Upper Marlboro, Md. — Melwood, a leading advocate, employer and service provider for people with disabilities, proudly supports the Transformation to Competitive Integrated Employment Act (TCIEA), introduced today by Senators Steve Daines (R-Mont.) and Chris Van Hollen (D-Md.) in the Senate and Rep. Pete Sessions (R-Texas) and Ranking Member Bobby Scott (D-Va.) in the House.
The bipartisan legislation would eliminate Section 14(c) of the Fair Labor Standards Act, an outdated provision that allows employers to pay workers with disabilities less than the federal minimum wage—sometimes as little as 5 cents per hour. More than 40,000 Americans with disabilities are still working under these conditions. The legislation includes transition funding to help providers transform their business models, minimizing potential job displacement while ensuring continued supports, resources, and access to work for people with disabilities.
“We know there is a better way because we’ve lived it,” said Larysa Kautz, president & CEO of Melwood. “Melwood proved nearly a decade ago that you can do the right thing while achieving business success. Today, we are a family of companies that serve more than 3,000 individuals annually while continuing to grow and innovate. As one of the largest Mid-Atlantic employers of people with disabilities, largely through the AbilityOne program, we’ve seen firsthand how this legislation recognizes the economic opportunity that good-paying employment creates—both for individuals seeking financial independence and for the broader economy. This thoughtful legislation ensures providers have the support needed for a smooth transition so that no one is left behind.”
In 2015, Melwood voluntarily gave up its 14(c) certificate and transitioned all employees to competitive, fair wages while maintaining employment. Morale improved, productivity increased, and many workers were able—for the first time—to provide for their families with dignity.
Melwood has also played a pivotal role in broader policy change—helping lead successful efforts to eliminate subminimum wages in Maryland and Virginia, while also doing our part for the community, helping similar nonprofits transition to competitive wages for employees. In every case, Melwood has shown that doing what’s right also makes good business sense.
Seventeen states have already either successfully phased out or are in the process of phasing out subminimum wages, recognizing the economic potential and imperative of investing in our workforce. These states continue to maintain strong, growing economies while ensuring fair compensation for workers with disabilities.
“The TCIEA is a critical step toward dignity and equity for all American workers,” Kautz said. “We are proud to stand alongside champions in Congress to finally end this harmful policy and open the door to a stronger, more productive workforce that maximizes the potential of every American.”
