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DOL Takes Aim at Subminimum Pay for Workers With Disabilities

June 16, 2022, 7:00 PM

The US Department of Labor is cracking down on enforcing how employers can pay workers with disabilities a subminimum wage, issuing new guidance on the matter and filing a lawsuit alleging violations against a Montana employer.

Companies can legally pay workers with disabilities a subminimum wage under the Fair Labor Standards Act, as long as they inform workers of their rights while they’re being paid a subminimum wage—a requirement of Section 511 of the Rehabilitation Act. If they fail to do so, workers must be paid a minimum wage.

The agency issued updated guidance to assist compliance with the Rehabilitation ...