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Sunday, February 22, 2026

Labor Department Seeks to End Lower Minimum Wage for Workers with Disabilities: 6 Things Employers Need to Know - JD Supra

The federal government wants to phase out the lower minimum wage that employers can pay to certain workers with disabilities, according to a proposal that the U.S. Department of Labor (DOL) just announced. Supporters of the lower minimum wage say it creates employment opportunities for more people with disabilities, while opponents argue that it builds more barriers to workplace inclusion. The DOL’s long-anticipated proposal released on December 3 notes that, while workers with disabilities still face significant barriers, employment opportunities have changed dramatically since the law was first established in 1938 and last updated in 1989. The Department says the lower minimum wage is no longer necessary. What can employers expect now that this rule change has been proposed – and what should we expect once the new administration is in place? Read on for answers to your top six questions.

1. What rules currently apply?

The Fair Labor Standards Act (FLSA) permits employers to pay wage rates to workers with disabilities below the $7.25 federal minimum wage when their disability impairs their earnings or productive capacity. To do so, employers must apply to the DOL for a Section 14(c) certificate. The rule applies to workers whose earning capacity or productivity is diminished by a physical or mental disability, such as blindness, mental illness, developmental disabilities, cerebral palsy, alcoholism, or drug addiction. The disability must actually impair the worker’s...



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