Labor News & Commentary July 4 scraps a Biden-era proposed rule to end subminimum wages for disabled workers & more

[Omaha Steve]

https://onlabor.org/july-4-2025/

By Sophia Leswing

Sophia is a student at Harvard Law School. Prior to law school she was an organizer at SEIU 32BJ in New York City where she helped building service workers unionize.

In today’s news and commentary, the Department of Labor scraps a Biden-era proposed rule to end subminimum wages for disabled workers; millions will lose access to Medicaid and SNAP due to new proof of work requirements; and many states have stepped up in the noncompete agreement policy space.

The Wage and Hour Division of the Department of Labor (DOL) announced that it was withdrawing its notice of proposed rulemaking published in December 2024, during Biden’s final full month in office, to end the issuance of subminimum wage certificates under Section 14(c) of the Fair Labor Standards Act (FLSA). By tossing this Biden-era proposed rule, the DOL under Trump is allowing certified employers to continue to lawfully pay below minimum wage to certain workers with disabilities. Many states, businesses, members of Congress, and disability advocates have pushed to end the 14(c) labor certificate program, arguing that it constitutes legalized discrimination.

This afternoon President Trump is expected to sign the Republicans’ domestic policy bill into law. Showing proof of work is not necessary to receive access to Medicaid currently, but this bill would require, by the end of 2026, that most adults record at least 80 hours of work, volunteering, or training per month in order to access Medicaid. The Congressional Budget Office estimates that roughly 5 million Americans will become uninsured by 2034 due to the new strict work requirement. Trump’s “Big, Beautiful Bill” also imposes a proof of work requirement on those ages 18 to 65 in order to qualify for the Supplemental Nutrition Assistance Program (SNAP). Currently, about 42 million people depend on SNAP, but millions will lose their benefits entirely as a result of the Republicans’ bill, which imposes the biggest cut to SNAP since the food stamp program started in 1939.

The Federal Trade Commission (FTC) faces a looming deadline over whether to continue defending a ban on noncompete agreements issued under former FTC chair Lina Khan. In late August of 2024, Judge Ada E. Brown of the U.S. District Court for the Northern District of Texas set aside enforcement of the noncompete rule. The FTC under the previous Biden administration appealed the district court’s ruling to the Fifth Circuit. After Trump took office, the FTC under newly appointed chair Andrew Ferguson filed a motion in March to put the case in abeyance. Ferguson spoke out against the ban when it was finalized last year, so it seems unlikely that he will fight to keep the ban alive after the abeyance ends on July 10, 2025. However, states have stepped up amidst the uncertainty with noncompetes at the federal level. California, Minnesota, North Dakota, and Oklahoma all have full bans on noncompete agreements. Nine states (Washington, Oregon, Colorado, Illinois, Virginia, Maryland, Rhode Island, New Hampshire, and Maine) have enacted bans that permit noncompetes only for workers above a certain income level. Louisiana limits noncompetes to a two-year maximum and Nevada prohibits noncompetes on hourly workers.