Days of disabled workers earning less than $7.25 an hour may soon be over

(WASHINGTON) — The U.S. Department of Labor is proposing a rule that will eliminate the certificates that allow employers to pay some workers with disabilities less than the federal minimum wage, which stands at $7.25 an hour.

The department announced the change on Tuesday, which also marked the International Day of Persons with Disabilities.

“One of the guiding principles of the American workplace is that a hard day’s work deserves a fair day’s pay, and this proposal ensures that principle includes workers with disabilities,” said Wage and Hour Administrator Jessica Looman in a statement on the proposed rule.

She continued, “Since the enactment of the Fair Labor Standards Act in 1938, opportunities and training have dramatically expanded to help people with disabilities obtain and maintain employment at or above the full federal minimum wage. Similarly, employers today have more resources and training available to recruit, hire and retain workers with disabilities in employment at or above the full minimum wage, and this proposed rule aligns with that reality.”

The rule, if passed, would no longer allow employers to apply for certificates under Section 14(c) of Fair Labor Standards Act, which allows for the subminimum wage. It would set a three-year phase-out period for employers who currently have existing certificates.

A 2020 report from the U.S. Commission on Civil Rights found that some workers were being paid less than a dollar an hour for their work.

The disability community faces higher rates of poverty and lower rates of employment in the workforce, according to the U.S. Bureau of Labor Statistics and the National Council on Disability. Disabled advocates have long criticized Section 14(c) for perpetuating what they call discrimination and stigma.