On July 7th, the Department of Labor withdrew its proposed rule to phase out 14(c) certificates. This rule had previously completed the public comment process, with disability advocates across the country supporting this decision. With its withdrawal, there is widespread disappointment.
What are 14(c) certificates?
14(c) certificates allow employers to pay people with disabilities below minimum wage when necessary to provide opportunities for work. These certificates exist to“prevent the imposition of a full minimum wage from depriving” those with disabilities of opportunities to gain employment.
The Rule Under the Biden Administration
The original rule used statutory authority in the FLSA, which authorized 14(c) waivers, to cease issuing waivers because the Secretary of Labor had the authority to issue waivers as she sees necessary to “prevent curtailment of opportunities for employment”. Since the initial issuance of these waivers, legislation such as IDEA and WOIA have improved opportunities for employment for people with disabilities. Additionally, many states have eliminated subminimum wages for workers with disabilities. As a result, the Department concluded that 14(c) certificates are no longer necessary to provide opportunities for employment for people with disabilities.
The Rule’s Withdrawal Under the Trump Administration
The Department received over 17,000 comments, with a variety of viewpoints, on the proposed rule to phase out 14(c) certificates. Upon withdrawing the rule, the Department stated that “several commenters”, including Congressmembers, believed the Department did not have the statutory authority to issue this rule. Additional commenters had concerns that phasing out these waivers would negatively impact employment opportunities for people with disabilities. The Department, under the new administration, now believes that need remains for these certificates.
Disability Advocacy
Over 40,000 workers are working under 14(c) certificates and are paid less than minimum wage. The majority of workers in 14(c) settings have intellectual and developmental disabilities (I/DD). Subminimum wage makes it impossible for people with disabilities to live independently. It is not a living wage and assumes that people with disabilities are not living on their own, paying for their own expenses, and acting on their own behalf.
For years, disability advocates have been calling for 14(c) certificates to be phased out. The withdrawal of this rule effectively maintains segregated workspaces and pay disparities for people with disabilities. The Association of People Supporting Employment First called for 14(c) certificates and subminimum wage to be phased out by 2022, explaining that these are no longer valid strategies for improving employment opportunities for people with disabilities.
Many employees with disabilities do the same work as employees without disabilities while earning significantly less. Sheltered workshops across the country employ people with disabilities because they have waivers and can pay less – without this waiver, they would have to employ people at minimum wage. Is it workplace equality to only be hired because you are cheaper labor?
Instead of preserving 14(c) certificates, the Department of Labor could be protecting individuals with disabilities in the workplace by enforcing antidiscrimination policies, ensuring that people with disabilities are being legitimately considered for jobs by employers, and protecting wages for everyone. All workers, regardless of disability and job, deserve to earn a living wage for their work.
Plain Language
On July 7th, the Department of Labor withdrew its proposed rule to phase out 14(c) certificates. People are disappointed.
What are 14(c) certificates?
14(c) certificates allow employers to pay people with disabilities below minimum wage so that they can get jobs.
The Rule Under the Biden Administration
The Biden Administration said the Secretary of Labor can issue 14(c) certificates as she sees necessary. The Department said these certificates are not necessary any longer. This is because the IDEA and WOIA have improved job opportunities for people with disabilities.
The Rule’s Withdrawal Under the Trump Administration
Congressmembers believed the Department wasn’t legally allowed to phase out 14(c) certificates. Other people said phasing out these waivers would hurt employment opportunities for people with disabilities. The Department said these certificates are still needed, so they withdrew the rule.
Disability Advocacy
Most workers in 14(c) settings have intellectual and developmental disabilities (I/DD). Subminimum wage makes it impossible for people with disabilities to live independently.
For years, disability advocates have been calling for 14(c) certificates to stop. The certificates keep segregated workspaces and pay disparities for people with disabilities. The Association of People Supporting Employment First said that these are no longer strategies for improving employment opportunities.
Many employees with disabilities do the same work as employees without disabilities while being paid less. Is it workplace equality to only be hired because you are a cheaper employee?
Instead of 14(c) certificates, the Department of Labor could be protecting individuals with disabilities in the workplace by protecting them from discrimination and helping them find good jobs. People with disabilities deserve to earn a living wage for their work.
Written by:
Aubrey Rowan
Archer Fellow, NACDD
