As of Friday, Alaskan businesses will no longer be allowed to pay disabled workersÂ less than the minimum wage, which is currently $9.84 an hour.
â€śWorkers who experience disabilities are valued members of Alaskaâ€™s workforce,â€ť said the stateâ€™sÂ Department of Labor and Workforce Development Acting Commissioner Greg Cashen, in aÂ press release. â€śThey deserve minimum wage protections as much as any other Alaskan worker.â€ť
The state announced last week it would repeal the regulation first put in place in 1978. Alaska joins New Hampshire and Maryland as the first states to get rid of sub-minimum wage for employees with disabilities, an act which is entirely legal under federal law, and has been since 1938 when the Fair Labor Standards Act was implemented.
The minimum wage exception was initially created to help those with disabilities get jobs, but despite its intentions, the legislation still fell short. Disability advocates argue the law is outdated and that many disabled individuals can succeed in jobs earning minimum wage or more, and that no other class of people faces this kind of government-sanctioned wage discrimination. In addition to being paid a sub-minimum wage, employees with disabilities often perform their jobs in what are called â€śsheltered workshops.â€ť ThisÂ term is generally used to describe facilities that employ people with disabilities exclusively or primarily, but has beenÂ interpretedÂ by disability advocates as a form of segregation in the workplace.
Goodwill Industries is arguably one of the biggest offenders when it comes to exploiting this kind of wage discrimination. The company is one of theÂ largest employersÂ for people with disabilities, many of whom are contracted by Goodwill through the governmentâ€™sÂ AbilityOne program, which ensures contracts are set aside for places that employ workers with disabilities.
Goodwill, however, is aÂ $5.59 billionÂ organization, and many argue they can afford to pay all of their workers a fair wage.
â€śYouâ€™ve got entities that are doing quite well, that are raking in donations, that get government contracts to make everything from military uniforms toâ€¦pens to whatever,â€ť says Chris Danielsen, a spokesperson for the National Federation of the Blind toldÂ The Nation. â€śThey get these contracts, and theyâ€™re paying their workers less than the minimum wage.â€ť
Goodwillâ€™s own CEO, Jim Gibbons, is blind. In 2015, he raked inÂ more thanÂ $712,000Â in salary and additional compensation while his disabled employees were making less than $9 an hour in some states.
In aÂ comment to NBC News in 2013, Gibbons defended his salary and the million dollar salaries of other Goodwill executives. At the time, Goodwillâ€™s total compensation for all its franchise CEOs was more than $30 million.
â€śThese leaders are having a great impact in terms of new solutions, in terms of innovation, and in terms of job creation,â€ť he said.
Speaking of those employees with disabilities working for less than minimum wage, he punted.Â â€śItâ€™s typically not about their livelihood. Itâ€™s about their fulfillment. Itâ€™s about being a part of something. And itâ€™s probably a small part of their overall program,â€ť he added.
Twenty-two percent of Americans live with some form of disability and 13 percent of those experience mobility issues, such as walking or climbing stairs,Â according toÂ the Centers for Disease Control and Prevention (CDC). The share of people with disabilities is higher among women and people of color: according to the CDC, one in four women have a disability and three in 10 non-Latinx Black people have a disability.
One in three adults who are able to work have reported having a disability, and half of those making less than $15,000 a year have reported a disability as well, according to the CDCâ€™s numbers.
This article was originally published at ThinkProgress on February 20, 2018. Reprinted with permission.
About the Author:Â Rebekah Entralgo is a reporter at ThinkProgress. Previously she was a news assistant on the NPR Business Desk. She has also worked for NPR member stations WFSU in Tallahassee and WLRN in Miami.