Tennessee Bans Subminimum Wages for Workers With Disabilities

Employers won’t be allowed to pay below minimum wage to workers with disabilities in Tennessee, under legislation that Gov. Bill Lee signed into law Thursday.

The new law, SB 2042, takes effect July 1 and effectively bars employers from seeking a federal 14(c) waiver from minimum wage law—named for the section of the Fair Labor Standards Act that created the waivers.

• The measure is part of a bipartisan movement to phase out the 14(c) program, which lets employers pay subminimum wage to workers with specific kinds of disabilities, running what’s sometimes called a sheltered workshop.
• A bill pending in ...