A bill to amend the Fair Labor Standards Act of 1938, to require that wages based on individual productivity be paid to handicapped workers employed under certificates issued by the Secretary of Labor.
PL 99-486 (S.2884), enacted 10/16/1986

PUBLIC LAW 99-486—OCT. 16, 1986 
100 STAT. 1229 
Public Law 99-486 
99th Congress 
An Act 
To amend the Fair Labor Standards Act of 1938 to require that wages based on 
individual productivity be paid to handicapped workers employed under certificates 
issued by the Secretary of Labor. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, That subsection (c) 
of section 14 of the Fair Labor Standards Act of 1938 (29 U.S.C. 214) 
is amended to read as follows: 
"(c)(1) The Secretary, to the extent necessary to prevent curtail-
ment of opportunities for employment, shall by regulation or order 
provide for the employment, under special certificates, of individ-
uals (including individuals employed in agriculture) whose earning 
or productive capacity is impaired by age, physical or mental defi-
ciency, or injury, at wages which are— 
"(A) lower than the minimum wage applicable under sec-
tion 6, 
"(B) commensurate with those paid to nonhandicapped work-
ers, employed in the vicinity in which the individuals under the 
certificates are employed, for essentially the same t3rpe, quality, 
and quantity of work, and 
"(C) related to the individual's productivity. 
"(2) The Secretary shall not issue a certificate under paragraph (1) 
unless the employer provides written assurances to the Secretary 
that— 
"(A) in the case of individuals paid on an hourly rate basis, 
wages paid in accordance with paragraph (1) will be reviewed by 
the employer at periodic intervals at least once every six 
months, and 
"(B) wages paid in accordance with paragraph (1) will be 
adjusted by the employer at periodic intervals, at least once 
each year, to reflect changes in the prevailing wage paid to 
experienced nonhandicapped individuals employed in the local-
ity for essentially the same type of work. 
"(3) Notwithstanding paragraph (1), no employer shall be per-
mitted to reduce the hourly wage rate prescribed by certificate 
under this subsection in effect on June 1, 1986, of any handicapped 
individual for a period of two years from such date without prior 
authorization of the Secretary. 
"(4) Nothing in this subsection shall be construed to prohibit an 
employer from maintaining or establishing work activities centers 
to provide therapeutic activities for handicapped clients. 
"(5)(A) Notwithstanding any other provision of this subsection, 
any employee receiving a special minimum wage at a rate specified 
pursuant to this subsection or the parent or guardian of such an 
employee may petition the Secretary to obtain a review of such 
special minimum wage rate. An employee or the employee's parent 
or guardian may file such a petition for and in behalf of the 
employee or in behalf of the employee and other employees simi-
Oct. 16, 1986 
[S. 2884] 
Regulations. 
Agriculture and 
agricultural 
commodities. 
Health and 
medical care. 
100 STAT. 1230 
PUBLIC LAW 99-486—OCT. 16, 1986 
larly situated. No employee may be a party to any such action 
unless the employee or the employee's parent or guardian gives 
consent in writing to become such a party and such consent is filed 
with the Secretary. 
"(B) Upon receipt of a petition filed in accordance with subpara-
graph (A), the Secretary within ten days shall assign the petition to 
an administrative law judge appointed pursuant to section 3105 of 
Records. 
title 5, United States Code. The administrative law judge shall 
conduct a hearing on the record in accordance with section 554 of 
title 5, United States Code, with respect to such petition within 
thirty days after assignment. 
"(C) In any such proceeding, the employer shall have the burden 
of demonstrating that the special minimum wage rate is justified as 
necessary in order to prevent curtailment of opportunities for 
employment. 
"(D) In determining whether any special minimum wage rate is 
justified pursuant to subparagraph (C), the administrative law judge 
shall consider— 
"(i) the productivity of the employee or employees identified 
in the petition and the conditions under which such productiv-
ity was measured; and 
"(ii) the productivity of other employees performing work of 
essentially the same type and quality for other employers in the 
same vicinity. 
"(E) The administrative law judge shall issue a decision within 
thirty days after the hearing provided for in subparagraph (B). Such 
action shall be deemed to be a final agency action unless within 
thirty days the Secretary grants a request to review the decision of 
the administrative law judge. Either the petitioner or the employer 
may request review by the Secretary within fifteen days of the date 
of issuance of the decision by the administrative law judge. 
"(F) The Secretary, within thirty days after receiving a request for 
review, shall review the record and either adopt the decision of the 
administrative law judge or issue exceptions. The decision of the 
administrative law judge, together with any exceptions, shall be 
deemed to be a final agency action. 
"(G) A final agency action shall be subject to judicial review 
5 use 701 c
< seg. pursuant to chapter 7 of title 5, United States Code. An action 
seeking such review shall be brought within thirty days of a final 
agency action described in subparagraph (F). 
Approved October 16, 1986. 
LEGISLATIVE HISTORY—S. 2884 (H.R. 5614): 
CONGRESSIONAL RECORD, Vol. 132 (1986): 
Sept. 26, considered and passed Senate. 
Oct. 1, H.R. 5614 considered and passed House; proceedings vacated and S. 2884 
passed in lieu.