U.S. Department of Labor Investigation Results in Back Wages For 92 Employees at North Carolina Rehabilitation Center

SELMA, NC – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Johnson County Industries Inc. – based in Selma, North Carolina – has paid $50,303 in back wages to 92 employees for failing to meet requirements of the Workforce Innovation Opportunity Act (WIOA) and Section 14(c) provisions of the Fair Labor Standards Act (FLSA).

WIOA requires that individuals with disabilities age 24 or younger complete pre-employment transition services, vocational rehabilitation services, and career counseling, information, and referral services before consideration for work at minimum wages under the FLSA's Section 14(c). Since the rehabilitation work center failed to meet those requirements, workers with disabilities must receive at least the federal minimum wage of $7.25 per hour. Recordkeeping violations also occurred when the center failed to maintain accurate records of the workers' hours.

"Employers have an obligation to understand and comply with the labor laws applicable to their businesses," said Wage and Hour District Director Richard Blaylock, in Raleigh. "The U.S. Department of Labor is committed to protecting all working Americans, and will continue to provide education and tools to employers to help them understand their responsibilities and how to comply with the law."

Section 14(c) of the FLSA is designed to offer more job opportunities for workers with disabilities when their disability affects their productive capacity for the work being performed. After applying for and receiving a certificate from the Department's Wage and Hour Division (WHD), the employer may determine their workers' productivity and calculate the appropriate Section 14(c) wage as compared to the rate for experienced workers performing similar jobs in the area.

For more information about the FLSA, Section 14(c), and other laws enforced by the Wage and Hour Division, contact the toll-free helpline at 866-4US-WAGE (487-9243). Employers who discover overtime or minimum wage violations may self-report and resolve those violations without litigation through the PAID program. Information is also available at https://www.dol.gov/whd.