Washington, DC — The National Association of Councils on Developmental Disabilities (NACDD) and State Councils on Developmental Disabilities across the country are expressing deep disappointment following the U.S. Department of Labor’s decision to withdraw its proposed rule that would have phased out the use of Section 14(c) certificates under the Fair Labor Standards Act—an outdated policy that allows people with disabilities to be paid less than minimum wage.
“We were so close to the finish line,” said Jill Jacobs, Executive Director of NACDD. “The disability community spoke loudly and clearly: subminimum wage is discriminatory, unnecessary, and harmful. The administration had the chance to do the right thing, and it chose to walk away.”
The Department cited a lack of statutory authority to eliminate a congressionally created program, despite its own finding in the original proposed rule that 14(c) certificates “are no longer necessary” to prevent the curtailment of employment opportunities. The withdrawal effectively maintains a policy that reinforces segregation and poverty for people with disabilities—particularly those with intellectual and developmental disabilities (I/DD).
“I’m angry and feel betrayed by the whole system that allows subminimum wage for people with disabilities to continue,” said David Pinno, a former 14(c) worker from Wisconsin who gave testimony and submitted comments in favor of the proposed rule. “I worked in a sheltered workshop in Wisconsin where I was paid $4.28 per hour. Other people did the same work and got paid minimum wage—a lot more than me. I felt worthless and was often retaliated against for speaking my mind. I chose to leave the sheltered workshop and pursue other work. I ended up working two jobs for $13 per hour at McDonald’s and Goodwill. I would never have been able to be independent and own my own home if I had remained stuck in 14(c) just because of my disability. 14(c) is wrong and needs to end.”
David’s experience is unfortunately not unique. According to the Department of Labor, over 1,100 employers hold active 14(c) certificates that allow more than 40,000 workers to be paid less than minimum wage. The majority of workers in 14(c) settings have intellectual and developmental disabilities (I/DD).
“Working for less than minimum wage took away my dignity,” said Donna Spears, a former 14(c) worker from Louisiana. “I worked as a secretary doing hard administrative work for only 45 cents an hour (about $38 a month). I was humiliated when I learned that other workers were paid much more than me for the same work. Worse, some of these people got credit for projects I completed. I decided to leave the sheltered workshop because I knew I could do better. I went back to school and now have two degrees in Psychology. I now work for a fair wage helping people with I/DD advocate for themselves. 14(c) has to end. It is wrong because it takes away the dignity of work and exploits people like me.”
State Councils on Developmental Disabilities submitted hundreds of comments during the rulemaking process in support of phasing out 14(c), joining the national call for competitive integrated employment. The proposed rule marked significant progress toward aligning federal labor policy with the civil rights goals of the disability community.
“The use of 14(c) is a relic of a different era,” said Jacobs. “We are not giving up. If the Department won’t act, we are calling on Congress to eliminate Section 14(c) once and for all and affirm that every worker deserves fair pay—regardless of disability.”
DD Councils will continue working alongside self-advocates, families, providers, and employers to build inclusive employment systems that offer real jobs, real wages, and real futures.
