California Department of Social Services - State Hearings Division
Notes from the Training Bureau - July 21, 1998

Under the FLSA, individuals must be paid minimum wage only if they are "employees." The United States Department of Labor (DOL) has stated that whether an employment relationship exists is determined based on the circumstances of each individual case, not based on the classification of the work activity in which the recipient is participating. The DOL added that whether an employment relationship exists should be determined by the economic realities of the relationship and by whether "work" is being performed for the benefit of a covered employer.

It is the position of the CDSS that although an employment relationship exists in some WtW activities, (such as unsubsidized and subsidized employment) no employment relationship exists (and thus minimum wage need not be paid) in the following WtW activities: work experience; community service; adult basic education; job skills training; vocational education and training; job search and job readiness assistance; education directly related to employment; satisfactory progress in school; and mental health, substance abuse and domestic violence services necessary to obtain and retain employment.