Transformation to Competitive Integrated Employment

By: Michelle Tamas

The Transformation to Competitive Integrated Employment Act (TCIEA) aims to end subminimum wage employment for disabled individuals and advocate for competitive, integrated employment settings. Under Section 14(c) of the Fair Labor Standards Act, employers are allowed to pay disabled workers less than minimum wage. This practice has contributed to segregated work environments and limited career advancement opportunities for disabled individuals. 

Issues Identified
Approximately 44,000 individuals with disabilities in the United States are employed under Section 14(c) provisions (APSE 14c Update REV), often earning around or under $4/hour (Frequently Asked Questions – Notice of Proposed Rulemaking: Employment of Workers with Disabilities Under Section 14(c) of the Fair Labor Standards Act | U.S. Department of Labor).  Data indicates that for every dollar earned by non-disabled workers, disabled people in general, earn 87 cents (Do People With Disabilities Earn Equal Pay?). This significant wage disparity limits financial independence and perpetuates economic inequalities. 

Disabled workers also face systemic barriers beyond Section 14(c). Unemployment rates for disabled individuals are around double those of non-disabled individuals (Persons with a Disability: Labor Force Characteristics Summary – 2023 A01 Results). This subminimum wage employment often cultivates a segregated environment, limiting disabled people’s interactions with non-disabled peers. This forced isolation is due to a lack of inclusivity in schools, training, and job opportunities for disabled people, forcing them to turn to work for subminimum wages (Pennies on the Dollar: The Use of Subminimum Wage for Disabled Workers across the United States: Background). 

The current framework under Section 14(c) doesn’t encourage employers to invest in skill development and career advancement for disabled workers. Instead, more resources are allocated to maintaining segregated, low-wage environments when they could be geared toward investing in programs that equip individuals for competitive employment. There is a lack of federal incentives for skill-building initiatives within workplaces, which contributes to stagnation with disabled employees. 

Some states have already phased out 14(c) programs, demonstrating that competitive employment is achievable and beneficial for disabled individuals, including Alaska, Maine, Maryland, New Hampshire, Oregon, Washington, Hawaii, Colorado, California, Delaware, Tennessee, South Carolina, and Rhode Island (State Legislative Watch – Association of People Supporting Employment First). These states have relatively high GDP per capita and are doing well, showing that phasing out Section 14(c) doesn’t negatively impact the economy.

The reason why Section 14(c) can be considered a concern for learning-disabled people is because learning disabilities are prominent in those working under Section 14(c) or even being unemployed. Students with learning disabilities are three times more likely to drop out of high school compared to their nondisabled peers, and that can contribute to why only 48% of adults with learning disabilities are employed (31 Learning Disabilities Statistics, Prevalence & Facts). Learning disabilities can also exist alongside other disabilities, especially intellectual or developmental ones. For example, around 80% of people with Autism Spectrum Disorder (ASD) may have a learning disability.  90.96% of workers under Section 14(c) have an intellectual/developmental disability, which includes ASD (Frequently Asked Questions – Notice of Proposed Rulemaking: Employment of Workers with Disabilities Under Section 14(c) of the Fair Labor Standards Act | U.S. Department of Labor). These statistics show that Section 14(c) greatly affects intellectually/developmentally disabled people, who more than likely will have a learning disability. 

Areas of Opportunities
The TCIEA can address certain inequities perpetuated by 14(c) by providing fair wages and inclusive workplaces. Paired with advocacy groups, policymakers, and business leaders, this policy can lead to some reform and end subminimum wage practices. Certain states have demonstrated already that competitive employment for disabled employees is feasible, and policymakers can base things on these successes in order to design effective strategies nationwide if the federal government continues to focus on diversity and inclusion in the workforce, which provides some more incentive to prioritize equitable, inclusive employment. 

Recommendations
There are many ways this policy can be put into action. First, federal action can be taken. Congress should pass the TCIEA (introduced in 2021), which would eliminate Section 14(c) in a phased approach and reallocate those funds to support job training programs for disabled individuals (H.R.2373 – 117th Congress (2021-2022): Transformation to Competitive Integrated Employment Act | Congress.gov | Library of Congress). This transition would increase economic opportunities overall and reduce reliance on these sheltered workshops, which would align with federal policies and inclusive employment principles. 

The Department of Labor (DOL) and state workforce agencies are other areas that can implement certain aspects of this policy. The DOL, partnering with state workforce agencies, could create technical assistance centers to guide employers on inclusive hiring practices, which would be supported by educational campaigns to reduce the stigma around hiring disabled people. For example, states that have already successfully implemented similar programs could report on their lower turnover rates and positive employee feedback. 

This policy would also incentivize employers. Tax benefits could be introduced for employers actively employing disabled individuals in competitive roles. Financial incentives could encourage employers to invest in accessibility and accommodation, promoting a diverse, inclusive, and effective workforce. 

Vocational training and developmental investments should also be made. Moving from 14(c) programs to vocational training initiatives, such as apprenticeships and mentorship programs for disabled individuals, would have positive impacts on the economy and employment. Such training initiatives can improve job retention, provide pathways to higher-paying roles, and attract more people to the workforce. 

There should be longitudinal data tracking and reporting along with all these calls to action. Measuring employment outcomes for disabled individuals in integrated settings would provide valuable data. This data collected could help assess the effectiveness of the TCIEA, identifying certain trends, challenges, and successes to guide future policy decisions. 

Currently, at a more federal level, attempts are being made to phase out Section 14(c) (Phasing out pay inequity for workers with disabilities | U.S. Department of Labor Blog) by the Department of Labor. It is proposed that within three years, employers would have to cease paying disabled adults subminimum wages and hopefully integrate disabled people better into society. This rule, however, has not been finalized. Some groups, like the Autistic Self Advocacy Network, are urging Congress to pass this bill (Transformation to Competitive Integrated Employment Act) and for the Department of Labor to finalize their proposed rule in 2025. 

Conclusion 
The TCIEA provides a timely, evidence-based framework to eliminate subminimum wage and promote equitable, inclusive employment for disabled individuals. Phasing out Section 14(c) will address income disparities, improve quality of life, and foster a more diverse workforce that would support border social and economic goals. 

Working has become more accessible in the last few years, mainly due to shifts to remote and flexible work due to COVID-19 and accommodations being made. This would be a good opportunity to fully integrate all individuals into the workforce and make competitive integrated employment accessible. Taking policy action now can ensure that disabled individuals receive fair wages and the opportunity to thrive while working, benefitting both the individual and possibly the economy. 

* The National Center for Learning Disabilities provides a platform for its Young Adult Leadership Council members and alumni to share their experiences and perspectives. The views expressed in these pieces are their own and do not necessarily reflect the thoughts or opinions of NCLD. These writings are intended to share personal insights and should not be cited as official positions or credible sources for policy or research purposes.