Dec. 3 (UPI) — The U.S. Department of Labor on Tuesday proposed a new rule to make work and pay an even playing field for all workers, particularly those with developmental or other disabilities.
The proposed rule would phase out issuing certificates that allow employers to pay some workers with disabilities less than the federal minimum wage, which is $7.25 per hour.
“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, the wage and hour administrator at the U.S. Department of Labor, said in a release.
According to the department, preliminary findings have shown that paying sub-minimum wages is no longer a necessity required for people with certain disabilities to have job options.
“This proposal would help ensure that workers with disabilities have access to equal employment opportunities while reinforcing the fundamental belief that all workers deserve fair compensation for their contributions,” said Taryn Williams, assistant secretary of Labor for disability employment policy.
Specifically, the Labor Department’s policy change proposal seeks to end issuing new Section 14(c) certificates to business owners starting on a yet-to-be-determined date. It also would put in place a three-year period to gradually cease the paying of lower wages to employees identified as disabled.
Last year in September, Acting Secretary of Labor Julie Su announced that the Labor Department would conduct a public review of the Section 14 program.
The department said it gathered “wide-ranging input” in the formation of the proposed rule change to gradually eliminate the certificates that employers can apply for under Section 14 of the Fair Labor Standards Act.
On Tuesday, Su wrote in a statement that in the decades since Section 14(c) was put in the Fair Labor Standards Act, there have been “significant legal and policy developments that have dramatically expanded employment opportunities and rights for individuals with disabilities.”
Su said that the department expects “many” workers currently paid a below-standard wage under the current system will transition into jobs that pay a full wage that ultimately will “improve their economic wellbeing and strengthen inclusion for people with disabilities in the workforce.”
Since the enactment of the Fair Labor Standards Act in 1938, added Looman, “opportunities and training have dramatically expanded to help people with disabilities obtain and maintain employment at or above the full federal minimum wage.”
Officials encourage all interested parties to submit a comment by 11:59 p.m. EST on Jan. 17, 2025, to be considered in the rule-making before it is published in the Federal Register.
“Employers today have more resources and training available to recruit, hire and retain workers with disabilities in employment at or above the full minimum wage,” Looman said. “And this proposed rule aligns with that reality.”