Biden Administration Proposes Phasing Out Subminimum Wages for Disabled Workers

The Department of Labor seeks to end a decades-old program allowing employers to pay disabled workers less than the federal minimum wage, with a three-year phase-out plan.

The Department of Labor has proposed a rule to phase out Section 14(c) certificates, which allow employers to pay disabled workers less than the federal minimum wage of $7.25 per hour.
If finalized, the rule would immediately stop issuing new certificates and establish a three-year transition period for existing certificate holders to comply.
The proposal follows a year-long review and reflects significant legal and policy developments that have expanded employment opportunities for disabled individuals since the program's inception in 1938.
Disability rights advocates widely support the move, citing it as a step toward economic equity, while critics argue it could reduce job opportunities for some workers with severe disabilities.
The rule's future is uncertain as it will likely face legal challenges and will require approval or revision by the incoming Trump administration.

Portland Press Herald