Fair Pay Ahead: DOL’s Push to End Subminimum Wages for Disabled Workers

Written by Quianna Lewis

The U.S. Department of Labor (DOL) announced a proposed rule to eliminate the use of subminimum wages for workers with disabilities under Section 14(c) of the Fair Labor Standards Act (FLSA). Section 14(c) currently allows employers to pay individuals with disabilities less than the federal minimum wage if their disabilities limit their productivity.

The proposed rule would phase out the Section 14(c) certificate program, effectively requiring all employers to pay workers with disabilities at least the federal minimum wage. This change could impact the approximately 45,000 individuals currently employed under these certificates, as well as the businesses and organizations that utilize the program. The DOL has stated that it will provide support and resources to help employers adapt to this transition.

This proposal reflects a broader movement toward workplace equity and inclusion. While the phase-out is designed to create fairer wage practices, employers will need to assess how these changes may affect their operations and budgets. The DOL is inviting public comments on the proposed rule through January 22, 2025. Employers using Section 14(c) certificates are encouraged to participate in the comment process and begin planning for the potential elimination of subminimum wage practices.

If you have questions about how this proposed rule may affect your business or need guidance on compliance, please contact our office. We will continue to monitor developments and provide updates.

This alert is for informational purposes only and does not constitute legal advice.