Why it's still legal to pay disabled people less than minimum wage

Introduction
What are Section 14(c) certificates?
Who can do this?
What types of employers have these certificates?
How common is this?
What do disabled people and disability advocates say about this?
- The people who oppose it
- The people who support it
Why is the law newsworthy now?
What can I expect from this resource?

Introduction

In the United States, there are thousands of disabled people who are paid less than the minimum wage. This is legal and has been ever since minimum wage was made law back in 1938. Most states allow this to happen, though a few have discontinued the practice.

There are people who are fighting to change these laws and people fighting to keep these laws.

This resource is meant to help people better understand these laws, and to better understand the fights around these laws. This resource has been written as plainly as possible so that as many people as possible can understand the issues here.

This resource is meant to help everyone, but has been made with journalists in mind. The hope is that journalists can find this information helpful.

What are Section 14(c) certificates?

The Fair Labor Standards Act of 1938 is the law that established that workers in the United States have a right to a minimum wage. A minimum wage is the lowest amount of money that an employer can pay its employees for their work.

In the United States, there are thousands of disabled people who are paid less than the minimum wage. That's because The Fair Labor Standards Act of 1938 includes a rule called Section 14(c). According to this rule, certain employers can pay employees with disabilities below the minimum wage.

Who can do this?

But only certain employers can do this, and only for certain employees. To be able to pay less than minimum wage, an employer must apply for a Section 14(c) Certificate. To be able to get this certificate, the employer must prove that the disabled employee's ability to do the job is less than the ability of a worker that does not have that same disability.

In other words, no employer has the right to just decide they don't want to pay minimum wage to people with disabilities. They have to have this Section 14(c) certificate, and the certificate isn't handed out to just anyone.

For more information on how one can (or cannot) qualify for a Section 14(c) certificate, visit the Department of Labor's Employment of Workers with Disabilities at Subminimum Wages Fact Sheet.

What types of employers have these certificates?

Most of the 953 certificates are for what are called community rehabilitation programs. These programs offer a variety of services to people with disabilities:

Rehabilitation services (vocational training, independent living training, etc.)
Day treatment
Employment opportunities to individuals with disabilities

Many of the organizations that have these certificates are referred to by the term "sheltered workshops."

How common is this?

As of May 1, 2023:

953 total certificates
42 states where certificates are issued
40,112 workers being paid less than minimum wage

What do disabled people and disability advocates say about this?

Not everyone in the disability community has the same opinion on these certificates. There are big emotions on all sides of this topic.

The people who oppose it

Some people oppose this practice:

They say this law is unfair
They say this law discriminates against disabled people
They say the law implies that people with disabilities can't do the same jobs as people without disabilities
They say the law takes advantage of people who have few other job options
They say the law keeps people in poverty

The people who oppose Section 14(c) say it should be repealed, so that people with disabilities have the same minimum wage as people who don't have disabilities.

The people who support it

But there are people who say that Section 14(c) does good things for people with disabilities. The people who support Section 14(c) say it would be bad to change the law:

They say the law helps people with disabilities get jobs
They say that if the law goes away, these jobs will go away and the people who work these jobs will have no alternative
They say it's unrealistic to think that all workers with disabilities will find community employment with private businesses
They say the cost of providing the necessary support would be unaffordable
They say that the community rehab programs and workshops would go bankrupt, and would be unable to help any people with disabilities
They say these community programs and workshops are only able to exist with Section 14(c) and government assistance
They fear that taxpayers would not be willing to pay the money that would be required to pay minimum wage to all the people who participate in these sheltered workshops

The people who support Section 14(c) say that opponents have good intentions but are misguided. The supporters say that opponents fail to see the effects that could come to phasing out Section 14(c).

Why is the law newsworthy now?

There are a few reasons to consider this law now:

People across the country are trying to repeal or change the law, including a bipartisan effort led by Bob Casey to phase out subminimum wage for people with disabilities
Disabled people have more visibility now than they have in years past
Covid 19 and remote work policies have highlighted the issues faced by employees with disabilities
The law turns 85 this year, having been enacted in 1938

What can I expect from this resource?

This resource is growing, and will continue to grow. This resource will provide:

National and state-by-state data
- How many employers have this certificate
- How many employees with disabilities are paid less than minimum wage
Links and resources

Again, this resource will grow, especially in the links and resources page. Keep checking back in for more information.

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