Employment & Retention Services - Under-Employment Policy

Per CalWORKs rules, employment must be compensated at least at the state or federal minimum wage. If neither wage applies, the work must be compensated in an amount equivalent to the lesser of the two (federal minimum wage is lower). [EAS MPP 42-701.2] An individual who is not compensated as per the above CalWORKs rules is considered under-employed.

Employment which pays less than the federal minimum wage is unlikely to lead to economic self-sufficiency. If during Intake, it is determined that the client is employed by a third party but not earning wages equivalent to at least the federal minimum wage, he/she can either:

• Continue the employment activity for one year and will need to sign the “Employment Participation Requirements Agreement” (SCD 2169A) to increase the wages, and
• The EC is to provide wage counseling to under-employed clients, or
• May be referred to Supervised Job Search if the client will not be able to raise his/her earnings within one year.

Since under-employed clients are working for someone else, they are not considered self-employed.

Example: Client works as sales agent and is paid on commission. He works 40 hours a week and earns a gross amount of $200.00 for the week. When we divide the $200.00 by 40 hours, the hourly wages come to $5.00. This client is not meeting the federal minimum wage and is considered under-employed. The EC provides wage counseling on sustainable wages.

Continuing Clients

Continuing CWES clients who obtain new employment must be employed earning at least the local wage ordinance. WTW Plans will not be completed for newly “under-employed” clients in continuing (this does not apply to self-employment). The EC must provide wage counseling to encourage self-sufficiency.

Note: Since calculated hours do not apply for under-employment, concurrent enrollment also does not apply for under-employed clients.

Typical Jobs

Jobs in which a client may be “under-employed” typically include commissioned-based work, with or without base pay, such as real estate agents or other sales agents, baby sitters and casual day laborers working for someone else, or other individuals whose income includes commission or other monetary compensation that is the lower of the federal or state minimum wage.

SCD 1755A

Calculated hours do not apply for under-employment. In the WTW 2 and in CalSAWS, schedule actual hours. On the [Attendance] tab record actual hours that are reported on the SCD 1755A. Supportive services are to be authorized, as per current procedures.

Timeline

Employed clients who are compensated at less than the federal minimum wage must meet the work participation requirements. These requirements apply to all mandatory and exempt volunteers. The following applies for clients at intake:

• Has one year from the date of the CalWORKs benefits application to increase wages.
• Is required to sign the SCD 2169A.
• The begin date entered on the SCD 2169A needs to be the date of the CalWORKs benefits application.

Federal Work Participation Rate (WPR)

Since under-employed clients may not be meeting the WPR, other activities may need to be assigned by the RRT to meet the WPR for the review month.

Informing Notice

CWES staff must document in Maintain Journal Entry window when the SCD 2169A is signed by the client. A copy must also be submitted to IDM. This form is used for self-employed and underemployed clients. A similar version of this form, which is used only as an informing notice, “Employment Participation Requirements Informational Notice” (SCD 2169), is included in the Benefits Intake Packets. Refer to CalWORKs Handbook, “Work Participation Requirements,” page 31-10.

NONC/Sanction

If at the conclusion of one year, an under-employed client fails to increase his/her income or fails to sign a WTW Plan and participate in a new full-time activity, the noncompliance process must be initiated.

Journal Entry

When implementing a sanction due to Under-Employment, or to a related activity, the EC Supervisor or lead must document in Journal Detail page that the reason for the sanction was related to under employment, or a related activity.

Note: A WTW Curing Sanction Plan cannot be signed for the same activity for a client considered “under-employed” if the reason for the sanction was due to under-employment (i.e. not meeting the hours requirement for Full-time Employment after one (1) year or not participating or refusing to sign a WTW Plan for a new activity after the one year grace period).