Virginia is putting measures in place to ensure that employees with disabilities get paid the same amount as anyone else – and while the law is well-meaning, one local non-profit leader fears that the increase in minimum wage may eventually force small businesses and organizations to eliminate hiring disabled people altogether.
In the past, companies hiring employees with disabilities have been able to pay the employee less than the minimum wage through an exclusion of the Virginia Minimum Wage Act. The national average for workers being paid a subminimum wage is only $3.34 per hour. The rate is based on how productive the disabled employee is at a task compared to an employee without a disability.
On July 1, new legislation in Virginia (HB 1924) will mean no new exclusions for companies will be granted in Virginia to authorize subminimum wages. Companies that already have a certificate prior to July 1 that pay a subminimum wage will have until 2030 to bring the pay rate up to Virginia’s minimum wage. After July 1, 2030, the exclusion will be eliminated entirely.
Vector Industries CEO Chrissy Johnston said that Virginia has created a “double whammy.” While eliminating the certificate was good, she said, raising the minimum wage “so high and so fast will likely have a negative effect down the road.”
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