Additionally, the Biden administration has already taken steps to limit subminimum wages in other areas. In 2021, the DOL banned the use of subminimum wage for federal contract workers with disabilities, aligning with its broader efforts to raise wages for federal contractors.
State-Level Momentum Paves the Way for Federal Action
While the federal government has lagged behind in addressing subminimum wages, progress has been made at the state level. Over the past decade, more than a dozen states have passed laws prohibiting the payment of subminimum wages to workers with disabilities, leading to a dramatic decline in the number of employers utilizing Section 14(c) certificates.
According to DOL data, as of November 1, 2023, the number of active certificates stood at 751—about half of what it was just four years ago. Many of the employers still holding certificates have relatively few workers, with some maintaining only a handful, while others employ hundreds.
A Step Toward Greater Workforce Inclusion
Despite these gains, the new rule is still a proposal and must navigate the regulatory process before it can be fully implemented. It will go through the notice and comment phase, during which time the public and stakeholders can weigh in. Given that regulations put forward during the final stages of a presidential term are often subject to legal challenges, the rule could face opposition before becoming law.
