CBS News reports that the Department of Labor, under the Biden-Harris administration, proposed repealing a controversial Depression-era program allowing some employers to pay disabled workers less than the federal minimum wage.
Under the current federal law, the agency provides certificates to employers, enabling them to pay certain workers less than $7.25 an hour based on the idea that disabled employees hinder productivity. Intending to help those with disabilities secure employment, Assistant Secretary of Labor for Disability Employment Taryn Williams says there are currently close to 40,000 American workers working for half the minimum wage or less. “Many earn less than half; some earn just pennies on the dollar,” Williams said.
The proposal comes after a review, noting that the new rule won’t take effect until Jan. 17, 2025, when the public comment period ends just days before President-elect Donald Trump takes office. The Trump-Vance administration would be given the chance to review and respond to the comments and initially issue a final rule—or withdraw it entirely.
The Labor Department would immediately stop any issue of certificates under Section 14(c) of the Fair Labor Standards Act of 1938, according to The Hill, which grants employers permission to pay less than the minimum wage and begin a three-year phase-out period for hundreds of employers that have permits. Under the act, the program was initially designed to provide jobs for injured military veterans.
Acting Labor Secretary Julie Su says the move shadows President Joe Biden’s commitment to giving “good jobs for workers with disabilities.” “With this proposal, the department expects that many workers currently paid subminimum wages under Section 14(c) will move into jobs that pay full wages, which will improve their economic wellbeing and strengthen inclusion for people with disabilities in the workforce,” Su said.
There are moves that concerned parties can make. Jessica Looman, administrator of the department’s Wage and Hour Division, encourages interested parties to submit proposal comments after the department hears concerns from advocates, workers with disabilities, service providers, and certificate-holding employers. “One of the guiding principles of the American workplace is that a hard day’s work deserves a fair day’s pay, and this proposal ensures that principle includes workers with disabilities,” Looman said in a statement.
If the proposal doesn’t go through, it’s possible that subminimum pay for disabled workers could disappear across state lines. More than a dozen states, including the District of Columbia, have already banned the program. In Illinois, lawmakers have already passed legislation to end subminimum wage for disabled workers by 2029, while California, Nevada, and Virginia have also made moves to phase the program out.
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