Finding Text
Type of Finding:
Noncompliance with Laws and Regulations Related to Section 511 of the Rehabilitation Act of 1973 as amended by Title IV of the Workforce Innovation and Opportunity Act (WIOA) and Section 14(c) of the Fair Labor Standards Act (FLSA) of 1938, as amended.
Criteria:
Management and those charged with governance are responsible for compliance with laws and regulations relevant to the Organization’s mission and major program. This includes compliance with WIOA, which requires that workers with disabilities who are paid subminimum wages receive career counseling and information about self-advocacy, self-determination, and peer mentoring training opportunities in their local area. Employees must receive these services twice in the first year they are hired and at least one time every year after.
Condition:
During the performance of audit procedures, we noted an instance of noncompliance with WIOA after a Department of Labor Wage and Hour Division investigation covering from December 2019 to April 2023 disclosed that FLSA was violated resulting from the failure to pay employees at least the applicable minimum wage for all hours worked due solely to the fact that the required counseling was not offered, as required, beginning in 2020.
Cause:
The required career counseling and training sessions as mentioned above were not conducted during the period covered by the DOL, thereby jeopardizing the Organization’s ability to pay subminimum wages.
Effect:
The impact of the failure to conduct required counseling could cause the Organization to lose its qualification to pay subminimum wages which could financially impede the ability to achieve its mission with regard to employing adults with significant barriers to employment.
Recommendation:
Implement a system whereby conformity with all laws and regulations is closely monitored. With regard to the required career counseling mentioned above, timely communication with Pennsylvania Office of Vocational Rehabilitation and ensuring that workers get sessions and training as frequently as needed in order to remain in compliance with WIOA and FLSA.
Management’s Response:
Management and the Board of Directors agree that due to length of time that counseling sessions were not offered, the Organization needs a system whereby compliance with WIOA and FLSA is closely monitored. Responsibilities will be shifted around, and the Director of Employment and Community Services will be charged with working with the Pennsylvania Office of Vocational Rehabilitation closely. The Director of Employment and Community Services will monitor workers’ attendance for counseling sessions and obtain certificates of attendance in a timely manner.