US Department of Labor Announced on Tuesday It said it plans to phase out certificates that allow employers to pay disabled workers below the minimum wage.
Under current rules, certain employers can apply for a certificate that allows them to pay employees with disabilities less than or equal to the federal minimum wage (currently $7.25 an hour).
The department announced that certificates under Section 14(c) of the Fair Labor Standards Act of 1938 will be phased out over a three-year period and new certificates will no longer be issued. This follows a review of the program that began last year.
According to a 2020 Department of Labor report, more than 100,000 people with disabilities are employed at wages below the national minimum wage.
“This proposal demonstrates the Biden-Harris administration’s dedication to providing good jobs for workers with disabilities,” Acting Labor Secretary Julie Su said in a statement.
Mr Hsu said there had been “significant” legal and policy developments since the Fair Labor Standards Act was enacted, meaning employment opportunities and rights for people with disabilities had expanded.
“With this proposal, the Department believes that many workers who are not currently paid the minimum wage under Section 14(c) will be moved to jobs that pay full wages, thereby improving their economic well-being. We hope to see greater inclusion of people with disabilities in the workforce,” said Hsu. .
Once the new rules are finalized, they will begin a three-year period to phase out all below-minimum wage certificates.
The Department is encouraging interested parties to submit comments on the proposal by January 17. Tuesday's announcement followed a stakeholder dialogue session in which the department heard from workers with disabilities, advocates, service providers, and certified employers.
“One of the guiding principles of America's workplaces is that a hard day's work should be paid a fair wage, but this proposal poses a hurdle,” Jessica Luman, administrator of the department's Wage and Hour Division, said in a statement. “We will ensure that certain workers are included in those principles.” .
