A bill to amend section 14(c)(3) of the Fair Labor Standards Act of 1938, to permit the employment of handicapped and severely handicapped individuals in common areas, to permit the employment of handicapped individuals in demonstration projects, and for other purposes.

Amends the Fair Labor Standards Act of 1938 to provide for employment at less than minimum wages for handicapped individuals in work activities programs (i.e. programs which provide therapeutic activities for individuals whose physical or mental impairment is so severe as to make their productive capacity inconsequential). Deletes a requirement that such employment be in work activities centers planned and designed exclusively for such activities.