Labor Department Proposes Ending Subminimum Wage for Disabled Workers

On December 4, 2024, the U. S. Department of Labor announced a proposal to phase out the subminimum wage program that has allowed employers to pay disabled workers less than the federally mandated minimum wage. This initiative has received positive responses from Washington lawmakers, particularly Rep. Cathy McMorris Rodgers and Senator Patty Murray, who have long advocated for the elimination of the 14(c) certificates.

The proposed rule aims to end discriminatory wage practices and ensure fair compensation and dignity for disabled workers. If implemented, the Labor Department would stop issuing new 14(c) certificates and gradually phase out existing ones over three years. While the proposal enjoys bipartisan support, some employers express concerns about potential job losses and reduced hiring of disabled individuals. However, advocates maintain that raising wages will enhance job security and opportunities for disabled workers. McMorris Rodgers emphasizes the need for a legislative solution for a permanent ban on subminimum wages, rather than relying solely on administrative changes.

The outcome of the proposal will depend on public feedback during the comment period and the incoming administration's position on the issue.