Efforts to End Section 14(c) and Broader Implications
This proposal represents the most significant federal effort to end Section 14(c) since the provision’s establishment in the 1930s. Lawmakers have sought to eliminate the program through various legislative actions, such as the Raise the Wage Act and the Transformation to Competitive Integrated Employment Act. Both bills remain pending, though some Republican lawmakers have expressed support for the latter bill.
In addition to this rule, the Biden administration has previously ended the practice of paying subminimum wages for federal contract workers with disabilities as part of efforts to raise the minimum wage for such workers.
State-Level Movements and the Decline of 14(c) Certificates
While federal action has been slow, more than a dozen states have enacted laws in recent years to prevent the payment of subminimum wages to workers with disabilities. These state laws are credited with reducing the number of employers holding 14(c) certificates. As of November 1, the DOL reported that only 751 employers held such certificates, a significant decline from about 1,500 certificate holders four years ago.
