Breaking Barriers: Study Shows Equal Pay Drives Employment for Workers with Disabilities

When Congress established the national minimum wage in 1938, it included a provision that many now consider outdated: allowing employers to pay some disabled workers less than minimum wage. Today, this federal exemption remains in place, permitting wages as low as 25 cents per hour for certain workers with disabilities.

But change is happening. Twenty-five states have taken steps to eliminate this practice, despite concerns from some program defenders that workers with intellectual and developmental disabilities might lose job opportunities if employers had to pay them minimum wage.

Those fears appear unfounded, according to new research published in JAMA Health Forum. University of Pennsylvania researchers studied two states—New Hampshire and Maryland—that banned subminimum wages. They discovered that employment rates for adults with intellectual and developmental disabilities either increased or stayed stable after the change.

"This points towards the fact that these people are able to work in equal-paying, fully integrated jobs as their peers who do not have a disability, given the right resources," explains Dr. Mihir Kakara, who led the study.

The research challenges the traditional model of "sheltered workshops," where many disabled workers earning subminimum wages have historically worked. Disability advocates have long criticized these workshops for segregating disabled workers from the broader community.

Particularly encouraging was New Hampshire's experience. Despite having no subminimum wage workers when the law changed, the state saw increased employment among people with intellectual and developmental disabilities after officially banning the practice. Researchers suggest this might be because the public debate around ending subminimum wages encouraged more families to explore employment opportunities.

While challenges remain—workers with cognitive disabilities still face reduced hours and lower overall wages compared to workers without disabilities—the study suggests that fair pay creates rather than eliminates opportunities. The ball is now in the federal government's court. Until then, whether employers can legally pay subminimum wages to disabled workers continues to depend on state law.

For more information about employment rights in your state or to connect with local advocacy groups, contact your state's developmental disabilities council.

Too busy to keep up with all the latest I/DD news and developments? Join our community of parents, caregivers, and professionals who rely on this free weekly newsletter to stay informed. We do the work of finding and compiling the most important updates, so you can focus on what matters most - caring for your loved ones and clients.

No spam, just essential news and updates. Unsubscribe anytime.