January 2, 2025
Dear Workers, Parents & Caregivers,
I am writing to update you on some changes that will be occurring with your work program at Hilltop Industries or Orleans Enterprises.
The Arc GLOW has been forced to make the difficult decision to discontinue the use of our 14(c) certificate that is issued by the US Department of Labor effective April 1, 2026. The 14(c) certificate allows Arc GLOW to pay workers with disabilities subminimum wages based on productivity.
The 14(c) program is part of the Fair Labor Standards Act (FLSA) and has been under threat of elimination by the federal and state government for many years due to criticism that paying subminimum wages limits opportunities for people with disabilities.
We are proud of the 50 years of services that we have provided in our workshops, and we know the value of this service for the people we support but without the use of subminimum wage it will be financially unsustainable in its current format.
Our goal is to help each person to find the right supports and services over the next 15 months and provide continuity for as seamless a transition as possible to another service.
Our Plan:
- We plan to continue to assist each and every person to find an alternative program before the end of 2025. We will continue to offer individualized daily supports and services and transportation to our facilities. We are here for you!
- The Employment Leadership Team will have a representative at all Life Plan meetings over the next 6 months for those affected by this change. We will answer questions and help develop a path forward for each person.
- We are available to meet with anyone who would like a meeting prior to their Life Plan meeting or at any point to discuss an individualized plan for the future.
- We will form a committee of families, staff and community members to work on developing new supports and services. If you are interested in participating, please contact Kellie Kennedy by phone at 585-658-3311 x 2203 or by email at KKennedy@ArcGLOW.org.
- We will develop and offer new and engaging community prevocational services through Career Exploration Centers to help build work skills and maintain relationships in both Livingston-Wyoming and Genesee-Orleans regions.
- We will maintain an industrial footprint at Hilltop Industries and Orleans Enterprises to continue to offer high quality assembly and packaging service to our customers. We will continue to offer employment opportunities at minimum wage or above to those who qualify for supported employment and meet productivity and employment requirements of Arc GLOW.
Below, please find a Frequently Asked Questions (FAQ) and a press release from the US Department of Labor about the pending phase out of the 14(c) program.
We appreciate your understanding, and we are here to help make this as smooth a transition as possible. If you have questions, please contact me by phone at 585-658-3311 x 2203 or by email at KKennedy@ArcGLOW.org.
Sincerely,
Kellie Kennedy
Vice President of Day & Employment Services
Cc: Martin Miskell, CEO
Lynn Flemming, CFO
Cheryl Englert, Board President
Arc GLOW Board of Directors
FAQs
What is a 14(c) certificate?
Section 14(c) of the FLSA authorizes employers, after receiving a certificate from the Wage and Hour Division, to pay subminimum wages – wages less than the federal minimum wage – to workers who have disabilities for the work being performed. Courtesy of US DOL
Why do the state and federal government want to eliminate the use of 14(c) certificates?
State and federal governments are moving to eliminate the use of 14(c) certificates for several key reasons:
- Promoting Equality and Inclusion: A core principle is that people with disabilities deserve the same rights and opportunities as everyone else, including fair wages. Paying someone less than minimum wage based solely on their disability is seen as discriminatory and perpetuates the idea that their work is less valuable. Eliminating 14(c) certificates aims to promote equal pay for equal work and foster a more inclusive society.
- Encouraging Competitive, Integrated Employment: The traditional model associated with 14(c) certificates often involves segregated settings where people with disabilities work in sheltered workshops, isolated from the general workforce. The goal is to shift towards competitive, integrated employment where people with disabilities work alongside non-disabled colleagues in typical work environments, earning standard wages.
- Improving Economic Self-Sufficiency: Earning a fair wage is crucial for financial independence and overall well-being. By ensuring people with disabilities earn at least minimum wage, governments aim to help them achieve greater economic self-sufficiency, reducing reliance on public assistance and improving their quality of life.
- Alignment with Current Values and Best Practices: The concept of subminimum wage for people with disabilities is increasingly seen as outdated and inconsistent with modern values of equity and inclusion. There’s a growing recognition that with appropriate supports and accommodations, many people with disabilities can succeed in competitive employment.
In essence, the move to eliminate 14(c) certificates reflects a fundamental shift in how society views disability and employment.
AI was used in developing this information
Why is the Arc GLOW deciding to discontinue the use of the 14(c) certificate now?
Arc GLOW decided to discontinue the use of the 14(c) certificate on April 1, 2026, when our current certificate is due for renewal. This decision was made before the US Department of Labor (DOL) announced their planned three-year phase out of all certificates nationwide. See attached DOL Press Release.
Issues impacting our decision:
- Consistent minimum wage increases: New York State minimum wage is $15.50 effective January 1, 2025, which affects our ability to be competitive in pricing with our customers and our ability to maintain consistent work for our workforce.
- Loss of local industry and customers: economic conditions in New York State have affected our customers and our ability to maintain financially viable work.
January 2022 US Department of Labor investigation: Following the merger of the Arc of Livingston-Wyoming and the Arc of Genesee-Orleans, Arc GLOW has been the subject of several audits including from the US Department of Labor (DOL). During this investigation, the DOL required Arc GLOW to pay back wages to workers based on, through no fault of our own, our inability to meet an extraneous paperwork function during the pandemic. During this protracted investigation, DOL’s position was clear — if we continue to use our 14(c) certificate, we will be subject to a high level of scrutiny for meeting all regulatory requirements despite extenuating circumstances
What does this mean for me?
Arc GLOW staff will work with you and your team to help identify how you would like to spend your days. Our goal is to help every person move to the right supports and services to make them successful.
The options will be discussed on an individual basis at Life Plan meetings and throughout the next year.
What will I do during the day?
Each person will have the opportunity to continue to attend a program of their choice during the day and be transported to Arc GLOW facilities. Some options may include community prevocational services at their current program site with the staff that they are familiar with, day habilitation, the Employment Training Program (ETP) or supported employment for those who demonstrate the ability to meet productivity and program standards in community employment.
What has the Arc GLOW done to advocate?
Here are some of the efforts that we have made over the past 11 years to preserve options for the people we support:
- Petition completed by advocates and community members in support of work choice; sent to the Governor, Senators and Congressman
- Formed a Family Advocacy Group
- Multiple visits with New York State legislators
- Multiple visits to Congressman Collins in Washington
- Visit from Congressman Collins to Hilltop
- Visit from Congressman Tenney to Hilltop
- Multiple visits to Senator Schumer’s office in Washington
- Visit from OPWDD Commissioner Colleen Delaney to Hilltop
- Multiple Letters to the Editor from parents
- Annual Family Meetings for 8+ years to outline the future of the workshop service and advocacy efforts
How many people does this change impact?
Number of People Served in Work Centers
| Location | 2013 | 2024 |
|---|---|---|
Hilltop: Livingston & Wyoming Counties | 282 | 69 |
Orleans Enterprises: Orleans County | 50 | 31 |
Genesee County | 95 | |
TOTAL | 427 | 100 |
In 2013 OPWDD initiated a Workshop Transformation to end sheltered employment and what was perceived as segregated employment. We were required to create an integrated environment which we did at Hilltop and Orleans Enterprises.
News Release
US Department of Labor announces proposed rule to phase out certificates allowing payment of less than minimum wage to workers with disabilities
Department preliminarily finds subminimum wages no longer necessary to prevent curtailment of employment opportunities
WASHINGTON – The U.S. Department of Labor today announced a proposed rule that would phase out the issuance of certificates allowing employers to pay some workers with disabilities less than the federal minimum wage, currently $7.25 per hour, for the work they perform.
The rule proposes to gradually eliminate certificates employers can apply for under Section 14(c) of Fair Labor Standards Act that allow them to pay certain workers with disabilities subminimum wages. The department proposes to discontinue the issuance of new certificates and establish a three-year phase-out period for employers with existing certificates once a final rule becomes effective.
“This proposal demonstrates the Biden-Harris administration’s dedication to good jobs for workers with disabilities,” said Acting Secretary of Labor Julie Su. “In the decades since Section 14(c) was included in the Fair Labor Standards Act, there have been significant legal and policy developments that have dramatically expanded employment opportunities and rights for individuals with disabilities. With this proposal, the department expects that many workers currently paid subminimum wages under Section 14(c) will move into jobs that pay full wages, which will improve their economic wellbeing and strengthen inclusion for people with disabilities in the workforce.”
The proposed rule would do the following:
- Cease the department’s issuance of new Section 14(c) certificates starting on the effective date of a final rule.
- Institute a three-year period beginning on the effective date of a final rule for employers holding existing Section 14(c) certificates to gradually cease paying subminimum wages to workers with disabilities.
“One of the guiding principles of the American workplace is that a hard day’s work deserves a fair day’s pay, and this proposal ensures that principle includes workers with disabilities,” said Wage and Hour Administrator Jessica Looman. “Since the enactment of the Fair Labor Standards Act in 1938, opportunities and training have dramatically expanded to help people with disabilities obtain and maintain employment at or above the full federal minimum wage. Similarly, employers today have more resources and training available to recruit, hire and retain workers with disabilities in employment at or above the full minimum wage, and this proposed rule aligns with that reality.”
“The Biden-Harris administration is committed to creating a more inclusive workforce, where individuals with disabilities can thrive without being held back,” said Assistant Secretary of Labor for Disability Employment Policy Taryn Williams. “This proposal would help ensure that workers with disabilities have access to equal employment opportunities while reinforcing the fundamental belief that all workers deserve fair compensation for their contributions. We will continue to invest in the potential of every worker and foster workplaces that celebrate inclusion.”
On Sept. 26, 2023, Acting Secretary of Labor Julie Su announced that the department would conduct a comprehensive review of the Section 14(c) program. As part of this review, the department held a series of stakeholder engagement sessions to hear diverse views on Section 14(c) from members of the public, including workers with disabilities and their family members, disability rights advocates, service providers and Section 14(c) certificate holders. The department considered the wide-ranging input gathered from these sessions in the formulation of this proposed rule.
The department encourages interested parties to submit comments on the proposal once it is published in the Federal Register. All comments must be received by 11:59 p.m. EST on Jan. 17, 2025, for consideration in this rulemaking. Comments received after the comment period closes will not be considered. Learn more about the proposed rule and instructions for submitting comments.
Agency
Wage and Hour Division
Date
December 3, 2024
Release Number
24-2256-NAT