Paying Less Than Minimum Wage? What the DOL Says About Wage and Your Company
Since the new overtime rules have been in affect regarding the change made by the FLSA, the wage related attention is now a debacle for those wanting to pursue a pay in less than minimum or full minimum wage in general for a company’s workers.
Since the requirements have been used as of July this year, the two rules on wage from the Department of Labor (DOL) has these two things to consider in mind. One rule is for paying your workers less under the age of 24. But the exception is whether or not the people under 24, are disabled. As a cut or lower of pay for disabled people can mean a spark in non-compliance with the Association of Disabled Americans (ADA). This law is known as the protection of youth law and it means that anyone under the 24 mark can receive cuts in pay or lower than minimum wage. But for disabled people who are going to be receiving less than minimum wage, those employees must be receiving transition services, rehabilitation or any vocational and career counseling services in order to comply with this enactment.
The second rule is providing ongoing training. If your employee is not being trained, then they cannot undergo the lower payment or subminimum wage. If they are receiving training on the job or any training in their job career set overall, then lowering their pay can compensate for the hours they work overtime to complete a training task for their work. The rule requires that workers being paid under minimum wage should be receiving training ever six months in their first year of employments and then annually following the first year of their employment. Any annual training after the first year of employment should be provided by federal or state resources, but no financial group can provide training if there is money interest to be made in the outcome of the employed individual. This means that while you must provide supplementary funds or services available to show that the person is going to be receiving under minimum wage payments, there has to be some training involved that is regulated by the state to show that the individual in general is following a program that they wish to aspire to as a career potential in their future years.
The overtime rules may be tricky to understand and narrow down, but thanks to the two rules that have to be followed regarding the new overtime rules, it seems to make understanding the extra chunk in your paycheck for overtime or doing career training is something to be noted for.