Subminimum wage to stay in place for disabled workers
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The question over which branch of government has the power to end the program is a long-standing one. Although Biden's first labor secretary, Marty Walsh, said congressional action is required to change the program, his successor in the Biden administration — acting labor secretary Julie Su — argued the Labor Department does have the legal authority to make changes to 14(c) programs.
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As of July 1, at least 679 employers across the country were paying 35,000 workers with disabilities a subminimum wage under Section 14(c). Many of these workers have jobs in what are known as 'sheltered workshops,' facilities that segregate disabled and nondisabled workers, and may provide disabled workers with additional supervision.
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The Fair Labor Standards Act allows the wages of workers with disabilities to be set according to their 'productivity.' While the federal minimum wage is $7.25 per hour, some workers with disabilities are paid as little as 25 cents per hour, a Washington Post investigation from last year found. The investigation also found that nearly a third of 14(c) employers failed to correctly pay workers.
Proponents of the programs — including some parents of workers with disabilities — say that 14(c) creates opportunities for people who are unable to find work in the open job market. Critics say that jobs offered under 14(c) can be monotonous and that subminimum wages are an affront to the dignity of these workers.
The federal government requires 14(c) programs to prepare workers for competitive, higher-paying employment alongside people without disabilities. However, The Post's investigation found that only 0.5 percent of workers entered vocational rehabilitation services, the main pipeline for transitioning workers with disabilities to integrated workplaces with nondisabled workers. A 2021 Government Accountability Office analysis found roughly 2 percent of disabled workers in 14(c) programs moved into competitive positions.
As the Biden administration considered whether to proceed with its rule change, a number of Republican lawmakers advocated on behalf of the programs. Among them was Rep. Glenn Grothman (R-Wisconsin), who introduced legislation in December to halt the Biden administration's proposed rule. He said that facilities such as Threshold in West Bend, Wisconsin, provide meaningful employment and social connection to people whose disabilities may prevent them from finding employment in the community.
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Some disabled workers in 14(c) programs have spoken positively about their jobs. Others have become vocal opponents.
Liz Weintraub, a senior advocacy specialist at the Association of University Centers on Disabilities (AUCD), has cerebral palsy and previously worked in three 14(c) positions, including at a greenhouse, an office and a newspaper packaging facility. She said the jobs were 'horrible' because she had little choice in the type of work.
'When I was working in the workshops, probably 100 percent of the time I dreaded working,' Weintraub said.
Although the federal government will not make changes to 14(c), states have begun to sunset subminimum-wage programs within their borders. According to a report from the GAO, 16 states have eliminated subminimum-wage employment programs as of January. States have cited reasons including equality of pay and facilitating more opportunities for workers with disabilities to integrate into jobs with nondisabled people.
Caitlin Gilbert contributed to this report.
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