Feds Float Nixing Preferential Contracts For Subminimum Pay

By Mike LaSusa (October 12, 2021, 5:26 PM EDT) -- The Biden administration has proposed ending preferential contracts with nonprofits that employ blind or seriously disabled workers if the nonprofits take advantage of a law allowing them to pay those employees less than the standard minimum wage.

The U.S. AbilityOne Commission, an independent federal agency, issued a notice of proposed rulemaking published in the Federal Register Tuesday that would bar the federal government from giving contracting preference to employers that use Section 14(c) of the Fair Labor Standards Act. That provision allows employers to pay workers with physical or mental disabilities at rates below the federal wage floor of $7.25 per...

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