§ 641.565 What policies govern the provision of wages and benefits to participants? ( a ) *Wages.* ( 1 ) ( i ) Grantees and sub-recipients must pay participants the highest applicable required wage for time spent in orientation, training, and community service assignments.
( ii ) SCSEP participants may be paid the highest applicable required wage while receiving WIOA career services.
( 2 ) The highest applicable required wage is either the minimum wage applicable under the Fair Labor Standards Act of 1938; the State or local minimum wage for the most nearly comparable covered employment; or the prevailing rate of pay for persons employed in similar public occupations by the same employer.
( 3 ) Grantees and sub-recipients must make any adjustments to minimum wage rates payable to participants as may be required by Federal, State, or local statute during the grant term.
( b ) *Benefits* — ( 1 ) *Required benefits.* Except as provided in paragraph (b)(2) of this section, grantees and sub-recipients must ensure that participants receive such benefits as are required by law. ( i ) Grantees and sub-recipients must provide benefits uniformly to all participants within a project or subproject, unless the Department agrees to waive this provision due to a determination that such a waiver is in the best interests of applicants, participants, and project administration.
( ii ) Grantees and sub-recipients must offer participants the opportunity to receive physical examinations annually. ( A ) Physical examinations are a benefit, and not an eligibility criterion. The examining physician must provide, to the participant only, a written report of the results of the examination.
( B ) Participants may choose not to accept the physical examination. In that case, the grantee or sub-recipient must document this refusal, through a signed statement, within 60 workdays after commencement of the community service assignment. Each year thereafter, grantees and sub-recipients must offer the physical examination and document the offer and any participant's refusal.
( C ) Grantees and sub-recipients may use SCSEP funds to pay the costs of physical examinations.
( iii ) When participants are not covered by the State workers' compensation law, the grantee or sub-recipient must provide participants with workers' compensation benefits equal to those provided by law for covered employment. OAA § 504(b).
( iv ) If required by State law, grantees/sub-recipients must provide unemployment compensation coverage for participants.
( v ) Grantees and sub-recipients must provide compensation for scheduled work hours during which a host agency's business is closed for a Federal holiday, which may be paid or in the form of rescheduled work time.
( vi ) Grantees and sub-recipients must provide necessary sick leave that is not part of an accumulated sick leave program, which may be paid or in the form of rescheduled work time.
( 2 ) *Prohibited wage and benefits costs.* ( i ) Participants may not carry over allowable benefits from one Program Year to the next;
( ii ) Grantees and sub-recipients may not provide payment or otherwise compensate participants for unused benefits such as sick leave or holidays;
( iii ) Grantees and sub-recipients may not use SCSEP funds to cover costs associated with the following participant benefits: ( A ) Retirement. Grantees and sub-recipients may not use SCSEP funds to provide contributions into a retirement system or plan, or to pay the cost of pension benefits for program participants.
( B ) Annual leave.
( C ) Accumulated sick leave.
( D ) Bonuses. (OAA § 502(c)(6)(A)(i)).
[75 FR 53812, Sept. 1, 2010, as amended at 82 FR 56883, Dec. 1, 2017]