Increase Earnings and Employment Opportunities for People With Disabilities

Background

In March 2019, SourceAmerica's Board of Directors adopted a position on the use of special minimum wage certificates under Section of 14(c) of the Fair Labor Standards Act as it relates to AbilityOne employees. 

It reads as follows:

SourceAmerica is fully committed to maximum pay for people with disabilities and supports the elimination of Section 14(c) of the Fair Labor Standards Act for all AbilityOne employees. As such, SourceAmerica will leverage the knowledge and experience of its nonprofit network and will invest significant resources toward a transition support program, which will include:

• Financial assistance to transitioning nonprofits;
• Enhanced productivity engineering supports; and
• Research and data collection that will inform Congress about the implications of the transition for individuals and communities across the nation. 

In 2022, the U.S. AbilityOne Commission finalized and adopted a regulatory requirement ending the payment of subminimum wages on AbilityOne contracts. NPAs are required to certify that they will not use certificates authorized under Section 14(c) of the Fair Labor Standards to pay employees on AbilityOne contracts.

Policy Recommendation

SourceAmerica supports legislation that would phase out Section 14(c) of the Fair Labor Standards Act with a thoughtful transition period to ensure that individuals currently earning wages under Section 14(c) are provided with supports to remain employed. Specifically, SourceAmerica supports the Transformation to Competitive Integrated Employment Act introduced by Senator Bob Casey in the 118th Congress. 

See how SourceAmeica is working with Congress to address this issue: Transformation to Competitive Integrated Employment Act