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). [Eligibility and Assistance Standards (EAS) Manual of Policies and Procedures (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 2169 A) to increase the wages, and
• The Associate Employment Counselor (AEC)/Employment Counselor (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.

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Continuing Clients

Continuing CalWORKs Employment Services (CWES) clients who obtain new employment must be employed earning at least the local wage ordinance. Welfare-to-Work (WTW) plans will not be completed for newly under-employed clients in continuing (this does not apply to self-employment). The AEC/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, babysitters 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.

Attendance Verification (SCD 1755 A)

Calculated hours do not apply for under-employment. In the Welfare-to-Work Plan Activity Assignment (WTW 2) and in CalSAWS, schedule actual hours. On the [Attendance] tab in CalSAWS, record the actual hours reported on the SCD 1755 A.  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 2169 A.
• The begin date entered on the SCD 2169 A needs to be the date of the CalWORKs benefits application.

Informing Notice

CWES staff must document in the CalSAWS Journal Detail page when the SCD 2169 A is signed by the client. A copy must also be submitted to Imaging. This form is used for self-employed and under-employed 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, “Self-Employment," for additional information.]

Noncompliance/Sanction

If at the conclusion of one year, an under-employed client fails to increase his/her income or fails to sign a WTW 2 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 Employment Program Supervisor (EPS) or Lead must document in the CalSAWS Journal Detail page that the reason for the sanction was related to under-employment, or a related activity.