The Fair Labor Standards Act (FLSA) generally requires that employees be paid at least the Federal minimum wage, currently $7.25 per hour, for every hour worked and at least one and one-half times their regular rate of pay for each hour worked over 40 in a single workweek. 29 U.S.C. 206(a), 207(a).
Since its enactment in 1938 through today, section 14(c) of the FLSA has included a provision authorizing the Department of Labor (Department) to issue certificates permitting employers to pay workers with disabilities at wage rates below the Federal minimum wage. The section 14(c) statutory provision, however, has always provided that such certificates may only be issued to the extent “necessary to prevent curtailment of opportunities for employment.”
Employment opportunities for individuals with disabilities have vastly expanded in recent decades, in part due to significant legal and policy developments. Based on that evidence, the Department has preliminarily concluded that subminimum wages are no longer necessary to prevent the curtailment of employment opportunities for individuals with disabilities, and on December 3, 2024, the Department announced publication of a Notice of Proposed Rulemaking (NPRM), Employment of Workers with Disabilities Under Section 14(c) of the Fair Labor Standards Act. (See https://www.federalregister.gov/public-inspection/2024-27880/employment-of-workers-with-disabilities-under-section-14c-of-the-fair-labor-standards-act). In this NPRM, the Department proposes to amend 29 CFR part 525 to phase out the issuance of section 14(c) certificates.
Specifically, the Department proposes to cease issuance of new section 14(c) certificates to employers submitting an initial application on or after the effective date of a final rule. The Department also proposes to permit existing section 14(c) certificate holders, assuming all legal requirements are met, to continue to operate under section 14(c) certificate authority for up to 3 years after the effective date of a final rule. The Department is also requesting comment as to whether, if this proposed rule is finalized, it would be appropriate to grant an extension for existing section 14(c) certificate holders who demonstrate a need and seeks comments on the need for such an extension period, and, if needed, its scope, structure and length.
The Department invites public comments on this NPRM at https://www.federalregister.gov/public-inspection/2024-27880/employment-of-workers-with-disabilities-under-section-14c-of-the-fair-labor-standards-act. The NPRM’s comment period closes at 11:59 p.m. ET on January 17, 2025.
Anyone who submits a comment (including duplicate comments) should understand and expect that the comment, including any personal information provided, will become a matter of public record and will be posted without change to www.regulations.gov.