7 Jul 2025

⚖️Withdrawal of Proposed Rule on Employment of Workers with Disabilities

Employment of Workers With Disabilities Under Section 14(c) of the Fair Labor Standards Act; Withdrawal

Summary

The Department of Labor (Department) is withdrawing its notice of proposed rulemaking (NPRM) published on December 4, 2024 (89 FR 96466), which proposed to amend 29 CFR part 525 to phase out the issuance of subminimum wage certificates under section 14(c) of the Fair Labor Standards Act (FLSA). With this action, the Department is formally discontinuing the rulemaking process and removing the proposal from further consideration.

Agencies

  • Labor Department
  • Wage and Hour Division

Business Impact ?

$$$ - High

The withdrawal of the proposed rule that aimed to phase out subminimum wage certificates under section 14(c) of the Fair Labor Standards Act has significant implications for businesses employing workers with disabilities. Companies can continue to operate under current regulatory guidelines without the potential burden of increased labor costs associated with minimum wage compliance, directly affecting their operational and financial models.

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