Author: April Ogden, Founder and CEO, It’s Your Outcome

Insights from It’s Your Outcome Career Coaching

When you hear about laws allowing subminimum wages for disabled workers, it might sound outdated—like something from a different era. In fact, you may wonder, “Are companies still really doing this?” Surprisingly, yes. Despite decades of progress in workplace inclusion

Section 14(c) of the Fair Labor Standards Act (FLSA)

still permits employers to pay disabled workers below minimum wage based solely on their productivity.

As the Founder and CEO of It’s Your Outcome, I’m deeply invested in creating equitable employment opportunities for disabled individuals. Wage equity isn’t just a policy issue—it’s a matter of dignity and inclusion. When Section 14(c) was introduced in 1938, it reflected an early recognition of the need for employment opportunities for disabled individuals. Yet this approach missed the mark, setting up a separate, lower pay scale that continues to hold people back. Here’s why this law still matters—and why we urgently need to rethink it.

How does Section 14(c) impact disabled workers in 2024?

Section 14(c) was initially designed to encourage hiring disabled workers by making their employment more affordable for businesses, allowing wages below the federal minimum. But over time, it has created a two-tier wage system, leaving many disabled workers in low-paying roles with limited opportunity for growth—despite their hard work and contributions.

This issue isn’t just about wages. It’s about fairness, financial security, and the right to pursue meaningful career paths. In today’s workforce, where we know so much more about inclusion and diverse abilities, it’s clear that this outdated law hasn’t kept pace. For workers with disabilities, the impact is significant, often trapping them in a cycle that limits financial independence and professional advancement.

If it’s outdated, why hasn’t Section 14(c) been repealed?

Replacing a long-standing policy like Section 14(c) takes time, but meaningful change is happening. Several states—Alaska, Maryland, New Hampshire, and Vermont—have already ended subminimum wages for disabled workers, proving that fair, competitive wages are both achievable and beneficial. Even states known for their cautious approach to policy, like Utah, have made strides toward wage equity, showing that this is truly a bipartisan issue.

At the federal level, there’s momentum, too.

The Transition to Competitive Integrated Employment Act (TCIEA)

 is currently gaining support in Congress. This bipartisan bill would phase out Section 14(c) nationwide, helping create a more inclusive workforce with fair wages for all.

What’s the real impact of subminimum wages on disabled workers today?

Some argue that Section 14(c) helps create job opportunities within sheltered workshops, which are designed to provide a safe, structured work environment for disabled individuals. While this was the original intent, we’ve seen that this model often leaves disabled workers in low-wage roles with limited pathways for growth.

Moreover, the use of subminimum wages has expanded beyond sheltered workshops into other workplaces, including competitive and integrated settings. This means that disabled workers can be paid below minimum wage even while collaborating with non-disabled colleagues, performing valuable roles within mainstream workplaces. Many disabled employees in these positions express a desire to be fairly compensated for their contributions and to have access to the same professional development opportunities as their peers.

Ending subminimum wages doesn’t mean eliminating supportive work settings—it means transforming these roles into ones where workers receive fair pay, recognition, and opportunities for advancement. A truly inclusive workforce treats all individuals as valued contributors, with the right to fair wages and the opportunity to thrive.

Why Wage Equity for Disabled Workers Matters Now

True inclusion in the workplace means more than just hiring—it requires fair wages for all. Ensuring that disabled workers receive competitive pay strengthens our workforce, builds a more inclusive society, and shows our commitment to real equity. Ending Section 14(c) is a crucial step toward recognizing the value and contributions of every worker, no matter their abilities.

How You Can Support Wage Equity and Inclusion for Disabled Workers

SUPPORT INCLUSIVE LEGISLATION: Policies like the TCIEA are essential for lasting change. Phasing out subminimum wages is a necessary step toward real wage equity.

CHAMPION FAIR PAY PRACTICES: Organizations can adopt hiring and pay practices that recognize all abilities equally and reward contributions fairly.

PERFORM A PAY EQUITY AUDIT: Human Resources leaders can make a big impact by conducting a pay equity audit, comparing the wages of employees who’ve disclosed disabilities to those without. Identifying and addressing any gaps can help ensure that all employees, regardless of ability, are fairly compensated for their work.

RAISE AWARENESS: Educating others about subminimum wages and their impact inspires change. The more people understand, the closer we get to achieving true wage equity.

Building a Workforce on Equity and Respect

As we look to the future, let’s make sure that fairness, respect, and inclusion are the foundations of every workplace. Wage equity for disabled workers isn’t just a policy—it’s a commitment to building a society that values each person’s contribution.

But here’s the question: Will we seize the opportunity to create true wage equity for disabled workers, or will this remain a conversation for “another time”? The choice to act now is ours.

Ready to make an impact?

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