State-Level Analysis of Subminimum Wage Use for Individuals With Disabilities in the United States: Implications for Policy and Practice

Despite considerable legislative and advocacy-based efforts to end subminimum wage practices, many Americans with disabilities are still paid below the federal minimum. Section 14(c) of the Fair Labor Standards Act allows employers holding certificates to pay less than minimum wage to individuals with disabilities whose work capacity or productivity is impaired due to disability. The majority of employers paying subminimum wages are facility-based programs also known as sheltered workshops. This work is usually performed in segregated settings away from the rest of the nation’s workforce. Subminimum wage practices continue despite clear evidence that even those with the most significant disabilities can be successfully employed in competitive integrated employment when supports are provided. The purpose of this study was to examine the continued use of subminimum wages in the United States and to identify whether there are any state-level characteristics or policies that predict their use. Descriptive analysis and linear regression were used in this investigation. Findings indicate that subminimum wage practices continue to be prevalent in most states, and most prominently in the Midwest region. Implications and recommendations for reducing subminimum wage pay for individuals with disabilities are provided.