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Tuesday, December 3, 2024

Biden Administration Moves to End the Subminimum Wage

 In The Politics of Autism, I discuss the employment of people on the autism spectrum.


Jacqueline Alemany at WP:

The Biden administration is moving to phase out a Depression-era program that allows some employers to pay disabled workers far less than minimum wage, fulfilling one of President Joe Biden’s campaign promises and triggering what is likely to become a fierce legal and political battle.

The decision is the culmination of the Department of Labor’s year-long review of the program, which opponents have criticized as a form of discrimination and supporters have described as providing disabled people with hard-to-find opportunities for steady wages and meaningful work. The agency will issue a proposed rule Tuesday that would immediately halt the issuance of certificates that allow employers to pay less than minimum wage and institute a three year phaseout period for employers that already hold those certificates.

Before it can take effect, the rule will be subject to a public comment period, possible legal challenges and the scrutiny of the incoming Trump administration. The public comment period is expected to conclude on Jan. 17, 2025, just days before Donald Trump takes office. His administration will have to evaluate and respond to those comments, and then issue a final rule — or withdraw the rule entirely.

Labor Department press release:

The U.S. Department of Labor today announced a proposed rule that would phase out the issuance of certificates allowing employers to pay some workers with disabilities less than the federal minimum wage, currently $7.25 per hour, for the work they perform.

The rule proposes to gradually eliminate certificates employers can apply for under Section 14(c) of Fair Labor Standards Act that allow them to pay certain workers with disabilities subminimum wages. The department proposes to discontinue the issuance of new certificates and establish a three-year phase-out period for employers with existing certificates once a final rule becomes effective.

“This proposal demonstrates the Biden-Harris administration’s dedication to good jobs for workers with disabilities,” said Acting Secretary of Labor Julie Su. “In the decades since Section 14(c) was included in the Fair Labor Standards Act, there have been significant legal and policy developments that have dramatically expanded employment opportunities and rights for individuals with disabilities. With this proposal, the department expects that many workers currently paid subminimum wages under Section 14(c) will move into jobs that pay full wages, which will improve their economic wellbeing and strengthen inclusion for people with disabilities in the workforce.”

The proposed rule would do the following:

  • Cease the department’s issuance of new Section 14(c) certificates starting on the effective date of a final rule.
  • Institute a three-year period beginning on the effective date of a final rule for employers holding existing Section 14(c) certificates to gradually cease paying subminimum wages to workers with disabilities.