Proposed Rule to End Subminimum Wage

a { color: #880000 !important; background: #ffeeee !important; } Latest NewsProposed Rule to End Subminimum WageWorkplace > LaborThe U.S. Labor Department has proposed a rule to phase out the subminimum wage for workers with disabilities, a practice that has been declining. This change aims to ensure equal employment opportunities and improve economic independence for these workers. Public comments on the proposal are open until January 17, 2025.

What's happened

The U.S. Labor Department has proposed a rule to phase out the subminimum wage for workers with disabilities, a practice that has been declining. This change aims to ensure equal employment opportunities and improve economic independence for these workers. Public comments on the proposal are open until January 17, 2025.

What's behind the headline?

Key Insights

Cultural Shift: The proposed rule reflects a significant cultural change regarding the employment of individuals with disabilities, moving towards greater integration and equality.
Economic Impact: Research indicates that abolishing the subminimum wage could lead to increased employment levels for workers with disabilities, enhancing their economic independence.
Political Landscape: The incoming administration's stance on this proposal remains uncertain, as Republican lawmakers have historically opposed efforts to end the exemption.
Public Response: The Labor Department is actively seeking public comments, indicating a desire for community input before finalizing the rule.

Implications

If implemented, this rule could reshape the employment landscape for individuals with disabilities, promoting fair wages and potentially increasing their purchasing power.
The debate surrounding this issue highlights the tension between providing job opportunities and ensuring fair compensation for all workers.

What the papers say

According to Axios, the Labor Department's proposal aims to phase out the subminimum wage, which has been criticized for perpetuating economic inequality among workers with disabilities. Taryn Williams, assistant secretary of labor, stated, "This proposal would help ensure that workers with disabilities have access to equal employment opportunities." In contrast, some parents of adults with disabilities express concern that eliminating the subminimum wage could reduce job opportunities. The New York Times notes that the number of workers earning below minimum wage has significantly decreased, from 296,000 in 2010 to 122,000 in 2019, reflecting a shift in employment practices. The Independent highlights the broader implications of wage policies, emphasizing the need for fair compensation across all sectors. The ruling's impact on small businesses is also noted, with some owners expressing relief at the decision to maintain the previous wage threshold, which they argue helps manage labor costs effectively.

How we got here

The subminimum wage exemption, established in the Fair Labor Standards Act of 1938, allowed employers to pay workers with disabilities less than the federal minimum wage. Recent years have seen a decline in its use, with many states moving to eliminate it altogether.

Go deeper

What are the implications of this rule for disabled workers?
How have states responded to the subminimum wage exemption?
What are the arguments for and against this proposal?

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