Commensurate Wage Rates

Written by Kimberly Clark
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The Department of Labor (DOL) defines commensurate wage rates as a special minimum wage to be paid to a worker who has a disability. The wage the disabled worker is paid is based on his or her individual productivity level in proportion to that of a non-disabled person performing the same task. Essentially, the employee's productivity is based on their rate of output.

The commensurate wage rate paid is based on the number of pieces assembled or amount of items completed by the disabled worker, in a specified timeframe. This method of compensation is most commonly referred to as a piece rate payroll. So in essence, the commensurate wage rate is a piece rate that has been adjusted to allow for the limitations of the employee's disability.

Establishing a Commensurate Wage

Before an employer can pay a commensurate wage, they first have to establish a prevailing wage for the job to be done. The prevailing wage is what would be paid to a worker with no disability, for an identical line of work. Then in terms of quality and quantity, the employer has to develop a "standard" productivity level of a non-disabled person performing the tasks the employer intends for the disabled worker to do.

The employer also has to determine a "relative" productivity level of the person with the disability performing the exact same tasks as the non-disabled worker. Once determined, the ratio of the relative productivity level to the standard level is calculated. The resulting percentage is then multiplied by the prevailing wage to calculate the commensurate wage rate. These calculations often make advanced payroll software a necessity for accuracy and efficiency.


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ok now i understand this

ok now i understand this