Labor Department Scrutinizing Subminimum Wage Employment

A man with Down syndrome picks up trash for his subminimum wage job in 2015. (David Joles/Star Tribune/TNS)

Facing growing pressure to stop allowing people with disabilities to work for less than minimum wage, federal officials say they plan to undertake a “comprehensive review” of the employment model.

The U.S. Department of Labor said it will broadly examine what is known as the Section 14(c) program. Under a law dating back to the 1930s, the program allows employers to receive special 14(c) certificates from the department that allows them to pay workers with disabilities less than the federal minimum of $7.25 per hour.

“We are launching a comprehensive review of the Section 14(c) program to reexamine its use and future viability,” wrote Taryn M. Williams, assistant secretary of labor for disability employment policy, in a blog entry about the new effort that was first announced during a White House forum last week to commemorate the 50th anniversary of the Rehabilitation Act.

Advertisement – Continue reading below

The Labor Department did not go into detail about what the review will entail, how long it will take or what could come of it. But Williams said the agency wants to hear from people with disabilities and other stakeholders “about their experiences with the 14(c) program and what changes are needed to expand equal employment opportunities for people with disabilities.”

The review comes at the urging of disability advocates and other entities, including the Government Accountability Office, the National Council on Disability, the U.S. Commission on Civil Rights and the Department of Labor’s Advisory Committee on Increasing Competitive Integrated Employment, who, according to Williams, have asked the agency to “carefully review the 14(c) program and prioritize competitive integrated employment.”

In May, a dozen disability organizations asked the Department of Labor to issue a moratorium on new Section 14(c) certificates. At the time, advocates noted that a 2014 federal law implemented strict limits on paying people with disabilities less than minimum wage.

Meanwhile, the groups noted that this type of employment is already in decline. A GAO report from earlier this year found that the number of workers with disabilities nationwide earning less than the minimum wage fell from 296,000 to 122,000 between 2010 and 2019. Through September, Labor Department data shows that the number had fallen below 43,000.

According to the National Conference of State Legislatures, 16 states have already passed laws prohibiting this practice.

Maria Town, president and CEO of the American Association of People with Disabilities, said the time has come to abandon the Section (14(c) program and urged people with disabilities to speak out during the Labor Department’s review .

“Section 14(c), subminimum wage and segregated employment are antiquated concepts,” Town said. “With training, support, and proven strategies like personalized employment, people with disabilities can competently participate in competitive, integrated employment without the need for Section 14(c) certificates.”

Read more stories like this. Subscribe to Disability Scoop’s free email newsletter to get the latest news on developmental disabilities delivered right to your inbox.

We will be happy to hear your thoughts

Leave a reply

Xanadu
Logo
Register New Account
Compare items
  • Total (0)
Compare
0
Shopping cart