The US Labor Department will stop allowing employers to pay disabled workers less
What happened
The US Labor Department plans to end a program that lets employers pay disabled workers less than minimum wage. This means employers will no longer get special certificates to pay subminimum wages based on productivity.
Why it matters
For decades, some employers could pay disabled workers less than minimum wage, arguing it created job opportunities. The Labor Department now says this is no longer true, citing expanded legal protections and employment options for people with disabilities. This change removes a long-standing exception in labor law, forcing all employers to meet minimum wage standards for these workers.
The signal
Watch for the final rule and the timeline for phasing out existing subminimum wage certificates, and whether employers claim job losses as a result.