President Joe Biden’s Department of Labor has proposed abolishing below-minimum-wage pay for people with disabilities, a long-controversial program that has been criticized for being a form of discrimination. The administration’s proposed rule would phase out the exemption over three years, gradually ending the practice of allowing employers to pay subminimum wages to workers with disabilities.
Currently, around 40,000 American workers are covered by certificates allowing subminimum wage payment. Many of these workers are employed in “sheltered workshops,” non-profit organizations that provide opportunities for individuals with disabilities. Some employers have reported paying workers as little as 25 cents per hour for tasks like sorting clothes.
Acting Secretary of Labor Julie Su emphasized the importance of equity and providing fair job opportunities for all individuals, including those with disabilities. The proposal reflects a shift towards integrated workplaces where employees with disabilities can thrive.
However, the fate of the proposed regulation ultimately lies with President Trump, whose administration could choose to roll back these changes. Some Republicans have voiced concerns over potential impacts on sheltered workshops and employment opportunities for workers with disabilities.
The proposal also coincides with efforts by the U.S. National Labor Relations Board to address issues preventing some workers with disabilities from unionizing. The outcome of these regulatory initiatives remains uncertain as the incoming Trump administration could bring about significant changes.
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