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Wage and Hour Division (WHD)

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FOH Field Operations Handbook
Chapter 64 Employment of Workers with Disabilities at Special Minimum Wages under Section 14(c)
Section 64h Concluding Activities

Section 64h01: Disposition of Findings and Section 14(c)

  • As with all investigations, a final conference will be held with the Section 14(c) employer in accordance with current guidelines. INVs will provide employers found in violation with a copy of Regulations 29 CFR Part 525 and record this in the disposition section of the narrative report.
  • When a section 14(c) employer agrees to comply and to pay the back wages found due, the INV should complete the case action following standard procedures while keeping in mind the special reporting requirements discussed below.
  • When a facility refuses to comply and/or refuses to pay the BWs, the District Director (DD) or the Assistant District Director (ADD), along with the Regional Section 14 Team Leader and Regional Administrator (RA), will determine what further action is appropriate in the particular circumstance. Possible courses of action include a second-level conference, notification under section 16(b) and section 14(c)(5), initiation of "hot goods" actions, revocation of certificate, and/or referral to the SOL for litigation. The SOL shall be consulted regarding the issuance of any letter of findings (see FOH 64h01(e)(4)).
  • If a facility refuses to comply or pay SMW BWs under the SCA, PCA, and/or CWHSSA, the DD/ADD should consider withholding and/or debarment action and follow the instructions set forth in the appropriate sections of the FOH.
  • Notifying employer of investigation findings.
    1. No violations found: At the conclusion of each investigation in which no violations were disclosed (FLSA, SCA, PCA, CWHSSA), the DD or ADD shall send a notification letter to the director of the facility and send a copy to the president/chairman of the board of directors. Individual copies of the notification letter shall be placed in the case file, forwarded to the Regional Section 14 Team Leader, and to the Certification Team in the Midwest Regional Office.
    2. FLSA violations found: At the conclusion of each FLSA investigation in which violations were disclosed involving workers paid an SMW and future compliance was assured, a notification letter (also known as a "letter of findings") - signed by the DD/ADD - detailing the investigative findings shall be forwarded to the director of the facility and a copy will be sent to the president/chairman of the board of directors. The letter shall state and explain any violations discussed during the final conference. If additional violations are charged after the final conference, the reasons for these violations and how they were substantiated shall also be stated in the letter. The facility's statements regarding future compliance shall be restated in the letter and, if appropriate, a request shall be made to the facility to submit to the DO, within 30 days of the date of the notification letter, a written statement reflecting how it has achieved compliance. Individual copies of the notification letter shall be placed in the case file, forwarded to the Regional Section 14 Team Leader, and forwarded to the Certification Team in the Midwest Regional Office. See FOH 64k02(b) for information regarding the format to be used when preparing letters of finding and an example.
      • DD's are encouraged to combine this letter with the with the standard confirmation letter which is sent to the firm to confirm coverage, the agreement of compliance, agreement for paying back wages, the date BW payments are due and provide the background for assessing CMPs for any violations of section 6 and/or 7 that may be found in future investigations.
      • When CMPs will be assessed for violations of section 6 and/or 7, separate confirmation letters (letters of findings) and CMP assessment letters shall be issued when the violations involve workers with disabilities paid SMWs.
    3. SCA/PCA/CWHSSA violations found: At the conclusion of each investigation in which violations of the SCA, PCA and/or CWHSSA were disclosed and future compliance was assured, the employer will be notified by letter (signed by the DD/ADD) stating the investigative findings. The letter shall be forwarded to the director of the facility and to the president/chairman of the board of directors. Individual copies of the above letter shall be placed in the case file, forwarded to the Regional Section 14 Team Leader, and to the Certification Team in the Midwest Regional Office. Note: If, in the above situation, violations of FLSA section 6 and/or 7 also occurred, contact the Regional Section 14 Team Leader prior to preparing the employer notification letter. Standard procedures regarding the notification of contracting agencies shall be followed.
    4. Violations discovered (FLSA/SCA/PCA/CWHSSA) and future compliance not assured: DDs shall consult with the Regional Section 14 Team Leader and the SOL, through appropriate channels, prior to issuing any letter of findings when the employer has not agreed to come into compliance.
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