HIGHLIGHTS

Employers Blog — Update

Department of Labor Proposes to Phase Out Subminimum Wages for Workers with Disabilities Under the FLSA

“On December 3, 2024, the U.S. Department of Labor (“DOL”) announced a proposed rule to phase out the issuance of Section 14(c) certificates under the Fair Labor Standards Act (“FLSA”). Since 1938, these certificates have allowed employers to pay workers with disabilities less than the federal minimum wage based on their productive capacity. The DOL’s proposed rule reflects its conclusion that these certificates are no longer necessary as a result of significant advancements in disability rights, workforce inclusion, and employment opportunities for individuals with disabilities.”