In a significant move, the U.S. Department of Labor (DOL) announced on Tuesday that it will proceed with a rule designed to eliminate the ability of employers to pay workers with disabilities below the federal minimum wage. This decision marks a crucial step in the final weeks of President Joe Biden’s administration, addressing an issue that has been in the works for years.
The new rule, known as Employment of Workers With Disabilities Under Section 14(c) of the Fair Labor Standards Act, will effectively end the practice of issuing new certificates under Section 14(c). This provision has long allowed employers to pay workers with disabilities less than the federal minimum wage of $7.25 per hour. Employers who already hold certificates will still be permitted to pay below minimum wage for up to three more years, after which the practice will be phased out entirely.
Ending a Controversial Practice with Broad Implications
The DOL’s announcement signals a major shift in labor policy, aimed at increasing wages for workers with disabilities and promoting their economic independence. The department believes that by ending Section 14(c), the rule will help workers with disabilities integrate into the broader workforce, offering better opportunities and higher wages.
