US Labor Department investigation finds Kentucky non-profit center fails to pay minimum wage to 119 workers with disabilities

Employer name: Southwest Center for the Developmentally Disabled Inc.

Investigation site: 8009 Terry Road, Louisville, Kentucky 40258

Investigation findings: Investigators from the department's Wage and Hour Division found that Southwest Center violated the workers with disabilities provision of the Fair Labor Standards Act Section. Specifically, the employer failed to conduct timely and accurate time studies to determine correct subminimum wage rates authorized by Sec 14(c) of the FLSA. The firm also violated Title III of the Consumer Credit Protection Act by failing to properly calculate disposable earnings before making deductions from staff member's wages for child support and garnishment orders.

Resolution: The employer has agreed to future compliance with the FLSA and CCPA. The employer elected to pay nearly all workers the current minimum wage of $7.25 per hour for the investigation period and has agreed to pay $115,497 to 119 workers with disabilities and pay $1,299 to three workers for the improper deductions. Additionally, the employer signed an enhanced compliance agreement to ensure that training on time studies and maintaining training records would be conducted.

Quote: "The Wage and Hour Division is committed to ensuring that workers with disabilities receive fair treatment and are afforded the full protections of the Fair Labor Standards Act and labor laws" said Wayne Kotowski, the division's regional administrator in Atlanta. "The division remains committed to finding ways to increase employment opportunities for individuals with disabilities in competitive integrated employment. We will use available enforcement tools to prevent employers from exploiting these workers."

Information: Section 14(c) of the Fair Labor Standards Act authorizes employers, after receiving a certificate from the Wage and Hour Division, to pay Subminimum wages — wages less than the Federal minimum wage — to workers who have disabilities for the work being performed. View information about subminimum wage rates here. For more information about the FLSA and other federal wage laws, call the Wage and Hour Division's toll-free helpline at 866-4US-WAGE (487-9243). Information is also available at http://www.dol.gov/whd/.