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Eliminating Subminimum Wage

Posted on March 28, 2017

Eliminating Subminimum Wage

To amend the Fair Labor Standards Act of 1938 to better align certain provisions of such Act with Federal disability laws and policies intended to remove societal and institutional barriers to employment opportunities for people with disabilities

Synopsis:

The Transitioning to Integrated and Meaningful Employment (TIME) Act would stop any employer paying employees with disabilities wages lower than the federal minimum wage. Authorized by section 14(c) of the 1938 Fair Labor Standards Act (FLSA), the Department of Labor can currently grant waivers that allow for-profit and nonprofit organizations to set their own wage rate for employees with disabilities. There is no bottom limit. The TIME Act would stop the Department of Labor from granting new waivers. Businesses on current waivers could renew them annually for six years, under the requirement that they help plan employees’ transitions after their jobs end. Supporters of the TIME Act contend that unequal pay is unfair and discriminatory. They also criticize the 14(c) facilities, which they call “sheltered workshops,” claiming that administrators rarely assign tasks that match employees’ abilities. By contrast, opponents say the program, which they call “center-based employment,” offers social time and the opportunity to work to people who might not find employment elsewhere. They also predict the TIME Act would increase unemployment, not least because closing 14(c) facilities would leave former workers jobless.


U.S. Rep. Gregg Harper
H.R. 1377 lead sponsor

Supporters:

Reps. Gregg Harper (R-Miss.), Eric Swalwell (D-Calif.), Jenniffer Gonzalez-Colon (R-Puerto Rico-At Large), Marcy Kaptur (D-Ohio), Michelle Lujan (D-N.M.); National Federation of the Blind, Autistic Self-Advocacy Network, The Arc, Opportunity Works, National Disability Rights Network, National Council on Disability et al.

Opponents:

A Voice of Reason, American Congress of Community Supports and Employment Services (ACCSES), SourceAmerica, National Council of SourceAmerica Employers.

Links to Additional Resources:

H.R. 1377

Actions Overview

Rep. Gregg Harper op-ed: “Let’s unlock the untapped potential among millions of disabled people”

ACCSES analysis of H.R. 1377

Fair Labor Standards Act of 1938

Bottom Dollars documentary on subminimum wage

Article “Mother, daughter advocate for disabled people” in opposition of H.R. 1377

Huffington Post article from 2015

This entry was posted in and tagged 1377, deinstitutionalization, Employment & Life Skills, hr 1377, hr1377, sheltered workshops.

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