Melwood Eliminates Use of 14c

We are proud to announce that Melwood fully eliminated our use of Section 14(c) of the Fair Labor Standards Act (FLSA). With this decision we also dismissed the time studies model associated with 14(c). As a result, we will no longer pay any of our workers productivity-based wages. This is a major step forward on our long journey toward full inclusivity for people with differing abilities.

This has been a carefully thought out process that involved much consideration to reach this achievement. In 2013, we took the first step toward eliminating time studies by making the corporate decision to no longer use Section 14(c) to pay employees with differing abilities less than the normal statutory minimum wage, which at the time was $7.25 per hour. 

In the years that followed, we analyzed the costs, and we positioned our organization for this major change. We are now at the end of that journey and, with the full support of the Melwood Board of Directors, we have fully eliminated Melwood’s use of Section 14(c) of the FLSA. 

As of February 14^th any Melwood employee who was paid a productivity-based wage received a status change to bring them to the appropriate Wage Determination Rate for their respective jobs. Employees will see the result of this change in their paychecks dated March 10, 2016.  

We are very excited to implement this new policy, which further supports our vision of a world where people with differing abilities are fully included.