Department of Labor Looks to Eliminate Lower Minimum Wage for Disabled Workers

Throughout the country, disabled individuals handle a wide range of jobs in numerous industries. In many cases, people who otherwise would have been overlooked or rejected are among the hardest and best workers. It stands to reason that anyone who can do the job deserves appropriate pay, but a federal rule allowed employers to bypass minimum wage laws when it comes to disabled workers. Now, that might be changing. 

The U.S. Department of Labor (DOL) has proposed a rule which would gradually eliminate certificates that allow employers to pay workers with disabilities less than the federal minimum wage of $7.25 per hour. Under Section 14(c) of the Fair Labor Standards Act (FLSA), the subminimum wage was designed to encourage employment opportunities for individuals whose disabilities significantly impair their productivity. However, critics argue that this policy perpetuates economic and social disparities for workers with disabilities, allowing exploitation and limiting access to competitive, integrated employment.

Specific steps associated with the rule change include the following: 

  • Prohibition on new certificates — Pursuant to the prosed new standard, the DOL would discontinue the issuance of new 14(c) certificates to employers.

  • Three-year phase-out for existing certificate holders — Employers with existing certificates would have three years from the final rule's effective date to pay the federal minimum wage to all workers, regardless of disability.

  • Transition assistance — As the new rule takes effect, the DOL plans to provide resources and guidance to help employers and workers adapt to the changes.  

Advocates for disability rights have long argued that subminimum wage policies are outdated and discriminatory, reinforcing stigma and economic marginalization. Research shows that individuals with disabilities can thrive in competitive work environments when provided with appropriate accommodations and support.

For employers, the rule means adapting their pay structures and potentially investing in training and resources to maximize productivity. Workers with disabilities would benefit from equitable wages and a stronger foothold in the job market, fostering financial independence and social integration.

A subminimum wage is not the only form of disparate treatment experienced by disabled workers. If you have been victimized due to your disability even though you can still do the job, Kardell Law Group  can help. Our firm represents clients in cases stemming from violations of the Americans with Disabilities Act and other anti-discrimination laws.