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

Competitive Employment

Work centers or community rehabilitation programs (CRPs) will often place a worker with a disability in a competitive employment situation. This is when the worker reports to a business or establishment other than the work center and performs work for that business or establishment.

The work center may provide a “job coach” to supervise the worker, still carry the worker on the work center payroll and continue to provide traditional rehabilitation services to the worker. The worker with a disability may often continue to receive a special minimum wage as a result of the certificate held by the work center. In such situations, the FLSA considers the worker with a disability to be the employee of both the work center and the competitive business. That worker is jointly employed by the rehabilitation facility and by the business where he or she is placed, and both employers are responsible for compliance with the FLSA and ensuring the worker receives the proper compensation.

Coverage for the worker with a disability may be based on either an enterprise or individual basis and may stem from the work center or the competitive employer. If the worker performs any FLSA-covered work for either the work center or the competitive employer, all work performed by that worker during that workweek is covered.

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