Last week the Department of Labor's Wage & Hour Division issued an opinion interpreting how state laws prohibiting the payment of subminimum wages to workers with disabilities effect the enforcement of Section 14(c) of the Fair Labor Standards Act (FSLA).
The opinion states that the FSLA does not pre-empt a state law that limits or prohibits the payment of wages lower than the state’s minimum wage. It goes on to remind Section 14(c) certificate holders that they must comply with federal and state laws.
The opinion, however, also recognizes that in states that limit or prohibit payment of subminimum wage, there may be circumstances under which a Section 14(c) certificate holder may pay commensurate wage and still be within the law. The example cited is of a certificate holder with a contract with the federal government that is covered by the Service Contract Act.
You will find the complete opinion by clicking here. We hope this information is helpful. If you have any questions, feel free to contact the INARF office.