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Home News U.S. Department Of Labor Moves To Abolish Sub-Minimum Wages For Disabled Workers

U.S. Department Of Labor Moves To Abolish Sub-Minimum Wages For Disabled Workers

by Celia
U.S. Department Of Labor Moves To Abolish Sub-Minimum Wages For Disabled Workers

In a landmark move to promote economic equality and inclusion, the Biden administration has unveiled a proposal to eliminate employers’ ability to pay below the federal minimum wage to workers with disabilities. The U.S. Department of Labor (DOL) has proposed this significant policy change, arguing that the decades-old exemption under the Fair Labor Standards Act (FLSA) is no longer necessary in light of advancements in disability rights and labor policies.

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Historically, the FLSA, since its inception in 1938, allowed employers to apply for exemptions through the 14(c) program, which permitted paying workers with disabilities less than the federally mandated minimum wage of $7.25 per hour. These exemptions were granted with the goal of expanding job opportunities for individuals with disabilities when such lower wages were seen as necessary to secure employment.

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However, the Department of Labor now asserts that legal and policy developments, including the landmark passage of the Americans with Disabilities Act (ADA) in 1990, have effectively rendered the 14(c) program obsolete. In a newly proposed rule, the DOL has announced its plan to halt the issuance of new 14(c) certificates and gradually phase out existing ones over the next three years.

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In a statement on Tuesday, Acting Secretary of Labor Julie Su expressed the department’s expectation that this rule change will significantly benefit workers who have been subjected to sub-minimum wages. “With this proposal, we anticipate that many workers currently paid sub-minimum wages will transition into full-wage jobs, enhancing their economic well-being and contributing to greater inclusion for people with disabilities in the workforce,” Su said.

The proposal signals a critical shift toward greater workforce equality, seeking to end the practice of paying below minimum wage to individuals with disabilities who are performing jobs that are often repetitive and offer few opportunities for career advancement. By moving toward inclusive employment practices, the administration aims to challenge the stereotypes that devalue the capabilities of workers with disabilities.

The number of workers paid under the 14(c) program has sharply decreased in recent years. In 2010, nearly 300,000 workers were receiving sub-minimum wages under the program, but that number had dropped to approximately 122,000 by 2019. According to the DOL’s new proposal, fewer than 40,000 workers are currently employed at sub-minimum wages today. The majority of employers with 14(c) certificates are non-profit organizations that focus on providing services for people with disabilities.

Despite the decline, disability rights advocates argue that the remaining sub-minimum wage earners continue to suffer from financial instability and are often relegated to menial, low-skill tasks. Reports indicate that approximately half of these workers earn less than $3.50 per hour, with some earning as little as $1 per hour or less.

Disability rights groups have long criticized the 14(c) program as exploitative. Advocates argue that the low wages and limited job responsibilities perpetuate harmful stereotypes and social isolation for people with disabilities. The National Association of Councils on Developmental Disabilities (NACDD) has been vocal in calling for the end of the 14(c) program, stating that the practice “reinforces stigma and the misguided notion that people with disabilities are less capable of contributing to society.”

The Department of Labor’s proposal is now open for public comment until January 17, just days before the potential transition of power following the 2024 presidential election. Should President Biden leave office and President-elect Donald Trump take office, the new administration could choose to withdraw the proposal.

As the country moves toward a more inclusive future, the proposed change represents a bold step in correcting long-standing inequities for workers with disabilities. The Department of Labor hopes that this action will not only improve the lives of workers but also promote a more inclusive workforce for all Americans.

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