DOL’s Wage and Hour Division published a proposed rule December 4 that would phase out the Section 14(c) certificate program that allows employers to pay less than the minimum wage to individuals with disabilities. If the proposed rule were adopted in its current form, applications sent on or after the rule’s effective date would be ignored, and existing certificates would continue for up to three years.
The program’s stated purpose is to prevent curtailment of job opportunities for people with disabilities. DOL has concluded that section 14(c) certificates are no longer necessary in view of developments such as the Americans with Disabilities Act that have transformed the employment landscape for people with disabilities. Phasing out subminimum wages for people with disabilities has been on DOL’s regulatory agenda since 2019.
Public comments are due by January 17, 2025, the Biden Administration’s final business day. CWC does not intend to submit comments but will reconsider if members show sufficient interest. Of course, it will be up to the incoming Trump Administration to determine whether to modify or finalize the proposed rule.
Members of the Center for Workplace Compliance (CWC), our affiliated nonprofit membership association, can read more here.