The U.S. Department of Labor (DOL) announced on Tuesday that it will move forward with a rule to end the ability of employers to pay workers with disabilities below the federal minimum wage. This long-awaited action comes in the final weeks of President Joe Biden’s administration.
A Historic Shift in Employment Law
For decades, Section 14(c) of the Fair Labor Standards Act (FLSA) has allowed employers to seek special certificates that exempt them from paying the federal minimum wage, which is currently $7.25 per hour, to workers with disabilities. Under the new rule, the DOL will stop issuing new certificates under Section 14(c), effectively putting an end to this practice. However, existing certificate holders will still be able to pay subminimum wages for up to three years.
The DOL has stated that if the proposal is finalized, it could increase wages for workers with disabilities, ultimately improving their economic independence. It also believes that this change could boost the overall labor force participation rate among people with disabilities.
