US moves to phase out minimum-wage waiver for disabled workers

The US Department of Labor announced a proposed rule that would phase out the issuance of certificates allowing employers to pay some workers with disabilities less than the federal minimum wage, currently $7.25 per hour.

The rule proposes to gradually eliminate certificates employers can apply for under the Fair Labor Standards Act of 1938 that allow them to pay certain workers with disabilities less than the federal minimum wage, reports Xinhua news agency.

The department, which began a "comprehensive review" of the program last year, said it proposes to discontinue the issuance of new certificates and establish a three-year phase-out period for employers with existing certificates once a final rule becomes effective.

"One of the guiding principles of the American workplace is that a hard day's work deserves a fair day's pay, and this proposal ensures that principle includes workers with disabilities," said Wage and Hour Administrator Jessica Looman in a news release issued by the Department of Labor.

Taryn Williams, assistant secretary of labour for disability employment policy, said the proposal would help ensure that workers with disabilities "have access to equal employment opportunities while reinforcing our fundamental belief that all workers deserve fair competition for their contribution."

As of May, about 800 employers held certificates allowing them to pay workers less than minimum wage, affecting roughly 40,000 workers, according to Kristin Garcia, deputy administrator of the Labor Department's wage and hour division.