Senate committee reviews bill to revoke state authority to recommend subminimum wages for people with disabilities

S.6 would strip the Vermont Commissioner of Labor of the power to recommend certificates under federal law that allow employers to pay subminimum wages to people with disabilities, a change supporters say would align state code with Vermont's nondiscrimination laws.

The bill's sponsor told the committee the authority exists under the federal Fair Labor Standards Act and that Vermont has not in practice requested such certificates. "S.6 is to repeal the authority that the commissioner of labor has right now to recommend a subminimum wage for individuals with a disability," the sponsor said. Committee members noted the repeal would bring state law into closer alignment with the Fair Employment Practices Act's protections against wage discrimination based on disability.

Members asked historical and practical questions about the statute: when the authority was added and why, whether the authority facilitated employment opportunities historically, and what federal rulemaking has done or tried to do on the matter. One committee member traced the origin of the federal-era policy to the 1950s, noting it was originally framed as a mechanism to encourage hiring of veterans and injured workers after World War II. Committee members emphasized they would hear from the labor commissioner on Thursday to explain how the authority has (or has not) been used and whether revocation would have unintended consequences.

Committee members also raised policy trade-offs. One member asked whether revoking the authority might remove some limited, transitional employment opportunities; others responded that Vermont already prohibits wage discrimination against people with disabilities and that many other states have revoked the recommendation authority. A member requested information about the impact on Social Security Disability Insurance (SSDI) recipients who try to work while maintaining benefits.

The committee did not take action on S.6 at this meeting. Members agreed to invite the commissioner to testify on Thursday and to seek any additional data on federal steps or state experiences in other jurisdictions before advancing the bill.