In a landmark move aimed at promoting equality and fairness in the workplace, California has officially banned subminimum wages for workers with disabilities. Effective January 1, 2025, this change reflects the state’s commitment to fostering inclusivity and ensuring that all workers, regardless of physical or mental impairments, receive at least the state’s minimum wage or applicable local wage ordinances. This progressive reform will have profound implications for disabled workers, their employers, and California’s labor market as a whole.
What Are Subminimum Wages?
Subminimum wages refer to wages paid to employees that are lower than the standard minimum wage, typically allowed under special provisions. Under federal law, the Fair Labor Standards Act (FLSA) has historically permitted employers to pay subminimum wages to disabled workers under a program governed by Section 14(c). To qualify, employers must obtain a certificate from the Department of Labor (DOL), allowing them to pay disabled workers based on their productivity levels rather than a fixed minimum wage. This was intended to incentivize employers to hire workers who might otherwise struggle to find employment due to their disabilities.
While this program was seen by some as a way to provide opportunities for disabled individuals, critics have long argued that it perpetuates discrimination, undervalues the contributions of disabled workers, and reinforces outdated notions about their capabilities.
California’s Legislative Change
With the passage of new legislation, California will join a growing number of states opting to phase out subminimum wages. As of January 1, 2025, California Labor Code Section 1191.5—which previously allowed subminimum wages for workers with disabilities—will be repealed. Moving forward, all employees with disabilities will be entitled to the state minimum wage or the applicable local minimum wage, whichever is higher. This change aligns with California’s broader efforts to ensure workplace equity and eliminate systemic barriers that have historically marginalized disabled workers.
Governor Gavin Newsom has championed this reform as part of a suite of progressive labor measures. “These practical reforms protect what matters most while creating more opportunities for all Californians,” he said in a statement. “We are addressing the biggest emerging challenges head-on and ensuring that every worker has the dignity and respect they deserve.”
Impact on Workers With Disabilities
The ban on the subminimum wage is expected to have a transformative impact on disabled workers in California. For years, many disabled individuals have been relegated to low-paying jobs, often earning less than half of the minimum wage. This not only affected their financial independence but also perpetuated stigmas surrounding disability and employment.
With the new law, disabled workers will now be guaranteed the same baseline pay as their peers, promoting economic self-sufficiency and a greater sense of equality in the workplace. Additionally, advocates believe this change will challenge employers to recognize the skills and contributions of disabled employees and provide the necessary accommodations to help them succeed.
Implications for Employers
Employers currently utilizing subminimum wage certificates will need to adjust their policies and practices to comply with the new law. Those who previously relied on Section 14(c) certificates to pay disabled workers less than the minimum wage must now ensure that all employees earn at least the state or local minimum wage. This may require employers to reevaluate job roles, invest in training and accommodations, and adopt more inclusive hiring practices.
While some employers may be concerned about increased labor costs, others see this as an opportunity to build a more diverse and inclusive workforce. Studies have shown that employing disabled workers can bring significant benefits, including improved workplace morale, enhanced creativity, and access to untapped talent pools.
Federal Developments and the Broader Context
California’s decision comes amid a broader national conversation about the future of subminimum wages. Last year, the U.S. Department of Labor proposed a rule to phase out Section 14(c) certificates nationwide, citing significant advancements in employment opportunities for disabled individuals since the program’s inception. Under the proposed rule, no new certificates would be issued, and existing certificates would be gradually phased out.
However, this federal proposal remains subject to political changes. If the federal rule is finalized, it could bring about a nationwide end to subminimum wages, mirroring California’s state-level reforms. For now, California’s action positions it as a leader in labor rights, setting an example for other states to follow.
The Road Ahead: Challenges and Opportunities
While the repeal of subminimum wages is a significant step forward, challenges remain in ensuring the successful integration of disabled workers into the broader labor market. Employers must be prepared to address these challenges by:
- Investing in Accessibility: Providing workplace accommodations such as assistive technology, flexible schedules, and accessible facilities to support disabled employees.
- Training and Education: Educating managers and staff on disability awareness and inclusion to foster a more supportive workplace culture.
- Collaborating With Advocacy Groups: Partnering with disability advocacy organizations to develop best practices for hiring, training, and retaining disabled workers.
For workers, these changes represent not only a chance for financial equity but also an opportunity to showcase their skills and redefine societal perceptions about disability and work. Advocates believe that the elimination of subminimum wages will pave the way for more disabled individuals to achieve meaningful and gainful employment.
Fighting for the Fair Wages You Deserve
California’s ban on subminimum wages for disabled adults marks a pivotal moment in the fight for workplace equality. By guaranteeing that all workers receive at least the minimum wage, the state is taking a bold stand against outdated practices that undervalue the contributions of disabled individuals. While challenges remain, this reform signals a brighter future for workers with disabilities, one where they can participate fully in the workforce and earn fair compensation for their labor.As the January 1, 2025, implementation date approaches, employers and workers alike will need to prepare for this transition. The Law Offices of Todd M. Friedman, P.C., is committed to helping workers understand their rights and navigate these changes. If you or someone you know has questions about wage laws or workplace discrimination, contact our office today for expert guidance and support.
