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ARTICLE · 10 JULY 2025

DOL Withdraws Rule Aimed At Eliminating Subminimum Wages For Workers With Disabilities

Littler Mendelson
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On July 7, 2025, the U.S. Department of Labor (DOL) formally withdrew its Notice of Proposed Rulemaking (NPRM) that would have amended 29 C.F.R. part 525 by phasing out the issuance of certificates...

United StatesEmployment and HR
S. Libby Henninger
S. Libby Henninger
Yara Mroueh
Yara Mroueh
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On July 7, 2025, the U.S. Department of Labor (DOL) formally withdrew its Notice of Proposed Rulemaking (NPRM) that would have amended 29 C.F.R. part 525 by phasing out the issuance of certificates authorizing subminimum wages to workers with disabilities under Section 14(c) of the Fair Labor Standards Act (FLSA). In doing so, the DOL cemented its position not to move forward with the proposed regulatory changes, declining to pursue formal rulemaking on this issue at this time.

Under Section 14(c) of the FLSA, employers can seek certification from the DOL to pay subminimum wages to workers who have disabilities for the work being performed. The certificate also allows for the payment of less than the prevailing wages to workers who have disabilities for the work being performed on contracts subject to the McNamara-O'Hara Service Contract Act and the Walsh-Healey Public Contracts Act.

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