Compliance Stuff

The U.S. Department of Labor (DOL) Wage and Hour Division (WHD) is withdrawing a Biden-era proposal to end the practice of paying subminimum wages to workers with certain disabilities after determining that the agency lacks statutory authority under the Fair Labor Standards Act (FLSA) to unilaterally terminate the practice. Quick Hits The WHD is withdrawing a December 2024 proposal to eliminate subminimum wage certificates for workers with disabilities. The agency, at the direction of the Trump administration, cited a lack of statutory authority to unilaterally terminate the program. On July 7, 2025, the WHD  published a notice  in the  Federal Register  announcing the withdrawal of a p roposed rule published on December 4, 2025, that would have phased out the practice of issuing certificates under Section 14(c) of the FLSA to allow employers to pay subminimum wages to certain workers with disabilities . Section 14(c) of the FLSA requires the DOL to issue certificate...

Spoiler: Section 503 takes center stage.   The Office of Federal Contract Compliance Programs dropped three proposed rules on July 1, offering revisions to its existing regulatory scheme. Key highlights : Executive Order 11246 . The OFCCP  proposes to rescind  the implementing regulations altogether. Vietnam Era Veterans’ Readjustment Assistance Act . The OFCCP  proposes to update  the regulations to remove references to Executive Order 11246 and its regulations. Section 503 of the Rehabilitation Act . In addition to eliminating references to Executive Order 11246, the OFCCP  proposes to rescind  all obligations relating to disability statistics , including voluntary invitations to applicants and employees to self-identify as disabled, the 7 percent utilization goal for individuals with a disability, and the data collection analysis. Proposed rule to rescind Executive Order 11246 regulations President Trump  revoked Executive Order 11246 ...