Section R. 408.776 - Time studies for hourly rates; conduct; retention of records; reviewRule 6.
(1) A rehabilitation facility shall conduct a time study to determine the deviated wage rate to be paid to the handicapped worker. The following steps shall constitute an acceptable time study method: (a) Establish the prevailing industry wage rate for the work to be performed in accordance with R 408.774.(b) Establish the steps of each type of work to be performed.(c) Have the type of work performed by a nonhandicapped worker for a 50-minute period.(d) Determine the hourly productivity of the nonhandicapped worker by computing the sum of tasks performed during the 50-minute period.(e) Have the type of work performed by the handicapped worker for a 50-minute period.(f) Determine the hourly productivity of the handicapped worker by computing the sum of tasks performed during the 50-minute period.(g) Determine the percentage of the handicapped worker's productive capacity as compared to the hourly productivity established for the nonhandicapped worker.(h) Determine the hourly rate to be paid to the handicapped worker by multiplying the percentage of the handicapped worker's productive capacity by the established prevailing industry wage rate.(2) If methods other than those in subrule (1) of this rule are used, the rehabilitation facility shall demonstrate that such methods accurately establish the commensurate wage to be paid to the handicapped worker.(3) A rehabilitation facility shall retain records of time studies used to determine hourly wages for 3 years.(4) The handicapped worker's productivity shall be measured no less than every 6 months and the hourly rate shall be adjusted to ensure that the commensurate wage is paid to the handicapped worker.(5) Hourly wage rates shall be reviewed and updated not less than every 6 months to reflect changes in prevailing industry wages.Mich. Admin. Code R. 408.776