DOL Proposes End to 14(c) Certificate
The U.S. Department of Labor (DOL) on Dec. 4 proposed phasing out Section 14(c) certificates, concluding that “subminimum wages are no longer necessary to prevent the
curtailment of employment opportunities for individuals with disabilities.” Section 14(c) of the Fair Labor Standards Act allows employers to pay workers with disabilities below the federal minimum wage when their disabilities affect productivity.
Under the proposal, the DOL would stop issuing new Section 14(c) certificates immediately upon the rule'’s effective date and would allow a three-year transition for employers with existing certificates to end subminimum wages.
SHRM Foundation research highlights that 97% of HR professionals and 92% of managers say employees with disabilities perform as well as or better than peers without disabilities. Moreover, 87% of HR executives noted a positive ROI in hiring individuals with disabilities.
Public comments on the proposed rule are open until Jan. 17, 2025.
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