Bill would make Ohio employers pay people with disabilities minimum wage

Damien, a worker at Better Living Home Health, stacks plastic trays that will be boxed and shipped away for a company. He is paid through the federal 14c program. MARSHALL GORBY\STAFF

Damien, a worker at Better Living Home Health, stacks plastic trays that will be boxed and shipped away for a company. He is paid through the federal 14c program. MARSHALL GORBY\STAFF

As the federal government weighs the future of a program that allows some employers to pay workers with disabilities less than minimum wage, a Dayton area lawmaker has proposed phasing out the practice in Ohio over the next five years.

“We have a workforce that needs to be paid a same level, at least the minimum wage, as everyone else,” said state Rep. Tom Young, R-Washington Twp.

Young is a primary sponsor of House Bill 225, which is a revival of previous efforts in the Ohio House to make changes to Ohio’s participation in the federal 14(c) program.

Section 14(c), which is a part of the Fair Labor Standards Act of 1938, permits employers to pay subminimum wages to workers whose disabilities impact their productivity for the specific work performed, but only if the employers hold a special certificate under the U.S. Department of Labor’s hours and wages division.

The Ohio bill would prohibit the Ohio Department of Commerce from issuing or renewing 14(c) certificates. It would also require, no later than 15 months after the bill’s effective date, for each employer holding a state license or federal 14(c) certificate authorizing the payment of subminimum wages to submit to the director of Developmental Disabilities a transition plan that addresses phasing out subminimum wages and supporting employees with disabilities.

In Ohio, 41 federal certificates have been issued to organizations like community rehabilitation programs.

Tom Young is Chair of the Higher Education Committee in the Ohio House of Representatives and represents 37th House District. (CONTRIBUTED)

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One of these organizations, Better Living Home Health, last year told the Dayton Daily News that the elimination of the 14(c) program would reduce its ability to give work to more than a dozen individuals with disabilities who cannot work a typical shift.

Young said most Ohio employers he‘s seen are “very, very good” in their ethics in their hiring of disabled workers.

“This is just raising the consciousness that we have a workforce and they should be treated accordingly. We‘re approaching this with a very positive attitude, a thankful attitude, toward businesses who absolutely care and are doing a great job. We just want to make sure that we protect that workforce from people who aren’t (as ethical).”

The bill is progressing through the Ohio House‘s Commerce and Labor Committee.

The 14(c) program has been criticized by advocacy groups for paying people with disabilities, at some establishments, significantly less than the federal minimum wage.

Jan Dougherty, co-president of the Ohio chapter of the Association of People Supporting Employment First (APSE), said she and others on the 14(c) Task Force are excited to see the legislation progress.

“Since launching this effort in 2018, the momentum has only grown stronger with each General Assembly, and we remain steadfast in our commitment to seeing this bill through,” Dougherty said. “It’s important to recognize that Ohio has a strong infrastructure in place to support individuals and families. House Bill 225 builds on that foundation by bringing the entire system together under a unified framework to support individuals and families in the way that should already be happening.”

But opponents of H.B. 225 say the 14(c) program exists to ensure people with complex needs can still find work.

Joe Moore, an Ohioan whose son has disabilities, testified against the bill in May, arguing that the phase-out of subminimum wage would box out vulnerable populations from being able to earn a wage.

“In many cases these individuals are unable to advocate for themselves. They can’t write you a letter, send you an email, speak with you on the phone or offer in-person testimony,” Moore said. “As family members, friends and their legislative representatives in Columbus, it’s our responsibility to listen to what they cannot tell us.”

Federal officials during the Biden Administration reviewed the 14(c) certificate program and have proposed phasing out the program on a national scale. A spokesperson from the federal labor department did not return a request for comment about the status of this proposed rule.

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