The U.S. Department of Labor has proposed new rules to eliminate the practice of paying workers with disabilities less than the federal minimum wage, marking a major shift in employment policy that dates back to the New Deal era.
The proposed changes would phase out the "special minimum wage" program over three years, which currently allows employers to pay around 40,000 workers with disabilities below the federal minimum wage of $7.25 per hour. Under existing certificates, some workers reportedly earn as little as 5 to 25 cents per hour.
Acting Secretary of Labor Julie Su emphasized that the administration believes workers with disabilities can succeed in integrated workplaces without wage exceptions. "We don't have to create exceptions to our minimum wage rules in order for all people, including people with disabilities, to get good jobs," Su stated.
Many workers affected by the current policy are employed in "sheltered workshops" - non-profit organizations that provide work opportunities for people with conditions like blindness, autism, or cerebral palsy. These facilities often contract with companies for services such as document shredding, cleaning, and product assembly.
The proposal faces mixed reactions. Disability advocates have long criticized the existing system as discriminatory, while some Republican lawmakers warn that changes could limit employment opportunities. Representative Virginia Foxx and others argue that special minimum wages help expand work options for individuals with disabilities.
If implemented, the plan would stop issuing new certificates for subminimum wage employment and require existing certificate holders to transition to paying at least the federal minimum wage. The Department of Labor notes that employers would have substantial time to adjust their practices.
The future of this proposal remains uncertain as it will ultimately fall to the incoming Trump administration to decide its fate. The public can submit comments on the proposed rule until January 17, 2025.