The U.S. Department of Labor proposed on Dec. 4, 2024, to stop issuing new Section 14(c) certificates and phase out existing ones over three years, ending the practice of paying some workers with disabilities less than the federal minimum wage, according to the proposal in the Federal Register. Comments were due Jan. 17, 2025.
Who was affected
Disability Scoop reported that as of May 2024, the department counted 801 employers holding 14(c) certificates and employing about 40,000 people with disabilities. Department data for certificates valid between October 2023 and March 2024 showed about 49% of those workers earned $3.50 an hour or less.
Under the Fair Labor Standards Act, 14(c) certificates allow employers to pay wages based on a worker's productivity. Many certificates have been held by organizations that run sheltered workshops.
Why this mattered for providers and DSPs
For provider agencies that still ran 14(c) programs, the proposal meant planning a move to competitive integrated employment, supported employment or other day supports. That can change the staffing model, with more DSPs working one-on-one in community jobs rather than in a facility. The Labor Department withdrew the proposal on July 7, 2025, leaving 14(c) in place under federal law.