Updated

Updated · The Washington Post · Jun 12

Congress Weighs 6-Year Bill to End Disabled Workers' Subminimum Wages as 15 States Show No Job Losses

Updated

Updated · The Washington Post · Jun 12

Congress Weighs 6-Year Bill to End Disabled Workers' Subminimum Wages as 15 States Show No Job Losses

Q: After 88 years, what new evidence is challenging the practice of paying disabled workers below minimum wage?

The new evidence is peer-reviewed research showing that ending subminimum wages for disabled workers does not cause the widespread job losses opponents long predicted. A recent study in *Labour Economics* examined the 15 states that have already abolished subminimum wages under Section 14(c) of the 1938 Fair Labor Standards Act. It found that while sheltered workshop jobs declined, overall employment for workers with disabilities did not fall. Employment rates, hours worked, and placement in competitive jobs remained broadly stable in the years after the policy change. The study also found a 12.4 percent drop in welfare dependence after states ended the practice, suggesting that more workers moved toward regular paid employment rather than out of the labor force. That directly weakens the central argument used for decades to defend paying disabled workers less than the federal minimum wage. Other recent evidence adds to the challenge. A 2023 Government Accountability Office report found workers under 14(c) earned an average of $4.15 an hour, with many paid under $3.50. The U.S. Commission on Civil Rights has said the practice violates the civil rights of people with disabilities, and Justice Department actions in states such as Oregon and Rhode Island have pushed employment toward more integrated settings. Taken together, the new evidence suggests disabled workers can be paid fair wages without sacrificing employment opportunities.

3 articles · Updated · The Washington Post · Jun 12

A bipartisan bill before Congress would phase out subminimum wages for disabled workers over six years with dedicated federal transition funding, backed by new peer-reviewed evidence.
Fifteen states that already ended the practice saw sheltered workshop employment drop by about 2,000 workers per state within two years, while overall disability employment, hours worked and competitive placements held steady.
Welfare dependence among workers with disabilities fell 12.4% after those state bans, with the effect strengthening in the second and third years instead of fading.
National enrollment under subminimum-wage certificates has already fallen from roughly 220,000 workers in 2016 to about 40,000 in 2024, though researchers say workers with the greatest barriers still need stronger supported-employment and job-coaching aid.