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elaws - employment laws assistance for workers and small businesses - FLSA Section 14(c) Advisor

Measuring Quality and Quantity When Determining the Commensurate Wage for Hourly Paid Employees Under FLSA Section 14(c)

Employers of workers with disabilities who receive special minimum wages on an hourly basis must periodically evaluate the on-the-job productivity—in terms of quantity of production and quality of production—of each worker with a disability.

Both the minimum acceptable standards for quantity—how much work must be done within a predetermined time period—and quality—how well the work must be performed—must be fully described before the standard is set. The following are two of the more common methods that employers can use to ensure that they take both quantity and quality of work into consideration when computing hourly commensurate wages:

  • Rework. Rework is perhaps the simplest method of evaluating the performance of workers from both a quality and quantity standpoint. It requires that both the standard setter (the worker who does not have a disability) and the worker with the disability be individually timed performing the identical work until each has met the minimum acceptable levels of quantity and quality.

  • 90/10 Rating. Although not required by the regulations, one method of measuring quality that the Wage and Hour Division has accepted when determining an hourly commensurate rate is a technique known as the 90/10 rating. Various forms have been created by employers and interested parties that assist them in performing the 90/10 Rating. Although the Wage and Hour Division has not officially reviewed and approved any of these forms, it accepts their use when properly completed.

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FLSA Section 14(c) Advisor | Wage and Hour Division