The Biden administration on Tuesday moved to end a program that had for decades allowed companies to pay workers with disabilities less than the minimum wage.
The statute, enacted as part of the Fair Labor Standards Act of 1938, has let employers obtain Labor Department certificates authorizing them to pay workers with disabilities less than the federal minimum wage, currently $7.25.
The department began a “comprehensive review” of the program last year, and on Tuesday it proposed a rule that would bar new certificates and phase out current certificates over three years.
“This proposal would help ensure that workers with disabilities have access to equal employment opportunities, while reinforcing our fundamental belief that all workers deserve fair competition for their contribution,” Taryn Williams, assistant secretary of labor for disability employment policy, said on a call with reporters.
As of May, about 800 employers held certificates allowing them to pay workers less than minimum wage, affecting roughly 40,000 workers, said Kristin Garcia, deputy administrator of the Labor Department’s wage and hour division.
Persons:
Biden, ” Taryn Williams, Kristin Garcia
Organizations:
Fair Labor, Labor