Labor Department announces plans to discontinue 'subminimum' pay for disabled employees

The Department of Labor on Tuesday proposed a new rule that would slowly end certificates that allow employers to pay disabled workers less than the federal minimum wage.

Acting Secretary of Labor Julie Su began looking into the current program last year, which allows certain employers to receive a waiver or certificate that allows them to pay certain disabled employees less than the $7.25 hourly federal minimum wage. 

The department said the proposed rule would cease the department's issuance of new certificates on the day that it is adopted, and the current certificates would be phased out over a three year period.

“This proposal demonstrates the Biden-Harris administration’s dedication to good jobs for workers with disabilities,” Su said in a statement. "With this proposal, the department expects that many workers currently paid subminimum wages ... will move into jobs that pay full wages, which will improve their economic wellbeing and strengthen inclusion for people with disabilities in the workforce.”

A Department of Labor study in 2020 found that over 100,000 disabled workers were employed with places that paid them less than the federal minimum wage, according to The Hill. 

“One of the guiding principles of the American workplace is that a hard day’s work deserves a fair day’s pay, and this proposal ensures that principle includes workers with disabilities,” Jessica Looman, administrator of the department’s Wage and Hour Division, said in a statement.

The proposed rule comes after the department held a meeting with disability advocates, disabled workers, family members, service providers and employers who currently use the certificates.

The Labor Department urged the public that wanted to weigh in on the proposed rule to submit their comments by Jan. 17.

Misty Severi is an evening news reporter for Just the News. You can follow her on X for more coverage.