BILL NUMBER: S28C
SPONSOR: SKOUFIS
 
TITLE OF BILL:
An act to amend the labor law, in relation to the minimum wage for
employees with disabilities
 
PURPOSE:
The purpose of the bill is to eliminate the subminimum wage for employ-
ees based on their age or disability.
 
SUMMARY OF PROVISIONS:
Section 1: Amends subdivision 5 of section 651 of the labor law to
repeal the exclusion of individuals working in or for a religious,
educational, or charitable institution whose earning capacity is
impaired by age or by physical or mental deficiency or injury as
"employees" for purposes of payment of the minimum wage. Also defines
"special certificate."
Section 2: Amends subdivision 5 of section 655 of the labor law to
repeal the ability of the Commissioner of Labor to promulgate regu-
lations for the employment of individuals whose earning capacity is
affected or impaired by youth or age or by physical or mental deficiency
or injury at wages lower than the minimum wage.
Section 3: Adds a new subdivision 7 to Section 652 of the labor law to
state that no employer shall pay an employee with a disability less than
minimum wage if the employer is issued a new special certificate or has
their certificate renewed.
Section 4: Amends section 652 of subdivision 7 of the labor law.
Section %: Sets the effective date.
 
JUSTIFICATION:
In 1938, Congress passed the Fair Labor Standards Act (FLSA) as part of
the New Deal, introducing key worker protections such as the federal
minimum wage. Section 14(c) of the FLSA was included to provide employ-
ment opportunities for disabled soldiers returning from World War I and
World War II. Over time, however, the focus shifted away from veterans,
and Section 14(c) now remains a legal mechanism for paying workers with
disabilities less than the minimum wage.
The Americans with Disabilities Act (ADA) of 1990 was a landmark piece
of legislation that, for the first time, made it illegal for employers
to discriminate against workers with disabilities. While the ADA has
brought critical protections to disabled Americans, it remains incom-
plete in addressing systemic discrimination in the workplace, partic-
ularly the continued use of subminimum wages. Under Section 14(c) of
the FLSA, many disability providers employ workers in "sheltered work-
shops," where they are often paid pennies on the dollar for their labor.
Several states, including Alaska, Illinois, Maryland, and New Hampshire,
have abolished this outdated practice by ending the payment of submini-
mum wages. This bill seeks to follow their lead and ensure that all
workers, regardless of disability or age, receive fair pay and equitable
treatment under the law.
 
LEGISLATIVE HISTORY:
Senate
2019: S4018-A, Advanced to Third Reading
2020: S4018-A,Referred to Labor
2021: S1828, Referred to Labor
2022: S1828, Referred to Labor
2023: S3434, Referred to Labor
2024: S3434, ReportedandCommitted to Disabilities
Assembly
2019: A7077-A, Amended, and Recommitted to Labor
2020: A7077-A,Referred to Codes
2021: A3103, Referred to Labor
2022: A3103, Referred to Labor
2023: A4347, Referred to Labor
2024: A4347, Referred to Labor
 
FISCALPLICATIONS:
None.
 
EFFECTIVE DATE:
This act shall take effect immediately; provided, however, sections one,
two, and four of this act shall take effect December 31, 2027; and
provided further, however, section three of this act shall 15 take
effect December 31, 2025. Effective immediately, the addition, amendment
and/or repeal of any rule or regulation by the department of labor
necessary for the implementation of this act on its effective date are
authorized to be made on or before such effective date.

Statutes affected:
S28: 651 labor law, 651(5) labor law, 655 labor law, 655(5) labor law
S28A: 651 labor law, 651(5) labor law, 655 labor law, 655(5) labor law
S28B: 651 labor law, 651(5) labor law, 655 labor law, 655(5) labor law
S28C: 651 labor law, 651(5) labor law, 655 labor law, 655(5) labor law, 652 labor law, 652(7) labor law