DOL Pulls Biden Rule to End Subminimum Wage for Workers with Disabilities: Positive.

The U.S. Department of Labor withdrew a Biden-era rule that aimed to phase out a section of the Fair Labor Standards Act allowing employers to pay certain workers with disabilities subminimum wages. The agency cited the need to preserve employment opportunities for participating workers. The rule received over 17,000 public comments.

Section 14(c) of the FLSA authorizes employers to pay subminimum wages to workers with disabilities if their earning or productive capacity is impaired. The Biden administration sought to end the program, citing a 2020 analysis by the U.S. Commission on Civil Rights. Many states and employers were already phasing out similar programs voluntarily.

Despite efforts to end the program, the current DOL stated that individual states’ decisions do not impact its statutory obligations. As of 2024, 40,579 certificates were in use, indicating that many workers rely on the program for employment. Comments from DOL highlighted concerns about potential unemployment for individuals with significant disabilities.

House Education and Workforce Committee Chairman Tim Walberg supported DOL’s decision, stating that section 14(c) certificates provide valuable opportunities for individuals with disabilities to learn meaningful skills and find personal fulfillment.

Read more at Yahoo Finance: DOL tosses Biden effort to end subminimum wage for workers with disabilities