AbilityOne Commission Final Rule on Subminimum Wages

Last week, the U.S. AbilityOne Commission issued a final rule prohibiting paying subminimum wages on AbilityOne Program contracts. Published on July 21, 2022, the rule requires nonprofit agencies seeking both initial and continuing qualifications to participate in the program to certify that, when paying employees on AbilityOne contracts, they will not use certificates authorized under section 14(c) of the Fair Labor Standards Act (FLSA). Under the rule, individuals with disabilities working on AbilityOne contracts will earn at least the federal minimum wage, applicable local or state minimum wage, or applicable prevailing wage—whichever is highest.