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ARTICLE · 13 DECEMBER 2024

DOL Proposes Rule To Phase Out Subminimum Wages For Workers With Disabilities

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The DOL's proposed rule aims to phase out the issuance of certificates that permit employers to pay certain workers with disabilities less than the federal minimum...

United StatesEmployment and HR
Jennifer Faroldi Kogos
Jennifer Faroldi Kogos

The DOL's proposed rule aims to phase out the issuance of certificates that permit employers to pay certain workers with disabilities less than the federal minimum wage of $7.25 per hour for the work they perform. Under Section 14(c) of the Fair Labor Standards Act, these certificates have allowed for the payment of subminimum wages.

If the rule is finalized, there will be a gradual elimination of the ability for employers to obtain new certificates. Additionally, a three-year phase-out period is proposed for employers with existing certificates to adjust to paying workers with disabilities at least the federal minimum wage.

This proposed change reflects a shift towards promoting fair wages and equal opportunities in the workforce for individuals with disabilities. Remember to follow updates on this proposed rule to understand its implications for employers and workers in the disability community.

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