DINAP BULLETIN 96-14
New Minimum Wage Rates for JTPA Programs
To provide guidance on the 1996 Amendments to the Fair Labor Standards Act (FLSA), including the Minimum Wage Increase Act of 1996.
Reference. Section 6(a)(1) of the Fair Labor Standards Act of 1938, as amended. Section 6 of the Fair Labor Standards Amendments of 1996. Job Training Partnership Act, as amended, Section 142(a)(2) and (3). DINAP Bulletin No. 90-28. Background. The amendments to the Fair Labor Standards Act (FLSA) became effective October 1, 1996. Guidance The FLSA amendments must be viewed in terms of the legal requirements of the Job Training Partnership Act (JTPA). A. The new "Opportunity Wage" does not apply to the JTPA. Based on the JTPA statutory requirements at section 142(a)(2) and (3), there is no current authority to allow the use of the new "Opportunity Wage" in the JTPA program. Therefore, JTPA grantees may not pay a sub-minimum wage. This will be the case for all JTPA programs including the Summer Youth programs under title II- B. B. The "Minimum Wage Increase" provision under the amendments to FLSA, does apply to participants enrolled in programs operated under the JTPA. Effective on October 1, 1996, the amendments required that not less than $4.75 an hour must be paid for employment under the JTPA and not less than $5.15 an hour beginning September 1, 1997. Action. Grantees are to implement the new Federal minimum wage when and as applicable. If a State-imposed minimum wage is applicable, and is higher than the Federal minimum wage, then the higher (State) standard applies. Questions. Contact your DINAP Federal Representative.
All Indian and Native American Grantees
Thomas M. Dowd Chief Division of Indian and Native American Programs Anna W. Goddard Director Office of Special Targeted Programs