Labor Department to review subminimum wage policy for disabled workers
Labor Department to review subminimum wage policy for disabled workers
In many parts of the U.S., it’s still legal to pay people with disabilities less than the minimum wage. It’s called a subminimum wage, and the Department of Labor said this week that it’s planning a comprehensive review of the policy.
Federal regulations permit companies to apply for special certificates that allow them to hire disabled workers and pay them an average of less than $4 an hour.
But some states have banned the practice under pressure from those in the disability advocacy community who chafe at the unequal pay standards, according to Kelly Nye-Lengerman, director of the Institute on Disability at the University of New Hampshire.
“We’ve seen the numbers of subminimum wage certificate holders shrink over the last 5, 10, 20 years, but there are still thousands of people with disabilities that are paid subminimum wage in the United States today,” she said.
The Department of Labor is calling for stakeholders to weigh in on the program — especially those within the disabled community.
“What this is expected to actually mean is that the Department of Labor is going to use everything in their power to see if they need to actually continue issuing certificates,” said Kimberly Knackstedt, director of the Disability Economic Justice Collaborative at the Century Foundation.
Changes are likely to get pushback from those who say the subminimum wage is necessary to provide sustainable employment for people facing discrimination by traditional employers.
CLARIFICATION (Sept. 28, 2023): After this story appeared, the Department of Labor published a blog post on the subject.
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