Rejection of SubMinimum Wages a Win for People Working with Disabilities
SAN DIEGO, September 19, 2022 (Newswire.com) - Bona Fide Conglomerate, a registered non-profit agency providing jobs for people with severe disabilities, commends the AbilityOne program for its recent decision to end the use of subminimum wages in their federal contracts. The AbilityOne Program is one of the largest employment sources in the United States for people who are blind or have significant disabilities. The subminimum wage allowed federal employers to pay people with disabilities less than the federal minimum wage.
The reform ensures that over 45,000 people working within the program will receive at least the federal minimum wage for their work. Bona Fide Conglomerate INC works within the AbilityOne program to provide jobs for people with significant disabilities. Bona Fide has never paid a subminimum wage.
"Doing away with these subminimum wages will help to reduce exploitation and prevent discrimination," states Bona Fide Project Manager Tina Tyko.
The Fair Labor Standards Act (FLSA) of 1938 established minimum wages affecting employees in the private sector and in Federal, State, and local government. Within this law is the Section 14(c) provision. This provision allowed employers to pay people with disabilities less than the minimum wage.
According to the United States General Accounting Office (GAO), this allowed some contracting agencies to pay their employees less than $2.50 an hour....
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