Exploitative or Productivity-Based Social Policy? Decomposing the Components of Disability Subminimum Wages

In an open access article for Journal of Disability Policy Studies, David Pettinicchio and Michelle Maroto investigate how different individual, organizational, and regional variables contribute to the prevalence of subminimum wages in competitive employment among hourly workers with disabilities in the United States. The practice of paying workers with disabilities less than minimum wage is permitted by U.S. labour law and is often framed as a necessary step toward achieving labour market inclusion; in reality, though, such wages are often linked to poverty and labour market segregation. The authors find that work characteristics and occupational differences are the most significant factors in determining the prevalence of subminimum wages, and their analysis provides a starting point for considering the role of occupational norms and state contexts in shaping the prevalence of subminimum wages in the broader labor market.

David Pettinicchio is CGSP affiliated faculty and Associate Professor and Chair, Sociology, University of Toronto-Mississauga. He is also affiliated faculty in the Munk School of Global Affairs and Public Policy.

Citation

Pettinicchio, D. and Maroto, M. (2026). Exploitative or Productivity-Based Social Policy? Decomposing the Components of Disability Subminimum Wages. Journal of Disability Policy Studies. https://doi.org/10.1177/10442073261468706

Abstract

Many workers in the United States are paid less than the minimum wage. For certain workers, including people with disabilities, Section 14(c) of the Fair Labor Standards Act (FLSA) allows certificate-holding employers to pay workers subminimum wages to support labor market productivity. However, subminimum wages are associated with a range of factors beyond Section 14(c) certificates, and these wages are often linked to poverty. Using 2009–2019 CPS-MORG data and a series of decomposition models, we examine how different individual, organizational, and regional variables contribute to the prevalence of subminimum wages in competitive employment among hourly workers with disabilities, especially those with cognitive or independent living disabilities. Decomposition models show that varying rates were linked to work characteristics and occupational differences, far more than individual variation, highlighting the role of norms and organizations in supporting the use of subminimum wages. Throughout, we emphasize how national policies and their implementation via states and organizations differently affect outcomes for people with disabilities. The findings in this paper speak to earning subminimum wages beyond the Section 14(c) certificate system and come at a time of increased political focus on raising the minimum wage more generally.