Phasing out pay inequity for workers with disabilities

In 1938, Congress enacted the Fair Labor Standards Act (FLSA), which included a provision, now referred to as section 14(c), that grants the Secretary of Labor authority to certify employers to pay workers with disabilities below the federal minimum wage. Today, many workers with disabilities whose employers pay subminimum wages are paid less than half the minimum wage with some being paid just pennies an hour for their work.   

In the past 86 years, civil rights and economic opportunities for workers with disabilities have evolved due to profound legal and policy developments, the disability rights movement, and changes in societal and cultural expectations. Legislation, judicial precedent and regulatory initiatives have fundamentally and profoundly altered the rights, protections, access and opportunities available to individuals with disabilities. Additionally, these evolving changes to the employment landscape have dramatically altered access to employment opportunities and available supports for workers with disabilities. 

Today, numerous states and localities have prohibited or limited the payment of subminimum wages to workers with disabilities within their jurisdiction. In addition, an increasing number of employers are voluntarily opting out of seeking certifications that allow them to pay subminimum wages to workers with disabilities.

Section 14(c) of the FLSA authorizes the Secretary of Labor to issue certificates allowing employers to pay subminimum wages to workers with disabilities only if such certificates are necessary to prevent the curtailment of opportunities for employment. On Dec. 3, the department announced a notice of proposed rulemaking to end the issuance of new section 14(c) certificates to pay subminimum wages to workers with disabilities and phase out use of current section 14(c) certificates over a 3-year period.  The department proposes that subminimum wages are no longer necessary for job opportunities for workers with disabilities.  

If finalized, the proposed rule would not require workers with disabilities to leave their current places of employment and would not require current section 14(c) certificate holders to amend the employment setting or type of services they provide. Based on reviews of data and information from states that have already eliminated subminimum wage payments for workers with disabilities, the department expects that many workers with disabilities currently paid subminimum wages would be able to transition to full-wage employment, leading to benefits for workers and society.

The cornerstone of our promise to workers has always been a fair day’s pay for a hard day’s work. But for too long, individuals with disabilities have been left out of that promise. Today’s proposal is an important step toward addressing that.   

We encourage the public to provide feedback about this proposed rule during the comment period. All comments must be received by 11:59 p.m. ET on Jan. 17, 2025, for consideration in this rulemaking. Comments received after the comment period closes will not be considered. Learn more about how to comment on a notice of proposed rulemaking.

Taryn M. Williams is the assistant secretary of labor for disability employment policy and Kristin García is the deputy administrator in the Wage and Hour Division.