The U.S. Department of Labor (DOL) Wage and Hour Division (WHD) is withdrawing a Biden-era proposal to end the practice of paying subminimum wages to workers with certain disabilities after determining that the agency lacks statutory authority under the Fair Labor Standards Act (FLSA) to unilaterally terminate the practice.
Quick Hits
On July 7, 2025, the WHD published a notice in the Federal Register announcing the withdrawal of a proposed rule published on December 4, 2025, that would have phased out the practice of issuing certificates under Section 14(c) of the FLSA to allow employers to pay subminimum wages to certain workers with disabilities.
Section 14(c) of the FLSA requires the DOL to issue certificates permitting employers to pay workers with disabilities at rates below the minimum wage to the extent “necessary to prevent the curtailment of opportunities for employment.” The program applies to workers whose “earning or productive capacity is impaired by a physical or mental disability,” including developmental disabilities, blindness, mental illness, cerebral palsy, alcoholism, and drug addiction.
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