On December 3, 2024, the U.S. Department of Labor (DOL) announced a proposed rule that would end employers’ ability to pay disabled employees less than the federal minimum wage, which is currently $7.25/hour. Currently, under Section 14(c) of the Fair Labor Standards Act (FLSA), employers can obtain a certificate from the DOL’s Wage and Hour Division authorizing them to pay disabled employees less than the federal minimum wage if the employee’s “productive capacity” is impaired by their physical or mental disability, and only if such certificate is necessary to prevent the curtailment of opportunities for employment.
