WHD Drops Proposal to End Subminimum Wages for Workers With Disabilities

Quick Hits

• The WHD is withdrawing a December 2024 proposal to eliminate subminimum wage certificates for workers with disabilities.
• The agency, at the direction of the Trump administration, cited a lack of statutory authority to unilaterally terminate the program.

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.

The December 2024 proposed rule would have phased out the issuance of new Section 14(c) certificates over a three-year period. At the time, the WHD argued that the program was no longer necessary as employment opportunities for workers with disabilities have vastly expanded in recent decades due to legal, social, and technological developments.

However, after consideration of over 17,000 comments, including more than 11,000 unique comments, the WHD is now seeking to withdraw that proposed rule. Specifically, the WHD said it was influenced by “concerns expressed by Members of Congress and others that it lacks statutory authority to unilaterally and permanently terminate the issuance of section 14(c) certificates.”

The WHD determined that Section 14(c) imposes a “mandatory duty” on the DOL to issue subminimum wage certificates. The WHD noted that states that have ended their similar subminimum wage programs “have done so through state legislation consistent with their respective constitutional frameworks,” and the fact that some states have ended their programs “does not necessarily mean such provisions are no longer needed to prevent curtailment of employment opportunities.”

While the WHD acknowledged the significant decline in Section 14(c) certificates—which dropped from 424,000 in 2001 to 40,579 in 2024—the WHD said the numbers show tens of thousands of workers still rely on the Section 14(c) program. “That inference is bolstered by comments asserting that many individuals with significant disabilities would face unemployment, underemployment, or loss of ancillary services if 14(c) options were eliminated,” the WHD stated.

Next Steps

The withdrawal of the proposed rule to end subminimum wages comes with a change in leadership at the DOL since President Donald Trump took office in January 2025.

The proposed rule was anticipated to increase labor costs for some employers with workers eligible for subminimum wage rates. Employers may still want to review their pay policies to stay compliant with state and federal minimum wage and overtime rules.

Ogletree Deakins will continue to monitor developments and will provide updates on the Multistate Compliance and Wage and Hour blogs as additional information becomes available.

This article and more information on how the Trump administration’s actions impact employers can be found on Ogletree Deakins’ New Administration Resource Hub.

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