§ 397.40 What are the responsibilities of a designated State unit for individuals with disabilities, regardless of age, who are employed at a subminimum wage? ( a ) *Counseling and information services.* ( 1 ) A designated State unit must provide career counseling and information and referral services, as described in § 397.20(a)(3), to individuals with disabilities, regardless of age, or the individual's representative as appropriate, who are known by the designated State unit to be employed by an entity, as defined in § 397.5(d), at a subminimum wage level.
( 2 ) A designated State unit may know of an individual with a disability described in this paragraph through the vocational rehabilitation process, self-referral, or by referral from the client assistance program, another agency, or an entity, as defined in § 397.5(d).
( 3 ) The career counseling and information and referral services must be provided in a manner that— ( i ) Is understandable to the individual with a disability; and
( ii ) Facilitates independent decision-making and informed choice as the individual makes decisions regarding opportunities for competitive integrated employment and career advancement, particularly with respect to supported employment, including customized employment.
( 4 ) The career counseling and information and referral services provided under this section may include benefits counseling, particularly with regard to the interplay between earned income and income-based financial, medical, and other benefits.
( b ) *Other services.* ( 1 ) Upon a referral by an entity, as defined in § 397.5(d), that has fewer than 15 employees, of an individual with a disability who is employed at a subminimum wage by that entity, a designated State unit must also inform the individual within 30 calendar days of the referral by the entity, of self-advocacy, self-determination, and peer mentoring training opportunities available in the community.
( 2 ) The services described in paragraph (b)(1) of this section must not be provided by an *entity* as defined in § 397.5(d).
( c ) *Required intervals.* ( 1 ) For individuals hired at subminimum wage on or after July 22, 2016, the services required by this section must be carried out once every six months for the first year of the individual's subminimum wage employment and annually thereafter for the duration of such employment.
( 2 ) For individuals already employed at subminimum wage prior to July 22, 2016, the services required by this section must be carried out once by July 22, 2017, and annually thereafter for the duration of such employment.
( 3 ) ( i ) With regard to the intervals required by paragraphs (c)(1) and (2) of this section for purposes of the designated State unit's responsibilities to provide certain services to individuals employed at subminimum wage, the applicable intervals will be calculated based upon the date the individual becomes known to the designated State unit.
( ii ) An individual with a disability may become “known” to the designated State unit through self-identification by the individual with a disability, referral by a third-party (including an *entity* as defined in § 397.5(d)), through the individual's involvement with the vocational rehabilitation process, or any other method.
( d ) *Documentation.* ( 1 ) ( i ) The designated State unit must provide documentation to the individual as soon as possible, but no later than— ( A ) 45 calendar days after completion of the activities required under this section; or
( B ) 90 calendar days, if additional time is necessary due to extenuating circumstances, after the completion of the required actions in this section. Extenuating circumstances should be interpreted narrowly to include circumstances such as the unexpected lengthy absence of the designated State unit personnel, due to illness or other family emergency, who is responsible for producing or transmitting the documentation to the individual with a disability, or a natural disaster.
( ii ) Documentation required by paragraph (d)(3) of this section, when an individual has refused to participate in an activity required by this section, must be provided to the individual within 10 calendar days of the individual's refusal to participate.
( 2 ) Such documentation must, at a minimum, contain the— ( i ) Name of the individual;
( ii ) Description of the service or activity completed;
( iii ) Name of the provider of the required service or activity;
( iv ) Date required service or activity completed;
( v ) Signature of individual documenting completion of the required service or activity;
( vi ) Date of signature described in paragraph (d)(2)(v) of this section;
( vii ) Signature of designated State unit personnel (if different from that in paragraph (d)(2)(v) of this section) transmitting documentation to the individual with a disability; and
( viii ) Date and method (*e.g.,* hand-delivered, faxed, mailed, emailed, etc.) by which document was transmitted to the individual.
( 3 ) In the event an individual with a disability or, as applicable, the individual's representative, refuses, through informed choice, to participate in the activities required by this section, such documentation must, at a minimum, contain the— ( i ) Name of the individual;
( ii ) Description of the refusal and the reason for such refusal;
( iii ) Signature of the individual or, as applicable, the individual's representative;
( iv ) Signature of the designated State unit personnel documenting the individual's refusal;
( v ) Date of signatures; and
( vi ) Date and method (*e.g.,* hand-delivered, faxed, mailed, emailed, etc.) by which documentation was transmitted to the individual.
( 4 ) The designated State unit must retain a copy of all documentation required by this part in a manner consistent with the designated State unit's case management system and the requirements of 2 CFR 200.333.
( e ) *Provision of services.* Nothing in this section will be construed as requiring a designated State unit to provide the services required by this section directly. A designated State unit may contract with other entities, *i.e.,* other public and private service providers, as appropriate, to fulfill the requirements of this section. The contractor providing the services on behalf of the designated State unit may not be an entity holding a special wage certificate under section 14(c) of the Fair Labor Standards Act (29 U.S.C. 214(c)) as defined in 397.5(d).
(Authority: Sections 12(c) and 511(c) and (d) of the Rehabilitation Act of 1973, as amended; 29 U.S.C. 709(c) and 794g(c) and (d))