Proposed DOL Rule Would Require at Least Minimum Wage for Workers with Disabilities

The U.S. Department of Labor (DOL) recently announced its intent to move forward with a rule designed to protect employees with disabilities from receiving substandard wages. The Employment of Workers With Disabilities Under Section 14(c) of the Fair Labor Standards Act would end the practice of issuing new Section 14(c) certificates. These certificates allow employers to legally pay workers with disabilities less than the federal minimum wage.

Under the proposed rule, employers with existing Section 14(c) certificates could continue paying disabled workers less than minimum wage for up to three years. The DOL is seeking public comments on the length of this period and whether employers may request an extension.

Advocates for people with disabilities have long waited for the proposed rule’s publication. The DOL stated that it had been reviewing the Section 14(c) program since September 2023. The White House has been reviewing the proposed rule since July 2024. Earlier that year, a regulatory agenda predicted that the proposed rule would be published in September.

Previous attempts to remove Section 14(c) through Democratic-led legislation have stalled in Congress. Removal of Section 14(c) was also a part of the Democratic Party platform in 2020 and 2024.

In the proposed rule, the DOL points out that opportunities for workers with disabilities to obtain employment at the minimum wage have grown tremendously since the last update to Section 14(c) in 1989. Furthermore, individuals with disabilities have more legal rights and protections than ever before.

Ultimately, however, it will be up to the incoming administration to finalize the rule. Whether the Trump administration will back the rule is unclear. Republican Rep. Virginia Foxx, chair of the House Committee on Education and the Workforce, called the proposed rule “misguided and irresponsible.” Foxx claims that Section 14(c) protects jobs for workers with disabilities, and in states that have eliminated or restricted the program, these workers have ended up without jobs.

HBL has experience in all areas of benefits and employment law, offering a comprehensive solution to all your business benefits and HR/employment needs. We help ensure you are in compliance with the complex requirements of ERISA and the IRS code, as well as those laws that impact you and your employees. Together, we reduce your exposure to potential legal or financial penalties. Learn more by calling 470-571-1007.

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Hall Benefits Law, LLC

HBL offers employers comprehensive legal guidance on benefits in mergers and acquisitions, Employee Stock Ownership Plans (ESOPs), executive compensation, health and welfare benefits, healthcare reform, and retirement plans. We counsel a wide spectrum of clients including small, mid-sized, and large companies, 401(k) investment advisors, health insurance brokers, accountants, attorneys, and HR consultants, just to name a few. HBL is passionate about advising clients, and we are dedicated to our mission: to provide comprehensive, personalized, and practical ERISA and benefits legal solutions that exceed client expectations.

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