Transformation to Competitive Employment Act-would end subminimum wage payments to people with disabilities.

To:        All Members of the National Rehabilitation Association

From:    Fredric Schroeder, Executive Director

Subject: Washington Alert – Transformation to Competitive Employment Act

For over eighty years, federal law has permitted people with disabilities to be paid below the minimum wage; however, the Congress is increasingly questioning whether the practice should continue.

Last week, Senator Bob Casey (D-PA) and Senator Chris Van Hollen (D-MD) introduced the Transformation to Competitive Employment Act (S. 260). Companion legislation was introduced in the House of Representatives (H.R. 873) by Representative Bobby Scott (D-VA) and Representative Cathy McMorris Rodgers (R-WA).

The Transformation to Competitive Employment Act would phase out Section 14(c) of the Fair Labor Standards Act over a six-year period, at which point the authorization for subminimum wage payments would sunset. The Transformation to Competitive Employment Act is the second bill introduced in the 116thCongress that would end subminimum wage payments to people with disabilities.

The Raise the Wage Act (H.R. 582 and S. 150) is the other bill that would eliminate the Section 14(c) subminimum wage provisions of law. H.R. 582 was introduced in the House by Representative Bobby Scott (D-VA), Chair of the House Committee on Education and Labor. Companion legislation (S. 150) was introduced in the Senate by Senator Bernie Sanders (I-VT).

The Raise the Wage Act would end subminimum wage payments to people with disabilities as part of a larger effort to increase the federal minimum wage generally. The Raise the wage Act would increase the federal minimum wage from $7.25 to $15.00 over five years; and would phase out Section 14(c) of the Fair Labor Standards Act over a six year period. The phase-out would begin by prohibiting the Secretary of Labor from issuing new 14(c) subminimum wage certificates to employers that are not currently certificate holders.

Whether either of these bills will pass is anyone’s guess; however, the pressure to end subminimum wages for people with disabilities continues to grow. This will be a central topic at the upcoming Disability Employment Summit. Please plan to attend the Summit and help shape the future of national disability policy.

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