HR-8736-119
Ordered to be Reported (Amended) by the Yeas and Nays: 18 - 15.
Sponsored by Glenn Grothman (R-WI)
What it does
This bill would amend Section 511 of the Rehabilitation Act of 1973 to allow employers holding special certificates under the Fair Labor Standards Act to pay subminimum wages (below the federal minimum) to adults with disabilities of any age, provided the individual voluntarily chooses to accept such employment. Currently, Section 511 restricts subminimum wage employment for individuals aged 24 and younger unless specific counseling and referral conditions are met. The bill would remove the age cap entirely, extend the counseling and referral requirements to individuals 17 and younger only, and add a new exception allowing employers to satisfy counseling requirements if a state agency fails to respond after documented outreach efforts.
Who benefits
Adults with disabilities of all ages who prefer subminimum wage employment in sheltered workshop settings over other available options. Employers holding Section 14(c) certificates under the Fair Labor Standards Act, who would gain access to a broader pool of workers at subminimum wages. Nonprofit organizations that operate sheltered workshops, which may face fewer compliance burdens. Families or caregivers of adults with disabilities who value structured, supervised work environments. State vocational rehabilitation agencies, which would face reduced mandatory counseling obligations for adults 18 and older.
Who is hurt
Adults with disabilities who may face reduced pressure on employers and state agencies to offer competitive integrated employment opportunities. Disability rights advocacy organizations that have worked toward eliminating subminimum wages. Workers without disabilities who compete for jobs in sectors where sheltered workshops operate, as subminimum wage labor may create a cost disadvantage. State vocational rehabilitation agencies and counselors whose role in guiding adults with disabilities toward competitive employment would be reduced. Taxpayers who fund vocational rehabilitation programs that may be bypassed under the new employer exception.
Supporters argue
Supporters argue that the current law paternalistically restricts the employment choices of adults with disabilities by imposing age-based barriers that do not apply to any other group of workers. They contend that many adults with significant disabilities genuinely prefer the structured, supportive environment of sheltered workshops and that forcing them through mandatory counseling processes — or denying them access to subminimum wage jobs entirely — removes meaningful options from people who have the right to make their own employment decisions. They further argue that the bill's voluntary consent requirement and the retention of counseling requirements for minors provide adequate safeguards.
Opponents argue
Opponents argue that subminimum wages — which can legally be set as low as a few cents per hour under Section 14(c) — represent an exploitative system that has historically trapped people with disabilities in segregated settings rather than supporting their transition to competitive integrated employment. They contend that "voluntary" consent is difficult to verify in practice given power imbalances between employers and workers with cognitive or developmental disabilities, and that removing the age cap and weakening counseling requirements eliminates the primary federal mechanism designed to ensure workers are informed of better alternatives before accepting subminimum pay.
Constitutional context
This bill modifies an existing federal statute regulating employment conditions, which falls squarely within Congress's Commerce Clause authority (Art. I, §8, cl. 3). No active constitutional tension is raised, as the bill does not delegate new rulemaking authority to agencies or implicate recent doctrinal shifts; it directly amends statutory text.
Checks and balances
Congress directly modifies the statutory conditions for subminimum wage employment; the Department of Labor retains authority to enforce Section 14(c) certificate requirements under the Fair Labor Standards Act, and state vocational rehabilitation agencies retain a role for individuals 17 and younger.
Historical precedent
Section 511 of the Rehabilitation Act was added by the Workforce Innovation and Opportunity Act (WIOA) in 2014, which first imposed age-based restrictions and counseling requirements on subminimum wage employment as a step toward phasing out the practice for younger workers.