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Workers

Senators Urge Administration to Reinstate Fair Pay Rule for Workers with Disabilities

Strategic Insights

— 1 min read

U.S. Senator Chris Van Hollen (D-Md.) and eight of his Senate colleagues have expressed grave disappointment in the U.S. Department of Labor's decision to cancel a proposed rule that would end the subminimum wage program for workers with disabilities. The senators argue that this program, which permits employers to pay workers with disabilities far below the federal minimum wage, denies these workers their fundamental right to equal opportunity and fair pay. The senators point out that the majority of the 18,000 comments on the proposed rule supported phasing out special certificates under Section 14(c) of the Fair Labor Standards Act (FLSA).

Key Takeaways:

  • The U.S. Department of Labor has withdrawn a proposed rule that would phase out the subminimum wage program for workers with disabilities, which allows employers to pay them below the federal minimum wage.
  • The proposed rule received an overwhelming majority of support from the 18,000 comments submitted, with 16 states having eliminated subminimum wages in the past decade.
  • Senators argue that the subminimum wage program denies people with disabilities their fundamental right to equal opportunity and fair pay, as some workers earn pennies per hour.
  • The senators point out that paid training opportunities and alternative programs, such as the Work Opportunity Tax Credit, exist to support the hiring of workers with disabilities.
  • The senators urge the Department of Labor to change course and take meaningful steps to end subminimum wages for workers with disabilities.
  • Senator Chris Van Hollen (D-Md.) and eight Senate colleagues, including Senators John Fetterman (D-Pa.), Kirsten Gillibrand (D-N.Y.), and Bernie Sanders (I-Vt.).
  • The Transformation to Competitive Integrated Employment Act, bipartisan, bicameral legislation to phase out the subminimum wage nationwide over five years.

Statistics:

  • 18,000 people submitted comments on the proposed rule, with an overwhelming majority supporting the end of subminimum wages for workers with disabilities.
  • 16 states have eliminated subminimum wages in the past decade.
  • The subminimum wage program allows employers to pay workers with disabilities far below the federal minimum wage, with some earning pennies per hour.
  • The proposed rule would have phased out special certificates under Section 14(c) of the Fair Labor Standards Act (FLSA) over a set period.

Sources:

  • Senator Van Hollen's press release (https://www.vanhollen.senate.gov/news/press-releases/van-hollen-colleagues-urge-administration-to-reinstate-fair-pay-rule-for-workers-with-disabilities)
  • The Transformation to Competitive Integrated Employment Act

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