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Directive:

DINAP BULLETIN 90-28


Status: Cancelled

Subject:
New Minimum Wages for JTPA Programs

Purpose:
To provide information to all grantees on the changes in the Fair Labor Standards Act (FLSA) pertaining to the minimum wage, and specifically the new "training wage" and its effect on JTPA programs.

To

All Native American Grantees

From

HERBERT FELLMAN PAUL A. MAYRAND Chief Director Division of Indian and Office of Special Native American Programs Targeted Programs

Date

March 22, 1991

Expiration Date
Continuing.
Rescissions:    None.
Text :
References. Section 6(a)(1) of the Fair Labor Standards Act of 1938, as amended. Section 6 of the Fair Labor Standards Amendments of 1989. Job Training Partnership Act, as amended, Section 142(a)(2) and (3). DINAP Bulletin 89-31. Background. Section 142(a)(2) and (3) of the JTPA requires, in part, that compensation to participants under all activities financed under the Act be at the same rates as similarly situated employees or trainees. In no case may compensation be less than the rate specified in Section 6(a)(1) of the FLSA of 1938, as amended. The minimum wage will be increased in steps under provisions of the FLSA amendments enacted into law on November 17, 1989. The first increase took effect on April 1, 1990. The FLSA Amendments also include a "training wage" which may be used instead of the minimum to pay teenagers, aged 16-19, for their first 90 days (and in some cases, 180 days) of employment. This "training wage" was set at $3.35 an hour or 85% of the federal minimum wage, whichever was higher. Clarification. The Employment and Training Administration has reviewed the provisions of the Fair Labor Standards Amendments as they pertain to the JTPA and has determined the following: (1) the JTPA statute applies the minimum wage rate specified at Section 6(a)(1) of the FLSA to all the JTPA programs; (2) Section 6 of the Amendments, which contains the "training wage" provisions, does not amend Section 6 of the FLSA. As such, rather than establishing a new minimum wage rate at Section 6(a), the amendments provide for an exception to the minimum wage rates set forth at Section 6(a) of the FLSA; and (3) exceptions to the FLSA minimum wage do not apply to the JTPA training and employment programs. Based on the above and given the JTPA statutory requirements at Section 142(a)(2) and (3), there is no current authority to allow the use of the new "training wage" in the JTPA program. Therefore, the JTPA grantees will not use this FISA minimum wage exception. This will be the case for all JTPA programs including the Summer Youth programs under Title II-B. The JTPA statutory wage requirements will remain unchanged. Wages for those participants who receive the federal minimum wage was increased from $3.35 an hour to $3.80 an hour on April 1, 1990. The second increase, to $4.25 an hour, is scheduled for April 1, 1991. The Department of Labor is developing a technical amendment which it may submit to Congress to apply the "training wage" to JTPA programs in the future. Grantees will be notified if there are further developments. Action. Grantees are advised regarding the application of the new minimum wage provisions to the JTPA programs. Questions. Contact your DINAP Federal Representative.

Attachments :
None.



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