Washington Post Investigates Impact of Subminimum Wage Law on People with Disabilities

Community Inclusion
5 min readSep 17, 2024

--

A white woman, in the middle stage of life, with brown eyes and hair with blond highlights, smiling in front of a blue background.

Over the past several months, ICI’s Jean Winsor and other ThinkWork! staff contributed to a series of Washington Post articles about the impact of subminimum wage (Section 14c of the Fair Labor Standards Act) on people with intellectual and developmental disabilities (IDD) across the US.

People with IDD often work in jobs that pay less than minimum wage. Since 1938, Section 14c has allowed organizations that hold 14c certificates to pay employees with disabilities less than minimum wage. The original stated goal of the 14c certificate program was to help people with disabilities prepare for competitive integrated employment. However, more often, these workers get stuck making subminimum wage for life.

For many years, advocates have called for the elimination of the 90-year-old program. This blog summarizes the Washington Post series. You can access each article linked from this blog if you are subscribed to the Washington Post.

Why Some US Disabled Workers are Making Less than a Dollar an Hour

August 30, 2024

In the US, at least 40,000 workers with disabilities are paid less than minimum wage. For this article, the Washington Post looked at a sample of about 230 organizations paying subminimum wages. Most of the facilities are nonprofit organizations and some are private or state-run operations.

What types of jobs are included in 14c?

People with disabilities making subminimum wage work in a range of jobs, including packaging, assembly work, janitorial, manufacturing, and food service. Commonly, these jobs are located in “sheltered workshops.”

Who are the employers that pay subminimum wage?

Many popular businesses partner with organizations that pay subminimum wages. The companies generally see this work as charitable rather than problematic.

How much do most of the 14c employees earn in these jobs?

The Government Accountability Office analyzed a sample of organizations with 14c certificates between 2019 and 2021. Data suggest that half of the people with disabilities working under 14c programs make less than $3.50 per hour and about 12% of workers make less than $1 per hour.

Read the full article: Why Some US Disabled Workers are Making Less than a Dollar an Hour

Some Disabled Workers in the US Make Pennies per Hour. It’s Legal.

August 30, 2024

This article discusses how despite federal mandates, working under a 14c certificate does not help people move to competitive integrated employment. Usually, 14c programs lack accountability for advancement to competitive integrated employment and there is little oversight of how the organizations determine workers’ wages.

Do people with IDD advance from 14c to competitive integrated employment?

Not typically. Though this was one of the original stated purposes of the 14c program, only 0.5% of people who work under a 14c certificate are referred to vocational rehabilitation programs, which is a big predictor of job attainment.

Many employees in 14c programs stay in sheltered workshops for years, even for life. People with IDD say they’d like to make more money and do more interesting work, but the path out of 14c is often a steep, uphill battle. Jobs in sheltered workshops rarely give people with IDD opportunities to learn the types of skills that would help them advance to careers in their community.

Dr. Winsor shared, “The likelihood of you going out and getting a job where you’re assembling cardboard boxes is pretty low. Those jobs do not exist en masse in our economy. So why would you be training someone to do that?”

How much does this program cost taxpayers?

ICI ThinkWork staff shared data about funding for sheltered workshops with Washington Post reporters. This type of data is important because a large percentage of 14c work occurs in sheltered workshops. In 2021, 26 states spent $431 million taxpayer dollars on work services in these types of facilities, and 88% of that funding came from Medicaid. Organizations with 14c certificates are supposed to help workers advance to competitive integrated employment as a condition of receiving this Medicaid funding.

Who holds 14c certificate holders accountable?

There is no federal agency currently in charge of making sure people move from 14c programs into competitive integrated employment.

The Department of Labor’s Wage and Hour division does investigate 14c program violations, but they are understaffed to adequately monitor and enforce labor laws in over 11 million workplaces. The Washington Post analyzed Department of Labor records showing that when investigations are conducted, at least 38% of current certificate holders have violated compensation and other 14c program rules.

Ultimately, people with IDD are impacted most by this lack of accountability. Kevin Docherty, a lawyer from a firm in Baltimore who has represented people working in 14c facilities, shares: “Even when it comes to enforcing their rights, people with disabilities are at a disadvantage.”

Read the full article: Some Disabled Workers in the US Make Pennies per Hour. It’s Legal.

Fight Over Pay for People with Disabilities may Erupt Next Month

August 30, 2024

People with disabilities and other advocates have been fighting for many years to eliminate 14c. This article examines the other side of the story: parents and families who are fighting to keep the program alive.

President Biden’s Department of Labor has submitted a rule for review by the

White House Office of Management and Budget that would increase regulations and possibly eliminate 14c altogether.

Are their states in the US that have already eliminated 14c?

Yes. So far, 13 states and DC have made it illegal to pay people with disabilities less than minimum wage. Three other states — California, Virginia, and Nevada — are in the process of phasing out the 14c program. However, some states, like Missouri, are moving to protect the use of subminimum wages.

Why do people support the program?

Supporters of 14c believe it provides an option for people with IDD who could not otherwise get jobs in the community. However, in the eight states that eliminated 14c before 2022, employment rates for people with IDD have actually increased by 14%!

Read the full article: Fight Over Pay for People with Disabilities may Erupt Next Month

--

--

Community Inclusion
Community Inclusion

Written by Community Inclusion

The Institute for Community Inclusion (ICI) promotes the inclusion of people with disabilities in school, work, health care and community activities.

No responses yet