CW: Poverty & Ableism
Federal officials are reconsidering the government program that allows disabled people to be paid less than the minimum wage, with a new proposal due soon. The US Department of Labor announced that it intends to release a notice of proposed rulemaking under Section 14(c) of the Fair Labor Standards Act by September.
Last fall, the federal agency launched a “comprehensive review” of the program. Under this program, firms acquire special certificates from the Labor Department that allow them to pay workers with disabilities less than the minimum wage of $7.25 per hour. At the time, officials said they planned to “re-examine its use and future viability.”
Subminimum wage has been legal for decades. The law was enacted in 1938, and it was created during the Great Depression to encourage more people to seek employment. As of 2020, the average hourly wage for people employed in these settings was $3.34.
Many have earned less than $3.34 while working in a sheltered workshop. In 2011, some employees at Goodwill stores earned as little as 22 cents per hour, meaning their yearly salary was just $457.60.
During that same period, Goodwill International CEO Jim Gibbons earned $729,000 in salary and deferred pay. According to NBC, the CEOs of Goodwill franchises across the nation made a combined $30 million.
Progress has been made in making sure disabled employees are paid well. According to a January 2023 report to Congress from the United States Government Accountability Office, around 122,000 disabled workers were paid less than the federal minimum wage in 2019, compared to approximately 295,000 in 2010. Sixteen states have outlawed the practice entirely.
It is unclear what changes could be in store. Advocates have pushed the agency to discontinue the Section 14(c) program entirely. “We hope that the Department of Labor will choose to end 14(c) in the upcoming rule,” said Zoe Gross, advocacy director at the Autistic Self Advocacy Network. “Everyone deserves to be paid fairly for their work and their time, and workers with disabilities are no exception.”
Proponents of the subminimum wage program argue that eliminating it will limit opportunities for severely disabled people—some of whom may struggle in competitive integrated employment.
In 2014, Cathy Ticknor worked at ARC Industries South in Columbus, Ohio. Her boss was patient with the employees, all of whom have intellectual or developmental disabilities. No one was fired either. Ticknor enjoyed her job as a manager. “These workshops are hugely important” she told The Columbus Dispatch at the time.
Disabled people should be able to work just like nondisabled people. Disabled people should be paid a fair wage for their work. There should be opportunities for all disabled people to find work.
Sources:
Berman, Jillian. “Some Goodwill Workers Earn as Little as 22 Cents an Hour.” HuffPost, HuffPost, 25 June 2013, https://www.huffpost.com/entry/goodwill-workers-disabilities-low-wage_n_3478013.
Diament, Michelle. “Feds Weighing Changes to Subminimum Wage Program.” Disability Scoop, Disability Scoop, 11 July 2024, http://www.disabilityscoop.com/2024/07/11/feds-weighing-changes-to-subminimum-wage-program/30959/.
Diament, Michelle. “Labor Department Scrutinizing Subminimum Wage Employment.” Disability Scoop, Disability Scoop, 2 Oct. 2023, http://www.disabilityscoop.com/2023/10/02/labor-department-scrutinizing-subminimum-wage-employment/30571/.
Price, Rita. “Worry over Closing of Workshop for Developmentally Disabled.” The Columbus Dispatch, Gannett, 24 Feb. 2014, http://www.dispatch.com/story/news/2014/02/24/worry-over-closing-workshop-for/23345846007/.
Selyukh, Alina. “Workers with Disabilities Can Earn JUST $3.34 an HOUR. Agency Says Law Needs Change.” NPR, NPR, 17 Sept. 2020, http://www.npr.org/2020/09/17/912840482/u-s-agency-urges-end-to-below-minimum-wage-for-workers-with-disabilities.