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Wage and Hour Division

Wage and Hour Division (WHD)


FOH Field Operations Handbook
arrowChapter 64 Employment of Workers with Disabilities at Special Minimum Wages under Section 14(c)
arrowSection 64e Section 14(c) Investigation Procedures and Considerations

Section 64e00: General

  • Standard investigative procedures should be followed in all investigations of community rehabilitation programs, hospitals or institutions, and business establishments employing workers with disabilities except where modified or superseded by instructions in this chapter. Unless stated otherwise below, the following instructions apply equally to investigations of rehabilitation facilities, hospitals or institutions, and business establishments.
  • The objective of a section 14(c) investigation is to determine if:
    1. The employer is in compliance with the provisions of the laws enforced by WH.
    2. The employees paid SMWs have disabilities for the work performed.
    3. The workers with disabilities are paid commensurate wages.
    4. The employer is in compliance with the terms and conditions of the SMW certificate.
    5. The employer requires any assistance to ensure continued compliance with the provisions of the FLSA.
  • Experience has demonstrated that the most common violations found during section 14(c) investigations include:
    1. Failure to use proper sources when conducting a prevailing wage survey.
    2. Failure to properly document the prevailing wage survey and to maintain that documentation.
    3. Failure to obtain the experienced rate when conducting prevailing wage surveys.
    4. Failure to determine prevailing wage rates at a minimum of once a year.
    5. Failure to adjust prevailing wage rates after a minimum wage increase.
    6. Failure to adjust piece rates and hourly rates as a result of adjustments/changes to the prevailing wage.
    7. Failure to evaluate hourly paid workers with disabilities on a timely basis and/or failure to timely adjust the hourly rates after the employee is evaluated.
    8. Payment of a blanket "training wage" or "training rate" rather than basing pay on the commensurate wage (see FOH 64g07(a)(2)b).
    9. Using behavioral standards when conducting quantity and/or quality evaluations of hourly paid workers (see FOH 64g05(d)).
    10. Rounding errors in time studies and when computing the commensurate wages, for example, where the piece rate multiplied by the standard units per hour fails to yield at least the prevailing wage rate.
    11. Inadequate time studies, such as failure to include irregular elements (like equipment failure or depletion of needed supplies).
    12. Failure to insure the worker has a disability for the work being performed, or failure to maintain and/or provide documentation to support that the worker has a disability for the work he or she performs.
    13. Failure to count all hours worked.
    14. Failure to pay full fringe benefits for work on SCA contracts.