Subminimum Wage Provisions Under the Fair Labor Standards Act

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Raise the Federal Minimum Wage

AKA “Protect Entry-Level Jobs from Inflationary Mandates”


Which agency/agencies promulgated the regulation? *
Department of Labor (DOL)
Which title, parts, and/or sections of the Code of Federal Regulations (C.F.R.) should be rescinded? *
Targeted revisions to: 29 CFR §531.56 — Tip credit provisions that allow employers to pay as little as $2.13/hour in direct wages, undermining wage floor protections. 29 CFR §531.60 — Subminimum wage exemptions for learners, apprentices, and messengers that distort fair labor practices. Broader 29 CFR Part 531 provisions allowing the valuation of non-cash “reasonable cost” benefits as wage substitutes. These revisions would not raise the statutory minimum wage (currently set by 29 U.S.C. §206) but would eliminate regulatory mechanisms that suppress real-world pay far below survivable levels.
What is your name?
—OPTIONAL--
Is your proposed rescission a notice of proposed rulemaking, final rule, direct final rule, interim final rule, or interpretive rule? *
Notice of Proposed Rulemaking
What is the name of the regulation being rescinded, if applicable? *
Subminimum Wage Provisions Under the Fair Labor Standards Act
Please provide a short summary of the justifications for the rescission. *
These regulatory carve-outs legally permit poverty wages. They weaken enforcement of fair pay, particularly for tipped workers and so-called “learners,” and allow employers to claim meals or housing in place of adequate wages. Rescinding these outdated provisions would immediately strengthen worker protections while Congress considers long-overdue statutory wage reform.
Please insert the address of the agency. [NPRM, DFR, and IFR only]
U.S. Department of Labor 200 Constitution Ave NW Washington, D.C. 20210
Please insert the contact information for the agency. *
Wage and Hour Division Phone: 1-866-487-9243 Email: WHDComments@dol.gov
What is the background for the regulation being rescinded? *
29 CFR Part 531 interprets how wages must be paid under the FLSA, including rules for tips, in-kind payments, and special exemptions. These regulations were written for a different economy and have not been updated to reflect modern cost-of-living standards. As a result, millions of workers are legally underpaid and cannot afford basic needs.
Explain the reasons for the rescission. *
No one working full time should live in poverty. These regulatory provisions are out of sync with cost-of-living realities and offer legal cover for exploitative labor practices. While raising the statutory minimum wage requires congressional action, the Department of Labor has clear authority to eliminate outdated exceptions and strengthen enforcement of existing wage protections.
Describe the text of the relevant C.F.R. provisions as it will exist after the rescission. *
Revised provisions shall: Eliminate the tip credit under §531.56, requiring direct payment of full minimum wage regardless of gratuities. Remove the subminimum wage category under §531.60 for learners, apprentices, and messengers. Bar non-cash benefits from being counted as wages unless they exceed basic subsistence levels and are freely elected by the employee.
Please insert the name of the current agency head. *
Lori Chavez-DeRemer
Please insert the title of the agency head. *
Labor and Workplace Equity

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