DOL Announces Proposed Rule to Phase Out Subminimum Wage for Workers With Disabilities

The Department of Labor (DOL) announced a proposed rule that would phase out the ability of employers to pay employees with disabilities less than the federal minimum wage. Currently, under section 14(c) of the Fair Labor Standards Act, an employer can obtain a certificate from the Wage and Hour Division allowing it to pay employees with disabilities less than the federal minimum wage of $7.25 per hour if their “productive capacity” is reduced by a physical or mental disability. The proposed rule would phase out the issuance of the 14(c) certificates.