Policy Recommendations

Since the creation of section 14(c) and the subminimum wage, the opportunities and possibilities for disabled workers have completely changed. Historically, there have been long-held paternalistic ideas about the ability of individuals with disabilities to hold a job and contribute to society. The subminimum wage proliferates low expectations for people with disabilities and implies that paying them at all for their work is an act of charity. The subminimum wage says that some pay is “good enough” even if the very existence of the subminimum wage makes individuals with disabilities second-class workers. Subminimum wage holds people with disabilities to outdated narratives about disability and blocks opportunities for economic self-sufficiency as promised in the ADA.

People with disabilities need a modern framework for employment and employment supports that promote equity, dignity, and integration. Our research shows that change is not only possible but achievable relatively quickly, as we identified many steps that both states and the federal government have taken to advance these ideals. We have three policy recommendations aimed at building on this progress.

As of the publication of this report, 12 states have fully eliminated the subminimum wage and five are actively phasing it out. Most states are moving away from subminimum wage employment. To ensure equal and fair employment opportunities for disabled workers, section 14(c) should be phased out of the Fair Labor Standards Act by federal policymakers. In the meantime, states can make legislative and other policy changes to eliminate the use of subminimum wage.

States should participate in national efforts to expand Medicaid, bolster benefits counseling, or adopt other employment policies to promote competitive integrated employment as they eliminate subminimum wage. States that have already stopped using subminimum wage or are in the process of phasing it out should consider what next steps they might take to support employees with disabilities.

Current data available from the DOL Wage and Hour Division about use of 14(c) certificates are extremely limited in scope and are not useful longitudinally. Better data are needed to ensure that as states eliminate their use of subminimum wage, opportunities for competitive integrated employment are growing. Several states, such as Colorado and Maryland, required in their legislation eliminating 14(c) certificates that data be collected on the transition of subminimum wage employees and employers.¹ This is an important accountability measure to ensure that eliminating subminimum wage increases opportunities for people. Developing a more robust and longitudinal dataset allows better policies for each state and for federal policymakers. Further, the data allow families to be informed and understand why decisions were made. The long-term economic success of disabled workers and transitioned employment settings can be tracked and shared widely.