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Disabled Workers Sue Oscars Swag Bag Company for Wage Theft

The suit shines light on the little-known U.S. law that lets companies pay disabled workers less than minimum wage

91st Oscars - Oscar Week: Animated Features
Photographer: Rodin Eckenroth/Getty Images North America

A New Mexico non-profit that's assembled gift bags for the Oscars and Grammys is facing a class action lawsuit brought by disabled employees who say it pays as little as 18 cents an hour.

The suit is the latest to challenge a little-known—but often legal—practice of segregating disabled workers and paying them less than the federal minimum wage. In it, current and former employees accuse the Adelante Development Center of underpaying its developmentally disabled employees in violation of Albuquerque and New Mexico wage laws.