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Child Care Assistance Program Policy Manual Issued 10/2019 Applicable minimum wage 4.6.6.15 Applicable minimum wage for child care assistance is used to determine: • If a parent meets minimum activity requirements for employment outside of an Employment Plan at application and redetermination. See Chapter 4.6 (CCAP Authorized Activities) and Chapter 4.6.6 (Authorized Activities Outside an Employment Plan). • The number of hours to authorize for employment outside an Employment Plan when the parent does not work for an hourly wage. See Chapter 9.1.1 (Authorizing Care – Employment). Minimum wage laws There are state minimum-wage laws and federal minimum-wage laws. In cases where an employee is subject to both the state and federal minimum wage laws, the employee is entitled to the higher of the two minimum wages. The federal minimum wage is currently less than Minnesota’s state minimum wage. In Minnesota, there are different minimum wages based on whether the employer or business is considered a large employer or a small employer. • A small employer is a business with annual gross revenue of less than $500,000. • A large employer is a business with annual gross revenue of more than $500,000. Determining the applicable minimum wage • Assume that the applicable minimum wage is being paid by the employer when a worker receives an hourly wage from their employer and they are not self-employed, contracted, or salaried. • Apply the higher minimum wage for the applicable business size when an applicant or participant is contracted, salaried, or self-employed unless the person can supply information to show that they are not subject to this standard. The CCAP agency should work with the applicant or participant to identify the correct applicable amount if the person believes that they should not be subject to the higher minimum wage but verification is not available. Wages for people with disabilities Some employers employ people with disabilities and may qualify for disabled-worker permits. The Minnesota Department of Labor and Industry grants waivers from minimum wage requirements for some sheltered workshops employing people with disabilities. To pay a person with disabilities less than the state minimum-wage, an employer must apply for a subminimum- wage permit from the Minnesota Department of Labor and Industry. The employer may have such documentation of a waiver, or the worker can contact the Department of Labor and Industry to determine if this employer has such a waiver. If it is determined that the employer has a permit to pay subminimum-wage, the wage paid should be regarded as the “applicable minimum wage” and as meeting CCAP requirements.