People with significant developmental disabilities have long suffered from the widespread belief that they have a limited ability for productive work.
In 1938, that assumption led the Congress to pass the Fair Labor Standards Act, giving employers the right to pay those with disabilities less than the minimum wage.
The subminimum wage was born.
Somewhat remarkably – that law is still in force. Employers in Connecticut and elsewhere can obtain what are called 14(c) certificates from the Department of Labor that allows those employers to pay workers with disabilities less than the minimum wage.
Today, approximately 150,000 disabled workers in the U.S. are legally permitted to be paid in this fashion. Roughly 1,760 14(c) of those certificates are in force in Connecticut at this time. Most of these workers are employed in sheltered workshops run by non-profits, isolated from society.
Last week, the U.S. House of Representatives took a first step in eliminating this wage loophole.
In a bill primarily designed to raise the federal minimum wage to $15 an hour (Raise the Wage Act) was a provision to end the subminimum wage over time.
Efforts at the state and local level to restrict the use of 14(c) certificates have grown in recent years – but this latest congressional action is the first time since 1938 that Congress has seriously considered a change.
Most advocates for the disabled are hailing the actions by the U.S. House and hoping it leads to passage of an act called the Transformation to Competitive Employment Act. That Act “seeks to provide states, services providers, subminimum wage certificate holders, and other agencies with the resources they need to create competitive integrated employment service delivery models and the inclusive wraparound services that some individuals with disabilities will need. This legislation is designed to strengthen and enhance the disability employment service delivery systems throughout the states while the subminimum wages that are currently allowed under Section 14(c) of the Fair Labor Standards Act are phased out over a six-year period.”
Where’s all this effort headed?
Any bill that passes in the House faces a most uncertain future in the Republican-controlled U.S. Senate…
Hopefully, any bill that reaches the President’s desk for signature will provide both employers and the disabled with reasonable and practical solutions.
If you’re an employer and have questions about labor and employment law, consider calling on the attorneys at Kainen, Escalera & McHale in Connecticut. We do one thing and one thing only – we are an employer defense law firm – in fact, we are one of the largest employer defense law firms in the region. What’s more, each of our attorneys has over 20 years of experience in employment and labor law matters and can provide your business with comprehensive legal counsel ranging from assistance with necessary preventive measures to trial advocacy. Please call us if we can help you.
The information provided above is made available by Kainen, Escalera & McHale, P.C. for educational purposes only. It is not intended to provide specific legal advice to your individual circumstances or legal questions. You acknowledge that neither your reading of, nor posting on, this site establishes an attorney-client relationship between you and our law firm or any of the attorneys in our firm. This information should not be used as a substitute for seeking competent legal advice from a licensed professional attorney in your state nor is it provided for the specific purpose of soliciting your business on any particular matter. Readers of this information should not act upon anything communicated in it without seeking professional counsel.