Effect of state laws prohibiting the payment of subminimum wages to workers with disabilities on the enforcement of section 14(c) of the Fair Labor Standards Act.

Posted by National Alliance for Fair Contracting on

November 17, 2016
Issued by ADMINISTRATOR DAVID WEIL

This Administrator’s Interpretation provides guidance regarding the impact of state laws that prohibit the payment of subminimum wages to workers with disabilities on the enforcement of section 14(c) of the Fair Labor Standards Act (FLSA). Employers paying subminimum wages to workers with disabilities under a section 14(c) certificate must pay these employees in accordance with both Federal and state laws. The issuance of a certificate under the provisions of section 14(c) of the FLSA does not excuse noncompliance with any state law establishing higher minimum wage requirements.

I. Background

The Secretary of Labor is authorized to administer and enforce section 14(c) of the FLSA, which provides that “to the extent necessary to prevent curtailment of opportunities for employment, [the Secretary] shall” issue certificates permitting employers to pay subminimum wages to workers who have disabilities for the work to be performed. 29 U.S.C. 214(c). The regulations interpreting FLSA section 14(c) explain the certificate application process and the requirements for payment of subminimum wages under a certificate. See 29 CFR part 525.1 Subminimum wage rates permitted by section 14(c) must be based on the prevailing wage for the job and must be commensurate with the worker’s productivity as compared to the productivity of an experienced worker who is not disabled for the work to be performed. Under contracts with the Federal Government subject to the McNamara-O’Hara Service Contract Act (SCA) and the Walsh-Healy Public Contracts Act (PCA), employers with section 14(c) certificates are permitted to pay wages that are lower than the applicable prevailing wage under the contract to workers who have disabilities for the work to be performed.

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US DEPARTMENT OF LABOR SIGNS AGREEMENT TO PROTECT WORKERS FROM MISCLASSIFICATION WITH SOUTH DAKOTA DEPARTMENT OF LABOR AND REGULATION

Posted by National Alliance for Fair Contracting on

WHD News Brief: 06/01/2016
Release Number: 16-1055-NAT
Participants: U.S. Department of Labor’s Wage and Hour Division
South Dakota Department of Labor and Regulation

Partnership description: The U.S. Department of Labor’s Wage and Hour Division and the South Dakota Department of Labor and Regulation signed a three-year Memorandum of Understanding intended to protect employees’ rights by preventing their misclassification as independent contractors or other non-employee statuses. The two agencies will provide clear, accurate, and easy-to-access outreach to employers, employees, and other stakeholders, share resources, and enhance enforcement by conducting joint investigations and sharing information consistent with applicable law.

…

Quotes: “The Wage and Hour Division continues to attack this problem head-on through a combination of a robust education and outreach campaign, and nationwide, data-driven strategic enforcement across industries,” said David Weil, administrator of the Wage and Hour Division. “Our goal is always to strive toward workplaces with decreased misclassification, increased compliance, and more workers receiving a fair day’s pay for a fair day’s work.” David Weil, U.S. Department of Labor Wage and Hour Division Administrator

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Labor Department Sharpening Focus on Misclassification

Posted by National Alliance for Fair Contracting on

Wednesday, November 19, 2014
By K. W. Mitchell

In combating employee misclassification, the Labor Department is taking strategic misclassification enforcement to the next level by placing greater priority on measures that are tactical and swift, a department official said.

“To carry out our job, we must be prudent and strategic in our enforcement actions,” said David Weil, administrator of the Labor Department’s Wage and Hour Division.

“We need to create ripple effects that impact compliance far beyond the workplaces where we physically conduct investigations, or the organizations to which we provide outreach directly,” Weil said Oct. 31 in a blog post.

Additionally, the division needs to be persistent in discovering ways to “make our investigation of one employer resonate throughout that particular sector and influence the behaviors of employers across that entire industry, to promote compliance across networks of business organizations,” Weil said.

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