The U.S. Department of Labor (DOL) announced its decision to withdraw a proposed rule that would have ended the long-standing Section 14(c) program, which allows certain employers to pay individuals with disabilities below the federal minimum wage.

Originally introduced during the final weeks of the Biden administration, the proposed rule aimed to eliminate the Section 14(c) provision of the Fair Labor Standards Act. However, following significant public response and legal concerns, the department has determined that rescinding the rule is the most appropriate course of action.

"In light of legal uncertainties and the critical feedback received — including over 17,000 public comments — the Department is withdrawing the proposed rule to end 14(c)," said the DOL in a statement to be published in the Federal Register. “Tens of thousands of workers continue to rely on this program for meaningful employment opportunities.”

The DOL cited ongoing concerns that eliminating the program could increase unemployment or reduce services for individuals with significant disabilities. Community Rehabilitation Programs (CRPs), which hold the majority of 14(c) certificates, warned that closure or reduction in operations could follow if the rule were enacted.

Critics of the rule also included lawmakers. Members of the U.S. House Committee on Education and the Workforce questioned whether the DOL had the legal authority to unilaterally end the program, emphasizing that any changes should come through Congressional action.

Committee Chairman Rep. Tim Walberg (R-Mich.) welcomed the DOL's reversal, stating, “14(c) certificates offer vital opportunities for Americans with disabilities to develop skills and lead fulfilling lives. I commend the administration for listening to concerns and preserving this pathway.”

While more than a dozen states have chosen to end subminimum wage practices through local legislation, the DOL emphasized that federal statutory obligations under Section 14(c) remain intact unless changed by Congress.

For further details, the official notice will be published in the Federal Register on Monday.