---
kind: "section"
citation: "20 C.F.R. § 641.565"
title: "20"
number: "641.565"
heading: "What policies govern the provision of wages and benefits to participants?"
url: "https://uscodex.org/cfr/20/641.565"
---

# §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)](#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)](/cfr/20/504.md?p=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)](/cfr/20/502.md?p=c-6-A-i)).

## Notes

### Amendments

[75 FR 53812, Sept. 1, 2010, as amended at 82 FR 56883, Dec. 1, 2017]

### Authority

Authority: 42 U.S.C. 3056-3056p.

### Source

Source: 75 FR 53812, Sept. 1, 2010, unless otherwise noted.

### Amendments

[75 FR 53812, Sept. 1, 2010, as amended at 82 FR 56883, Dec. 1, 2017]