In this first post of our three-part series on disability and wages, we explain the basics of Section 14(c)employment. Section 14(c) of the Fair Labor Standards Act (FLSA) is a federal provision that allows employers to pay workers with disabilities less than the federal minimum wage under special certificates[1]. These “subminimum wage” certificates were established in 1938 with the goal of encouraging employment for people whose disabilities significantly affect their productivity. But how does 14(c) actually work, and why is it so controversial today?

What Is a 14(c) Subminimum Wage Certificate?

Under a 14(c) certificate, an employer (often a nonprofit agency) can hire an individual with a disability at a wage proportional to that person’s productivity compared to an experienced worker without a disability. In practice, this means a worker might be paid based on a “commensurate wage” determined by time studies or piece-rate calculations. For example, if a worker with disabilities performs at 50% of the standard productivity for a certain task, they might earn roughly 50% of the prevailing wage for that task. In real terms, wages under 14(c) can be very low – sometimes just a few dollars or less per hour[2][3]. Many such jobs are in sheltered workshops or training centers where most co-workers also have disabilities[4]. Typical tasks include simple assembly, packaging, or maintenance work, often performed in segregated settings rather than in mainstream workplaces.

This arrangement has provided work opportunities for individuals with intellectual and developmental disabilities (IDD) and other conditions who might not meet typical job productivity standards. It has also often come bundled with additional support services or training. Employers holding 14(c) certificates (around 788 organizations nationwide as of 2024) collectively employ roughly 40,000 workers with disabilities at subminimum wages[5]. These programs can offer a structured environment, a sense of purpose, and a chance to gain basic work experience for participants. Families and caregivers have historically seen 14(c) as a way for their loved ones to be occupied and included in a community of peers during the day.

Changing Times and Growing Scrutiny

In recent years, Section 14(c) has come under increasing scrutiny from disability advocates, policymakers, and communities. Sixteen states have enacted legislation to phase out or ban subminimum wages within their jurisdictions over the past decade[6]. There is a national trend toward “Employment First” policies that prioritize competitive, integrated employment (meaning jobs in regular workplaces paying at least minimum wage) for people with disabilities. Several bills have been proposed in the U.S. Congress to end 14(c) nationwide, reflecting a growing consensus that the law, unchanged since 1938, may be outdated in today’s context[6]. At the same time, some families and service providers express concern about what will replace 14(c) opportunities if they disappear.

SOAR’s research has been directly involved in this issue. In a recent inclusive research project conducted with the U.S. Government Accountability Office (GAO), SOAR Partners gathered firsthand accounts from individuals with IDD and their families about the impact of phasing out 14(c) employment[7]. This study – part of a broader inquiry by GAO – aimed to illuminate how the transition away from subminimum wages affects people’s lives and to ensure their voices inform policy decisions. The findings underscored that while many participants appreciated the routine and social aspects of their 14(c) jobs, they also desired fair pay and greater inclusion.

In summary, Section 14(c) was created to help people with significant disabilities participate in the workforce, but it allows pay well below the standard minimum wage. It affects tens of thousands of workers across the country, yet is increasingly seen as incompatible with modern disability rights and employment practices. In Part 2 of this series, we will delve into the debate surrounding 14(c) – examining both sides of the argument, from the perspective of those who defend these programs to those who believe it’s time to end subminimum wages. Stay tuned for the next post, and if you have questions about how 14(c) might affect your organization or loved ones, contact SOAR Partners – we’re here to help interpret the data and navigate the path forward.(Part 2 coming soon.)

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