---
kind: "section"
citation: "29 U.S.C. § 794g"
title: "29"
title_heading: "Labor"
number: "794g"
heading: "Limitations on use of subminimum wage"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/29/794g"
units:
  - "Chapter 16 — Vocational Rehabilitation and Other Rehabilitation Services"
  - "Subchapter V — Rights and Advocacy"
---

# §794g. Limitations on use of subminimum wage

- (a) **In general—** No entity, including a contractor or subcontractor of the entity, which holds a special wage certificate as described in section 14(c) of the Fair Labor Standards Act of 1938 ([29 U.S.C. 214(c)](/usc/29/214.md?p=c)) may compensate an [individual with a disability](/usc/29/705.md?p=3-C-i) who is age 24 or younger at a wage (referred to in this section as a “subminimum wage”) that is less than the Federal minimum wage unless 1 of the following conditions is met:
  - (1) The [individual](/usc/29/705.md?p=22) is currently employed, as of the effective date of this section, by an entity that holds a valid certificate pursuant to section 14(c) of the Fair Labor Standards Act of 1938.
  - (2) The [individual](/usc/29/705.md?p=22), before beginning work that is compensated at a subminimum wage, has completed, and produces documentation indicating completion of, each of the following actions:
    - (A) The [individual](/usc/29/705.md?p=22) has received [pre-employment transition services](/usc/29/705.md?p=30) that are available to the [individual](/usc/29/705.md?p=22) under [section 733 of this title](/usc/29/733.md), or transition services under the [Individuals with Disabilities](/usc/29/705.md?p=3-B) Education Act ([20 U.S.C. 1400](/usc/20/1400.md) et seq.) such as transition services available to the [individual](/usc/29/705.md?p=22) under section 614(d) of that Act ([20 U.S.C. 1414(d)](/usc/20/1414.md?p=d)).
    - (B) The [individual](/usc/29/705.md?p=22) has applied for [vocational rehabilitation services](/usc/29/705.md?p=40) under subchapter I, with the result that—
      - (i)
        - (I) the [individual](/usc/29/705.md?p=22) has been found ineligible for such services pursuant to that subchapter and has documentation consistent with [section 722(a)(5)(C) of this title](/usc/29/722.md?p=a-5-C) regarding the determination of ineligibility; or
        - (II)
          - (aa) the [individual](/usc/29/705.md?p=22) has been determined to be eligible for [vocational rehabilitation services](/usc/29/705.md?p=40);
          - (bb) the [individual](/usc/29/705.md?p=22) has an individualized plan for employment under [section 722 of this title](/usc/29/722.md);
          - (cc) the [individual](/usc/29/705.md?p=22) has been working toward an [employment outcome](/usc/29/705.md?p=11) specified in such individualized plan for employment, with appropriate supports and services, including [supported employment services](/usc/29/705.md?p=39), for a reasonable period of time without success; and
          - (dd) the [individual](/usc/29/705.md?p=22)’s vocational rehabilitation case is closed; and
      - (ii)
        - (I) the [individual](/usc/29/705.md?p=22) has been provided career counseling, and information and referrals to Federal and [State](/usc/29/705.md?p=34) programs and other resources in the [individual](/usc/29/705.md?p=22)’s geographic area that offer employment-related services and supports designed to enable the [individual](/usc/29/705.md?p=22) to explore, discover, experience, and attain [competitive integrated employment](/usc/29/705.md?p=5); and
        - (II) such counseling and information and referrals are not for employment compensated at a subminimum wage provided by an entity described in this subsection, and such employment-related services are not compensated at a subminimum wage and do not directly result in employment compensated at a subminimum wage provided by an entity described in this subsection.
- (b) **Construction—**
  - (1) **Rule—** Nothing in this section shall be construed to—
    - (A) change the purpose of this chapter described in [section 701(b)(2) of this title](/usc/29/701.md?p=b-2), to empower [individuals with disabilities](/usc/29/705.md?p=3-B) to maximize opportunities for [competitive integrated employment](/usc/29/705.md?p=5); or
    - (B) preference employment compensated at a subminimum wage as an acceptable vocational rehabilitation strategy or successful [employment outcome](/usc/29/705.md?p=11), as defined in [section 705(11) of this title](/usc/29/705.md?p=11).
  - (2) **Contracts—** A local educational agency (as defined in [section 7801 of title 20](/usc/20/7801.md)) or a [State](/usc/29/705.md?p=34) educational agency (as defined in such section) may not enter into a contract or other arrangement with an entity described in [subsection (a)](#a) for the purpose of operating a program for an [individual](/usc/29/705.md?p=22) who is age 24 or younger under which work is compensated at a subminimum wage.
  - (3) **Voidability—** The provisions in this section shall be construed in a manner consistent with the provisions of the Fair Labor Standards Act of 1938 ([29 U.S.C. 201](/usc/29/201.md) et seq.), as amended before or after the effective date of this Act.
- (c) **During employment—**
  - (1) **In general—** The entity described in [subsection (a)](#a) may not continue to employ an [individual](/usc/29/705.md?p=22), regardless of age, at a subminimum wage unless, after the [individual](/usc/29/705.md?p=22) begins work at that wage, at the intervals described in [paragraph (2)](#c-2), the [individual](/usc/29/705.md?p=22) (with, in an appropriate case, the [individual](/usc/29/705.md?p=22)’s parent or guardian)—
    - (A) is provided by the [designated State unit](/usc/29/705.md?p=8-B) career counseling, and information and referrals described in [subsection (a)(2)(B)(ii)](#a-2-B-ii), delivered in a manner that facilitates independent decisionmaking and informed choice, as the [individual](/usc/29/705.md?p=22) makes decisions regarding employment and career advancement; and
    - (B) is informed by the employer of self-advocacy, self-determination, and peer mentoring training opportunities available in the [individual](/usc/29/705.md?p=22)’s geographic area, provided by an entity that does not have any financial interest in the [individual](/usc/29/705.md?p=22)’s [employment outcome](/usc/29/705.md?p=11), under applicable Federal and [State](/usc/29/705.md?p=34) programs or other sources.
  - (2) **Timing—** The actions required under subparagraphs [(A)](#c-1-A) and [(B)](#c-1-B) of paragraph (1) shall be carried out once every 6 months for the first year of the [individual](/usc/29/705.md?p=22)’s employment at a subminimum wage, and annually thereafter for the duration of such employment.
  - (3) **Small business exception—** In the event that the entity described in [subsection (a)](#a) is a business with fewer than 15 employees, such entity can satisfy the requirements of subparagraphs [(A)](#c-1-A) and [(B)](#c-1-B) of paragraph (1) by referring the [individual](/usc/29/705.md?p=22), at the intervals described in [paragraph (2)](#c-2), to the [designated State unit](/usc/29/705.md?p=8-B) for the counseling, information, and referrals described in [paragraph (1)(A)](#c-1-A) and the information described in [paragraph (1)(B)](#c-1-B).
- (d) **Documentation—**
  - (1) **In general—** The [designated State unit](/usc/29/705.md?p=8-B), in consultation with the [State](/usc/29/705.md?p=34) educational agency, shall develop a new process or utilize an existing process, consistent with guidelines developed by the [Secretary](/usc/29/705.md?p=33), to document the completion of the actions described in subparagraphs [(A)](#a-2-A) and [(B)](#a-2-B) of subsection (a)(2) by a [youth with a disability](/usc/29/705.md?p=42-A) who is an [individual with a disability](/usc/29/705.md?p=3-C-i).
  - (2) **Documentation process—** Such process shall require that—
    - (A) in the case of a [student with a disability](/usc/29/705.md?p=37-A), for documentation of actions described in [subsection (a)(2)(A)](#a-2-A)—
      - (i) if such a [student with a disability](/usc/29/705.md?p=37-A) receives and completes each category of required activities in [section 733(b) of this title](/usc/29/733.md?p=b), such completion of services shall be documented by the [designated State unit](/usc/29/705.md?p=8-B) in a manner consistent with this section;
      - (ii) if such a [student with a disability](/usc/29/705.md?p=37-A) receives and completes any transition services available for [students with disabilities](/usc/29/705.md?p=37-B) under the [Individuals with Disabilities](/usc/29/705.md?p=3-B) Education Act [[20 U.S.C. 1400](/usc/20/1400.md) et seq.], including those provided under section 614(d)(1)(A)(i)(VIII) ([20 U.S.C. 1414(d)(1)(A)(i)(VIII)](/usc/20/1414.md?p=d-1-A-i-VIII)), such completion of services shall be documented by the appropriate school official responsible for the provision of such transition services, in a manner consistent with this section; and
      - (iii) the [designated State unit](/usc/29/705.md?p=8-B) shall provide the final documentation, in a form and manner consistent with this section, of the completion of [pre-employment transition services](/usc/29/705.md?p=30) as described in [clause (i)](#d-2-A-i), or transition services under the [Individuals with Disabilities](/usc/29/705.md?p=3-B) Education Act as described in [clause (ii)](#d-2-A-ii), to the [student with a disability](/usc/29/705.md?p=37-A) within a reasonable period of time following the completion; and
    - (B) when an [individual](/usc/29/705.md?p=22) has completed the actions described in [subsection (a)(2)(B)](#a-2-B), the [designated State unit](/usc/29/705.md?p=8-B) shall provide the [individual](/usc/29/705.md?p=22) a document indicating such completion, in a manner consistent with this section, within a reasonable time period following the completion of the actions described in this subparagraph.
- (e) **Verification—**
  - (1) **Before employment—** Before an [individual](/usc/29/705.md?p=22) covered by [subsection (a)(2)](#a-2) begins work for an entity described in [subsection (a)](#a) at a subminimum wage, the entity shall review such documentation received by the [individual](/usc/29/705.md?p=22) under [subsection (d)](#d), and provided by the [individual](/usc/29/705.md?p=22) to the entity, that indicates that the [individual](/usc/29/705.md?p=22) has completed the actions described in subparagraphs [(A)](#a-2-A) and [(B)](#a-2-B) of subsection (a)(2) and the entity shall maintain copies of such documentation.
  - (2) **During employment—**
    - (A) **In general—** In order to continue to employ an [individual](/usc/29/705.md?p=22) at a subminimum wage, the entity described in [subsection (a)](#a) shall verify completion of the requirements of [subsection (c)](#c), including reviewing any relevant documents provided by the [individual](/usc/29/705.md?p=22), and shall maintain copies of the documentation described in [subsection (d)](#d).
    - (B) **Review of documentation—** The entity described in [subsection (a)](#a) shall be subject to review of [individual](/usc/29/705.md?p=22) documentation described in [subsection (d)](#d) by a representative working directly for the [designated State unit](/usc/29/705.md?p=8-B) or the Department of Labor at such a time and in such a manner as may be necessary to fulfill the intent of this section, consistent with regulations established by the [designated State unit](/usc/29/705.md?p=8-B) or the [Secretary](/usc/29/705.md?p=33) of Labor.
- (f) **Federal minimum wage—** In this section, the term “Federal minimum wage” means the rate applicable under section 6(a)(1) of the Fair Labor Standards Act of 1938 ([29 U.S.C. 206(a)(1)](/usc/29/206.md?p=a-1)).

## Source credit

(Pub. L. 93–112, title V, § 511, as added Pub. L. 113–128, title IV, § 458(a), July 22, 2014, 128 Stat. 1676; amended Pub. L. 114–95, title IX, § 9215(mmm)(4)(A), Dec. 10, 2015, 129 Stat. 2188.)

## Notes

### Editorial Notes

### References in Text

The effective date of this section, referred to in subsec. (a)(1), means 2 years after July 22, 2014. See Effective Date note below.

The Individuals with Disabilities Education Act, referred to in subsecs. (a)(2)(A) and (d)(2)(A)(ii), (iii), is title VI of Pub. L. 91–230, Apr. 13, 1970, 84 Stat. 175, which is classified generally to chapter 33 (§ 1400 et seq.) of Title 20, Education. For complete classification of this Act to the Code, see section 1400 of Title 20 and Tables.

The Fair Labor Standards Act of 1938, referred to in subsec. (b)(3), is act June 25, 1938, ch. 676, 52 Stat. 1060, which is classified generally to chapter 8 (§ 201 et seq.) of this title. For complete classification of this Act to the Code, see section 201 of this title and Tables.

The effective date of this Act, referred to in subsec. (b)(3), may mean the effective date of Pub. L. 93–112 (Sept. 26, 1973), the effective date of Pub. L. 113–128, which added this section (see Effective Date note set out under section 3101 of this title), or the effective date of this section (see Effective Date note below).

### Amendments

2015—Subsec. (b)(2). Pub. L. 114–95 made technical amendment to reference in original act which appears in text as reference to section 7801 of title 20.

### Statutory Notes and Related Subsidiaries

### Effective Date of 2015 Amendment

Pub. L. 114–95, title IX, § 9215(mmm)(4)(B), Dec. 10, 2015, 129 Stat. 2188, provided that: “The amendment made by subparagraph (A) [amending this section] shall take effect on the same date as section 458(a) of the Workforce Innovation and Opportunity Act (Public Law 113–128; 128 Stat. 1676) [enacting this section] takes effect, and as if enacted as part of such section.”

### Effective Date

Pub. L. 113–128, title IV, § 458(b), July 22, 2014, 128 Stat. 1679, provided that: “This section [enacting this section] takes effect 2 years after the date of enactment of the Workforce Innovation and Opportunity Act [July 22, 2014].”