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Final Cover
1
Submin Wages Report - Final Formatted Copy 9.11.20.pdf
3
ACKNOWLEDGEMENTS
9
EXECUTIVE SUMMARY
10
Findings and Recommendations
19
Highlighted Findings:
19
Highlighted Recommendations:
20
Briefing Agenda
21
CHAPTER 1: APPLICABLE LAW & POLICY CONSIDERATIONS
23
Legislative History and Provisions of Section 14(c)
23
Employer Requirements
25
Types of 14(c) Certificate Holders
26
Time Trials and Piece Rates
32
Developments in Civil Rights Protections
33
The Fourteenth Amendment’s Equal Protection Clause
37
The Americans With Disabilities Act
38
Integration Mandate
40
Wage Discrimination Issues
46
Developmental Disabilities Assistance and Bill of Rights Act of 2000
52
Workforce Innovation and Opportunity Act of 2014
53
Alternative Policies and Reforms to Section 14(c)
59
Phasing Out 14(c) with Transformation to Competitive Integrated Employment Act
60
Raising Subminimum Wages Over Time
67
Federal Tax Credits or Other Federal Funding
71
Employment First Initiatives
73
Enhancing 14(c)
78
CHAPTER 2: DATA AND ANALYSIS
81
Summary of Currently Available Data
81
Data Focusing on People with Disabilities and Their Employment
85
Employment and Labor Force Participation Rates of People with Disabilities
86
Available Intersectional Data
88
Data about 14(c) Certificate Holders and Employees with Disabilities
90
Data about Transitioning to Competitive Integrated Employment
94
Data Received From Public Comments
109
Public Comments Favoring Section 14(c)
113
Comments Against 14(c)
120
Comments Regarding Transition or Other Policies
122
CHAPTER 3: THE FEDERAL GOVERNMENT’S ROLE AND RESPONSIBILITIES
125
Department of Labor Wage and Hour Division
125
Department of Justice
145
Guidance and Technical Assistance Regarding the ADA Integration Mandate & Informed Choice
146
Investigations and Litigation
150
Equal Employment Opportunity Commission (EEOC)
153
Centers for Medicare & Medicaid Services – Department of Health and Human Services: Home and Community Based Settings Rule
154
U.S. AbilityOne Commission
159
CHAPTER 4: STATES AND SUBMINIMUM WAGE LAWS
163
Employment Rates
164
Trends in Wages
167
Integration
169
States that Allow Subminimum Wages under Section 14(c)
170
Overview
170
Virginia (Site Visit)
171
Tour
172
Roundtable
174
Interviews:
180
Arizona
188
Missouri
193
State Initiatives to Phase Out Subminimum Wages Permitted under Section 14(c) of the Fair Labor Standards Act
200
Overview of States that Are Eliminating or Have Eliminated Subminimum Wages
200
Vermont (Site Visit)
202
Tour
205
Roundtable
210
Interviews:
219
Maine
230
Oregon
234
CHAPTER 5: FINDINGS AND RECOMMENDATIONS
241
Findings
241
Recommendations
245
Commissioners’ Statements, Dissents, and Rebuttals
247
Statement of Commissioner David Kladney
247
Dissenting Statement and Rebuttal of Commissioner Gail L. Heriot
252
Dissenting Statement of Commissioner Peter N. Kirsanow (Commissioner Heriot Concurring)
259
Appendix A: Settlement Agreements Revoking 14(c) Certificates
297
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