Workforce Innovation and Opportunity Act (Pub. L. 113 -128), Limitations on Use of Subminimum Wage (34 C.F.R. §397)

A subminimum wage is a wage that is less than the federal minimum wage. An employer can pay subminimum wages if it receives a special 14(c) certificate from the U.S. Department of Labor. Most certificate-holders in Minnesota are home and community-based service (HCBS) providers.

In Minnesota, a subminimum wage is typically paid to people who work in facility-based settings while receiving one of the following services funded by either the county or an HCBS waiver:

The county is almost always the agency to authorize services where a person will receive a subminimum wage.

This page provides an overview of:

For more resources about WIOA, see the additional resources section.

Like the Minnesota Olmstead Plan and the Centers for Medicare and Medicaid Services’ (CMS) HCBS rule, the federal WIOA seeks to help people succeed in competitive, integrated employment. It increases opportunity for and access to employment, education, training and support services. It also limits the use of subminimum wages.

WIOA Section 511, which took full effect July 22, 2016, seeks to ensure that:

While HCBS waiver services, such as DT&H and prevocational services, must meet the requirements of the HCBS rule, vocational rehabilitation services (VRS) must meet the requirements of WIOA Section 511 and its corresponding regulation “Limitations on Use of Subminimum Wage.”

WIOA Section 511 affects every person who is currently paid a subminimum wage or wants to work for subminimum wages.

WIOA Section 511 and its corresponding regulation “Limitations on Use of Subminimum Wage” require the Department of Employment and Economic Development (DEED) Vocational Rehabilitation Services (VRS) to engage people with disabilities in an informed choice process that prioritizes integrated work in the community that pays at least the federal minimum wage.

Before a person can be paid a subminimum wage, the subminimum-wage employer must have written documentation that the person has been engaged in the informed choice process required by WIOA and is choosing to earn a subminimum wage.

The informed choice process is different for people age 25 and older and people under age 25. For more information, see: