Van Hollen, Colleagues Urge Administration to Reinstate Fair Pay Rule for Workers with Disabilities

Today, U.S. Senator Chris Van Hollen (D-Md.) and eight of his Senate colleagues urged the U.S. Department of Labor to reverse its July decision to cancel a proposed rule to end the subminimum wage program, which permits employers to pay American workers with disabilities far below the federal minimum wage. In their letter to U.S. Labor Secretary Lori Chavez-DeRemer, the lawmakers stress that the subminimum wage represents a denial of these workers' rights to equal opportunity amid a decades-long expansion of initiatives that help equip people with disabilities with the tools and skills to compete in the workforce for fair pay. This letter comes after Senator Van Hollen in July introduced the Transformation to Competitive Integrated Employment Act, bipartisan, bicameral legislation to phase out the subminimum wage nationwide over five years and provide resources to facilitate this transition in the dozens of states that have not yet phased it out.

Senator Van Hollen was joined on this letter by Senators John Fetterman (D-Pa.), Kirsten Gillibrand (D-N.Y.), Tim Kaine (D-Va.), Patty Murray (D-Wash.), Jack Reed (D-R.I.), Bernie Sanders (I-Vt.), Elizabeth Warren (D-Mass.), and Ron Wyden (D-Ore.).

"We write today to express our grave disappointment in your Department's decision to withdraw the proposed rule that would phase out remaining special certificates under Section 14(c) of the Fair Labor Standards Act (FLSA). As long as the subminimum wage program is allowed to continue, people with disabilities are denied their fundamental right to equal opportunity by being paid less than half the federal minimum wage on average with some making pennies per hour," the Senators began.

"In the past ten years alone, sixteen states have eliminated subminimum wages with more states taking steps toward meaningful reform. As you noted during a recent hearing, the subminimum wages for workers with disabilities is not a partisan issue. This is further reflected through the nearly 18,000 comments on the proposed rule with an overwhelming majority support for phasing out special certificates under Section 14(c)," they continued.

"The Department of Labor's decision to withdraw this rule will continue to curtail the economic potential of Americans with disabilities and stands at odds with a skilled workforce this Administration seeks to promote. We urge you to change course and take meaningful steps to end subminimum wages for workers with disabilities," the Senators concluded.

Text of the letter can be viewed here and below.

Dear Secretary Chavez-DeRemer:

We write today to express our grave disappointment in your Department's decision to withdraw the proposed rule that would phase out remaining special certificates under Section 14(c) of the Fair Labor Standards Act (FLSA). As long as the subminimum wage program is allowed to continue, people with disabilities are denied their fundamental right to equal opportunity by being paid less than half the federal minimum wage on average with some making pennies per hour.

In the past ten years alone, sixteen states have eliminated subminimum wages with more states taking steps toward meaningful reform. As you noted during a recent hearing, the subminimum wage for workers with disabilities is not a partisan issue. This is further reflected through the nearly 18,000 comments on the proposed rule with an overwhelming majority support for phasing out special certificates under Section 14(c).

Since the FLSA's enactment in 1938, opportunities and training have dramatically expanded to help people with disabilities obtain and maintain competitive integrated employment. The payment of subminimum wages no longer comports with modern disability policy, including the Americans with Disabilities Act of 1990 and the Workforce Innovation and Opportunity Act. The evolving workforce renders Section 14(c) obsolete as there are alternative programs that support the hiring of workers with disabilities, such as the Work Opportunity Tax Credit.

The Department of Labor's decision to withdraw this rule will continue to curtail the economic potential of Americans with disabilities and stands at odds with a skilled workforce this Administration seeks to promote. We urge you to change course and take meaningful steps to end subminimum wages for workers with disabilities.