by Michael Cardman, Brightmine Senior Legal Editor
The US Department of Labor (DOL) is abandoning a Biden-era plan to phase out subminimum wages for workers with disabilities.
The Fair Labor Standards Act (FLSA) authorizes the DOL to issue special certificates – known as “14(c) certificates” – that allow employers to pay workers with disabilities at wages below the federal minimum of $7.25 per hour if their disabilities impair their earning or productive capacity.
Late last year in the waning days of the Biden administration, the DOL proposed to stop issuing new certificates and phase out existing certificates over the next three years. At the time, DOL officials said they believe subminimum wages are no longer necessary because opportunities and training have “dramatically expanded” for workers and because employers now have more resources and training to recruit, hire and retain them.
But now, under the Trump administration, the DOL is withdrawing that proposal. In a notice that will be published in the Federal Register on July 7, the DOL says it lacks statutory authority to “unilaterally and permanently” end subminimum wages for workers with disabilities.
You may also be interested in…
About the author
Michael Cardman
Senior Legal Editor, Brightmine
Michael Cardman has more than 20 years of experience in publishing and has specialized in employment law for more than 15 years. As a member of the Brightmine editorial team, he focuses on wage and hour compliance, including minimum wage, overtime, employee classification, hours worked, independent contractors and child labor.
Michael holds a Bachelor of Arts degree in English from the University of Virginia. Prior to joining Brightmine, he was the managing editor for Thompson Publishing Group’s library of HR publications. In this role, he was responsible for overseeing books, manuals and online tools covering a variety of topics such as wage and hour, employee leaves, employee benefits and compensation.
Connect with Michael on LinkedIn.
See our extensive HR resources and expertise
In an ever-changing regulatory environment, we have everything you need to stay in control and compliant.