Why It Matters
The Section 14(c) certificate program, established in 1938 under the Fair Labor Standards
Act, was intended to provide employment opportunities for people with disabilities. While it was originally created to provide employment opportunities for people with disabilities, it has perpetuated a system of inequity by allowing employers to pay workers with disabilities less than the federal minimum wage. This practice undermines the inherent dignity, value, and contributions of individuals with disabilities in the workforce.
Phasing out the 14(c) program is a necessary step toward achieving fairness and equity in the workforce. Today, 24 employers in Texas use 14(c) certificates, allowing
them to pay approximately 2,200 workers with disabilities less than minimum wage. Eliminating this outdated program will help ensure that people with disabilities are valued for their contributions, receive fair wages, and have access to inclusive employment opportunities that support their full participation in society.
The proposed rule, if approved, would:
- Stop the issuance of new Section 14(c) certificates to employers submitting an initial application on or after the effective date of a final
rule.
- Permit existing Section 14(c) certificate holders, assuming all legal requirements are met, to continue to operate under Section 14(c) certificate authority for up to three years after the effective date of a final rule.
