South Carolina Abolishes Loophole Allowing Payment Less Than Minimum Wage to Disabled Workers
COLUMBIA, S.C. — A new era of fair wages has begun in South Carolina, as a law banning subminimum wage payments goes into effect. The law, implemented earlier this month, marks an important milestone for labor right advocates, specifically those advocating for people with disabilities. Prior to this law, people with disabilities could legally be paid as little as five cents per hour under certain circumstances, a practice now abolished in the state.
End of Subminimum Wage in Sight
A loophole in the Fair Labor Standards Act of 1938 enabled employers with a waiver approved by the U.S. Department of Labor to pay workers with disabilities less than the federal minimum wage. This definition encompassed workers “whose earning or productive capacity is impaired by age, physical or mental deficiency, or injury.” Now, South Carolina has joined 13 other state in the nation making this practice illegal.
The Impact of Subminimum Wage
According to Sandy Jordan, Vice President and Chief Community Integration Program Officer at Able South Carolina, paying employees less than minimum wage often trapped them in the cycle of poverty. He stated, “If you’re making subminimum wage, less than minimum wage, then you’re going to be on some government assistance programs, you’re going to be in poverty and really have no way out.”
Working Toward Fair Employment
The bill eliminating subminimum wage was signed into law by Governor Henry McMaster in 2022. However, a two-year phase-out period was required to help those impacted transition into regular employment or other opportunities. This period ended at the start of August, making it illegal to pay a worker less than the minimum wage in South Carolina.
Significance of the Reform
The enactment of this law is not just a triumph for worker rights but also a beacon of progress for South Carolina. “It’s a pretty progressive bill for South Carolina and really put us on the forefront to show other southern states that this is possible,” Jordan added. A new “Employment First Commission” will soon be established under the law to continue efforts toward supporting more people with disabilities to work.
The Road Ahead
While this reform marks a major step towards equality in the labor market, advocates acknowledge that there is still work to be done. Beth Franco, the Executive Director of Disability Rights South Carolina, pointed out, “We still have challenges to address, but this is a very big deal for people with disabilities in South Carolina.”
In the last two years since South Carolina passed this law, several other states have also enacted legislation to abolish subminimum wage practices. It is expected that this trend will provide momentum for other states to follow suit, reforming the outdated subminimum wage practices.
