Background

People with disabilities are underemployed. This improved recently. Under federal law, employers with 14(c) certificates can pay people with disabilities far below minimum wage, typically in segregated settings (sheltered workshops). Almost everyone in 14(c) employment has an intellectual/developmental disability. Some states have eliminated sheltered workshops, but phase-out is controversial.

Objective

To examine pre- and post-pandemic trends in employment rates and subminimum wage prevalence among people with disabilities, especially cognitive disabilities, differences among states, and what national and state-by-state data reveal about associations between employment rate and subminimum wage.

Method

I analyzed 2010–2023 U.S. Census American Community Survey data on employment rate by presence of disability and presence of cognitive disability, 2010–2024 Department of Labor (DOL) data on subminimum wage certificates in Community Rehabilitation Programs (CRPs), and 2015–2024 DOL data on number of CRP workers paid subminimum wage. I assessed trends in employment and subminimum wage prevalence graphically. With linear regressions, I assessed state-by-state patterns in employment of people with cognitive disabilities and subminimum wage prevalence.

Results

Disability employment gap narrowed long-term, especially post-pandemic—moreso for people with cognitive disabilities. Long-term, every state's employment gap for people with cognitive disabilities narrowed while 14(c) enrollment decreased. States with higher subminimum wage prevalence showed much larger drops in such prevalence, but the association between employment rate and subminimum wage prevalence was modest.

Conclusion

Employment improvements parallel nationwide initiatives. Research informing public policy and hiring and retention practices should take advantage of the further post-pandemic improvement, and marketing investments should promote these practices.