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Employment

The U.S. Department of Labor (DOL) has announced it is withdrawing its previously proposed rule that would have phased out the issuance of subminimum wage certificates authorized under Section 14(c) of the Fair Labor Standards Act (FLSA). The proposed rule, initially published in December 2024, aimed to amend 29 CFR Part 525 to phase out the use of special wage certificates for workers with disabilities.

This withdrawal means Section 14(c) certificates remain in effect, and DOL will continue to issue and renew them as authorized by federal law.

Rationale for Withdrawal:

After receiving more than 17,000 comments — including strong opposition from Members of Congress, service providers, individuals with disabilities, and their families — the DOL determined:

  • It lacks clear statutory authority to unilaterally eliminate a program that Congress has explicitly mandated.
  • Section 14(c) uses the word “shall”, not “may, indicating a mandatory duty for the Department to provide for the issuance of certificates “to the extent necessary to prevent curtailment of employment opportunities.”
  • The continued use of 14(c) certificates by over 40,000 workers as of 2024 indicates ongoing need.
  • Eliminating the program without Congressional action could result in unintended disruptions to employment and disability support services.

Impact on Providers:

  • Employers currently operating under valid 14(c) certificates may continue to do so, subject to existing legal requirements.
  • The DOL has no immediate plans to change the regulatory framework of 29 CFR Part 525.
  • A future rulemaking process could still be initiated, but any substantive changes would likely require Congressional action.

The full text of the rescission can be found here.

The Rehabilitation and Community Providers Association (RCPA), in conjunction with our provider members and partner stakeholders, have written to PA Senator Casey and PA Senator Fetterman to express our full support for ensuring the mandated inflationary increases are preserved for the Pennsylvania Office of Vocational Rehabilitation (OVR) so that critical OVR employment programs will continue for working and job-seeking Pennsylvanians with disabilities. Vocational rehabilitation funding is essential in Pennsylvania to maintain services that support the advancement of employment. We are fortunate that our state legislature has consistently funded Pennsylvania OVR in a manner that has allowed OVR to collect the full federal match and even draw down more when there is a surplus.

If the mandated inflationary increases are rescinded, Pennsylvania’s OVR funding will be cut by millions of dollars, adversely impacting working and job-seeking Pennsylvanians with disabilities. Specifically, approximately $13M would be eliminated from a limited $200M budget, or 6.5%. The resources provided to PA OVR are too valuable and already limited. This potential action forces Pennsylvania to prioritize allocations at the expense of critical employment and related services. Maintaining funding levels is crucial for advancing employment for individuals with disabilities.

Should you have any questions, please feel free to contact Intellectual/Developmental Disabilities Division Director Carol Ferenz or IDD Policy Analyst Cathy Barrick.

Photo by Chris Montgomery on Unsplash

The President’s Committee for People with Intellectual Disabilities (PCPID) will be hosting its next meeting on Thursday, September 26, 2024, from 9:00 am – 4:00 p.m. ET, and Friday, September 27, 2024, from 9:00 am – 3:00 pm ET. Register for the meeting here.

The meeting is open to the public and will be hosted at the U.S. Department of Health and Human Services. The meeting will take place in the Switzer Building Conference Room 1400, located at 330 C Street, SW, Washington, DC 20201. Members of the public can observe the meeting in person or virtually. To observe the meeting in person, seating will be available for the first 25 individuals to reserve seats due to space limitations. In order to observe the proceedings in person or virtually, you must register in advance.

The Committee will discuss the 2024 PCPID Report focused on home and community-based services (HCBS) as it relates to direct support professionals, employment, community living, and federal support programs. The Committee will also discuss emerging issues facing people with intellectual disabilities.

Comments and suggestions, especially from people with intellectual disabilities, are welcomed. If there are comments that you would like to inform the PCPID, please share them using ACL’s comment form. Comments received by Friday, September 13, 2024, will be shared with the PCPID at the meeting.

Join Lydia Dawson, Erin Drummond, Marco Giordano, and Toni Pergolin as they present the Employee Engagement Symposium, moderated by Tine Hansen-Turton.
Thursday, February 16, 2023
3:30 pm – 5:00 pm EST
Virtual Event
Register Here

Description:

How do you promote workplace practices and cultures that lead to satisfied employees and improved business outcomes in the health and human services sectors? How do you draw on employees’ knowledge and ideas to improve and grow services? Our panelists will address these questions and share their best strategies for successful employee engagement. This symposium is moderated by Tine Hansen-Turton, President and CEO of RCPA member Woods Services.

Thriving Through Transformation Symposia Series:

This symposium is the second in a series of four symposia that stem from key themes in the newly released book Thriving Through Transformation: A Practical Guide to Creating Organizational Change in the Social Sector by Woods Services. For more about the book and the series, see below.

Visit here to purchase a paperback copy of the book.
Visit here to download the free digital version.

Learn more about the speakers, agenda, and registration details here.