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

Competitive Business Establishment Certificates Issued Under FLSA Section 14(c)

A business establishment(not a work center or a hospital/residential care facility) that chooses to employ workers with disabilities at special minimum wages (SMWs) must also obtain a certificate from the U.S. Department of Labor Wage and Hour Division. Such certificates are obtained by submitting an application (WH-226) and the required supplemental sheet (WH-226A).

If the employer has multiple establishments, a certificate must be obtained for each establishment in which workers with disabilities will be employed at SMWs. However, if an individual with a disability is placed at a business by a work center, is supervised by work center staff, and is carried on the work center’s payroll, the business establishment need not obtain a certificate. The authorization to pay a SMW to the worker will stem from the certificate held by the work center. Such placements are sometimes called “supported employment” or “enclave” worksites.

Business establishment certificates remain in effect for only one year.

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