In the first two posts of this series, we explained what 14(c) subminimum wage employment is and examined the debates around its future. In this final installment, we turn to solutions. How can we ensure people with disabilities have meaningful work at fair wages if 14(c) goes away? We explore practical, inclusive alternatives – from financial tools that empower individuals, to incentives that encourage employers to hire inclusively – all grounded in SOAR’s person-centered, apolitical approach.

From Sheltered Work to Inclusive Employment

Transitioning away from 14(c) requires a holistic, person-centered game plan. It’s not enough to simply close sheltered workshops; we must actively create pathways for individuals with disabilities to succeed in competitive integrated employment. This means jobs in regular workplaces where people with disabilities work alongside others without disabilities and earn at least the minimum wage. Achieving this goal involves addressing both sides of the equation: the workers and the employers.

On the worker side, individuals may need training, education, assistive technology, or supported employment services (like job coaching and placement programs) to thrive in a new job. On the employer side, businesses may need incentives or guidance to hire and accommodate employees with disabilities. There are already several tools and initiatives to facilitate these changes. Below, we highlight two important resources that often come up as alternatives in the 14(c) discussion: ABLE accounts and the Work Opportunity Tax Credit (WOTC).

Empowering Individuals Financially: ABLE Accounts

One concern for workers with disabilities moving into higher-wage jobs is the potential impact on their benefits and long-term financial security. Enter ABLE accounts, which are a powerful tool to address this concern. Achieving a Better Life Experience (ABLE) accounts are tax-advantaged savings accounts designed specifically for people with disabilities. Crucially, money saved in an ABLE account does not count against eligibility for programs like Medicaid or Supplemental Security Income (SSI), up to certain limits[14]. In other words, individuals can earn income and save it for the future without risking the loss of healthcare or income benefits that usually have strict asset caps.

How does this help in a post-14(c) world? It alleviates the fear that earning a higher wage (say, moving from $4/hour to $10 or $15/hour) will automatically disqualify someone from vital supports. With an ABLE account, a worker with disabilities can deposit excess earnings or savings, ensuring their assets remain below SSI/Medicaid thresholds while still benefiting from their paycheck. These accounts can be used for disability-related expenses such as education, transportation, job training, housing, and more. Essentially, ABLE accounts encourage greater financial independence: a person can build a nest egg for their needs, which wasn’t feasible when earning only pocket change under 14(c). Families and individuals are encouraged to learn about and open ABLE accounts if they haven’t already – it’s a practical step toward economic empowerment. (For more information on ABLE accounts and eligibility, you can visit the ABLE National Resource Center[15] or consult with financial advisors familiar with disability planning.)

Incentivizing Inclusive Hiring: Work Opportunity Tax Credit (WOTC)

On the employer side, one of the most cited alternatives to 14(c) is the Work Opportunity Tax Credit, commonly known as WOTC. This is a federal tax credit program that encourages businesses to hire people from certain groups that often face barriers to employment – including individuals with disabilities. Employers who participate can receive a tax credit for each qualifying new hire, which can amount to a percentage of the employee’s wages (typically 40% of the first $6,000 earned, up to $2,400, for most target groups, and even higher credits for hiring certain veterans or others)[16]. The logic is simple: rather than allowing a subminimum wage, society can reward employers through the tax code for doing the right thing – hiring inclusively and paying fair wages.

For example, if a retail company hires a young adult with an intellectual disability into a customer service role and pays them the standard wage, that company could qualify for the WOTC, reducing its tax liability. This helps offset any extra costs (like additional training or accommodations) and makes the hiring decision easier from a business perspective. The WOTC has bipartisan support and has been renewed multiple times by Congress, currently authorized through at least 2025. Spreading awareness of WOTC is key: many small businesses, in particular, may not know that such credits exist. By taking advantage of WOTC, employers can invest in diverse talent and get a financial boost for doing so – a win-win scenario.

Beyond ABLE and WOTC: Building an Inclusive Future

While ABLE accounts and WOTC are two important pieces, they are part of a larger puzzle in a successful post-14(c) employment landscape. Other elements include: robust vocational rehabilitation services, partnerships between disability service providers and local businesses, apprenticeship or internship programs tailored for people with disabilities, and state-level incentives or grants for inclusive employment initiatives. Many states that have phased out 14(c) have increased funding for supported employment and day services to ensure individuals have meaningful daily activities and opportunities to work toward competitive jobs.

Crucially, the person-centered approach remains at the heart of these efforts. As we move away from one-size-fits-all sheltered workshops, it’s important to recognize that each person has unique strengths, interests, and support needs. Some may thrive in a regular job quickly, while others might prefer or require more gradual pathways – such as part-time work combined with community activities. The goal is choice and empowerment: people with disabilities, like anyone else, should be able to pursue careers or activities that fulfill them, with the supports they need.

SOAR Partners has been actively involved in facilitating these transitions. Through our research (such as the GAO-linked project capturing voices of former 14(c) workers) and consulting work, we’ve seen first-hand what helps make inclusive employment succeed. Clear communication with families is one factor – addressing fears and setting realistic expectations. Collaboration among stakeholders is another – schools, service agencies, employers, and policymakers all need to work in concert.

Call to Action: Let’s Soar Toward Inclusive Employment

As we conclude this series on 14(c) and subminimum wage employment, one thing seems to be clear: change is coming, and it can be change for the better if we all work together. We invite businesses, nonprofits, policymakers, and families to embrace these inclusive alternatives. Consider setting up ABLE accounts for financial security, and if you’re an employer, look into hiring talent through programs like WOTC. Most importantly, keep the individual at the center – listen to the person with a disability about their goals and interests, and tailor opportunities accordingly.

SOAR Partners is here to help navigate this transition. Whether you are a service provider seeking to redesign your programs, a government agency formulating policy, or an employer aiming to diversify your workforce, our team offers expertise in research, strategy, and implementation of person-centered employment solutions. We’ve supported federal research on disability employment changes and helped organizations implement plans to move beyond 14(c) in a way that uplifts everyone involved.

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