Thursday, September 8, 2016

Section 511:Limitations on Subminimum Wage

On July 22, 2014, Congress passed the Workforce Innovation and Opportunity Act (WIOA), which amended several provisions of Rehabilitation Act of 1973 (Rehab Act). Among those changes, WIOA added Section 511 to the Rehabilitation Act that prohibits entities that hold special wage certificates under 14(c) of the Fair Labor Standards Act (FLSA) from employing individuals with disabilities at sub-minimum wage unless certain conditions are met. Effective July 22, 2016, a 14(c) entity cannot employ individuals with disabilities who are age 24 or younger, or continue to employ individuals with disabilities at a subminimum wage rate regardless of their age, unless the 14(c) entity has received documentation that the individuals with disabilities have completed certain requirements. 

Section 511 describes various responsibilities of individuals with a disability, 14(c) entities, local or State educational agencies, and designated State units (DSU) in completing and documenting these service-related requirements. 

Section 511 does NOT: change the purpose of the Rehabilitation Act, promote subminimum wage employment, eliminate sheltered workshops or eliminate subminimum wage. 

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