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Iowa Vocational Rehabilitation Services

Subminimum Wage

The Workforce Innovation and Opportunity Act (WIOA) in 2014 re-authorized the Workforce Investment Act of 1998 (WIA) and Rehabilitation Act through 2020. The passage of WIOA placed new limits on the payment of subminimum wages under Section 511, which went into effect July 22, 2016. State VR agencies have the primary responsibility for implementation of Section 511, in conjunction with education agencies and service providers.

The addition of Section 511 demonstrates the intent that individuals with disabilities, especially youth with disabilities, must be afforded a full opportunity to prepare for, obtain, maintain, advance in, or reenter competitive integrated employment.

Section 511 imposes limitations on employers who hold special wage certificates, commonly known as 14(c) certificates, under the Fair Labor Standards Act (FLSA) that must be satisfied before the employers may hire youth with disabilities at subminimum wage or continue to employ individuals with disabilities of any age at the subminimum wage level.

511 Provisions Chart
Q&A For Schools