DisabilityEmployment – Wisconsin Hearing Revives Subminimum Wage Debate

DisabilityEmployment – A congressional field hearing in Wisconsin has brought renewed attention to the long-running debate over how workers with significant disabilities are paid in the United States. Lawmakers gathered to examine the future of Section 14(c), a federal provision that permits certain employers to compensate workers based on measured productivity. The discussion highlighted sharp differences over whether the policy supports meaningful work opportunities or perpetuates inequities.

Lawmakers Move Debate Beyond Washington

The hearing took place at Green Valley Enterprises in Beaver Dam, where members of Congress heard testimony from advocates, families, and policy experts. Representative Glenn Grothman of Wisconsin said the intent was to hold the conversation outside Washington, D.C., and closer to the communities directly affected.

Grothman described employment as a vital part of personal development, saying work provides not only wages but also a sense of belonging and engagement. In his view, removing Section 14(c) could unintentionally reduce opportunities for individuals who rely on specialized workplaces.

Understanding Section 14(c)

Section 14(c) of the Fair Labor Standards Act allows approved employers to pay wages that correspond to a worker’s productivity when a disability significantly affects job performance. Supporters characterize the program as an entry point into the workforce for individuals who might otherwise struggle to secure employment. Critics, however, refer to it as a subminimum wage system that undervalues labor.

Grothman argued that eliminating the provision could lead to the closure of community-based work centers, disrupting social networks many workers depend on. He pointed to examples from states that have ended similar programs, suggesting that not all workers successfully transitioned into competitive jobs.

Cultural and Economic Perspectives

Representative Burgess Owens also defended the current framework, framing the issue as one tied to work ethic and cultural values. He emphasized that employment, even at adjusted wages, can foster pride and routine. According to Owens, many employees benefit from structured environments where they feel their contributions matter.

Barbara LeDuc, President and CEO of Opportunities Inc., echoed the call for preserving the policy as an option rather than a mandate. She told lawmakers that removing 14(c) would not eliminate existing challenges faced by workers with disabilities but could limit available pathways.

LeDuc referenced findings from a 2025 Government Accountability Office report, noting that data gaps remain in states that have phased out subminimum wage certificates. She said the long-term outcomes for many individuals who left sheltered employment settings are still unclear.

Families Share Personal Experiences

Kathy Armstrong, whose adult daughter Clara works at Green Valley Enterprises and has Down syndrome, described the program as a source of stability. She said the workplace allows her daughter to perform tasks at a pace suited to her abilities while maintaining a consistent routine.

Armstrong raised concerns about proposals that encourage part-time community placements, questioning how individuals would spend the remainder of their week if structured employment options were reduced.

Critics Call for Competitive Wages

Opponents of Section 14(c) argue that the system isolates workers and reinforces low-income conditions. Laura Owens, a professor at the University of Wisconsin-Milwaukee, told the panel that wage disparities tied to disability can limit economic mobility and long-term advancement.

She cited research suggesting that states which have eliminated subminimum wages report stronger participation in integrated employment settings. According to Owens, raising expectations and ensuring equal pay for equal work can lead to better employment outcomes.

Kit Brewer, Vice President of the Coalition for the Preservation of Employment Choice, challenged that interpretation. He said available statistics indicate that many individuals face difficulties after sheltered workshops close. Brewer told lawmakers that fewer than one-quarter of workers in certain states were able to move into competitive positions following program changes.

A Divided National Landscape

The debate unfolding in Wisconsin mirrors broader national trends. As of 2024, 15 states along with the District of Columbia have ended subminimum wage certificates, while others continue to allow them under federal guidelines. Policymakers remain divided over how best to balance inclusion, opportunity, and economic fairness within the disability employment system.

The outcome of the discussion could shape future legislation and determine how employment options evolve for thousands of Americans with significant disabilities.