The U.S. Department of Labor (DOL) is retreating from a proposed rule that would have ended a program allowing employers to pay workers with disabilities an hourly wage less than the federal minimum wage of $7.25 per hour. The DOL is allegedly pulling the proposed rule, titled "Employment of Workers With Disabilities Under Section 14(c) of the Fair Labor Standards Act," due to concern about the lack of employment opportunities for individuals with disabilities.
Over the past decade, more than a dozen states have prohibited employers from paying workers with disabilities less than the minimum wage. The DOL proposed ending the 14(c) certificate program because the number of people participating in the program has substantially decreased, from 424,000 in 2001 to 41,000 in 2024. Under the current DOL's view, the number of people enrolled in the program, although in decline, still justifies its remaining operations.
Furthermore, the DOL states that it has received more than 17,000 comments since the Biden administration proposed the rule in December 2024. Many of the comments reportedly raised fears of individuals with disabilities having reduced employment opportunities and the closure of community rehabilitation programs (CRPs), which hold most Section 14(c) certificates and provide many other crucial services to this demographic.
The U.S. House of Representatives Committee on Education and Workforce has also taken the position that the DOL lacks the statutory authority to terminate the issuance of 14(c) certificates. In contrast, states that have ended subminimum wage programs have done so through state legislation that complies with state constitutional requirements.
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