DOL Investigation Provides Back Wages to Workers With Disabilities

Companies who employ workers with disabilities are required to pay them at least the full minimum wage unless they have an authorizing certificate from the U.S. Department of Labor’s (DOL) Wage and Hour Division allowing them to pay subminimum wages.

A recent DOL investigation found that a nonprofit organization, Shen-Paco Industries Inc. in Quicksburg, Virginia, allowed its authorizing certificate to expire but continued to pay its workers subminimum wages. The organization employs 40 workers with disabilities to provide services to local companies, including custodial work, bulk mailing, small parts assembly, recycling sorting, and document destruction.

Shen-Paco violated the Fair Labor Standards Act by not paying the workers the full minimum wage. It also failed to maintain accurate records of its employees’ work hours.

The affected workers received US$46,386 in back wages in response to the investigation.