Rule allowing employers to pay people with disabilities below minimum wage could end soon

The United States Labor Department is considering axing a rule which allows people with disabilities to be paid less than minimum wage — a first step towards more equality for one of the country’s most persecuted groups.

Reuters reported said the current rule, which exempts employees with disabilities from being paid the $7.25 minimum, is no longer necessary. Originally, the exemption was allegedly necessary to ensure people with disabilities had job opportunities. Under the Fair Labor Standards Act, employers have been allowed to apply for exemptions known as 14(c) certificates allowing them to pay their disabled employees less than minimum wage when “necessary to prevent the curtailment of opportunities for employment.”

This has continued, despite the enactment of the Americans with Disabilities Act (ADA) in 1990, making this change long overdue.

A report from the Government Accountability Office (GAO) found that over 100,000 employees were being paid less than minimum wage as of 2019; half of are paid less than $3.50 per hour, and about 10% are paid less than $1 an hour, which disability rights groups have rightly pointed out is exploitative.

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“With this proposal, the department expects that many workers currently paid sub-minimum wages … will move into jobs that pay full wages, which will improve their economic wellbeing and strengthen inclusion for people with disabilities in the workforce,” Acting Secretary of Labor Julie Su said in a statement to Reuters.

This proposed rule change seems to be in response to a position statement from the National Association of Councils on Developmental Disabilities (NACDD), calling for an end to the “outdated provision.”

“Regardless of their ability, every individual deserves the right to be treated with dignity, respect, and fairness in the workplace. Sheltered workshops, which often provide menial tasks for far below minimum wage, deny people with disabilities the opportunity to fully participate in society,” the position statement read, adding, “People who earn less than minimum wage are more likely to live in poverty, even with help from government programs. Many people with disabilities who work still struggle with poverty, with nearly half earning less than $30,000 per year. In fact, working-age people with disabilities living in the community have a poverty rate that’s twice as high as people without disabilities. Raising the minimum wage for disabled workers could help them improve their financial situation.”

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