For decades, federal law has allowed some employers to pay workers with disabilities less than the minimum wage. As more states move away from this practice, researchers are beginning to get a clearer picture of what happens to workers when subminimum wage employment ends.
A recent Disability Scoop article examines new research on states that have eliminated subminimum wage employment and what those changes have meant for people with disabilities.
What Is Subminimum Wage?
Section 14(c) of the Fair Labor Standards Act allows qualifying employers with certificates from the U.S. Department of Labor to pay certain workers with disabilities less than the federal minimum wage. Pay is based on an individual’s productivity compared with workers without disabilities performing similar work.
The practice has been debated for years. Supporters have expressed concern that eliminating 14(c) could reduce employment opportunities for people with significant disabilities. Disability advocates who favor ending the practice argue that people with disabilities should have access to competitive, integrated employment and receive at least minimum wage for their work.
What Does the Research Show?
Recent studies are providing new information about what has happened in states that ended subminimum wage.
One national study examining 15 states found that eliminating subminimum wage substantially reduced the number of people working in 14(c) employment, as expected. However, researchers did not find a significant decline in overall employment rates, hours worked or competitive integrated employment among people with disabilities.
Another 2026 study examining state minimum wage increases and the termination of subminimum wage similarly found little evidence that ending subminimum wage reduced employment opportunities for people with disabilities, including people with more significant disabilities.
The findings add important information to the national discussion, but they do not mean every worker successfully moves from a subminimum wage job into competitive employment.
A 2025 U.S. Government Accountability Office report looked specifically at workers in Colorado and Oregon. Among former 14(c) workers the states could track, fewer than half moved into other employment. Others received Medicaid-funded non-employment services, such as programs focused on socialization, daily living skills or employment readiness. The states were unable to determine what happened to everyone who left 14(c) employment.
The Transition Matters
For families, the research highlights an important distinction: ending subminimum wage and creating meaningful employment opportunities are not necessarily the same thing.
Workers with disabilities may need individualized supports to find, learn and maintain jobs in their communities. That can include vocational rehabilitation services, job development, job coaching, transportation and other supports based on the person’s needs and employment goals.
Families preparing a young person for adulthood can also use transition planning during the school years to explore employment interests, strengths, needed supports and opportunities to gain real-world work experience.
The growing body of research suggests that eliminating subminimum wage does not necessarily lead to the widespread loss of employment opportunities some have feared. At the same time, successful transitions depend on having meaningful alternatives and appropriate supports available so that people with disabilities have opportunities to work, earn wages and participate in their communities.
