Feds Recommend Phasing Out Subminimum Wage
August 23, 2012Text
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A key federal agency is calling for an end to a controversial
government policy allowing some employers to pay workers with disabilities less
than minimum wage.
In a report that’s expected to be sent to President Barack Obama
on Thursday, the National Council on Disability is recommending that a
provision of the Fair Labor Standards Act — section 14(c) — which allows
companies to obtain government permission to pay so-called subminimum wage be
eliminated over the course of six years.
“The 14(c) program should be phased-out gradually as part of a
systems change effort that enhances existing resources and creates new
mechanisms for supporting individuals in obtaining integrated employment and
other non-work services,” writes Jonathan Young, chairman of the National
Council on Disability, in a letter to the president that accompanies the
report, a copy of which was provided to Disability Scoop in advance. “NCD
recommends a phase-out of the 14(c) program rather than immediate repeal
because those who have been in the program for many years need time to
transition to a supported employment environment.”
Since the 1930s, employers have been able to request special
permission from the U.S. Department of Labor to pay those with disabilities
less than the federal minimum wage, which is currently $7.25 per hour. About
420,000 Americans with disabilities are now employed under the arrangement,
according to the Government Accountability Office.
For the report, members of the council — an independent federal
agency tasked with advising Congress and the president on disability issues —
conducted site visits in seven states to assess how current employment policy
is impacting people with disabilities. They also analyzed research on
employment practices.
Under the council’s recommendations, subminimum wage would be
phased out over a six-year period. The federal government would immediately
stop allowing new employers to obtain permission to pay low wages and schools
would no longer be allowed to specify any programs paying subminimum wage as a
goal for students in their individualized education programs, or IEPs.
Meanwhile, individuals already working for less than the minimum would be
transitioned into other employment programs within two to six years depending
upon how long they had been in their current program.
At the same time, the panel is recommending that lawmakers
institute mandatory information sharing to ensure smooth transitions for those
currently employed at submimimum wage. The report also urges incentives to
encourage states and providers to increase supported employment services, among
other changes.
The National Council on Disability’s recommendation to bring an
end to subminimum wage is likely to be contentious even among disability
advocates. While an increasing number of people with disabilities are obtaining
competitive employment, many advocates and families still argue that there’s a
place for jobs that pay less than minimum wage, especially for those with the
most severe disabilities.
In its report, the council acknowledges these divisions, likening
the debate to that in the 1970s and 1980s over deinstitutionalization and
noting that “historically, consensus is hard to come by whenever the disability
service provision system has needed change.”
A U.S. Senate proposal last year to restrict — but not abolish —
subminimum wage died after significant opposition from some
disability advocacy groups who thought the bill didn’t go far enough.
Meanwhile, another 2011 proposal in Congress to phase out the program
never gained much traction.
Just this week, the National Federation of the Blind said it would
spearhead protests outside more than 80 Goodwill thrift
stores across the country this weekend to oppose the organization’s practice of
paying subminimum wage to thousands of workers with disabilities. Goodwill and
other employers who utilize the wage allowance defend the practice arguing that
they employ thousands who otherwise might be without work.
In addition to its report, members of the National Council on
Disability say that as a next step they plan to draft a legislative proposal
this fall.
Source: www.disabilityscoop.com
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