What: On December 4, 2024, the Department of Labor (DOL) proposed a rule that would eliminate a program that allows employers to pay workers with disabilities below the federal minimum wage under 14(c) of the Fair Labor Standards Act (FLSA). DOL is authorized under the FLSA to issue 14(c) certificates. However, DOL has tentatively concluded that subminimum wages are no longer necessary to provide employment opportunities for individuals with disabilities.
Why: DOL proposes the following actions for the 14(c) program:
- Cease issuance of new section 14(c) certificates to employers submitting an initial application on or after the effective date of a final rule; and
- Permit existing section 14(c) certificate holders to continue to operate under section 14(c) certificate authority for up to 3 years after the effective date of the final rule.
DOL 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 seek comments on the need for such an extension period. Advocacy seeks feedback on how this rule would economically impact small entities and people with disabilities, and any regulatory alternatives that would minimize this impact.
Action: Comments are due to DOL before January 17, 2025.
Read DOL’s press release and FAQ on the 14(c) proposed rule.
Advocacy contact: Send an email to Janis Reyes at Janis.Reyes@sba.gov.