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Background: The SCSEP Regulations at 20 CFR 641.311, Enrollee Wages and Fringe Benefits, require that enrollees be paid the higher of the Federal, State or local minimum wage, or the prevailing rates of pay for persons employed in similar public occupations by the same employer. On September 1, 1997, the Federal minimum wage was increased to $5.15 an hour. The new Federal minimum hourly rate applies to all States and territories except American Samoa, Palau, and the Northern Mariana Islands. Action: All SCSEP enrollees should be paid in accordance with the Fair Labor Standards Act. Except as noted above, the Act requires that the new Federal minimum wage of $5.15 be paid effective September 1, 1997. Where other provisions may require a higher minimum wage, the higher standard applies. Effective Date: September 1, 1997.

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References: Older Worker (OW) Bulletin No. 93-10; August 26, 1997 Federal Register Notice published by the Department of Health and Human Services (DHHS); August 26, 1997 Federal Register Notice published by the Social Security Administration (SSA). Background: The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA), (commonly known as "welfare reform"), was enacted on August 22, 1996. Section 403 of PRWORA provides that most qualified aliens who enter the United States (U. S.) on or after enactment of that legislation are barred from eligibility for "Federal means-tested public benefits" for 5 years, beginning on the date the individual entered the U. S. with a qualified alien status. In response to inquiries concerning the applicability of this provision to SCSEP, the Department has informally directed attention to Section 511 of the OAA, Treatment of Assistance. OW Bulletin 93-10 previously made the same point, quoting Section 511: Assistance furnished under this title shall not be construed to be financial assistance described in section 245A (h) (1) (a) of the Immigration and Nationality Act (8 U.S.C. 1255a (h) (1) (A)). Based on this language , the Department concluded that SCSEP was not a "Federal means-tested public benefits" program as construed in Section 403 of PRWORA. Federal Register Notices: On August 26, DHHS and SSA published Federal Register Notices containing interpretations of the term "Federal means-tested public benefits." In addition, DHHS Acting Principal Deputy Assistant Secretary for Aging William F. Benson wrote to clarify that "all qualified aliens, regardless of when they entered the U. S., continue to be eligible to receive assistance and services under the Older Americans Act programs administered by the Administration on Aging . . . ." Policy: This is to clarify that it is Department of Labor policy that all qualified aliens, regardless of when they entered the U. S., continue to be eligible to receive assistance and services under OAA programs administered by the Department, namely SCSEP, if they meet other program requirements. Senate Appropriations Committee Concerns: Language from the Committee Report is relevant to this issue as well. The Report states: The Committee is concerned about the impact of welfare reform on indigent elderly legal immigrants who face the loss of Supplemental Security Income (SSI). Current law states that title V funds should be targeted to eligible individuals with the greatest economic need. The Committee believes that within the Title V Community Service Employment for Older Americans, special attention should be paid to providing community service jobs for elderly legal immigrants where possible. Action: SCSEP sponsors are requested to provide the information contained herein to appropriate staff and subgrantees.

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