position which allows community rehabilitation programs to remove workers with disabilities who are paid special minimum wages under Section 14(c) from the production area during periods of extended down time and provide them with activities that are not compensable.
Worker(s) must be removed from production area so as not to interfere with others who are still involved in production.
Employer must maintain a record of the time employees spend in non-compensable
-Supervised by non-production personnel
-Are a specific part of well-defined program of rehabilitation
-Typically materials or products are discarded or recycled for future use in work simulation
Recommendation: Carry out to 5 decimal places and round up to 4 places.
-Payroll, time, production records
In the event there is not a voluntary agreement to comply and/or pay back wages, the Wage and Hour Division may:
U.S. Dept. of Labor
Wage & Hour Division
JFK Federal Building, Room 525
Boston MA 0220