Beginning January 1, 2020, the Executive Order 13658, Raising the Minimum Wage for Contractors, minimum wage rate is increased from $10.60 per hour to $10.80 per hour. This Executive Order minimum wage generally must be paid to workers performing work on or in connection with covered contracts and includes workers with disabilities whose wages are calculated pursuant to certificates issued under section 14(c) of the Fair Labor Standards Act (FLSA). Additionally, beginning January 1, 2020, tipped employees performing work on or in connection with covered contracts generally must be paid a minimum cash wage of $7.55 per hour. Please see the Executive Order Final Rule Website for more information on the Executive Order, including Fact Sheet: Raising the Minimum Wage for Workers with Disabilities under Executive Order 13658 for specific information on the impact of the Executive Order on covered section 14(c) certificate holders and workers.
- On February 15, 2019, WHD published three documents related to the payment of subminimum wages under section 14(c).
- The first is Field Assistance Bulletin (FAB) No. 2019-1 concerning the definition of subminimum wages under section 511 and WHD’s enforcement of the limitations on the payment of those wages under section 14(c).
- The second is a revised Fact Sheet #39H: The Workforce Innovation and Opportunity Act and Limitations on Payment of Subminimum Wages under Section 14(c) of the Fair Labor Standards Act. The revisions include information on the definition of subminimum wages and timing requirements under section 511, as well as two charts to provide visual summaries for determining when and to whom the specific section 511 requirements apply. The Fact Sheet also cross-references readers to the related regulations issued by the U.S. Department of Education.
- The third document is Fact Sheet #39I: Adjusting Commensurate Wage Rates under a Section 14(c) Certificate After a Change in the Minimum Wage, providing guidance to certificate holders on taking appropriate action to ensure prevailing wage rates are timely examined and adjusted, and the workers’ commensurate wage rates correspondingly adjusted, as needed, when there is an increase in the federal, state, or a locality’s minimum wage requirements.
The U.S. Department of Labor’s Wage and Hour Division (WHD) has launched a new online tool that allows employers to electronically submit their applications for certification to employ workers under section 14(c) of the Fair Labor Standards Act (FLSA). This new online application interactively guides users through the information needed to complete their applications, submits the application directly to DOL, and provides users with a PDF copy of their submission.
The online tool eliminates the need to submit paper applications and offers the added speed and security of online submission. Users who prefer to submit paper applications by mail may continue to do so.