A Biden-era proposed rule to end the subminimum wage program for people with disabilities under the Fair Labor Standards Act is at risk. On March 26, Republican members of the House Committee on Education and Workforce penned a letter to the Labor Secretary calling on her to abandon the proposed rule, which would prohibit the Department of Labor from issuing new certifications that allow employers to pay individuals with disabilities below the federal wage floor.
The letter writers want to continue the practice of allowing employers to pay subminimum wages to people with disabilities, under certain circumstances.
Congressional members are debating the proposed rule’s impact. Republicans are arguing that it protects employment opportunities for disabled Americans. In contrast, Democrats contend that it preserves antiquated and discriminatory wage loopholes.
Regardless, employers currently paying people subminimum wage pursuant to the current rules and certification from the Department of Labor should be conscious of these developments in planning payroll and other labor expenditures in both the short- and long-term.
We will monitor these developments, and others, as the current administration continues to reshape the U.S. labor landscape.