New York Pushes to End Subminimum Wage for Disabled Workers

News Summary

New York state lawmakers are advancing legislation to abolish an 86-year-old policy allowing employers to pay disabled individuals less than the federal minimum wage. This move aims to align New York with states that have already eliminated subminimum wages, promoting fair compensation and economic equity. The proposed change follows a national effort by the U.S. Department of Labor to end discriminatory wage practices and addresses widespread concerns regarding the exploitation of disabled workers. Advocates stress the importance of transitioning to better wage practices while ensuring adequate supports for affected individuals.

Albany, New York – New York state lawmakers are pushing to eliminate an 86-year-old policy that allows certain employers to pay individuals with disabilities less than the federal minimum wage. This initiative positions New York to join 16 other states that have recently abolished subminimum wages for disabled workers, reflecting a growing national movement advocating for fair compensation.

The proposed change comes in response to the U.S. Department of Labor’s December 2025 proposal to enact a national rule that would abolish subminimum wages for people with disabilities. This rule aims to end Section 14(c) of the Fair Labor Standards Act of 1938, which has allowed such wage practices for decades.

Currently, approximately 40,000 disabled workers in the United States receive pay below the federal minimum wage, with many individuals earning less than $3.50 an hour. A report from the Government Accountability Office in 2024 highlighted widespread violations of wage laws, uncovering millions in withheld wages from disabled workers, sparking criticism of the current policy. Critics argue that this practice is exploitative and perpetuates a cycle of poverty while infringing on basic labor rights.

Advocates for the repeal of subminimum wage policies believe that many disabled individuals have the potential to work in integrated, mainstream jobs if provided with the necessary support. Research from states like New Hampshire and Maryland, which have already repealed 14(c), indicates that there has been no increase in unemployment rates among adults with cognitive disabilities post-repeal. In fact, New Hampshire reported a rise in labor force participation, highlighting that the elimination of subminimum wages can positively affect employment outcomes for disabled workers.

Studies suggest that increasing wages for disabled workers does not adversely impact employment opportunities. Rather, it may enhance prospects for disabled individuals within the labor market. However, those in favor of maintaining the subminimum wage point to potential barriers, such as fears of job loss, if the policy is rescinded. They suggest that strong support systems must be in place during this transition to safeguard against negative employment outcomes.

Policymakers are encouraged to prioritize investments in job training and placement programs to facilitate a smooth transition to minimum wage for disabled workers. Furthermore, improved data collection on employment and economic outcomes for these workers is deemed essential for tracking progress and shaping future policies. Ensuring the sustainability of new employment opportunities is crucial, particularly for businesses that may lack experience in hiring disabled individuals.

International examples, such as the Netherlands, demonstrate successful integration of minimum wage policies for sheltered workshop workers. These nations serve as models for the U.S. in navigating the complexities of this transition. The United Nations Convention on the Rights of Persons with Disabilities (UNCRPD) also advocates against sheltered employment, promoting inclusive labor markets, although the U.S. has yet to ratify this global agreement.

A significant consideration in this transition is how ending Section 14(c) may complicate access to government benefits like Medicaid and Supplemental Security Income (SSI). Strict asset limits tied to these programs can impact financial independence for many disabled workers. Properly implementing the shift to minimum wage employment could enhance workplace dignity and security while mitigating these challenges.

In conclusion, the movement to abolish subminimum wage practices for disabled workers in New York signals a crucial shift towards equity and fairness in the labor market. As the discussion progresses, the focus on both immediate supports and long-term systemic changes will be vital in ensuring that all workers, regardless of ability, are afforded their rights to fair wages and meaningful employment opportunities.

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Additional Resources

• Crain’s New York: Ending Subminimum Wage for Disabled Workers
• Wikipedia: Minimum Wage
• New York Times: Labor and Disability Pay
• Google Search: Subminimum Wage for Disabled Workers
• Encyclopedia Britannica: Minimum Wage Debate
• CBS News: Subminimum Wage and Disability