Sec. 558. Employment of individuals with disabilities at wages below minimum wage
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Title V (29 U.S.C. 791 et seq.) is amended by adding at the end the following: An entity, including a contractor or subcontractor of the entity, may not employ an individual with a disability at a wage (referred to in this section as a subminimum wage ) that is less than the Federal minimum wage, unless the entity has complied with the requirements of section 14(c) of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 214(c) ), and any of the following additional conditions is met:
The individual is currently employed, as of the effective date of this section, by an entity that holds a valid certificate pursuant to section 14(c) of the Fair Labor Standards Act of 1938 (referred to in this section as a certificate holder ). The individual is older than age 24 on the date when the individual begins employment at a subminimum wage. The individual is age 24 or younger and, before beginning work at a subminimum wage, has completed, and produces documentation indicating completion of, each of the following 3 actions:
The individual has received pre-employment transition services that are available to the individual under section 114, or transition services under the Individuals with Disabilities Education Act ( 20 U.S.C. 1400 et seq. ) such as transition services available to the individual under section 614(d) of that Act (20 U.S.C. 1414(d)). The individual has applied for vocational rehabilitation services under title I, with the result that— the individual has been found ineligible for the services pursuant to that title; or the individual has been determined to be eligible for vocational rehabilitation services; the individual has an individualized plan for employment under section 102; the individual has been working toward an employment outcome specified in such individualized plan for employment, with appropriate supports and services, for a reasonable period of time without success; and the individual's vocational rehabilitation case is closed after the individual's qualified vocational rehabilitation counselor and the individual both agree that continued efforts by the individual to work toward an employment outcome, as defined in section 7, at the present time will likely not be successful.
The individual (with, in an appropriate case, the individual's parent or guardian)— has been provided career counseling, and information and referrals to Federal and State programs and other resources in the individual's geographic area that offer employment-related services and supports designed to enable the individual to explore, discover, experience, and attain competitive integrated employment; understands the conditions under which a subminimum wage may be paid; and consents to work for the employer and be paid a subminimum wage.
The individual, regardless of age, is receiving work readiness or job training services provided by a certificate holder, as part of the individual's preparation for competitive integrated employment, for— a period of not more than 6 months; or a longer period, if the individual wishes to continue to receive such services after an initial 6-month period and is reassessed by the agency referring the individual for such services, or an appropriate entity, not less often than every 6 months, to determine the individual's ability to transition to competitive integrated employment.
Nothing in subsection (a)(3)(B) shall be construed to prohibit a designated State unit from allowing an individual to receive work readiness or job training services provided by a certificate holder, for a period of not more than 6 months. Nothing in this section shall be construed as changing the purpose of this Act described in section 2(b)(1), to empower individuals with disabilities to maximize opportunities for competitive integrated employment. The entity described in subsection
(a)may not continue to employ an individual at a subminimum wage unless, after the individual begins work at that wage, at the intervals described in paragraph (2), the individual (with, in an appropriate case, the individual's parent or guardian)— is provided career counseling, and information and referrals described in subsection (a)(3)(C)(i), delivered in a manner that facilitates independent decisionmaking and informed choice, as the individual makes decisions regarding employment and career advancement; and is informed by the employer of self-advocacy, self-determination, and peer mentoring training opportunities available in the individual's geographic area, provided by an entity that does not have any financial interest in the individual's employment outcome, under applicable Federal and State programs or other sources. The actions required under subparagraphs
(A)and
(B)of paragraph
(1)shall be carried out once every 6 months for the first year of the individual's employment at a subminimum wage, and annually thereafter for the duration of such employment. In the event that the entity described in subsection
(a)is a business with fewer than 15 employees, such entity can satisfy the requirements of subparagraphs
(A)and
(B)of paragraph
(1)by referring the individual, at the intervals described in paragraph (2), to the designated State unit for the counseling, information, and referrals described in subparagraph
(A)and the information described in subparagraph (B). The designated State unit, in consultation with the State educational agency, shall develop a new process or utilize an existing process, consistent with guidelines developed by the Secretary, to document the completion of the actions described in subparagraphs (A), (B), and
(C)of subsection (a)(3) by a youth with a disability who is an individual with a disability. Such process shall require that— in the case of a student with a disability, for documentation of actions described in subsection (a)(3)(A)— if such a student with a disability receives and completes each category described in clauses
(i)through
(v)of section 7(30)(B) of available pre-employment transition services, such completion of services shall be documented by the designated State unit in a manner consistent with this section; if such a student with a disability receives and completes any transition services available for students with disabilities under the Individuals with Disabilities Education Act, including those provided under section 614(d)(1)(A)(i)(VIII) (20 U.S.C. 1414(d)(1)(A)(i)(VIII)), such completion of services shall be documented by the appropriate school official responsible for the provision of such transition services for students with disabilities in the school or school district, in a manner consistent with this section; and a Local Pre-Employment Transition Coordinator shall provide the final documentation, in a form and manner consistent with this section, of the completion of pre-employment transition services as described in clause (i), or transition services under the Individuals with Disabilities Education Act as described in clause (ii), to the student with a disability within a reasonable period of time following the completion; and when an individual has completed the actions described in subsection (a)(3)(C), following the completion of the actions described in subparagraphs
(A)and
(B)of subsection (a)(3), the designated State unit shall provide the individual a document indicating such completion, in a manner consistent with this section, within a reasonable time period following the completion of the actions described in this subparagraph. Before an individual covered by subsection (a)(3) begins work for an employer at a subminimum wage, the employer shall review the documentation received by the individual under subsection (d), and provided by the individual to the employer, that indicates that the individual has completed the actions described in subparagraphs (A), (B), and
(C)of subsection (a)(3) and the employer shall maintain copies of the documentation. In order to continue to employ an individual at a subminimum wage, the employer shall verify completion of the requirements of subsection (c), including reviewing any relevant documents provided by the individual, and shall maintain copies of the documentation. In this section, the term Federal minimum wage means the rate applicable under section 6(a)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 206(a)(1)). . This section takes effect 2 years after the date of enactment of the Workforce Investment Act of 2013.
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Sec. 558
Employment of individuals with disabilities at wages below minimum wage
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