Print PDF

From USA Today:

The executive action by Obama, who is pressing Congress to pass a minimum wage hike that would cover all workers, could potentially affect tens of thousands of low-wage earners who do janitorial, dish-washing and other tasks for the federal government through contractors.

It remains uncertain whether the executive order will address the issue of disabled workers under a government program that dates to 1938 and allows employers to pay some subminimum wages — sometimes for a fraction of the prevailing minimum wage.

[…]

Under Section 14 (c), employers can obtain special minimum-wage certificates from the Labor Department. The certificates give employers the right to pay disabled workers, many of whom would have difficulty finding work in the mainstream job market, according to their abilities. For example, if an employee produces 50% of what a non-disabled person produces, then he or she receives 50% of what that person is paid.

About 95% of roughly 420,000 workers employed under 14(c), worked in segregated work environments known as sheltered workshops, performing basic manual work that often pays by the piece. (Advocacy groups estimate fewer than 50,000 work for government contractors.)

Companies participating in the program also receive preference when it comes to federal contract awards and can receive Medicaid funds to pay for support services for the employees. Some states also provide funding to sheltered workshops

(23)