Biden Proposes Rule to End Subminimum Wage

The Biden administration has proposed a rule to phase out the practice of paying workers with disabilities less than the federal minimum wage, a practice allowed under Section 14(c) of the Fair Labor Standards Act since 1938. This rule, now open for public comment until January 17, 2025, seeks to end the issuance of new certificates that permit subminimum wages and phase out existing ones over three years. Advocates argue that this change will promote economic independence and reduce poverty among disabled workers, while critics worry it may decrease job opportunities. The proposal reflects significant changes in employment opportunities for people with disabilities due to societal and legal advancements. Many states have already abolished or are phasing out the subminimum wage, and the Labor Department expects workers currently paid less to transition to full-wage jobs. However, the incoming Trump administration might challenge the rule, which could lead to legal battles over its implementation.