Research Finds No Significant Negative Impact of Repealing a Depression-Era Law Allowing Companies to Pay Workers with Disabilities Below Minimum Wage
Perelman School of Medicine at the University of PennsylvaniaDebate continues to swirl nationally on the fate of a practice born of an 86-year-old federal statute allowing companies to pay workers with disabilities subminimum wages: anything below the federal minimum wage of $7.25 an hour, but for some roles as little as 25-cents-per-hour. Those in favor of repealing this statute highlight assumptions about reduced productivity along with the unfairness of this wage level—often used elsewhere to pay, for example, food service workers who typically make additional wages in tips. Those against repeal have voiced concerns that, without subminimum wage laws, employment opportunities for workers with disabilities may dwindle.