Glossary > Employment Law > Wage And Hour Laws > Minimum Wage Requirements

Subminimum Wage

Subminimum wage refers to a wage rate that is less than the standard minimum wage set by federal or state law for certain categories of workers, often individuals with disabilities or youth workers. This lower wage is allowed under specific circumstances with regulations in place to ensure fair treatment of workers.

Example #1

For example, a company may pay a worker with a disability a subminimum wage due to their reduced work productivity compared to non-disabled workers.

Example #2

Another example is employing minors at a pay rate below the standard minimum wage for specific jobs, such as student learners or apprentices.

Misuse

Misuse of subminimum wage can lead to exploitation of vulnerable workers, such as individuals with disabilities, by paying them significantly less than the minimum wage. This practice can perpetuate inequality and create unjust working conditions, undermining the principles of fair compensation and equal opportunities in the workplace.

Benefits

One benefit of subminimum wage is that it can provide employment opportunities for individuals who may face challenges in performing certain tasks at the same productivity level as other workers. By allowing for a differentiated wage scale, it can incentivize employers to hire and train individuals who may otherwise face barriers to entering the workforce.

Conclusion

While subminimum wage can serve as a tool to facilitate employment for certain groups, it is essential to closely monitor its implementation to prevent exploitation and ensure that workers are fairly compensated for their contributions. Upholding transparency and fairness in the application of subminimum wage is crucial to safeguarding the rights and dignity of all workers.

Last Modified: 4/30/2024