How Repealing Part of a 1938 Law Could Affect Jobs and the Future Health of People with Disabilities

People with disabilities can be paid less than the federal minimum wage—sometimes as little as 25 cents an hour—under Section 14(c), part of a Depression-era law. The Biden administration and a bipartisan Congressional group, including U.S. Sen. Bob Casey, D-PA, are working to end this controversial practice, including through legislation, but effects on workers’ employment and health are unclear.

A new LDI paper shows the potential impact of repealing Section 14(c). Led by former LDI Associate Fellow Mihir Kakara, now at NYU Langone Health, and LDI Senior Fellow Atheendar Venkataramani, the study examined how ending Section 14(c) at the state level affected people with disabilities. The researchers found an overall increase in labor force participation, although with state-level variation.

Venkataramani: Social and economic opportunity are critical drivers of health. Compared to people without disabilities, people with disabilities have high unemployment, low income, poor health, and more chronic conditions such as hypertension and diabetes. They face a number of challenges in the labor market, including assumptions about their productivity, and lack of inclusive work environments that prevent them from leveraging their unique skills and talents.