Federal officials are giving employers the green light to continue paying many workers with disabilities less than minimum wage.
The Trump administration is withdrawing a proposed rule that sought to phase out what’s known as subminimum wage employment.
Under a federal law dating back to 1938, employers can obtain special 14(c) certificates from the U.S. Department of Labor allowing them to pay workers with disabilities less than the federal minimum of $7.25 per hour. The proposal put forth by the Biden administration late last year called for the Labor Department to stop issuing new 14(c) certificates and to phase out existing ones within three years.
The Biden administration cited a sharp drop in the number of workers earning subminimum wage and “vastly expanded” employment opportunities for individuals with disabilities in moving to end the program.
Now, however, the Trump administration has reached a different conclusion.
In a notice published in the Federal Register this week, the Labor Department indicated that it is pulling the proposed rule. The agency pointed to concerns from Republicans in Congress that the Labor Department does not have the statutory authority to unilaterally do away with 14(c) certificates and rejected the Biden administration’s preliminary assessment that the certificates are no longer necessary.
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