Except as otherwise provided in this chapter, the following provisions shall apply to all activities financed under this chapter:
(1) A trainee shall receive no payments for training activities in which the trainee fails to participate without good cause.
(2) Individuals in on-the-job training shall be compensated by the employer at the same rates, including periodic increases, as similarly situated employees or trainees and in accordance with applicable law, but in no event less than the higher of the rate specified in section 6(a)(1) of the Fair Labor Standards Act of 1938 [29 U.S.C. 206(a)(1)] or the applicable State or local minimum wage law.
(3) Individuals employed in activities authorized under this chapter shall be paid wages which shall not be less than the highest of (A) the minimum wage under section 6(a)(1) of the Fair Labor Standards Act of 1938 [29 U.S.C. 206(a)(1)], (B) the minimum wage under the applicable State or local minimum wage law, or (C) the prevailing rates of pay for individuals employed in similar occupations by the same employer.
(4) References in paragraphs (2) and (3) to section 6(a)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 206(a)(1))—
(A) shall be deemed to be references to section 6(c) 1 of that Act [29 U.S.C. 206(c)] for individuals in the Commonwealth of Puerto Rico;
(B) shall be deemed to be references to section 6(a)(3) of that Act [29 U.S.C. 206(a)(3)] for individuals in American Samoa; and
(C) shall not be applicable for individuals in other territorial jurisdictions in which section 6 of the Fair Labor Standards Act of 1938 [29 U.S.C. 206] does not apply.
Allowances, earnings and payments to individuals participating in programs under this chapter shall not be considered as income for the purposes of determining eligibility for and the amount of income transfer and in-kind aid furnished under any Federal or federally assisted program based on need, other than as provided under the Social Security Act [42 U.S.C. 301 et seq.].
(Pub. L. 97–300, title I, §142, Oct. 13, 1982, 96 Stat. 1345; Pub. L. 97–404, §1(g), Dec. 31, 1982, 96 Stat. 2026; Pub. L. 102–367, title I, §132, Sept. 7, 1992, 106 Stat. 1045.)
Pub. L. 105–220, title I, §199(b)(2), (c)(2)(B), Aug. 7, 1998, 112 Stat. 1059, provided that this section is repealed effective July 1, 2000.
Section 6(c) of the Fair Labor Standards Act, referred to in subsec. (a)(4)(A), is section 6(c) of act June 25, 1938, ch. 676, which was classified to section 206(c) of this title, and was repealed by Pub. L. 104–188, [title II], §2104(c), Aug. 20, 1996, 110 Stat. 1929.
The Social Security Act, referred to in subsec. (b), is act Aug. 14, 1935, ch. 531, 49 Stat. 620, as amended, which is classified generally to chapter 7 (§301 et seq.) of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see section 1305 of Title 42 and Tables.
1992—Subsec. (a)(4). Pub. L. 102–367, §132(1), added par. (4).
Subsec. (b). Pub. L. 102–367, §132(2), substituted “other than as provided” for “other than programs”.
1982—Subsec. (b). Pub. L. 97–404 inserted “furnished under any Federal or federally assisted program based on need” after “aid”.
Amendment by Pub. L. 102–367 effective July 1, 1993, see section 701(a) of Pub. L. 102–367, set out as an Effective Date of 1992 Amendment; Transition Provisions note under section 1501 of this title.
This section is referred to in title 7 section 2014; title 42 section 12899e.
1 See References in Text note below.