Introduction

The American Dream often consists of finding a good job, having a roof over your head, enjoying friendships and fulfilling community relationships, and engaging meaningfully in activities each day. People with disabilities¹ have more opportunities to achieve this dream than ever before, thanks to the nearly 34-year-old Americans with Disabilities Act (ADA), and a series of other federal and state laws and regulations that have created a more equal system of rights. Equal opportunity, full participation, and independent living—three of the four goals of the ADA—seem more like realities for many than in decades past.

Yet, the final goal of the ADA, economic self-sufficiency, still remains far beyond reach for many. Despite progress, relics of the past remain cemented in public policy. One such relic is subminimum wage.² For people with disabilities, this 85-year-old policy is a roadblock to participating fully and equitably in the workforce.

In 1938, Congress passed a law that created a subminimum wage: a rate of compensation that allows employers to pay people with disabilities as little as pennies per hour. Back then, this was applauded as a step forward to provide employment for people with disabilities, but today, the wage and the attitudes that enable it are seen as unjust and backward. Forward-looking states across the country have been taking steps to eliminate the subminimum wage and to change labor policies to support people with disabilities.

Maine is one example. In 2020, Maine passed legislation³ that eliminated the subminimum wage and adopted the Employment First systems framework, which centers on the idea that all individuals, regardless of support need and disability, should participate in competitive integrated employment.⁴ Maine also enacted a suite of policies, including Medicaid expansion, tax-advantaged savings accounts, and better counseling on employment benefits. It also applied for and received funds through a federal competitive grant program called the Disability Innovation Fund. Maine now ranks as a top state in the nation for promoting employment for disabled people.

Maine is not alone. Although the subminimum wage policy is often kept in the shadows, for those that know it well, it has been reported on, advocated for and against, been the subject of several Government Accountability Office (GAO) reports in recent years, and largely scrutinized. Despite this attention, few, if any, analyses have been conducted at a national scale to understand the state of the subminimum wage in all 50 states plus the District of Columbia (DC). Data from the Wage and Hour Division of the U.S. Department of Labor (DOL), though available, is inconsistent, cannot be tracked longitudinally, and is only useful when considering how it applies to employers’ use of certificates for a section of the antiquated 1938 law known as 14(c). Those looking to better understand this issue often run into roadblocks when seeking deeper analyses or research.

This report examines, state by state, the policies that drive the use or elimination of subminimum wage, as well as the programs each state provides to more comprehensively support individuals with disabilities as they seek meaningful employment and fair wages. Analyzing and comparing policies across all states allows for a national perspective on the drive to eliminate the subminimum wage. It also highlights other employment-related policies used to support individuals with disabilities. We hope our report not only provides an opportunity for stakeholders to dive into their own state’s policies and practices but helps map out best practices. Whether it is Maine or Mississippi, Oregon or Iowa, our analysis offers evidence of sweeping and often surprising progress. States around the country, blue and red, rural and urban, are making significant headway in lasting ways, leading to an improved quality of life and competitive integrated employment for disabled workers in the United States.