A Special Minimum Wage License May Be Issued To An Employer To Permit The Employment Of Individual

dwd.state.wi.us, May 31, 2005

Such license will cover onlythose workers who are unable to earn the minimum wage, or who are student learners. The rate paid must becommensurate with the worker’s ability and productivity. The following definitions and policies shall be usedwhen issuing such licenses (1) “Worker with a disability” means an individual whose earnings or productive capacity is impaired by aphysical or mental disability, including those relating to age or injury, for the work to be performed.Disabilities which may affect earning or productive capacity include blindness, mental illness, mental retardation, cerebral palsy, alcoholism and drug addiction. The following, taken by themselves, are not considered disabilities for the purposes of this section: vocational, social, cultural, or educational disabilities; chronic unemployment; receipt of welfare benefits; nonattendance at school; juvenile delinquency; and correctional parole or probation. Further, a disability which may affect earning or productive capacity for one type of work may not have this effect for another type of work.(2) “Student Learner” means a student who is receiving instruction in an accredited school, college or university and who is employed on a part-time basis, pursuant to a bona fide vocational training program. (3) “Sponsoring Agency” means a sheltered workshop, governmental agency or a nonprofit charitable organization or institution carrying out an occupational rehabilitating activity of an educational or therapeutic nature.(4) Two types of “worker with a disability” license’s may be granted by the department. (a) A type 1 license is issued to a specific employer to employ a worker with a disability in their establishment. This license may be issued for a period of time not to exceed one year. (b) A type 2 license shall be requested by a sponsoring agency on behalf of a worker with a disability. A type 2 license may be issued by the department to a worker with a disability and will authorize anyemployer to pay the rate of pay stated on the license. An employer who hires a licensed worker with a disability shall retain a photocopy of the license for the employer’s records. This license may be issued for a period of time not to exceed one year.Note: The intent of issuing a type 2 license to the worker with a disability instead of to the employer is to permitthe sponsoring agency to make short-term placements. This would enable the worker to gain a variety of experiences without putting the burden on each employer to obtain a license. This should not be interpreted as relieving any employer from complying with the federal Fair Labor Standards Act which requires an individual special minimum wage certificate be issued to the federally-covered employer. (5) The license shall be granted for a specific individual only and only for a designated period of time. Minimum wage must be paid the employee until the license is granted, unless renewing. Renewal applications MUST BE received within 2 weeks of the expiration date of the current license. Licenses are issued effective the date the application is received in the department’s office or a specified later date as requested on the application. It shall provide a special minimum rate. The employer may not pay less than this set rate. (6) Records to Be Kept: In addition to the records required in DWD 272.11, the employer shall keep the following: (A) For Student Learner: (1) The student shall be identified on the payroll records, showing occupation and rate of pay. (2) A copy of the license and training agreement must be available at all times for inspection for three years. (B) Records To Be Kept By Employers: (1) Every employer of workers under a special minimum wage license, or the referring agency or facility in the case of records verifying a worker’s disabilities, shall maintain and have available for inspection the records specified in this subsection. (a) Verification of the worker’s disability (b) Evidence of the productivity of each worker with a disability which has been gathered on a continuing basis or at periodic intervals, which do not exceed six months in the case of employees, paid hourly wage rates (c) The prevailing wage paid to a worker who is not disabled. This would be for the job performed and for a worker employed in industry in the vicinity for the same type of work using similar methods and equipment as that used by the worker with a disability employed under the special minimum wage license  (d) The production standards and supporting documentation for non-disabled workers for each job being performed by a worker with disabilities employed under the special license. (e) In the case of workers with disabilities who are employed by a recognized non-profit rehabilitation facility and who are working in or about a home, apartment, or room in the residential establishment the records required under s. DWD 272.11. (f) The employer shall maintain and preserve the records required by this section for 3 years. (7) A license may be granted to employ the worker at a wage less than the minimum wage if the following conditions exist and application and documentation are received as per DWD 272.09: (A) The worker is so disabled that he or she is unable to earn the minimum wage, or (B) The employer is carrying out a recognized rehabilitation program - medical, therapeutic, or educational -and the person with a disability may learn and gain experience, or (C) The student learner is in a bona fide school-training program. (8) Refusal to Issue a License and Revocation of a License. The Department may refuse to issue alicense or may revoke, amend or modify any license it has issued, if, in its opinion, conditions or extraordinary circumstances warrant such action.

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