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ARTICLE · 19 DECEMBER 2024

DOL Proposes Rule To Phase Out Sub-Minimum Wage For Workers With Disabilities

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On Dec. 3, 2024, the U.S. Department of Labor (DOL) announced a proposed rule that would end employers' ability to pay workers with disabilities less than the federal minimum wage.

United StatesEmployment and HR
Nicholas D. SanFilippo
Nicholas D. SanFilippo
Shirin Afsous
Shirin Afsous

On Dec. 3, 2024, the U.S. Department of Labor (DOL) announced a proposed rule that would end employers' ability to pay workers with disabilities less than the federal minimum wage.

Based on a program dating back to 1938, under Section 14(c) of the Fair Labor Standards Act, employers may obtain certificates from the DOL's Wage and Hour Division to pay workers with disabilities below the federal minimum wage, currently $7.25 per hour. The proposed rule seeks to:

  • stop the DOL from issuing new section 14(c) certificates to employers submitting an initial application on or after a final rule's effective date, and
  • permit existing section 14(c) certificate holders, assuming they meet all legal requirements, to continue operating under section 14(c) certificate authority for up to three years after a final rule's effective date.

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