DLSE – Prevailing Wages and Training Wages Clarification
July 21, 2010
Introduction by Dwight Hansen
As for the memo that many of you saw from DDS relating to recent trainings on prevailing wages and training wages, ( I am posting it below in case you haven’t seen it) I discussed with DDS folks the need for California DOL to better understand the issues surrounding prevailing wage and 14(c) process and authority. They agreed. They were concerned with the lack of understanding by DOL, yet they agreed to co-sponsor the trainings. Hopefully we can work with them to educate DOL before any additional effort is made to change or weaken existing law.
Here is that memo:
From: Guzman, Carlene@DDS [mailto:Carlene.Guzman@DDS.ca.gov]
Sent: Wednesday, July 21, 2010 10:51 AM
Subject: FW: DSLE Training Follow-Up
Good Morning Everyone,
I would like to thank each of you for taking the time out of your busy schedules to attend the DSLE trainings. As I promised, DDS attempted to secure answers to the questions you asked at the trainings. Based upon the responses DDS received from DSLE, it appears that there are several areas that they discussed that they do not have regulatory authority to enforce. They do not appear to have authority to enforce the following:
Requiring Payment of Minimum Wages:
Please continue to follow U.S. DOL policies regarding the option to pay a “Provisional Rate” as indicated in their U.S. DOL Field Operations Handbook 64g07 and 29 CFR Part 531.36. You are allowed to pay a “training rate” amounting to a specific percentage (50% and etc.) of the prevailing wage during the initial period before the consumer with a disability is time studied. This is acceptable so long as you understand that you must make up the difference if after the initial time study (30 days) the consumer percentage is higher than your “training rate.” Again, all consumers receiving sub minimum wages must be time study every six (6) months.
DLSE does not appear to have a policy or regulation that supersedes the U.S. DOL policy that allows you to pay a training rate. If you are investigated and issued a fine for paying a “training rate” and not minimum wage for the first thirty (30) days, please appeal the ruling.
The One ($1.00) Rule:
Again it does not appear that DSLE has a regulation or statutory authority to fine any program for paying consumer a $1.00 or less if they have follow the rules and regulations for doing appropriate and accurate time studies and made reasonable accommodations to get the consumer to their highest functional level.
The “One Dollar Rule” is simply DSLE’s way of confirming you are in compliance with the labor and wage laws for paying consumers. It appears you may have an on-site visitation from a DLSE investigator any time you submit your application for a license renewal and you are paying one or more consumers $1.00 or less.
New SEP/Day Programs:
As is the case for existing programs that pay consumers a “training rate,” it appears that DSLE does not have the authority to prevent you from paying a training rate for newly placed consumers. You will however still need to have one month of times studies completed for all of you consumers at the time you submit your application for a sub minimum wage license to the state.
We sincerely appreciate DLSE cooperation in presenting the statewide trainings. Based upon the feedback from the DSLE trainers, the trainings were a learning experience for them as well and they have expressed an interest in learning more about our programs in the future. We will keep you abreast of any new information about the above areas. If you have any questions or concerns about the above or any other DLSE concerns, please contact me.
Carlene Guzman
Community Program Specialist II
California Dept. of Developmental Services
Work Services Section
1600 9th Street, MS 3-25
Sacramento, CA 95814
(916) 653-3288
Cell (916) 708-0711