House Education Committee Considers Bill to Expand Subminimum Wage
On Thursday, the House Committee on Education and the Workforce held a markup of H.R. 8736, the Restoration of Employment Choice for Adults with Disabilities Act. The bill allows employers to pay workers with disabilities aged 18-24 below the minimum wage (Section 14 (c) of the Fair Labor Standards Act) without first completing all required transition and vocational rehabilitation opportunities. The legislation also introduces additional exemptions from counseling and referral requirements for individuals already employed in subminimum wage positions. Bill sponsor Rep. Glenn Grothman (D-WI) argued that by removing requirements that impede participants from immediately qualifying for a 14(c) certificate, the legislation would eliminate federal barriers to employment and expand work opportunities for individuals with disabilities who may otherwise remain unemployed, particularly those participating in sheltered workshop settings focused on light manufacturing and packaging work.
Opponents of the bill, led by Ranking Member Bobby Scott (D-VA), argued the bill weakens existing worker protections by expanding subminimum wage access, including for individuals under age 24, and undermines the goals of the Americans with Disabilities Act (ADA) by allowing disabled workers to be paid less than minimum wage. Representatives Lucy McBath (D-GA) and Suzanne Bonamici (D-OR) criticized the inequities of the 14(c) system, citing examples of workers earning only cents per hour and emphasizing that dignity and inclusion require access to competitive, integrated employment (CIE) at fair wages. CEC’s Division on Career Development and Transition has advocated for the Transformation to Competitive Integrated Employment Act, which would phase out 14(c) certificates.
The bill would also provide funding to states and service providers to make the shift from subminimum-wage practices toward research-based approaches to ensure CIE outcomes for employees with disabilities. Attempts to amend H.R. 8736 by adding transition services and competitive integrated employment opportunities failed, and the Committee approved the bill along party lines. The future of the bill is unclear.
Watch the markup discussion here.